CITY AND COUNTY OF DENVER
BIDDING RULES FOR THE TREASURER’S ANNUAL PUBLIC AUCTION OF REAL ESTATE TAX LIENS
FOR TAX YEAR 2011
LOCATION OF PUBLIC AUCTION
The annual public auction of real estate tax liens will be held as an internet auction. Tax liens available for bid will be listed at www.denvertaxsale.com (hereinafter referred to as “Auction Website.”)
DATE AND TIME OF PUBLIC AUCTION
Bidding will begin on November 1, 2012 at 8:00 a.m. M.D.T. and will close on November 5, 2012 at 5:00 p.m. M.S.T.
Each bidder must register on the Auction Website before they will be allowed to participate in the tax lien sale. After registering, each bidder will receive a bidding number from the Auction Website that will enable the bidder to place bids. All bidders must make a deposit on the Auction Website before their bids will be accepted. Registration and deposits may be made starting October 15, 2012, and must be completed no later than November 4, 2012, at 5:00 p.m. M.S.T. No registration or deposits will be allowed after this time. Each bidder shall make a deposit equal to ten percent (10%) of the total dollar amount of tax liens the bidder anticipates winning. All deposits shall be made by electronic funds transfer. Final determination regarding the acceptability of any deposit will be at the discretion of the Treasurer. If a bidder’s deposit drops below ten percent (10%) of the total dollar amount of all tax liens won, plus the amount of active bids, while there are still active bids, the active bids will not be accepted. Buyers are responsible to ensure the information on their registration is correct since certificates of purchase, redemption checks and refund checks are prepared from this information.
Access to computer workstations for bidding will be available in the City and County of Denver, Treasury Division, 201 West Colfax Avenue, Wellington E Webb Municipal Office Building, Denver, Colorado between October 15, 2012 and November 7, 2012, between the hours of 8:00 a.m. M.D.T./M.S.T. and 5:00 p.m. M.D.T./M.S.T., Monday through Friday. Access will be on a first come first served basis.
UNPAID TAX LIST AND PUBLIC AUCTION
Publication of the unpaid tax list will be in alphabetical order by property owner name. The list will be published in The Denver Post on September 28, October 5, and 12. Taxes will be auctioned in parcel identification number order. The list of the unpaid taxes, in parcel identification number order, will be posted (1) at the Auction Website beginning October 15, 2012 and (2) in the Taxpayer Service area of the Treasury Division for several days before the public auction. Each parcel will be offered for the amount of taxes, advertising, penalty interest, and fees and will be subject to general bidding.
In accordance with §39-11-115 (2) (c) and (d), C.R.S., minimum bids and bid increase increments are as follows:
Minimum bids: The minimum starting bid for each tax lien is equal to the amount of the unpaid taxes, interest, penalties, and fees (the tax lien face value).
Bid increments: Bid increments shall be one dollar ($1.00). The Auction Website automatically limits a maximum premium (amount bid over the tax lien face value) to 30% of the tax lien face value. To bid over this amount, the buyer must contact RealAuction Customer Service at: (954) 734-7400 or (877) 361-7325. Once a batch closes, the Auction Website evaluates the bids and identifies the highest bidder. Tax liens are awarded to the highest bidder, or in the event of a tie, the winner will be selected at random by the Auction Website, and the winning bid amount will equal the amount of the tie bid.
The bidding rules and all instructions on accessing the public auction and submitting bids will be posted at the Auction Website on October 15, 2012.
Tax liens will be grouped into batches and sold in one hour increments starting on November 5, 2012, at 8:00 a.m. M.S.T. and concluding on November 5, 2012, at 5:00 p.m. M.S.T. Tax liens in each batch will be identified with a closing time.
Bids may be made starting November 1, 2012, at 8:00 a.m. M.D.T. Bids will be accepted for each tax lien until the batch containing it closes. The Auction Website stores the bids for each tax lien until the batch containing it closes. Prior to the closing of the batch, bidders may change or withdraw their bids. Once a batch closes, the bids become final and may not be changed or withdrawn.
Each winning bidder shall make a deposit of funds sufficient to cover the total amount of the bidder’s winning bids on the Auction Website no later than November 7, 2012, at 5:00 p.m. M.S.T. If a winning bidder fails to make such a deposit by this time, the Treasurer may, in the Treasurer’s sole discretion, award the tax liens to another bidder or may offer the tax lien for sale. The Treasurer may prohibit a person, who fails to pay the amount due from bidding, from participating in any tax lien sales for up to five years in accordance with § 39-11-116, C.R.S.
The certificate of purchase issued on a successful bid will show the legal description, purchase amount, and buyer’s name (as entered in registration), interest rate, and date of sale. Buyers will be notified when their certificates are ready to be picked up. The City and County of Denver will keep them if the buyer wishes and provide copies.
Redemption interest is 10% per annum. If parcels are redeemed prior to delivery of certificates, redemption checks will be mailed to buyers and notations made on buyers’ lists of purchases.
Employees and officials of the City and County of Denver, and members of their families are not allowed to purchase at the Public Auction.
- Those investing in tax liens do so at their own risk and are advised to exercise due diligence in carefully analyzing which tax liens to bid on. There are no guarantees expressed or implied regarding whether a tax lien will prove to be a profitable investment.
- Delinquent Real Estate Tax payments must be received in our office by 4:30 p.m. M.D.T., Wednesday, October 31, 2012. Payments will not be accepted after that time without redemption interest. Payments will not be permitted during the Annual Public Auction.
Any questions regarding the Annual Public Auction should be directed to the Treasury Division, Taxpayer Service, 201 West Colfax Avenue, Wellington E Webb Municipal Office Building, 1st floor, Denver Colorado 80202, (720) 913-9300.
STEVEN L ELLINGTON, TREASURER