Tax Deed Sale - Should I buy Title Insurance?

4 Replies

I was the successful bidder on two parcels in my local tax deed auction. I'm wondering if I should bother with title insurance? My research has not turned up any surprises or concerns on the properties so what would I be insuring against? 

Originally posted by @Gideon Blustein :

I was the successful bidder on two parcels in my local tax deed auction. I'm wondering if I should bother with title insurance? My research has not turned up any surprises or concerns on the properties so what would I be insuring against? 

 Always buy title insurance.

Originally posted by @Bruce Lynn :

Is there a redemption period?  If so you probably can't buy it until it is over.   

 It's the deed auction - not the tax sale - so, the redemption period is already ended and now they're selling off those that were not redeemed or bid on. The land was so inexpensive, I am just not sure what the title insurance is worth/what it will insure me against. I probably just need to do some basic research on what title insurance is for. 

You normally can't get traditional title insurance on a tax deed because a tax deed is considered to have a cloud on the title. You can do a Quiet Title action to clear the deed or get QC deeds from previous owners and lien releases from an liens.