TAX DEED STATE PROFILE - ARKANSAS
Tax Deed Sales: Yes. The State Land Commission handles all county tax sale auctions. Mail-in bids are accepted if received 7 days before the sale. If a mail-in bid is received, bidding will start at that amount.
Over-the-Counter Tax Deed Sales: Yes. Tax-defaulted properties that are not purchased at a county’s annual tax deed sale will be available on the negotiated sales list 90 days after the sale.
These properties may be purchased by mail or in person at the Commissioner of State Lands Office. To purchase, you must submit a sealed bid. The first negotiated sales bid starts a 30-day process during which anyone else can submit a closed bid.
The highest bidder wins, but the property owner still has 30 days to redeem. If the property owner redeems, the investor will be refunded his/her money, with no interest.
Rating: Three Stars (***)
Sale Period : Depends on the county. Tax deed sales are conducted throughout the year. Call (501) 324-9222 to find out when sales will be held. Anyone can be placed on a mailing list for a catalog of available properties by contacting the Commissioner of State Lands. The catalog is free.
Catalog lists properties for sale, and minimum bid amounts (equal to assessed land value, taxes due and any other fees). Be sure to check the website for the latest redemptions.
Redemption Period: Property owners have a 30-day extended right of redemption following the tax deed sale. If redeemed, the investor receives his/her money back with no interest. If not redeemed, the investor receives a limited warranty deed to the property.
Bidding Process: At tax deed sales, all auctions are by competitive bid. The minimum bid is generally set at the assessed value, which is roughly 20 percent of the appraised value.
The bidder is also responsible for back taxes and fees. The winning bidder pays the highest value for the property. Bids can be in person at auction or by mail.
If bidding at the auction, you must pay the first $100 with cash, cashier’s check or money order. If bidding by mail, the Commissioner of State Lands must receive the entire bid amount seven days prior to the auction.
Properties not sold at auction are offered for sale 90 days after the auction. Properties that did not sell are broken into three categories:
1. S-2 Land Sales (less than one year has elapsed since first offered at auction)
2. S-3 Land Sales (more than one year has elapsed since first offered at auction) and
3. S-4 Land Sales (more than two years have elapsed since first offered at auction). S-4 Land Sales are negotiable, since the county wants to get rid of these properties.
Legal Challenge Period: Arkansas has a two-year litigation period during which the sale can be challenged. For S-4 properties, the litigation period may only be 90 days if the property is classified as a “lot.”
State-Specific Information: Arkansas is probably one of the best states for tax deed sales; however, the two-year litigation period makes clearing the title difficult.
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