Frequently Asked Questions about Tax Sales
1. What are the date, time and location of your tax sale? Third Tuesday in May Time: Starts at 10:00 AM Location: Queen Anne’s County Commissioners’ meeting room, 107 North Liberty Street, Centreville, MD - 2nd Floor. 2. How often are tax sales held? Annually – the third Tuesday in May
3. Does the County hold a deed sale in addition to a lien sale? If so, when and where does it take place? No
4. When and where will the tax sale be advertised? The notice of advertisement will be published weekly for the three weeks prior to the tax sale. The advertisement is not updated for payments received after advertisement. Only one newspaper meets the requirement of “a newspaper that have a general circulation in the county in which the property is located” (Annotated Code of Maryland – Tax Property §14-813). The Record Observer (Telephone number – 410-758-1400) Information will be available on the Queen Anne’s County website and updated weekly for the three weeks prior to the tax sale.
5. How and when do I register for the tax sale? Registration starts at 8:00 AM the day of the tax sale and continues throughout the auction. Should you want to preprint the forms, they can be found under “Conditions of Sale” for the current year.
6. What are the payment requirements at the sale (cashiers checks, personal checks, credit cards, etc.)? Is there a deposit required before the sale? If so, how soon before the sale is the deposit due? Personal checks will be accepted on the day of the sale. We do not require a deposit prior to the sale. We do not accept credit cards.
7. What is the bidding process? Bidding starts at the sale amount. The sale amount is the sum of delinquent amounts owed the County plus expenses incurred in making the sale. The tax sale lien is awarded to the highest bidder. All properties sold at tax sale are subject to a high bid premium (if applicable). Sale amount and high bid premium must be paid on the day of the auction.
8. What is a High Bid Premium and how is it calculated? High bid premiums are additional funds collected for a tax sale property whereby the highest bid exceeds the high bid threshold. The high bid threshold is forty percent (40%) of the property’s assessed value except agricultural land. The collector of taxes determines the high bid threshold for agricultural land. The high bid premium is calculated as twenty percent (20%) of the amount that exceeds the high bid threshold. An example can be found under “Bid Premium Example”. The County shall refund the high bid premium without interest to:
° The holder of the tax sale certificate on redemption of the property for which the high bid was paid, or
° The plaintiff in an action to foreclose the right of redemption on delivery of a tax sale deed for the property for which the high bid premium was paid.
9. What type of document is issued at the sale? An itemized cash receipt showing for each lien purchased: the amount paid, the total bid, and the bid premium. The original certificate of tax sale is mailed to the bidder or kept by Queen Anne’s County depending on the bidders request in the “Conditions of Sale”. The original certificate must be returned to the County upon property owner redemption prior to distribution of funds.
10. Are there any other expenses in addition to the cost of the lien? If the tax sale purchaser proceeds with foreclosure, there will be foreclosure, transfer, recording costs, etc. These costs are solely the responsibility of the tax sale purchaser.
11. What is the foreclosure process, and will the County handle the foreclosure process for a fee? If so what is the fee? A tax sale purchaser may institute a foreclosure proceeding through Queen Anne’s County Circuit Court. To insure that you fully comply with the law and the required procedures as set forth in the Annotated Code of Maryland, Tax Property Article §14-808 to §14-854, you may wish to seek the advice of an attorney. The County does not handle the foreclosure process.
12. What happens to the liens that are not sold at the Tax Lien Certificate auction? Can they be purchased over-the-counter directly from the county? Can I get a list of these liens? Can I purchase them now? The liens can be purchased over-the-counter directly from the County. A list will be furnished per request at no additional cost.
13. Do you allow investors to invest in Tax Lien Certificates without attending the auction via mail, telephone, or fax? Can I send a representative to the sale to bid for me? An investor or their representative must register and attend the auction. Keep in mind the “Conditions of Sale” requires a tax ID or social security number. Those tax liens not purchased at the auction may be purchased by mail.
14. Would you please send a current list of Tax Delinquencies and place me on your mailing list for future mailings? If there is a charge for the list, please notify me and I will be happy to send the proper fee. We do not mail out a list of delinquent properties prior to our tax sale. Please see our advertisement in the newspaper and our listing on the www.qac.org website.
15. Will you please forward a copy of the statutes regarding tax sales in your jurisdiction? We do not provide copies of the State tax sale statutes. The tax sale statutes are found in the Annotated Code of Maryland, Tax Property Article. To access the Annotated Code of Maryland, Tax Property Article you may try the following website: http://mlis.state.md.us/cgi-win/web_statutes.exe the sections for tax sale are §14-808 thru §14-854 inclusive.
16. How long is the tax lien valid? The tax lien certificate is valid for two (2) years from the date of the certificate.
17. What interest rate is paid on the lien upon redemption? The current interest rate paid by Queen Anne’s County on tax sale property is twelve percent (12%) annually. The interest amount will be calculated at a monthly rate from the date of sale to the date of redemption.
18. What if the owner does not redeem the property? If an owner fails to redeem his property from tax sale, the bidder may file a civil action case in Queen Anne’s County Circuit Court to foreclose the owner’s right of redemption. The action to foreclose the owner’s right of redemption must be filed no less than six (6) months from the date of sale and no more than two years from the date of the sale. If judgment is granted in favor of the bidder, the bidder may gain full title to the property by paying the balance of their bid, if any, any taxes and other fees that have accrued after the date of sale, after which a deed can be submitted to the Director of Finance. Payment must be made and deed submitted within ninety (90) days or the Director of Finance will move to dismiss the judgment, see the Annotated Code of Maryland, Tax Property Article §14-847 (d). If judgment is stricken, it is the same as if the bidder never filed civil action (see question number 19 below).
19. What will happen if a bidder does not file a civil action case within two (2) years? If the owner does not redeem and no civil case is filed within two (2) years from the date of the certificate of sale, the certificate of sale is void and the bidder loses all rights to the property and to any monetary reimbursement.