Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified real estate attorney for advice about your situation.
Detailed Answer
Under Tennessee law, paying property taxes on real estate does not automatically grant you any ownership interest in the property. The legal title to real estate remains with the person or entity listed on the deed and recorded with the county register of deeds.
When property taxes become delinquent, Tennessee Code Annotated § 67-5-601 creates a lien in favor of the county on the property for the amount owed. That lien remains with the land until the taxes, penalties, and interest are fully paid. If you—someone other than the owner—pay those taxes, you step into the shoes of the county with respect to that tax lien, but you do not obtain title to the property by merely making the payment.
If you pay taxes to prevent a tax sale, you may acquire an equitable right of subrogation. Courts may recognize your right to reimbursement from the property owner and may allow you to record an equitable lien against the property. However, subrogation does not transfer legal title. To assert any claim, you must typically record your lien or pursue a tax sale redemption under Tenn. Code Ann. § 67-5-903 (Tax Sale – Redemption).
In short, paying property taxes as a third party gives you potential reimbursement rights or an equitable lien, but it does not convey any ownership interest unless you follow formal statutory procedures to perfect that claim or obtain title through a tax sale.
Helpful Hints
- Review the county deed records to confirm who holds legal title.
- Keep detailed receipts for every tax payment you make.
- Request the owner’s written acknowledgment if you pay taxes on their behalf.
- Consider recording a lien or initiating a tax sale redemption under Tenn. Code Ann. § 67-5-903.
- Explore equitable subrogation rights with a real estate attorney.