Drew County, Arkansas Tax Sale Guide: What Investors Should Know

Tax‑delinquent property sales in Arkansas are handled by the Commissioner of State Lands (COSL) rather than by individual counties. When property owners fail to pay real‑estate taxes for two years, their parcels are certified to the state and later offered for public sale. Investors often look to these auctions for bargain‑priced real estate or land to develop. This guide explains how tax deed investing works in Drew County and answers the key questions investors have about upcoming sales. It also provides context about Arkansas’s economy, attractions and why the state has become popular among tax deed investors.

Brief overview of Arkansas’s tax deed system

Arkansas uses a tax deed rather than a tax lien system. Unpaid taxes create a lien and, after a redemption period, the COSL sells the property to the highest bidder at a public auction. A winning bidder receives a limited warranty deed (similar to a quit‑claim deed) that conveys the state’s interest. Purchasers may need to file a quiet‑title action to obtain marketable title, and there is a 90‑day litigation period during which the sale can be challenged

Important details for Drew County’s sale

Fun facts about Arkansas

Drew County, Arkansas, has a tax sale where you can buy properties that people haven’t paid taxes on for two years. The state runs these sales, and they happen through the Commissioner of State Lands. If you win a bid, you get a kind of deed but might need to do some extra steps to get full ownership. 

In Drew County, the next auction is set for August 12, 2025. It will take place at Second Baptist Church in Monticello. You need to be there early to register, which starts at 9 a.m. You have to show a driver’s license to get a bidding card. Only U.S. residents can take part in the auction. 

When you bid, the starting price includes unpaid taxes and fees. The auction runs by saying bids out loud. You can’t pay in cash; use a check or a card instead, and payment is due right away. Once the sale is done, you can’t change your mind or get a refund.

Arkansas has many fun things to explore, like state parks. It also has a special park where you can search for real diamonds! The state’s population grew slightly over the years, now reaching about 3 million people. 

For more information on the auction, you can contact the Commissioner of State Lands. They have a lot of resources available online to help you learn more about the sales.

Understanding the Arkansas tax sale process

How does the auction work?

1. Certification and notice: After two years of unpaid taxes, parcels are certified to the state. The COSL publishes a legal notice and mails notice to the owner and interested parties at least thirty days before the sale. Owners may redeem by paying all taxes and fees until 4 p.m. on the last business day before the sale.
   
2. Live auction: Registration opens at 9 a.m.; the auction starts at 10 a.m. The minimum bid equals the delinquent taxes, penalties and costs. Bids are oral and must be in increments announced by the auctioneer. The highest bidder above the minimum wins.
   
3. Payment: Full payment is due immediately. As of 2023, cash is no longer accepted; bidders must use a personal or business check, cashier’s check, money order or credit/debit card.
   
4. Post‑auction: The COSL records a limited warranty deed in the county’s land records and mails it to the purchaser. The buyer should not make major improvements during the 90‑day litigation period.
   
5. Unsold property auctions: If a parcel doesn’t sell at the live auction, it is added to the online list after 30 days. Bidding is open for 30 days; the highest offer above the reserve wins and must be paid with certified funds within 10 business days.
   

Expected returns on Arkansas tax deeds

Returns vary widely. Investors can acquire vacant lots or rural acreage for a few hundred dollars and later resell for a premium if the property has timber, agricultural potential or development prospects. Conversely, some parcels are land‑locked or have environmental issues. Because Arkansas does not offer an interest rate on redeemed liens, the profit comes solely from the property’s appreciation or eventual resale.

Due diligence is essential

The COSL emphasises that buyers must research each property thoroughly before bidding. The auction catalogue provides a legal description and delinquent tax amount, but physical addresses are not guaranteed. Prospective buyers should:

• Review the county assessor’s property card (linked through the COSL catalogue) to see the assessed value and any structures.
  
• Examine plat maps and public records to confirm location, access and size.
  
• Search the circuit clerk’s records for liens, mortgages or judgments; some liens (municipal or improvement district assessments) may survive the tax sale.
  
• Consider hiring a title company to perform a title search. Research costs are not reimbursed.
  

Skipping due diligence may lead to purchasing unusable property, parcels burdened with liens or inaccessible land. Since all sales are final and there is no redemption after auction, the risk is borne entirely by the purchaser.

Buying over‑the‑counter (OTC) deeds in Arkansas

If bidders do not purchase parcels at the live auction, the auction team lists them on the COSL website for sale. You can buy these parcels through auction.cosl.org. To buy an OTC parcel, a bidder registers and places a bid online. They will charge the initial US$100 (earnest money) to the registered card when the auction closes, and you must pay the remaining balance within 10 business days. OTC purchases offer several benefits:

• Fixed reserve price – the starting bid is the amount of taxes and fees owed, so there is no competitive bidding.
  
• Remote participation – investors can buy from anywhere within the U.S. after verifying their identity.
  
• Daily availability – If you do not receive payment, you will forfeit the $100 deposit, and we may prevent you from participating in future sales.

Why Drew County and Arkansas are a smart investment choice

Drew County lies in southeast Arkansas and is known for its timber industry, rich farmland and the university town of Monticello. The county benefits from a diversified economy, with forestry, agriculture and manufacturing providing a stable employment base. The University of Arkansas at Monticello adds a student rental market, and timber‑related industries support commercial activity.

Arkansas’s overall economy is growing. Exports of goods reached $6.9 billion in 2024, supporting approximately 34,000 jobs. Transportation equipment, food products and chemicals lead the manufacturing secto. A thriving agricultural sector—especially rice, poultry and soybeans—combined with tourism draw visitors and residents. Because property taxes fund local schools and services, counties are motivated to return delinquent parcels to productive use. This creates a steady supply of tax‑delinquent properties.

Pro tips for participating in Drew County’s tax sale

• Arrive early: For live sales, be at the venue by 9 a.m. to register and review any last‑minute announcements. Registration typically closes when the auction begins.
  
• Bring acceptable payment forms: Personal or business check, cashier’s check, money order or credit/debit card; cash is not accepted.
  
• Set a budget: Decide your maximum bid before the auction. Factor in potential legal fees for quiet title actions and future property taxes.
  
• Research access and zoning: Some parcels may be landlocked or have zoning restrictions. Visit the site beforehand if possible.
  
• Beware of liens: Not all liens are extinguished at a tax deed sale. Municipal or improvement district assessments may become your responsibility.
  
• Expect a 90‑day litigation period: Do not make major improvements until this period expires.
  

Frequently asked questions (FAQs)

Useful Links

• Drew County Website 
• State of Arkansas Commissioner of State Lands
• Arkansas offers a wealth of opportunities with Tax Deed Investing
• Let’s talk about Tax Deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Call to Action

Drew County has tax-sale auctions listed right now. Visit our Auction Calendar to explore the listings. Don’t forget to check out our free resources to build your knowledge, and when you’re ready, Book a free call to speak with someone who can help you navigate the path.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded