Tax Reversion Curative Process

The following is a breakdown of the steps involved in the process we use to cure titles from defects surviving the tax reversion process under the old act. We will underwrite as many of the parcels as possible but if the title is defective because of notice defects, this is the process we use to clear title of those notice defects.

1. Commitment review: Our first step is to analyze each commitment and identify whether the title is in good enough shape to insure as is. If so, we’ll identify that on a spread sheet, and issue a revision reflecting the decision to insure the title as owned by the City or the State or whatever entity took title from the State.
2. Deed acquisition: Properties that aren’t insurable in their present condition must go through the State re-noticing process again because the redemption rights of prior owners have not been effectively terminated. This involves the sending of a Notice of Hearing and recording a Proof of Service for each party with an interest in the property. The State will then hold a hearing at which the owners of an interest in the property may defend against the forfeiture. If the owners of a property interest are successful at that hearing, then the State will deed the property back to them. In order for the State to have the authority to re-notice the properties, and ultimately convey title if the property owners successfully redeem their interests, the State must be in title. Therefore, the City (or other grantee from the State) must deed these properties back to the State in order for the re-notice process to go forward. If no one redeems the property, the State will destroy the deed. We will rely on you and your contact with the City (or other grantee) to obtain the deeds but will assist you in any way we can.
3. We will prepare the Notices and sent them with the deed to the State requesting that the State issue the re-notices. We will include a request that the original proofs of service be returned upon completion for recording. We can bill you separately for the recording fees.
4. We will monitor the hearings and track the appearance/nonappearance of parties entitled to redeem. We will also track any redemptions and inform you of them.
5. Upon completion of the redemption period, we will revise our commitments to reflect the City (or other grantee) in title.

Timing: Once we have received the deeds from the City (or other grantee), the process usually takes approximately 90 days for completion of the re-noticing, the hearings and the expiration of the redemption periods. However, due to limited staffing at the State, coupled with a heavy backlog of cases with which that limited staff is coping, this time period is increasing dramatically. LaMont Title Corporation will monitor the State and proceed immediately upon our receipt of the Notices of Hearing.

Fees: We charge $300 per parcel for the tax reversion curative process in addition to the title insurance premium.