Understanding every step of a real estate sale is crucial before completing a transaction. You don’t want to sign a check only to be blindsided by unexpected costs — such as tax liens.
A tax sale is the sale of a property that has gone to auction due to the original owner failing to pay property tax payments. Purchasing a property through a tax sale can be a lucrative venture, but you need expert tax sale services in Louisiana from a local expert to ensure a fast, smooth, predictable sale.
At PureTitle, our tax sale professionals provide the knowledge, tools, and resources you need to complete a successful tax sale. Call us today at (504) 300-0520 to discuss your needs and request a quote.
Understanding Louisiana Tax Sales
In a nutshell, a tax sale is the sale of real estate property after the owner has failed to pay their city or county property taxes. Eventually, the property will go up for auction, where real estate investors can purchase it. The new owner may need to pay the owed property taxes or take over the lien, attempting to collect the owed taxes from the original owner.
Every tax sale is different, and understanding the discrepancies and special considerations in your tax sale can help you make a more informed purchase decision.
What Is a Tax Sale in Louisiana?
When property owners fail to pay their city or county taxes on time, the local tax agency will begin sending them notice of their tax delinquency. The local tax office may eventually transfer the collection process to a tax collection agency. After a waiting period of a few months to a few years, the tax collection agency will trigger a tax sale.
At this time, the property owner will have the opportunity to pay off their delinquent property taxes in full and reclaim the property. If they cannot, a local government entity will have the right to seize the property and sell it at auction through a tax sale and use the proceeds to pay back the taxes. The tax sale price is usually a minimum of 80% of the fair market value of the property, minus any tax liens.
Tax sales come with a level of risk, as these properties often do not have clear titles. With our tax sale services in Louisiana, we can help protect you against this risk through comprehensive title research and tax sale insurance.
Types of Louisiana Tax Sales
There are two main types of tax sales in Louisiana: adjudication sales and tax lien sales.
A tax adjudication sale involves selling the entire property, along with any unpaid taxes, at public auction. The buyer would be responsible for future taxes and clearing any claims on the title. At the transfer of the deed for a tax adjudication sale, there are no more rights of redemption. Yet you need to be sure the prior interests were properly notified to transfer your property.
In contrast, a tax lien sale auctions off the lien on the property, not the house itself. If the property owner fails to pay the liens, the buyer could then go through the process of having the property foreclosed.
Our Tax Sale Services in Louisiana
At PureTitle, our tax sale experts help you confidently navigate the title insurance process, protecting your tax sale property.
Title insurance can protect you against claims on the tax sale title, but not every insurer will provide title insurance on tax sale properties. We’ll help you find peace of mind about your tax sale deed by:
- Completing a thorough title examination and identifying liens, code violations, existing tenants, and other potential issues
- Reviewing the title commitment to help you fully understand any issues
- Providing guaranteed title insurance for tax-distressed and foreclosed properties
PureTitle: Your Louisiana Tax Sale Experts
Go into a tax sale with confidence by enlisting our tax sale services in Louisiana. Contact PureTitle today at (504) 300-0520 to request your quote or learn more about tax adjudication insurance.
