How To Get A Clear Title On A Tax Deed - YouTube

So, welcome back.

I'm Ted Thomas.

On this episode, I'm going to cover how to get a clear title on a tax deed.

Now, this is pretty advanced material so we're gonna have to pay close attention.

All right, how to get a clear title on a tax deed.

Now I've been involved in this business for over 25 years.

I've been guiding people and teaching people.

I've been through most of these things a number of times so a clear title is very important

when it comes to selling the property because the new buyer is gonna want a clear title.

So, this is kind of insider information.

I'll give you other information about tax liens and deeds as we go along.

But at this particular video, before I finish, I'm gonna tell you 2 mistakes that are made

at tax auctions.

You don't want to make these mistakes because it's going to cost you 25, even $50,000.

So, stay tuned until I finish this short video and I'm coming right back.

Okay, this episode is all about how to get a clear title on a tax deed.

Now, as you probably have researched already, a tax deed is a result of a tax defaulted auction.

You're buying a tax deed from the county.

Now, when the county sells you that property, they're going to have to do something about

transferring it.

When they transfer that property, you're going to have to use some kind of deed.

It could be a sheriff's deed, could be a treasurer's deed.

More than likely, it's going to be a quitclaim deed.

Now, that deed, when it's passed to you will have many disclaimers.

The disclaimers will tell you that the county is quitclaim deed-ing the property to you.

They're transferring it to you.

You now own this property.

But in the document itself, it will tell you they are disclaiming any responsibility for

anything on the property and they're disclaiming any responsibility for the title.

All right, I'm not an attorney, I'm not a CPA and I'm not a broker.

I'm just an entrepreneur who has a lot of experience working in the trenches.

There's nothing wrong with a quitclaim deed however it has disclaimers that give you feats

when you're buying unless you know what to do.

So, I'm gonna teach you what to do right now and I'm gonna make your life really simple

and you can go and clear it all with an attorney and make sure it's all correct.

But you're gonna receive a quitclaim deed, and when you receive that deed, you now on

the property.

However, when you want to sell it, you'll get a challenge because the new buyer is gonna

say, "I want to make sure this is a clear title."

The county basically sold you what they just foreclosed on, what they just had an auction on.

They don't know all the problems of that property and nor do you.

So that's gonna require that all of that will have to be cleared up.

So, let's go back and review.

Let's get a little foundational material here and go through the whole process so you're comfortable.

Nothing to be afraid of.

We're talking about in this episode, how to get a clear title on a tax deed.

You've been fortunate, you now have a tax deed, you bought a property, you probably

made a bargain price, you maybe got it for 10 or 15 or 20 cents on the dollar, you're

feeling real good and now you're gonna want to sell it.

And when you want to sell it, everybody's gonna want a clear title.

But you don't know whether it's clear, the county doesn't know whether it's clear so

you're not buying a clear title when you're buying from the county.

You're buying a quitclaim deed or a treasurer's deed or a sheriff's deed or some deed that

will have disclaimers in it.

All right so, how did this all happen?

So, this all happened because someone didn't pay their property tax and property owners

at every county in America must pay their property tax.

If they don't the legislature takes action and tells the county treasurer, "Levy the tax.

Collect the tax.

If they don't pay, confiscate the property."

Now you have purchased that confiscated property.

So, who knows, did they have a lot of liens on the property from 2 or 3 different mortgage holders?

Does it have judgements against it from law suits?

There might have been a lot of things.

Well, when the county takes the property to sell it, they wipe the slate clean.

You bought it clean but that doesn't keep people from having law suits.

So, you are going to have to get a clear title on this property.

How are you gonna get that clear title?

Write this down or run the video again.

If you want a clear title, you're gonna have to hire an attorney.

Now, I didn't say hire a kid that just got out of law school.

You don't want to hire them.

You want to get a gray-haired, old guy like Ted Thomas that's got 20 or 30 years experience

and you want to get someone that understands this part of real estate because the title

has to be clear and that attorney will clear the title.

Is that gonna cost money?

Absolutely.

It's probably gonna cost 3 to $5,000, probably gonna take 3 to 6 months but you just bought

the bargain of your life because you paid 10 or 20 cents on the dollar so let's not

be afraid of this whole thing.

Nothing to be afraid of, but there is a person to do it.

Now, I'm not an attorney, I'm not a broker, I'm not a CPA.

I'm just an experienced entrepreneur and I'm giving you the straight scoop.

You're gonna get what's called a quiet title.

And the attorney will do a quiet title action.

I learned that because I'm working in the trenches all the time.

When I buy a property, I know if I buy a property from the county that I'm gonna get a treasurer's

deed or a security deed or a sheriff's deed or a quitclaim deed.

None of those deeds will be a clear title.

They're gonna say right in them that they disclaim any responsibility from the property,

they disclaim any responsibility from the title and the property.

So, you're getting the idea.

It all started from someone that didn't pay their taxes, the county foreclosed, okay,

the county had an auction, you bought at the auction, you bought it for pennies, you made

the deal of your life.

Now, you're gonna have to get the title clear or, if you want to do the alternative that

I do with my clients, what I do is that I have my clients sell the property on a contract of sale.

Not gonna teach that in this class, I'll teach it in a another class.

A contract of sale, you collect the payments, you be the banker, you're not gonna have to

clear the title, it's your property.

You don't have to do anything so you go ahead and collect payments for 5 years and then

you can easily get a quiet title.

It's not gonna be a problem.

All right, so if you learned a lot, just let us know and we'll answer some more questions

for you.

If you're getting good information, just give us a thumbs up from time to time and if you

want to make comments below, why not?

You can do that to.

So, I'm about to finish up but let me do a quick review.

How to get a clear title on a tax deed.

Number 1, buyer beware.

Quitclaim deed will have provisions and it's usually disclaimers.

The county will disclaim any responsibility for the property and they'll disclaim any

responsibility for the title.

The title is cleared with a quiet title process.

You can't do that, an attorney has to do it and he has to sue everybody in sight.

So, if you get a treasurer's deed, a sheriff's deed, a quitclaim deed, just understand they

probably have disclaimers within those.

So, I'm Ted Thomas and I'm gonna do 2 questions and then we're gonna button it up.

So the question is what is a warranty deed?

A warranty deed is what's normally used for people to pass a property, transfer title

from one person to another.

So, let's use this as an example.

I want to sell you my property.

Normally, if the title is already cleared, I've owned it for a while, I can go ahead

and sell it to you.

Some title companies will say, "Do you want to give a warranty deed?"

In the old days, meaning, 100 years ago, the seller warranty that everything is okay.

Well, they don't do that anymore.

Nobody warranties anything.

That's why you have title insurance.

It's a warranty deed.

So the document is counted the misnomer.

So they still use warranty deeds, but there is no warranty taking place.

That's why you buy title insurance.

So, the question is is the homeowner or the property owner still there when you buy the

property at tax auction?

Depends upon the state.

Some states will move all the people out of the property and not even sell it for 6 months.

Other states, they'll do the auction and the people might still be there.

In all cases, I would say, it's not a problem.

What you just have to do is you hire an attorney and they'll do an eviction process which is

a process of giving them notice and then sheriff goes and says, "Look, get your butt out of here."

And so, that's what happens.

That's an eviction process.

That might take, the longest I've ever seen one is 60 days but that could be a complication.