Purchasing a tax lien property from investor

Purchasing a tax lien property from investor

Lawrence, KS · Member since 2017 · 27 posts · 6 votes

A local broker/investor has recently bought a tax lien for the house next door to us. We want to buy it from him but he has not quieted the title. We have a well known RE attorney here that says we should be able to quiet the title but it all makes us very nervous. If during the quiet title process the original owner comes up with the $5k for the taxes then she can get it back and we’re out $35k. (We agreed on a purchase price of $40k). The investor doesn’t want to bother with doing the quiet title himself, he said if he does that he will just sell at market value. Has anyone had the prior owner come back during the quiet title process and try to reclaim the property? Do I just put all my trust in this attorney (who is highly trusted and very well known all over the state). We really want the property because it’s right next door and would have so much potential if we fixed it up. We already have 2 houses on our lot so it would give us 3 houses right together.

0Reply
23 views

2 Replies

Jump to latestLatest
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    Hey Carey. I have some clients in MO that have bought tax liens and the QT process is usually 90 days. Since I'm not an attorney and can't give legal advice, I did a little more digging and found the passage below. My concern for you is that it appears that if the owner comes back, they only have to pay the bid amount + costs, not what you paid for the broker. Plus there could be other liens on the property that you'll have to deal with too. Good luck.

    --------

    In Kansas, the waiting period for a successful bidder to receive a Sheriff's deed after a tax lien sale is usually around 90 days. This waiting period allows for the following:

    • Payments to clear
    • Any disputed sales to be settled in court
    • Delinquent taxes from previous years to be removed from the property record

    The redemption period, which allows the original owner to redeem the property, is usually 90 days, but can be up to 365 days. During this time, the owner can keep the property if they pay the bid amount and other costs. The successful bidder has no legal right to the property until the redemption period ends. If the property is redeemed, the successful bidder will need to contact the plaintiff's attorney to get their funds back. Properties with a federal lien have a different redemption period. The federal redemption period is 120 days from the date of sale. A deed will not be issued for these properties until the federal redemption period ends, unless the federal agency chooses to redeem the property.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y

    Just buy it with a Quit Claim deed. No need to do a QT unless your wanting to sell it or mortgage it.

    Most of my properties are owned with a tax deed and I've never bother to spend the money to do a QT.

    I just fixed them up and started renting them.

    After 10 years in SC they are cleared up without a QT.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.