I have a seller who wants to donate a property to me.  The only cost I have to incur upfront is $937.00,  3 years in back taxes plus my attorney fees. The property was tax deed sale in 2014 and has been vacant for several years. The seller has moved to another state and just wants to sign it over and not deal with it. When I had my attorney run a title check my closing attorney stated the title was clouded and the prior owner has superior interest to the seller that’s looking to sign  it over to me. Attorney also stated that the prior seller with superior interest also owns a convenience  store, which was purchased cash $900k in 2007.  Long story short, I will need to do a quiet title action. What should I do?  Should I reach out to prior seller with superior interest or go through the quiet title action? Any insight would be helpful. 

@DeJarian Dickson Graham   I think the convenience store is a red herring.  I don't see how it has any bearing on the property you are talking about.

Regarding the lien from the prior owner, you need more information.  What is the amount?  The reason?  Is it valid in perpetuity until satisfied?  These are all questions for your attorney, unless you know how to research it yourself.

If it's not a big lien, you're probably better off coming to a settlement on it than doing a quiet title, which will rack up attorney fees.

Originally posted by @Charlie MacPherson :

@DeJarian Dickson Graham  I think the convenience store is a red herring.  I don't see how it has any bearing on the property you are talking about.

Regarding the lien from the prior owner, you need more information.  What is the amount?  The reason?  Is it valid in perpetuity until satisfied?  These are all questions for your attorney, unless you know how to research it yourself.

If it's not a big lien, you're probably better off coming to a settlement on it than doing a quiet title, which will rack up attorney fees.

 Thanks for the info..I mentioned that because the attorney pointed it out for whatever reason.. As far as the liens,  only for back taxes for last few years, which I verified myself with the county. I’ll ask my attorney those questions you suggested. This is new for me. I’m also not clear on what  coming to a settlement meant.. 

@Charlie MacPherson
Thanks for the info..I mentioned that because the attorney pointed it out forwhatever reason.. As far as the liens, only for back taxes for last few years, which I verified myself with the county. I’ll ask my attorney those questions you suggested. This is new for me. I’m also not clear on what coming to a settlement meant.. I just spoke to the closing attorney he said he would not buy it because the title is not clear...

Originally posted by @DeJarian Dickson Graham :

@Charlie MacPherson
Thanks for the info..I mentioned that because the attorney pointed it out forwhatever reason.. As far as the liens, only for back taxes for last few years, which I verified myself with the county. I’ll ask my attorney those questions you suggested. This is new for me. I’m also not clear on what coming to a settlement meant.. I just spoke to the closing attorney he said he would not buy it because the title is not clear...

Get a different attorney. He needs to explain the WHY he wouldn't buy it. He obviously isn't good at communication, or you are misunderstanding the why or he wants to shoo you away so he can snap it up.

In any event I would find out what clouds the title and why.

If he says that the tax sale was invalid, you need to know why. If he says the owners been sued and lost the case and now there is a judgment on the property you need to know how much, if he says there is a mortgage on the property and it's about to go into foreclosure you need to know the details.

If you paid for a title report you should get a copy so you can put it in front of somebody experienced in real estate to see just how big the problem really is.

@Mike Baxter Yes he said he would not buy it because the title is not clear. He also specifically stated that title is not insurable and  that the owner with superior interest could come back later to try to redeem. So I’ll get a copy of title report and have it reviewed by an attorney. 

@DeJarian Dickson Graham What state is this in as state laws vary. Also “superior interest” can be a very vague term. Here, buyers of tax sale properties need to go thru a Quiet Title action to get “insurable title”, it simply wait 4 years. 

If this is just a straight up tax sale property, find an attorney who deals with these....it is no problem for them. Also, some attorneys have been known to steer people away from deals in the name of “safety”, only to turn their buddies on to the opportunity and some attorneys are just too conservative or not intimately familiar with tax sale properties. 

What state is the property in?

@Arnie Abramson in Georgia 

@DeJarian Dickson Graham what’s the property worth? Because it may not even be worth the price and time to get it? Something deals like this are not worth it. If you are doing all this for a house that need 30K of work and is then 40K it’s not worth it. I have no idea what it’s worth maybe it’s worth millions and it’s the best deal ever I would suggest making sure you know what you would pay for it because back taxes and legal fees are very much paying for it.