When venturing into the world of real estate empire-building through county tax deed sales, one must be prepared to tackle a unique set of obstacles.

These tax deed properties are sold as-is, without any access to the property itself, adding an extra layer of complexity.

As an investor, not only do you have to consider the condition of the property and its occupants, but you also need to ensure that you have proper title insurance to safeguard your investment in case any prior party challenges the validity of the tax sale.

Tax Deed Title Certification vs. Quiet Title Action

Traditionally, investors would have to engage the services of an attorney to initiate a quiet title action through the court, a process that not only consumes time but can also strain the budget of a tight-fisted investor. What’s worse, the longer a quiet title action drags on, the more expensive it becomes.

Investors find themselves at the mercy of a sluggish court system and the intricacies of the legal proceedings, which often result in quiet title actions lasting anywhere from six months to several years.

This cumbersome process is why many investors consider the tax title certification process as a more favorable option.

How Tax Title’s Certification Service Started

Over two decades ago, Tax Title Services, a California-based company, recognized the frustration experienced not only by investors but also by counties when it came to quiet title actions.

Investors who purchased county tax liens and deeds were left grappling with the legal hurdles of obtaining title insurance, often finding themselves stuck with non-performing properties.

This unfortunate situation led to a halt in tax payments, forcing the properties back into auction cycles.

This vicious cycle not only affected investors but also put counties in a financial bind, hindering their ability to provide essential services to their citizens.

To address the concerns voiced by all parties involved in tax sales, Tax Title Services introduced the Tax Title Certification, also known as the Tax Deed Certification.

The Title Certification Process

The Tax Title Certification process is a non-judicial review of the tax sale, validating the accuracy of the sale process through which the property was acquired.

This certification process typically takes an average of about 30 days to complete.

During this period, Tax Title Services ensures that all parties with a recorded interest in the chain-of-title receive proper notice and that the county has followed all due process requirements before auctioning off the tax lien or deed.

Additionally, Tax Title Services takes several proprietary steps to minimize the title insurance underwriter’s risk exposure, thereby providing investors with the fastest route to insurable title.

Cons of a Quiet Title Action:

  • Cost: Legal fees and court costs can be high, depending on the complexity of the case.
  • Time-Consuming: The process can be lengthy, taking months or even years to resolve.
  • Uncertain Outcome: Like any legal matter, the outcome can be uncertain and may not always be in your favor.

Pros of a Title Certification for tax deed properties:

  • Speed: It’s much quicker than a quiet title action, often taking only a few weeks.
  • Cost-Effective: Generally less expensive than a quiet title action, as it involves less rigorous legal proceedings.
  • Peace of Mind: It offers a degree of assurance that the property you purchased will not be challenged by a prior party, even if you do not purchase a title policy.

By streamlining the certification process and significantly reducing the time and effort required for obtaining title insurance, Tax Title Services aims to alleviate the challenges faced by investors and counties alike. With its thorough review and commitment to risk mitigation, the Tax Title Certification process offers investors a reliable and efficient pathway to secure their real estate investments

Navigating the aftermath of a tax deed sale requires a careful balance of risk, time, and money.

Understanding the pros and cons of quiet title actions and title certifications is crucial in making an informed decision.Remember, in the world of real estate, knowledge is not just power—it’s profit and peace of mind. As you embark on this journey, keep these insights as your guide, and may your path to property ownership be both legally sound and lucratively rewarding!