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 parcels to the
Commissioner of State Lands (the "Commissioner"). Upon certification, legal
title to the parcels 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 parcels are 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
parcels or, if the delinquent taxes are not paid in full before the date set
for sale, selling the parcels. The Commissioner offers the parcels for sale at
a public auction. If the parcel does not sell, then the Commissioner offers the
parcel 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repealed pursuant to law.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Commissioner are hereby superseded and repealed insofar as they may be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
parcels that have 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 parcel made by a
prospective buyer, whether in person or online.
Business Day- A Monday, Tuesday, Wednesday,
Thursday, or Friday that is not otherwise observed as an official state
holiday.
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.
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 an Online Auction Sale.
Excess Proceeds- Money received from a Bid or sale
that is in excess of the taxes, fees, penalties, interest, and costs due on the
parcel 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 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, or
partnership holding title to or an interest in the tax-delinquent parcel by
virtue of a recorded instrument at the time of Certification.
Limited Warranty Deed- A unique deed generated by
the Commissioner that conveys a limited interest in a parcel in exchange for
the purchaser paying the accepted Bid amount for the parcel. In most instances
a Limited Warranty Deed is used by a purchaser to quiet title to the parcel and
receive full marketable title in fee simple from a court.
Litigation Period- The maximum time after the sale
of a tax-delinquent parcel 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, fees
and costs of the sale. Negotiated-Price Auctions are held solely online.
Notice of Sale- Notification sent to the Owner or
other Interested Parties as identified by the Commissioner, as having a
potential interest in a tax-delinquent parcel 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 parcel, unless they take immediate action to pay the
taxes, penalties, interest, fees, and costs due. Notice is also provided by
publication in a newspaper having general circulation in the county where the
parcel is located.
Owner- Any person, firm, corporation, or partnership
holding title to or an interest in the tax-delinquent parcel by virtue of a
recorded instrument at the time of Certification.
Purchaser Summary-A receipt provided at the
conclusion of a Tax Delinquent Auction which verifies that a person or entity
is the successful bidder and has tendered payment in an acceptable form. A
Purchaser Summary does not convey title or guarantee a Limited Warranty Deed
will be issued.
Redeemer- Either the Owner of the parcel or any
other person, firm, corporation, or partnership without an existing ownership
interest in the parcel who redeems the parcel by paying all taxes, penalties,
interest, fees and costs due.
Redemption/Redeem- An action of payment to the
Commissioner of all delinquent taxes, penalties, interest, fees and costs due
to extinguish the state's interest in the parcel. Upon Redemption, a Redemption
Deed will be issued.
Redemption Deed- A deed issued by the Commissioner
which serves as proof that payment has been received and the state's interest
is extinguished by the redemption. Issuance of a redemption deed does not
convey any title in or establish ownership to the parcel being redeemed. A
Redemption Receipt will be issued to the Redeemer in the event the redeemer is
not the certified record owner.
Redemption Receipt- A receipt issued to a Redeemer
certifying payment in the event the Redeemer is not the certified record
owner.
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 parcels where bidders are physically assembled and Bids
accepted.
Taxes- As used herein, the use of the term "taxes"
shall include any and all taxes, penalties, interest, fees, and costs due and
owing on the parcel. Any amounts owing continue to accrue additional taxes,
penalties, interest, fees, and costs until such time as the parcel is either
sold or Redeemed.
Unsold-Property Auction - A sale consisting of Bids
placed online on a tax-delinquent parcel that was previously offered at a Tax
Delinquent Property Auction but not sold. An Unsold-Property Auction is
initiated solely by an online offer being made on the unsold parcel and is sold
to the highest bidder.
Unsold-Property Auction Closing Date- The thirtieth
(30th) calendar day from the date of the receipt of
the first online Bid for a parcel located on the Unsold-Property Auction 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 parcel located on the
Unsold-Property Auction list.
SUBTITLE
E
| PARCEL OFFERED FOR SALE
All parcels offered for sale by the Commissioner have been
certified to the State by the county in which the parcels are 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 parcel
is certified to the Commissioner.
The parcel 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 parcel is not identified by physical
address.
A list of tax delinquent parcels being offered for sale will be
available at the Tax Delinquent Property Auction or through the Commissioner's
website, https://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.
Offered parcels may be subject to liens or encumbrances,
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 and 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 parcel. Successful
purchasers acquire the parcel, both surface rights and mineral rights, if not
previously separated, in the 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 parcel for their
intended purpose and to exercise due diligence in researching the
parcel.
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 parcel 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 parcel offered for sale. Further, the Commissioner does not guarantee the
usability of, access to, or suitability for a particular purpose of any parcel.
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 certified mail and regular
mail. Failure to include certain information required by statute may invalidate
a sale of the parcel. Only an Owner or Interested Party may challenge the
compliance of 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 parcel is located.
(b) The published notice shall contain the
following:
(1) The amount of taxes, penalties,
interest, fees, and other costs due on the parcel;
(2) The name of the Owner;
(3) A list of all Interested Parties as
identified by the Commissioner;
(4)
The legal description and parcel number identifying the parcel: a partial or
abbreviated legal description shall be sufficient in the notice if the name of
the Owner and parcel number are listed;
(5) Indicate that the parcel will be sold to
the highest bidder provided the Bid is equal to the taxes, penalties, interest,
fees, and costs owed on the parcel.
(c) Being listed in a public notice does not
convey status to an individual or entity determining that it is an Owner or
Interested Party.
(d) Failure of
the notice to contain the information required in subsection (b) of this
section does not invalidate an auction sale of the parcel unless an Owner or
Interested Party did not receive notice in substantial compliance with §
26-37-301.
(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.
(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 parcel is:
(1) Obtained
after Certification to the Commissioner; or
(2) Expired, barred, released, or otherwise
terminated before the date of sale.
(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 parcel 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 parcel will be sold
if not redeemed prior to 4:00 p.m. CT on the last business day 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
| REDEMPTION NOTICE
All Redemptions must be received prior to 4:00 p.m. CT on the
last business day prior to the date of sale of a parcel, whether at a
Tax-Delinquent Property Auction or an Unsold-Property Auction, in the following
manner:
1. If a tax-delinquent parcel
is to be offered at an in-person Tax Delinquent Property Auction, then at least
thirty (30) calendar days prior to the date of the sale, the Commissioner shall
notify the Owner and any Interested Parties by regular mail of the right to
redeem the parcel prior to 4:00 p.m. CT on the last business day prior to the
date of the sale by paying the amount of taxes, penalties, interest, fees and
costs due on the parcel.
2. If a
tax-delinquent parcel is to be offered for sale online through an
Unsold-Property Auction when the first Bid is received, the Commissioner shall
notify the Owner and any Interested Parties by certified mail of the date of
the sale and the right to redeem the parcel before 4:00 p.m. CT on the last
business day prior to the date of the sale by paying the amount of taxes,
penalties, interest, fees and costs due on the parcel.
3. The notice required under this subtitle
must be sent to the last-known address of the Owner as certified by the county,
and any Interested Parties.
4. If a
parcel subject to paragraph 1 of this subtitle is not Redeemed by the deadline
stated in paragraph 1, the parcel shall be offered for sale at an in-person
Tax-Delinquent Property Auction, and if sold, a Limited Warranty Deed shall be
issued by the Commissioner to the purchaser.
5. If a parcel subject to paragraph 2 of this
subtitle is not Redeemed by the deadline stated in paragraph 2, upon sale of
the parcel, the Commissioner shall issue a Limited Warranty Deed to the
purchaser.
6. Payment to Redeem a
tax-delinquent parcel within thirty (30) days prior to the sale date shall be
made by certified funds, including without limitation, cash, credit card, debit
card, electronic check, escrow check, money order, cashier's check, or
certified bank check.
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 parcel 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.
Title insurance companies may or may not issue title insurance on
parcels purchased at these auctions, 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
re- conveyance to the State.
SUBTITLE I
| REDEMPTION OF TAX-DELINQUENT PARCELS
1. Until a tax-delinquent parcel is sold or
disposed of by the State, a person who wishes to redeem the parcel shall submit
the following to the Commissioner:
(a) A
petition to redeem the parcel that may be obtained by request through the
Commissioner's website,
https://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 parcel may be redeemed online through
the Commissioner's website,
https://www.cosl.org, by completing an
online petition and paying with a credit or debit card. If the parcel is
redeemed online, the petitioner is not required to submit a paper copy of the
Petition to Redeem.
4. The total
amount due on a petition to redeem is valid for thirty (30) calendar days from
the date requested, unless the parcel 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.
5. Effective July 1,
2023, petitions and payments must be received in the Commissioner's office
prior to the petition's expiration date or prior to 4:00 p.m. CT on the last
business day prior to the date of sale, whichever is earlier. Postmarks will
not be accepted. Deadlines are strictly enforced.
6. Partial payments, incomplete petitions or
incorrect petitions will not be accepted and will not extend the Redemption
period.
7. Payment to Redeem a
tax-delinquent parcel under this subtitle shall be made in cash, Certified
Funds, or as provided in §
26-37-302, if the Redemption
occurs within thirty (30) calendar days before 4:00 p.m. CT on the last
business day prior to the date of sale of either the Tax-Delinquent Auction or
an Unsold-Property Auction.
8.
Effective July 31, 2023, upon Redemption
(a)
If the Redeemer is the owner, a Redemption Deed and Redemption Receipt will be
issued in the name of the owner by the Commissioner and filed with the
county.
(b) If the Redeemer is not
the owner, a Redemption Deed will be issued in the name of the owner and a
Redemption Receipt will be issued to the Redeemer.
SUBTITLE J
|
PENALTIES
1. 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.
2. 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.
(a) Pursuant to
the provisions of Ark. Code Ann. §§
26-37-317, effective July 31,
2023, the Commissioner shall impose a penalty equal to the greater of ten
percent (10%) of the face value of the payment instrument or twenty dollars
($20.00) for any sale canceled, set aside, or held for naught for any of the
following reasons.
1. The payment instrument
is refused by the drawee because of insufficient funds; or
2. The maker or drawer of the payment
instrument stops payment; or
3. The
payment instrument tendered to the Commissioner is dishonored for any
reason.
3.
When a dishonored instrument is received:
(a)
The Commissioner will notify the issuer that the instrument has been
dishonored; and
(b) Provide the
issuer with a date by which the instrument must be made good.
(c) If the issuer fails to make good by the
specified date, the instrument plus the added penalty will be turned over for
collection.
4. Upon
failure or dishonor of a payment instrument, the Commissioner may issue a
cancellation deed setting aside the redemption deed or limited warranty
deed.
SUBTITLE K
|
LEGAL ACTION AGAINST THE CONVEYANCE1.
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 parcel being litigated.
(b) Act 1231 of 2013 amended Arkansas Code
§
26-37-203 to a ninety (90) day
litigation period. The litigation period of any parcel purchased from the
Commissioner should be determined by consultation with private legal
counsel.
(c) Any purchaser taking
action or expending money with respect to the parcel, 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 parcel is proven to be non-existent
or double assessed, or canceled by the Commissioner, the purchaser shall be
entitled to a reimbursement of money paid to the Commissioner, interest not
accruing thereon.
SUBTITLE
L
| FEES(1) The
Commissioner 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 ..............
|
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 shall charge a collection fee of twenty-five dollars ($25.00)
against all tax delinquent parcels redeemed or sold by the Commissioner, 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, there shall be paid a fee of ten
dollars ($10.00).
(4) For each
donation deed issued by the Commissioner, 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 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 Auction list maintained by the
Commissioner. This list shall be placed on the Commissioner's website,
https://www.cosl.org/.
Listing a parcel on the Unsold-Property Auction 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 Auction 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 Auction 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. This includes completing an identity (ID) verification
process. The registration shall include the following:
1. Completing the ID verification
process.
2. Accurate credit card or
debit card information;
3.
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
4. A valid driver's license
number, expiration date, and issuing state.
No Bids will be accepted unless the bidder has provided accurate
payment information and completed the ID verification process. 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
AUCTIONS1. 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 automatically close promptly
at 8:00 p.m. CT, after which time, no other Bids may be submitted;
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) 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 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 a parcel 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 monies 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) Effective July 1,
2023, in the event the payment for the Earnest Money fails, the sale will be
cancelled and the buyer may be prohibited from bidding in any or all future
auctions.
(d) The balance of the
Bid, less the Earnest Money already paid, shall be payable by Certified
Funds.
(e) Payment by credit or
debit card is subject to a non-refundable processing fee charged by the issuing
credit card company.
(f) All
Certified Funds should be made payable to the "Commissioner of State
Lands."
(g) No purchase may be made
on a time-payment plan. It is the bidder's responsibility to already have
Certified Funds available for payment.
(h) Effective July 1, 2023, in the event of
failure to pay the balance due after the Earnest Money has been paid, the
Earnest Money is forfeited to the Commissioner, the sale will be cancelled, and
the buyer may be prohibited from bidding in any or all future
auctions.
(i) If no redemption
occurs before 4:00 p.m. CT the last business day prior to the Unsold-Property
Auction Closing Date 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
D
| 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) Notices are sent pursuant to Title 1,
Subtitle F hereof.
2.
Effective July 1, 2023, the expiration of this thirty (30) day period is deemed
the Unsold-Property Auction date of sale.
SUBTITLE E
| 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, fees 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 interest of the
state and the local taxing units.
SUBTITLE F
| 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 of the 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 be prohibited from bidding in any or all future auctions.
After the Unsold-Property Auction Closing Date and receipt of
payment in full of the Bid amount, the Commissioner shall issue a Limited
Warranty Deed in the name of the successful bidder.
SUBTITLE G
| REPORTING
REQUIREMENTS
The Commissioner shall submit quarterly reports to the
Legislative Council or, if the General Assembly is in session, the Joint Budget
Committee, listing all tax-delinquent parcels sold at Unsold-Property Auctions,
including a Negotiated-Price Auction.
Title 4: Excess Proceeds
Any money collected through the sale of tax-delinquent parcels
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
DISTRIBUTION1. 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 parcel 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 parcel 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 parcel 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 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 a parcel 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,
https://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 parcel 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 parcel 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.
