Bidding Rules

Allegany County, Maryland
2022 Tax Lien Sale
(for Tax Year 2021 and prior)

TAX SALE NOTICE

TERMS OF SALE

SUMMARY OF IMPORTANT INFORMATION

 

Tax Sale Notice

According to the Annotated Code of Maryland Tax-Property, Article Title 14, Section 808, the Allegany County Tax Office will sell for non-payment of taxes the following described parcels of land. Said parcels may contain more or less and the premises in this advertisement are as shown by the assessment books in the Office of the Supervisor of Assessments of said County.

The sale will begin on Wednesday, May 25th, 2022 at 9:00 AM ET and close Wednesday, May 25th, 2022 at 2:00 PM ET. A second sale will begin at 1:30 PM ET and close at 2:00 PM ET offering any unsold parcels.

The Allegany County (“the County”) tax sale enables the County to collect all unpaid and delinquent property taxes as required by statute. Legal references for this program are provided in the Tax Property Article of the Annotated Code of Maryland Title 14 Subtitle 8 Part III Tax Sales. All unpaid taxes on real property constitute a lien on the real property from the date they become due until paid (Section §14-804(a), Section §14-805(a)). It is mandatory for the Tax Collector (Collector) to sell any property on which taxes are in arrears (Section §14-808). There may be tax liens pertaining to properties sold for which taxes were paid prior to the sale date or other circumstances that render the sale invalid or void. In the event the County determines that a tax sale is invalid and void, the County will, as the exclusive remedy available to the bidder/purchaser, reimburse the bidder/purchaser the tax sale purchase price paid, without interest. The tax sale bidder/purchaser assumes all risks of any irregularity of the sale and has no other remedy against the County. The County is not liable for and will not pay the bidder/purchaser any interest, costs or attorney fees associated with the invalid or void sale. There is no warranty, expressed or implied, that a property has a marketable title or that it contains the area of land which it is said to contain; therefore, the bidder/purchaser assumes all risks in that regard. At the tax sale, a property tax lien is offered for sale to the highest bidder. Once sold and the total amount due is paid by the bidder/purchaser to the County, the County’s lien on the property passes to the bidder/purchaser.

Real property taxes are due and payable without interest and penalties on July 1 of each taxable year. For the purpose of this document the term “taxes” shall include, but is not limited to real property taxes. The taxes are overdue and in arrears on the succeeding October 1 for annual billing accounts; and October 1 and January 1 for semi-annual billing accounts, respectively. Interest and penalty accrues from October 1 and/or January 1 at the rate of 1 & ½ percent per month or any fraction of a month until taxes are paid in full. At least 30 days prior to the date the property tax lien is first advertised for tax sale, the Tax Collector shall mail a Final Bill Notice to the person who last appears as owner on the Collector’s tax rolls, at the last address shown on the tax rolls. The Collector shall cause to be published the delinquent properties in one or more newspapers for four consecutive weeks prior to the tax sale. This advertisement serves as notice to the property owners and any lien holders that the property tax lien is to be sold at tax sale. The advertisement contains the date, time and location of the sale as well as a description of the property, name of person who last appears on the Collector’s tax roll as the owner, the assessed value of the property as determined by the last assessment, the deed reference and the tax sale amount. The amount advertised includes, or may include any one or combination of the following: delinquent taxes (State, County and/or Municipal), interest, penalty, utility charges and service charges. The amount advertised also includes an advertising fee and attorney’s fees, plus an administration fee to cover the County’s cost of holding the tax sale. (Section §14-813)

THE SALE
Each parcel of property liable to sale shall be sold as an entirety as the parcel of property is assessed in the assessment records. No property tax lien will be sold for a sum less than the advertised price. The bid for each property will begin with the amount advertised. Bids will be received until no additional bids are offered. The property tax lien will be awarded to the highest bidder. The sale will proceed in like manner until all property tax liens are sold. Successful bidders/purchasers are required to pay the amount of the opening bid by 4:00 PM. on the day of the sale by ACH bank debit. A receipt of payment will be provided to the bidder for each property tax lien purchased. Successful bidders/purchasers who do not make payment for the full amount due for all winning bids by the specified time are considered non-compliant and will be excluded from future tax sale auctions held by Allegany County, MD. The residue of the purchase price shall remain on credit. Properties with no successful bids will be available for purchase for a period of six months after the tax sale.

THE CERTIFICATE OF SALE
The Collector shall deliver to the purchaser a Certificate of Tax Sale within 15 business days of the tax sale. The certificate sets forth the fact that the property tax lien described therein was: sold by the Collector of Tax to the purchaser, the date of sale, the total amount bid, the amount paid and the interest rate for redemption. The certificate is null and void if an action to foreclose right of redemption is not instituted by the holder within two years from the date of the tax sale. Thereafter, all rights of the purchaser of the certificate cease (Section §14-820). Any certificate of sale, properly executed, can be assigned. The assignment vests the assignee all rights, title and interest of the original purchaser (Section §14-821). The Certificate of Sale is presumptive evidence in all courts, in all proceedings by and against the purchaser, of the truth of the statements therein (section §14-823).

REDEMPTION BY OWNERS
The owner or other person having an estate or interest in the property sold has the right to redeem the property tax lien at any time until the right of redemption is finally foreclosed by an order of the Circuit Court (Section §14-827). During this period of redemption, the owner of the property has the right to continue in possession of and to exercise all rights of ownership until such time as the right of redemption is foreclosed (Section §14-830). To redeem a property tax lien, the owner shall determine the redemption amount and the need to obtain a release for actual and reasonable expenses from the certificate of sale holder by calling the Allegany County Tax Office. The redemption amount includes the amount paid, by the bidder, at tax sale; redemption interest computed at 18% per annum or 1-1/2 % per month, as stated on the Certificate of Sale, from the date of the tax sale to the date of redemption payment (Section §14-828), and reimbursement to the certificate of sale holder for actual and reasonable expenses incurred after the required four (4) month waiting period in preparation for any action to foreclose the right of redemption, including but not limited to: fees paid for recording the certificate of sale, for actual and reasonable attorney’s fees for each certificate of sale, for expenses incurred in the publication and service of process by publication, for reasonable fees for a necessary title search and for taxes (together with interest and penalties) arising after the date of sale that have been paid by the plaintiff or the holder of the certificate of sale (Section §14-843). Payment for redemption must be made by cash, money order, or bank check.

When the owner satisfies all redemption obligations, the Collector of Tax shall:

      1. Notify the holder of the Certificate of Sale that the property was redeemed and that the certificate must be surrendered to the Collector, as it is null and void;

      2. Upon receipt of the Certificate of Sale, remit all money received for redemption to the holder of the certificate (Section §14-828(c)).

      3. The Collector reserves the right to offset any redemption amounts against outstanding county taxes and/or utility charges due on any and all properties owned by the holder of the Certificate of Sale.

ACTION TO FORECLOSE
The holder of a certificate of sale may at any time after the expiration of six months from the date of sale, file a Complaint to Foreclose with the Allegany County Circuit Court to foreclose all rights of redemption of the property to which such certificate relates. If this action is not taken within a two-year period subsequent to the sale, the certificate is void (Section §14-833). The certificate of sale must be attached and made part of the complaint (Section §14-835). The plaintiff , in any action to foreclose the right of redemption, must be the holder of the certificate of sale. The defendants in the proceeding must be (a) record owner(s) of the property, (b) owner of ground rents, if applicable, (c) mortgage holders and trustees under any deed of trust, (d) the State of Maryland, and (e) the County (Section §14-836). If the court enters a Judgment to Foreclose Right of Redemption, the judgment must vest the plaintiff an absolute and indefeasible title in fee simple. If the property, on which the tax lien sold, was subject to ground rent, the judgment must vest a leasehold interest in the plaintiff (Section §14-844). The Judgment to Foreclose Right of Redemption will direct the Collector to execute a deed upon payment to the Collector of the balance of the purchase price, together with all taxes, interest, penalty and charges subsequent to the tax sale. The deed is to be prepared by the holder of the certificate of sale or an attorney representing the certificate holder. The Collector is not obligated to execute the deed until the Clerk of the Court has furnished the Collector with a certified copy of the judgment. If the holder of the certificate does not comply with the terms of the judgment within 90 days, the judgment may be stricken by the Court upon motion of an interested party (Section §14-847). Once a judgment is granted, the plaintiff becomes liable for taxes due after the judgment and for any surplus bid (Section §14-844(d)).

Jason Bennett
Tax and Utility Office
Allegany County, Maryland

 

For additional information, reference the Annotated Code of Maryland Title 14 Subtitle 8 Part III Tax Sales or consult with an attorney.

 

Terms of Sale

Please read carefully. This information addresses important time sensitive issues

1. The 2022 Tax Lien Sale will be an online auction on Wednesday, May 25th, 2022. Online registration is required to bid at the tax lien sale. Registration begins on Thursday, May 5th, 2022 and closes at 4:00 PM ET Wednesday, May 18th, 2022. A bidder number will be assigned. There will be a $50.00 refundable registration fee payable immediately via ACH Debit Authorization at the time of registration. Registration can be completed and the tax lien list can be viewed at https://allegany.marylandtaxsale.com/. Late registrations will not be accepted. Only one bidder number will be assigned per legal entity.

2. By registering to bid, each bidder represents and warrants that he/she is authorized to bid and financially able to successfully complete each sale. Bidders/bidder’s agent acknowledge that any misrepresentation may invalidate any sale transaction made and may result in being barred from future auction participation.

3. The opening bid, the minimum bid accepted, on any piece of property will include all, and not limited to, delinquent real estate taxes and sanitary district charges. Bidders will be informed of the opening (minimum) bid at the time the certificate is sold. If there are no bidders on the property, it will be sold to the Board of Commissioners for Allegany County, MD or the selling municipality.

4. The purchaser of the certificate of sale will be required to post the amount of the opening bid by 4:00 PM the day of the sale in order to receive the certificate of sale. Payment will be deducted from the bank account given at registration. In addition, any properties sold will incur a $10.00 auction fee paid by the purchaser. Successful bids will be conditionally accepted pending payment of amounts due. If payment cannot be processed through the purchaser’s given bank account, 100% of the purchaser’s transaction(s) will be void.

5. The certificate of sale will be mailed by certified mail to the address provided during registration within fifteen (15) business days from the tax sale date. The original certificate of sale is required to claim reimbursement in the event the property is redeemed. A fee of $10.00 will be assessed for each duplicate certificate of sale.

6. All property owners will be notified of the sale of the property, the amount the certificate of sale sold for, the amount of the excess bid, and the purchaser’s name. The purchase of a tax sale certificate does not convey any rights to the property or transfer ownership. It does provide the right to begin foreclosure proceedings against the property after the mandated redemption period of six months.

7. A Complaint to Foreclose the Right of Redemption must be filed with the Allegany County Circuit Court within two (2) years of the date of the certificate of sale. Failure to do so will render the certificate of sale void and any monies paid or expenses incurred will be forfeited.

8. The purchaser of the certificate of sale must notify the Allegany County Tax Office, in writing, when foreclosure proceedings are instituted. The notification must include the date foreclosure proceedings will begin, the name of the representing attorney, and the representing attorney’s telephone number. It is recommended the notification be made by the representing attorney. Failure to provide this notification in a timely manner will constitute a waiver of claim to all and any expenses incurred by the purchaser.

9. The purchaser of the certificate of sale must notify the Allegany County Tax Office of any change of address. To reassign a certificate of sale to another party contact the Allegany County Tax Office for the Request of Reassignment Form.

10. Upon request of the Allegany County Tax Office, an itemized statement of expenses incurred must be provided by the attorney of the purchaser. Failure to do so in a timely fashion may affect the amount reimbursed to the purchaser upon the redemption of the property. Allegany County will not be held accountable for collecting fees associated with the preparation of any action to foreclose the right of redemption in the absence of an itemized statement.

11. To record a deed for the property with the Clerk of Court for Allegany County, the purchaser will be required to bring current any and all taxes and charges including, but not limited to, water, sewer, and special charges made subsequent to the tax sale as well as the balance of the total bid, if applicable. Purchasers of a certificate of sale are responsible for all special benefit assessments made on or after the day of the tax sale.

12. There is no warranty, expressed or implied, that a property has a marketable title or that it contains the area of land which it is said to contain; therefore, the purchaser assumes all risks in that regard.

13. When a certificate of sale is found to be void or invalid for any reason, the purchaser will be notified and advised not to pursue any further foreclosure action or to incur additional expenses. Reimbursement to the bidder will be the amount paid for the certificate the day of the sale. No redemption interest will be paid. Allegany County is not liable for and will not pay any interest, costs, or attorney fees associated with the invalid or voided sale.

14. Failure to adhere to the conditions of tax lien sale may jeopardize, but not limited to, reimbursements and participation in future tax lien auctions held by Allegany County.

 

Tax sales are complex proceedings and Allegany County recommends the purchaser seek legal counsel prior to purchasing a tax lien certificate of sale. Allegany County cannot provide legal counsel.

 

Summary of Important Information

 

  Bidder Accounts  
  Allow foreign bidder registrations     No
  Single simultaneous bidder rule     No
 
  Auction Information  
  Bidding style     Direct Bid Auction
  Live Bidding or Sealed Bidding Open Live Bidding
  Maximum High Bid No
  High-Bid Premium No
 
  SubAccounts  
  Allow sub-accounts     No
  Automatic certificate rollup / rollup fee   --- ---
 
  Auction Dates and Times  
  Registration begins (site opens)**     05/05/2022 at 10:00 AM ET  
  Registration fees and Budgets begin     05/05/2022 at 10:00 AM ET  
  Bidding begins     05/25/2022 at 9:00 AM ET  
 
  Registration fees end       05/18/2022 at 4:00 PM ET   
  Participation Requirements        Set a budget  
  Pay the registration fee  
  
  Participation Requirements Due Date     05/18/2022 at 4:00 PM ET   
  Registrations end     05/18/2022 at 4:00 PM ET   
   
  First batch closes     05/25/2022 at 10:00 AM ET   
  Batch closing interval     60 Minutes
  Last batch closes     05/25/2022 at 1:00 PM ET  
   
  Auxiliary batch opens     05/25/2022 at 1:30 PM ET  
  Auxiliary batch closes     05/25/2022 at 2:00 PM ET  
   
  Payment due date     05/25/2022 at 4:00 PM ET   
 
  Budget, Deposit and Payment Information    
  Deposit or Budget required (% of estimated winnings)     100%
    
  Registration Fee     $50.00
  Registration Fee Refundable      Yes
  Registration Fee Applied to Winnings      No
   
  Deposit / Payment types acceptable:   Deposits Payments
      Budget    Yes ---
      ACH    Yes No
      ACH auto-debit final payment    --- Yes
      Wire transfers   No No
      Counter payments   No No
 
  Redemptions available via ACH?   No
 
  Public Access  
  Public computers available?   No
 
  ** Subject to change. The site will open when approved by the County.  

 

For an explanation of any of the terms above, please visit the FAQs.

 

 

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