RULE 135.00.87-001 - Rules and Regulations of the State Land Commission

RULE 135.00.87-001. Rules and Regulations of the State Land Commission

1. Land Offered for Sale

A. All land offered for sale by the Commissioner of State Lands has been certified to the State for non-payment of taxes from the county where the land is located.

B. The State owned property being offered is identified by legal description and/or parcel number as certified by the county.

C. The Commissioner of State Lands recommends that all prospective purchasers do their own research as to the use of the land for their intended purpose and make a personal Inspection of the property.

2. Notice of Sale

A. A notice of sale will be published by the Commissioner of State Lands 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. A notice of sale will be mailed to all interested parties known to the Commissioner.

3. Contents of the Notice of Sale

A. The assessed value of the land

B. The amount of taxes, interest, penalties and other costs due on the land.

C. The legal description of the land.

D. A list of all recorded liens against the land that are known to the Commissioner.

E. A deadline at which time bids must be delivered.

F. The land will be sold to the highest bidder provided the bid is equal to the assessed value of the land.

4. Registration at the Sale

A. Registration will take place prior to the time of sale as specified in the notice.

B. No bids will be accepted unless the bidder has registered and received a pre-numbered bid card.

5. Who May Bid

Any person, corporation or association or agent thereof may bid on the properties offered except that the Commissioner of State Lands and his employees, the County Collector or his deputy and the Clerk of the County or his deputy may not bid on the property or be involved in the purchase of such property.

6. Bidding

A. In General

1. The minimum bid price is equal to the assessed value of the land as certified to the Commissioner of State Lands by the County Assessor. The assessed amount is based on the year of delinquency.

2. Each sale will be made to the highest bidder for not less than the assessed value,

3. Successful bidders, whether bidding by mail or at the sale, will receive receipts for their money.

B. By Mail

1. Bids by mail must be received by the Commissioner of State Lands no later than seven (7) days prior to the date of sale.

2. Bids by mail must be accompanied by an amount equal to the total bid. The first one hundred dollars ($100) of such bid amount must be in cashier check or money order, the balance may be paid by personal check.

3. Unsuccessful bidders will be refunded in full.

4. Bids received by the Commissioner prior to the sale date will be announced immediately preceding the oral auction of the parcel.

C. At Auction

1. Subject to proper registration as outlined in Rule

4, bids may be made at the oral auction on the day of the sale.

2. Each parcel of land will be offered separately and in the order appearing on the bid list.

3. Successful bidders must tender the amount bid at the time of the sale or by close of the auction. The first one hundred dollars ($100) of such bid must be paid by money order, cashier check or cash with the balance acceptable in personal checks.

7. Terms of Sale

A. All sales made through the bidding process are conditioned on the record owner not redeeming the property and the full purchase price being paid.

B. The full purchase price is equal to the highest amount bid, taxes due on the property, ten percent (10%) interest, ten percent (10%) penalty, and costs incurred by the County and the State Land Commissioner.

C. After thirty (30) days but no more than forty-five (45) days from the date of sate the successful bidder must pay the balance of the taxes, interest, penalties and other costs that make up the total purchase price,

D. Upon payment of all amounts due, the Commissioner of State Lands will issue a limited warranty deed to the purchaser.

E. The first one hundred dollars ($100) of the amount tendered on the day of sale will be forfeited by successful bidders who decline to execute their right to purchase within the time limit set out in 7,C.

1. Redemption by the record owner within thirty (30) days of the date of sale is an exception to this rule.

2. In the event of redemption, all moneys paid by the successful bidder, interest not accruing thereon, will be refunded.

F. All cashier checks, money orders and checks should be made payable to the Commissioner of State Lands

G. No purchase may be made on a time-payment plan.

H. If personal checks are used for final payment, no deeds will be issued until clearance is assured by the bank or lending institution on which such checks are drawn.

8. Title Being Conveyed

Deeds are limited warranty deeds conveying all title received by the State through tax forfeiture.

9. Legal Action Against the Conveyance

A. Most actions to contest the validity of the deeds must be filed within two (2) years after the date of conveyance {Exceptions to this rule are listed under Arkansas Statute no.. 84-1129.)

B. If the sale is set aside by legal action or if the land is proven to be nonexistent, or double assessed, the purchaser will be entitled to a reimbursement of money paid, interest not accruing

10. Negotiated Sales

A. In the event no one bids at least the minimum bid, the Commissioner of State Lands may negotiate a sale.

B. Such sales that are negotiated shall take place at a time which will be specified at the auction and which will be held at the offices of the Commissioner of State Lands. Prior to execution such safes must have the approval of the Attorney General of the State of Arkansas.

C. Provisions regarding terms of sale and title are applicable to negotiated sales.

11. Caveat

Nothing in these rules and regulations shall apply to the sale of tax delinquent land which has been or will be certified to the Commissioner of State Lands for tax years prior to 1978.

(9/11/1987)

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