This is the last article in our series on Oklahoma tax sale properties and ancillary issues.  The previous post discussed the risks and realities inherent in a tax sale.  In this post, we will summarize some of the essential takeaways throughout the series.

In Oklahoma, if property taxes remain delinquent for 3 or more years, then the County Treasurer can sell that property at a public auction (tax sales or tax resale) to collect the balance.  These properties are sold to the highest bidder.  Sales are held every second Monday of June, each year in each county.

Tax sales are buyer-beware sales.  The title isn’t warrantied by the County, potentially being riddled with claims and liens, and therefore rendered unmarketable.  To address these issues, you must retain a knowledgeable quiet title attorney who can help you navigate the quiet title suit.  A successful quiet title action extinguishes any remaining rights or claims that the original owner may have had to the property.  Making the title marketable and insurable.  If you recently purchased a property at a tax sale (also called tax resale, or tax auction) and seek to quit title, contact us today.

Some of the topics we discussed throughout the series include:

An Oklahoma tax sale, also called tax resale or tax auction is a yearly auction put up by a County Treasurer in each county.  Properties that remain delinquent for 3 or more years end up on this list.  The original owner may be able to regain the property before the sale by paying the taxes and fees.  If not, then the highest bidder may purchase the property by paying either two-thirds of the assessed value or the tax balance, whichever is lesser.  The buyer is then given a tax deed that they can record with the county.  They are now the new record owner.

Although the buyer is the record owner, a tax deed is considered unmarketable and uninsurable.  Buyers may have a hard time selling it, unable to get the full market price or obtain a title insurance policy.  The reasons lie in the fact that the property may contain lingering claims or liens from the previous owner or other claimants.  For instance, the sale process may be defective or the notice to previous owners improper.  This is precisely where a quiet title action comes in.  A successful action extinguishes any liens or clouds and confirms the buyer’s ownership.

There are risks inherent in these properties. Although a tax deed confers an ownership interest upon you, the title is deemed unmarketable.  In the absence of a quiet title suit, you remain vulnerable to the claims by previous owners and others.  Furthermore, the properties are often neglected or abandoned, and can quickly become a money pit for repairs and maintenance. One may say, it’s a tradeoff between purchasing a property below market value and accepting the risks.

OKC Quiet Title Lawyer – Tax Sale Properties

If you purchased a property at the tax sale auction and seek to quiet title, then we are here to help.  Niroula Law will assess your case and devise a legal course of action tailored to your goals.  A quiet title action not only helps extinguish previous claims, clouds, and liens, but it also provides peace of mind knowing that you don’t have to fight a claimant in the future.  Contact us online or by telephone to get in touch with a quiet title law firm and to speak to a lawyer about tax sale properties.