Step 1: The Tax Lien

When property taxes go unpaid for an extended period, counties and municipalities sell tax liens (also known as tax certificates) at public auctions to recover the lost revenue.

Viking Investments acquires these tax liens at auction. A tax lien:

• Gives Viking a priority financial claim on the property

• Accrues interest, which is paid by the delinquent property owner if they later redeem the property

In Mississippi, property owners have a 2-year statutory redemption period during which they can pay the owed taxes, penalties, and interest to keep their property. Roughly 97% of property owners redeem during this period.

Step 2: The Tax Deed

If a property is not redeemed within the 2-year redemption period, Viking becomes eligible to receive a tax deed, which conveys ownership interest.

At this point, Viking may choose to sell its ownership interest in the property to individuals or investors.

⚠️ While a tax deed is a legal conveyance, there can be risks:

• Prior owners or parties of interest (e.g., lenders, heirs) may challenge the deed if statutory notice requirements were not met

• It is the buyer’s responsibility to research title history and compliance with notice laws before purchasing

Step 3: The Conveyance

Viking typically transfers property to buyers via a quitclaim deed. This type of deed:

• Conveys Viking’s interest in the property “as-is”

• Offers no warranty or guarantee of clear title

Because of this, due diligence is essential before purchasing. Buyers must verify the quality and merchantability of the title themselves or consult qualified legal counsel.

Due Diligence: What Buyers Need to Know

Tax deed properties may come with title risks that require investigation. Buyers should confirm:

• Were all parties (owners, lenders, etc.) properly notified?

• Are there any competing claims to ownership?

Possible title issues may include:

• Outstanding liens (state or federal tax, mortgages)

• Bankruptcy complications

• Environmental concerns or wetland regulations

• Demolition or cleanup assessments

• Improper sale procedures

• Incorrect property descriptions or double assessments

Buyers are strongly encouraged to perform title searches, consult a title attorney, or obtain a professional title report before purchasing.

Confirming Ownership (Quieting Title)

If you’ve purchased a tax deed and want to secure clear ownership, there are three common paths to quiet title:

1. Mutual Agreement
   Prior parties may be willing to formally release their claim to the property through a signed legal statement.

2. Ownership Through Possession
   Demonstrating consistent, open possession over time can serve as notice and support your ownership claim in court.

3. Court Action (Quiet Title Lawsuit)
   The most formal option: file a lawsuit against all possible past claimants. This allows the court to:

   • Hear any objections to your ownership

   • Determine the legal owner of record

   • Permanently clear the title if successful