I spoke with several title companies on doing a title search for a tax sale property, actually it is a struck off property. From what they have told me “According to the Texas State Board of Insurance, we can not initiate a search without a valid earnest money contract”.
So in that case you can’t have a title company do a title search before you own the property. I am sure you can do a manual search, however, being a beginner at this I would obviously feel more comfortable with a title company doing this.
So if anyone who has ACTUALLY bought a tax sale property and sold it please give me some information on how to go about this. This is a vacant one acre lot I am interested in. What are my options on selling this property, would I have to hold on to it for a year, or 2 years, etc.
The right of redemption period is over…
Get me the names and numbers of the agents you called. I have had searches done in the past for refinance, check to see if issues are cleared and various other reasons. Some charged a few bucks and some did it cause I was doing other deals. I will contact the State Board of Insurance for you too located on 11th still I believe here in Austin. I will call the agents from their Presidents office. Watch out when I get steamed. I am normally a mild mannered guy but watchala.
Most will not write a policy for several years after a tax sale. Afraid the owner may win the lottery and sue them for stealing their property. I foreclosed once on a note I bought and the bas… got a freeeeee lawyer and tried to sue me from jail where they were locked up on major drug crimes. They did not crawl out of the woodwork for years until I had it fixed up and rented. The title company handled it and won but I am sure at some expense and I understand why they are hesitant to insure.
Thanks for the help. The actual company that said this was American title. This is the whole email:
"Sir; I do understand your dilemma. Every underwriter has their own prerequisites in determining the insurability of tax foreclosed property, not to mention the right of redemption afforded the prior owner or entity. Certainly, vacant - commercial vs. 1 to 4 family residential - homestead properties have absolute differences in such decisions. According to the Texas State Board of Insurance, we can not initiate a search without a valid earnest money contract. In these cases, this in itself would be a moot point for at least (but not limited to) one or two years depending on the circumstances of the situation. Also depending on which taxing authority has pursued the foreclosure will depict the amount and to whom taxes are assessed and payable.
In any event, I urge you to seek the advice of a qualified Licensed Real Estate Attorney in the determination phase of your purchase / sale of such properties. If I can be of further assistance, please do not hesitate to contact me. "
They seem to do title searches and even title insurance on tax sale properties and foreclosed properties. I havent actually spoke with them yet but the website was quite informative.