What to do with A TAX DEED

Question

I just bought my first Tax Deed here in FL. When I went to purchase the deed, I was provided with a piece of paper that reads "Tax Deed". I am wondering how I can make a quitclaim deed out of this. I am aware I can go through the quite title process to get a warranty deed but the process is expensive and I believe I can sell the deed as a quitclaim deed. The property is raw land in a residential neighborhood. The property seems to have the base of a structure as the property may have burned down or construction ceased on the property, which is unlikely in a residential neighborhood where homes literally surround the property. If there is any additional information you would like or any contacts you can provide it would be greatly appreciated. BTW I am located in the Tampa Bay Area.

Wayne Brooks · Answer

@Robere IstatiaYou don't "sign over the same deed" to someone, like a car title.  A New QCD document is created, then executed.  Expect to sell for a discount that will be more than the cost of the QT.

Robere Istatia · Answer

@John Underwood thank you for your response. I realize that the Tax deed is a quitclaim but how would I sign it over to someone else. It is just a plain document that shows the Tax Deed being bought by me but no way to transfer it to someone else. Are you familiar with how to create a document/ template so I can sign it over to someone else once I find a buyer?

John Underwood · Answer

@Robere Istatia Your Tax Deed is a Quit Claim Deed as it has not warranty. You can advertise it for sale to a cash buyer and let them you you will be selling with a Quit Claim Deed.

If you can find previous owner/s and get them to sign a Quit Claim deed and then get a release from any liens or mortgages if there are any, then you remove the cloud from the title. You can then get title insurance and sell property with a General Warranty deed without having to do a Quiet Title. I just did this. My attorney had to explain this to the buyers attorney but it went through with no problem. I offer to pay any previous owner/s each $200 for their time to sign some paperwork which I have notarized. Then I file this docs with the Register of deeds. Doesn't take much money just some time to track down people if you can find them.

Neil Goradia · Answer

Thanks @Dennis Weber

Dennis Weber · Answer

Hi @Neil Goradia  I didn’t believe it at first.  They’re certificate is different than Meridian’s. Meridian’s is $1995 for $25k and above purchase price. $1495 for lower. I was using Best Title that charged $1200 for QT. They would close in a couple weeks insuring title as QT was ongoing. But American First will issue insurance and warranty deed if they feel good about it, I guess. Maybe they just do lots. You can ask Laura Guy more about it. I just sold her a lot using them.

Neil Goradia · Answer

@Dennis Weber, is it only $300? I thought Meridian Title's process is around $1200, curious as to how they're able to do it so much cheaper unless I'm missing something? Thanks.

Dennis Weber · Answer

Just closed with First American Title in Indianapolis getting a tax certificate with a warranty deed and insurance for $300. Don’t know if they’re in your area or not. If not, pick up the phone and start calling. A good tool to have in your belt.

John Underwood · Answer

@Robere Istatia, This is as simple as it gets for a RE Attorney. Just call and get prices and ask if they are familiar with QC deeds. The person buying your place will be the one taking the risk and not you if the attorney was to mess it up somehow. Attorneys have insurance against mistakes so I wouldn't worry about that. I personally would just find someone with a good price. You can't create the Deed until you know who the buyer is and they may just want to use their own attorney.

Robere Istatia · Answer

@Wayne Brooks Where do you find the template for the deed. Does the county have a format they require?

@John Underwood Do you have any tips on how to find a reputable RE Attorney in my area, ever had a bad experience?

John Underwood · Answer

You create a new QCD,you don't sign over your existing one. An attorney should only charge your $200 or $300 to create one. I do my own but not not advise that if you don't know what you are doing.

What to do with A TAX DEED

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