Once you have successfully purchased a parcel of real estate at a tax sale, you still do not “own” the property. You have required a “Tax Sale Certificate,” which is similar to a lien against the property. To actually convert that fiscal sale certificate into a fiscal deed, you will need to perform the following procedures:

First, you will need to apply for title work on the property to an established real estate title company. The title company will look at local records to determine who might be an interested party in the real estate. This can be a tenant, a mortgagee, a judgment lien holder, anyone who has an “interest” in the property.

You must then notify the owner of the property and all other interested parties about the purchase of the property at the tax sale by certified mail.

After notification is given, there is usually a long waiting period until you can file your verified petition for issuance of the tax deed. This is the “redemption period,” which generally lasts one year from the date of sale. During this period, the owner (or anyone else) can redeem the property by paying any unpaid taxes, fines, and other assessments. The redeeming party must also pay an amount equal to 10% of the money paid by you. At all times during the redemption period, it will be your responsibility to ensure that all property taxes are paid.

Because the property is redeemable, you must file a cost statement with the county auditor’s office as soon as you are allowed to. This statement will include a certification of costs incurred, including title and attorney’s fees. Once those costs are certified to the auditor, any redemption party will be required to make payment of those costs prior to redemption. Those costs will then be reimbursed to you if the property is redeemed.

After the expiration of the redemption period, if no redemption has been made, you will file your verified petition for tax deed with the county court. You will name all interested parties as parties to the petition. Assuming there is no objection from the interested parties, the court will order the issuance of their tax deed.

Please note that there are strict time constraints for each of these steps throughout the process. Failure to meet a deadline may mean the loss of your right to your tax deed.

Finally, even after the tax deed has been issued, there may still be work to be done if you want to sell or mortgage the property. Most title companies will not secure title to property acquired by tax sale without a “silent title” claim. A silent title lawsuit is a lawsuit filed in court in which the plaintiff asks the court to enter a judgment declaring their title to the property. Potential interested parties are given the right to object to quiet title. If the plaintiff wins, they usually get a judgment stating that they are the rightful owner of the property. The judgment is final (although subject to appeal) and will usually grant commercial title to the property.