Tax Certificate as strategy to control a property

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Tax Certificate as strategy to control a property

Shawn Hyde
Palmetto, FL · Member since 2015 · 7 posts · 0 votes

I have a situation that I have not run into before and I'm looking for some opinions.

I just purchased a 5 acre parcel, and during my due diligence I found a tiny slice of land-locked land along one edge of the property (40x100 land locked - in an area that requires 1 acre minimum to build).  The owner has no access whatsoever without forcing me or one the other adjacent property owners to provide an easement.  That possibility is precisely what I want to mitigate.

So, upon further research, I found a palatable amount of unpaid taxes -- and the county owned all of the certificates -- no one had bought them.  So, I bought the tax certificates as a first step.  The county doesn't have a good address for the owners and thus far I cannot find them.  I have not skip traced them yet, and I'm not sure I want to.  With some luck, they're in the wind and have abandoned this useless little parcel.

Questions:  If I own all the tax certificates that are sufficiently aged to force a sale, and I choose not to force a sale, is my only risk that the owner will come back into the picture?  Can the county force the sale without the tax certificate holder's consent (or at least notification)?  And as just a tax certificate holder, would I be notified of that sale or could it happen without my knowledge and I just get paid off?  (That would be a bummer).

So, the next thought is to force the sale.  My concern is that while it is unlikely anyone would bid against me on this parcel, it could happen.  And there's only one other person on earth I'd want to see owning this land -- and that's the other adjoining neighbor.  So, if someone shows up and bids, I might have to spend a bunch of money to buy this wasted slice of earth.

So... My thought is to either (a) hold on to the tax certificates that are old enough to force a sale, thereby giving me a lien and just pay the taxes going forward since it's just $50/yr.  or (b) force the sale of the property since I already own certificates that are old enough to get the property on the calendar.

The certificates are "low key".  The forced sale could stir a hornets nest that may have never been stirred.

What would you do?

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Steve Haight
Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
10y

@Shawn Hyde

Got it now Shawn only makes sense and have increased value of property doing just what you are doing. I still have had some good luck with using title attorneys to help me out on some of these issues as they are the ones that insure title and want to make property insurable.

Best I can do,

Good luck,

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    I wouldn't want to pay the taxes and never own it.  Unlikely from what you describe there would be any bidders if you sent it to sale.  Simplest would be to make a deal with the owner, as they have already written it off, as it is useless by itself.

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  • Shawn Hyde
    OP
    Palmetto, FL · Member since 2015 · 7 posts · 0 votes
    10y

    If I can find them!

    I'm only into this for $300.  And as tax certificates, worst case it's a low interest loan.

    It's assessed at $100 in the property appraiser web site!  So, paying the taxes is under $20/yr.  (The $50/yr I mentioned in my original post included fees, interest, and other items that occur when you let your taxes go delinquent).  I just fear it's one of those parcels a bottom feeder might buy to stir up trouble with the neighbors -- you know -- demand an easement and then go away for a ridiculous sale price on the parcel.  Unlikely scenario, but possible.

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  • Steve Haight
    Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
    10y

    @Shawn Hyde

    Feel for you on this one. Access being so important. How did you purchase the property in the first place, just like a handshake? Did you purchase the property and then do your due diligence? I am assuming the property is in your state? Do you use a title company? I always want to research before I take title. I have had success with using in house attorneys for free when I do business with the title company's. I have done business with FATCO for years and have used their in house attorneys and saved me thousands of dollars.What was the exit strategy or may need to change that idea or what you may want to do with the 5 acres in the first place? To many questions yet before I could determine anything more or less. I buy and sell lots of vacant land out in the desert and legal access can be a big issue. Hope you can resolve.

    Good Luck,

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  • Shawn Hyde
    OP
    Palmetto, FL · Member since 2015 · 7 posts · 0 votes
    10y

    Not sure if my state allows this, but in some states, I could put up a cheap fence and adjoin it to my property... pay the taxes for a few years... then file a quiet title suit claiming possession.  Not sure how expensive this approach would be and whether people have success in attempting this.

    I'm not trying to "steal" this property, but if the guy is dead or can't be found... ???

    Quiet Title suits aren't expensive if no one comes forward with a claim.

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  • Shawn Hyde
    OP
    Palmetto, FL · Member since 2015 · 7 posts · 0 votes
    10y
    Originally posted by @Steve Haight:

    @Shawn Hyde

    Feel for you on this one. Access being so important. How did you purchase the property in the first place, just like a handshake? Did you purchase the property and then do your due diligence? I am assuming the property is in your state? Do you use a title company? I always want to research before I take title. I have had success with using in house attorneys for free when I do business with the title company's. I have done business with FATCO for years and have used their in house attorneys and saved me thousands of dollars.What was the exit strategy or may need to change that idea or what you may want to do with the 5 acres in the first place? To many questions yet before I could determine anything more or less. I buy and sell lots of vacant land out in the desert and legal access can be a big issue. Hope you can resolve.

    Good Luck,

     You have completely misread my post.  Go back and try again.

    I don't own the land locked parcel.  The 5 acres I own is one of the adjoining parcels that could get embroiled in a lawsuit to provide an easement to the landlocked parcel if someone came along and wanted to stir trouble.  I want to buy or otherwise acquire the landlocked parcel to eliminate that possibility.  This has not been an issue in 50 years so far, so it's unlikely.  I just want to get my hands on that little slice and add it to my 5 acres.

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  • Steve Haight
    Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
    10y

    @Shawn Hyde

    Got it now Shawn only makes sense and have increased value of property doing just what you are doing. I still have had some good luck with using title attorneys to help me out on some of these issues as they are the ones that insure title and want to make property insurable.

    Best I can do,

    Good luck,

    1Reply
  • Roy Oliphant
    Rockwall, TX · Member since 2014 · 380 posts · 211 votes
    10y

    @Shawn Hyde

    I do not think the lien in FL will give you the right of possession but f you are worried re trouble makers, you might want to acquire any that are outstanding.  If nothing else, you make sure the property doesn't transfer without you being in the loop.  Once the lien matures, you can foreclose on it and obtain a deed. 

    Nice strategy to remove a potential easement worry.  And the property would surely be worth more added to your existing acres than it is now.

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