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Title research for a tax deed2018-04-13T08:10:38+00:00

LandInvestors.com Forums **Ask A Question** Title research for a tax deed

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  • Matt
    Participant
    Post count: 137

    Hello everyone! I’m buying a property and the vesting deed is a “Tax deed to purchaser of Tax defaulted property” in California. Besides checking the legal description, is there anything else that I need to double check for the title? The deed is between the tax collector and the current seller. I think it’s as good as any deed right and the chain of title before it is disregarded because it was foreclosed on due to overdue taxes. Is there anything else to look out for?

    Milan
    Participant
    Post count: 446

    You might not be able to get a tittle insurance on this one. I learned recently that title companies don’t do title insurance on tax deed properties. At least the one i hired refused check for $1000 and do title.

    But if you are ok with it than no problem.

    Joe McLain
    Participant
    Post count: 41

    So if I have this correct, you are buying a tax deed from someone other than the county. You may want to check the chain of title through the current owner. Meaning, who sold the property tot he current owner and who sold it to him? Go back as far as you can go in the public records on the tax assessors site. I think what you want to check is there a break in title where you might have a couple signing the deed 10 years ago and then only one of the couple signed the deed after that. Were there any liens on the property, that sort of thing.

    Lets back up to Milan’s issue with title insurance. Who was the last person to have clear title? Can you contact them to sign over title to you with a Quit Claim deed. Fastest and cheapest way to title. Or do you want to file Quiet title action with an attorney? Or do you want to use a service like taxtitleservices.com. Those are the options that I know about.
    Joe

    Matt
    Participant
    Post count: 137

    Thanks for the input guys. I’m not sure the problem is stated clearly.

    The owner has a tax deed. Which can only be issued by the county. So there is no “previous owner” as an individual. The previous owner is the state in this case. Because the state took the property from the last individual who owned it, when they didn’t lay their taxes for 5 years. I believe that Jack has explained that a tax deed from the Treasurer wipes the previous chain of title. So I am aware that title companies won’t insure it, so I am closing this deal in house.

    I am looking to find out if there are any additional steps that people do when buying a property where the vesting deed is a tax deed, or if there was one in the chain of title. Do you only follow chain of title back to the tax deed? So for me I only need to write up a new grant deed? Can it be a grant deed or should it be some other style of deed, obviously I can’t make another tax deed of course, but I think some states require you to do quit claim deeds for X years after a tax deed (Colorado I think?)

    Milan
    Participant
    Post count: 446

    That is exactly what I did. Title refused to insure it. I closed it in house using grant deed. And saved $1000 on title insurance. This is in Nevada. You’re good with grant deed in California. Proceed confidently if you got a great price Matt.

    Luke Smith
    Moderator
    Post count: 1227

    Grant Deed it to you then your buyer.

    I took one like this through title in San Bernardino County CA. Title took months. They wanted a report from the county showing what they did to take the property from the previous owner. The county kicked it right out but title stewed on it for a while before doing it.

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