Legal Definitions - certificate of purchase

Definition: A certificate of purchase is a document that confirms a successful bid for a property at a judicial sale. If the land is not redeemed or if the sale is confirmed by court order, the bidder receives a property deed.

Example: John attended a foreclosure auction and placed the highest bid on a property. He was given a certificate of purchase as proof of his successful bid. If the previous owner does not redeem the property within a certain time frame, John will receive a property deed.

Explanation: This example illustrates how a certificate of purchase is used in a judicial sale. John's certificate of purchase confirms that he has successfully bid on the property and is now the potential owner. If the previous owner does not redeem the property, John will receive a property deed and become the official owner.