Title Insurance At The Auction
Hello all,
I'm looking to bid on a property at an auction coming up, and had a really quick question. If I'm the successful bidder, does the property become mine even though the owner has a redemption period? Also, if the property is not mine, can liens still be recorded after the sale but before the redemption is up? If this is true, will buying title insurnace at the sale prevent this?
Thanks in advance,
Junoti
If the owner has a redemption period the property is not yours yet. Basically it sounds like you have a lien
Check with a title company. I suspect you will find that you can not get a policy until you are past the redemption period or you have the individuals with redemption rights sign over their rights.
As to it being your property. Real property is a bundle of rights. Right to enjoy, to mine, to develop, etc. Some of the rights have restrictions and some of the rights you never purchased (if the land comes with an utility easement already attached you did not buy the place with unrestricted use as the utility company can dig it up, etc). The right of redemption is another example.
It is my understanding (but check with a lawyer if you really care) that you own the property. You have more then a lien. You do not have absolute ownership in that some of your rights are restricted. The redemption right is an example. That will expire or it will be exercised. Much like an option.
As the owner, the prior owner's situation should not cause any liens to appear on what is now your property. Mechanics liens in some states can be placed on a property after the fact (up to 45 or 90 days). Most other liens are based on date order and your purchase will be recorded prior so you have priority.
The above is general advice and more conceptual. You need to verify the type of instrument that was used to transfer title to you. A lawyer can offer real advice. A title company can imply what is going on in that they can tell you when they will offer title insurance and any restrictions.
John
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