Quit Claim Deed or Quiet Title or Wait in Pennsylvania

[Milan Obradovic]

I purchased two properties at a judicial sale last year and am in the process of figuring the best way to create a marketable title. Would anyone with experience buying tax sales recommend a Quite Claim Deed or a Quiet Title as the best way to move forward? I also found out that after ONE YEAR of ownership you are likely to get a clear title from an Insurance Company, is this true, and if so are either of the above required at all? Thank you

[David Krulac]

@Milan Obradovic  @Steve Babiak

I've only been buying Tax Sale properties since 1986 and have bought hundreds of Tax Sale properties, I've never found a title insurance company that would issue title insurance after 1 year.

The multiple title insurance companies in multiple counties have always required:

1.  Quiet Title Lawsuit, if uncontested and no additional problems maybe 4-6 months and $2,000.  On the high side we had one that was 9 years and cost $45,000.

2.  Quit Claim Deed, we've paid as little as $zero up to $150,000 to get a Quit Claim Deed

3.  Wait, the wait period in PA. (varies by state from 5 years to 30 years) is 21 years.

@Chris K. There is a provision in the Tax Claim Law where you are NOT compensated for improvements made, and I forget if its 2 or 3 years, unless the improvement is to save the property. like fix a roof leak.  It is one of the many risks of Tax Sales, that if you do work and then lose the property back to the original owner, then you lose the vale of your improvements. 

@Justin K.  We had a Quiet Title take 9 years and cost $45,000.  Tax Sales are the Wild West, buyer beware, no warranties, no home inspections, no do over.  you would not believe how many people buy at tax sale, then after the sale realize the problems and the property comes back on the tax sale list two years later.