What kind of deed does a buyer receive when purchasing property from the state at a tax sale due to unpaid property taxes?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

A buyer receives a tax deed when purchasing property from the state at a tax sale due to unpaid property taxes. This type of deed is specifically issued by the state to convey ownership of properties that have been sold for the purpose of recovering unpaid property taxes.

When a property is sold at a tax sale, the state has the authority to transfer ownership to ensure that delinquent taxes are collected. Unlike a warranty deed, which provides guarantees regarding the title and the seller's ownership, a tax deed typically does not guarantee a clear title. This means that while the state conveys the property to the buyer, it does not ensure that there are no existing liens or claims on the property beyond the tax obligation.

A quitclaim deed, on the other hand, simply transfers whatever interest the grantor has in the property without any warranties. This is not applicable in a tax sale scenario, where the state is actively selling property to collect taxes, rather than transferring any interest it may hold. Similarly, a deed of trust is related to securing a loan rather than to the purchase of property through a tax sale.

In summary, the tax deed is the appropriate conveyance in this circumstance due to its legal framework surrounding property taxes and the roles of state and buyer in that

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