Many purchasers are surprised to learn that title to real property acquired by tax deed is not immediately “marketable”. Most title insurers will not insure title to a tax deed property without the filing of a Quiet Title Action. Assuming a proper quiet title action is completed (through all appeals), the title will be deemed marketable and the property may be sold. The quiet title suit is subject to certain defenses dealing with defects in the tax deed sale procedure. If you are considering the purchase of tax deeds, you should obtain a title report from an attorney or reputable title insurance company. The title report will advise you of any title issues which might not be curable through the quiet title action. The title report will also assist the attorney in filing the subsequent quiet title suit. If the title can be successfully cleared through the quiet title suit, and if the value of the property exceeds the unpaid taxes, a tax deed property may indeed be a good investment.
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