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Updated almost 4 years ago,
Wholesale without quiet Title?
Hey Biggerpockets family, I've got a property under contract in Alabama at a price that works for me and my end buyers. After running the title search, the title company informed me that the seller does not own the title to the property, he only owns the deed because he acquired the property through a tax delinquent sale (Which he did not tell me). The owner has owned the deed for 6 years which makes him eligibly to get the title to the property now, but in order to get the title he has to go through the "Quiet Title process" which can take up to a year to complete and costs around $3,500 in lawyer fees. If I purchase the property myself I would only receive the tax deed and have to pay the taxes for an additional 3-4 year before I would be eligibly to start the quiet title process.
Should I try to assign the tax deed to an end buyer?
Should I tell the seller to start the quiet process himself, pay the $3,500 in lawyer fees on the front end for the seller out of my own pocket, and close on the property at the agreed upon price a year from now once quiet title is received?
Should I close on the property myself and receive the tax deed, continue to pay the taxes for 3-4 years, get the quit title in my name and then resell the property as a flip/wholetail?