LINCOLN COUNTY TREASURER

  REAL PROPERTY SALES

• Click here for Tax Foreclosure

• Click here for Tax Title Property

  PUBLIC AUCTION

  Mapping the process

March 2006                         

The County Treasurer conducts three types of real property auctions.  Different types of property can be sold at these sales.  Here is some general information on tax foreclosure, tax-title and county owned surplus property sales. The number of parcels auctioned varies greatly from sale to sale.  These auctions are held as needed.

The information in this pamphlet is general.  Some or all of this material may change.  Specific circumstances will differ at times and may require certain exceptions.

***NO GUARANTEES***

Anyone considering buying property at a Treasurer’s sale should be aware that THERE ARE RISKS.  When selling parcels, the County conveys the entirety of the interest, which it is legally capable of transferring, unless otherwise noted.  However, the County does not guarantee or provide warranty to the extent of the interest.  The County makes NO GUARANTEES whatsoever on parcels sold at Treasurers’ sales.

The following statement applies to all Treasurers’ real property sales:  “This is a BUYER BEWARE” sale.  ALL SALES ARE FINAL.  We offer the parcels on a “where is” and “as is” basis.  The County makes no representation of warranty, expressed or implied, as to the condition of the title to any property, nor the physical condition of any property or its fitness for any use or purpose.

What is Tax Foreclosure?  When real property taxes become three years delinquent, the County Treasurer begins foreclosure action.  We file a certificate of delinquency with Superior Court.  Taxes, interest, penalties and foreclosure costs begin to accrue.

Title reports are ordered for each parcel.  As required by law, all parties with recorded legal interest (revealed by title report) are served with a notice and summons by certified or registered mail.  The notice and summons is published in the legal paper one week.  (RCW 84.64.050)

The Treasurer receives a judgment from the court authorizing foreclosure of the tax liens and ordering the sale of those parcels.  Only owners or parties with recorded legal interest on the date the certificate of delinquency is filed on a foreclosure parcel may redeem the foreclosure parcel.  They must pay all that is due through the close of business on the day before the sale, to remove their parcel from the sale.  Foreclosure sales are held every 1 to 2 years.  Check with the Treasurer’s office for the date of the next sale.  (RCW 84.64.060)

Can prior owners redeem property after foreclosure?  Prior owners have no rights to the property after foreclosure, UNLESS they were a minor or legally adjudicated incompetent.  Minors and persons legally adjudicated incompetent have the right to redeem anytime within three years from the date of the foreclosure sale.  They do so by paying the sales price, plus interest on the tax amount. Any improvements made by the new owner would also be reimbursed.  (RCW 84.64.070)

What happens to the property liens?  Generally, all liens on foreclosed properties are extinguished.  However, the County can make no guarantees the prior lien holders will honor the extinguishment.  IRS liens are usually extinguished, but they are subject to a 120-day redemption period.  If prior lien holders attempt to collect on their liens after the property has been foreclosed on, it’s entirely up to the new owner to defend against these claims.

What happens to excess proceeds?  If a parcel is sold at auction for more than the amount owing, the previous title owner of record can claim the surplus money.  This is the party who held title of record on the day the Certificate of Delinquency was filed.  They have up to three years from the date of sale to make their claim.  (RCW 84.64.080)

What is “Tax-Title”? Parcels offered at tax foreclosure auction, but not sold, are deeded to the County.  These parcels are “Tax-Title”.  They may be purchased from the County through a different process.  Tax-Title parcels are subject to the same risks as tax foreclosure parcels.

How are Tax-Title properties purchased?  Tax-Title properties may be purchased at public auction or by private sale.  Tax-Title property valued under $500 and not considered buildable may be sold to an adjoining landowner without going to public auction.  All other Tax-Title property must be sold at public auction.

An application to purchase Tax-Title property, along with a $100 deposit, submitted to the Treasurer, starts the process.     Applications are presented to the Board of County Commissioners.  The Commissioners approve or reject the sale.  If rejected, the $100 deposit is refunded.  If approved, the Treasurer schedules a public auction and the applicant is notified of the date, time and location.  The auction is advertised in the local newspaper for three consecutive weeks.

If the applicant is the successful bidder, the $100 deposit is applied to the purchase amount of the parcel.  The deposit is refunded to the applicant if they are not the successful bidder.  The applicant must attend the sale and guarantee the minimum bid or the deposit is non-refundable. 

What is County Owned Surplus?  County owned parcels, not acquired through tax foreclosure, can be purchased if the Board of the County Commissioners has declared them “surplus”.

How are County Owned Surplus properties purchased?  Purchasing County owned surplus property is done through public auction or private sale.  County owned surplus properties valued less than $2,500 may be sold without going to public auction.  The Board of County Commissioners makes the determination of whether the property will be auctioned or not.  All other County owned surplus property must be sold at public auction.

A letter of intent to purchase County owned surplus property submitted to the Board of County Commissioners starts the process.  The board approves or rejects the sale.  If approved, the Treasurer schedules a public auction and the applicant is notified of the date, time and location.  The auction is advertised in the legal newspaper for two consecutive weeks

NOTE: The Board of County Commissioners may order the Treasurer to conduct an auction of Tax Title and/or County surplus properties without the request or application from an individual.

D E E D S - How long does it take?  The deed is issued within sixty days of the sale date.  Deeds are forwarded to the County Auditor’s office for recording and mailed to the address provided by the bidder at registration.  The type of deed varies.

*Tax Deeds: issued for parcels purchased at tax foreclosure sales.

*Treasurer’ Deeds: issued for Tax-Title parcels.

*County Owned Surplus Deeds: Quit Claim Deeds are issued on County owned surplus property.  When possible, the Treasurer will issue Warranty Deeds.  This only occurs if the county holds clear title to the property.

Tax Deeds, Treasurer’ Deeds and Quit Claim Deeds provide the purchasers no guarantees.  There can be a clouded title or other problems the County is neither aware of nor responsible for to the purchaser.

RESEARCH*RESEARCH*RESEARCH

Thorough research on all potential purchases is essential.  It is important to complete this research before the day of the sale.  There are definite risks when buying tax foreclosure and tax-title properties.  Even County owned surplus sales present risks.  Buying property without doing complete research can result in unwanted and costly surprises.

Where to begin?  Besides the minimum bid sheet, the Treasurer’s Office will provide as much information as it has available.  Title reports, maps, assessed value sheets and tax information are some items that will help you in your research.  The Treasurer’s Office is only a starting point.  It’s up to the buyer to pursue other resources.

**Other resources–Questions on the build ability, zoning, use restrictions and controls and other should be looked into before any sale.  City and County engineering, building codes, and planning departments are good places to get information.

Title Insurance–Some title companies won’t provide title insurance for up to ten years from the date of sale.  Policies vary with each title company.  If you are planning to build, title insurance may be important.

Assessments–Parcels may have improvement or special assessments for which payment is due.  Research what districts or associations service these parcels.  The County Treasurer collects some assessments. Be aware of these prior to sale.

Local Ordinances–Some parcels may have easements or use restrictions, and zoning or other land use controls.  All parcels are sold subject to applicable City and County ordinances.  It’s the buyer’s responsibility to detect these.

Community Association Dues–All parcels are sold subject to restrictive covenants, if applicable, allowing for imposition of community association fees.

Easements–All easements three years and older are unaffected by tax foreclosure.  Easements are listed on the title report and are on record at the County Auditor’s office.

Physical Inspection–Visiting the property you are researching is strongly recommended.  Is there an access to the parcel?  Can property boundaries be identified?  Are neighbors using the parcel?  These are a just a few of the questions to ask.

Improvements–If there are improvements, find out if they go with the parcel and how they are currently used.

***PUBLIC AUCTION***

Minimum bid sheets are available at the Treasurer’s Office before the auction. 

All bidders must be registered.  Registration is done the morning of the auction.  A copy of the terms of sale is provided when registering.  All bidders are required to read and sign this before being issued a bidder number card.  You cannot bid without this bidder card.

NOTE:  Only cash, cashier checks or money orders will be accepted.  Absolutely NO personal or business checks will be accepted.  Those wishing to bid or their representative must be present at the auction.

The County Treasurer announces the minimum bid for each parcel.  The minimum bid includes all recording fees, deed fees, affidavit fees and costs.  Bids must be made in $25.00 increments or more.

These are oral auctions.  To bid, hold up your issued bidder card and call out the bid amount.  Each parcel is sold to the highest and best bidder.  Once a parcel is sold, the successful bidder has one hour from the time the last parcel is sold to pay in full. 

If full payment is not made as required, the parcel is re-auctioned at the minimum bid.  A successful bidder who does not pay will not be allowed to bid on any other parcels at the auction and will not be allowed to bid at the next three county auctions.