Denied title by title company

[John Sheridan]

I am trying to close on a house and the title company will not issue a title. House was sold on a tax auction online now I’m purchasing the house for cash, my lawyer informed me the title company will not issue a title insurance policy for the property any suggestions on how how I should proceed

[Wayne Brooks]

Well, this is common for tax sale foreclosure properties.  Your stat laws will govern...typically there two reasons why you can’t get title insurance for a tax sale property;

1) there is a statutory redemption period in which the previous owner can redeem

2) there is a statutory period of time, usually 1-5 years (4 years here in FL) where the tax sale can be challenged as improper....lack of proper notices, not notified timely, etc.

Typically it takes a Quiet Title action to eliminate #2.

Any real estate attorney should be able to tell you what your state statute is.

Some people will take the risk, purchase without title insurance, that’s up to you.