You’ve taken the first big step by acquiring a tax lien property. For this, we at LewisMcDaniels congratulate you.
However, before you can truly make it your own, there are a few more actions required to clear the title. Only by clearing your newly acquired property title can you obtain full legal ownership of your new tax lien property.
Fortunately, as your Maryland tax sale lawyers, we’re here to help.
In this article, we’ll guide you through the process step-by-step. If you follow these five steps, you’ll be the new titled owner before you know it.
1. Wait Out the Owner’s Redemption Period
In Maryland, previous owners have a set time frame after the tax sale to redeem their property by paying off the back taxes, interest, and fees.
This “redemption period” is either six months or one year depending on the property type.
During this time, the previous owner retains their legal ownership rights. You cannot take possession or make any permanent changes until the redemption period expires with no redemption made.
2. Obtain the Tax Sale Certificate
If the previous owner doesn’t redeem the property, your next move is to obtain the actual tax sale certificate from the tax collector’s office. This official document certifies your tax lien purchase.
Keep in mind that even though you’ve purchased a tax sale certificate, you haven’t acquired full ownership of the property. Rather, you’ve only acquired a lien created by the previous property owner’s outstanding taxes and bills. The previous owner is still the legal owner of the property.
To take the first step towards ownership, you’ll have to perform the next step.
3. File Your Complaint To Foreclose
With the tax sale certificate in hand, you can now file a complaint in circuit court to foreclose on the property’s equity of redemption. This is the critical step to legally terminate the previous owner’s rights.
As part of the foreclosure process, you must provide notice to all relevant parties with interest in the property, including lienholders. Our team can assist in ensuring you follow all requirements precisely.
4. Attend the Foreclosure Hearing
Once all notification requirements are met, a foreclosure hearing will be scheduled. You must attend and provide evidence that all legal steps were properly followed up to this point.
If approved by the court, this hearing results in a judgment vesting you with fee simple ownership of the property’s title.
5. Record the New Deed
With the court’s judgment in your favor, the final formality is recording the new deed under your name in the county’s land records.
With this step’s completion comes your official ownership of the property.
Critical Step: Have a Seasoned Maryland Tax Sale Lawyer in Your Corner
By taking these necessary legal steps, you have cleared any clouds over the title and can proceed with financial investments or personal plans for the property with total confidence.
However, going through the title-clearing process alone can be challenging and intimidating. If you want an attorney who can take on the process on your behalf, we’re here for you.
Contact us at LewisMcDaniels for a free consultation and let’s talk about making your tax lien property acquisition a success.
