135.01.23 Ark. Code R. 001
Tommy Land, Commissioner
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.
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having been promulgated and adopted by the Commissioner, shall be in full force and effect until they are amended or repealed pursuant to law. All previous Rules adopted and published by the Commissioner are hereby superseded and repealed insofar as they may be different from or in conflict with the Rules herein.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.
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.
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.
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.
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.
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.
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:
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.
(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. | |
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 driver's license number, expiration date, and issuing state must be provided as part of the registration process. Bidders shall be required to show a photo identification.
Effective July 1, 2023, issuance of a Limited Warranty Deed will be contingent upon full payment of the purchase price. The deed will be recorded in the county where the parcel is located and then forwarded to the purchaser.
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 parcel in the sale catalog does not guarantee availability on the day of the Tax Delinquent Property Auction. Effective July 1, 2023, parcels may be redeemed before 4:00 p.m. CT the last business day 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.
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.
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:
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.
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:
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.
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.
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.
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.
The Commissioner, by virtue of Ark. Code Ann. §§ 22-5-405, Deeds to Lands in Lakes or Rivers, is empowered to execute deeds to riparian owners in certain circumstances. This Subtitle D shall establish the process and procedure through which the Commissioner may fulfill its obligations under the aforementioned code provision. The Commissioner shall create an online application process.
135.01.23 Ark. Code R. 001