Insuring Title Acquired by a Tax Deed

Tax Sale

Generally speaking, underwriters of title insurance will require one of the following to insure a transaction coming out of a tax sale:

1. The tax deed holder must file a Quiet Title Action and let the appeal process run out; or

2. The prior owner (who lost the property) must Quit Claim their interest in the property to the tax deed holder.

If a cloud on the chain of title shows a tax deed, it must be at least 20 years old to consider insuring over it.

Note: No legal advice or suggestions are being given as to the preferred or recommended way to handle. We would consult with our underwriting council to seek approval prior to insuring. The above is an excerpt only from an Underwriting Manual.

 


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