Questions From a Reader

I recently received the following questions from a reader:

“I read article regarding the case where the tax investor was asking for payments for insurance and preservation but courts denied. I also read case regarding void tax deed. My question to you is how as investors do we verify that owners have been properly notified so that deeds will not be void? Any clarification in this would be very helpful. Regarding the insurance are most investors purchasing home or renters insurance on the property? “

I think you are asking how can you know that the county has given sufficient notice of tax sale to the owner so that the tax deed will not eventually be declared invalid.  Answer:  I don’t know of any way to know for sure but I have two thoughts:

(1) Once you the investor get the tax deed, you can verify owners by having a title search done and then notifying all parties on the record of title via certified mail, return receipt requested.  This should force something to happen pretty fast IF there is a problem with the validity of the sale.

(2)  There is some degree of responsibility on the State and the County to accurately advertise and properly sell the tax certificate.  If the amount of monetary damage incurred as the result of an invalid sale/tax deed is significant, you can always consider litigation against the appropriate governmental office.

Regarding  insurance–my observation has been that once a tax deed is acquired, at least some insurance companies will issue a “tenant-fire” insurance policy for a nominal premium with a moderate deductible.