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What is a certificate of title from the land court?
Apparently you get (can get) this in lieu of the usual deed when you buy real property from a tax sale.
Supposedly, you can’t get title insurance on a certificate of title but if it is a cash sale, does title insurance matter?
Has anybody ever had problems either owning or selling property with this land court certificate of title?
Thanks,
Ccat
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Yes. Have this exact problem. Bought a lot at tax auction in 2018. Like to sell, my realtor tells me, it's "unsellable" for 20 years. No title insurance, nobody will buy it. Cash sale possible, at 50% or less of market value.
Yes, I have to pay 100% of the property taxes.
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(06-27-2022, 05:10 PM)dobanion Wrote: Yes. Have this exact problem. Bought a lot at tax auction in 2018. Like to sell, my realtor tells me, it's "unsellable" for 20 years. No title insurance, nobody will buy it. Cash sale possible, at 50% or less of market value.
Yes, I have to pay 100% of the property taxes.
So, what’s with the 20 years? Who decided on that? Does that mean that it’s a bad idea to buy a tax sale foreclosure?
Ccat
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20 years is probably Hawaii adverse possession law. Yes, you have to pay the taxes.
Puna: Our roosters crow first!
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Adverse possession in Hawaii is indeed 20 years for private property; government land cannot be adversely possessed.
Owner who "loses" at auction retains the right to repurchase their lot if they can also pay for any improvements made by the new owner in addition to the auction price and all taxes accrued in the interim. Hence "unsellable for 20 years".
Another common tactic: an owner of multiple lots will pay off a middle lot just before the auction -- the listing shows a choice (say) triple side-by-side, but by the time you get to the auction, it's no longer a triple.
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https://hawaiipropertytax.com/docs/Tax%2...stions.pdf
I thought adverse possession laws pertained to squatters.
If you buy land at tax sale, you own it yet you're considered a squatter?
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Wow. Thanks for that info.
Sheesh! Why would ANYONE buy property at these sales? It looks like a complete waste of money. In fact, it looks like you would not only lose money, you would also create a lot of headaches for yourself.
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Losing money on self-inflicted headaches is merely the cost of doing business in Hawaii.
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Last time I went to one of those auctions the former owner was given 12 months to buy back the property, and had to pay 1% interest for each month they waited to do so. 12% APR is a pretty decent rate of return if you just sit on the property. Never heard about the hassles of Land Court deeds though, thanks for the info.
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(06-26-2022, 01:34 AM)Ccat Wrote: What is a certificate of title from the land court?
Apparently you get (can get) this in lieu of the usual deed when you buy real property from a tax sale.
Supposedly, you can’t get title insurance on a certificate of title but if it is a cash sale, does title insurance matter?
Has anybody ever had problems either owning or selling property with this land court certificate of title?
Thanks,
Ccat
I bought and sold properties purchased at COH tax sales. You must hold them for one year(or original owner can pay you the 12% to buy back)after that it is no problem to sell. The 20 years claim is hogwash.
