Quiet Title

On occasion, we are asked to close a transaction in which the seller purchased the real property at a tax sale and, therefore, holds only a “tax deed.”  A tax deed is issued by the Horry County Delinquent Tax Office roughly 1-year after the tax sale (unless the property is redeemed) to the high bidder at the tax sale.  Significantly, a tax deed does not come with a warranty of any kind. Therefore, in order to convey the property to a third-party for fair market value, the holder of the tax deed will probably have to quiet title.  A quiet title action (yes, we handle them) is an action to bar the claims of all parties who may otherwise have an interest in the property.  The cost of a quiet title action will vary depending on the number of parties required to be named and depending, as well, upon the need to appoint a guardian ad litem on behalf of any particular interested persons.  In any event, if you purchase property at a tax sale, it would be wise to factor in the cost of a quiet title action because it will, as said, be necessary in order to sell the property for fair market value.  Similarly, only a quieted title can be mortgaged to a bank (a bank will not accept a mortgage on a mere tax deed) and/or gain issuance of title insurance.

If you hold a tax deed or are thinking of bidding at the next tax sale, feel free to contact us about quiet title actions.

More Posts

Early Occupancy

Oftentimes, a buyer will ask a seller’s permission to occupy the home prior to the closing   When an “early occupancy”

Deeds

In South Carolina, there are three (3) types of deeds.  Each type fully conveys the interest of the grantor (Seller);

Buyer Breach of Contract

What happens when a buyer breaches the contract?     It is worth noting it is not always clear whether or

Scroll to Top