Real Estate Investor · San Diego, CA · Member since 2012 · 18 posts · 1 vote
Say I buy a house at the California county tax auction (**********), I rehab it, and put on the market for re-sale, will I be able to give my buyer clear title?
I heard there is a time period I must wait after my tax auction purchase, before I can re-sale with clear title? Can I rent out this rehabbed house during this waiting time?
How long is this wait time? 1 year? 5 years? Does the wait time change if I am flipping a rehabbed house, or re-sale vacant lot?
Over the years I have learned so so so much from the community at BP, even when there were nay sayers all around me. I can't express enough how I am truly truly grateful.
Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
8y
From what I understand, title companies will not issue title insurance until 1 year has elapsed (because there is a 1 year statute of limitations for challenging the sale). After that 1 year, you should be ok to sell, but each title company may handle this differently so it's best to check with them. And nothing I know of prevents you from renting it out in the meantime.
Real Estate Investor · San Diego, CA · Member since 2012 · 18 posts · 1 vote
8y
Thank you for responding to my post, @Mr Gradowitz. The 1 year statute of limitation, I heard, is for Trustee Sale. Does it apply to county tax auction too?
Is the statute of limitation different for SFH, vs vacant land? I know of a fellow tax auction flipper, was flipping a vacant lot a year after he bought it. He tried many title companies, but he couldn't get any of them to issue title insurance for his buyer. How much time must laps before he can sell his lot with title insurance? I vaguely remember someone mentioned 5 years. Is that true?
San Diego, CA · Member since 2017 · 69 posts · 35 votes
8y
Tax sales have a one year wait period because the previous owner can file to have the sale rescinded within one year. I wouldn't bother unless it's an incredible deal.