Property Tax Sale - Any Lawyers Out There?

Ethan N · Jun 4, 2019

I’m hoping to buy a house at a tax resale auction. The house is in pretty bad shape. The plan is to make repairs and improvements and move the family in. This is my first experience with a tax resale, so I have a couple questions that maybe someone out there can give some advice on, or recommend a lawyer with good real estate experience.

Once I have the deed in hand, how do I actually take possession of the property lawfully and legally? The current owner stopped paying taxes a few years back when he went to prison for drug possession. He was released recently (possibly paroled?) and went by the house, but a neighbor talked to him and told me he isn’t interested in paying the taxes due so he can hold onto the property. He’s not living in the house and I believe he hasn’t been since 2015 (when he was incarcerated). The house was boarded up by the city at some point and it remains that way. So by all appearances, the property is abandoned. Once I have the deed, can I just go drill the lock? Or is there some legal process I need to follow to take possession?

Also, there’s a lot of personal property in the house (mattresses, stove, personal belongings, etc.). Can I just throw it all out or do I have to store it and try to give him a chance to take it (if I could even get in contact with him)?

Aries · Jun 4, 2019

I can't answer any of your questions, but that sounds like an ambitious project. Once you finish, maybe you could start your own reality TV show? There are a few of those on HGN....

We watched one that always started with the pretty young female "host" at Home Depot interviewing shoppers until she picked one to go home with and remodel their kitchen in three days. I told my wife, "I would bring her home to remodel our kitchen!" She replied, "You'd bring her home to remodel MY kitchen... you'd be staying at your mother's house for three days." LOL!

okietool · Jun 4, 2019

Ask the county sheriff.

CGS1 · Jun 4, 2019

I believe that if you purchase the property on taxes that the original owner has a certain amount of time that they can come back and pay the taxes and keep the property. What that time frame is im not sure.

Dangerousways · Jun 4, 2019

The county clerk/assessor office can answer some of your questions for free. Its there job. But can't give legal advice. You need to look up the statute /act on tax sales and read it. You might have to file an eviction after you get the property to remove/ people and stuff. And you might want to file a quiet title suit someday.

swampratt · Jun 4, 2019

June tax sale every year sells properties that are 4 years back on taxes. Once the paper work is completed the house is yours and all the content and stuff on property is yours.
I have purchased some on the June tax sale deal and never had any issues.

But others are correct if people live there you must evict them legally.
That part sucks as they could just burn the house down and now you have clean up and an empty lot.

MacFromOK · Jun 4, 2019

CGS1 said:
I believe that if you purchase the property on taxes that the original owner has a certain amount of time that they can come back and pay the taxes and keep the property. What that time frame is im not sure.

This is my understanding as well.

So... you might want to wait out that time period before investing in improvements. Recovery past the initial purchase price may get kinda sketchy, and especially compensation for your labor when there's no receipt.

Not a lawyer, just my 2¢ ... :drunk2:

Neanderthal · Jun 4, 2019

Be sure to get title insurance.

Ethan N · Jun 4, 2019

Thanks for all the responses!

okietool said:
Ask the county sheriff.

I’m sure the sheriff is knowledgeable and deals with this kind of thing all the time, but I’ve been burned by the advice of law enforcement before to the tune of thousands of dollars in legal fees and more. I will ask the sheriff’s department, but won’t trust their advice alone.

CGS1 said:
I believe that if you purchase the property on taxes that the original owner has a certain amount of time that they can come back and pay the taxes and keep the property. What that time frame is im not sure.

It used to work that way, but the law was changed about 10 years ago so it’s a tax deed sale in Oklahoma now. There’s only a redemption period, as it’s called, for property owners with certain legal or medical disabilities. The treasurer’s office of the county this property is in said they’ll print a copy of the deed for me on the day of the auction.

Dangerousways said:
The county clerk/assessor office can answer some of your questions for free. Its there job. But can't give legal advice. You need to look up the statute /act on tax sales and read it. You might have to file an eviction after you get the property to remove/ people and stuff. And you might want to file a quiet title suit someday.

I asked the county treasurer (who holds the auction) about it, but they weren’t very helpful on these particular questions, which is why I’m here now. I’ve read Title 68 Article 31, but it doesn’t cover any of this. I do plan on a quiet title or title quieting service, but not a priority for now since I don’t plan on marketing the title anytime soon. This’ll be a rental after we build the house we actually want somewhere else.

swampratt said:
June tax sale every year sells properties that are 4 years back on taxes. Once the paper work is completed the house is yours and all the content and stuff on property is yours.
I have purchased some on the June tax sale deal and never had any issues.

But others are correct if people live there you must evict them legally.
That part sucks as they could just burn the house down and now you have clean up and an empty lot.

How have you gotten keys or otherwise gained access to the properties you’ve bought?

MacFromOK said:
This is my understanding as well.

So... you might want to wait out that time period before investing in improvements. Recovery past the initial purchase price may get kinda sketchy, and especially compensation for your labor when there's no receipt.

Not a lawyer, just my 2¢ ...

I agree. The statute of limitations for any interested party to challenge the tax deed is one year, so it will be only urgent repairs and basic sprucing the place up until the first year is up. But this property has no liens that I’ve found (other than for the city cleaning up a couple times a year, which is included in the auction), hasn’t had a mortgage in 15 years, the last sale was cash, and the current owner has expressed his disinterest in redeeming the property. It’s about as good as it gets in terms of the prospect of quiet title.

That’s also one of the reasons I have my eye on this property even though it’s going to be a lot of work – I don’t like the idea of evicting a little old lady or a family fallen on hard times. It has to be done sometimes, but I don’t personally want to be the one doing it.

Neanderthal said:
Be sure to get title insurance.

Definitely want insurance, but won’t be able to get it without quieting the title.

Aries · Jun 4, 2019

As far as the keys, I would want the locks changed immediately anyway, so seems to me the worst case is drill or break the locks, and have new ones to install. You could always have them re-keyed of course, if you don't have to break in so that would probably be better, but not by a lot.

Property Tax Sale - Any Lawyers Out There?

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