LandInvestors.com Forums **Ask A Question** Treasurer's Deed

Tagged: 

  • Creator
    Topic
  • #1511

    Kevin Rhatigan
    Participant
    Post count: 107

    @jilldewit
    @stevenbutala
    @luketsmith
    @mikedugan
    @claire

    Hello again Steve, Jill, Luke, Mike, Claire (and everybody else!)

    Well Steve is right, things do not always slow down over the holidays!

    I have an accepted offer but the current owner bought the parcel via a Treasurer’s deed.

    How would this purchase differ form any other purchase? Is there anything else I need to do or paperwork I need to request from the county?

Viewing 15 replies - 1 through 15 (of 16 total)
  • Author
    Replies
  • Joel S
    Participant
    Post count: 51
    Pro

    By this explanation of a treasurers deed it looks like you should contact the county.

    https://definitions.uslegal.com/t/treasurers-deed/

    Chris
    Participant
    Post count: 252
    Pro

    A treasurers deed transfers ownership of real property free and clear of all liens. It is generally a deed issued in a tax sale, so that the buyer is buying the property from the county. This title is not necessarily a warrantable title. A tax sale treasurers deed can be set aside by the courts if it is determined that the tax sale purchaser was ineligible to bid at tax sale. You have full rights of ownership but you must take care to follow statutory redemption or the legal challenge periods usually for one year following the purchase before you can resell it. Treasurers deeds are governed by state and local laws, which vary by jurisdiction, so local laws should be consulted for specific requirements.

    It seems just like a tax deed. If so, it may not be 100% clear title, but the transfer would be the same.

    Kevin Rhatigan
    Participant
    Post count: 107
    Pro

    Thanks everyone for the input on the Treasurer’s deed question. Unfortunately it turned out that the current owner bought the property 10 years ago and never paid any taxes since then so the back taxes make this a “no deal”

    But now I know better for next time!

    Chris
    Participant
    Post count: 252
    Pro

    Out of curiousity, how much are 10 years of back taxes?

    Kind of ironic though, buy property at tax sale because previous owner never paid taxes, then stop paying taxes….I’m surprised no one has forced a tax sale yet.

    @kevinrhatigan

    Aharon
    Participant
    Post count: 10

    Was wondering if there is a way of seeing the amount of back taxes earlier on when putting together the list of property’s?

    would save some time and energy in the long run

    @kevinrhatigan

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    Some counties back taxes are in agentpro247 and can be quried. Some are just not there. I found a county were the data seemed to line up with the county website pretty well.

    Other data seemed off like a 7 acre lot was actually 4 something and the owner accepted but told me my letter was off and figured a was only offering 100 per acre so he told me 100 an acre was just fine.

    Just saying data quality veries by county.

    Kevin Rhatigan
    Participant
    Post count: 107
    Pro

    The $984 seems to cover about ten years of back taxes. And yes I certainly did not expect that someone who bought the property at a tax sale would neglect to pay taxes!

    I do not know if there is a way to screen out the delinquent tax properties from the mailing list.

    I’m not sure I would want to do so since if they are only past due by a few hundred dollars or less they can be a great bargain.

    Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    @kevinrhatigan

    Well, bummer that the deal is not worth it now – but glad you did your “homework” on it!

    From treasurer’s deed you can create a new “Grant Deed” or “Warranty Deed” based on whatever that state uses. Hope that helps! Jill

    Kevin Rhatigan
    Participant
    Post count: 107
    Pro

    @jilldewit

    Thanks Jill, appreciate it! I think we need to look at all of these things as learning opportunities so we are better prepared for the next time around

    David Dempsey
    Participant
    Post count: 28
    Pro

    This question of treasurer’s deeds has been a challenge for me working in Colorado. I’ve had several tasty opportunities present themselves but the owner has a Treasurer’s deed. The county won’t give legal advice of course – and the internet is not much help as rules vary by state.

    It appears people are buying treasurer’s deed properties and scrubbing them by selling via Special Warranty Deed or other conveyance. I worry that recording a new deed doesn’t mean the previous owner won’t come back and make things terrible for my company or the folks to whom we sold the property.

    I hate to pass on good opportunities, but as Mike Dugan lays out here, it takes 7+ years for the property to become “marketable” or “merchantable”.

    From a county treasurer’s website in Colorado:

    “A Treasurer’s Deed is an unmarketable title for 7 years. You may deed the property to another; however, you may not warrant the title. Please contact an attorney or title company for further information. The Treasurer’s Office is unable to advise you in this matter.”

    Treasurer’s Deeds may be more trouble than they’re worth. Unless I’m missing something essential… which may well be the case. If so I’d be eager to know more.

    Dave VanSteenkiste
    Participant
    Post count: 111

    @jilldewit
    I am viewing your answer above to @kevinrhatigan, you stated “From treasurer’s deed you can create a new “Grant Deed” or “Warranty Deed” based on whatever that state uses.
    Let me make sure I am clear. I can just go into deed perfect and create a warranty deed so that my seller can transfer the property to me if he has it on a Treasurer’s Deed?
    Please confirm because I have an AWESOME DEAL in the pipe if that is true. 35 acres in a super hot area in CO. The seller has agreed to sell it to me for $2500 and in that area I can probably sell it cash for 15-20K!!!!
    Thanks,
    Dave

    Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    @vdavid3

    You are correct! It is called a “Treasurer’s Deed” because of the situation and it was deeded to the buyer from the Treasurer. You would not copy that and create a Treasurer’s Deed because your seller (current owner) is not the treasurer. So pop into DeedPerfect.com and create your new deed like normal.

    Congrats!
    Jill

    Dave VanSteenkiste
    Participant
    Post count: 111

    Thanks for the quick reply Jill. So how do I ease the seller’s mind that this won’t come back on him in later years?
    Can I resell this with title insurance if my buyer wants it? The title co will see the transaction history.

    Bryan McCarthy
    Participant
    Post count: 6
    Pro

    @vdavid3
    Hi Dave, any updates on this? I’m in a similar situation. Doesn’t feel right to ask the seller to use a warranty deed since I know it could come back to bite them for several more years. I’m considering asking for a special warranty deed and reselling with a special warranty deed. I heard that the original owner has 5 years from the treasurer’s deed to come back and complain. I also heard that no one can get title insurance until the 9 year point.

    Dave VanSteenkiste
    Participant
    Post count: 111

    Brian,
    What I have learned is that it varies in different states. In AZ for example a TD goes through the courts and is clean when sold and immediately marketable.
    In CO where I did my deal, title is not marketable for 7 years because a TD here in CO is not very thorough and does not go through the courts.
    That said you can shortcut the process by taking the property through quiet title, which takes about 4 months and I’ve heard cost ranges from 1-2k. My deal had the margin to do that but I really didn’t want to. With clean title I could have sold for 20k at least. But since I only paid 2k I threw it out there cheap (12,500) with full disclosure, looking for the right buyer who would be willing to take the risk and go through the hassle for the right price. I sold it for 12,500 and everyone wins!

Viewing 15 replies - 1 through 15 (of 16 total)

You must be logged in to reply to this topic.