Question
How Can I Get a Clear Title On a Property Purchased With a Sheriff's Deed without warranty?
Certain Texas counties hold Sheriff's/Constables Sales on the courthouse steps to auction off properties that have been seized for unpaid back taxes; then they are placed in the Judgment Properties program where they will be offered to the public on a first come basis until such time as they are entered into the Resale Program. Once the County has Sheriff's/Constables Deeds on these properties and the redemption periods have expired (except on properties with Homestead and Ag Exemptions), "For Sale" signs are placed on the properties. Opening and closing dates for the Resale will be advertised in local papers and bids will be accepted for a 30 day period. Property is sold "AS IS AND WHERE IS" with no warranties. Sign placement does not guarantee property location. Title insurance is the responsibility of the purchaser. Since the purchaser will have deed without warranty, a policy of title insurance may be difficult if not impossible to obtain.Purchasers will receive a deed without warranty from the taxing jurisdictions as trustees. Here is the attraction... I can get lake lots for $300-$1500 in back taxes... far less than their value. I would like to purchase them, clear them off and sit on them until the econmy turns around.
5 months ago - 3 answers
Best Answer
Chosen by Asker
client planning to purchase a property at sheriff’s sale needs to be very careful with regard to title. Just because the sheriff’s sale is part of the foreclosure process that involves a court and the sheriff, that does not mean that the title is necessarily clear. When the lender that started the foreclosure filed its pleadings in court, the lender may have done a good job of checking title and making sure that everyone who had any liens against was named in the foreclosure complaint. All parties named will generally have their liens removed from title when the court confirms the sheriff’s sale and the sheriff’s deed is given. However, many lenders today have their foreclosures handled by asset managers who may at times try to cut corners and not order a full judicial foreclosure commitment from the title company. Consequently, they miss some of the liens against the property. The sheriff’s deed itself is not a warranty deed. Instead, it is similar to a quitclaim deed. The sheriff’s deed passes the former owner’s title after barring all parties named in the foreclosure action holding liens and encumbrances on the property and barring any parties filing any liens after the lis pendens is filed with the register of deeds. The agent needs to be particularly cautious about giving advice on the legalities of foreclosure sales. The client, accordingly, should be directed to meet with an attorney to review title and the litigation documents to determine if there are any liens that were not extinguished by the foreclosure. The client should also be comfortable with the price he or she plans to bid. An appraiser should be consulted if there are any concerns or issues concerning property value.
by Shame
5 months ago
Asker's Rating: 
Other Answers
You need to do your research before hand and make sure there aren't any surprises on title. Buying properties like this adds an element of risk.
by goldshire1- 5 months ago
You can't get a clear title without a warranty. Title insurance firms are not interested in placing insurance on such forms of deeds. As well, there may be outstanding mortgages and other liens against such properties. Buying these properties is not a game for a novice.
by acermill- 5 months ago