Real Estate/Back Taxes (Knoxville, TN)

#1
USMC-TNVOL

USMC-TNVOL

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#1
Was hoping maybe there is a lawyer on here in the Knoxville area that knows about real estate/back taxes. We are looking at buying my grandmother's property on E. Woodland Ave., and it's a real dump right now as she died about 10 years ago. My brother saw needles and crap like that throughout when he walked through last week. However, they said the neighborhood is being renovated it looks like.

It will be going to tax sale auction this September and we were looking at paying the backtaxes (which is a lot) and possibly fixing it up and keeping it within our family to use if some of our kids go to college, rent it out, and/or use it for when we go to games in Knoxville. Issue is that they said the next of kin may have ownership and split it between my dad, uncle, aunt, etc. Is there a way for a sole family member to take control of the property if paying the backtaxes?
 
#2
#2
I would think that if there is a tax lien in place, buyer takes sole possession.......Not a lawyer.

Property Tax Sale Info

The only thing is the "previous owner", and what your family could constitute as "family" and "previous owner", has twelve (12) months from the date of the Order to redeem the property in accordance with State law (Tennessee Code Annotated 67-5-2701 through 2706). This requires the owner to pay the amount of the bid plus 10% to the court.

So, legally you need to know who took ownership upon her death and who then was responsible for the property.
 
#3
#3
tennvols77 said:
I would think that if there is a tax lien in place, buyer takes sole possession.......Not a lawyer.

Property Tax Sale Info

The only thing is the "previous owner", and what your family could constitute as "family" and "previous owner", has twelve (12) months from the date of the Order to redeem the property in accordance with State law (Tennessee Code Annotated 67-5-2701 through 2706). This requires the owner to pay the amount of the bid plus 10% to the court.

So, legally you need to know who took ownership upon her death and who then was responsible for the property.

Worse case they have to pay you back purchase price plus 10%.
Click to expand...

From what I read on an old article, you only have to pay the 10% on top of the auction bid if it goes to auction. My brother called the office in Knoxville about it and they said they could pay back taxes back to 2015 to keep it from going to auction.

Question is, who has ownership. No one claimed it after her death as far as we know and there was no will. The property is still in her name on the auction list, but it has the list of her children as next of kin.
 
#4
#4
If there was no will, and no one legally to pass it on, more than likely the city took ownership. Theoretically, during/after probate if there was no will, the governemnt will take.

Someone else would have been at some point, after the death, made to legally take ownership, and be responsible for the taxes.

It could be as simple as the city screwed up on the updating of records and they really own it.
 
#5
#5
Title/deed search plus an attorney. Where is the deed or proof of ownership?

Sounds like a lot of head ache and governmental bs you are about to deal with.
 
#6
#6
USMC-TNVOL said:
Was hoping maybe there is a lawyer on here in the Knoxville area that knows about real estate/back taxes. We are looking at buying my grandmother's property on E. Woodland Ave., and it's a real dump right now as she died about 10 years ago. My brother saw needles and crap like that throughout when he walked through last week. However, they said the neighborhood is being renovated it looks like.

It will be going to tax sale auction this September and we were looking at paying the backtaxes (which is a lot) and possibly fixing it up and keeping it within our family to use if some of our kids go to college, rent it out, and/or use it for when we go to games in Knoxville. Issue is that they said the next of kin may have ownership and split it between my dad, uncle, aunt, etc. Is there a way for a sole family member to take control of the property if paying the backtaxes?
Click to expand...

Im not sure i fully understand but I'll take a stab. Paying the back taxes + accrued penalties should be an straightforward process. If a next of kin has possession, you can pay taxes on their behalf. A simple quit claim deed transfer to you and then you own the property. QCDs are very common and there are tons of resources available online.

If the city or county had taken possession (unlikely), now you've got a whole other ball game in front of you. You will need a real estate attorney or agent to assist you.

I am not an attorney. I invest in and hold rental property.
 
#8
#8
The first thing you need to do is hire a real estate attorney and then have the attorney perform a title search.....at this point, all is guessing. Once the attorney completes the title search, the attorney can then guide you as to the best way to acquire complete and sole ownership. In my opinion (and experience), it is best to get an attorney now, so you will have an understanding of the process, time, and expense it will take to get complete and sole ownership.

The attorney will ask questions about your grandmother's martial status, how many children she had, how many children are alive/deceased, if deceased.....did the person have any children/grandchildren because the ownership will be directly linked to her immediate family.

I, too, am not an attorney but have rental property and dabble in real estate.
 
#9
#9
Nobody called Mr Vol a slumlord. I am disappoint
 
#11
#11
Thanks guys. Based on the intestate laws for TN, the property has to be split evenly between the siblings. Makes things a lot messier when no one from the family gets along anymore and doesn't talk to one another.
 
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#12
#12
USMC-TNVOL said:
Thanks guys. Based on the intestate laws for TN, the property has to be split evenly between the siblings. Makes things a lot messier when no one from the family gets along anymore and doesn't talk to one another.
Click to expand...
Yep. Nightmare scenario.
 
#13
#13
USMC-TNVOL said:
Thanks guys. Based on the intestate laws for TN, the property has to be split evenly between the siblings. Makes things a lot messier when no one from the family gets along anymore and doesn't talk to one another.
Click to expand...

Find out who actually owns the title? Who it was "passed on to" after the death?
 
#15
#15
You might approach a Title n Escrow Co. Especially if you know someone that works there. They know how to do all the "leg work" and might do the research cheaper than a lawyer.
 
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