What Happens If The Tax Deed Property Is Destroyed During The Redemption Period
I could think of 100s of scenarios where a property sold at a tax deed sale was destroyed (re: burning, tornado, demolish, etc…) during the redemption period. There is no way for me to know that the person/s able to redeem the property have appropriate insurance on the property or at that matter any insurance at all.
Also, could I be liable if there was an accident or injury on the property during the redemption period?
I know I am being paranoid but would rather be safe than sorry. Thanks for any and all information!
Thanks, Scott
generally you cannot be liable for accident or injury. However you do accept the risk of destruction of property. It is possible to purchase insurance against these things after you've purchased the tax certificates. Although not in title you do have what is known as an "Insurable interest".
Thank you so much for the willingness to share your knowledge!
The extent of your liabiliy will depend on the jurisdiction and the particular laws they have adopted. The general rule is that if you are entitled to possession of the property then you will also have liability.
So you could be liable for an accident on the property that occurs during the redemption period. In most cases if you are entitled to possess or occupy the property then you should consider getting some liability insurance.
It is also very important to check the state statutes and determine whether any of the insurance costs can be charged back to the delinquent taxpayer as 'waste prevention' costs.
Also go straight to the state statutes when you have a question. Then call some attorney's in the state who have some knowledge of tax sales ( usually they are quite rare...) and ask some questions. Eventually you will get the answers you seek.