[WSBARP] Tax Title Services certification

[Rod Harmon]

I am looking for confirmation of my understanding of how Tax Title Services of Irvine, CA works and the remedy if they make a mistake.  A tax sale buyer pays TTS to research the tax sale to determine whether the taxing authority followed all the due process steps in foreclosing and conducting the tax sale, and whether anyone has a redemption right.  TTS provides a certificate to a title company.  In effect, the title company is outsourcing the research on the tax sale to determine if there are any exceptions to title due to the circumstances of the tax sale.  If the above is inaccurate, I would welcome correction.
I am not sure of the content of that certificate or of the liability TTS has to anyone if it errs and there is a total failure of title.  I am also not clear on whether the certificate is only relied upon by the title company to insure the tax sale buyer, or to insure the tax sale buyer's buyer.  Does TTS' certificate indemnify the title company for loss?  If so, does TTS have a remedy against the tax sale buyer in the event it pays for the loss.  Ultimately, does the risk of loss fall back on the tax sale buyer?

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com<http://www.rodharmon.com/>
   rodharmon at msn.com<mailto:rodharmon at msn.com>

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