Warren County, Missouri Delinquent Tax Certificate Sale Frequently Asked Questions

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1 Warren County, Missouri Delinquent Tax Certificate Sale Frequently Asked Questions Julie Schaumberg, Collector Alert Process subject to change. Continue to check collector s website at Q When, where, and what time is the sale held? A Missouri revised statutes require that the sale be held on the fourth Monday in August in third class counties. Sale shall be held inside the courthouse (the exact location within the courthouse shall be posted at the main door on the day of the sale) located at 104 West Main in Warrenton. Bidder/purchaser preregistration shall begin at 9:00 a.m. The sale will commence (beginning with important announcements) at 10:00 a.m. No one shall be allowed to place a bid, if they have not completed the sign-up process and been issued a bidder number. Also, the sale shall not be held up for you to do so, so it is recommended that you arrive in plenty of time to have this accomplished prior to the bidding being commenced. Q - How many years must a property be delinquent before it is offered for sale? A In Warren County, a property must have a billing that is three years delinquent before it is subject to being offered at the delinquent tax certificate sale. This varies with counties throughout the state. Q I have questions related to the sale and the outcome of me placing a bid. How can I get these questions answered? A As the Warren County Collector, all I can do is answer process questions related to the sale. I cannot give you legal advice related to the matter. You will need to seek that from whomever gives you legal advice and I encourage you do so. Basically the sale is an auction (with some twists). Following the sale, there are a number of things that will be required of you to do prior to you being allowed to request the issuance of a collector s deed (on 1 st /2 nd /3 rd offerings). Some of those things are that you will be required to obtain a title search related to the property and send out certified notices (within a particular time frame; giving the recipient a very specific notice) to all persons having a claim/interest in the property. Should those mailings not be delivered, there are other requirements you shall have to meet. These persons with a claim/interest in the property, will have the opportunity to take action that would preclude your receipt of a collector s deed. This is a very simplified statement; to explain a complicated process. 4 th & subsequent offering process shall be discussed below. Before any tracts are offered for bid, the morning of the delinquent tax certificate sale, very specific process announcements will be made that I encourage you to listen to intently. Also, an information packet (related to the process) will be given to successful bidders at the tax sale. You can visit the Missouri Revised Statutes Chapter 140 at Q How long does the sale last? A Barring no unusual circumstances, it should be over by mid-afternoon. However, situations can arise that require the sale to be paused pending resolution therefore causing delays. If the sale is still going on at 1 p.m., a decision shall be reached as to whether to break for lunch (depending on the number of tracts left to offer for sale). If all parcels have not been offered by 4 p.m., a decision shall be reached as to whether to proceed or stop and commence again the next day. Q Where can I get a listing of parcels scheduled to be offered at the sale? A - This year the delinquent tax certificate sale is going to be published in the Warren County Record - sometime in early-mid July for 3 consecutive weeks. That publication is published every week and hits the newsstands by Thursday. Call the newspaper directly at (636) to inquire regarding how to obtain a copy by mail; or, visit their website at to view the listing online. The updated list will be on the Warren County Collector website under the Tax Sale Information heading at 1

2 Q If a tract is listed in the delinquent tax sale certificate publication, does that mean that it will be offered at the sale? A No. Many things happen between the time the list is submitted to publication and the actual sale. For one, enough of the delinquent taxes can be paid to cause it to be withdrawn from the sale. Also, court stays can be issued - causing it to be lifted from the sale. Or, information can come to light that causes a realization of an issue that precludes it being offered at the sale. Q How will I know if a tract has been removed from the sale that I am interested in? A There will be a copy of the publication posted in the hall (outside the Warren County Collector s office now located at 101 Mockingbird Lane Suite 200) that we shall keep updated as parcels are withdrawn from the sale. You are welcome to come view that posting at any time (during working hours) Monday through Friday (except holidays) 8 a.m. to 4:30 p.m. once the publication has taken place. However, you should be aware that the reality of the matter is that some tracts are removed from the sale within minutes of it being offered. Check the Collector website at Q What order will the tracts be offered in? A Early in the year each parcel (scheduled to be offered at the upcoming delinquent tax certificate sale) is assigned a tract number that you will find identified in the publication of the sale. You will notice in the publication that some of the tract numbers seem to be missing. That would be because the missing tracts have had the taxes (triggering the tax sale) paid since the numbers were assigned or has been removed from the sale for some other reason (prior to the publication). The tracts remaining to be offered at the time of the sale, shall be offered in tract number order and that offering shall commence immediately following the important announcements. However, some tracts may be by-passed, to possibly be returned to later in the sale, if circumstances are such that I deem this is necessary. Q Can I buy a tract once it has been offered at the sale and did not sell? A Not from the Warren County Collector. The Warren County Collector only offers tracts for sale once a year at the annual delinquent tax certificate sale and does not sell tracts of land over the counter. So, once the tract has been offered at the sale (and no successful bid is received) the opportunity to bid on the tract is past for this sale. The parcel may or may not be offered at next year s sale (depending on circumstances at that time). Q Why does cost of 20xx sale show just once on some tracts in the publication while others show it twice, three times and possibly some even more time? A There are a different set of rules for the various offerings depending on how many times the parcel has been offered at the tax sale in the past. It is important that you know what offering a tract is, when you bid because there will be a very different process and timeframe to the process depending on what offering it is. You can find the offering number listed right under the legal description. If it is a 1 st or 2 nd offering, there is one set of rules. If it is the 3 rd offering, this is yet another set of rules. If it is the 4 th or greater offering, there is yet another process altogether. In very few instances there may be circumstances that exist on a tract that make this not true and that shall be announced the day of the sale prior to the bid being made. Q Why is it called a delinquent tax certificate sale? A Recent legislation now allows that as the result of a successful bid a tax sale certificate shall be issued to the successful purchaser -- regardless of whether it is a 1 st, 2 nd, or 3 rd offering. The only exception is if there is an offering greater than the 3 rd offering that has a successful bidder. Otherwise, a successful bid gives the persons listed as potential purchaser(s) associated with the bidder number a tax sale certificate which, as I understand it, becomes a lien against the property. Q Can anyone bid at the sale? A No see some of the circumstances discussed below that would preclude someone from being allowed to bid at the sale. Q Will I need to have a form of identification with me to register as a potential purchaser at the sale? 2

3 A Yes. All persons listed as a potential purchaser of a tax sale certificate on the purchaser information sheet, must have a form of personal identification with them. They will need to show this when they turn in the sheet to the clerk of the sale (who will be witnessing their signature related to the affidavit). Q What form of payment will be accepted on the day of the sale, if I am a successful bidder? How long do I have to pay my bid, if I am a successful bidder? A Payment for all properties purchased can be made in the form of a personal check on the day of the sale. However, non-clearance of check can result in the sale being voided. This payment must be made before the sale is declared closed. Bidders bidding on 4 th or greater offerings should be aware that payment of bid in any form other than cash, cashier s check, or recently issued money order will lead to a delay in the issuance of their collector s deed. Q What if I change my mind after I am the successful bidder and do not pay the bid as set out above? A Once all parcels have been offered, the sale shall be suspended while the collector and the clerks of the sale go down to the Warren County Collector s office to ascertain if all bids have been paid. Once that process is accomplished, if there is a bid that was not paid, (1) the sale will be unsuspended, (2) the bid shall be declared invalid, and (3) the tract shall be re-offered for bid. Even if it does not sell at that subsequent offering, the original bid shall remain invalid. If this circumstance should happen, the persons listed as potential purchaser(s) on the registration sheet related to the bid number will be required to pay 25% of the amount of the unpaid bid (plus a possible collection fee should that payment not be forthcoming). Once all bids are accounted for (or the above process takes place) the sale shall be declared closed. Q How do I find out where this parcel/tract is located and how can I view the property? A Each of the tracts listed in the newspaper publication lists a property tax identification number in the publication. That number id is a mapping number used by the Warren County Assessor s office to identify parcels on their mapping records. You may call (or visit with) them to obtain information as to how those numbers can be used to ascertain the location of the individual tracts. They may be reached at (636) The Warren County Collector does not have the authority to grant (nor does she grant) anyone permission to trespass on any of these properties. Q Are there any environmental issues that exist related to the tracts scheduled to be offered at the sale? A If I was aware of an environmental issue, on a particular tract, prior to publication, it will be denoted on the publication. If I become aware of an environmental issue after publication, on a particular tract, it will be announced prior to the sale. However, there has been no testing done nor inspections made by the Collector (nor on behalf of the Collector) on the tracts subject to being offered at the sale. It is possible that environmental issues may exist on a tract of which I am unaware. Persons registering as potential purchasers at the sale are encouraged to make their own investigation and inquiries regarding these matters prior to causing a successful bid to be placed on any tract being offered at the sale. Q - Do these properties have liens against them? A The Warren County Collector has not caused a title search to be ran on these properties and makes no statement as to the status of the title. If you have this concern, you are welcome to investigate the matter prior to placing a bid. Part of the process towards requesting a collector s deed (on all offerings except 4 th offerings) following your successful bid, requires you to have a title search ran by a licensed attorney or title company. As the Warren County Collector, I shall require that this title search be dated sometime after the date of your successful bid (and dated no more than 120 days from the date that the purchaser applies for the issuance of a collector s deed). Q Can more than one person be listed as the potential purchaser on the sheet? A Absolutely. All persons so listed will have to either be present at the sale (or have made arrangements as stated below) to sign the required affidavit before a bid can be accepted in their name. If there is more than one person listed, they will need to be prepared to declare on their registration sheet as to what type of recognized ownership they want to take title as (should a bid lead to the issuance of a collector s deed). If unsure of how you want to take title, you should consult your legal advisor. At least one person listed 3

4 must be present to bid (except for special regulations relating to bids placed in the name of an entity or on behalf of a non-resident potential purchaser). Q - If I am the successful bidder, I want to also list my son on the tax sale certificate ownership. However, he will be at work that day. Can I just list his name when I sign up to bid? A No. All parties that are going to be listed on the purchaser sheet as potential owners of tax sale certificate issued as a result of successful bids at the sale (as well as any designated agents appointed by persons who are non-resident of the state of Missouri to bid on their behalf) must sign (and be able to sign) an affidavit [which is required by the Missouri revised statutes] stating that they are not currently delinquent on any tax payments on any property. Failure to sign such an affidavit, as well as signing a false affidavit, may invalidate a sale. Persons wishing to be listed on tax sale certificates, as a purchaser, can make arrangements in advance of the sale with the warren county collector to pick up paperwork [that they can take, fill out, and sign in front of a notary and deliver back to the collector - prior to the sale] thus allowing someone else to include their name as one of the purchasers on the purchaser information sheet. With the exception of the out of state purchaser or an entity, the person placing the bid must be one of the persons listed as purchaser on the potential purchaser information sheet, that will be required to be filled out prior to any bids being placed by a bidder. Q What if I (or someone else that I wanted to list as potential purchasers of the tax certificate) do owe taxes? A Usually no one will be allowed to be listed as a purchaser if they cannot sign the required affidavit stating they owe no taxes on any property. However, (and this gets complicated) someone would be allowed to be listed as a potential purchaser - to bid only on a property that they currently have an ownership interest in. Call the Collector for clarification, should you think this might be the situation. Q - I want to place bids in the name of a corporation (or, LLC, LP, Partnership, etc.) is that allowed? A Yes However, there are special requirements that must be met [and in place] prior to placing a bid. People wanting to bid in the names of such an entity or partnership must contact the Warren County Collector [prior to the day of the sale] to discuss the requirements. Q I am not a resident of the state of Missouri, can I bid at the sale? A Yes and No. A bid can be placed at the sale on your behalf, but it cannot be placed by you. Arrangement must be made with the Collector, prior to a bid being placed, regarding the appointment of a designated agent (who must be a resident of the state of Missouri) to bid on your behalf and be the person to whom all correspondence, etc. shall go. It is recommended that these arrangements be made prior to the day of the sale (starting with contacting the Collector for details), as it can be timely to finalize all the details necessary before a bid can be placed. The sale will not be held up to wait for someone to complete the necessary details. Collector s deed (if any is issued) shall issue to the appointed agent. Q How much does the opening bid have to be? A The answer to that question depends on what offering the parcel is. If it is a 1 st,2 nd, or 3 rd offering, the least opening bid that will be accepted is the amount published in the newspaper publication as total due. If it is a 4 th offering or greater any opening bid will be accepted, but the Warren County Commission can (and does) appoint a trustee who can bid (to protect the taxes due the taxing districts) to up to the amount shown as total due in the publication. Which parcels that trustee shall bid on will be decided by the commission. If the offering is an offering subsequent to the 3 rd offering (i.e. 4 th offering or greater), the parcel will be sold for the highest bid that is obtained, regardless of whether it reaches the total due or not and the collector s deed shall be issued shortly after the sale (without further action on the part of the purchaser) unless collector would receive a court order precluding issuance of same or information come to light that would cause the need to declare the bid rescinded. The timing of this issuance will depend partly on the method of payment when bid is settled. Q What happens if the bid is for more than what is shown on the publication as amount due? 4

5 A This happens frequently, especially when there are various people interested in the same parcel. Sale will go to the highest bidder. The amount paid (above total due shown on publication) is referred to as oversurplus. Shortly after the sale it is transferred to the Warren County Treasurer s office to be held in trust (for a period of time) for the owner or owners or their legal representative to claim. Q Once I bid on the tract(s) I want to bid on, do I have to stay until the end of the sale? A No. You may go ahead and collect your bid receipt and proceed to the Warren County Collector s office (now located at 101 Mockingbird Lane about a mile south of Main Street via State Highway 47) so the clerks there can collect the amount of your bid. Q Once I am the successful bidder on the tract(s) I want (and I pay my bid price) what do I do next? A Within a month of the successful bid, the Warren County Collector s office shall be sending the tax sale certificate issued (as a result of the successful bid). Due to the tightness of the timeframe to accomplish certain steps of the process (especially on 3 rd offering sales) successful purchasers are advised they do not have to wait for the issuance of the tax sale certificate to start the process. Purchasers will have been given process sheet day of sale and leave with step-by-step information they need to begin. Q If I am the successful purchaser at the sale, does that mean I own the property? A Placing a successful bid (on 1 st, 2 nd, and 3 rd offerings) is just the beginning of what, to many, is a somewhat complicated process that may culminate (but not always) in the issuance of a collector s deed. What you will receive from the Warren County Collector (shortly after a successful bid) is a tax sale certificate. Chapter 140 of Missouri revised statutes indicates that the persons listed on the potential purchaser sheet at the time of the sale will have a lien against the property (as a result of the successful bid). There are many things that need to be done by the potential purchaser (within the proper time frame) before a collector s deed can (if it ever is issued) be issued to them following the bid. Many times the property is redeemed from the lien of the successful bid by someone that has a claim or an interest in the property (and a collector s deed will never be issued). 4 th offering sales normally will cause a collector s deed to be issued shortly after the sale. However, all purchasers regardless of offering number purchased need to be aware that matters can come to light (before issuance of the deed) that will cause the sale to be rescinded all together. In these circumstances the lien of the bid will be lifted and a collector s deed will never be issued as a result of the bid. Also, court stays can be issued delaying the issuance of collector s deed pending court resolution of whatever the matter may be. Potential purchasers should consult legal counsel as to what ownership they would obtain as a result of obtaining a collector s deed to a tract of property; and also, for clarification as to when in the process (if ever) they would be recognized as the legal owner of the property with all the rights and responsibilities that may bring. Q Will I get my money back if I do not wind up with a collector s deed? A If the lien of the sale is redeemed by someone with a claim/interest to the property (through the Warren County Collector s office), purchaser will (at the very least) receive the amount of their bid plus 10% interest (per annum) on the amount of that bid that was shown as total due in the publication. No interest shall be paid for any portion of their bid that is oversurplus. Nor shall interest be paid beyond 1 ½ years from the date of the bid. Also, if redeemed, any subsequent taxes you may have paid (plus 8% interest per annum up to 1 ½ year from date of bid) shall be recovered. In addition, if purchaser has kept collector advised of ongoing expenses to work through the process, some of those expenses might be recoverable. However, there are circumstances (beyond redemption) that can cause a collector s deed not to be issued as well, situations can arise where collector s deeds (that have been issued) can be challenged in a court of law. Possible outcomes due to those circumstances (as it relates to recovery of monies) should be discussed with your legal counsel. Q Can I assign my tax sale certificate to someone else after the sale? 5

6 A Yes, as long as that person is a resident of the state of Missouri and owes no taxes, a tax sale certificate issued on a 1 st, 2 nd, or 3 rd offering can be assigned. Assignee will be required to sign an affidavit stating they owe no taxes on any property prior to any assignment being processed by the collector s office. Such assignment must be notarized and presented to the collector s office along with the cost to record the assigned certificate. The assignment is not final until collector s offices processes the request and reflects it on their records. A 4 th or subsequent offering bid cannot be assigned. Q How long does it take to obtain a collector s deed after the sale? A The answer to this question depends on what offering the tract was that you are the successful bidder on and on you yourself. If it is a 1 st or 2 nd offering parcel the earliest you can obtain a collector s deed to the tract (if you obtain one at all) is once 1 year has passed, since the successful bid was placed. However, it can be longer than 1 year depending on your timing of required action on your part. If it is a 3 rd offering parcel, you can obtain a collector s deed (if you obtain one at all) once 90-days passes from the time you have made an appointment with the warren county collector and submitted all required documentation/affidavits and requested that the collector s deed be issued (once the 90 days passes without the tract being redeemed from the lien of the sale). Once again you will be the one dictating how long it takes for you to make the appointment to submit your request. If it is a 4 th or greater offering parcel that you are the successful bidder on, once you have paid your bid there is nothing else required of you to do. There is no right of redemption for that type of offering, and the collector s deed will be mailed to you sometime within four months of the successful bid (barring a court order or things coming to light that would cause a need to rescind the bid). Q What kind of title will I get to the property if I do work through the process and obtain a collector s deed to the property? A That would be a question you would need to ask of whomever gives you legal advice. As the Collector of Warren County, I shall transfer such interest as I possess and I make no warranties, guaranties, or other affirmations as to the title to be transferred by any collector s deed that may be issued as a result of this process. I will tell you that I have heard of some persons taking measures to perfect the title in some way after they have obtained the collector s deed. Whether that would be necessary (or advisable ) would be something you would need to discuss with your legal counsel. Q What happens to other liens that might be against the property at the time of my bid such as mortgages, judgments, IRS liens, etc? A Good question once again not one I can answer for you. Seek legal advice. Q When can I view the property, take possession of the property, make improvements to the property, remove personal property (that may be present) from the property, destroy or tear down any existing structures that may be located on the property, rent or lease the property to someone, collect rental/lease monies possibly being generated by the property, plant/harvest crops, etc. If I am the successful bidder? A Another good question for you to pose to your legal counsel which I strongly suggest you do prior to taking any such actions. Q Address and phone number changes? A Once you are a successful bidder at this sale, it shall be your responsibility to keep the Collector s office advised of any address/phone number changes (you may have) to assure that we shall be able to contact you (should it become necessary) during this process. 6