Post-Auction Sales for Tax Deed Properties in Arkansas

quit claim deed

Tax Deed Properties in Arkansas.

What is the post auction sales process?

New Post Auction Sales Process:

What happens to tax delinquent (tax deed) properties that were offered at the initial public auction, but did not sell?  The Commissioner of State Lands (COSL) has rolled out a new post auction sales (formerly known as ‘negotiated sales’) process.

These properties are made available for sale through the post auction sales process thirty (30) days from the date of the initial public offering.

Prospective buyers will start by completing an “Offer to Purchase” form from the Commissioner of State Lands (COSL) office. The completed form must be submitted with an offer amount that covers all delinquent taxes, penalties, interest, and costs due. Properties are offered on a “first come, first serve” basis. However, if two or more qualifying purchase agreements arrive on the same day, additional competitive bidding may be required to complete the sale.

Once the Commissioner receives an offer and payment, that parcel listing will be removed from the Post Auction Sales List. No additional offer forms may be accepted after that day. It does not matter what date the offer is postmarked.  The form and payment must be received by the Commissioner’s office before, or on the same day as, other qualifying offers.

Prospective buyers can expect the sale process to require approximately sixty (60) days to complete.

post auction sale tax deed sale arkansasOnce an offer is received…

  1. Ten (10) business days are reserved for offer acceptance and notice preparation.
  2. Thirty (30) calendar days are reserved for delivery and notification.
  3. Ten (10) business days are prescribed for the redemption period following the sale date.

If the property is not redeemed by the completion of the redemption period, a Limited Warranty Deed will be issued to the buyer.

The delinquent owner of record maintains the right to redeem these land(s) ten (10) business days following the official post auction sale date set by the Commissioner. If property is redeemed within the prescribed period, buyers will receive a full refund of the purchase price paid. No interest will be paid on this amount.

During and After the Sale

Find out what tax deed buyers need to know before, during, and after the auction or post auction sale of tax delinquent property.

Commissioner’s Advice

The Commissioner of State Lands (COSL) advises buyers and investors to seek legal consultation  in order to establish stronger title to properties purchased through a tax sale. The Commissioner does not and cannot guarantee title to these properties.

In most cases, buyers of tax delinquent land will need to obtain a decree of confirmation and quiet title before a title company will issue title insurance for the property. Purchasers of tax delinquent land should be prepared to pay these additional expenses in order to gain clear title to their tax deed property.

To Confirm and Quiet Title

Establishing a clear title to properties purchased through tax sales is accomplished by filing a Complaint to Confirm and Quiet Title.  This is a complex legal process consisting of an action filed with the County Circuit Court where the property is located. Arkansas state law has very specific requirements for these types of actions.  Please consult an Arkansas Real Estate attorney who has experience in this area to assist you with confirming the title to your tax deed properties.

If you have purchased tax delinquent (tax deed) property in Arkansas and need legal assistance to confirm your title, please contact Deborah at The Hardin Law Firm, PLC.

ATTORNEY: Learn more about our Attorneys and Staff.

SERVING: Cabot, Beebe, Ward, Searcy, Jacksonville, Lonoke County, White County, Faulkner County, and other central Arkansas areas. We also routinely serve out-of-state property owners, who require representation in Arkansas.

DISCLAIMER: The information contained in this web site is intended to convey general information. It should not be construed as legal advice or opinion. It is not an offer to represent you, nor is it intended to create an attorney-client relationship. Laws and procedures can and do change. You should consult a real estate attorney licensed in your area.

Published on: Jul 20, 2015

Last updated: October 24, 2016 at 16:30 pm

 

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