Perry County, Arkansas Tax Sale Guide: How Tax Deed Auctions Work

Tax sales can be confusing. In Perry County, Arkansas, they hold tax deed auctions once a year. The State Commissioner of State Lands manages these sales. If you win, you get a warranty deed for the property.

Arkansas does not sell tax lien certificates, it’s all about tax deeds here. This guide will help answer questions about the tax sale and share tips for bidding and research.

Brief Overview of Arkansas Tax Deed Investing

Key Aspect	Description
Tax Sale Type	Tax deed. Properties with unpaid taxes are certified to the State and sold at public auction with a limited warranty deed.
Typical Sale Date	Once a year, July–October.
Redemption Period	Until 4 PM CT on the last business day before the auction. No redemption after sale. Deeds have a 90-day litigation period.
Interest/Penalty Rate	Owners must pay 10% simple interest per year plus a 10% penalty per year to redeem. Investors do not earn interest (deed state).
Bid Procedure	Premium bid. Minimum = taxes, penalties, interest, costs. Open to U.S. residents; highest bid wins.
Deposit/Payment	Live: No deposit, pay in full immediately (check, money order, card; no cash). Online: $100 deposit charged; balance due in 10 business days.
Registration	Live: On-site, 30 minutes before auction with photo ID. Online: Create account, verify ID, provide U.S. ID and card.
Auction Location	Benton Event Center, Meeting Room 1, 17322 I-30 N, Benton (for 2025). Locations may change each year.
Contact	Commissioner of State Lands, 7003 Valley Ranch Dr, Little Rock, AR 72223. Phone: 501-324-9422. Email: [email protected].

Important Details About Arkansas Tax Deed Sales

In Perry County, Arkansas, tax sales happen once a year. The state sells properties that haven’t paid taxes for a while. If you buy a property at the auction, you get a warranty deed for it. 

Unlike some states, Arkansas focuses on tax deeds and not tax liens. This means you buy the actual property and not just a claim against it. 

Tax deed auctions have some unique rules. If owners do not pay their taxes for a year, the state takes the property. Owners can only redeem their property until 4 PM the day before the sale. Once the auction happens, there is no going back. 

When you bid, you start from the amount owed in taxes and fees. You raise your bid from there. People must register to bid, which is easy. If you win, you will pay right after the auction and then get your deed. It is best to wait a bit before doing any big work on the property. 

Anyone can pay off the delinquent taxes before the auction to keep their property. If the winning bid is more than what was owed, the old owner can claim that extra money within a year. After buying, there is a 90-day waiting period during which others might contest the sale. It is smart to talk to a lawyer to make sure everything is clear with the title.

Why Perry County and Arkansas Are Ideal for Tax Deed Investors

Economic and Real‑Estate Factors

• Affordable Entry: Arkansas’s property values are lower than the national average, so minimum bids at tax sales are often modest. Investors can acquire land or homes at a fraction of market value. With property taxes averaging 1.7 % of personal income, holding costs remain low.
  
• High Upside, Limited Risk: Since Arkansas sells deeds rather than liens, the winning bidder obtains full ownership rights (subject to quieting title). If the original owner redeems before the sale, investors can bid on other parcels. If not, they own the property outright; there is no interest rate to bid down and no competition to accept a lower return.
  
• Growing Population and Industry: The state’s population has grown to over 3 million, and major employers like Walmart and Tyson Foods drive job creation. Expanding manufacturing, logistics and tourism sectors support property demand.
  

Auction Process for Tax Deed Sales

1. County Certification: After taxes are unpaid for one year, county collectors certify parcels to the Commissioner of State Lands. Title vests with the state.
   
2. Notice and Redemption Period: The Commissioner publishes notice in the newspaper and mails notice to owners and interested parties. Owners have until 4 PM the last business day before the auction to redeem.
   
3. Auction Day: The live auction is conducted in the county or an adjacent county. Registration opens 30 minutes prior, and bidders must show a photo ID. The auctioneer reads the legal description; bidders call out amounts. The highest bid above the minimum is accepted.
   
4. Payment and Deed: Winners pay immediately. The Commissioner records a limited warranty deed. After the 90‑day litigation period, the buyer can quiet title and obtain full marketable title.
   
5. Unsold Parcels: Thirty days after the live auction, unsold parcels are listed in the post‑auction online sale. Bidders register online, pay a $100 earnest deposit when winning, and have ten business days to remit the balance.
   

Maximum Potential Returns

Returns on Arkansas tax deeds depend on how much value the property has compared to what someone bids for it. Buyers can make money by selling, renting, or keeping the property. After the auction, there’s no way for the original owner to get the property back. There’s also no interest that lowers the bid amount, so returns can be better than in states with liens. Sometimes, investors buy land or homes for just a few thousand dollars and later sell them for much more. But it’s really important to do your homework first.

Open to All Investors

Arkansas welcomes investors from across the United States. Foreign investors and former property owners are not allowed to bid. To participate online, you must have a valid U.S. government‑issued ID and an address within the U.S. Both individuals and business entities can register.

Understanding the Arkansas Tax Deed Sale Process

How the Auction Works

1. Research Parcels: Use COSL’s Public Auction Catalog at to review parcel lists. Click the parcel number to view tax assessor records and maps. Visit the property or view satellite images to evaluate access, terrain and improvements.
   
2. Check for Liens and Assessments: Arkansas attempts to notify all recorded lienholders, but some liens—such as municipal liens, improvement district assessments or IRS liens—may survive the sale. Search county records and consult a title company.
   
3. Register and Bid: Attend the live auction or register online. At the sale, bid only what you are prepared to pay. Remember that the minimum bid equals the tax debt, and any bid increment raises your cost.
   
4. Close the Sale: Pay the purchase price as required. For online sales, promptly send certified funds for the balance.
   
5. Quiet Title: After receiving the deed and waiting 90 days, hire an attorney to file a quiet‑title suit if you plan to sell or obtain financing. Title insurance companies may require a quiet title action before issuing insurance.
   

Expected Returns on Arkansas Tax Deeds

Arkansas tax deeds grant ownership instead of interest. Returns depend on property appreciation or resale value. Investors can sell or rent properties for profit, but some may have issues like being landlocked, environmental concerns, or liens, necessitating careful research.

Foreign Investor Participation

In Arkansas, people who want to bid for projects must have a home in the United States. If you live outside the country, you can’t join in. Local investors, like individuals, LLCs, and partnerships, are welcome to take part. The good thing is that everyone gets to bid at the same interest rate. This means smaller investors can really compete with bigger companies.

Importance of Due Diligence in Arkansas Tax Deed Investing

What Due Diligence Entails

• Legal Research: Verify the legal description and parcel location. Ensure the description is accurate; ambiguous descriptions can void the sale.
  
• Title Search: Check for mortgages, liens, judgments and municipal assessments. Some liens may survive the sale.
  
• Physical Inspection: Inspect the property in person if possible. Some parcels may be landlocked, flood‑prone or contain only a portion of a lot. If you can’t visit, use GIS maps and contact local officials.
  
• Financial Analysis: Estimate the property’s market value and potential costs (repairs, taxes, and quiet‑title lawsuit). Avoid overbidding; set a maximum bid based on your analysis.
  

Risks of Skipping Due Diligence

Failing to research may lead to purchasing unusable land, inheriting liens, or paying more than the property is worth. Some properties may have environmental contamination or be part of homeowners’ associations with fees. Always budget for legal costs to quiet title.

Buying Over‑the‑Counter (OTC) Deeds in Perry County

How to Purchase OTC Deeds

After the live auction, unsold parcels enter the post‑auction online sale 30 days later. To buy one:

1. Register Online: Create an account at auction.cosl.org, verify your identity and add a credit/debit card.
   
2. Browse Available Parcels: Search by county or view a map. Research each parcel thoroughly. Some unsold properties may have issues (access, liens, etc.).
   
3. Bid: Enter your maximum bid. The system will incrementally bid on your behalf up to your limit. If you win, $100 is automatically charged to your card. Pay the balance within ten business days.
   
4. Receive Deed: Upon payment, the COSL issues a limited warranty deed as with live auctions.
   

Benefits of OTC Purchases

• Less Competition: Fewer bidders means you might acquire parcels near the minimum bid.
  
• Flexible Timing: Online sales remain open for 30 days, giving you time to research and bid.
  
• Fixed Costs: The earnest money deposit is fixed ($100), and the remaining balance is due only if you win.
  

Pro Tips for Arkansas Tax Deed Investors

1. Start Small: Attend a live auction as an observer before bidding. This helps you understand the pace and etiquette.
   
2. Use the Parcel Number: Always identify parcels by parcel number and legal description, not by street address, which may be approximate or incorrect.
   
3. Bring Appropriate Payment: Checks or money orders should be made to the “Commissioner of State Lands.” Have a credit/debit card as backup, but remember processing fees apply.
   
4. Expect Legal Work: Budget for a quiet‑title action. Without it, you may struggle to sell or finance the property.
   
5. Stay Up‑to‑Date: Laws change. Act 354 of 2023, for example, ended post‑sale redemption. Check COSL’s site for current rules and auction calendars.
   

Frequently Asked Questions (FAQs)

Q: What do I need to register?
A: For live sales, arrive 30 minutes before the auction with a valid government-issued photo ID. Registration is free. For online post-auction sales, you must create an account, verify your ID, and have a U.S. credit or debit card.

Q: Is a deposit required to bid?
A: At live auctions, no deposit is required, but payment is due in full immediately. For online post-auction sales, $100 earnest money per parcel is charged to your registered card, with the balance due within 10 business days.

Q: What payment methods are accepted?
A: Personal or business check, cashier’s check, money order, or credit/debit card (processing fees apply). Cash is not accepted.

Q: What happens after I win a parcel?
A: You’ll receive a limited warranty deed recorded in the county. Arkansas deeds often require a quiet title action before title insurance is available.

Useful Links

• Perry County COSL 
• 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! 

Need a Hand?

Getting started in Perry County is easier than you think. Visit our Auction Calendar to explore listings and schedules. Learn with our free resources, and when you’re ready to take action or ask questions, Book a call to speak with someone who’s helped others succeed.

Sign up or log in to view the full content.

Free help available

Get a Tax Deed in the next 30 days

Need a hand on your first deal at up to 90% off? Book a free call and we’ll guide you step by step.

Auction
Calendar Book a free
call Free
resources

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