Texas Tax Deed Questions

First off I am not an attorney, so do not ask me how to word any contracts for you. I will not do it. 

Why did I put my disclaimer first? Simple, the most common question I get about the tax deeds in the state of Texas is this. 

Can I sell the property before the end of the redemption period?

In the state of Texas, the answer is YES, with a subject to clause in you contract/deed. That is right, I said yes you can sell the property before the end of the redemption period. I am not an attorney so I will not write your contract for you, call an attorney. 

Now, the answer to the question that your thinking, PROVE IT!

 Texas tax code 34.05, covers the topic specifically for taxing units to resale the property in the event of no bid at the tax sale. And it has been argued in Texas courts, that what's good for the goose is good for the gander...meaning taxing units do not enjoy this option exclusively.

One pitfall is, the title is questioned, and until you quiet the title, you will not be able to obtain title insurance. This will make it next to impossible to have a bank finance the home for a buyer. Most title companies will not insure a title until the redemption period has ended, so you may need to do owner finance until the property can be refinanced.

Another question I get at work about property bought at the tax sale is not as investor friendly as the first. 

I bought a vacant lot at the tax sale. Can I build on the lot before the end of the redemption period.  The answer is yes you can, but if the property is redeemed, you just gave the prior owner a free building.

Here is the good news to this question. Depending on the city the lot is located, it may take you the entire redemption period just to get the permits to build.