Sale to Prior Owner (Repurchase)
Most all types of tax forfeited land can be repurchased before it is sold or conveyed. The only individual allowed to file a repurchase is a prior owner. There is a limited timeframe in which to apply to get your property back once it has forfeited to the State. Only a limited group of individuals qualify as a prior owner for a repurchase.
Who Can Repurchase
Per Minnesota Statutes, section 282.241, the privilege to repurchase a parcel of tax forfeited land is limited to the following parties:
- Owner at the time of forfeiture
- Typically this is the party who holds the legal title to the property and that title is recorded in the county recorder’s office or registrar of titles office.
- Typically this is the party who holds a legal interest in the property of a former owner who is deceased or the personal representative who is appointed by a Probate Court.
- Example #1: A mortgagee (lender) who has taken a mortgage on the parcel as security for repayment of a debt.
- Example #2: The buyer under a contract for deed who is listed in the county tax rolls as the taxpayer of record.
Time Period for Repurchase
Any parcel which was classified as homestead property on the date of forfeiture may be repurchased anytime before it is sold or conveyed to a third party.
- The county is not required to give the property owner a certain amount of time to repurchase before selling or conveying a parcel; it may be sold anytime after the forfeiture.
- If the parcel is sold or conveyed, the privilege of repurchasing automatically ends at the time of the sale or conveyance.
Any parcel which was classified as non-homestead property on the date of forfeiture may be repurchased anytime within one year from the date of forfeiture, providing it has not already been sold or conveyed.
The county is not required to wait one year before selling or conveying a parcel; it may be sold or conveyed anytime during the one-year window of time for repurchasing.
If the parcel is sold or conveyed, the privilege of repurchasing automatically ends at the time of the sale or conveyance.
A parcel can be repurchased for the basic repurchase price. The repurchase price is equal to the sum of all:
- Cancelled taxes, including all delinquent real property taxes, plus penalties, accrued interest and costs attributable to the taxes.
- All property taxes plus penalties, interest and costs on those taxes for the taxes payable year following the year of the forfeiture and all subsequent years through the year of repurchase.
- All delinquent special assessments cancelled at the time of forfeiture, plus penalties, accrued interest and costs attributable to those assessments.
- Special assessments not levied between the date of forfeiture and the date of repurchase.
- Any additional costs and interest relating to taxes or assessments accrued between the date of forfeiture and the date of repurchase.
- Extra costs related to repurchase and recording of deed.
- Administrative service fee - $150.00 – due at the time the application is submitted.
- State deed fee – $25.00
- State deed tax – 0.0033 x repurchase amount, with a minimum amount of $1.65.
- Maintenance costs incurred from the date of forfeiture through the effective date of repurchase
- Deed recording fee - $46.00 per deed
- Agricultural conservation fee - $5.00
Quick Overview of Process
It is important to remember that a prior owner does not have a right to repurchase; they have the privilege of submitting a written application to the county board requesting to repurchase.
- Prior owner submits an application to the Taxpayer Services Division for processing, including payment of the repurchase price and extra costs.
- Application is submitted to the county board for consideration. County Board must determine one of the following conditions to be true for approval:
- An undue hardship or injustice resulting from the tax forfeiture will be corrected by the repurchase
- The repurchase will best serve the public interest
- Application is approved or denied by the County Board