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Jamie bought a tax certificate for $3,200. What did Jamie actually purchase?

A) Ownership of the property
B) The right to foreclose on the property
C) The property's tax debt
D) A lien on the property

1 Answer

3 votes

Final answer:

Jamie purchased the property's tax debt by buying a tax certificate for $3,200, which could lead to Jamie's right to foreclose if the owner fails to repay the taxes plus interest.

Step-by-step explanation:

When Jamie bought a tax certificate for $3,200, what Jamie purchased was C) the property's tax debt. This means Jamie paid the overdue property taxes on someone else's property. In return, Jamie has the right to receive the tax amount plus interest back from the property owner. If the owner fails to pay back the tax debt within a certain period, Jamie may have the right to foreclose on the property, depending on local laws. However, Jamie does not obtain direct ownership of the property or a lien by purchasing the tax certificate.

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