Purchasing tax-distressed properties can be a fantastic way to pad your portfolio. You can fix up the home and resell it, rent it out, or simply move into it yourself. Savvy investors like to buy properties at auction because they provide an excellent passive income stream.
If you’re thinking about buying a home at auction, you could benefit from our tax sale services in Delaware. We also offer title review services for peace of mind before you buy.
Protect Your Investment With Our Tax Sale Services
Taxes, liens, deeds, and titles: there’s a lot to consider before buying a financially distressed property. Here’s what you need to know.
What Is a Tax Sale?
In Delaware, all owners of real property must pay property taxes to the government. Cities use these taxes to pay for parks, schools, road upkeep, and public services.
If a property owner fails to pay these taxes, the government charges interest and issues a notice that the taxes are due. If the owner still can’t pay, the tax authority sells the home to the highest bidder at a public auction to recoup
Tax Lien vs. Tax Deed States
Some states allow tax deed sales, while others are tax lien states. A few use a hybrid-style model. What about Delaware?
Delaware is a tax deed state. That means if you buy a property at auction, you purchase the entire property, along with unpaid taxes, at a public auction.
The property owner has a “right of redemption” period after the auction that is either 60 days or one year, depending on how Delaware collected the property taxes. If the owner repays you what they paid for the home, they can keep the property.
In a tax lien state, on the other hand, you would buy the property at auction by purchasing the liens on the home. You can then demand payment of the liens, and if the buyer still doesn’t pay, you have the right to foreclose the property.
Why Do You Need Tax Sale Services in Delaware?
You need title insurance for any home purchase, but it’s especially important for homes bought at auction. Without tax sale title insurance, you could run into problems if someone tries to make a legal claim against the property after you take ownership.
Title insurance protects you from financial loss due to claims against the property, up to the amount of your policy. The insurance company will also cover legal costs if it has to defend your title against covered claims.
In short, title insurance protects you from problems that occurred before you took ownership of the title. It can safeguard against:
- Forged deeds
- Issues with people who have similar names
- Undisclosed heirs
- Unrecorded easements
- Unsatisfied prior mortgages
- Unpaid child support liens
- Title problems arising from a trust or bankruptcy estate
- Expired power of attorney
Perks of Choosing PureTitle
Why choose PureTitle to help with the tax sales process? For one thing, our pros understand the real estate market in Delaware, and we’re well-versed in the challenges associated with tax lien sales. When you work with us, we offer expert advice that won’t steer you wrong.
We make it easy to purchase title insurance for tax-distressed properties, and we’ll handle the entire process for you from start to finish. Plus, you won’t have to pay for people-search software to track interested parties, and we lower your costs further by removing the need for curators in quiet title auctions.
By choosing PureTitle, you’ll get:
- Guaranteed title insurance for your property
- A full list of persons and addresses for interested parties
- An insurable abstract that’s specific to Delaware
- Comprehensive Mennonite research, plus optional mail services for tracking and organizing your Mennonite notices
Learn More About Our Delaware Tax Sale Services
If you need tax sale insurance for a property purchased at auction, PureTitle has got you covered. Want to talk with us about our tax sale services in Delaware? Give us a call at (504) 300-0520. Learn more today.
