A tax deed doesn’t guarantee good title.
Biggest Vulnerability
Although tax deeds can have other challenges, by far, the biggest vulnerability they have is the taxpayer/former owner can claim to have not received proper notice.
Due Process
A tax deed doesn’t even guarantee the taxpayer got proper notice of the tax sale.
Proper Notice = Due Process | |
Improper Notice = No Due Process |
The taxpayer may have been denied due process.
No Title Insurance
Because of this vulnerability, title insurance companies won’t insure properties acquired by tax deeds until the four year statute of limitations has expired. Some won’t even do it then.