Chicot County, Arkansas Tax‑Deed Sales: Investor’s Guide

In Arkansas, people can buy real estate through tax-deed sales instead of tax-lien certificates. When someone doesn’t pay their property taxes, the property goes to the Commissioner of State Lands (COSL). Each year, COSL holds an auction in each county where the highest bidder gets a limited warranty deed for the property. 

Since 2023, sales are final, so the new owner can’t change their mind. Investors should learn the auction process, especially in Chicot County and Arkansas, to take advantage of these opportunities.

Brief Overview of Chicot County’s Tax‑Deed Auctions

Arkansas sells properties for unpaid taxes, not liens. After two years of unpaid taxes, the county holds an auction. The highest bidder gets ownership but must deal with any title issues.

There’s an auction near Chicot County every year. The next one is on August 12, 2025, at 10:00 a.m. at Second Baptist Church in Monticello. Auctions occur between July and October, and the location changes each time.

People can pay their taxes until 4 p.m. the day before the auction. After that, they can’t reclaim the property. If redeeming within 30 days of the auction, payments must be certified or online. Cash is only accepted for redemption in Little Rock.

Winners must pay the full price on the auction day. They can’t use cash to buy. Payments can be made using checks, money orders, or credit/debit cards.

Important Sale Details (Summarized)

Detail	Chicot County Tax-Deed Auction (2025)
Tax sale type	Tax-deed sale. Highest bidder receives a limited warranty deed. No redemption after sale.
Typical sale date	Between July and October With location varies depending on availability
Redemption period	Until 4 p.m. the last business day before the auction. After that, sale is final.
Interest rate	None. Arkansas sells deeds, not liens.
Bid procedure	Register onsite (30 mins before). Minimum bid = taxes, penalties, costs. Highest bidder wins; full payment due immediately.
Deposit	Live auctions: no deposit. Online post-auction sales: $100 charged per parcel; balance due in 10 business days.
Registration	Required. Bring photo ID. Opens ~30 mins to 1 hour before auction.
Auction time	10:00 a.m. CST/CDT. Registration usually around 9 a.m.
Where to find updates	COSL Public Auction Catalog (www.cosl.org), local newspapers, and auction.cosl.org for unsold parcels.
Contact	Commissioner of State Lands – 501-324-9422, email: [email protected]

Chicot County’s Unique Features

Chicot County is located next to the Mississippi River in southeastern Arkansas. The county seat is Lake Village, a nice town by Lake Chicot. This lake is the biggest natural lake in Arkansas. It’s perfect for fishing, boating, and watching birds.

The county’s soil is very rich, making it great for growing crops like cotton, soybeans, rice, and corn. Catfish farming is also important here and brought in a lot of money back in 2001. Because of its good land and fish farming, Chicot is a great place for people who want to invest in land.

Chicot County has about 8,946 people, mostly living in rural areas. It was created in 1823 and named after the French word for “stump,” because of the tree stumps near the river. 

Visitors can enjoy spots like Lake Chicot State Park, where people can camp, fish, and take boat rides. The county courthouse, built in 1904, adds to the area’s charm. Nearby parks are great for hiking and hunting.

Getting around is easy. U.S. Highway 82 runs through Lake Village and connects to Greenville, Mississippi. U.S. Highway 65 runs along the western side of the county. There are also railway services that help move farm products.

Agriculture is the main part of Chicot’s economy, with high yields from the land. Other income sources include cattle farming, some manufacturing, and tourism from Lake Chicot. The county plans to improve internet and water services to help attract new businesses.

People here enjoy outdoor activities, history, and local culture. Fishing, hunting, and bird-watching are popular. The Lake Chicot Fall Festival showcases local crafts and food. Small towns offer community theaters, antique shops, and tasty local dishes like catfish.

Why Invest in Chicot County Tax‑Deed Sales?

Economic Factors and Real‑Estate Market Trends

Chicot County has great farmland, fish farming, and tourist spots, which help the economy. The average family makes about $39,683 a year, and 24% of people live in poverty.

Land prices are lower than in cities, making it easier to buy land. Investors can find land for farming or recreation. Improvements to internet and levees could raise land values in the next ten years.

High Returns with Manageable Risk

In Arkansas, buying a tax deed means you own the property. If it’s farm or timber land, you can earn more money than what you paid in back taxes. 

But be careful! The title has limits, so budget for fixing any issues. Research the location, access, flooding risks, and land use rules. 

Once you win an auction, that’s it—no changing your mind later. Doing your homework first helps you avoid surprises.

Auction Process and Bidding Strategy

1. Preparation – Review COSL’s Public Auction Catalog and research parcels. Use county assessor maps and property cards to confirm the location and size. Check for liens, easements or improvement district charges.
   
2. Registration – Arrive at the auction site early. Registration usually opens 30 minutes to one hour before the sale. Bring a valid photo ID. There is no registration fee.
   
3. Bidding – Parcels are offered in sale‑number order. The opening bid equals the delinquent taxes, penalties and costs. Bidding proceeds orally; the highest bid wins. Be mindful of your maximum budget and factor in potential remediation costs.
   
4. Payment – Pay the full purchase price immediately after winning. Cash is not accepted; use a personal or business check, cashier’s check, money order or credit/debit card. Credit/debit transactions may include processing fees.
   
5. Deed issuance – COSL issues a limited warranty deed after payment clears. A 90‑day litigation period allows interested parties to challenge the sale. During this time, avoid major improvements.
   
6. Post‑auction properties – Parcels that receive no bids at the live sale are listed on auction.cosl.org 30 days later. Buyers can bid online; the first $100 per parcel is charged to the bidder’s card as earnest money, and the balance must be paid within 10 business days.
   

Maximum Potential Returns

Arkansas doesn’t do interest bids like some states. Investors earn money from the land’s value going up and from renting, farming, or selling it. Starting bids are low because they’re based on unpaid taxes, so you can buy land for less than it’s worth. 

If the land has good timber or farmland, you might earn over 10% each year. But land that is hard to access or has environmental issues may not sell well. It’s important to check the soil quality, roads, and flood risk before buying.

Open to All Investors

To join an Arkansas auction, you need to be an adult with a valid U.S. ID. You can register in person or online for different types of auctions. Out-of-state folks can participate, but winners must pay right away. Once you buy land, you can’t back out, so know how to manage or sell it if needed.

Understanding the Arkansas Tax‑Deed Sale Process

How the Auction Works (Step‑by‑Step)

1. Certification – After two years of unpaid taxes, counties certify parcels to COSL. Legal notice is published in the local newspaper and on cosl.org.
   
2. Announcement – COSL posts a Public Auction Catalog listing sale dates, locations and parcel details. The county or contiguous county hosts the in‑person auction once a year.
   
3. Research and Due Diligence – Investors research each parcel’s location, access, liens and improvements. COSL’s site links to county property cards, but investors should also check county assessor and circuit‑clerk records for liens.
   
4. Registration – Register at the sale site with a photo ID; registration opens about 30 minutes before the sale. Receive a bidder card.
   
5. Bidding – Auctioneer offers parcels in numerical order. Bidders call out amounts; the highest bidder above the minimum wins.
   
6. Payment and Deed – Pay the full bid amount on the day of sale with approved payment method. After payment clears, COSL records a limited warranty deed. Expect a 90‑day waiting period to ensure the sale is not contested.
   
7. Unsold parcels – Unpurchased parcels enter the online post‑auction sale after 30 days. Bidding is open for 30 days; the highest online bidder must pay earnest money immediately and the balance within 10 business days.
   

Expected Returns on Arkansas Tax Deeds

Buying land can lead to different profits. If you purchase farmland or land near Lake Chicot, you could rent it to farmers or RV parks. Timberland can earn money from tree sales. Land near highways can be sold for homes or shops later.

Buying at an auction often costs only back taxes, which means you might earn a lot. Just remember to check the land carefully to ensure it’s usable and not landlocked.

Foreign Investor Participation

Arkansas does not prohibit out‑of‑state or foreign investors from participating in tax‑deed auctions, provided they have a valid U.S. identification. However, state law requires the buyer’s home of record to be within the United States for live auctions; otherwise, the purchase may be voided. International investors may need to form a U.S. entity and ensure they can pay promptly.

Importance of Due Diligence

What Due Diligence Entails

Due diligence protects investors from purchasing unusable or encumbered property. Key steps include:

• Verify location and access – Use county plat maps, GIS systems and on‑site visits to confirm the parcel’s boundaries and access roads.
  
• Check for liens and encumbrances – Some municipal liens, improvement district charges or federal tax liens survive the tax sale. Research county clerk and circuit‑court records.
  
• Assess flood risk – Chicot County lies along the Mississippi River; portions are within floodplains. Review FEMA flood maps and levee conditions.
  
• Consider environmental issues – Past agriculture or industry may have left contamination. Conduct environmental assessments for commercial parcels.
  
• Consult professionals – Engage a local abstractor or attorney to conduct a title search and advise on quiet‑title actions.
  

Risks of Skipping Due Diligence

Skipping research can lead to buying problem land, like parcels with debts or ones that are hard to access. Limited warranty deeds don’t guarantee clear ownership, and you might need a quiet-title action for title insurance. Sometimes, fixing issues can cost more than the land itself. Don’t get tricked by low bids. Always check the land’s value and what you can do with it.

Buying Over‑the‑Counter (OTC) Liens/Deeds in Arkansas

How to Purchase OTC Properties

After live auctions, unsold parcels go on the online list. Buyers can search by county or map. To bid, register and provide ID and payment info. Bidding is open for 30 days. 

When the auction ends, the highest bidder pays $100 per parcel or the full bid if it’s less than $100. The rest is due in 10 business days. If payment isn’t made on time, the sale is canceled, and the deposit is lost.

Benefits of OTC Purchases

• No competition – Many bidders focus on live auctions. Post‑auction parcels often receive fewer bids, allowing investors to acquire property at the minimum reserve price.
  
• Fixed minimums – The reserve bid for unsold parcels generally equals the delinquent taxes, penalties and costs; there is no bidding down of interest rates.
  
• Flexible timing – Online auctions are open 24/7 for 30 days. Investors can research and bid at their convenience.
  

Why Chicot County Is a Top Choice for Tax‑Deed Investors

Economic and Tax Advantages

Chicot’s economy relies on farming and fish farming. This creates chances to rent or sell properties that are available due to unpaid taxes. With fewer people living there, land prices stay low. Better levees and roads can increase land value over time. Plus, Arkansas has no state tax on profits from property sold after a year, which is good for investors.

Real Estate Market Overview

The county has few houses. Most of the land is for farming or open space. Home prices are lower than in many places, so they might go up in value.

Lake Chicot properties are pricier because they attract visitors. Buying old lots near the lake can lead to building small homes, RV spots, or vacation rentals. It’s a smart chance for investors.

Conclusion

Chicot County, Arkansas, is a good spot for investors. You can buy land at tax-deed auctions for what’s owed in unpaid taxes. The next auction is on August 12, 2025, giving you time to research. 

Make sure to check the land’s location, any extra costs, and flood risks. With good planning, you can earn well and help local communities by putting unused land back on the tax rolls.

Pro Tips for First‑Time Buyers

• Arrive early. Registration opens about 30 minutes before the auction—show up early to ask questions and get a good seat.
  
• Bring multiple payment methods. Wi‑Fi can be unreliable in rural areas. Carry a personal or business check and a backup cashier’s check or money order.
  
• Set a maximum bid. Determine your ceiling before bidding; auctions move quickly.
  
• Factor in additional costs. Budget for attorney fees, title insurance, quiet‑title actions, and any municipal liens.
  
• Inspect parcels. Visit the property or use aerial imagery to avoid landlocked or underwater parcels.
  

Frequently Asked Questions (FAQs)

Q3: Is there a redemption period after the sale?
A: No. Owners or interested parties may redeem until 4 p.m. on the last business day before the sale. After that, the sale is final.

Q4: Do investors earn interest like in tax lien states?
A: No. Arkansas does not sell liens. You receive the deed to the property, not an interest-bearing certificate.

Q5: How do I register to bid?
A: Registration is required. Arrive at the auction site with a valid photo ID. Registration typically opens about 30 minutes to one hour before the sale.

Q6: What is the bidding process like?
A: Parcels are offered in catalog order. The minimum bid equals delinquent taxes, penalties, and costs. Bidding is open outcry; the highest bidder wins.

Q7: How and when do I pay if I win a bid?
A: Full payment is due immediately after the sale. COSL does not accept cash. You can pay with a personal or business check, cashier’s check, money order, or credit/debit card (fees apply for card use).

Q8: Is there a deposit required?
A: For live auctions, no deposit is needed. For post-auction online sales, a $100 earnest-money fee per parcel is charged to your card, and the balance must be paid within 10 business days.

Useful Links

• Arkansas 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! 

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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