selling tax deed via quit claim deed

9 Replies

Once I buy a tax deed property from the county what is the process to resell it to another investor? How do I go about getting quit claim deed and how do we close?

Go to your local title company and they will walk you through the process step by step.  Typically from what I've seen they will not issue title insurance before 2 years from the deed file date.  Your investor client may not need or want title insurance.  You probably want to use a special warranty deed, not quit claim, but you can discuss that with title or your attorney.  You may also want to address redemption rights in the contract you use with the buyer, so that is fully disclosed if timing is such that redemption rights are still in place.  Title co can still do title research for buyer, perhaps just not issue title insurance, or add as an exception the redemption rights.

I have heard multiple people say that hiring Tax Title Services is faster and cheaper than filing a quiet title, and also allows you to resell a tax deed property with a Grant Deed (here in California at least). 

Can anyone else testify to their success in taking that route? And if so, did the sale take place before or after the redemption period?

I've used Tax Title Services in Texas, but not sure I had to.  I was first told I could not get title insurance for resale, so used TTS.  It was not cheap and they require you to use a specific title company that was difficult at best to deal with and also more expensive than any I had ever used before.   

Now my regular title companies say they can issue title after 2 years and that I don't need the expensive service of TTS.

One question I have not asked yet, is if TTS can issue title insurance before the redemption period is completed or if they too require us to wait through the redemption period.  If they can speed up the process than well worth the money they charge.

I've already completed certification with TTS on two pieces of land and just got off of the phone with my title company. Although there is no redemption period in CA, there is a 1-year statutory time frame to rescind, according to Sections 3725 and 3731 of the California Revenue and Taxation Code. The likelihood is much slimmer to my understanding after TTS does their job and contacts all potential parties. Plus, if the risk was high, I wouldn't have a title company willing to insure title. And I've only had the deeds in hand for a few weeks since they arrived in the mail.  

The trickier step is often peppering those facts with enough salesmanship to persuade buyers or buyers agents who aren't as experienced with tax deed properties.

Bruce - I would be interested in learning what TTS tells you about their services and how it helps you resell before that 2 year mark title companies are quoting you, or the 6-month redemption period in Texas. If a property has a big enough margin, that juice might be worth the squeeze.