Purchasing a property obtained through a tax sale deal or no deal

[Nataki Burke]

im a newbie investor in Atlanta Ga. I have my first possible deal on the table for a property that was purchased at a tax sale. The seller contacted me and told me that they bought the property last year and just completed the redemption period.  They were currently in the process of obtaining a clear title when they received my inquiry to buy. 2 options were put out to either take it over as is...with quit claim deed and I complete the work to obtain clear title or at 2k increase in purchase price they do the work to deliver clear title. As I am unfamiliar with tax sales and this process.  I opt for the later deal. However in reading a few blogs it seems as though obtaining a clear tilte is a lenghty process. Ive read that its a 4 year waiting period prior to obtaing title. Also read 6 months. What exactly are the steps needed to obtain clear tilte after tax sale and what is typical time frame. Also is the extra 2k added to purchase warranted for this process (are the title search are process fees this much? ) Would it be wort obtaining myself with instruction?

[John Underwood]

$2000 for a general warranty deed vs a Quit Claim Deed is a bargain.

Get under contract with the agreed upon price contingent on clear title.

Doing a Quiet Title can easily cost double this price.

If you were to buy it with a Quit Claim Deed then I would,'t pay more than 50% of the FMV because you are buying the property with a cloud on the Title. You are assuming some risk that the Tax Deed could be overturned and you loose the property if the county did not do everything 100% correctly.

I own many houses that have tax deeds and this does not scare me because I understand them, but I would at least do a title search and make sure the county notified all owners of record and any mortgage holders.

There should still be a steep discount on any property bought that has a Tax Deed.

Like I said $2000 would be money well spent for a clear title. This could take close to a year or longer if they were just now initiating the process. Maybe they started many months back and are close to finishing the process. I would ask them what the expected time frame is for them to receive clear title.