Property Tax Liens in Arkansas

Property Tax Liens In Arkansas

Arkansas is “tax deed” state.

You are purchasing a deed to the property and not seeking interest income.

In Arkansas, tax sales are not handled by the county government. All sales are conducted by the Commissioner of State Lands for the State of Arkansas. These public auctions are however held locally in the county.

Real estate that is delinquent for one year is certified to the Arkansas State Land Commissioners office for tax collection or to sell by auction.

Arkansas conducts a public auction for tax delinquent property.

The highest bid wins the deed.

You will receive a Purchaser’s Certificate.

This “purchaser’s certificate” does NOT convey title or ownership to the property. It only states you have paid in full for your purchase at the auction.

The delinquent property owner still had a right to redeem the property for 10 business days after the auction.

If the taxes are not paid, a Limited Warranty Deed will be issued to you.

This deed is then sent to the circuit clerk’s office in the county where the property is located to be filed of record.

Once recorded, your deed will then be forwarded to you by mail.

A Limited Warranty Deed is basically the equivalent of a quitclaim deed. It only transfers the interest the state held in the property.

The sale is also subject to a 90 day litigation period beginning after the date of conveyance.

During this period, purchasers should not make any major changes or improvements to the property. If the sale is overturned in court, the purchaser will generally be entitled to a refund in full of the purchase price.

So basically, Arkansas in effect, works under two right of redemption periods.

Arkansas does allow bidding by mail. The mailed in bids received are announced prior to the public auction. Understand here if you bid by mail that any person present at the public auction may outbid you.

The State does allow for over the counter sales of properties that did not sell at public auction.

 

The deed purchaser will be refunded in the case of a redemption or contested sale but will not receive any interest or penalties.