Want to know how to do a quitclaim deed in Georgia? Let’s talk about quitclaim deeds and how they work. Note that it’s not a quick claim deed; it’s a quitclaim deed.
Today I’ll cover how to do a quitclaim deed in Georgia. You’ll also learn about tax lien certificates, tax-defaulted property and Georgia’s redeemable tax deeds.
I’m Ted Thomas, and for over 25 years, I’ve been teaching and guiding others in the arena of tax liens and tax deeds. Most of that time, I’ve been an investor. My experience is from working in the trenches and actually buying and selling.
I’m not an attorney, real estate broker, or certified public accountant. My experience comes from doing this business of tax liens and tax-defaulted real estate.
Let’s dive right in and figure out this business of a quitclaim deed in Georgia.
Table of Contents:
- Get Exceptional Returns on Tax Lien Certificates
- Georgia Sells Redeemable Tax Deeds
- Selling Property With a Quitclaim Deed in Georgia
- Why Use a Georgia Quitclaim Deed?
- Alternatives to Using a Quitclaim Deed
Get Exceptional Returns on Tax Lien Certificates
Most investors are attracted to the tax delinquent property business because the income returns are exceptional.
Tax lien certificates pay outrageous interest rates. I have seen rates as low as 8% in Oklahoma, however, today I believe the lowest rate currently on a tax lien certificate is in Long Island New York, Suffolk and Nassau counties. Each pay 12% annualized interest.
For the record annualized is 1% a month for the 12 months.
The highest interest I’ve experienced was a few years ago in Michigan, which paid 50% on a tax lien at the time.
Georgia Sells Redeemable Tax Deeds
Georgia is a redeemable tax deed state. This simply means the county will auction a tax deed at a public auction to the highest bidder.
Georgia’s Tax Delinquent Property Auctions
Georgia has 159 counties, listed here. Each county is authorized by the state legislature to auction tax defaulted properties
The winner at the tax defaulted auction receives a redeemable tax deed, however, that does not mean the winner gets possession of the property.
Redeemable means the property owner has 1 year to come forward and redeem the tax deed which was sold at the auction.
Georgia’s Redeemable Tax Deed Penalty Rate
In order to redeem the tax deed, the property owner must pay 100% of the taxes that were paid at the auction plus a penalty of 20%. The investor who purchased the redeemable tax deed at the auction receives that payment from the property owner and gets of all of their money back plus a 20% return on investment.
The 20% penalty is due and payable from the property owner. Whether they pay the taxes one day late or 365 days late, it doesn’t matter. The property owner must pay the delinquent taxes plus a 20% penalty.
This is a unique process. Redeemable tax deeds generate penalty returns in 5 different states.
Selling Property With a Quitclaim Deed in Georgia
The county or the property owner always have the option to sell the property with a deed, or they could sell with a quitclaim deed in Georgia. A quitclaim deed disclaims any responsibility for the structure or structural defects or title defects.
A quitclaim deed transfers a property from seller to buyer. The seller is referred to as a grantor, and the buyer is referred to as the grantee.
Why Use a Georgia Quitclaim Deed?
Why would the seller be interested in using a quitclaim deed in Georgia? The answer lies in the protection from lawsuits and relief from any property burdens.
A quitclaim deed usually disclaims any responsibility for the property or to the title.
The burden becomes directly on the new owner.
Title companies and title insurance companies will struggle when they see quitclaim deeds. The way to avoid that challenge is to “become the banker” by providing seller financing and bypass title insurance.
Alternatives to Using a Quitclaim Deed
Buyers and sellers have alternatives. The new buyer’s alternative is simple.
Hire an attorney and ask the attorney to perform a quiet title process. This will clear the title. It’s a time-consuming process, maybe months, plus it’s costly and could be $3,000 or $4,000.
Another alternative is to utilize owner financing, create a contract for deed and sell the property with installments.
The tile company may be more receptive to a contract for deed used in an installment sale.
We hope you enjoyed Ted’s lesson, “How to Do a Quitclaim Deed in Georgia.”
A quitclaim deed is a way to transfer ownership of a property while disclaiming responsibility for the state of the property or the title. The new owner takes on all the responsibility.
Transferring a property in this manner may present a challenge if you want to use a title company or title insurance company. A way to bypass the title companies is to do seller financing, and sell the property on an installment plan.
Another alternative is to quiet the title. The quiet title process can be costly and time consuming, but it clears the title. Once the legal process of quieting the title is complete, title companies and title insurance companies will be satisfied.
Quitclaim deeds and quiet titles are used by tax defaulted property investors.
Georgia is a redeemable deed state that pays a 20% return if the property is redeemed at any time within the first year.
When you purchase a tax deed in Georgia, you don’t get immediate ownership of the property. The owner has one year to redeem it by paying the back property taxes owed plus a 20% penalty.
If they don’t pay after 365 days, then you can foreclose on the property. So you either get a 20% return on your investment or you get the property.
If you’d like to learn more about investing in tax delinquent property, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
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Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.