Tax deed investing research guide

4. Tax deed research

4.1 Understand what the taxing authority is selling

Tax deed sales are closer to an ownership transfer, but title quality and encumbrance survival vary by jurisdiction. Research what liens or interests may be extinguished versus what may survive the deed.

4.2 Research surviving title problems

Emphasize easements, restrictive covenants, access, legal description defects, occupancy, and whether marketable title may require curative work. Winning the auction is not the same as being able to sell, finance, or develop immediately.

4.3 Research possession and condition risk

Assume as-is terms and limited interior access. Condition, occupancy, and cleanup can move true economic basis far from the bid number.

4.4 Research utilities and buildability

On vacant or marginal land, verify road access, utility extension reality, septic or well feasibility, flood and wetlands constraints, and zoning compliance. Many tax-deed land strategies fail on infrastructure and permitting, not on auction price.