Economic Valuation of Tax Deed and Warranty Deed Theory and Empirical Verification
(Pages 60-74)Elli Kraizberg1,*
1Bar Ilan University, Ramat Gan, 52900, Israel
DOI: https://doi.org/10.55365/1923.x2026.24.06
Abstract:
A property sold and recorded as a Warranty Deed (WD) is valued differently from an otherwise identical property sold and recorded as a Tax Deed (TD). This observation supports the common view that winning bids in TD auctions are lower than prices observed in market transactions recorded as WD. This paper develops a rational theoretical framework to explain and quantify the valuation differences between WD and TD properties. Using data on TD sales in Florida, governed by Florida §197, from two periods (2011–2012 and 2021–2025), the analysis confirms that winning bids for TD-recorded properties are generally lower than or equal to those for WD-recorded sales. However, when TD prices are properly adjusted for the theoretical differences identified in this paper, the adjusted TD prices indicate overpricing.
Keywords:
Tax deed, warrantee deed, valuation, optimal timing for development, real estate auctions.
JEL Classification:
R30, R32.
How to Cite:
Elli Kraizberg. Economic Valuation of Tax Deed and Warranty Deed Theory and Empirical Verification. [ref]: vol.24.2026. available at: https://refpress.org/ref-vol24-a6
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.