Tax-forfeited land in Minnesota is real estate the state has taken from owners who stopped paying property taxes, then handed to counties to either keep for public use or sell back into private hands. If you’re an owner trying to stop the process, you have options until title becomes absolute. If you’re a buyer, the parcels are cheap for a reason: they’re sold as-is, eligibility is restricted, and the final cost is more than the winning bid.
How Land Becomes Tax-Forfeited
Property taxes go delinquent on the first business day of January after the year they were due. From there, a redemption clock starts. For most properties, the owner has three years from the date the state buys the tax judgment at the annual tax sale to pay everything owed and keep the land.1Minnesota Office of the Revisor of Statutes. Minnesota Code 281.17 – Period of Redemption “Everything owed” means back taxes, penalties, interest, and costs.
At least 120 days before that period runs out, the county auditor must mail the owner a notice that time is almost up.2Minnesota Office of the Revisor of Statutes. Minnesota Code 281.23 – Notice Miss the deadline and title passes to the state, becomes absolute, and generally wipes out prior liens and ownership interests.
Not every parcel gets three years. Non-homestead property in a targeted community has a one-year redemption period.1Minnesota Office of the Revisor of Statutes. Minnesota Code 281.17 – Period of Redemption For certain abandoned buildings or vacant residential lots in targeted neighborhoods, a county can petition the court to shrink the period to five weeks after the tax sale.3Minnesota Legislature. Minnesota Code 281.174 – Five-Week Redemption Period for Certain Vacant Properties
A federal bankruptcy filing triggers an automatic stay that pauses the forfeiture process. If the expiration notice has already gone out, federal law adds 60 days to the redemption window.4Minnesota County Attorneys Association. Protecting Property Taxes in Bankruptcy
How Owners Can Stop Forfeiture
The simplest way to keep the property is to redeem it: pay the full delinquent amount plus penalties, interest, and costs before the redemption period ends.
Owners who can’t pay in full can enter a confession of judgment, which is a formal installment plan with the county. It’s available any time before forfeiture becomes final. The owner puts one-tenth of the total delinquent amount down and pays the balance in nine equal annual installments, with interest set by statute.5Minnesota Office of the Revisor of Statutes. Minnesota Code 279.37 – Confession of Judgment for Delinquent Taxes Five-year plans exist for some property classifications.
Two conditions matter. Current-year taxes have to stay paid each year the plan is active, or the agreement defaults and the property goes back on the forfeiture track. And each property is limited to two confessions of judgment total for any amount of delinquent taxes, so it isn’t an endlessly renewable tool. Vacant land generally doesn’t qualify unless it’s classified as homestead, agricultural, rural vacant, or managed forest. Counties commonly charge a $100 processing fee.
Who Can Buy Tax-Forfeited Land
Minnesota keeps a short list of people barred from buying. Anyone who owes delinquent property taxes on other land in the same county can be blocked, and the restriction extends to businesses in which the prospective buyer holds a significant ownership interest.6Minnesota Office of the Revisor of Statutes. Minnesota Code 282.016 – Prohibited Purchasers County officers, deputies, and clerks tied to the sale process also face purchasing restrictions, with a narrow exception allowing officials to buy back land they personally owned at the time of forfeiture.
To bid, you pick up a purchase application and an affidavit from the county auditor. The affidavit requires you to swear you weren’t the owner when the property forfeited and aren’t acting as an agent for the former owner. The auditor uses that paperwork to verify tax compliance before clearing you to bid. Once a bid is accepted, the transaction is binding, so have your funds lined up before you apply.
How the Sales Work
Counties can sell tax-forfeited parcels several ways. The standard method is a public auction where the county auditor offers each parcel to the highest bidder, starting at the appraised value. In standard county sales, the parcel cannot go for less than the appraised value.7Minnesota Office of the Revisor of Statutes. Minnesota Code 282.01 – Tax-Forfeited Lands, Classification, Sale Anything that doesn’t sell becomes available over the counter at the appraised price.
Counties can also run sealed-bid sales, use a licensed real estate broker, or hold online auctions. Online auctions require a physical notice and website posting at least ten days before bidding opens.7Minnesota Office of the Revisor of Statutes. Minnesota Code 282.01 – Tax-Forfeited Lands, Classification, Sale Cities have an alternate procedure that lets them restrict sales to adjoining landowners and sell for less than appraised value. Check the county auditor’s website for upcoming sale schedules and formats before planning around any specific method.
If the county board has authorized installment sales, buyers can put as little as 10% down and pay the balance over up to ten annual installments, with interest on the unpaid balance set by statute.7Minnesota Office of the Revisor of Statutes. Minnesota Code 282.01 – Tax-Forfeited Lands, Classification, Sale Whether installment terms are on the table is a county-by-county decision.
Only nonconservation land is sold. Parcels classified as conservation stay in public ownership and are managed for timber, wildlife, or environmental purposes, typically by the Department of Natural Resources or the county.7Minnesota Office of the Revisor of Statutes. Minnesota Code 282.01 – Tax-Forfeited Lands, Classification, Sale
What the Purchase Actually Costs
The winning bid is only part of what you pay at closing. Additional statutory fees apply:
- State assurance fee of 3% of the sale price, which funds the state’s title guarantee on tax-forfeited land.8Anoka County, MN – Official Website. Facts to Know Before Purchase
- State deed tax of $0.33 per $100 of sale price for sales over $500, with a $1.65 minimum on lower-value transfers.9Minnesota Office of the Revisor of Statutes. Minnesota Code 287.21 – Deed Tax Rate
- Recording fee, which varies by county. Anoka County, for example, charges $46.8Anoka County, MN – Official Website. Facts to Know Before Purchase
- Well disclosure certificate filing fee of $54 if any wells exist on the property.10Minnesota Office of the Revisor of Statutes. Minnesota Code 103I.235 – Well Disclosure
After the sale, the Minnesota Commissioner of Revenue reviews the transaction, confirms statutory requirements were met, and issues the state deed. The official deed typically arrives by mail within about 60 to 90 days. Once you record it with the county recorder, the property is back in private ownership and back on the tax rolls.
What You Get, and Don’t Get, When You Buy
Every tax-forfeited parcel is sold as-is. The county makes no warranty that the land is buildable, that it complies with zoning or building codes, or that any structures on it are habitable. Sales are final. No refunds, no exchanges.11Anoka County, MN – Official Website. Tax-Forfeited Land Sales Inspect the parcel, verify zoning, and check for environmental issues before you bid. A cheap parcel can cost real money if it needs remediation or won’t support the use you had in mind.
Title, on the other hand, is unusually strong. Minnesota law presumes the state’s title valid even if there were defects in the underlying tax or forfeiture proceedings, including situations where the land was tax-exempt or the taxes had actually been paid before forfeiture. Anyone challenging the title has the burden of proving it invalid, and the statute is construed liberally in favor of the state and its successors.12Minnesota Office of the Revisor of Statutes. Minnesota Code 284.28 – Tax-Forfeited Lands, Limitations on Adverse Claims Claims not brought within the statutory limitation period are conclusively presumed abandoned. A separate quiet title action is generally not required, though some title insurance companies may still ask for one.
Repurchase Rights for Former Owners
Losing the property to forfeiture doesn’t always end things. Under Minn. Stat. § 282.241, a former owner (or their heirs, or anyone authorized to pay taxes under a mortgage or other agreement) can apply to repurchase the land if the state hasn’t already sold it and no mineral permits or condemnation proceedings are pending.13Minnesota Office of the Revisor of Statutes. Minnesota Code 282.241 – Repurchase After Forfeiture For most properties, the application must be filed within six months of the forfeiture date. Homesteaded property has no fixed deadline, but the application still has to be filed before the state sells the parcel.
Approval isn’t automatic. The county board has to pass a resolution finding that the repurchase would correct an undue hardship or injustice, or would serve the public interest. The price is all delinquent taxes, assessments, penalties, interest, and costs that accrued or would have accrued had the property never forfeited, plus any maintenance costs the county paid while holding it.13Minnesota Office of the Revisor of Statutes. Minnesota Code 282.241 – Repurchase After Forfeiture For homesteaded property that has been forfeited more than ten years, the county board can use an alternative formula tied to the average of the property’s market value at forfeiture and its current market value. The board can also require full payment at once instead of allowing installments.
Surplus Proceeds When the Sale Exceeds the Debt
If a tax-forfeited parcel sells for more than what was owed, the former owner now has a claim to the difference. That’s a recent change. In Tyler v. Hennepin County (2023), the U.S. Supreme Court held that keeping surplus equity from a tax foreclosure sale violates the Fifth Amendment’s Takings Clause. The case involved a Hennepin County condo sold for $40,000 to satisfy a $15,000 tax debt, with the county keeping the entire amount.14Supreme Court of the United States. Tyler v. Hennepin County, Minnesota (22-166)
Minnesota responded with Minn. Stat. § 282.005. Within 60 days of a sale, the county auditor must notify former owners and other interested parties if a surplus exists. The notice includes the surplus amount and a claim form prescribed by the Commissioner of Revenue. Interested parties then have six months from the mailing date to file a claim. If only one person files, that person gets the surplus after the filing window closes. If multiple people file competing claims, the county divides the surplus proportionally based on each claimant’s interest, and disputes go to district court. If nobody files within six months, the surplus reverts to the county’s forfeited tax sale fund.15Minnesota Office of the Revisor of Statutes. Minnesota Code 282.005 – Tax-Forfeited Land, Initial Sale