Fire to Tax Sale Property

When someone purchases a tax sale property, it is buyer beware. We have had an inquiry from an insurance company on behalf of the purchaser asking who has the ownership stake in the property. The title is still in the original owners name , but the tax sale purchaser has an interest in the property. The question was "if the house burns down during the redemption period and the property is not redeemed, how can the tax sale purchaser be insured for the house?"

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Comments

  • That's more of a legal question and I probably would direct them to talk with their lawyer and/or insurer on it. I would not want to give an opinion and then be held to it after the fact when it comes to real estate ... but I would also direct the tax sale purchaser to Section 665 of the Local Government Act which covers property rights of redeemers/purchasers.

  • Thanks James, we referred them to their lawyer as we assumed it was a more legal issue.

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