When selling a house bought on auction do you....?

[Jordan Archer]

Hey BP,

How's it going?

When selling a property bought off auction, is the most typical way of doing so through a quit-claim deed?

Does ANYONE sell a house they bought off auction using a warranty-deed?

Thanks,

Jordan

[Simon Asher]

@Jordan Archer

G'day Jordan. When you buy a property at a tax deed auction in Florida, you receive a Tax Deed (not a quit claim deed) from the county. The tax deed is seen as a 'cloudy title' so you need to clear the title before you can sell it as a marketable title (with a Warranty Deed & Title Insurance). So you have a couple of options. 1 get a lawyer to do what is called a Quiet Title Action Suit, and go through the process to clear the title. 2. Use a company like Tax Title Services or in Florida use a company called Clear To Sell, to do their analysis and provide a warranty deed and title insurance.

At the end of the day, you can re-sell your property acquired at a county auction using a quit claim deed, but this will significantly limit the potential buyers - as most people want a warranty deed.