Disclaimer: This article is for informational purposes only. It does not constitute legal advice. Consult a qualified North Dakota attorney for legal guidance.
Detailed Answer
No Automatic Ownership by Payment of Taxes
In North Dakota, simply paying someone else’s property taxes does not give you an ownership interest in the real property. Ownership resides with the person named on the deed unless you take explicit legal steps to change the title.
Tax Liens and Tax Sale Process
When property taxes go unpaid, the county places a lien on the property. The lien secures the unpaid taxes plus interest and penalties. If the owner fails to pay within three years, the county may sell the tax lien at a public auction. The purchaser at the sale holds a tax lien certificate, not title to the property. For details on the sale process and the purchaser’s rights, see N.D.C.C. § 57-28-02 et seq. (https://www.legis.nd.gov/cencode/57-28-02).
Redemption Period
After the tax lien sale, the original owner has a redemption period—generally three years for residential or agricultural land—to repay the lienholder plus costs and interest. If the owner redeems, the lienholder must release the certificate. If the owner fails to redeem, the purchaser can obtain a tax deed, conveying full title, subject to certain notice requirements. See N.D.C.C. § 57-28-04 (https://www.legis.nd.gov/cencode/57-28-04).
Adverse Possession
Another way to gain title is adverse possession. North Dakota law allows a person in “open, notorious, continuous, exclusive, and hostile” possession for at least seven years to claim title to real property. Paying taxes may support an adverse possession claim but does not replace the other requirements. See N.D.C.C. § 28-01-21 (https://www.legis.nd.gov/cencode/28-01-21) and § 28-01-25 (https://www.legis.nd.gov/cencode/28-01-25).
Equitable Liens and Written Agreements
If you and the record owner enter a written agreement stating that your tax payments grant you a security interest or co-ownership, you can record an equitable lien against the property. Without a written and recorded agreement, you rely on general equity claims, which may be harder to enforce.
Key North Dakota Statutes
- Tax Lien Sale: N.D.C.C. § 57-28-02 (https://www.legis.nd.gov/cencode/57-28-02)
- Redemption Period: N.D.C.C. § 57-28-04 (https://www.legis.nd.gov/cencode/57-28-04)
- Adverse Possession: N.D.C.C. § 28-01-21 (https://www.legis.nd.gov/cencode/28-01-21) and § 28-01-25 (https://www.legis.nd.gov/cencode/28-01-25)
Helpful Hints
- Obtain a clear, written agreement outlining ownership or lien rights before you pay taxes.
- Keep detailed records and receipts for all tax payments you make.
- Record any lien or memorandum of agreement in the county recorder’s office.
- Consult an attorney to explore adverse possession or equitable lien strategies.
- If you purchase a tax lien certificate, track the owner’s redemption period closely.