Massachusetts' Land Court Forecloses the Lien — But Surplus Disputes Go to Superior Court

Massachusetts doesn't sell lien certificates. When taxes go unpaid, the city or town takes the land and holds a "tax title," which it can keep, assign to the highest bidder at a public auction, or sell in bulk (M.G.L. c. 60, §§ 2C, 52, 53, 54). The owner redeems by paying the tax title account plus interest: 8% a year on land taken or sold on or after November 1, 2024, and 16% on older tax titles (c. 60, § 62; St. 2025, c. 14, § 87). Redemption stays open until the Land Court forecloses, and the holder can only file the foreclosure petition 12 months after the taking or sale, up from six months under the old law (c. 60, § 65).

The fiscal 2025 budget rewrote what happens to the equity

Until recently, a municipality (or whoever ended up holding the tax title through foreclosure) could keep the full value of the property once foreclosed, even if it was worth far more than the tax debt — the same pattern the U.S. Supreme Court struck down nationally in Tyler v. Hennepin County in 2023. Massachusetts responded with Chapter 140 of the Acts of 2024, the state's fiscal year 2025 budget, which rewrote Chapter 60 so that the former owner keeps the right to the excess equity: the property's value above the tax title balance, later taxes and charges, and the costs of selling or appraising it (c. 60, §§ 1, 64).

How the excess gets paid

Within 30 days after the foreclosure judgment becomes final, the holder must decide whether to keep or sell the property and tell the former owners by certified mail. A holder that keeps it gets an independent appraisal. A holder that sells must list it with a licensed broker, and if it hasn't sold after twelve months it goes to an auctioneer, with no bid accepted below two-thirds of the appraised value. The holder then sends an itemized accounting and pays the known claimants. If it doesn't know who or where they are, it sends a notice and claims are due within 18 months; money still unclaimed after 19 months goes through the state's unclaimed property law (c. 60, § 64A).

Two courts, two different jobs

Here's the detail that trips people up: the Land Court has exclusive jurisdiction over the foreclosure itself — establishing that the tax title holder now owns the property — but disputes over excess equity don't go there. Any dispute over how much surplus is owed, or whether it was calculated correctly, goes to the Superior Court, within twelve months of the accounting (c. 60, § 64A). Winning the foreclosure case doesn't resolve the surplus question — it's a second, separate proceeding.

What this means if you're researching Massachusetts tax titles

A tax title is a slow investment: the owner can redeem until the Land Court forecloses, and on land taken since November 1, 2024 the petition can't even be filed for a year. What's changed is what happens after: instead of the foreclosing party keeping everything above the debt, the reform builds in an excess-equity return — which, if you're an investor, caps the realistic upside on a high-value property at the tax title balance plus statutory interest, with the rest headed back to the former owner.

Looking for a list? Our directory doesn't have an official Massachusetts county list yet, so for now ask the office that ran the sale. The counties that do publish one are in our directory of official surplus funds lists.

This article is general information, not financial or legal advice. Confirm current foreclosure and excess-equity claim procedures with the municipality's tax title office and, for disputed claims, the Superior Court in the relevant county. See our broader guide on surplus funds after a tax sale and the Massachusetts state page for tax title and redemption mechanics.