Tyler Doughty said:
I've considered purchasing Tax Auction lots and/or Trustee Lots, but the Quiet Title Action process has scared me away. In the area I have been working, the county does not warrant the title. I just worry about getting into a dispute with a previous owner or stakeholder on the property and it costing me more than what it is worth in legal fees. Are their alternative options (cheaper and faster) for clearing the title on these properties? How often does a quiet title action suit not go in favor of the buyer? What other risks are associated with purchasing lots with a treasures deed, trustee deed, etc.
Good questions. In every county I've ever encountered, the county does not warrant the title (this is how tax deeds work, and it's why title insurance companies won't insure against them). The whole purpose of a quiet title action is to ensure you don't get into a dispute with a previous owner because their interest will be extinguished after the court has gone through this process... so if you do pay for this and go through those motions, any previous owners should be wiped out after that.
In terms of a quiet title action not going in favor of the new owner, that would only happen if a previous owner speaks up and challenges the action as it's happening. If they don't, then they wouldn't have any claim to the property in the future.
Disclaimer: I'm not an attorney, so don't take any of this as legal advice. However, I have talked with several attorneys about how these work, and I'm pretty familiar with the ins and outs of them... so you can take that for what it's worth.