Clearing title after tax sale in Louisiana

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Clearing title after tax sale in Louisiana

Jordan Clayson
Baton Rouge, LA · Member since 2019 · 6 posts · 1 vote

My mom owns 50% of my grandfather's estate.   The other 50% was inherited by my mom's step-nephew after my mom's brother passed away.  My mom's step nephew stopped paying the taxes and his 50% was sold to me at a tax sale.  I was told by the clerk in the courthouse to pay taxes on it for five year and that portion of the property would be mine.  

My mom and I both want to sell the property.   We were concerned with clearing the title on the 50% that I acquired through the tax sale. We spoke to two different real estate attorneys.  One stated that the easiest way would be to get a straw buyer.  The other said that we needed to quiet the title.  He stated that quieting the title can be expensive and he would need a $5,000 retainer just to get started, and that it could take months and potentially cost much more than that.  The property is in rural Louisiana only worth about $60,000.

We do not know where the step nephew lives or how to contact him.  Last we heard was that he moved to Texas.  This makes a straw buyer or quieting the title more complicated.  What options do I really have?  Ideally I would want the title cleared without costing an arm and a leg.

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Robert Leonard
Investor · Lafayette/Baton Rouge, LA · Member since 2013 · 1k+ posts · 915 votes
7y

Locating the owner is your absolute best option. Then you are no longer quieting title. He now owes you for the back taxes and interest earned. You need him to obtain a clear title. You can do the legwork of finding him, but complete the process through the attorney. With the owner's involvement and cooperation, it allows you to avoid the whole tax title issue.  The guy who can really tell you how this works is @Chance Delome

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  • Robert Leonard
    Investor · Lafayette/Baton Rouge, LA · Member since 2013 · 1k+ posts · 915 votes
    7y

    Quieting the title is the process you are required to go through to obtain a clear title. Without it, you have no clear title.  There’s no easy way around it.

    If only it was as simple as just paying the taxes for five years.  The clock only starts on that 5 year period IF the owner was in fact notified of the tax sale.

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  • Greg Tunes
    Wholesaler · Metairie, LA · Member since 2015 · 21 posts · 0 votes
    7y

    @Jordan Clayson since you cannot locate the other owner, you’re going to have to go the Quiet Title route.

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  • Jordan Clayson
    OP
    Baton Rouge, LA · Member since 2019 · 6 posts · 1 vote
    7y
    Originally posted by @Robert Leonard:

    Quieting the title is the process you are required to go through to obtain a clear title. Without it, you have no clear title.  There’s no easy way around it.

    If only it was as simple as just paying the taxes for five years.  The clock only starts on that 5 year period IF the owner was in fact notified of the tax sale.

    Quieting the title is what I will have to do.  He was paying taxes for the first few years, but stopped after he was divorced and relocated to Texas.  The courthouse attempted to contact him several times by both mail and telephone.  After not being able to reach him they called my mother to inform her that the other half of the property was going up for tax sale.  This is a small town.

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  • Robert Leonard
    Investor · Lafayette/Baton Rouge, LA · Member since 2013 · 1k+ posts · 915 votes
    7y

    Locating the owner is your absolute best option. Then you are no longer quieting title. He now owes you for the back taxes and interest earned. You need him to obtain a clear title. You can do the legwork of finding him, but complete the process through the attorney. With the owner's involvement and cooperation, it allows you to avoid the whole tax title issue.  The guy who can really tell you how this works is @Chance Delome

    1Reply
  • Reuben Gathright
    Investor · Lake Charles, LA · Member since 2015 · 70 posts · 48 votes
    7y

    @Jordan Clayson In these Louisiana tax deed cases, I locate the former owner and have them sign a relinquishment (created by your attorney) with a notary and two witnesses.  Locating the owner is somewhat easy using the power of Facebook and websites like InstantCheckmate.com to get their current city.  After you have found them, be willing to drive to their town and get a notary in the area who will help you with the document signatures.  I will often pay a signing fee to the person to convince them to do it.  Everyone wants a quick dollar and $500 in cash gets most people to sign.

    Now, with that relinquishment from the former named owner, your attorney can contact his title insurance company and get you title insurance on the property.

    BEFORE YOU START:  Ask an attorney if your mother get title insurance on her 50% share of the property?     Have the attorney do a title search and ensure the title company approves before you try to clear up your 50%.  In my part of Louisiana my most advanced title search cost me $600.  

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  • Will Sifert
    Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes
    5y
    Originally posted by @Jordan Clayson:
    Originally posted by @Robert Leonard:

    Quieting the title is the process you are required to go through to obtain a clear title. Without it, you have no clear title.  There’s no easy way around it.

    If only it was as simple as just paying the taxes for five years.  The clock only starts on that 5 year period IF the owner was in fact notified of the tax sale.

    Quieting the title is what I will have to do.  He was paying taxes for the first few years, but stopped after he was divorced and relocated to Texas.  The courthouse attempted to contact him several times by both mail and telephone.  After not being able to reach him they called my mother to inform her that the other half of the property was going up for tax sale.  This is a small town.

    A lot of the costs is actually court cost. There is the cost to file the quiet title suit and if they can't find and serve notice to the guy, they will need to appoint a curator to try to find and represent his interest in the suit. The curator alone will cost $500. So the attorney has his work to put the suit together plus the court costs and you can see how it can add up.

    You said it's worth about 60K, so your 50% would be worth 30K.  That is still a great deal for you to see through even if it cost you a couple thousand in legal work and you have to wait a few years.  If you were all in for less than 10K (quiet title suit and paying the property taxes) that is still a good return on your investment.

    If you can contact him, offer him $$$ to quit claim his 50% interest to you or your mother.

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  • Will Sifert
    Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes
    5y
    Originally posted by @Reuben Gathright:

    @Jordan Clayson In these Louisiana tax deed cases, I locate the former owner and have them sign a relinquishment (created by your attorney) with a notary and two witnesses.  Locating the owner is somewhat easy using the power of Facebook and websites like InstantCheckmate.com to get their current city.  After you have found them, be willing to drive to their town and get a notary in the area who will help you with the document signatures.  I will often pay a signing fee to the person to convince them to do it.  Everyone wants a quick dollar and $500 in cash gets most people to sign.

    Now, with that relinquishment from the former named owner, your attorney can contact his title insurance company and get you title insurance on the property.

    BEFORE YOU START:  Ask an attorney if your mother get title insurance on her 50% share of the property?     Have the attorney do a title search and ensure the title company approves before you try to clear up your 50%.  In my part of Louisiana my most advanced title search cost me $600.  

    I am not familiar with the term relinquishment,  just "quit claim". Is it the same thing or you referring to something else? Thanks

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