Current through Register Vol. 49, No. 9, September, 2024
Title 1
: General
Information
SUBTITLE A AUTHORITY AND
PURPOSE
The authority for these Rules ("Rules") is power given to the
Commissioner of State Lands for the State of Arkansas by Act 626 of 1983, as
amended, and other applicable laws.
The counties in Arkansas certify tax-delinquent property to the
Commissioner of State Lands (the "Commissioner"). Upon certification, legal
title to the property vests in the State of Arkansas in the care of the
Commissioner, although the Commissioner does not take physical possession of
it. During the time that property is held by the State, the Commissioner does
not enter upon the property and has no duty to maintain it.
The Commissioner is charged with either collecting taxes on the
properties or, if the delinquent taxes are not paid in full before the date set
for sale, selling the property. The Commissioner offers the property for sale
at a public auction that is usually held in the county in which the property is
located. If the property does not sell, then the Commissioner offers the
property for sale at the ongoing Unsold-Property Auctions beginning thirty (30)
calendar days after the date of the public auction.
The purpose of these Rules is to carry out the provisions of Act
626 of 1983, as amended. Pursuant to section 7 of Act 626 of 1983, as amended,
these rules shall have the full force and effect of law.
SUBTITLE B SCOPE
These Rules, having been promulgated and adopted by the
Commissioner, shall be in full force and effect until they are amended or
repealed pursuant to law. All previous Rules adopted and published by the
Commissioner are hereby superseded and repealed insofar as they may be
different from or in conflict with the Rules herein.
Except where specifically noted, these Rules apply to all
categories of sales held by the Commissioner. Rules not applying to all
categories of sales will be found under one of the more specific Titles that
follow. These Rules should be regarded as being supplementary to, and not in
replacement of and in compliance with, the laws of this State relating to the
matters covered by these Rules.
Nothing in these Rules shall apply to the sale of tax-delinquent
land that has been or will be certified to the Commissioner for tax years prior
to 1978.
SUBTITLE C
SEVERABILITY
It is intended that these Rules are severable and that if any of
these Rules, or any parts thereof, shall be declared invalid, all other
unaffected Rules, or parts thereof, shall remain in full force and
effect.
SUBTITLE D
DEFINITIONS
The following definitions are applicable to all Rules:
Bid- An offer to purchase a property made by a
prospective buyer, whether in person, via mail, or online.
Certificate of Purchase-A receipt that verifies that
a person or entity is the successful bidder and has tendered of payment in an
acceptable form. A Certificate of Purchase does not convey title or guarantee a
Limited Warranty Deed will be issued.
Certification- The process by which each county
certifies a list of tax delinquent real property parcels to the State of
Arkansas in the care of the Commissioner on a yearly basis.
Certified Funds- Payment that is guaranteed to clear
or settle by a bank or business, including without limitation a credit card,
debit card, electronic check, escrow check, money order, cashier's check, or
certified bank check.
Costs- Actual costs expended by the Commissioner of
State Lands.
CT- All references to times are under the North
American Central Time Zone.
Earnest Money- The first One Hundred Dollar
($100.00) payment tendered as part of a Bid, which is paid to confirm the
contract to purchase. For the Tax Delinquent Property Auctions, the Earnest
Money shall be paid by cash or Certified Funds. For all Unsold-Property
Auctions and Negotiated-Price Auctions, the Earnest Money shall be paid by
Certified Funds. Earnest Money shall be paid for each successful Bid in the
time period provided herein.
Excess Proceeds- Money received from a Bid or sale
that is in excess of the taxes, fees, penalties, interest, and costs due on the
property at the time of sale, as well as any fees due after the sale.
Homestead- A parcel of tax-delinquent land certified
to the Commissioner of State Lands that has been designated by the county
assessor as a homestead eligible for a homestead credit under §
26-26-1118,
and has been properly claimed as a homestead by the owner.
Interested Party- Any person, firm, corporation,
partnership, or other legal entity holding title to or an interest in the
tax-delinquent land by virtue of a recorded instrument at the time of
Certification. Mere notice of a sale by mail or publication does not convey
legal status to the named entity or individual that it is an "interested party"
as defined under the statutes or these Rules.
Limited Warranty Deed- A unique deed generated by
the Commissioner of State Lands that conveys a limited interest in a property
in exchange for the purchaser paying the accepted Bid amount for the property.
In most instances a Limited Warranty Deed is used by a purchaser to quiet title
to the property and receive full marketable title in fee simple from a
court.
Litigation Period- The maximum time after the sale
of a tax-delinquent property that legal proceedings based on that sale may be
initiated by statute.
Negotiated-Price Auction- A type of an
Unsold-Property Auction that occurs two (2) years or more following the Tax
Delinquent Property Auction, where the Commissioner has the discretion to set a
Reserve Bid Amount for less than the amount of taxes, penalties, interest, and
costs of the sale.
Notice of Sale- Notification sent to the Owner or
other Interested Parties as identified by the Commissioner of State Lands, as
having a potential interest in a tax-delinquent property that alerts the
recipient that the State is going to take an action that will deny the
recipient of any rights they may have in the property, unless they take
immediate action to pay the taxes, penalties, interest, fees, and costs. Notice
is also provided by publication in a newspaper having general circulation in
the county where the land is located.
Owner- Any person, firm, corporation, partnership,
or other legal entity holding title to or an interest in the tax-delinquent
land by virtue of a recorded instrument at the time of Certification. Mere
notice of a sale by mail or publication does not convey legal status to the
named entity or individual that it is an "owner" as defined under the statutes
or these Rules. Further, redemption of a parcel by a person not included within
the definition of an "owner" does not convey ownership or title to the person
so redeeming.
Redeemer- Either the Owner of the property who
redeems the property by paying all taxes, penalties, interest, and costs or any
other person, firm, corporation, or partnership without an existing ownership
interest in the property who redeems the property by paying all taxes,
penalties, interest, and costs.
Redemption/Redeem- After any sale, whether by a Tax
Delinquent Property Auction or an Unsold-Property Auction, a parcel may be
redeemed as set forth in these rules. A parcel may also be redeemed at any time
after Certification and prior to sale. Upon Redemption, a Redemption Deed will
be issued and filed with the county.
Redemption Deed- Upon Redemption of property as set
forth by the statutes and herein, the Commissioner shall issue a redemption
deed. Issuance of a redemption deed does not convey any title in or establish
ownership by the person in whose name the deed is issued. The deed serves as
proof that payment has been received by the Commissioner of State Lands, and
does not convey or change the legal ownership to the property redeemed. If a
Redeemer is not the Owner at the time of Redemption, the redemption deed may
only be issued in the name of the Owner, absent a filed and recorded deed
showing a change in ownership. The deed shows that the state's interest is
extinguished by the Redemption.
Reserve Bid Amount- An amount set by the
Commissioner that represents the minimum Bid amount.
Tax Delinquent Property Auction- An auction for the
sale of tax-delinquent property where bidders are physically assembled and Bids
accepted. Tax Delinquent Property Auctions may include Bids made through the
mail, as well as Bids made by those present. Tax Delinquent Property Auctions
are usually held in the county in which the land is located.
Taxes- As used herein, the use of the term "taxes"
shall include any and all taxes, penalties, interest, fees, and costs
whatsoever due and owing on the property. Any amounts owing continue to accrue
additional taxes, penalties, interest, fees, and costs until such time as the
property is either sold or Redeemed.
Unsold-Property Auction - A sale consisting of Bids
placed online on a tax-delinquent property that was previously offered at a Tax
Delinquent Property Auction but not sold. Unlike a Tax Delinquent Property
Auction, an Unsold-Property Auction is initiated solely by an online offer
being made on the unsold property and is sold to the highest bidder. Unsold
Property Auctions are held solely online and not in person or in the county in
which the land is located.
Unsold-Property Auction Closing Date- The date that
is the thirtieth (30th) calendar day from the date
of the receipt of the first online Bid for a property located on the
Unsold-Property Auctions list. The date that the first Bid is received is
included in the thirty (30) calendar days.
Unsold-Property Auction Commencement Date- The date
of the receipt of the first online Bid for a property located on the
Unsold-Property Auctions list.
SUBTITLE
E LAND OFFERED FOR SALE
All land offered for sale by the Commissioner has been certified
to the State by the county in which the land is located for non-payment of
real-property taxes, penalties, interest, fees, and costs. The sale date shall
be no earlier than one (1) year after the tax-delinquent land is certified to
the Commissioner.
The property being offered is identified by legal description,
lot and block number, or metes and bounds, as well as by parcel number, all as
certified by the county. The property is not identified by physical
address.
A list of tax delinquent real properties being offered for sale
will be available at the Tax Delinquent Property Auction or through the
Commissioner's website, http://www.cosl.org/. A list of
Unsold-Property Auction parcels available for sale will be available through
the Commissioner's website. Lists of both Tax Delinquent Property Auction and
Unsold-Property Auction parcels are subject to change at any time.
All liens and encumbrances are not necessarily extinguished by
tax sales. Offered parcels may be subject to liens, easements, building or use
restrictions, or governmental interests. The parcels remain subject to the lien
of taxes for the preceding calendar year that are not yet due and payable,
which may be owed to the county collector.
The Commissioner makes no covenant, representation, or warranty
as to the physical or environmental condition of the property. Successful
purchasers acquire the property, both surface rights and mineral rights, if not
previously separated, in the condition (including environmental condition)
existing at the time of sale "as is" with all defects, if any.
It is the responsibility of all prospective
purchasers to do their own research as to the use of the land for their
intended purpose and to exercise due diligence in researching the
property.
While the Commissioner attempts to convey correct and accurate
information, it is the duty of the prospective purchaser to verify all
information and consult with legal or real estate experts before bidding. Any
photos, maps, or other information provided through the Commissioner's office
or website may not accurately show the property in question, and the
Commissioner makes no guarantees that such information is correct or accurate
and disclaims any warranties, either express or implied, or representation with
respect to any parcels of land offered for sale. Further, the Commissioner does
not guarantee the usability of, access to, or suitability for a particular
purpose of any of these lands, including availability of services to the
property. This includes information found on the Commissioner's website,
information obtained through a link from the Commissioner's website, and
comments or statements made by employees of the Commissioner. The information
provided in the website and by the Commissioner's office is for general
guidance only and is not intended to constitute legal advice.
SUBTITLE F PRE-SALE NOTICE
Certain information must be included in pre-sale notices
published in newspapers and pre-sale notices sent by mail. Failure to include
certain information required by statute may invalidate a sale of the land. Only
an Owner or Interested Party may challenge the validity of a notice to
substantially comply with the notice statutes. The required contents of notices
follow.
1. Notice of Sale by
Publication
(a) A notice of sale will be
published by the Commissioner in a newspaper having general circulation in the
county where the land is located.
(b) In most cases, the sale will take place
in the county where the land is located.
(c) The published notice shall contain the
following;
(1) The assessed value of the
land;
(2) The amount of taxes,
penalties, interest, fees, and the costs of the sale;
(3) The name of the Owner;
(4) A list of all Interested Parties as
identified by the Commissioner;
(5)
The legal description and parcel number identifying the land: a partial or
abbreviated legal description shall be sufficient in the notice if the name of
the Owner and parcel number are listed;
(6) A deadline at which time Bids must be
delivered and payment in full must be received from the purchasers;
and
(7) The land will be sold to
the highest bidder provided the Bid is equal to the taxes, penalties, interest,
fees, and costs owed on the land.
(d) Being listed in a public notice does not
convey status to an individual or entity determining that it is an Owner or
Interested Party.
(e) Other
information may be included in the notice of sale if it is in the best interest
of the State to do so.
2. Notice of Sale by Mail
(a) A notice of sale will be sent by
certified mail to the following:
(1) The Owner
at the Owner's last known address as certified by the county.
(2) All Interested Parties and any person who
may be otherwise known to the Commissioner as having a potential interest. Mere
notice of sale does not convey legal status to the recipient that it is an
"interested party" as defined under the statutes or these Rules.
(3) Sending or receipt of notice of sale does
not convey status to an individual or entity determining that it is an Owner or
Interested Party.
(b)
The Commissioner shall not be required to send notice by certified mail or any
other means to a person, firm, corporation, partnership, or other legal entity
whose title to or interest in the tax-delinquent land is:
(1) Obtained after Certification to the
Commissioner; or
(2) Expired,
barred, released, or otherwise terminated before the date of sale regardless of
whether a bona fide recorded instrument reflects the termination of the title
or interest.
(c) If
notice by certified mail is returned unclaimed or refused, notice will be sent
by regular mail.
(d) If notice is
returned undelivered for any other reason, notice will be sent to the Owner or
Interested Party at any additional address reasonably identifiable through the
examination of the real-property records properly filed and recorded in the
office of the county recorder where the land is located as follows:
(1) The address shown on the deed to the
Owner;
(2) The address shown on the
deed, mortgage, assignment, or other filed and recorded document to the
Interested Party; or
(3) Any other
corrected or forwarding address on file with the county collector or county
assessor.
(e) The notice
by mail will also contain the following;
(1) A
partial or abbreviated legal description and the parcel number;
(2) A statement that the land will be sold if
not redeemed prior to the date of sale; and
(3) The sale date.
3. Notice on Homesteads
In the instance of a tax-delinquent parcel that has been claimed
as a Homestead and designated as a Homestead by the county assessor under
Arkansas law, the Commissioner shall send notice through a process server at
least sixty (60) calendar days before the sale, if notice has not been received
by certified mail. When a Homestead is owned by a husband and wife as tenants
by the entirety, notice to one spouse suffices.
SUBTITLE G POST-SALE NOTICE
After any sale, whether at a Tax Delinquent Property Auction or
an Unsold-Property Auction, notice of the sale must be sent as follows:
1. The Commissioner must notify the Owner and
Interested Parties of the right to redeem the property within ten (10) business
days after the date of sale by paying the amount of taxes, penalties, interest,
fees, and other costs due on the property, including the cost of
notice.
2. This notice must be sent
by regular mail to the last-known address of the Owner and any Interested
Parties.
3. If the property is not
redeemed within this Redemption period, a Limited Warranty Deed will be issued.
SUBTITLE H TITLE BEING
CONVEYED
The Commissioner will issue a Limited Warranty Deed conveying to
the purchaser all rights, title, and interest received by the State in the
tax-delinquent property through tax forfeiture. This deed is limited in nature
and often requires subsequent legal action by the buyer to obtain full
marketable title. The Commissioner does not warrant that the title it conveys
is free of defect or other fault. The buyer is responsible for conducting all
research regarding the parcel, including, but not limited to, consulting with
private legal counsel and/or a licensed abstractor and performing a title
search before bidding. The Commissioner or his employees cannot give legal
advice to the public.
Title insurance companies may or may not issue title insurance on
parcels purchased at these sales, and the Commissioner makes no representation
as to the availability of title insurance on these parcels. The unavailability
of title insurance is not grounds for cancelling a sale or other reconveyance
to the State.
SUBTITLE I
REDEMPTION OF TAX-DELINQUENT PROPERTY
1. Until
tax-delinquent property is sold or disposed of by the State, a person who
wishes to redeem the property shall submit the following to the Commissioner:
(a) A petition to redeem the property that
may be obtained by request through the Commissioner's website,
http://www/cosl.org/, or by contacting the Commissioner's office;
(b) A sum of money equal to the amount of
outstanding taxes, penalties, interest, fees, and costs due and owing at the
time the petition is received by the Commissioner's office; and
(c) Such other documentation that the
Commissioner may require.
2. The petition to redeem shall include a
signature verified by the petitioner.
3. The total amount due on a petition to
redeem is valid for thirty (30) calendar days from the date requested, unless
the property has been sold, the records have been amended by a county, or
additional costs, fees or taxes accrued. The amount is subject to increase
within this thirty (30) calendar day period if actual costs, fees, and taxes
are added. If the petition date has expired or additional costs have accrued,
an updated petition to redeem must be requested.
4. Petitions and payments must be received in
the Commissioner's office prior to the petition's expiration date or prior to
the expiration of the Redemption period, whichever is earlier. Postmarks will
not be accepted. To avoid the sale of the property, a properly completed, up to
date, petition to redeem with all required documentation must be timely
submitted, along with full payment of the past due amount. Deadlines are
strictly enforced.
5. Partial
payments will not be accepted. Meeting part of any of the Redemption
requirements will not result in redeeming the property. Incomplete or incorrect
petitions to redeem will be returned and will not extend the Redemption
period.
6. Payment tendered at
least thirty (30) calendar days before or no later than ten (10) business days
following the sale date, must be made in cash, Certified Funds, or as provided
in §
26-37-302.
7. If tax-delinquent property is sold at Tax
Delinquent Property Auction or Unsold-Property Auction, anyone wishing to
redeem the property has ten (10) business days, business days do not include
weekends or nationally recognized holidays, the calculation of which begins the
day after the date of the sale, during which to redeem the property.
8. Upon Redemption, a Redemption Deed will be
issued by the Commissioner and filed with the county. If the parcel has sold
and is not redeemed, a Limited Warranty Deed to the purchaser will be issued.
If the parcel did not sell, it will remain on the records accruing additional
taxes, penalties, interest, fees, and costs and will be subject to an
Unsold-Property Auction.
SUBTITLE
J PENALTIES
1. The Earnest Money
tendered on the day of the sale will be forfeited by the successful bidder in
the event the check or payment method used to pay the balance is returned for
insufficient funds or for any other reason deemed to be in conflict with these
Rules or the law.
2. Pursuant to
the provisions of Ark. Code Ann. §§
5-37-301 through 307, "The
Arkansas Hot Check Law," the maker of checks returned to the Commissioner for
insufficient funds may be prosecuted.
3. The Commissioner reserves the right to
exclude any individual, partnership, corporation, or other legal entity from
the bidding process for failure to abide by these Rules or for failure to carry
on business in good faith.
SUBTITLE
K LEGAL ACTION AGAINST THE CONVEYANCE
1. The time period during which legal action
must be commenced is as follows:
(a) Actions
to contest the validity of the deeds issued subsequent to August 16, 2013, the
effective date of Act 1231 of 2013, must be filed within ninety (90) calendar
days after the date of conveyance. The statute may be further amended to either
lengthen or shorten the litigation period, and these Rules shall at all times
be read to reflect the version of Ark. Code Ann. §
26-37-203
applicable at the time of sale of the property being litigated.
(b) Act 1231 of 2013 amended Arkansas Code
§
26-37-203
to a ninety (90) day litigation period. Previous versions of this statute
allowed for a one (1) or two (2) year litigation period. The litigation period
of any parcel purchased from the Commissioner of State Lands should be
determined by consultation with private legal counsel.
(c) Any purchaser taking action or expending
money with respect to the property, prior to the expiration of the ninety (90)
day litigation period, does so at their own risk. Any funds spent during this
period may not be recoverable in the event of a successful challenge.
2. If the sale is set aside by
legal action or if the land is proven to be non-existent or double assessed,
the purchaser shall be entitled to a reimbursement of money paid to the
Commissioner, interest not accruing thereon.
3. If the sale is set aside by the
Commissioner, the purchaser may be entitled to a reimbursement of money paid to
the Commissioner, interest not accruing thereon.
SUBTITLE L FEES
(1) The Commissioner of State Lands shall
collect the following fees:
(a) Emerged Land
Deeds issued pursuant to §§
22-5-404,
22-5-405.....................................$
5.00
(b) Deeds to 16th section
school lands under §
22-5-407..........................................................5.00
(c) Quitclaim deed of mineral interest under
§
22-6-502.............................................................5.00
(d) Issuance of duplicate deeds and patents
under §
22-6-104.................................................5.00
(e) Issuance of original patents under §
22-6-105.......................................................................5.00
(f) Redemption deeds issued under §
26-37-310......................................................................5.00
(g) Issuance of sale
deeds............................................................................................................5.00
(h) Double entry statements
..........................................................................................................3.00
(i)
Disclaimers.................................................................................................................................3.00
(j) For each page of field notes issued by
the office of the Commissioner of State Lands
...................................................................................................................................................
0.50
(k) A fee of five dollars
($5.00) plus actual cost for each General Land Office plat copied and
distributed.
(2) The
Commissioner of State Lands shall charge a collection fee of twenty-five
dollars ($25.00) against all tax delinquent land redeemed or sold by the
Commissioner of State Lands, except the fees charged for the redemption of
severed mineral interests shall not include the twenty-five- dollar collection
fee.
(3) For each certificate of
donation to forfeited lands issued by the Commissioner of State Lands, there
shall be paid a fee of ten dollars ($10.00).
(4) For each donation deed issued by the
Commissioner of State Lands, there shall be paid a fee of one dollar
($1.00).
(5) The fee for each
required publication of delinquent real property tax lists shall be one dollar
and fifty cents ($1.50) per tract per insertion.
Title 2
: Sales at Tax Delinquent
Property Auctions
SUBTITLE A
REGISTRATION
Registration will take place prior to the time of sale as
specified in the notice. No Bids will be accepted unless the bidder has
registered and received a pre-numbered bid card. A valid drivers' license
number, expiration date, and issuing state must be provided as part of the
registration process. Bidders may be required to show a photo
identification.
SUBTITLE B
BIDDING AT TAX DELINQUENT PROPERTY AUCTIONS
1.
Bidding at a Tax Delinquent Property Auction:
(a) Subject to proper registration as
outlined in Subtitle A of this section, Bids may be made at a Tax Delinquent
Property Auction on the day of the sale.
(b) Each parcel of land will be offered in
the order appearing on the bid list.
(c) An oral Bid accepted at a Tax Delinquent
Property Auction is a legal and binding contract to purchase. By registering to
Bid, a bidder consents to abide by these rules. Any failure to abide by these
rules, the terms of the sale, or a failure to make payment as required may
result in the bidder being barred or excluded from future auctions and may
result in legal action against the bidder to enforce the terms of
sale.
2. Bidding by Mail
(a) Bids by mail must be received by the
Commissioner, along with payment in full of the amount Bid, no later than seven
(7) days prior to the published date of the public sale. The first one hundred
dollars ($100) must be paid by Certified Funds and the remaining balance can be
paid by check.
(b) Bids received by
the Commissioner by mail prior to the sale date will be announced immediately
preceding the Tax Delinquent Property Auction of the parcel.
(c) Unsuccessful mail-in Bid amounts will be
returned.
3. Who May Bid
(a) Any person, corporation, association,
other legal entity, or agent thereof may Bid on the parcels offered, except
that the following may not Bid or purchase property through a tax sale, whether
directly or indirectly:
(1) The Commissioner
and his or her employees;
(2) The
county collector or his or her deputy;
(3) An individual or entity whose home of
record is outside the United States; and
(4) A former Owner or Interested
Party.
(b) Persons or
entities that have won previous auctions and did not pay may be prohibited from
bidding. Any persons or entities that have won previous auctions and submitted
payment via a check with insufficient funds may be prohibited from bidding or
may be required to pay in Certified Funds if permitted to Bid.
(c) Effective July 1, 2021, in the event it
is determined that a tax-delinquent parcel previously certified to the
Commissioner has been purchased by an individual or entity whose home of record
is outside the United States:
(1) The deed
shall be cancelled by the Commissioner within three (3) business days of the
determination;
(2) Any and all
moneys originally paid to the Commissioner for the parcel are immediately
forfeited to the Commissioner; and
(3) The parcel is immediately considered
certified without further action to the Commissioner as tax
delinquent.
4.
Bidding at a Tax Delinquent Property Auction in General
(a) When bidding on property at a Tax
Delinquent Property Auction, the following procedures apply:
(1) The minimum Bid amounts are shown on the
list. The minimum Bid amount is equal to the delinquent taxes, penalties,
interest, fees, and costs as calculated by the Commissioner and based upon
Certification by the county.
(2)
Each sale will be made to the highest responsible bidder for not less than the
minimum Bid amount.
(3) Successful
bidders at the auction will receive certificates of purchase for payments
made.
(b) The
Commissioner reserves the right to reject any or all Bids.
5. Terms of Sale
(a) The full purchase price is equal to the
highest amount Bid.
(b) Successful
bidders at a Tax Delinquent Property Auction must tender the full purchase
price at the time of the sale. Failure to do so may result in a prohibition on
bidding in any or all future land sales.
(c) Bids by mail must include the full
purchase price. DO NOT SEND CASH BY MAIL.
(d) When purchased at the Tax Delinquent
Property Auction, the Earnest Money for each parcel purchased must be paid in
cash or Certified Funds, with the balance payable by personal check or
Certified Funds. No deed will be issued until clearance is assured by the bank
or lending institution on which such checks are drawn. Payment by credit or
debit card is subject to a non-refundable processing fee charged by the issuing
credit card company.
(e) All
Certified Funds and personal checks should be made payable to the "Commissioner
of State Lands."
(f) No purchase
may be made on a time-payment plan. It is the bidder's responsibility to
already have acceptable funds available for payment.
(g) Upon payment of the full purchase price,
the successful bidder will receive a Certificate of Purchase from the
Commissioner.
(h) Owners, their
agents, or assigns and other Interested Parties have ten (10) business days
from the date of the sale to redeem the property.
(i) In the event of Redemption, the purchaser
at the sale will receive a full refund, less any non-refundable processing fees
charged by the issuing credit card company, no interest accruing.
(j) If no Redemption occurs, the purchaser
will receive a Limited Warranty Deed from the Commissioner.
(k) The Commissioner reserves the right to
cancel any sale.
SUBTITLE
C PAYMENT AND ISSUANCE OF LIMITED WARRANTY DEED
Payment of the full purchase price is due upon the acceptance of
the Bid by the Commissioner. Acceptable payment methods include: personal
check, Certified Funds, or, if paying in person, cash or credit or debit card.
Payments made with insufficient funds will cancel the sale, and forfeit the
payment of the Earnest Money of each parcel purchased. Additionally, the
purchaser may no longer be allowed to purchase properties from the
Commissioner.
If property has not been redeemed by the tenth
(10th) business day after full payment of the Bid
amount was received, the Commissioner shall issue a Limited Warranty Deed in
the name of the successful bidder.
SUBTITLE D ANNOUNCEMENTS AT TAX DELINQUENT
PROPERTY AUCTIONS
Any formal announcements made by the auctioneer on the day of the
sale take precedence over previously published or verbally conveyed terms and
conditions. Answering questions or making comments does not constitute a formal
or public announcement.
Listing a property in the sale catalog does not guarantee
availability on the day of the Tax Delinquent Property Auction. Parcels may be
redeemed prior to the auction date or otherwise removed from the auction list
at the Commissioner's discretion. A list of parcels stricken from the sale
catalog will be posted or announced at the auction.
Title 3
: Unsold-Property
Auctions
SUBTITLE A WHEN A PARCEL
BECOMES ELIGIBLE FOR AN UNSOLD-PROPERTY AUCTION
Thirty (30) calendar days following the initial Tax Delinquent
Property Auction, all parcels not sold at the Tax Delinquent Property Auction
shall be placed on the Unsold-Property Auctions list maintained by the
Commissioner. This list shall be placed on the Commissioner of State Lands'
website, http://www.cosl.org/.
Listing a property on the Unsold-Property Auctions list does not
guarantee availability on the date a Bid is received. Parcels may be sold,
redeemed, or otherwise removed from the auction list at the Commissioner's
discretion. The Commissioner has no liability for parcels that appear on the
Unsold-Property Auctions list that are subsequently not available. Potential
purchasers should carefully research the parcels they intend to purchase prior
to submitting Bids. The Commissioner reserves the right to reject any or all
offers.
The Unsold-Property Auctions will be conducted online, and Bids
will only be accepted online.
SUBTITLE
B REGISTRATION
Prior to placing any online Bid, prospective bidders must
complete an initial online registration. This registration will provide each
bidder with a unique identifier that will be used in the event the bidder
wishes to make multiple purchases either at the time of registration or at a
future online auction. The registration shall include the following:
1. Accurate credit card or debit card
information;
2. Acknowledgement and
agreement that the payment method provided shall be immediately charged the
$100.00 Earnest Money if his or her Bid is successful; and
3. A valid drivers' license number,
expiration date, and issuing state.
No Bids will be accepted unless the bidder has provided accurate
payment information, and failure to pay based on the inability to process
payment based on the information provided may result in refusal to accept
future Bids.
SUBTITLE
C BIDDING AT UNSOLD PROPERTY AUCTIONS
1. Bidding
(a) Online bidding for the Unsold-Property
Auctions parcels shall not be available to the public until the parcel is added
to the Unsold-Property Auctions list.
(b) No Bid shall be accepted unless all
requirements for registration are met.
(c) An online Bid shall be considered a
binding offer to purchase and shall obligate the potential purchaser to the
terms and conditions published online and set forth in these Rules.
2. Auction Period
(a) The auction period begins on the
Unsold-Property Commencement Date and shall end upon the Unsold-Property
Auction Closing Date
(b) On the
Unsold-Property Auction Closing Date, bidding will close as follows:
(1) Except as hereinafter provided in this
subsection (b), bidding automatically closes promptly at 8:00 p.m. CT, after
which time, no other Bids may be submitted;
(2) If a Bid has been submitted after 7:55
p.m. CT, but before 8:00 p.m. CT, bidding will be extended until an interval of
five (5) minutes has passed from the last Bid placed, at which time, bidding
shall close;
(3) Notwithstanding
the foregoing, in no event shall Bids be accepted later than 11:59 p.m. CT on
the Unsold-Property Auction Closing Date.
3. Notification and Acceptance of Bid
(a) On the Unsold-Property Auction Closing
Date, the successful bidder shall be notified by the Commissioner that his or
her Bid has been successful;
(b)
Upon this notification, the successful bidder's payment method provided at
registration shall immediately be charged the $100 Earnest Money; provided,
however, if the successful Bid is an amount less than one hundred dollars
($100.00), the full Bid amount shall be charged as Earnest Money and payment in
full;
(c) Commencing on the date of
this notification, the successful bidder shall tender the entire amount of the
Bid within ten (10) business days by payment in Certified Funds.
(d) In the event the successful bidder fails
to tender the full amount of the Bid within the time specified herein, the Bid
shall be considered void, and the next-highest bidder shall be notified by the
Commissioner that his or her Bid has been successful, and the procedure in the
preceding subsections (a) through (c) shall be followed.
(e) Failure of a successful bidder to tender
the Earnest Money or the full purchase price within the specified time may
result in revocation of registration and a prohibition on bidding in any or all
future land auctions.
4.
Who May Bid
(a) Any person, corporation,
association, other legal entity, or agent thereof may Bid on the parcels
offered, except that the following may not Bid or purchase property through a
tax sale, whether directly or indirectly:
(1)
The Commissioner and his or her employees;
(2) The county collector or his or her
deputy;
(3) An individual or entity
whose home of record is outside the United States; and
(4) A former Owner or Interested
Party.
(b) Any persons
or entities that have won previous auctions and submitted payment via a check
with insufficient funds, provided payment information upon which funds could
not be drawn or otherwise failed to pay may be prohibited from
bidding.
(c) Effective July 1,
2021, in the event it is determined that a tax-delinquent parcel previously
certified to the Commissioner has been purchased by an individual or entity
whose home of record is outside the United States:
(1) The deed shall be cancelled by the
Commissioner within three (3) business days of the determination;
(2) Any and all moneys originally paid to the
Commissioner for the parcel are immediately forfeited to the Commissioner;
and
(3) The parcel is immediately
considered certified without further action to the Commissioner as tax
delinquent.
5. Terms of Sale
(a) The full purchase price is equal to the
amount of the successful Bid.
(b)
Once a bidder is notified that his or her Bid has been successful, the Earnest
Money for each parcel purchased shall be immediately paid by processing the
payment method provided at registration.
(c) The balance of the Bid, less the Earnest
Money already paid, shall be payable by Certified Funds.
(d) Payment by credit or debit card is
subject to a non-refundable processing fee charged by the issuing credit card
company.
(e) All Certified Funds
should be made payable to the "Commissioner of State Lands."
(f) No purchase may be made on a time-payment
plan. It is the bidder's responsibility to already have Certified Funds
available for payment.
(g)
Redeemers have ten (10) business days from the date of the sale to redeem the
property.
(h) In the event of
Redemption, the purchaser at the sale will receive a full refund, less any
non-refundable processing fees charged by the issuing credit card company, no
interest accruing.
(i) If no
Redemption occurs and payment of the full purchase price is received, the
purchaser will receive a Limited Warranty Deed from the Commissioner.
(j) The Commissioner reserves the right to
cancel any sale.
SUBTITLE
C NOTICE OF THE UNSOLD-PROPERTY AUCTIONS
On the Unsold-Property Auction Commencement Date, the
Commissioner shall send notice to the Owner and Interested Parties by certified
mail and regular mail in the manner prescribed in Title 1 above.
Purchasers can expect the Unsold-Property Auction process to
follow two distinct periods:
1. Upon
the Unsold-Property Auction Commencement Date, a thirty (30) calendar day
period follows during which the following occur concurrently:
(a) Additional online Bids may be placed
beginning on the Unsold-Property Auction Commencement Date and ending on the
Unsold-Property Auction Closing Date; and
(b) Pre-sale notices are sent pursuant to
Title 1, Subtitle F hereof.
(c) The
expiration of this thirty (30) day period is deemed the sale date.
2. The sale date begins a ten
(10)-business day period during which period the following occur concurrently:
(a) Post-sale notices are sent pursuant to
Title 1, Subtitle G hereof., notifying requisite parties of the statutorily
prescribed ten (10)-business day Redemption period following the sale date;
and
(b) Successful bidders must
submit the full remaining balance owing on the Bid in the manner provided
hereinabove.
SUBTITLE
D RESERVE BID AMOUNTS
For Unsold-Property Auctions held within the first two (2) years
following the date of the Tax Delinquent Property Auction, the Reserve Bid
Amount will be set at an amount equal to the taxes, penalty, interest, and
costs of the sale.
For Negotiated-Price Auctions, the Reserve Bid Amount will be set
at an amount the Commissioner determines to be in the best interests of the
state and the local-taxing units
SUBTITLE
E PAYMENT AND ISSUANCE OF LIMITED WARRANTY DEED
Payment by Certified Funds is due and payable upon notice that a
Bid is successful and must match the total amount Bid less Earnest Money paid.
Payments made after the ten (10) business day payment period or made with
insufficient funds will cancel the sale, and the bidder shall forfeit the
payment of the Earnest Money of each parcel purchased. Additionally, the
purchaser may no longer be allowed to purchase properties from the
Commissioner.
If property has not been redeemed by the tenth
(10th) business day, the Commissioner shall issue a
Limited Warranty Deed in the name of the successful bidder.
SUBTITLE F REPORTING REQUIREMENTS
The Commissioner of State Lands shall submit quarterly reports to
the Legislative Council or, if the General Assembly is in session, the Joint
Budget Committee, listing all tax-delinquent land sold at Unsold-Property
Auctions, including a Negotiated-Price Auction.
Title 4
: Excess Proceeds
Any money collected through the sale of tax-delinquent property
that is above the amount of the taxes, fees, penalties, interest, and costs due
at the time of sale shall be deemed Excess Proceeds. Such Excess Proceeds shall
be distributed upon application according to statute, and any remainder shall
be held in trust by the Commissioner for the former Owner.
SUBTITLE A ORDER OF DISTRIBUTION
1. Within one (1) calendar year of the
receipt of the Excess Proceeds by the Commissioner, the funds shall be
distributed as follows:
(a) To the
Commissioner to pay penalties, collection fees, sale costs, and other costs as
may be provided by law; and
(b) To
the county to pay the delinquent taxes, interest, and costs.
2. The remaining Excess Proceeds
shall be held for one (1) year following the date of the Limited Warranty Deed.
After the one-year period has expired, upon submission and approval of the
application from the relevant governmental entity, the Excess Proceeds are
distributed as follows:
(a) To the county to
satisfy delinquent personal property taxes and penalties;
(b) To the Department of Finance and
Administration to satisfy delinquent taxes, penalties, and interest for which
certificates of indebtedness have been filed;
(c) To the county to satisfy delinquent solid
waste assessments, plus penalty and interest;
(d) In the event the Commissioner is required
to make a refund to the purchaser of the property for the taxes or assessments
withheld pursuant to this subsection, the amount of the refund shall be
recovered by the Commissioner from the county, counties, or department that
originally received the proceeds under this title.
3. If any Excess Proceeds remain following
the above distributions, the remainder is distributed as follows:
(a) Ten percent (10%) of the remaining funds
up to a maximum of five hundred dollars ($500) shall be paid to the
Commissioner for the administration of the distribution of Excess Proceeds;
however, the amount paid to the Commissioner shall not be a sum less than the
amount necessary to pay filing fees required to record any deeds;
(b) The remainder shall be paid to the former
Owner of the property upon submission of a complete application packet and any
other documents required by the Commissioner from the former Owner, and upon
the approval of the Commissioner.
SUBTITLE B SUBMITTING A CLAIM
1. Who Can Submit a Claim
(a) Former Owners can claim Excess Proceeds,
subject to the following:.
(1) The former
Owner must have held record title to the property at the time of the
sale;
(2) If the former Owner is a
corporation, partnership, or other legal entity, it must be capable of owning
real property in the State of Arkansas;
(3) Former owner does not include heirs or
relations beyond the first degree of consanguinity.
(b) Heirs or relations within the first
degree of consanguinity can claim Excess Proceeds, subject to the following:
(1) Such heirs must be directly related
within the first generation, which generally means they are only the parents,
children, or siblings of the former Owner;
(2) Additional documentation to claim as an
heir shall be required and includes such information as the death certificate
of the former Owner, any probate records related to the former Owner, the birth
certificate of the heir, an affidavit of heirship from a disinterested third
party, and such other information as the Commissioner may require;
(3) Any application by an heir who is beyond
the first degree of consanguinity shall be rejected and not
considered.
(c) A former
Owner, part-Owner, or Interested Party who purchases property at a tax sale is
not entitled to a distribution of Excess Proceeds.
2. Submitting the Claim
(a) A claim packet may be obtained through
the Commissioner's website,
http://www.cosl.org/ or by calling the
Commissioner's office and requesting that a packet be mailed.
(b) A complete claim packet must include all
of the following, or it will be returned to the claimant:
(1) A claim form;
(2) A deed of release;
(3) A release and indemnification;
(4) A third-party release and
indemnification;
(5) The claimant's
W-9;
(6) A copy of the deed vesting
title in the former Owner;
(7)
Proof that the former Owner received mail at the address certified by the
county;
(8) Two forms of
identification, one of which must be a picture ID; and
(9) Any other information that the
Commissioner may require in support of the claim.
(c) If the claim is submitted by an heir, the
documentation set forth in subsection 2(b)(2) of this title must also be
provided.
(d) If the claim involves
the services of a third-party agent, the following must also be provided:
(1) A copy of the signed contract between the
agent and the former Owner, which may not allow for a fee of greater than ten
percent (10%) of the Excess Proceeds to be paid to the agent; and
(2) A third-party release and indemnification
signed by the third-party agent.
(e) If the former Owner was a corporation,
partnership, or other legal entity, the following must additionally be
submitted:
(1) Documents establishing
authority of the person to act on behalf of the legal entity; and
(2) A current certificate of good standing
for the entity.
SUBTITLE C APPROVAL OF CLAIMS
1. The claim shall be denied if the above
requirements are not strictly met.
2. Submission of a claim does not guarantee
the approval of the claim.
SUBTITLE
D PERIOD OF TIME FOR SUBMISSION OF CLAIMS
1. The Excess Proceeds are held for a period
of two (2) years, or as determined by the requirements of the law at the time
the property was sold.
2. If the
Excess Proceeds are not distributed during the time period pertaining to the
specific parcel, they shall escheat by operation of law to the county where the
tax-delinquent property sold is located.
3. Funds held by the Commissioner past the
date required to escheat to the county by statute belong to the county and are
not subject to recovery by the former Owner or anyone
else.
