If you are investing in real estate, you will always look for a way to bargain. The best place to save on costs is the tax deed auction. This is why many investors specialize in as well as in tax deeds and other strategies to acquire titles. In as much as the tax deed auction provides the perfect avenue to save money, it has one significant drawback, and that is because it comes with many issues. So what do you do if your tax deed purchase comes with title issues? The following solutions should give you a clear idea of how to go about that scenario:
Filing a quiet title action
As the new owner of a property, you might experience some title issues. If it happens, then you should register for the quiet title action lawsuit. Usually, it is a legal action that you take against all the other parties that have valid claims towards the same title. Once you have filed for the quiet title action, the potential claim holders that will be named in the suit are then issued with legal papers and allowed to give feedback. In most cases, quiet title actions are won since the court uses the right measures to make sure that nobody has a defense to rise.
Ensure the title of a tax deed property
Besides filing for a quiet title action, there is an alternate solution. It involves going an extra mile of getting insurance for the title so that you are wary of any issues that may arise in the future. This option is rare and many real estate attorneys prefer if investors do not know about it. This is because the amount of premium paid for this kind of cover is usually less than the legal fees and other court costs that are associated with the quiet title action. However, insuring the title can be a lifesaver when title issues arise.
Consider getting the advice of a counsel
In case of title issues, there are many considerations you ought to take as an investor besides the costs. Seeking counsel is a smart move, and it will give you more ideas on how to go about the whole situation. You can consider doing a cost-benefit analysis as well to make the right decision on what option best protects your interest. Seeking counsel is not a waste of time but will allow you to gather more information, some of which is invaluable and goes a long way in determining your fate.
As a real estate investor, you will come across situations like title issues which always occur. How well prepared you are, determines how successful you will be with dealing with the whole affair. The most important thing is to try as much as possible to make an informed business decision. Whenever you are going through title issues, every move you make determines how well your case will go. Remember you are not the only one with the title. Many others will try to justify their claim, so it is a matter of how best you handle the situation. It is worth noting that whenever you experience title issues, you can never do it by yourself and it is always a good idea to get in touch with a title services provider who has your interests at heart.