Tax Deed Title Clearing In 5 Quick Steps | CRITICAL!

Summary

In this video, Dustin Han, a tax lien and deed expert, explains how to clear the title of a property purchased at a tax deed sale in five simple steps. The process includes obtaining the tax deed, checking for any outstanding claims or liens, negotiating or paying off those claims, using a quiet title action if necessary, and recording the clear title with the county. He also highlights the option to use services like Tax Title Services for expedited title clearing. This guide is aimed at investors who want to make tax deed properties marketable and eligible for financing.

Takeaways

• 😀 Ensure you obtain the tax deed that proves you are the new owner of the property.
• 😀 Check for any outstanding liens or claims on the property that could affect your ownership, such as mechanics liens or family-related claims.
• 😀 Pay off any existing liens or claims that may have been missed during the tax deed sale to clear your title.
• 😀 If there are unresolved claims that cannot be satisfied, you may need to initiate a quiet title process, which takes about 90 days.
• 😀 Once you receive a court order confirming clear title, record it with the county to guarantee the deed and facilitate property sales.
• 😀 Tax deed sales often don't offer a guaranteed deed, which could make it difficult to secure financing through traditional mortgages.
• 😀 When selling a tax deed property to an investor, they may be familiar with the process and accept it as-is, but for a wider market, you'll need to clear the title.
• 😀 If you prefer a quicker solution, consider using a company like Tax Title Services, which can help clear your title within 30-60 days for a fee.
• 😀 Avoid excessive research or delaying action due to fear of making mistakes—take action and learn along the way.
• 😀 You don’t need an LLC to get started with tax deed investing—begin as a sole proprietor and transfer properties later if needed.
• 😀 Tax deed properties can often be purchased for up to 90% below market value, offering significant investment opportunities.

Q & A

What is a tax deed, and why is it important when buying property at a tax deed sale?

A tax deed is a legal document that proves ownership of a property after purchasing it at a tax deed sale. It is important because it confirms that you are the new legal owner of the property, but it may not come with a guarantee deed, which could cause issues if you try to sell the property.

What is the issue with selling a property with a tax deed to a first-time homeowner?

First-time homeowners may not be able to secure traditional financing or a mortgage on a property bought through a tax deed sale, because the deed may not be a type that banks like to work with.

What role does a title company play in real estate transactions, particularly when buying a tax deed property?

A title company ensures that the property title is clean, clear, and free of any issues or legal complications. They help confirm ownership and ensure the buyer won’t face surprises like unpaid taxes or legal claims after the purchase.

What steps should you take to ensure that a tax deed property has a clear title?

First, obtain the tax deed to confirm you are the new owner. Then, check for any outstanding liens or claims on the property. If there are any unresolved claims, you may need to negotiate or pay off debts. If the claims can’t be satisfied, you may need to go through the quiet title process.

What are some common claims that might affect the title of a property purchased at a tax deed sale?

Common claims can include outstanding debts, such as unpaid property taxes, loans, or mechanic's liens. Sometimes, family members or heirs may have claims if they were part-owners of the property.

What is the quiet title process, and when is it necessary?

The quiet title process is a legal procedure used when you cannot resolve a claim on the property, such as when an heir to the property is unreachable. It allows the court to confirm you as the rightful owner, and it typically takes about 90 days.

What happens once the quiet title process is completed?

Once the court grants you clear title, you can then record the clear title with the county, officially recognizing you as the owner and allowing you to sell the property or obtain financing without issues.

What is the role of a title service company in clearing the title on a tax deed property?

A title service company, such as Tax Title Services, can help expedite the process of clearing a tax deed title. They typically charge a fee and can help clear the title within 30 to 60 days, depending on the state and situation.

What is the main mistake many tax deed investors make when starting out?

A common mistake is waiting too long to take action, often because investors feel the need to learn everything before starting. However, it's better to take action and address any issues as they arise rather than over-prepare and delay investing.

How can you get started with tax deed investing if you don’t have an LLC?

You can start tax deed investing as a sole proprietor, and later transfer the properties to an LLC once you’re more experienced. You don’t need an LLC to begin investing in tax deeds.