After Purchase of Tax Deed Property

quit claim deed

Tax Deed Properties in Arkansas.

What happens after I purchase Tax Deed property in Arkansas?

When do I receive a deed to the property I am purchasing?

Purchaser’s Certificate

After paying in full for a property, the buyer will receive a “Purchaser’s Certificate.”

This document does NOT convey title or ownership to the property. It simply states that you have paid in full for a parcel at the auction. Here is what buyers can expect after an auction:

  • Purchaser’s Certificate issued
  • Delinquent Owner has ten (10) business days to redeem
  • Limited Warranty Deed issued to purchaser
  • Deed sent to Circuit Clerk’s office to be recorded
  • Deed forwarded to the purchaser

The Limited Warranty Deed is the only deed the Commissioner of State Lands will issue for this tax deed property.

Limited Warranty Deed

In this situation, a Limited Warranty Deed is very similar to a quitclaim deed and only transfers any interest the State of Arkansas held in the property. The Commissioner does not guarantee usability, accessibility, or existence of the property nor can it guarantee or warrant a clear title to the property.

Redemption

If a parcel or property is redeemed following a purchase, a full refund of the purchase price will be returned to the buyer. There will be no refund for legal or renovation costs, nor will interest be paid on the original purchase money.

Litigation Period

The sale is also subject to a ninety (90) day litigation period beginning the date the Limited Warranty Deed was issued. During this period, purchasers should not make any major changes or improvements to the property. If the sale is overturned in court, the buyer will generally be entitled to a refund of the purchase price, only.

Depending on circumstances, there may be no time limitation on the former owner or interested party’s right to challenge the sale in court.

During and After the Sale

Find out what purchasers 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 advises buyers to seek legal consultation in order to establish stronger title to properties purchased through a tax sale. The Commissioner cannot guarantee title to these properties.

In most cases, buyers of tax delinquent land will be required to obtain a decree of confirmation and quiet title before title insurance can be issued for the property. Buyers of tax delinquent land should be prepared to incur additional legal expenses in order to gain clear title to the 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 your title.

If you have purchased tax deed or tax lien 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.

Published on: July 20, 2015

 Last updated: October 24, 2016 at 17:04 pm

4 Comments on After Purchase of Tax Deed Property

  1. Joseph Cooper // July 6, 2017 at 10:24 pm // Reply

    We just purchased three lots in Fairfield Bay, from the Commissioner of State of Arkansas Lands.We have the Limited Warranty deed, on them right now.
    What would cost be to acquire the deeds to all three lots?

    • Hi Joseph,
      Thanks for your question! While every case is different, we do offer a flat fee for quieting the title to tax deed properties, and discounted rates when you have more than one property in the same county. I have emailed you a copy of our engagement letter which outlines the total attorney fees (and approximate costs) for three lots in the same county. I am happy to answer any other questions you have about the process, attorney fees, or related topics. (501) 247-1830.
      Congrats on your new properties!
      Deborah

  2. Renate Schmitt // December 6, 2017 at 6:37 pm // Reply

    We purchased two lots through the state of Arkansas we were planning on building on after the 90 day period, now I find out we have to get clear titles to these. If I can find the owners of these lots and they have a notorized letter that they seek no claims to these lots in the future can I then file that with the clerk of courts and receive clear titles

    • Hi Renate,

      Thank you for your question. I’m afraid getting clear title is not as simple has having the prior owners sign a notarized statement. You will likely have to file an action for confirmation and quiet title with the court. There is no harm in asking your title company what they would require to insure your title, but do not be surprised if they say you need a quiet title action.

      Please feel free to call (501-247-1830) or email (deborah@thehardinlawfirm.com) us if you would like more information about this process.

      Thank you again for your question, and best of luck with your new properties!
      Deborah L. Hardin

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