BACK TAX SALE
FREQUENTLY ASKED QUESTIONS
|
Q - When, where and what time is the back tax sale held?
A - State law requires that the sale be held on the fourth Monday in August of each year in or near the County Court House.
Sale time is 10:00 a.m.
Q - How many years must a property be delinquent before it is offered for sale?
A - In Miller County, a property must be delinquent three years before it is offered at a back tax sale. Other Missouri counties
offer after two years and some after one year.
Q - How much do I have to pay to buy a property at a back tax sale?
A - The sale is conducted like any other public auction. The starting bid is the combined amount of the unpaid tax, interest,
penalty, advertising cost and any other cost related to the sale. If more than one person bids on the property, the property
is sold to the highest bidder, and the cost would be the amount of the final bid. If you are the successful bidder you must
pay the amount of your bid immediately after the completion of the sale.
Q - What happens to the dollar amount that is paid for a property in excess of the amount of the tax and related costs?
A - This amount is call "overplus" or "surplus." This money is turned over the county Treasurer. The owner of record at the
time of the sale is entitled to the money. If the owner cannot be found or does not come forward and ask for the money,
within three years after the dale of the sale, it is then given to the county public schools.
Q - Is the property mine the day of the sale?
A - If you are the successful bidder on the day of the sale, you will receive a "Tax Sale Certificate of Purchase." This
"Certificate" becomes a part of the permanent record in the Collector's Office and verifies that you were the successful
bidder on the day of the sale. After a one-year waiting period you can present your "Certificate" to the county Collector in
exchange for a "Collectors Deed". Once the "Collectors Deed" is properly recorded, you are the lawful owner of record.
Q - Why must I wait one year before receiving a deed?
A - Because the owner of record on the day of the sale has a one-year right to redeem the property. That is, any time during
the next one year following the day of the sale, the owner can come forward and pay to the Collector all tax, interest,
penalty, advertising cost and all related costs and will again become the full owner of record. This is called "Redeeming
the property."
Q - If someone "Redeems" his/her property, how do I get my money back?
A - If the property is "Redeemed" the county Collector will collect the money from the original owner. You will then receive all
of the money you paid on the day of the sale plus interest (interest is paid only on the amount of unpaid tax & expense of
the sale is not paid on the surplus) from the county Collector. Once you receive the money your "Tax Sale Certificate of
Purchase" becomes invalid and must be returned to the Collector at the time you receive your money back.
Q - Who pays the taxes during the one-year redemption period?
A - You, the holder of the "Tax Sale Certificate of Purchase," will e billed for the tax during the one-year redemption period.
Q - What can I do to the property to improve or change it during the redemption period?
A - That is entirely up to you. Just remember anything you do or money you spend on the property could be lost if the
property is redeemed.
Q - Does a back tax sale clear the property of all other liens?
A - No. The only lien that is cleared through the tax sale process is the property tax. The property may also have other liens
such as mortgage(s), income tax liens, judgments, levies, etc.
Q - How would I know or find out about other possible liens against the property?
A - The only sure way to find out is to do a lien search of the public record. If you are not familiar with public record
searches, it would probably be best to hire someone who can conduct a complete search for you. Most title and abstract
companies will charge a fee to provide this service.
Q - Can I recover the cost of a lien search from the Collector or the owner?
A - No.
Q - Should I purchase a tax sale property without doing a lien search?
A - That decision is entirely up to you.
Q - If a property does have other liens, how do I get them removed from the record?
A - You are required to do a lien search 90 days before the end of the one-year redemption period and before applying for a
Collectors Deed. You must notify by certified mail any lien holder as well as the previous owner of your intent to apply for
and record a Collectors Deed. If you do not receive back a response from any lien holder within the 90-day period, they
are forever barred from enforcing their lien against your and the property. The reason you must notify the previous owner
is to provide a warning that the one-year redemption period is ending.
Q - What happens if no bid is received at the tax sale
A - The property must be offered a the sale each year for three years. If not sold at any of the three sales, the property can
then be purchased anytime after the third sale in the Collector's office at a price agreed to by you and the Collector (with
no redemption period).
Q - How do I obtain a list of the properties prior to the sale date?
A - The list of properties to be offered at the sale is published in a newspaper, that has county wide distribution, once a week
for three consecutive weeks with the last publication at least 15 days prior the sale date. Starting in 2006, it will also be on
the website under the County Collector section. Property owners can remove their property from the sale list by paying
any time prior to the scheduled hour of the sale.