If it’s your first time purchasing tax deed properties, foreclosures, or sheriff’s sale properties, you may be wondering what the next steps are. In most cases, the logical next step is to obtain title insurance. While this may sound simple enough, the process can be different depending on the method you choose for acquiring it.
To understand how long it takes to get title insurance, you’ll need to first understand the options available and how they work.
Before you can obtain title insurance, you need to prove that you are the sole owner of the property. This means you’ll need to provide a clear title to the insurance underwriter for consideration. The most common way to obtain title insurance when you have a clouded title is by filing an action to quiet title through the court system. In many cases, when you purchase a property at a county auction, the title will have significant blemishes that could financially impact you in the future. Particularly with tax deed properties, pre-existing liens can be inherited through your property purchase. While these debts aren’t technically yours, you will still be financially responsible for them unless you can clear the title.
You can file an action to quiet title in order to get these liens removed from your title and avoid further financial obligation. In order to file such a suit, you must request a decree from the local court of jurisdiction. To do this, you’ll need to provide evidence of ownership in the form of the property title. You’ll need to prove that you purchased the property in good faith without pre-existing knowledge of clouds over the title (other interested parties or undisclosed, pre-existing liens). Doing so requires a court appearance, thousands of dollars in legal fees, and can take up to nine months to resolve. In some cases, the process can take over a year to complete.
An alternative method for obtaining title insurance with a clouded title is by having your title certified by a tax title curative consultant. Through this process, the consultant will verify the completeness and accuracy of tax lien foreclosure due process to ensure no clerical errors were made. Once verified, the consultant will connect you to a partner title insurance agent to protect your assets from further legal or financial responsibilities.
Tax title certification can take as little as four weeks, and typically won’t take longer than 12 weeks to complete. When you choose the route of certification, you’ll pay a flat fee that’s much less expensive the thousands of dollars in legal fees you’d pay by filing an action to quiet title. With this method, you could have title insurance for your property in as little as four weeks, paying no more than $2,650 in states with the highest fees.
The best way to get title insurance for your property is by getting assistance from the tax title curative consultants at Tax Title Services. We’ll verify that the tax lien foreclosure due process was handled correctly, thoroughly checking for clouds over your title that may impact you in the future. Once certified, we’ll partner you with a title insurance underwriter to give you added protection over your assets for years to come.
Contact the TTS team to find out more about how our unique certification process can save you time and money.