Selling a Tax Deed Property in Upstate New York

[Don McAlpine]

Does anyone here have experience clearing a title after a tax sale in upstate New York and subsequently selling the property to a retail buyer?  The property is located north of Albany, NY.

I purchased a property at a tax sale, received a quitclaim deed from the county, and have been marketing it to investors.  I received an offer that is substantially higher than my asking price from a retail buyer, but the buyer would have a mortgage and need a warranty deed.

My attorney reviewed the title search and the county's notifications to lienholders and doesn't see any issues. I asked my attorney about a quiet title action, but he is concerned that the title couldn't be cleared because the previous owner has two full years from the date the county foreclosed to challenge the sale, and it's not possible to quiet the title until the two years have elapsed because they legally have that amount of time, ie. you can't bar their claim while time remains.  The title company says it would need a satisfactory quiet title action and a couple of other factors that would be part of the QTA.

I certainly can't be the first person to attempt to clear a title in New York and would love to get input from someone who has done so.

Thanks in advance...

[Bruce Lynn]

You might check a couple of things. Was the previous owner a LLC? If so is the LLC still in existence? If not maybe they can't challenge the sale?

Is the former owner still alive, any probate, any heirs? If none and you can prove it to title, maybe they will issue before the two years.