How To Purchase Property From a Tax Deed Auction - Georgia?

Question

I' interested in purchasing property in DeKalb and Fulton County. I recently was pretty close to purchasing a property in Kirkwood for $38,000 that the seller paid $4600 for at a tax deed auction. I know you have to do a quiet title action but I'm not quite sure how everything works. Can anyone give me any insight on some do's and don'ts? Does anyone know when it takes place? I'm under the impression tax sales and tax deed sales are two separate auctions, is this correct?

Account Closed · Answer

Here's a general overview, but this is not legal advice and you should not rely on some guy writing stuff on the internet without first talking to an attorney. In essence, you will be filing a lawsuit naming as defendants all prior owners or interest holders in the property in the past 18 years, which is the statute of limitations for adverse possession in Georgia. Your claim is that you have superior title to the property by virtue of taking it through the seller who bought it at the tax deed sale. You have to serve each of the prior owners, who then have an opportunity to file an answer and make their argument to the court about why the tax sale did not extinguish their interest (most frequently, lack of notice of the sale). The court hears the arguments, and then, if all goes well, rules that your title is superior to the prior owners ("quiets title").

Quiet title actions can take between 4 months on the short end (if uncontested) to more than a year if a prior interest holder fights you.

One thing to be wary of: you may know this, since you plan to quiet title, but you (or your future buyer) will not be able to get title insurance until that is completed. That limits the deal to all-cash or perhaps hard money, since no major lender will make a loan without title insurance.

Quiet title actions can take between 4 months on the short end (if uncontested) to more than a year if a prior interest holder fights you.

One thing to be wary of: you may know this, since you plan to quiet title, but you (or your future buyer) will not be able to get title insurance until that is completed. That limits the deal to all-cash or perhaps hard money, since no major lender will make a loan without title insurance.

Account Closed · Answer

To answer your specific questions, you can file the quiet title action at any point after you obtain title to the property. For your purpose, there is only one auction - the tax deed auction. The county does sell a tax lien prior to that, but its not an auction and in practice only one or two institutional buyers buy all of the liens in bulk.

Joel Owens · Answer

Hi Galen,

It would be to your benefit to talk to an attorney in the county where the property is located. One that works with investors on quit title actions and the purchasing of the tax deeds.

How To Purchase Property From a Tax Deed Auction - Georgia?

How To Purchase Property From a Tax Deed Auction - Georgia?

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