Transcript Slide 1

District 3: Patty Bartlett (Logan),
Bob Sagel (Morgan), Linda Statz (Phillips),
Wanda Lowery (Sedgwick)
Definition
Redemption of a tax lien is when:
• The taxpayer did not pay their
property taxes
• The Treasurer sold a lien on the
property at tax lien sale
• The taxpayer redeems by paying the
taxes, interest, fees and penalties to
remove the tax lien from the property
Who has Right to Redeem
§39-12-103(1)
• Owner including agent, assignee & attorney
• Any person having legal or equitable claim
therein; (i.e. lessee, optionee, easement holder,
lienor - including if retained in satisfaction of debt,
assignment & agency, assignee of lienor, installment
land contract buyer, townhouse owners, party
recording lis pendens)
• Owner of undivided interest - §39-12-103(2)
& 39-12-113
Who Cannot Redeem
• Limited Partner in limited partnership
• Bank holding only lien on note & deed of
trust against sold property
• Surface owner has no right to redeem
severed minerals under his property
• Does have right of first refusal to
purchase the lien prior to tax lien sale §39-11-150
Redemption Time Frame
• Mobile home located on property owned
by another individual – Minimum of 1
year to redeem
• Mobile home located on property owned
by same individual – Minimum of 3 years
to redeem
• Real Property – Minimum of 3 years to
redeem
Redemption Time Frame
• Redemption must be exercised prior to
issuance of Treasurer’s Deed or
Certificate of Ownership
• Property owner under legal disability (as
defined in 13-81-101(3) C.R.S.) –
• §39-12-104 – extended to earlier of 9 years after
date of recording tax deed or 2 years after
disability removed or ceases
Redemption Time Frame
• Tax lien sold to an individual ceases to be
a lien 15 years after date of sale, unless an
application for Treasurer’s Deed is
pending – 39-11-148 C.R.S.
• Tax lien struck off to County ceases to be
a lien 30 years after date of sale
Redemption Time Frame
• When a lien has expired, the Treasurer
shall immediately issue a Certificate of
Cancellation and enter “Cancelled by
provision of section 39-11-148, C.R.S.” in
tax sale records
• The Certificate of Cancellation is to be
presented to the Clerk and Recorder who
shall enter same in the record of land &
endorse date of entry & file same
Redemption Time Frame
• When a lien becomes unenforceable
pursuant to 31-25-1119 C.R.S. (bonds or
warrants issued for public improvements; i.e.
street & alley improvements, special districts
for sewers) Treasurer shall immediately
issue a Certificate of Cancellation & enter
“Cancelled by provision of sections 31-251119 & 39-11-148 C.R.S.” & file with Clerk
and Recorder
Redemption Dates
• Anytime before execution of deed §39-12-103(3)
• Execution means signing of deed §39-11-129
Redemption Payment
• Required to pay entire lien amount; i.e.,
• Amount sold at tax lien sale (not including
overbid),
• Amount of endorsement for each
succeeding year or years’ taxes,
• Interest at the rate the lien was sold for
from date of each payment (interest is
calculated the first of each month)
• $7 redemption fee
Redemption Payment
• Statutes do not require certified funds
• Can make it your office policy
• Record redemption information on
original Tax Lien Certificate & tax sale
record
• Suggest that Treasurer keep all original
Certificates in their safe keeping for
purpose of endorsements & redemptions
Redemption Payment
• If applicable, include Treasurer’s Fee of
$35 for properties with an assessed value
of less than $500 and $75 for properties
with assessed value of $500 or more
(check value at time of sale & request for
Deed), and costs of Treasurer’s Deed
process including title work, copies,
postage
Redemption Payment
• If a Lien Certificate is lost, it requires
proof given to and a Certificate issued by
Board of County Commissioners &
recorded by Clerk in the Recorded
Proceedings (39-11-120(3) C.R.S.)
Redemption Payment
• Redemptions involving Mobile Homes
• Notify Department of Revenue so lien
may be removed in the State’s record
• Submit $5.00 fee & copy of
Redemption along with their form
DR2695
• Redemption does not change ownership
of parcel being redeemed
Projected Redemption
• A Projected Redemption is prepared for
the party desiring to redeem, stating the
amount required in any given month
Certificate of Redemption
• Certificate of Redemption is issued to
show full amount of Redemption
• If tax lien is recorded with the Clerk and
Recorder, record Certificate of Redemption
• Treasurer issues check to the tax lien
investor
• Report to the IRS interest totaling $10 or
more earned by each investor during the
year on form 1099-INT each January
Assignment of County & Individually
Held Tax Lien Certificates
• Certificates of Tax Liens are assignable
documents & may be assigned on original
Tax Lien Certificate or by separate
Assignment
• Assignments should be noted in tax lien
records and in computer system
Assignment of County & Individually
Held Tax Lien Certificates
• When assigned, assignee assumes
position of the tax lien buyer
• Redemption funds are payable to current
holder of tax lien whether original buyer
or assignee
Assignment of County Held
Tax Lien Certificates
• When assigning a County Held certificate
• Have individual request assignment in
writing
• Treasurer may assign County held
certificates less than $10,000 in taxes (39-11120 & 39-11-122 C.R.S.)
• If greater than $10,000 it must be approved
by administrator and published
Assignment of County Held
Tax Lien Certificates
• Board of County Commissioners may
determine amount necessary for
assignment of County held tax lien in
accordance with §39-11-120(4)
Assignment of County Held
Tax Lien Certificates
• May assign tax lien for nonpayment of
irrigation or drainage district tax or
assessment by agreement with Board of
Directors of district involved - 39-11-123
C.R.S.
Assignment of County Held
Tax Lien Certificates
• If assigned when lien is 15 years old or
will become 15 years old within 1 year of
assignment, assignee shall be entitled to
a Treasurer’s Deed if applies for a Deed
within 1 year from date of assignment
Assignment of Individually Held
Tax Lien Certificates
• No assignment fee is collected when
assignment is from an individual investor