Tax Title
Confidently invest in Louisiana’s tax-delinquent properties. We partner with CivicSource and USNTI to support you every step the way.
What is an adjudicated property?
An adjudicated property is one that’s been taken over by the government because the owner didn’t pay property taxes for several years. After missing the first year of taxes, the property didn’t sell at the annual tax sale, and then the owner continued to miss payments for five more years. At that point, the property is considered adjudicated and is now owned by the local government.
I’ve heard these properties don’t have clear title—is that true?
Not exactly. While adjudicated properties can come with title issues, we work closely with CivicSource to resolve things like old liens, mortgages, judgments, and unpaid taxes before closing. The previous owners were legally notified and given the chance to pay what they owed—and didn’t. By the time you purchase the property, all legal steps have been followed, so you can feel confident the title is clear and the transfer is legitimate.
Can the previous owners come back and cancel my purchase?
No. All tax sale parties were notified pursuant to La. R.S. 47:2206 or 2236 that their rights to the property were terminated by a failure to redeem the taxes owed. This notice, referred to as post sale notice in Louisiana law, was confirmed as constitutionally sufficient by the Louisiana Supreme Court in Central Properties v. Fairway Garden Homes, LLC. Previous owners of adjudicated properties retain the same rights as any other previous owner of property.
What is a tax sale endorsement, and how much does it cost?
A tax sale endorsement is an added layer of protection on your title insurance policy. It confirms that the title company has reviewed the tax sale and is insuring potential issues tied to it. Examples include past due taxes, redemption claims, or notice errors.
The cost depends on the property’s value (see below). ​​
What is a ALTA 34 Endorsement (Identified Risk), and how much does it cost?
This additional endorsement is required alongside the tax sale endorsement and costs 25% of the base title insurance premium.
Together, these endorsements help protect your investment and ensure your title coverage accounts for the complexities of tax sale properties.
What does the sale of an adjudicated property confer to the purchaser?
The sale of an adjudicated property confers to the purchaser limited ownership rights, not full and clear title immediately. Specifically, it gives the purchaser a tax sale title, essentially a claim to ownership, that must be further perfected (usually through a quiet title judgment or compliance with statutory notice periods) before marketable title is achieved.
In Louisiana, where adjudicated property means it didn’t sell at a tax sale and was then adjudicated to the parish or city, the purchaser often must follow a Redemption and Notification process (notifying former owners and lienholders) before a full ownership interest or insurable title is granted.
Tax Sale Endorsement
covers the unique risks that come with tax sale properties
Pricing is based on property value:
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Up to $25,000 → $1,000
$25,001–$50,000 → $1,000 + $15 per $1,000 over $25,000
$50,001–$100,000 → $1,375 + $5 per $1,000 over $50,000
$100,001–$200,000 → $1,625 + $3.50 per $1,000 over $100,000
Over $200,000 → 1% of the insured amount
