Deed Type and Title Search

[Ryan Smith]

I have a question and wanted to see if someone more knowledgable than myself can provide me with some advice.

I have found a property I am interested in purchasing. There are currently 4 years worth of taxes due on the land which total to around $2200. My plan is to offer to buy the property for the amount of tax owed on the property ($2200).

My question has to do with the correct way of handling this transaction when it comes to deeds. Should I have a title search done, have the seller sign a Quit Claim Deed and then pay the back taxes? OR Should I have the seller sign a Warranty Deed, pay the taxes and not worry about getting a title search done?

I want to ensure I am doing this transaction the correct way but I also don't want to spend extra money if it isn't necessary.

Any guidance you all can provide would be much appreciated.

[Mike F.]

First off, since you are located in Florida, I will assume you are buying a lot in Florida. In that case, before worrying about the title, you need to be sure that $2200 is a "deal" for that lot. For many vacant lots in Florida, especially ones with high back taxes, that would not be a great deal.
My experience with lots with four years of back taxes is that if the lot is worth more than the delinquent taxes owed, it probably (but not always) would have gotten scooped up at a tax sale.  Every scenario is different, so without more info on the lot it is hard to tell.

As far as a title search... if you plan on dealing with vacant lots regularly, you could learn how to do a basic title search yourself. If not, there is an online company in Florida called FastTitleSearch (I dont know if I am allowed to put a link here so I wont) that can do a basic search for $35. 

I personally do my own searches, but I buy lots constantly and resell them constantly. At some point I may miss something and have it come back to me, but I have saved so many thousands of dollars on title searches, I consider it "self insuring". 

I will only buy lots using a General Warranty Deed. I create the deed and get it signed and notarized by the sellers. When I resell, I use a General Warranty Deed as well. 

I do all of my own closings or, if the seller or buyer is out of the area, I use a mobile notary for about $50. Many people do not realize you do NOT need a title company or attorney to do a closing on vacant land. It is SIMPLE.

In my opinion (I am not a lawyer and this is not legal advice), when dealing with a low cost lot like this, there is no need for an attorney, Realtor, or title company. They are all just unnecessary drains on profit. 

This is how I operate in my business. I understand it is not for everyone. We all have our opinions.

One exception to everything I said above... If you know that the lot in question is worth MUCH MORE than you are paying.. $20k+, then I would go ahead with using a title company and paying the extra $$$.