Clearwater, FL · Member since 2014 · 17 posts · 0 votes
I bought property in Florida Tax deed auctions, there is no redemption here, however there could always be a possibility of extenuating circumstances.
I would like to turn around and sell these I don't suppose I could use a TAX Deed maybe only the country can use that form, I can use a quit claim. Was thinking of offering financing to the buyers. However these property's are on the low value side and investing $2000 in a quiet title suit would wipe out any profit from a sale.
So am I opening myself up to lawsuits if a difficulty develops down the line for the buyer with a prior owner?
I would use a quit claim but still I don't want to cause any buyers to lose their money if something should happen.
Since you've purchased, you are going to have a certain unknown amount of exposure due to the nature of how you acquired title.
Attempting to monetize could be accomplished with a Grant or Warranty Deed and a Purchase Money Note secured by Trust Deed or Mortgage with a clause addressing the potential issue and who and how risk is to be born.
I put these clauses in properties I buy to reverse risk back on seller.
Since you've purchased, you are going to have a certain unknown amount of exposure due to the nature of how you acquired title.
Attempting to monetize could be accomplished with a Grant or Warranty Deed and a Purchase Money Note secured by Trust Deed or Mortgage with a clause addressing the potential issue and who and how risk is to be born.
I put these clauses in properties I buy to reverse risk back on seller.
There are many many many variables that go into clearing title on a tax deed. I purchase them for a completely different reason than most with no intention of selling for a very LONG time. However depending on the liens on the properties if any there are a few ways in which title can be cleaned up without filing a quiet title action. It really is to much for me to really want to type and talk through via a forum as so many different variables affect the route in which you take. If you would like feel free to message me your phone number and I will give you a call and talk through them with you to see if there is a way to clear title without having to go through the court system.
I'm not up on FL tax deed transfers, that said, use a Special Warranty Deed, warrant title during your ownership, not prior. Never use a quit claim deed in a sale transaction as you break the chain of warranty for title and a title company may not insure it (they make excceptions for lending institutions, but not for individuals).
FL may have a Grant Deed that limits warranty only during your ownership period.
Obtain title insurance for yourself to cover claims to title. Get the buyer title coverage as well.
As to financing it, just don't do a consumer loan, make it clear in the note and deed of trust that it is for a business and investment purpose. :)
Not a good idea in FL @Bill Gulley Florida allows for very clean "quick" ways to clear title in Tax Deed sales and both statutes and case law wouldn't be on your side unless you either cleared title or used a GC Deed with FULL DISCLOSURE in regards to resale of a Tax Deed.
Not a good idea in FL @Bill Gulley Florida allows for very clean "quick" ways to clear title in Tax Deed sales and both statutes and case law wouldn't be on your side unless you either cleared title or used a GC Deed with FULL DISCLOSURE in regards to resale of a Tax Deed.
I'd have to hear that from a title attorney to use a QCD. The issue of QCDs in sales was first brought up by a member on BP who is a title attorney, running a title insurance shop in Florida. That was about a year ago. Disclosure would be made on a SWD.
A QCD doesn't warrant that you have title, the SWD does and can carve out things not warranted and disclosures can also be made.
I agree, title should be cleared as required, however the system affords that. :)