Posted on: 19th Nov, 2009 07:54 am
If a home is purchased as a Tax auction by a city, does the buyer ever really have a clear title to the home?
Hi arcook,
Before buying a property at a tax sale, you should seek the services of a title insurance company. This will help you know whether or not there are any liens on the property. As far as I know, when the property is sold off for the non-payment of taxes, the title is not marketable. The person purchasing the property should file a quiet title suit to clear the title to the property. You can contact an attorney who may help you know the details about the quiet title law suit.
You should note that private Liens and judgments do not survive the Tax Sale. However, the governmental liens and judgments survive the issuance of a tax deed. These are satisfied to the fullest extent possible by the amount received from the auction. Also, certain state liens can be extinguished in a Tax Deed sale.
Thanks
Before buying a property at a tax sale, you should seek the services of a title insurance company. This will help you know whether or not there are any liens on the property. As far as I know, when the property is sold off for the non-payment of taxes, the title is not marketable. The person purchasing the property should file a quiet title suit to clear the title to the property. You can contact an attorney who may help you know the details about the quiet title law suit.
You should note that private Liens and judgments do not survive the Tax Sale. However, the governmental liens and judgments survive the issuance of a tax deed. These are satisfied to the fullest extent possible by the amount received from the auction. Also, certain state liens can be extinguished in a Tax Deed sale.
Thanks