How to sell tax deed property

5 Replies

@Robert Stover Each state is typically different. In florida no title company will issue title insuracne on a taxded property until 5 years after it was sold at auction. This ca be corrcted by performing a quiet tittle action. After the quiet tittle action the title would be insurable and the property could be sold to a traditional buyer. Otherwise hold the land for 5 years till the tittle clears or sell to an all cash buyer that does not require title insurance but I think the later is going to be hard to come by. Again the lwas and rules are different in every state so contact an attorney and ask them about the laws / rules. Also google search will provide you plenty of additional information. 

@Robert Stover

It depends on the title underwriter and title agent. Some companies and agents may require a quiet-title action even if five years have passed. I know a few underwriters that require 21 years to pass since the tax sale date.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Thanks,  I wonder what the average cost to do a quiet title is, can anyone give some insight if you have done one in the past. These lots sat in the repository for 20 years and I have owned them for  a dozen years. 

@Robert Stover

It depends on the potential title issues and whether the defendants would actively contest the quiet title action. If everything is simple and no defendants show up, an attorney could probably do it within 15 to 20 billable hours. If there are complications, then the sky is the limit. 

The other factor to consider is the publication costs. When it comes to quiet-title actions, you generally need to serve all the "unknown parties" by publication. Depending on where the property is, the publication costs can cost a thousand dollars or more.

Now if the original tax sale took place more than 30 years ago, you might have a marketable title. I would ask a title company if you could get it insured. It may cost few a hundred dollars for them to do the search but it's cheaper than going with a quiet-title first. And assuming the title company did a proper search, the attorney handling the quiet-title action would find it useful. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.