A tax confirmation suit is the judicial process of confirming the transfer of a property’s title following a tax sale. Therefore, it is vital to understand what a tax sale is and how it works.
When landowners fail to timely pay their property taxes, the state places a tax lien on the property. Next, the county holds a tax sale to recover the unpaid taxes on the property. The tax sale is for the amount of unpaid taxes only. The purchaser of the tax sale then holds a tax title on the property. For two years, the property owner that did not pay the taxes has two years to redeem the taxes (i.e., pay the amount of back taxes owed plus 1.5% interest). If the taxes are not redeemed, a Chancery Clerk’s conveyance is executed whereby the tax interest is transferred to the purchaser of the tax sale. The purchaser of the tax sale does not hold “fee simple title,” meaning they do not have full ownership rights to the property – they only own the tax interest. What does that mean? The purchaser of the tax sale cannot sell the property or take out a mortgage on the property without filing a Suit to Quiet and Confirm Title in the Chancery Court in the county where the property lies and obtaining a Final Judgment from that Court. This is a statutory process and remedy outlined in Miss. Code Ann. § 11-17-1.
There are several concerns when evaluating whether to purchase property tax liens. It is important to take into consideration potential risks that may affect the value of the property, including but not limited to:
In a suit to Quiet and Confirm Title, a complaint is filed by the tax interest purchaser against the property owner that did not pay the taxes, and any and all persons that may have an interest in the land, so far as known. Tax sales can be a lucrative investment opportunity, but tax confirmation suits can be tricky. Don’t hesitate to contact Sullivan Law Firm for any assistance you may need in a tax confirmation suit! You can schedule a free consultation with us at sullivanlawfirmpllc.com.
* THIS POST IS IN NO WAY INTENDED TO GIVE LEGAL ADVICE OR CREATE AN ATTORNEY-CLIENT RELATIONSHIP. PLEASE CONTACT OUR OFFICE TO SET UP A CONSULTATION AND TO EXECUTE AN ENGAGEMENT AND FEE AGREEMENT.