Title Insurance

**evergreenscout** · 08-06-2008, 09:51 PM

I am considering buying a small residential lot of undeveloped land and I was told that there is no title insurance available for the property for one year. What reason could there possibly be for this? Is it a legitimate condition for a property? I am new to this forum and would appreciate any responses. Thanks.

Additionally,
the property was sold to the current seller at a tax sale with a Sheriff's Deed.

**jamesww** · 08-07-2008, 02:03 AM

Originally Posted by evergreenscout

I am considering buying a small residential lot of undeveloped land and I was told that there is no title insurance available for the property for one year. What reason could there possibly be for this? Is it a legitimate condition for a property? I am new to this forum and would appreciate any responses. Thanks.

Additionally,
the property was sold to the current seller at a tax sale with a Sheriff's Deed.

It is most likely the case that the property sits in what is called a redemption state. In certain states the previous owner that was foreclosed on has up to one year to come forward with all funds that were owed on the home. If they do this then they can retake possession of the home. In cases of this sort the title companies usually do not like to offer title insurance.

**evergreenscout** · 08-07-2008, 08:48 AM

Thanks for the reply JamesWW, that helps me a lot.

**markbrian** · 08-07-2008, 09:17 AM

Some title insurance companies will not issue for a property with a tax sale in the title history.

**evergreenscout** · 08-07-2008, 09:23 AM

I looked up the previous owner of the property and it was the school district. Because I am purchasing from the purchaser of the tax sale, I am uncertain what payments I would be entitled to from a previous owner exercising their right of redemption (under Texas law). Could this be a fraud scheme?