As an Iowa homeowner, it’s essential to keep up with your property taxes. Failure to do so can lead to a tax lien on your property and even a loss of title to your property through a tax sale. In this article, we’ll dive more in-depth on Iowa Property Tax Sales.
The Effects of Unpaid Property Taxes in Iowa:
If you don’t pay your property taxes, the county treasurer may sell your property in a tax sale to cover the outstanding balance. A tax lien for unpaid property taxes takes precedence over other liens, such as mortgages.
Notice of a Tax Sale:
If your property taxes are unpaid, the county treasurer must notify you by May 1st (or the first business day in May if May 1st falls on a weekend). The treasurer must also publish a notice in a newspaper at least a week before the sale. After the tax sale, the county treasurer must send you a notice within 15 days informing you that your property was sold.
How Do Iowa Property Tax Sales Work?
At a public sale, the property is offered for sale, and the highest bidder receives a certificate of purchase, subject to your right of redemption. You can reclaim your property during the redemption period by paying the delinquent tax amounts, interest, penalties, and costs.
Redemption Period:
The redemption period typically lasts for one year and nine months after the sale. However, in some situations, the redemption period may be shorter. This includes certain abandoned properties or a home not selling at a previous tax sale. After the period ends, the certificate holder obtains a deed to your property and becomes the legal title holder.
Costs to Redeem Your Home:
To redeem your home after a tax sale, you must pay the county treasurer the price that the purchaser paid at the tax sale. Other costs are a fee for the certificate of purchase, interest at a rate of 2.0% per month, and the total amount of any subsequent years’ taxes the purchaser paid, plus interest.
Regaining Title to Your Property:
If you don’t redeem your property, the certificate holder may follow a statutory process and ultimately receive a tax sale deed to the property. After this occurs, you have limited options for regaining title to your property. However, if you believe that the statutory notice and filing requirements were not met, you may be able to file an action in court to regain title.
Conclusion:
In conclusion, failing to pay your property taxes can result in a tax lien on your property and potentially a tax sale. However, you can redeem your property during the redemption period by paying the delinquent taxes, interest, penalties, and costs. If you have questions about the Iowa property tax sales process, it’s advisable to consult with an experienced Iowa real estate attorney, such as Jeremy Danilson.
