There is a small piece of abandoned land that I am interested in acquiring. A notice was just posted stating that the back taxes have been bought by xxxx and the sheriff will auction the property.

I am looking at this property as an expansion to my current commercial lot and not for resale purposes. The property borders several other commercial lots who could be interested and as well as the property I own.

I intend to bid on the property at auction. I am a little confused as to the process, assuming I am the winning bidder at the auction.


If I am successful at auction I would then acquire a tax deed. After the sale there is a redemption period of 12months where the owner or interested party can buy back the property for my purchase price plus interest of 20%.

But how can I turn that tax deed into a title or do I even need to if my intimidate intent is not to sell the property? And at what point can I start to use the property? I plan to put a storage unit on the property, minimal cost would be incurred. No power, water, heating/cooling would be needed.

I have read about quiet titles and even read about a company called Tax Title Services, who claim they can get title insurance within 60days of acquiring the tax deed.

I want to keep my cost to a minimum but also would like to use the property as soon as possible. How should I proceed?

Any help would be greatly appreciated.

Rules on this vary by location. ANY question about law needs to include a general locale because of that.

If you win the bid, you can use the property but would not be able to improve the property (build on it etc.) until the waiting period is over. At that point you can convert the tax deed to a full deed and the property will be yours.

Scott,

Thanks for your speedy response. I did not include my local in the body I did mention it in the title. I should have made it more clear, sorry.

Would a temporary storage unit and a fence surrounding the property be considered improvements? I could live with that until the redemption period is over.

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Originally Posted by Sykes

Scott,

thanks for your speedy response. I did not include my local in the body I did mention it in the title. I should have made it more clear, sorry.

Would a temporary storage unit and a fence surrounding the property be considered improvements? I could live with that until the redemption period is over.

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Assuming you get all applicable building permits, etc. you can build the storage unit and fence. You are, however, taking the risk that the property will be redeemed and the improvements you make would be lost.

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Originally Posted by ScottGem

... At that point you can convert the tax deed to a full deed and the property will be yours.

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Actually, a tax deed is a "full deed" with an equity of redemption. If the deed is dated today, and if a year from now it hasn't been redeemed, your title is as good as any other title.

Whoops sorry about that, Its so common that people don't include the locale. The temporary storage unit is not a problem since it can be easily dismantled or moved. The fence may be an issue because it would be considered part of the property.

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Originally Posted by AK lawyer

If the deed is dated today, and if a year from now it hasn't been redeemed, your title is as good as any other title.

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That sounds great. So I can bid on the property, put a temp storage unit and fence and if there are no claims in 12 months the tax deed converts to full and clear title.

So there is not need to burden the cost of a quiet title action or use a service like Tax Title Services to acquire title insurance 60days from receiving the tax deed?

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Originally Posted by Sykes

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So there is not need to burden the cost of a quiet title action or use a service like Tax Title Services to acquire title insurance 60days from receiving the tax deed?

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I am not familiar with Tax Title Services, but it would be a good idea to get title insurance at the time you make your bid. Otherwise, you don't know if you are buying a clean title. For example, there may be other taxes due on the property, etc.

I agree Title insurance is a good idea anytime you are buying property.