A semi-legal question for Texas land:
Around here usually lands conveyed by Sheriffs' Deeds is crappy land that the previous owners got behind on and did not pay taxes on and abandoned. After a few years the county basically sells to highest bidder on the court house steps.
When the land is sold via this process are all the past title problems such as liens and judgements that existed before before the sale cured and extinguished by the process or do the defects still exist?
John Harmon
Typically, yes. Everyone had their right to come forward and settle up, and they didn't. Then the county and typically ISD repossess it for back taxes and it's clear title to whomever bids and pays highest.
Sometimes the people they repossessed the land from did not actually own the property, they simply were the ones paying taxes on the property.
The legal minds got together several years ago and stripped any previous owners of their right to reinstate their title by repaying the owed fees back within 24mos as set forth in original laws of taking.
Your investment into tax auctioned land is totally at risk and it can take 2yrs or more before you can obtain title insurance on that land.
good luck
I bought some land from the precinct 2 constable in Tarrant County and the city is still trying to collect payment from me for liens on substandard building demolition levied before the tax sale (the house on the property had burned). I've never gotten a clear answer as to whether this lien is a legitimate pass-through.
The person who buys it from the county is also responsible for back taxes and I.think Liens, etc.
No. Normally, all of the outstanding liens are cleared by this process. Sometimes, sneaky cities will hold off on invoicing for things like mowing abandoned lots until after the tax sale. The buyer needs to explore thoroughly for such things or they can bite them in the butt. It will take at least one full year after the tax sale for any title company to have any interest in selling the buyer a title insurance policy. That will vary from state to state depending on the redemption policies that apply to whomever lost it at the tax sale.
I have made numerous tax sale purchases and have no significant complaints. Understand what you are doing or stay out of the game.
It's an article from around 2001 that spells out that there is no free lunch, of course things may differ from state to state.
