The Monroe County tax auction is a public sale, typically held in September, where the county sells properties it has taken through in rem tax foreclosure to the highest bidder by quitclaim deed. Properties generally reach the auction block about two years after the taxes first went unpaid.1Monroe County, NY. Treasury / Property Tax Winning a bid is the easy part. What you actually buy, and what you may inherit along with it, is where first-time bidders get hurt.
When the Auction Happens and How to Find Properties
Monroe County schedules its foreclosure auction in September of the year following the start of the in rem proceeding.1Monroe County, NY. Treasury / Property Tax The property list is published in advance, both on the county Treasury’s website and in a newspaper notice that must run at least once a week for three consecutive weeks before any court-directed sale.2New York State Senate. New York Real Property Tax Law Section 1136
Each listing identifies the parcel by Section-Block-Lot number, names the last known owner from the tax roll, and itemizes the delinquent taxes, interest, and penalties.3Town of Henrietta. Monroe County Public Notice of Foreclosure The minimum bid on each property generally reflects the total owed to the county, which is the floor the county needs to recoup its lost revenue.
Treat the weeks between publication of the list and auction day as your only investigation window. The county offers no inspection period, no walk-throughs, and no condition reports.
Registering and Paying
You cannot bid without registering first. Registration requires a valid, non-expired photo ID and a completed bidder registration form. Deposit amounts and acceptable payment methods are set by the county in the auction terms published before each sale, so confirm the current requirements with the Monroe County Treasury before auction day rather than assuming last year’s rules still apply.
In general, tax foreclosure auctions in New York accept certified checks, attorney checks, and money orders. Personal checks and large cash payments are usually not accepted. Showing up without the right form of payment can disqualify you from bidding entirely, no matter how prepared you are otherwise.
The auctioneer opens each parcel at its minimum bid and controls the increments, which vary with property value. When bidding stops, the parcel is sold. Winners typically sign a purchase agreement on the spot, pay the required deposit before leaving, and then have a set window to deliver the balance. Missing the balance deadline forfeits your deposit and can bar you from future county auctions.
Once the balance clears, the county issues a quitclaim deed under New York Real Property Tax Law Section 1166, which authorizes a tax district to sell and convey foreclosed property, including any associated gas, oil, or mineral rights, to the highest bidder at public auction.4New York State Senate. New York Real Property Tax Law Section 1166 – Real Property Acquired By Tax District Right Of Sale You then record the deed with the Monroe County Clerk. Recording a one-page deed costs $50, with $5 per additional page, plus a $5 fee for the TP-584 transfer tax return, an RP-5217 equalization fee of $125 or $250 depending on the property, and a $10 notice fee for residential deeds.5Monroe County, NY. County Clerk – Land Records New York State transfer tax runs $2 per $500 of sale price, or $4 per $1,000.6New York State Department of Taxation and Finance. Real Estate Transfer Tax
What a Quitclaim Deed Actually Gives You
This is where a tax auction differs sharply from an ordinary home purchase. A quitclaim deed transfers only whatever interest the county acquired through its foreclosure. The county makes no promise that title is clear, no representation about the condition of any building, and no guarantee against competing claims. Several categories of problem commonly outlive the sale.
Liens That Survive the Foreclosure
The in rem judgment wipes out the delinquent tax liens that triggered the foreclosure and terminates the former owner’s interest. Mortgages and junior liens held by parties who were properly notified and failed to redeem are also extinguished. Easements, restrictive covenants, zoning restrictions, and building code obligations are not. Unpaid water and sewer bills are a common surprise, because some municipalities treat those charges as running with the property rather than following the former owner.
Federal Tax Liens
A federal tax lien recorded by the IRS can survive a local tax sale unless the county gave the IRS written notice by registered or certified mail at least 25 days before the sale. If that notice did not go out on time, the federal lien stays attached and becomes the buyer’s problem.7Office of the Law Revision Counsel. 26 USC 7425 – Discharge of Liens Search the federal tax lien index for any parcel you are seriously considering.
Title Insurance and Cash-Only Reality
Most title insurance companies will not issue a policy on a quitclaim deed from a tax sale. Their concern is that a defect in the foreclosure process, often a notice problem, could surface later and lead a court to unwind the sale. Without title insurance, traditional mortgage lenders will not finance the purchase. Bidders at Monroe County auctions should plan to bring cash and should budget for a quiet title action afterward if they want marketable, insurable, financeable title. A quiet title suit asks a court to confirm your ownership against any competing claim, and it is the standard route to cleaning up a tax-sale deed.
Due Diligence Before You Bid
The county sells as-is, with no contingencies. Serious bidders work through roughly this list for every parcel on their shortlist:
- Drive by the property. Some parcels are vacant land, some have derelict structures, and some are occupied. The county tells you none of this.
- Order a professional title search, typically $75 to $200, covering recorded liens, easements, judgments, and federal tax liens.
- Check for environmental risk. Former commercial or industrial sites can carry contamination, and a federal Superfund lien under CERCLA can survive a tax foreclosure. Cleanup liability can run many times the value of the land. The county’s own foreclosure act allows removal of known or suspected hazardous waste sites from the auction list, which tells you how seriously the county itself takes this risk.1Monroe County, NY. Treasury / Property Tax
- Call the municipality to check for unpaid water, sewer, and code enforcement charges.
- Confirm zoning and look for open building code violations that could force expensive repairs.
A $3,000 winning bid on a parcel carrying a $40,000 cleanup obligation or an unresolved federal lien is not a bargain. Skipping this step is the most expensive mistake auction buyers make.
If the Property Is Occupied
Some foreclosed properties still have people living in them on auction day. A recorded deed makes you the legal owner, but it does not give you the right to change the locks. New York law requires a formal court process to remove occupants. For a former owner who refuses to leave, that typically means an ejectment action. For tenants with a valid pre-foreclosure lease, you may need to honor the remaining term or give proper notice to vacate, depending on the facts. Both routes take time and cost legal fees, so build those costs into any bid on a property that looks occupied. Checking for active utility service before the auction is a quick way to spot the risk.
City of Rochester Auctions Are Separate
If the parcel you want sits inside Rochester city limits, Monroe County may not be the seller. The City of Rochester runs its own in rem tax foreclosure auctions, independent of the county’s. Rochester requires a $5,000 deposit per winning bid, paid immediately in cash, certified check, or attorney check, along with valid photo ID and a completed registration form at the door.8City of Rochester. Tax Foreclosure Auctions and Environmental Auctions The same legal realities about quitclaim deeds, surviving liens, and uninsurable title apply. Confirm which entity is actually conducting the sale on your target property before you prepare your registration and payment.