Unclear title to property I have a contract on

[Keyoka Smith]

I have an offer on a house which was accepted and due to close next week. Today the law office emailed me to let me know that because the current seller acquired the property in a tax sale there is a "tax deed" on the property. It goes on to say that I cannot get title insurance on this type of deed because there is no "quiet title action" or "quit claim deed" from the defaulting taxpayer. So does that mean the defaulting taxpayer (or their next of kin) can come along later and try to assert their "rights". Also, they stated this situation with the title would make it hard to sell the property to someone using a lender (which was the plan at some point once I fixed it up). Have any of you ever had this situation? Is there ever a situation where you say so what let's go for it? Or should I jump ship while I can? I'm wondering if the defaulting taxpayer can be found and who would I get to find them?

[David Cruice]

@Keyoka Smith , I have a lot of experience acquiring properties through tax liens (which become deeds after the 12-month redemption period expires) in South Carolina (Beaufort and Horry counties).  Since you "are new to this", I would recommend that you walk away from this deal.  By purchasing this house, you are taking the seller's problem (unquieted title) and making it your own.  You will not be able to get title insurance on your property, won't be able to get a mortgage on it, and you won't be able to sell it to 90% of the buyers out there.