Crawford County Tax Sale Informational Packets: This packet does not necessarily provide all Missouri State Statutes with regards to the County Tax Sale. You are advised to research all of Chapter 140 Tax Sale Procedure Manual as provided by the State Tax Commission of Missouri.
Buying property at a County Tax Sale is very risky and has several restrictions. The tax sale is very different from foreclosure sales conducted at the County Courthouse by trustees or representatives of financial institutions and/ or individuals holding mortgage liens on real estate properties. The County is selling tax liens on properties for taxes that are owed to the County.
It is strongly recommended by the Collector’s Office for all potential bidder(s) to seek legal advice regarding your rights and responsibilities as a tax sale purchaser before you enter into a purchase. Please review all applicable Missouri Statutes that have been attached for your convenience. It is also suggested you or your representative review all Missouri Statutes regarding County Tax Sales with particular emphasis on Chapter 140. You may find these statutes at www.moga.mo.gov.
Crawford County is a Third Class County. Chapter 140 Section 140.160 states it is the duty of the County Collector to commence proceedings on collection of all delinquent taxes within a three (3) year period of said delinquencies. For the Tax Sale Year 2016 the Crawford County Commissioners have voted unanimously to change the delinquent period from two (2) years to a one (1) year delinquency. (RSMo 140.160)
By Missouri State Statute all Missouri Counties will hold their County Tax Sales on the Fourth Monday in August with the sale to commence at 10:00 am and continue until all properties subject to the tax sale have been presented for sale. (RSMo 140.170) The 2016 Tax Sale will be held on August 22,2016.
The owner(s) who have delinquent taxes and whose properties are subject to the County Tax Sale have the opportunity to pay their taxes in full prior to the start of the tax sale at 10:00 am to stop their property(s) from being presented to the public for sale.
The sale is conducted in a public auction style with the opening bid to include all taxes, interest, and other charges that have incurred to date. Any surplus paid over the opening bid shall be deposited at the closing of the County Tax Sale with the County Treasurer to be held in escrow, and may be claimed by the owner. NO INTEREST will be paid on surplus monies held by the County. If the surplus monies have not been claimed within three (3) years, the money shall be distributed among the schools within the County. (RSMo 140.230)
Buyers must be present to bid. Bidders must register at the Collector’s Office and complete an Affidavit stating they are not delinquent for any tax payment on any property located within the State of Missouri. (RSMo 140.190). You may register for the 2016 Tax Sale beginning at 8:00 am on August 8, 2016, but all registrations will end at 9:30 am on August 22, 2016.
No bid shall be received from any person(s) not a resident of the State of Missouri until such personal files an affidavit with the Collector’s Office appointing a Crawford County resident and/or an Attorney within Crawford County and said agent files an affidavit stating they have accepted the responsibility. Non-resident bidders must agree that service of process on the designated agent shall give the Circuit Court of Crawford County jurisdiction to determine any suit arising out of or connected with a sale for taxes. All Certificates of Purchase and Deeds will be issued in the Agent’s name. After issuance of the Deed it shall be the responsibility of the Agent to transfer the title to the purchaser. (RSMo 140.190) The successful bidder(s) shall IMMEDIATELY pay the amount of the bid to the Collector and in return will receive a Certificate of Purchase. If the purchaser(s) fail to pay their bid, the property shall be again offered for sale the same as if a no sale had been made and the purchaser shall forfeit and pay for the use of the distributive county school fund of the county a penalty of twenty-five (25) percent of the amount of their bid.
Successful bidder(s) SHALL NOT be entitled to possession of any properties purchased at the County Tax Sale during the one-year redemption period, and SHOULD NOT enter the property until such time as a Collector’s Deed has been issued to them in their name and the Deed is recorded with the Crawford County Recorder of Deeds. Homesteads also have special restrictions. (RSMo 140.310)
If a purchaser does gain access to the property(s) and makes improvements on the property(s) and the owner(s) redeem the property within the one (1) year redemption period the purchaser shall NOT be entitled to any compensation for said improvements. (RSMo 140.360)
First and Second Offerings of property(s) sold at the tax sale may be redeemed on or before the final redemption day (one year and one day from the date of purchase) in the following manner:
- Property may be redeemed by the owner of records, or by any person holding a publicly recorded deed of trust, lease, lien, interest or other claim upon the property.
- The amount charged for redemption will be the amount bid plus 10% interest per annum on the amount of taxes due, subsequent taxes paid plus 8% interest per annum, recording fees, costs of letters sent by regular or certified mail, and reasonable costs of title search. NO INTEREST shall be paid on fees and costs. Also, ATTORNEY FEES are NOT considered as reasonable costs and will not be charged to the redeemer as part of the costs for redeeming their property. (RSMo 140.170 & 140.340)
If the property owner(s) wish to redeem their property(s) within the one year period they should notify the Collector’s Office three (3) business days prior to the intended date they wish to redeem the property(s). If the successful purchaser bids surplus monies on the property and the owner(s) redeem the property the owner(s) may have to coordinate their date of redemption to the with the next scheduled County Commission meeting which is usually held each week on Tuesday’s.
If the property is redeemed by the owner(s) the Collector shall notify the holder(s) of the Certificate of Purchase(s) the property has been redeemed and the purchaser(s) shall return the original Certificate of Purchase recorded with the Recorder of Deeds for Crawford County to the Collector prior to receiving all monies due to the purchaser(s) on the date of the redemption.
Third Offerings of property(s) sold at the tax sale have a limited 90 of redemption period after notice of right to redeem has been sent to all interested parties of the property(s). RSM0 Section 140.250.1.
Sale of Subsequent to Third Offerings of property(s) sold at the tax sale or over the counter has no right to redemption, no title search or notice requirements.
REQUIREMENTS ON COLLECTOR’S DEED FOR FIRST AND SECOND OFFERINGS:
If the property(s) have not been redeemed during the one year redemption period, the holder(s) of the Certificate of Purchase(s) may apply with and receive from the County Collector a Collector’s Deed provided the following requirements by Missouri State Statue have occurred:
- All current taxes that have accrued on the property have been paid.
- The legal holder of the Certificate of Purchase is named as the original tax sale purchaser or the assignee on the original certificate of purchase.
- After March 1 of the following year of the purchase date and PRIOR to the one year anniversary date of the tax sale the purchaser(s) have initiated a title search from a licensed attorney or title company detailing the ownership(s) and encumbrances on the property(s).
- The purchaser(s) provides an affidavit to the Collector, stating at least 90 days prior to the one year anniversary of the tax sale the purchaser(s) have notified the owner(s) of record at the last known available address, and anyone with publicly recorded unreleased deed of trust, mortgage, lease, lien, judgment, or publicly recorded claim upon the property by first class mail and certified mail return receipt requested, of their right to redeem the property(s). NOTE: the affidavit must be accompanied with all supporting documents with regards to the title search and both first class and certified mailings (even if the mail has been returned by the postal service) to any and all interested parties to the property(s). (RSMo 140.405)
REQUIREMENTS ON COLLECTOR’S DEED FOR THIRD OFFERINGS:
If the property(s) have been offered for sale for two consecutive years and no person(s) shall have bid a sum equal to the delinquent taxes thereon, interest, penalty and costs provided by law, then the County Collector shall at the next regular tax sale for property(s) delinquent on taxes sell to the highest bidder of any bid not less than the sum equal to the delinquent taxes, interest, penalties, and costs thereof. A successful purchaser(s) on a third offering may apply and receive from the County Collector a Collector’s Deed if the following requirements by Missouri State Statute have occurred: (RSMo 140.405)
- A title search is initiated from a licensed attorney or title company detailing the ownership(s) and encumbrances on the property(s). NOTE: copies reflecting date title search was initiated and the invoice or receipt for payment of title search.
- Notification letters (first class and certified mailings with return receipts) must be sent within 45 days of the tax sale. (RSMo 140.405.6) NOTE: copies of notifications with proof of date of mailings are required.
- All current taxes are paid.
THERE ARE NO REQUIREMENTS FOR ISSUANCE OF COLLECTOR’S DEED FOR SUBSEQUENT TO THIRD OFFERING SALES. UPON PAYMENT OF ALL TAXES, COSTS, PENALTIES, AND INTEREST DUE THE PURCHASER MAY IMMEDIATELY RECEIVE A COLLECTOR’S DEED.
Missouri Supreme Court Ruling
The Missouri Supreme Court recently issued a decision (Harpagon MO,LLC v. Bosch, ETAL 370 SW 30 579 7/23/14 that directly affects the importance in sending the notification letters before any purchaser(s) can obtain a Collector’s Deed. The ruling states the notification letters required by the statute must be sent at least 90 day before the end of the redemption period. The Court stated that if notices are sent late, the purchaser(s) risk having their deeds voided. If the purchaser(s) do not follow the requirements set by Missouri State Statutes Crawford County will not issue a Collector’s Deed and any monies you may have paid on property(s) for delinquent taxes, interest, penalties, and costs WILL NOT BE REFUNDED.