No title insurance for wholesale deal

3 Replies

I'm looking at a deal where the wholesaler is saying he cannot guarantee a clean title. Apparently he purchased at a tax sale. How would one proceed with a deal like this with the risk that the title is not clean? I always thought verifying clean title was part of the closing.

You have to understand what title from a tax sale can mean tons of different things in different situations...redemption period, proper sale, proper notifications, etc.?

In general, it’s probably garbage if they are offering what Seems like a good deal.  You can find all kinds of garbage tax title properties on EBay,  the seller’s trolling ground for suckers.

depends on where it is.. how much your paying and what you want to do with it. 

for instance in SC  tax sales take for ever to clear title.. so if I could buy say an old dump there in a historic gentrifying 

area .. for peanuts and just rent it right away and did not need to get a loan or sell it.. 

I would risk that.. 

If your using money you cant afford to lose and or need to finance or plan to resell.. then buying a property without title insurance is risky.

cheap land is many times bought with out title insurance.. But as Wayne alluded to there are those that make a living buy this stuff for next to nothing and then dumping it on newbs.. 

Or the wholesaler if there is one.. Is one of these new folks that is equally clueless and if they are not clueless then they are financial predators.. 

PS I see he gave you full disclosure so I don't think he is preying on you.. not sure if he or she is telling you the down side though.

@Russell Pitts

I always thought verifying clean title was part of the closing.

It depends on what the contract says. If your agreement with the seller is that you are taking it subject to certain title defects then the title company is only going to verify what those defects are. They MAY be able to fix them. But it may not be worth the expense or time. or  may not be able to.