Frequently Asked Questions

Adjudicated Property & Tax Deed Sales

Getting Started







General Questions Regarding the Adjudicated Property Auction




Who knows about the adjudicated property auction?

Pursuant to La. R.S. 47:2203; 2206; or 2236, all tax sale parties are notified, and the auction is advertised to the public through publication in the official journal of the political subdivision. See. La. R.S. 43:203.


How does an adjudicated property auction work?

Pursuant to La. R.S. 47:2196, when a property is offered at tax title sale fails to receive a bid, which satisfies the existing delinquent amount due, tax title to the property is adjudicated to the political subdivision.

The political subdivision may thereafter sell adjudicated property, pursuant to La. R.S. 47:2201.

The adjudicated properties listed on CivicSource.com were adjudicated to the political subdivision greater than three years ago, and therefore no right of redemption exists in favor of the property owner. See: Article VII, Section 25(B) of the Louisiana Constitution.

Pursuant to La. R.S. 47:2203B.(1), whenever any person desires to initiate the public sale of adjudicated property and the political subdivision desires to sell, the person shall deposit an amount determined by the political subdivision to be sufficient to cover the expenses of the sale, including advertising, appraisals, and other costs associated with the sale. All auctions of adjudicated properties listed on CivicSource.com commence upon the placement of a deposit upon properties by interested investor(s).

Once a deposit is placed on listed property, the property undergoes the statutory pre-sale process prescribed by La. R.S. 47:2202 – 06 and is thereafter auctioned.

Louisiana law stipulates that the adjudicated property is sold at auction to the highest bidder. See: La. R.S. 47:2202.

The adjudicated property purchase(s) results in the purchaser acquiring full ownership to the property pursuant to La. R.S. 47:2207.



Can the political subdivision remove properties offered for auction?

Yes. The political subdivision reserves the right to withdraw from the auction any property listed at any time prior to the closing of the auction. If a property is withdrawn from the auction, it will be indicated as such on its full property description and details page. Additionally, if you have marked a property as a “Favorite” or placed a bid on property that is withdrawn from the auction, you will be notified by email.







What happens if a property is not sold during the auction?

Pursuant to La. R.S. 47:2203B, should the depositor at the sale fail to be the highest bidder, the money deposited shall be returned to him. However, if no one at the sale bids up to the minimum price provided in this Subpart, then the money shall be retained to pay the expenses of the sale, but any money remaining after the expenses are paid shall be returned to the depositor.


Bidding Process Details for Adjudicated Property Auction


When:

Upon the completion of the pre-sale statutory process, individual properties will become available for bid. Bidding will open at 8am and end at the time stated on CivicSource.com.


How:

Bidding on properties is accomplished via the full property description and details page. Users must have a valid bank account registered to bid on properties.


Type:

Adjudicated property auctions are a Premium Bid Style Auction; an open ascending price auction wherein the highest bidder at the close of the auction wins.
Participants will submit bids with knowledge of the value of the competing bids on the property. Additionally, if you placed a bid on a property and are outbid, you will be notified by email.


Winning:

The highest bid wins! Winners will only be determined at the conclusion of the auction.


Questions for Buyers Before Purchasing Adjudicated Property


How do I know which properties have been sold?

All adjudicated properties will be available for sale until the close of the auction.

However, the political subdivision reserves the right to withdraw from the auction any property listed prior to the closing of the auction. If a property is withdrawn from the auction, it will be indicated as such on its full property description and details page. Additionally, if you have marked a property as a “Favorite” or placed a bid on property that is withdrawn from the auction, you will be notified by email.





What payment methods are accepted?

Payment must be made via ACH using a registered bank account. Please call us to arrange a wire transfer. A processing fee will apply per additional wire, if not paying in one installment.


Questions for Purchasers Before the Sale


I am interested in purchasing a property, what do I do?

Adjudicated properties are offered in a buyer driven model, meaning investors initial the sale process by putting down a deposit. A deposit starts the legally mandated research & notification process (90 days) after which the depositor will be notified of when the auction will take place. If the depositor is not the winning bidder at the auction, they will be refunded their deposit.






Is the deposit included in the purchase price?

Yes, the deposit is included in the purchase price. If the depositor is the winning bidder, the pre-paid deposit is automatically applied at checkout. If the depositor is not the winning bidder, a refund is processed.



What does a tax deed / adjudication sale mean for neighbors who have been maintaining the property?

Subject to the approval of the political subdivision wherein a property is situated,
adjoining landowners have the right to purchase a property without it going to auction.
They should place the deposit on the property then download, complete and mail
the adjoining landowner form available on the property details page.
The same legal process will be followed, but the property will not go to an auction.
The taxing authority dictates the actual price of adjoining landowner sales.
Certain jurisdictions do not currently offer adjoining landowner sales (Orleans Parish), while others have specialized neighbor next-door programs. Please consult their stated guidelines for instructions.


Questions for Purchasers on Bundling Properties


What is a bundle?

An adjudicated or tax deed property bundle is a single property auction consisting of five or more properties, selected by an investor from within a single taxing authority and sold as a single property on CivicSource.com.



What are the benefits of bundling?

Title to all bundled properties is sold through a single auction, rather than competing for each property individually in separate auctions; and Depending upon the size of the bundle, closing costs are discounted from $150 to $300 per property.







When will I be contacted regarding my bundle?

A CivicSource representative will contact you within two business days of receipt of your bundle request email to confirm whether your bundle has been accepted and to provide you with payment instructions for your deposit.


When do I pay the deposit?

Payment must be made within two business days after notice from CivicSource of bundle approval and deposit amount.



Are there any discounts for bundling?

Yes. CivicSource provides cost rebates to the winning bidder. The rebate for bundles of 5 – 14 properties is $150 per property; for bundles of 15 – 24 properties is $225 per property; and for bundles of 25 or more properties is $300 per property.



I created the bundle and placed the deposit – is it possible I may not win the bundle at auction?

Yes. Although it is unlikely that another bidder will want to purchase the same bundle of properties you created, property bundles are sold at a public auction, just like individual properties in accordance with State law. Accordingly, the winner of the bundle is always the highest bidder at the conclusion of the auction.
If the winning bid is not paid for, you will be required to purchase the bundle at your highest bid.


Is it possible that some properties in my bundle may not make it to auction?

Yes. Properties can be redeemed at any time prior to recordation of the deed transferring ownership of the properties in the bundle after the auction. Additionally, although less likely, a property also can be removed from a bundle because it was deemed during the pre-sale research process to be no longer legally sellable.





What will be the starting bid price of a bundle at the auction?

The starting bid price of all bundles is $0 plus closing costs and title insurance. At the time a deposit is placed, the cost per property is estimated to be $5,000, which covers all closing costs and title insurance. However, because the amount of some costs cannot be finalized until the pre-sale legal work is complete, the starting price is subject to change. Costs may be added or reduced per auction.




Questions for Buyers After Purchasing Adjudicated Property


When do I need to pay for my purchases?

All payments, including wire transfer confirmation, will be due no later than 24 hours after the auction closes. The money will be put into escrow and be transferred at the closing.
Failure to pay for purchases within the prescribed time will result in being permanently banned from CivicSource.com.



Are there any additional fees or costs I will have to pay in addition to my winning bid price?

If your winning bid price exceeds $12,000, then yes, you will have additional title insurance costs. The starting bid price of every auction includes the minimum possible charge of $100 for up to $12,000 of owner’s policy coverage, and $1000 for up to $25,000 of tax sale endorsement coverage. The actual title insurance premium you will pay at closing will always be for the amount of coverage that matches your purchase price. When you are contacted by the closing department after the auction, you will be advised of any additional amount due for title insurance, which you will be able to pay at closing.



Do I have to notify the owner that I purchased the property?

No. All tax sale parties were notified pursuant to La. R.S. 47:2206 or 2236 that their rights to the property were to be terminated within a specified period of time.

The tax notice party’s failure to act within the specified time period made the property eligible for auction.

However, it is recommended that you provide property occupants, should any exist, with a copy of the Non-Warranty Cash Sale Certificate prior to such time as you intend to take physical possession of the property.



What happens if the property has a mortgage or other encumbrance?

All mortgage and lien holders were given notice of the impending sale of the adjudicated property. Failure to act within the specified time period made the property eligible for auction.

Accordingly, all mortgages, liens and encumbrances were extinguished prior to your purchase of the property, pursuant to La. R.S. 47:2208 or 2236.



Questions for Owners of Adjudicated Property




Can a family member or a third party redeem my property?

Pursuant to La. R.S. 47:2246, for property adjudicated to a political subdivision, after the expiration of the applicable redemptive period, any person may redeem tax sale title to property in the name of the tax debtor until any of the following shall occur:

(1) The later of sixty days or six months, as applicable, after the notice required by R.S. 47:2206, or the filing of the sale or donation transferring the property from the political subdivision pursuant to R.S. 47:2201 et seq.

(2) The granting of the order of possession pursuant to R.S. 47:2232.

(3) Sixty days or six months, as applicable, after the notice required by R.S. 47:2236.



Adjudicated Property Definitions


ACH

means Automated Clearing House, which is the clearing and settlement system used by U.S. commercial banks and other institutions.


Ad valorem tax

(Latin for "according to value") means a tax based on the value of real estate or personal property.


Adjudication

means, subject to Article VII, Section 25(A)(2) of the Constitution of Louisiana, the bid to be accepted in tax sales shall be at least equal to the statutory impositions, costs, and interest; otherwise, the tax collector shall bid in tax sale title to the property for the political subdivision. The tax collector shall make out a tax sale certificate and file the tax sale certificate with the recorder of conveyances of the parish in which the property is located.


Adjudicated property

means property of which tax sale title is acquired by a political subdivision pursuant to La. R.S. 47:2196.


Bid

means, for the purposes of adjudicated property auction, an offer of money to acquire full ownership to property.


Bidder

means, for the purposes of adjudicated property auction, a person offering money to acquire full ownership to property.


Certified funds

means a form of payment that is guaranteed to clear or settle by the company certifying the funds.


means, in computing, a small piece of text stored on a user"s computer by a web browser.



means the giving of a formal opinion regarding the substance or procedure of the law by an officer of the court, such as an attorney.


Office of Mortgages and Conveyances

means a public depository of documents that provides service to the public and legal profession. The office records all legal instruments that affect the transfer of real estate (immovable) and/or private or commercial (movable) property.


Open bidding

means, for the purpose of adjudicated property auction, the ability for competing bidders to see the prevailing winning bid amount.


Ordinance

means: (a) An act of a political subdivision that has the force and effect of law, including but not limited to an ordinance, a resolution, or a motion; or
(b) A rule or regulation promulgated by the State Land Office, the division of administration, or by another state agency with authority over adjudicated properties.


Non-warranty cash sale certificate

means the instrument issued pursuant La. R.S. 47:2207 by the political subdivision to the purchaser conferring ownership to the adjudicated property.


Notice

means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.


Political subdivision

means any of the following to the extent it has the power to levy ad valorem taxes and conduct tax sales for failure to pay ad valorem taxes:
(a) The state.
(b) Any political subdivision as defined in Article VI, Section 44 of the Louisiana Constitution.
(c) Any other agency, board, or instrumentality under Subparagraph (a) or (b) of this Paragraph.


Property

means, for the purpose of adjudicated property auction, adjudicated property.


Property owner

means, for the purpose of adjudicated property auction, the tax debtor or the political subdivision (if sale is being made pursuant to La. R.S. 47:2236).


Recorder of mortgages

means the office that records all legal instruments that affect the dlansfer of real estate (immovable) and/or private or commercial (movable) property.


Redeem

means performing the act of Redemption.


Redemption

means the legal mechanism in which a property owner may pay the tax sale purchaser the tax sale purchase amount, plus a five percent (5%) penalty thereon and interest at a rate of one percent (1%) per month to remove the tax sale title from the property as provided in the Article VII, Section 25 of the Louisiana Constitution.


Redemptive period

means the three (3) year period in which a person may redeem property as provided in the Article VII, Section 25 of the Louisiana Constitution. The redemptive period commences on the date the tax sale certificate is filed with the Office of Mortgages and Conveyances. For properties in the City of New Orleans, this redemption period is reduced to eighteen (18) months if the property is deemed legally blighted or abandoned.


Send

means either of the following:
(a) To deposit in the mail or deliver for transmission by any other commercially reasonable means of communication with postage or cost of transmission provided for, and properly addressed to any address reasonable under the circumstances.
(b) In any other way to cause to be received any written notice within the time it would have arrived if properly sent.


Statutory imposition

means ad valorem taxes and any imposition in addition to ad valorem taxes that are included on the tax bill sent to the tax debtor.


Successful bidder

means, for the purpose of adjudicated property auction, the individual who bid the highest cash amount.


Tax collector

means either the Office of the Sheriff as provided for Article V, Section 27 of the Louisiana Constitution, or Director of Department of Finance for the City of New Orleans as provided for by Article IV, Chapter 13, Section 4-1301 of the Home Rule of the City of New Orleans, or a political subdivision as defined by Article VI, Section 44 of the Louisiana Constitution.


Tax debtor

means, as of the date of determination, the person listed on the tax roll in accordance with La. R.S. 47:2126.


Tax notice party

means, as of the date of determination, the tax debtor and any person requesting notice pursuant to La. R.S. 47:2159.


Tax sale party

means the tax notice party, the owner of property, including the owner of record at the time of a tax sale, as shown in the conveyance records of the appropriate parish, and any other person holding an interest, such as a mortgage, privilege, or other encumbrance on the property, including a tax sale purchaser, as shown in the mortgage and conveyance records of the appropriate parish.


Winning bid

means, for the purpose of adjudicated property auction, the highest cash amount.


Writ of possession

means a writ addressed to the sheriff or constable commanding him to put the purchaser in physical possession of the property sold. See: La. R.S. 13:4346.


Disclaimer


Statement

The foregoing questions and answers are not intended as legal advice. While the information provided is believed to be accurate, auction participants are advised to educate themselves and/or to obtain the advice of an attorney as to the law and their legal rights. Property owners of auctioned property are advised to obtain the advice of an attorney as to their legal rights and obligations.