Bidding at tax-delinquent property auctions

# (a) Bidding at a tax-delinquent property auction

(a) Bidding at a tax-delinquent property auction.

(1) Subject to proper registration as outlined in 26 CAR § 400-201, bids may be made at a tax-delinquent property auction on the day of the sale.

(2) Each parcel will be offered in the order appearing on the auction list.
(3)(A) An oral bid accepted at a tax-delinquent property auction is a legal and binding contract to purchase.

(B) By registering to bid, a bidder consents to abide by this part.

(C) Any failure to abide by this part, the terms of the sale, or a failure to make payment as required may result in:

(i) The bidder being barred or excluded from future auctions; and

(ii) Legal action against the bidder to enforce the terms of sale.

# (b) Who may bid

(b) Who may bid.

(1) Any person, corporation, association, other legal entity, or agent thereof may bid on the parcels offered, except that the following may not bid or purchase parcels through a tax auction, whether directly or indirectly:

(A) The Commissioner of State Lands and his or her employees;

(B) The county collector or his or her deputy;

(C) An individual or entity whose home of record is outside the United States; and

(D) A former owner or interested party.

(2) Persons or entities that have won previous auctions and did not pay or submitted payment by an instrument that was dishonored may be prohibited from bidding.

(3) Effective July 1, 2021, in the event it is determined that a tax-delinquent parcel previously certified to the Commissioner of State Lands has been purchased by an individual or entity whose home of record is outside the United States:

(A) The deed shall be cancelled by the Commissioner of State Lands within three (3) business days of the determination;

(B) Any and all moneys originally paid to the Commissioner of State Lands for the parcel are immediately forfeited to the Commissioner of State Lands; and

(C) The parcel is immediately considered certified without further action to the Commissioner of State Lands as tax-delinquent.

(c) When bidding on a parcel at a tax-delinquent property auction, the following procedures apply:
(1)(A) The minimum bid amounts are shown on the auction list.

(B) The minimum bid amount is equal to the delinquent taxes, penalties, interest, fees, and costs:

(i) As calculated by the Commissioner of State Lands; and

(ii) Based upon certification by the county;

(2) Each sale will be made to the highest bidder for not less than the minimum bid amount; and

(3) The Commissioner of State Lands reserves the right to reject any or all bids.

# (d) Terms of sale

(d) Terms of sale.

(1) The full purchase price is equal to the highest amount bid.
(2)(A) Successful bidders at a tax-delinquent property auction must tender the full purchase price at the time of the sale.

(B) Failure to do so may result in a prohibition on bidding in any or all future auctions.
(3)(A) Effective July 1, 2023, each parcel purchased at the tax-delinquent property auction must be paid by:

(i) Personal check;

(ii) Business check;

(iii) Certified funds; or

(iv) Credit or debit card.

(B) Cash payments are not accepted as a payment method.

(C) Payments by credit or debit card are subject to a nonrefundable processing fee charged by the issuing credit card company.

(4) Effective July 1, 2023, all certified funds, business checks, and personal checks should be made payable to the “Commissioner of State Lands”.
(5)(A) No purchase may be made on a time-payment plan.

(B) It is the bidder’s responsibility to already have acceptable funds available for payment.

(6) Upon payment of the full purchase price, the successful bidder will receive a purchaser summary from the Commissioner of State Lands.

(7) The Commissioner of State Lands reserves the right to cancel any sale.