Redemption Question
I realize that a large majority of tax liens are redeemed by the owner. However if circumstances prohibit that action from occuring, can I buy the redemption rights from the original property owner to a tax lien cert., after the county auction?
Would I then be able to redeem property for the delinquent amount?
[addsig]
Thank you loon for the insight
I am a newby and just trying to learn creative ways to gain control of property.
You mention a lien against the owner, not the property. Would these types of of liens be public and where would I find them recorded?
Thank you loon for the insight
I am a newby and just trying to learn creative ways to gain control of property.
You mention a lien against the owner, not the property. Would these types of of liens be public and where would I find them recorded?
Thanks All.
You may have not understood my reasoning (or lack there of?) I would not want to approach the owner as a cert holder. I would approach the property owner with the intent of gaing his right of redemption.
Would this then allow me to redeem the tax cert and therefore ownership of the property?
I am wondering if
dman--Regardless of the reason for contacting, as long as the redemption period is in play you CANNOT legally contact the property owner. Once the period expires then you may do so.
sonjar--I am familiar with the statutes as I own certs in both states. So far I have not had the need to foreclose.
Whoa, Willscarlet
Preaching as a man who knows!!! What other gems of insight can you share with the group? I want to follow your posts!!
Right of redemption of tax sale does not exist until after the sale, whether it is a certificate (sold) or a tax deed. Most states I have done business in, the law is that the purchaser that won it at auction CANNOT buy the redemptive right but it is still something of value the owner has and he can legally sell it to anyone except the person who bought it at auction. This is to prevent the lenders from setting up themselves to have the property without the individual getting a FAIR SHOT at redemption in an arms legth transaction.
In Kentucky you can buy the right of redemption if you are not the purchaser of the property at the auction..... A quit claim deed will release all rights you have in the property including the right of remption.
131.530 Right of redemption.
(1) Any person whose property has been levied upon shall have the right to pay the
amount due, together with the expense of the proceeding, to the commissioner or
his delegate at any time prior to the sale thereof and upon such payment the
commissioner or his delegate shall cause such property to be restored to him and all
further proceedings in connection with the levy on such property shall cease from
the time of such payment.
(2) The owner of any real property sold as provided in KRS 131.500(1), his heirs,
executors, or administrators, or any person having an interest therein, or a lien
thereon, or any person in his behalf, shall be permitted to redeem the real property
sold or any particular tract of such property, at any time within one hundred twenty
(120) days after the date of the sale. Such property or tract of property shall be
permitted to be redeemed only upon payment to the purchaser, or in case he cannot
be found in the county in which the property to be redeemed is situated, then to the
commissioner or his delegate, for the use of the purchaser, his heirs, or assigns, the
amount paid by such purchaser and interest thereon at the rate of twenty percent
(20%) per annum from the date of sale.
(3) In the case of property sold pursuant to KRS 131.500(1), the commissioner or his
delegate shall give to the purchaser a certificate of sale upon payment in full of the
purchase price. The certificate shall set forth a description of the property
purchased, for whose taxes the property was sold, and the price paid therefor.
(4) In all cases where property is sold pursuant to KRS 131.500(1), except real
property, the certificate of sale issued pursuant to subsection (3) of this section shall
have the following effect:
(a) Shall be prima facie evidence of the rights of the commissioner or his delegate
to make such sale, and of the regularity of the proceeding of the sale; and
(b) Shall transfer to the purchaser all right, title and interest of the taxpayer in and
to the property sold; and
(c) If such property consists of stock, shall be notice, when received, to any
corporation, company, or association of such transfer, and shall be authority to
such corporation, company, or association to record the transfer on its books
and records in the same manner as if the stocks were transferred or assigned
by the party holding the same, in lieu of any prior certificate, which shall be
void, whether canceled or not; and
(d) If the subject of sale is securities or other evidences of debt, shall be a good
and valid receipt to the person holding the same, as against any person holding
or claiming to hold possession of such securities or other evidences of debt;
and
(e) If such property consists of a motor vehicle, shall be notice, when received by
any public official charged with the registration of title to motor vehicles, of
such transfer and shall be authority to such official to record the transfer on
his books and records in the same manner as if title to such motor vehicle
were transferred or assigned by the party holding the same, in lieu of any
original or prior title, which shall be void, whether canceled or not.
(5) In the case of any real property sold pursuant to KRS 131.500(1) and not redeemed
in the manner and within the time provided in subsection (2) of this section, the
commissioner or his delegate shall execute in accordance with the laws of the
Commonwealth, to the purchaser of such real property upon surrender of the
certificate of sale, a deed to the real property so purchased by him, reciting the facts
set forth in the certificate. The deed executed pursuant to this subsection shall have
the following effect:
(a) Shall be prima facie evidence of the rights of the commissioner or his delegate
to make such sale, and of the regularity of the proceedings of the sale; and
(b) If the proceedings of the commissioner or his delegate have been substantially
in accordance with the provisions of KRS 131.500, such deed shall be
considered and operate as a conveyance of all right, title and interest the
taxpayer has in and to the real property thus sold at the time the lien of the
Commonwealth attached thereto.
(6) A certificate of sale of personal property given or a deed to real property executed
pursuant to this section shall discharge such property from all liens, encumbrances,
and titles over which the lien of the Commonwealth, with respect to which the levy
was made, had priority.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 144, effective June 20, 2005. -- Amended
1982 Ky. Acts ch. 238, sec. 3, effective July 15, 1982. -- Created 1980 Ky. Acts
ch. 262, sec. 4, effective July 15, 1980.[ Edited by getitqwik on Date 11/08/2005 ]
I believe Oklahoma recently changed to a tax deed state from a tax lien state.
To 4my3kids(and any other people); To clarify original post, I am looking at this as an amrs length transaction. I have no iterest in the TLC investor. And no relationship in the debtor.
My question is in this case does the property owner have a legal right to transfer his property and therefore, his redemption rights, to a 3rd party?
Your question HAS been answered you just fail to see it. What state are you referring to?
Missouri is like this:
http://www.moga.mo.gov/STATUTES/C140.HTM
Transfer of the property of the recorded deed cannot proceed until delinquit taxes are paid. It is not that a owner can sell the property it is CAN HE GET IT RECORDED. Owing back taxes does not give you a bar from selling property. An owner can give up his "bundle of rights" with a quitclaim deed. That does not make the taxes go away. You would have to pay the taxes. As far as if someone else owns the certificate, they also can sale with the same....taxes have to be paid. WHO ARE YOU actually trying to buy the property from? The owner? or an investor of the certificate?
Missouri Revised Statutes
Chapter 140
Collection of Delinquent Taxes Generally
Section 140.320
August 28, 2005
Payment of taxes by purchaser--forfeiture.
140.320. Any purchaser at delinquent tax sale of any tract or lot of land, his heirs or assigns, who takes possession of any tract or lot of land within the redemption period shall be required to pay the taxes subsequently assessed on such tract or lot of land during the period of occupancy and within the redemption period, and upon failure so to do, or if he commit waste thereon, such purchaser, his heirs or assigns, shall forfeit all rights acquired by his certificate of purchase, so far as the tract or lot of land taken possession of is concerned.
(RSMo 1939 § 11136) [ Edited by getitqwik on Date 12/10/2005 ]
If you own it you can redeem it. Or if you have an interest in it (e.g. hold a mortgage paper) you can also redeem it.