I bought a tax sale property one time, and don't recall the form of deed- a Treasurer's Deed, maybe? The taxing agency just sends you the deed in the mail, and that is that. I've never encountered any problem with that deed conveying marketable title.
The piece I bought was a 10 foot strip through the middle of a buildable lot in a small town. I figured I'd sell it to the owner of the rest of the lot if he ever wanted to sell it. That's exactly what happened- I made a couple hundred bucks on it, but it probably wasn't worth the bother. I guess the title was good to the piece, because the sale proceeded once the seller owned my parcel as well as his lot.
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