Creative Purchase Idea Prior to Tax Deed Sale

[Ori Skloot]

Hey folks,

I'm looking at a tax deed sale in CA.  There is one particular property I would like to buy before the auction.  Here is the rub:

Property is held in title by a Partnership: Johnson and Cooper Properties

One partner, Johnson is prepared to sell.  The other partner, Cooper, is deceased and his estate has not been probated yet.  Coopers' heirs, two children, are also prepared to sell.

There is a partnership agreement, but it states that upon the death of a partner his share shall go to his estate.   Title company won't offer title insurance without a partnership agreement naming the people specifically who would inherit, or with the estate going through probate.  Of course there's no time for that.

The only other option I can think of is sign a purchase agreement, have title transferred to me using quit claim from all the parties, pay off the tax lien portion, then wait for them to do probate of the estate.  Once probate is finished and it confirms the heirs, I get full title somehow (not sure how this works) and pay the balance of the purchase price.   I'm sure this is fraught with issues and I don't even know if it works.  Help!!  Any better ways to structure this?

Thanks so much in advance. 

[Ned Carey]

@Ori Skloot here are a couple of ideas that you will have to confirm with others if they will work in CA. 

Once and estate is opened, the estate can sell the property, The estate does not need to be settled completely before any property sale happens.

In many states the amount bid over and above the amount of the taxes is called an "overage" or "Surplus" and is due to the previous owner. If you got a quit claim deed and assignment of rights before the auction, you could bid as high as you want at the tax auction then claim the Overage yourself. 

Both of these strategies have risk so get good advice from an attorney as to the pitfalls and likely hood of success. Generally when all parties are in agreement about a deal then it simply becomes a matter of how to structure or paper up the deal.