Can I get title insurance on a tax deed property right after the sale?

Usually not immediately. Most title insurers require a quiet title action first, which can take 3–9 months depending on the state and court backlog. In Florida, you can sometimes get a title commitment faster if the deed chain is clean, but expect at least 30–60 days. Budget for the quiet title cost — typically $1,500–$3,500 in attorney fees — before you factor in your profit.

What happens if someone is living in the property when I buy it at a tax deed sale?

You inherit the occupant situation. If the prior owner or a tenant is inside, you'll need to go through the formal eviction process — you can't change the locks the day after the sale. In states like New York or New Jersey, that process can run 6–18 months. In Georgia or Texas, it's faster, often 30–60 days, but still not immediate. Factor eviction time and carrying costs into your maximum bid.

How do I find out if there's an IRS lien on a tax deed property?

Search the county recorder's index under the prior owner's name for any federal tax lien notices (Form 668Y). Also search the IRS online lien database at irs.gov. If a lien exists, contact the IRS Centralized Lien Operation to confirm whether they received proper 25-day pre-sale notice from the county. If they didn't, the IRS 120-day post-sale redemption right is still live.

Is it worth buying a tax deed property I can't drive to or inspect?

Rarely, unless you're buying at a steep enough discount to absorb an unknown condition. Properties you can't physically verify should be underwritten at a higher risk discount — assume structural issues, assume it needs a full rehab, and cap your bid at 50–55% of a conservative ARV instead of 65–70%. For remote markets, hire a local property scout or inspector to do a drive-by report for $75–$150.

Do I have to pay the prior owner's back taxes at closing, or are those wiped out by the sale?

The delinquent taxes that triggered the sale are satisfied by the auction proceeds — that's the whole point of the mechanism. You don't pay them separately. What you do owe going forward are any new taxes that accrue after the sale date, and potentially any current-year taxes that were already assessed but not yet delinquent at the time of the auction.

How to Research a Tax Deed Property Before You Bid

Researching a tax deed property means pulling the deed chain, checking for surviving liens, estimating repair costs, and running comps — all before the auction opens. Most bidders skip at least two of those steps. That's why you see the same investors buying at 60 cents on the dollar while others take losses on properties that looked cheap on paper.

Tax deed sales move fast. Florida counties post lists 30 days out; Georgia sometimes gives you less than two weeks. You need a repeatable checklist, not a general idea of what to look for.

Start With the Parcel Number, Not the Address

Every county assessor database ties everything — ownership history, tax records, legal description — to the parcel number (APN). Pull that first. Addresses get reused. Parcel numbers don't. Search the county assessor site directly, not a third-party aggregator, because aggregators lag by weeks and sometimes show the wrong owner.

Verify the legal description matches what's on the tax deed notice. A mismatch between the notice and the recorded plat has killed closings before.

Pull a Full Title Chain at the County Recorder

Tax deeds wipe out most junior liens, but they don't wipe out everything. IRS federal tax liens survive if the IRS wasn't properly notified — federal law requires the county to notify the IRS at least 25 days before the sale under 26 U.S.C. § 7425. If that notice wasn't sent, the IRS has 120 days post-sale to redeem. That's a real risk, not a theoretical one.

HOA liens are another problem. In states like Florida and Nevada, HOA super-liens can survive a tax deed sale for up to 12 months of unpaid assessments. On a condo with $500/month dues, that's $6,000 you didn't budget for.

Go to the recorder's office yourself or use a title plant service. Run the chain back at least 40 years to catch any defects. If you're buying regularly in one county, a $300–$500 relationship with a local title abstractor pays for itself on the first deal.

Check for Code Violations and Municipal Liens

Code enforcement liens often don't show up in the recorder index because they're filed with the city or county code department, not recorded as traditional liens. Call the code enforcement office directly. Ask for an open violation history by parcel number.

In Miami-Dade County, for example, code liens can run into six figures on neglected properties — $250/day fines that compounded for years. A property with $180,000 in code liens and a $50,000 auction estimate isn't a deal. It's a trap.

Also check with the utility provider for any municipal water or sewer assessments. Those can attach to the property and survive the sale.

Warning: Many investors assume a tax deed clears all encumbrances and skip lien research entirely. It doesn't. Environmental liens under CERCLA, IRS liens with improper notice, and certain HOA super-liens can all survive the tax deed process — leaving you responsible for debt you didn't create. Confirm with a local real estate attorney which liens survive in your target state before you bid.

Drive the Property — Don't Skip This

Satellite imagery is 12–18 months out of date. Google Street View might show a house that burned down eight months ago. Drive it.

You usually can't get inside a tax deed property before the auction. But standing at the curb tells you: Is the structure standing? Is there visible fire or water damage? Is it occupied? Occupied properties in states without fast eviction timelines — like New York, where eviction can take 12+ months — change the math entirely.

If you can't drive it, hire a local scout for $50–$100. That's a cheap insurance policy on a $30,000 bid.

Run Comps Like You're Going to List It Tomorrow

Pull sold comps within a half-mile, same property type, from the last 90 days. Use the MLS if you have access, or pull from the county recorder's recent deed recordings — those are public record and show actual sale prices, not list prices.

Don't use Zestimate as your ARV. Zillow's algorithm performs poorly in rural counties and markets with thin transaction volume. A house that Zillow values at $140,000 in a county with 30 sales per year might actually move at $105,000 because there are three buyers in that market.

Work backward from a conservative ARV. If the ARV is $150,000 and repairs are $40,000, your maximum bid at a 70% rule target is $65,000 — and that's before carrying costs, transfer taxes, and the time to clear title before you can refinance or sell.

For state-specific rules on what liens survive and how redemption periods work, the Florida tax deed investing guide at taxsaleninja.com breaks down the process county by county.

Confirm the Redemption Period Status

Not all tax deed states are the same. Some states — Georgia being the clearest example — sell tax deeds but give the prior owner a 12-month right of redemption. If you buy at a Georgia tax deed sale, you don't own the property free and clear until that window closes. You can't get title insurance, and most lenders won't finance it.

Other states, like Texas, sell redeemable tax deeds with a 6-month redemption period on non-homestead properties and 2 years on homestead and agricultural land. Know which category your property falls into before you bid.

Confirm the redemption period with the county clerk the week of the sale — not from a blog post. Periods can be extended by bankruptcy filings, and courts occasionally issue stays that delay the quiet title clock.