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Wednesday, February 16, 2011

Buyer Beware - Purchasing Tax Sale Property - Part 3 of 4


In this edition of our Company Blog we are going to discuss the third of four parts regarding the importance of researching your property of interest (POI).

As many of you already know there are many risks associated with purchasing any property.  In this 4 part article we will point out a few of the obvious risks involved, and a few of the precautions you can take to lessen the risks you face when purchasing tax sale property.

 

Please Note:


You may be able to lessen the risks taken when purchasing tax sale property but in no way will you eliminate them.


Below you will find a quick overview of some of the financial risks involved with purchasing contaminated property and steps you may consider taking in an effort to help to protect your best interests.


Contaminated Property - What's the Big Deal?
 
A considerable risk when purchasing tax sale property is of course, the physical condition.
For instance, there are many types of tax sale properties, some of which may be contaminated, including but not limited to, gas stations, auto mechanics shops; just to name a couple.

If you were to purchase a property that was contaminated the repercussions could be astronomical.  Depending on the extent of the level of contamination and many other underlying factors, this could cost millions of dollars to clean up and unfortunately and you may have little choice in doing so depending on the circumstances present at that time.

A good practice to take steps in helping to avoid this situation is to investigate your property of interest (POI).  By researching the property you may come to realize it may not be such a worthy investment in the event the property is contaminated and you do not wish to cover the associated expenses involved with a clean up.  Sometimes driving by the subject property is all you need to do, if the property is a gas station, auto mechanics shop, garage or some other type of potentially contaminated property in many cases but not necessarily all, this should be quite simple to determine.  In other cases you may not be able to see the risk right in front of you and may consider researching your POI in more depth to help decide if there are any risks present that may have an otherwise nasty aftermath if you were to purchase the property.

When purchasing tax sale properties if you are not familiar with the tax sale legislation, rules and market you may compare your experience to something along the lines of stumbling around in the dark without a light.  By learning as much as possible about Tax Sales and the process itself you will undoubtedly find yourself better equipped when the time comes to research your potential purchase and submit your tender to the municipality.

If have any questions please email our office at Info@Tri-Target.com, Let us help light your way!


In our next Blog we will provide explanations for many other questions regarding your responsibilities when purchasing tax sale property and some of the less common tax sale risks that may result in a nominal or significant financial loss.



Remember:

Take as many precautions as possible to protect your interests throughout the tax sale purchasing process.

What are Targeted Tax Sale Tips?

Targeted Tax Sale Tips are sent weekly with our 'Tri-Target.com - Upcoming Tax Sales' newsletter and in our Company Blog.

Each week the topic will vary from simple tax sale do's and don'ts, to in depth detailed information regarding legislation and much more!

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