Taking possession of a property Jefferson County AL

18 Replies

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

Originally posted by @Mario Am :

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

In both cases you would just file an ejectment.  Do not spend money changing locks until you are granted possession.

Originally posted by @Mario Am :

@Anastasia Jordan

so even if it is abandoned I need to file an ejectment?

How long an ejectment take and cost?

And can I do it myself or need an attorny?

Thank you

Yes, even if it is abandoned. You need either a QCD from the owner on record or a court order to legally take possession. If the property is in your personal name you can file the ejectment yourself for less than $400. If you put it in an LLC/corp name you will have to hire an attorney. I do not know what attorneys charge cause I've never had to pay.

 Fastest I've seen an ejectment go through was 37 days I think. 

Originally posted by @Anastasia Jordan :
Originally posted by @Mario Am:

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

In both cases you would just file an ejectment.  Do not spend money changing locks until you are granted possession.

Anastasia.. I am looking to purchase tax deeds from a private party in Jefferson county redemption periods have passed would you mind giving me some advice on what I need to look for and how will I get clear title of this property. 

Thank you. Ahsan 

Originally posted by @Ahsan Harriel :
Originally posted by @Anastasia Jordan:
Originally posted by @Mario Am:

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

In both cases you would just file an ejectment.  Do not spend money changing locks until you are granted possession.

Anastasia.. I am looking to purchase tax deeds from a private party in Jefferson county redemption periods have passed would you mind giving me some advice on what I need to look for and how will I get clear title of this property. 

Thank you. Ahsan 

 1st thing is to complete your research on the property YOURSELF. Have you or a 3rd party you have hired went to view the property? Is it occupied or vacant? Have you looked up the total amount of taxes that is due?  How much of a premium is the seller putting on top? Is the previous owner still in possession?  Have you attempted to contact the previous owner before sending this private seller your money? Have you pulled a title report?

Originally posted by @Anastasia Jordan :
Originally posted by @Ahsan Harriel:
Originally posted by @Anastasia Jordan:
Originally posted by @Mario Am:

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

In both cases you would just file an ejectment.  Do not spend money changing locks until you are granted possession.

Anastasia.. I am looking to purchase tax deeds from a private party in Jefferson county redemption periods have passed would you mind giving me some advice on what I need to look for and how will I get clear title of this property. 

Thank you. Ahsan 

 1st thing is to complete your research on the property YOURSELF. Have you or a 3rd party you have hired went to view the property? Is it occupied or vacant? Have you looked up the total amount of taxes that is due?  How much of a premium is the seller putting on top? Is the previous owner still in possession?  Have you attempted to contact the previous owner before sending this private seller your money? Have you pulled a title report?

It was a scam. The seller made it seem to me that they already had the deed for it. Mind you it is still on the delinquent tax list. They told me the 3 years had passed the sale happened in 2018. Too many red flags they were charging  4K over what was owed on the jeffererson county tax assessor website. It is occupied. No I didn’t reach out to the owner should I? 

Originally posted by @Ahsan Harriel :
Originally posted by @Anastasia Jordan:
Originally posted by @Ahsan Harriel:
Originally posted by @Anastasia Jordan:
Originally posted by @Mario Am:

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

In both cases you would just file an ejectment.  Do not spend money changing locks until you are granted possession.

Anastasia.. I am looking to purchase tax deeds from a private party in Jefferson county redemption periods have passed would you mind giving me some advice on what I need to look for and how will I get clear title of this property. 

Thank you. Ahsan 

 1st thing is to complete your research on the property YOURSELF. Have you or a 3rd party you have hired went to view the property? Is it occupied or vacant? Have you looked up the total amount of taxes that is due?  How much of a premium is the seller putting on top? Is the previous owner still in possession?  Have you attempted to contact the previous owner before sending this private seller your money? Have you pulled a title report?

It was a scam. The seller made it seem to me that they already had the deed for it. Mind you it is still on the delinquent tax list. They told me the 3 years had passed the sale happened in 2018. Too many red flags they were charging  4K over what was owed on the jeffererson county tax assessor website. It is occupied. No I didn’t reach out to the owner should I? 

Absolutely. The owner (depending on how open they are with discussing their financial situation with a stranger) may let you know if they intend on paying their taxes or letting it go. No way in knowing if you don't ask.  Many sellers will wholesale their quotes they get from the state before they get the deed/certificates. Not a scam but you do need to evaluate your risk.  A $4k+ assignment fee isn't unheard of on tax properties that are low risk (dead, no heirs, poor, defunct LLCs, or incarcerated owners). You must first evaluate the risk..........

Originally posted by @Anastasia Jordan :
Originally posted by @Ahsan Harriel:
Originally posted by @Anastasia Jordan:
Originally posted by @Ahsan Harriel:
Originally posted by @Anastasia Jordan:
Originally posted by @Mario Am:

Hey ya’ll I hope everyone is having a good day.

I have 2 questions maybe I can get some answers

In case I bought a tax deed (actual deed - not certificate).

answers:

1. What needs to be done in order to take lawful possession of the property in case it is vacant? (Besides changing the locks)

2. What needs to be done in order to take lawful possession in case the property is occupied?

Kind Regards,

Mario

In both cases you would just file an ejectment.  Do not spend money changing locks until you are granted possession.

Anastasia.. I am looking to purchase tax deeds from a private party in Jefferson county redemption periods have passed would you mind giving me some advice on what I need to look for and how will I get clear title of this property. 

Thank you. Ahsan 

 1st thing is to complete your research on the property YOURSELF. Have you or a 3rd party you have hired went to view the property? Is it occupied or vacant? Have you looked up the total amount of taxes that is due?  How much of a premium is the seller putting on top? Is the previous owner still in possession?  Have you attempted to contact the previous owner before sending this private seller your money? Have you pulled a title report?

It was a scam. The seller made it seem to me that they already had the deed for it. Mind you it is still on the delinquent tax list. They told me the 3 years had passed the sale happened in 2018. Too many red flags they were charging  4K over what was owed on the jeffererson county tax assessor website. It is occupied. No I didn’t reach out to the owner should I? 

Absolutely. The owner (depending on how open they are with discussing their financial situation with a stranger) may let you know if they intend on paying their taxes or letting it go. No way in knowing if you don't ask.  Many sellers will wholesale their quotes they get from the state before they get the deed/certificates. Not a scam but you do need to evaluate your risk.  A $4k+ assignment fee isn't unheard of on tax properties that are low risk (dead, no heirs, poor, defunct LLCs, or incarcerated owners). You must first evaluate the risk..........

Seller portrayed the image that she was the deed holder personally nothing about assignment was mentioned even sent me a contract from her company. She told me personally that the 3 years had passed. When the sale was a year ago. 

Originally posted by @Ashley G. :

@Anastasia Jordan what is the highest assignment fee you have ever heard of and what do you think is the most reasonable ask on a deed?

Highest I've known was $30k on top of a tax certificate for a commercial property not in an urban renewal zone. The buyer could not have done any due diligence and didn't bother to consult with an attorney until it got redeemed the next week. Insanity.......

Reasonable depends on the risk.  I wouldn't put a high premium on a high risk investment and people need to learn how to recognize high risk. 

Originally posted by @Ashley G. :

@Anastasia JordanWow, $30k is a lot considering it was not in an urban renewal zone and they redeemed the next week I know the investor did not recoup any of that $30k. 

Not many people know about the urban renewal zone condition for commercial properties (hell some lawyers don't).  I believe the buyer filed suit against the seller......not sure of that outcome.

Originally posted by @Anastasia Jordan :
Originally posted by @Mario Am:

@Anastasia Jordan

so even if it is abandoned I need to file an ejectment?

How long an ejectment take and cost?

And can I do it myself or need an attorny?

Thank you

Yes, even if it is abandoned. You need either a QCD from the owner on record or a court order to legally take possession. If the property is in your personal name you can file the ejectment yourself for less than $400. If you put it in an LLC/corp name you will have to hire an attorney. I do not know what attorneys charge cause I've never had to pay.

 Fastest I've seen an ejectment go through was 37 days I think. 

 What is a QCD?

@Bryce Davis , a quitclaim deed transfers any and all real estate rights in certain described real estate, but does not make any promises or warranties that the grantor actually owns anything at all. 

It is frequently used to clear up possible title defects, or when someone makes a gift of land. Nobody wants to sign a regular warranty deed under those circumstances, later find out the title is defective, and then get sued.

At least in Alabama, there are two other types of deed in common usage.

A general warranty deed makes promises that the title is perfect and clean.  If it is not, then the grantee can sue the grantor.  Even if there is title insurance paid by the grantor, to protect the grantee, the grantor is not safe.  That is because if there is a title defect, even if it arose before the grantor's period of ownership, the title insurance company will pay off, and then step into the shoes of the grantee and sue the grantor under its warranties. Usually the grantor goes a little crazy at that point and says to the title company, "It was your responsibility to FIND the title defects before we closed, and also, I was the one who PAID for the title insurance!!!  It's not fair that you are suing me for your own mistakes!!!!!" The title company says, "Too bad, so sad..." and continues with their law suit and will ultimately win.

They tell the grantor, "Don't worry, now you can sue your own grantor under the title insurance you got when you bought the property."  That is good advice, unless you inherited the property, or it was a gift, or the title company is out of business, or you bought it cheaply and quickly with no title insurance.  Never be lulled into a false sense of security by a title company saying you should not worry about something because if they sue you, then you can sue somebody else. Plus, who wants to go through that grief and expense, anyway?

Another type of deed is a statutory warranty deed, also called a special warranty deed. This type makes promises that the grantor did not allow any title defects to arise during its period of ownership, but makes no promises about things that make have clouded the title from earlier.  Same result with the title insurance company lawsuit as the general warranty deed, but the grantor knows if he allowed an IRS lien or placed a mortgage or something similar during his period of ownership. So, it is not unfair for it to get sued for its warranties. A warranty is a promise, by the way.

Bear in mind, this is all Alabama law. Tax sale investors should usually give only quitclaim deeds unless they have a Quiet Title court order.  Nobody should ever give a general warranty deed, even with title insurance.   There is just too much risk over things you have no way of knowing about. 

Be careful about using quitclaim deeds found on the Internet or passed around among friends or colleagues. Something might say "Quitclaim Deed" at the top of the instrument, but contain words of warranty down in the body, using language nobody understands or pays attention to.  The usual warranties are of seisin (possession), quiet enjoyment (freedom from interference from others, such as the lack of a boundary line dispute brewing, or condemnation proceedings in process, etc.) , right to convey (the right to sell the whole of the interest recited in the deed, and not just a partial owner, for example), freedom from encumbrances (no liens, undisclosed leases, or other claims) and defense of title as to all claims (a promise to sue other people to clear up the title if the warranties are broken).

Usually (but not always) the language with the warranties will be near the end of the deed, and will say something like, "And we do, for ourselves and for our heirs, executors, and administrators, covenant with the Grantees, and the Grantee's heirs and assigns, that we are lawfully seized in fee simple of said premises..."