Now that we're all done celebrating the Fourth of July and contemplating the signing of the Declaration of Independence, it's time to think about something more contemporary that occurs in the city of our capital - the annual real property tax sale. Conducted by the Office of Tax and Revenue, this tax lien certificate sale will take place July 18-20, 2011 in Washington, D.C.
The redemption period for these tax lien certificates is a short 6 months, and the interest rate is 18 percent per annum. At the sale, bidding begins at the amount of delinquent taxes and increases in increments. The winning bid amount is the highest bid. There is NO INTEREST given on the overbid amount.
More than 6,200 commercial and residential real property tax liens are being advertised for this year's sale. This list is available on the OTR's website at http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594443.asp.
There are a few things you must take care of prior to participating in the sale. First, registration is mandatory, and can be done any time from July 11 until the final day of the sale. Purchasers are required to complete Form FR-500, Combined Business Tax Registration Application, prior to registering. This form is available online. As part of the registration process, prospective bidders also must make a deposit of at least 20 percent of their total bid. A $200 tax sale fee will be added to each property at the time of the sale.
In the fourth month following the last day of the tax sale, the tax lien purchaser may begin a title search. After six months, a court action to obtain the property may be initiated.
P.S., The Platinum Rogue Investor Collection has the answers to all your tax sale questions.
Or call 816-673-1874 for more information.