property tax sale information

General Information about a Missouri County Property Tax Sale

A Missouri county property tax sale is a public auction where tax liens on properties with delinquent property taxes are sold. These sales are typically held annually on the fourth Monday of August per Missouri Statutes, Chapter 140.

What is a Tax Lien?

A tax lien is a legal claim against a property for unpaid taxes. When a property owner fails to pay their property taxes, the county places a lien on the property. This lien gives the county the right to sell the property to recover the unpaid taxes. Delinquent taxes with penalty, interest and costs may be paid to the County Collector prior to the time of the tax sale.

Who Can Participate?

• Individuals: Any person can participate in a Missouri county property tax sale, including individuals, businesses, and investment groups.
• Non-Residents: Non-residents of Missouri can also participate, but they may need to make special arrangements with the county collector prior to the sale.
• Eligibility Requirements: To bid at the sale, potential buyers must typically meet certain eligibility requirements, such as not being delinquent on any tax payments themselves.

How Does the Sale Work?

1. Property Listing: Prior to the sale, the county publishes a list of properties that will be offered for sale. This list typically includes the property address, parcel number, owner of record, and the amount of delinquent taxes owed. This list is published in the local newspaper for three consecutive weeks.
2. Registration: Potential buyers must register with the county collector prior to the sale. This typically involves completing an application and providing proof of identification and signing an affidavit stating that he/she is not currently delinquent on any tax payments. Buyers must be present to bid.
3. Bidding: The sale is conducted as a public auction. Bidding typically starts at the amount of taxes, penalties, and late fees owed on the property.
4. Winning Bid: The highest bidder wins the tax lien on the property. The winning bidder must pay the amount of their bid to the county collector immediately following the sale. If the bid is not paid, a penalty of 25% of the bid amount plus a prosecuting attorney’s fee may be assessed against the bidder.
5. Redemption Period: The original property owner has a redemption period, usually one year, to pay the delinquent taxes and reclaim their property. If the taxes are not paid within the redemption period, the winning bidder can apply for a deed to the property.

Important Considerations

• Research: It's important to research any property before bidding at a tax sale. This includes reviewing the property's condition, title history, and any outstanding liens or encumbrances.
• Risks: There are risks associated with buying property at a tax sale. The original property owner may redeem the property, or there may be hidden problems with the property.
• Professional Advice: It's a good idea to seek professional advice from an attorney or real estate professional before participating in a tax sale.

Disclaimer: This information is for general informational purposes only and should not be considered legal or financial advice. It's important to consult with an attorney or financial professional for advice specific to your situation.