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Tax Sale Auction

Posted on: 07th Mar, 2009 10:19 am
My wife and I are attending a County Tax Sale Auction in Saratoga County, New York later this month. The successful bidders receive a Quitclaim Deed from the County, transferring the County's interest in the property to the winning bidder.

My question is: How long do we have to wait after the Quitclaim Deed is filed by the County Clerk before we can file for the "Title" of the property that we play to buy at the Auction? We don't want to "buy" a property and then never be able to acquire "possession" of the property.

Any help would be greatly appreciated!

Thanks,
-Jim
Hi phinfanatic,

It shouldn't take too long to file for the title after the quitclaim deed is recorded with the county clerk's office. Once the deed is filed you legally become the owner of the house. You do not have to wait for a new title to be issued in your name to get the ownership. However, a quitclaim deed doesn't ensure who the actual owner of the property is and if there is any lien placed on it. So, it's always better to go for a warranty deed as it transfers title free and clear.
Posted on: 09th Mar, 2009 12:01 am
Unfortunately, the County only issues a Quitclaim Deed. I went to the County Clerks office and researched the properties that we're interested in but some owners have "judgments" against them so I'm not sure if a lien is/was placed against those properties. The guy who showed me how to look things up on the computer said he didn't know how to tell if a lien had been placed a property or not. He said to just buy Title Insurance on each property before the Auction but I remember paying like $500 for Title Insurance when we bought our house almost 6 years ago. That just seems way to expensive to go that route.

I have a co-worker that purchased vacant land at a "City" Auction in Albany County, NY and he said that once a property goes to Auction that all of the "lien holders" for that property are notified in accordance with Article 11 of the New York State Real Property Law about the auction and if they don't show up to the Auction than they forfeit their liens and the Property becomes free and clear after you close and the Deed has been filed.

That just sounds too good to be true. I would feel 100 times better if the County issued a Warranty Deed but they don't. I'm a little uneasy about the Quitclaim Deed and the "Buyer Beware" in the Auction terms.

Should I just pick one property and pay for Title Insurance on it and only bid on that one property?
Posted on: 10th Mar, 2009 01:55 pm
Hi phinfanatic,

As far as I know what your co-worker has told you is correct. However it's always better to go for a title insurance as a transfer through a quitclaim deed can never remove cloud from the title.
Posted on: 12th Mar, 2009 07:32 am
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