ANSWERS TO THE MOST FREQUENTLY
ASKED QUESTIONS ABOUT
TM
Finance THE TAX LIEN SALE
What Kinds Of Debt Are Sold In A Lien Sale?
Delinquent charges from outstanding property taxes, sewer or water charges, surcharges, and other
property-related fees and charges, including, but not limited to sidewalk repairs or vacant lot clean-
ing charges (if the repairs or cleaning were performed by the City), and the accrued interest on
taxes and charges listed above.
Can Anyone Buy Liens?
No. The City of New York does not offer liens for sale to individual investors or to the general
public.
When Can The City Sell A Lien On My Property?
It depends on the kind of property you own and the tax exemptions you receive. The City may sell
a lien on your property if you own any of the following:
G 1-, 2-, or 3-family home*
G Residential cooperative or condominium apartment
G Small store or office with one or two apartments above
G Vacant land zoned for residential use
AND you owe property taxes for three years, OR, you owe water/sewer rent charges for one year
equal to or exceeding $1,000.
If you own a multi-family home (four units or more), rental building, or commercial and utility
property and you owe property taxes or water/sewer charges for one year, the City may sell a
G
lien on your property.
*If you own a 1-family home and only owe water/sewer charges but not property taxes, the city may
not sell a lien on your property. Although the water/sewer debt may not be sold, DEP will terminate
your water/sewer service if charges remain delinquent.
Can A Property Owner Be Exempt From The Lien Sale?
Yes, if you receive one of the following exemptions:
G Senior Citizen Homeowners Exemption
G Disabled Homeowners Exemption
G State Real Property Circuit-Breaker Income Tax Credit (for owners with income under $18,000
and property with a market value of less than $85,000)
Can My Lien Be Sold Even If I Am In The Process Of Disputing The Tax Or Charge?
Yes. All delinquent property taxes or water/sewer charges that remain unpaid for the specified
amount of time are eligible for sale, including those under dispute. If you are in the process of con-
testing the assessed value of your property, water/sewer or other charges, you must pay the charges
in full to avoid having your lien sold. If your dispute is successful, you may be entitled to a refund.
Visit Finance at nyc.gov/finance TLS FAQ Rev. 05.14.10
What Happens After A Lien Is Sold?
Within 90 days of the lien sale date, the City notifies all property owners by mail of (a) the terms and
conditions under which the lien was sold, (b) the name of the new lienholder, and (c) the name of
the lienholderʼs authorized representative whom the property owner should contact. The represen-
tative will also contact the property owner to discuss payment arrangements.
Property owners should not deal with, or make payments to, anyone other than the new lienholder
or their authorized representative named in the letter sent by the City.
Once a lien is sold, the property owner then owes the taxes, charges, and accrued interest to the
new lienholder, not to the City. This amount automatically increases once the lien is sold, because
there is a 5% surcharge on the entire lien amount, plus 18% interest, compounded daily and payable
semi-annually. The property owner may also be responsible for paying other administrative costs
associated with the lien sale; for example, legal and advertising fees.
Can The New Lienholder Sell My Property?
Not at first. However, foreclosure can begin six months after the lien sale date if you have not (a)
paid the semi-annual interest within 30 days of the payment due date, (b) arranged some other pay-
ment schedule, or (c) remained current on property taxes or related charges that are due the City
after the lien sale. Foreclosure can also begin within one year after the lien sale date if you have not
paid the lien in full or entered into an installment agreement with the new lienholder.
Can my property be included in a lien sale if Iʼm currently serving in the military?
Active duty military personnel may request an exemption from the lien sale by completing an affi-
davit that provides the information about their military service, their property, tax warrants, Envi-
ronmental Control Board violations, etc. Download Memorandum and Application (56k)