4 Ways
There are 4 ways to get good title on a tax deed property.
- Wait 4 years for the statute of limitations to expire;
- Bring a quiet title action in court;
- Get your tax deed reviewed and certified for title insurance; or
- The best solution, ours, get a quitclaim deed from the former property owner.
1. Statute of Limitations
Pros:
- Free
- Easy
Cons:
- Slow, can’t sell the property for 4 years
- Even after 4 years, not all title companies will insure
2. Quiet Title
Pros:
- Somewhat fast, 2-3 months
- If successful, all title companies will insure
Cons:
- Costs:
- $3-5K
- More if disputed
- Not guaranteed to work
3. Title Insurance Certification
What is this? Specialized companies will certify your tax deed property for title insurance without waiting for the statute of limitations to expire or doing a quiet title action.
Pros:
- If successful, somewhat fast, 1-2 months
- Can be cheaper than quiet title
Cons:
- Still takes 1-2 months
- Nonrefundable upfront costs, even if property does not pass
- Extra costs if initial review reveals problems
- May not work if disputed
- Limited number of title insurers will accept this solution
- Certification expires in 1 year
4. Quitclaim
Pros:
- Highly successful
- Permanent solution
- Easy—pay online—deed gets recorded
- Very fast—just a few days
- Cheaper than most other solutions
- Prevents previous owner from disputing your tax deed
Cons:
- We can’t do this for every property. (However, if you got a property number from us, we can!)
Best Solution
Without a doubt, if you can, get the quitclaim!