Title Insurance on Tax Sale Properties

So, you bought a property at a tax sale, fixed it up, and now you are ready to cash in?

You have your agent put it on the market, buyers love what you have done to the place, the neighbors are excited to have that eye-sore fixed, and you get an offer for your asking price… but the title company says, “Sorry you have title issues and you can’t sell this property.”


Confusion and anger race in your mind. “How can this be? I bought this from the government, there can’t be ‘title issues!”

“What can I do?” you ask the title company? “You have to quiet title.”

…another “what?”

You ask your, agent and they ask around and hear “yep, tax sale properties have issues.”

Why? How much? How long? and Now what? All go through your head.

This happens way too often in our community and across the United States. The short answer as to “why” is because of what title companies accept and what counties and cities require for foreclosure are different. Cities and counties try to follow their laws and statutes that have been passed by their legislator, while title insurance underwriters believe that a lot of those statutes are outdated, or they fall just short of what is required for title insurance.

My urban renewal task force group has been working alongside the Urban Neighborhood Initiative (UNI) for over two years to tackle this problem since the majority of the “tax sale” properties are in urban areas.

We knew we had to create solutions to help support urban renewal in Kansas City. A couple of members from that group formed one solution, a company named Title Bridge. Title Bridge will review each property individually, and in most cases can issue a certificate that will allow a title company to issue a policy. At Clear Title, we presented this solution to our underwriter and we have been approved to issue Title Insurance Policies on these properties with a certificate from Title Bridge.

Please contact me at brett@mycleartitle.com, or our office at 913-451-3608, with any questions or if we can help with any properties.

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