NOTICE TO TAX SALE PURCHASERS OF THE TERMS AND CONDITIONS GOVERNING THE TAX SALE
The Buchanan County Treasurer holds the annual tax sale on the third Monday in June at 8:30 a.m., in the assembly room - located in the basement of the Courthouse. Tax sale is continued for as long as purchasers are present or until each parcel has been offered for sale. The sale will adjourn and be continued on the third Monday in August and every other month, thereafter, until all properties are sold or the next annual tax sale occurs. The following information is provided to assist you in purchasing delinquent properties at tax sale.
1. All prospective bidders must register prior to the tax sale in the Treasurer's office. The registration deadline is the Friday before at 3:00 pm. The registration fee is $20 and is non-refundable.
You will need to complete a ‘Register of Bidders Annual Tax Sale' form. This form states your name or business name, address, county and state of residence, telephone number, fax number and email address.
You may, through a written and notarized authorization form, filed with the treasurer, designate an agent to bid in your absence. Although a ‘properly registered' tax sale bidder is allowed to purchase tax sale certificates under multiple names/numbers, the bidder may only use one buyer number and federal identification number at a time. (Note: ‘properly registered' means that the name(s) on the bidder's registration form and corresponding W-9 form must be identical and that the taxpayer's identification number furnished on the W-9 form must be for the name shown.) All bidders/buyers must be over the age of 18 years on the day of tax sale. The Treasurer may require valid proof of age: i.e., driver's license or birth certificate.
A W-9 form must be completed and signed. This information is needed so that we can issue an accurate 1099-INT form with the appropriate social security number or taxpayer identification number.
You or the party you represent may NOT be entitled to bid at tax sale and become a tax sale purchaser by reason of having a vested interest in the property. A tax sale certificate and/or a Treasurer's Deed can be set aside by the courts if it is determined that the tax sale purchaser was ineligible to bid at tax sale. The general rule is that a tax sale purchaser should never have an interest or lien in the property offered for sale. You should consult with your legal council to determine your right to bid and become a tax sale purchaser.
2. All parcels will be offered or sold in the manner they were published, alphabetical by taxing district. All parcels shown in the publication are offered for sale except those that (1) have been paid subsequent to the tax sale; (2) those withheld due to bankruptcy laws prohibiting the sale. It is imperative that you be prepared for the sale. You need to know the parcel(s) within each district and the corresponding item number(s) upon which you intend to bid.
Each item will be offered for sale to all bidders beginning with a 100% undivided interest. In the event there is more than one bidder, there will be a ‘bid down' on the percentage of undivided interest. "Bid downs" will range in whole percentages from 99% to 1%. When it has been determined that there are no further bids and the bid is tied, a buyer will be chosen through a random drawing. Those selected should indicate ‘yes' or ‘pass' in which case another bidder will be chosen.
3. Payment is required at the time of purchase or at the conclusion of the tax sale. The amount collected will include all delinquent taxes and special assessments, penalties, special assessment collection fees, publication costs and a $20 certificate fee for each certificate issued. Payment must be paid in the form of a personal check, money order or cash. Two-party checks are not accepted for payment. A separate payment is required for each buyer number. A blank check made payable to the Buchanan County Treasurer is preferable. If a tax sale buyer's payment does not clear, for any reason, the tax sale certificate(s) will be cancelled.
4. Please allow 7-10 days to receive your certificate(s). This allows the Treasurer's staff time to complete posting of records, editing of certificates and balancing the proceeds received from the tax sale. At the time certificates are mailed or picked up, reimbursement will be included for those parcels that have been redeemed, in lieu of the tax sale certificate of purchase being sent. It is the purchaser's responsibility to verify that the tax sale certificate and redemption copies received are correct for the parcels purchased.
The Certificate of Purchase is assignable by endorsement and entry in the county system in the office of the county Treasurer from which the certificate was issued. For each assignment transaction, the Treasurer shall charge the assignee an assignment transaction fee of one hundred dollars to be deposited to the county general fund. The assignment transaction fee shall NOT be added to the amount necessary to redeem.
5. The tax sale certificate of purchase does not convey title to the purchaser. The titleholder or other interested party retains the right to redeem within a specific period of time, depending on the type of tax sale. If the sale remains unredeemed after this period has expired, the purchaser may begin proceedings to obtain a Tax Deed to the property.
For ‘Regular Tax Sale', the 90-day Notice of Right of Redemption may be issued after one year and nine months from the date of sale but not more than three years.
For ‘Public Bidder Tax Sale', the 90-day Notice of Right of Redemption may be issued nine months from the date of sale but not more than three years.
Failure to obtain deed after three years have elapsed, from the time of sale, because action was not completed which qualifies the holder of the certificate to obtain a deed; will result in the Treasurer canceling the tax sale certificate. The tax sale purchaser will lose his investment - there is no refund.
6. A tax sale purchaser may pay subsequent taxes and special assessments on the same parcel on which she/he holds the tax sale certificate. These may be paid on the 14th day following the penalty date - i.e., April 15, and October 15. Unless the last day to pay taxes falls on a Saturday or Sunday, then the subsequent payment could not be paid until 14 days from delinquent date. The purchaser must request statements and inform the Tax Division of the subsequent payment so it is paid and recorded properly as an addition to the sale. Only items due in the current fiscal year or prior may be paid on a ‘sub-list'. Failure to report sub-list payments could result in their omission from the redemption calculation. Subsequent tax payments must be received by 4:30 p.m. of the last business day in order to accrue interest for that month. Postmarks cannot be accepted. Failure to pick up the subsequent will result in the taxes being offered for sale again. If sold again, first tax sale certificate holder will lose his right to pay further subsequent payments.
7. Reimbursement of tax sale redemptions except for certificates held by a county is not valid unless received by the Treasurer prior to the close of business on the 90th day from the date of completed service. Service is completed when the certificate holder files the 90-day affidavit with the Treasurer. A redeemed tax sale will include the following:
a. The original tax sale amount, including the $20 certificate fee paid by the purchaser at the time of sale.
b. Interest in the amount of 2% per month calculated against the amount for which the parcel was sold, including the amount paid for the certificate of purchase. Each fraction of a month is counted as a whole month.
c. Subsequent tax payments paid by the purchaser and added to the amount of the sale with interest in the amount of 2% per month. Each fraction of a month is counted as a whole month. Subsequent taxes CAN NOT be paid on line by the tax sale purchaser.
d. Valid costs incurred and posted to the county system for action taken toward obtaining a tax deed. Cost not filed with the treasurer before redemption shall not be collected. Valid costs are defined in 447.13, Code of Iowa, as amended; include the cost of record search, serving the notice and cost of publication. An abstractor who participates in the title guaranty program must perform a record search or an attorney licensed to practice law in the state of Iowa. The amount, of the cost, of the record search that may be added to the amount necessary to redeem shall not exceed $300.00. Attorney fees are not authorized costs.
8. The tax sale certificate holder is responsible for checking redemptions for which they hold the certificate(s) of purchase. Interest on any tax sale certificate being redeemed will be figured to the date of redemption ONLY. Upon surrender of the tax sale certificate of a redeemed parcel, and other related tax documents, the Treasurer's office will issue a check for the redemption amount.
If the original Certificate of Purchase has been lost or destroyed, a duplicate can be obtained from the Buchanan County Treasurer's Office at a cost of $10.00.
9. Please supply, to your bidders, the ‘rules of the day'.
IRS Form W-9 can be obtained from the link below: