tax auction property and title insurance (sale, lawsuits, properties, legal)
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Scenario: Purchased property at tax auction, 1 year redemption period has passed. New owner wants to sell property, but none of the local title agencies will provide title insurance. He can still sell it, but without guarantee of clear title it would be limited to cash buyers willing to assume the risk and would rightfully expect a huge discount because of it.
Some internet searches revealed a few companies that offer to find title agencies that will insure under these conditions for a big fee.
Can somebody point me down the path of finding a title company that would insure a property like this?
Most title companies will probably require you to file a quiet title action before being willing to issue a title insurance policy when you go to sell it.
Unfortunately, Mark Suckaturd used the quiet title action process to allegedly steal land from the locals, and now there's a bunch of uproar about it (lawsuits, pending legislation, etc) and the local title companies have backed away from acknowledging that as a remedy.
Scenario: Purchased property at tax auction, 1 year redemption period has passed. New owner wants to sell property, but none of the local title agencies will provide title insurance. He can still sell it, but without guarantee of clear title it would be limited to cash buyers willing to assume the risk and would rightfully expect a huge discount because of it.
Some internet searches revealed a few companies that offer to find title agencies that will insure under these conditions for a big fee.
Can somebody point me down the path of finding a title company that would insure a property like this?
Before you can insure it, you will need to do a title search, and clear up any & all issues that are discovered. The title companies saying they will not insure it should be explaining that. If they aren't, I suspect there is more to the story.
Before unnecessarily worrying about inability to get title insurance, check the regulations or laws surrounding the sale of these properties by the appropriate agency and title. When I have purchased properties like this, there was always some form of legal process that provides for a clean title. It may be from the get-go by the taxing authority, or by application to the state, or by a filing with the court.
i sued for quiet title in superior court and was awarded a treasurers deed that was fully insurable...in AZ.
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