Q & A | Can we insure a sale transaction where seller acquired title by a tax foreclosure deed?

Q: Can we insure a sale transaction where seller acquired title by a tax foreclosure deed?

A: Yes, FNTI will insure a subsequent sale by a purchaser who acquired title by tax foreclosure deed (Sheriff’s Deed) under the following conditions:

1. If notice of the suit to obtain a judgment on the tax lien was served by publication, four (4) years must pass from the date on which the tax deed was filed of record.
2. If notice of the suit to obtain a judgment on the tax lien was made by personal service to all owners of the property and the property was the homestead of the owners, two (2) years must pass from the date on which the tax deed was filed of record; or
3. If notice of the suit to obtain a judgment on the tax lien was made by personal service to all owners of the property and the property was not the homestead of the owners, one (1) year must pass from the date on which the tax deed was filed of record (proof of non-homestead status required).

As always, please contact underwriting counsel with any questions concerning sales of property acquired by tax deed.