Quiet Title Action for Tax Deed
When is a Quiet Title Action needed? More people are purchasing tax deeds these days. They often find their title challenged. A Tax Deed is one of the lowest quality types of conveyance. Tax Deeds provide no guaranties and no warranties of title. The purchaser receives only the rights that the tax collector had under Florida Law. Those rights can be substantial, but only if matured or if properly “perfected.” First, you must realize that there are a number of steps the Tax Collector and Clerk must go through before holding a tax lien auction and issuing a tax deed to the successful bidder. If each one of these has not been rigorously complied with, the previous owner of record or any mortgage or lien holder can and will challenge the validity of the tax deed.
Even if no challenge has been raised, buyers of tax deeds will find it hard to sell or refinance property thus acquired. This is because title acquired in this way is regarded as suspect. You will not be able to sell, refinance or purchase title insurance until you put all the doubts to rest. It is always critical to obtain a first rate title examination and review it with the counsel of your choice.
Some possible courses of action:
- If, and only if, liens are not an issue, one way to clear your title is to locate the original owner and obtain a quitclaim deed directly from him. This may necessitate some payment, but in some instances can be well worthwhile. Sometimes Safe.
- Wait four to seven years while paying taxes and maintaining clear exclusive possession of the property, though this is not completely fail safe. http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0095/Sections/0095.192.html and http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0095/Sections/0095.12.html
- Wait 20 years (be sure to pay taxes each year). Safer
- Otherwise, the law provides a method for accomplishing this; known as a ‘quiet title action.’ This enables you to obtain a court judgment ‘quieting’ the title in your name, i.e. declaring you to be the true owner and extinguishing prior mortgages and most liens. Safest http://www.celiadeifik.com/Commercial-Litigation/Quiet-Title-or-Declaratory-Judgment-Actions.shtml
Whether buying tax certificates or tax deeds, it’s important to go into the world of ‘tax titles’ with your eyes wide open.
