Franklin County, Arkansas Tax Deed Sales

Buying tax-delinquent property can be a special kind of investment. In Arkansas, the state sells property deeds at auctions if taxes haven’t been paid. This is different from other states where you can buy tax-lien certificates and earn interest on unpaid bills. Investors can sometimes get real estate for less money than it’s worth. But there are rules to follow and deadlines to meet. This guide explains how tax sales work in Franklin County, Arkansas. It also shows why investing there can be a smart choice.

Brief overview of Arkansas tax‑deed investing

In Arkansas, if you don’t pay your property taxes, your county tells the Commissioner of State Lands. Each county has one auction each year, usually in July to October, to sell properties with unpaid taxes.

Owners can pay their taxes until 4 p.m. the day before the auction. After that, the sale is final, and you can’t get the property back. A new law removed the waiting period after the auction.

You need to register and show a photo ID to bid. Cash isn’t accepted; you must pay right away with a check, credit card, or certified money. For online sales, there’s a $100 deposit, and you have ten days to pay the rest. The winner gets a limited warranty deed but may need to prove ownership before selling or getting a loan.

Important details

Item	Details & Links
Tax sale type	Tax deed; limited‑warranty deed; no lien certificates; redemption before sale.
Typical sale date	Once per year, Jul–Oct. Franklin
Registration	Required; U.S. ID. On‑site reg ~30–60 min before start;
Auction time & location	10:00 a.m. CT. ATU–Ozark, Student Services & Conference Center (Bldg 7), Room 117A, 1700 Helberg Ln, Ozark. Catalog
Redemption period	Redeem until 4 p.m. last business day before sale; no post‑sale redemption
Bid procedure & terms	Min bid = taxes + penalties + interest + costs. Pay in full at sale. No cash. Post‑auction online: $100 charged; balance due 10 business days.
Deposit / earnest money	First $100 per parcel (online); forfeited if balance unpaid.
Contact & updates	COSL Real Estate Office, 7003 Valley Ranch Dr, Little Rock, AR. (501) 324‑9422 • [email protected]. Franklin County: [email protected].
Redemption/litigation after sale	No redemption after sale. 90‑day litigation window; avoid major work until it ends.

Understanding Arkansas’s tax‑deed system

How the auction works

1. Certification & notice – Counties certify tax‑delinquent parcels to the state when taxes remain unpaid for a year. The COSL publishes a notice of sale in the local newspaper and mails notices to the owner and known interested parties. Notices list the amount of taxes owed and the sale date.
   
2. Research – Before bidding, investors should research the parcel’s location, condition and encumbrances. The COSL warns that not all liens are extinguished by tax sales; parcels may be subject to city liens, improvement district assessments or other restrictions. The state offers parcel mapping via DataScoutPro, but buyers should visit the county assessor or hire a title company for more detailed information.
   
3. Registration – Arrive early on the sale day and register with a valid driver’s license or other government‑issued ID. For online auctions, you must create an account, verify your identity and provide a credit/debit card.
   
4. Bidding – Auctions are conducted live, beginning at 10 a.m. Central Time. Each parcel is offered in sale‑number order. Bidding starts at the amount of taxes, interest and penalties owed. The highest bid at or above this amount wins.
   
5. Payment & deed – Successful bidders must pay the full amount immediately after the auction. The COSL issues a limited‑warranty deed, usually recorded within a few weeks. Because the deed only conveys the state’s interest, investors typically file a “quiet‑title” action to obtain clear marketable title.
   
6. Post‑auction sales – Parcels that do not sell at the live auction go to the post‑auction list. After 30 days they may be purchased online. Bidding remains open for 30 days from the first bid; the earnest‑money deposit (US$100) is charged to the bidder’s card and the balance is due within ten business days.

Investor returns and risks

Tax‑deed investing in Arkansas is not about collecting interest; it is about acquiring real estate at a fraction of market value. Properties may sell for little more than the taxes owed, especially in rural counties like Franklin. Investors can then resell, lease or develop the property. However, due diligence is critical:

• No guarantee of clear title – The COSL explicitly states that the state does not warrant the title or guarantee that liens are extinguished. Buyers may need to clear judgments or municipal liens before reselling.
  
• “As‑is” condition – The state does not inspect parcels. Structures may be dilapidated or nonexistent, and the land may lack road access.
  
• Pending taxes – Bidders must pay current‑year taxes (not yet delinquent) after purchase.
  
• Litigation period – It is recommended that investors wait until the 90‑day litigation period has expired before making costly improvements.
  

Franklin County: Facts, attractions & economy

• Franklin County has two main towns, Charleston and Ozark, because the Arkansas River splits the area. In 2020, about 17,000 people lived there. The county is known for its farming, especially livestock and poultry. Butterball has a big turkey factory in Ozark. 

• It’s also part of Arkansas’s wine region, with popular wineries and fun events like the Altus Grape Festival. Charleston was the first town in the South to make its schools open to everyone in 1954.

• There are natural gas and oil fields in the area, and gas was important for the economy back in the 1940s. For fun, people can go rafting, fishing, or hiking in places like the Mulberry River and Ozark Highlands Trail. 

• Franklin County has some historical sites, including a church from 1879 and a memorial for miners. Getting around is easy because Interstate 40 and the Arkansas River go through it. 

• The economy relies on farming, poultry, winemaking, and some natural gas work. Because the county is mostly rural, property prices can be low, making it a good place for investors.

• Tax-deed investors like Franklin County because it’s affordable. The prices for unpaid tax properties can be just a few hundred dollars. There’s also steady demand for homes and rental places thanks to companies like Butterball. Outdoor fun and wine festivals bring visitors, which can lead to more vacation rentals. Arkansas has clear rules about property sales, so investors know their purchases are final.
  

What makes Arkansas tax‑deed sales a smart investment?

High returns with manageable risk

Tax‑deed buyers do not earn interest; instead they acquire property. However, the return on investment can be substantial because properties often sell for far below market value. For example, if you buy a parcel for US$2,000 (taxes owed) and later sell it for US$15,000 after quieting title and minimal repairs, the gross return would be 650 %. Of course, results vary and due diligence is critical. Investors should budget for quiet‑title costs and assume some parcels may not be buildable.

Bidding process

The bidding process is straightforward: the auctioneer announces each parcel and opens bidding at the taxes due. Interested bidders raise their hand or call out bids. There is no proxy bidding or mail‑in bidding. The highest bid above the minimum wins. At online post‑auction sales, investors enter their bid and may set a maximum; the system automatically increases bids in preset increments until the maximum is reached.

Maximum potential returns

The maximum return is not fixed by statute since the buyer acquires the entire property. In some cases, the property may be worth many times the purchase price. In other cases, it may only be suitable for agriculture or conservation. Investors can further improve returns by:

• Performing due diligence – Checking for municipal liens or restrictions.
  
• Quieting title promptly – Filing a quiet‑title suit soon after the 90‑day litigation period can reduce holding time.
  
• Reselling or renting – Marketing the property to local buyers, farmers or recreational users.
  

Open to all investors (with limits)

Arkansas law allows any person or entity whose home of record is within the United States to bid; foreign investors whose home address is outside the U.S. may not bid at live auctions. Registration requires a valid driver’s licence or government ID. There is no residency requirement within Arkansas, so investors from other states can participate easily.

Due diligence: the key to successful investing

Steps in due diligence

1. Research the legal description – The legal description in the COSL catalog may differ from the property’s physical address. Use county GIS maps, the assessor’s parcel card and plat maps to identify the property.
   
2. Check for liens and encumbrances – Some city liens, improvement‑district fees and federal tax liens survive the sale. Hire a title company or search public records at the circuit clerk’s office.
   
3. Inspect the property – Drive by the site or use satellite imagery. Confirm there is road access and no environmental hazards. Remember the state sells property “as‑is”.
   
4. Estimate exit strategy – Decide whether to hold, rent, farm or resell. Consider quiet‑title costs and possible repairs.
   

Risks of skipping due diligence

• Hidden liens could force you to pay more than you expected.
  
• Access issues may make the land unusable.
  
• Environmental problems (e.g., wells, dumps) could create liability. The state makes no warranties on environmental condition.
  

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

After live auctions, unsold properties are listed on the post‑auction sales portal (auction.cosl.org). When the first bid is placed on a parcel, a 30‑day clock starts; the highest online bid at closing wins. The earnest‑money deposit (US$100) is charged immediately. The buyer has ten business days to pay the balance. If no additional bids are placed, the initial bidder can obtain property for the minimum reserve (generally equal to the taxes owed). OTC purchases are attractive because there is no live bidding competition and investors have time to research each parcel.

Benefits of OTC purchases

• Fixed minimum price – The reserve bid is often lower than at live auctions.
  
• Research time – You can review GIS maps, call the assessor and examine court records before bidding.
  
• No travel – All transactions are handled online.
  

Why Franklin County is a top choice for tax‑deed investors

• Diverse economy – Agriculture, poultry processing, winemaking and natural‑gas extraction provide multiple revenue streams, keeping property values resilient.
  
• Tourism potential – Outdoor recreation and wine festivals bring visitors, making the county suitable for vacation rentals and RV parks.
  
• Low competition – Franklin County’s rural nature means fewer bidders compared with urban counties. Investors can often acquire parcels at or near the opening bid.
  
• Strategic location – Interstate 40 and the Arkansas River connect the county to Fort Smith (approx. 35 miles) and the Fayetteville‑Springdale‑Rogers metro. The county’s dual seats, Charleston and Ozark, provide government services on both sides of the river.
  

Pro tips for auction success

• Arrive early – Registration may open as early as an hour before the auction. Arriving early lets you get your bid card and review last‑minute parcel changes.
  
• Bring multiple payment options – Some rural venues may have unreliable internet; having a checkbook and a debit card avoids payment issues.
  
• Track unsold parcels – If a parcel you wanted sells for too much at the live auction, monitor the post‑auction list. You might find similar properties with less competition.
  
• Budget for quiet title – Set aside funds for attorney fees and court costs (often US$1,000–US$2,500) to obtain marketable title.
  

Stay within your comfort zone – Avoid overbidding on parcels with potential environmental issues or unknown access.

Frequently asked questions

When are Franklin County tax sales held?
The COSL holds one live auction per year for each county. For 2025 the Franklin County sale is July 24 at 10 a.m. Central Time. Future dates are announced in May and posted on the COSL website.

Is registration required to bid?
Yes. You must register before the auction and provide a government‑issued photo ID.

When does registration open and close?
Registration usually begins 30 minutes to one hour before the sale; for the 2025 regional auction registration opens at 9 a.m. and closes when bidding starts at 10 a.m..

Where is the auction held?
The Franklin County auction is held at Arkansas Tech University – Ozark Campus, Student Services & Conference Center (Building 7), 1700 Helberg Lane, Ozark.

How does bidding work?
Bids start at the amount of delinquent taxes, penalties and interest. The highest bid wins. Payment must be made in full immediately, and cash is not accepted.

What is the redemption period?
Owners or interested parties may redeem the property up until 4 p.m. the last business day before the auction. There is no redemption after the sale.

How long do I have to hold the property before I can sell it?
You must wait until the 90‑day litigation period expires. After that, you can file a quiet title suit to obtain a marketable title.

Where can I find lists of available parcels?
The COSL publishes the Public Auction Catalogue and the post‑auction sales list at www.cosl.org:contentReference[oaicite:62]{index=62}. You can also search maps via DataScoutPro or contact the Franklin County assessor.

Useful links

• Franklin 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

Franklin 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