Washington County in northwest Arkansas is home to Fayetteville, Springdale and several rural communities. Like other Arkansas counties, it participates in the Commissioner of State Lands (COSL) program, which manages tax‑delinquent property for the state. Instead of placing liens on unpaid taxes, Arkansas sells the deed to the property. Understanding the process helps investors discover deals while reducing risk.

Brief overview of Arkansas’ tax deed investing

Arkansas is a tax‑deed state, meaning investors bid on the actual property rather than on a lien. Parcels are certified to the state after property owners are behind in paying real‑estate taxes. COSL schedules regional auctions (often during summer) where the property is sold to the highest bidder. Arkansas does not allow a redemption period after the auction; the owner must pay the taxes and fees before 4 PM Central Time the last business day prior to the auction or the sale is final. Once a parcel sells, the winning bidder receives a limited warranty deed. Unsold parcels go to an online post‑auction sale about 30 days later.

Important details

Detail	Information
Tax sale type	Tax deed
Typical sale date	Washington County’s sale is usually held in August during COSL’s summer auction season. Dates change yearly.
Redemption period	There is no redemption after the auction. Owners must redeem by 4 PM Central Time on the last business day before the sale. Online post‑auction sales follow the same rule.
Bid procedure	Live auctions are open to the public. Registration starts 30 minutes before the auction; bidders fill out a card and show identification. Properties are offered in sale‑number order with a minimum bid equal to the taxes, interest, penalties and costs due. Competitive bidding can raise the price. Online post‑auction sales require registration, identity verification and a valid credit/debit card. Bids cannot be withdrawn, and failure to pay may bar future participation.
Deposit/payment	At live auctions the full bid price is due immediately; cash is not accepted and buyers must pay with a personal/business check, cashier’s check, money order or credit/debit card. Online post‑auction winners have the first US$100 charged immediately to their card and must pay the balance with certified funds within 10 business days
Other requirements	A limited warranty deed is issued after the sale. There is a 90‑day litigation period before significant improvements should be made. The COSL office moved to 7003 Valley Ranch Drive, Little Rock. Recent legislation (SB 310, 2025) authorizes COSL to conduct auctions online

Unique features of Arkansas tax deed investing

Arkansas’ system appeals to investors because it offers the potential to acquire property at steep discounts. Minimum bids start at the amount of taxes and fees due, so desirable parcels sometimes sell for far less than market value. Since Act 241 (effective July 1 2023) eliminated the post‑auction redemption period, winning bidders no longer risk losing the property to an owner redeeming after the sale. Recent legislation (SB 310) further modernizes the process by allowing the Commissioner to conduct auctions entirely online, expanding access for out‑of‑state and international investors. A limited warranty deed is issued following a 90‑day litigation period, providing a clear (though not perfect) title.

Fun facts about Arkansas

• Nicknames – Arkansas is popularly called “The Natural State”, reflecting its forests, mountains and rivers; historically it was known as the “Land of Opportunity”
• Motto – The state motto is “Regnat populus” (“The People Rule”).
• Geography – Arkansas is a landlocked state in the south‑central U.S. The Ozark and Ouachita Mountains dominate the west; lowlands and delta regions lie along the Mississippi River to the east. It shares borders with Missouri, Tennessee, Mississippi, Louisiana, Texas and Oklahoma.
• Population – Arkansas’s population is about 3.1 million (2025 estimate). The state has a diverse economy, including agriculture, retail and logistics, and major companies such as Walmart originated here
• State symbols – The state bird is the mockingbird, the flower is the apple blossom, and the state tree is the pine tree

Attractions and economic highlights

Popular attractions – Arkansas is known for its natural beauty. Visitors can enjoy hiking and camping in the Ozark Mountains, boating and fishing on rivers and lakes, or relaxing in Hot Springs National Park. Urban centres like Little Rock and Fayetteville offer theatres, museums and historic sites. Northwest Arkansas, where Washington County is located, also hosts the Crystal Bridges Museum of American Art and the Walmart Museum.

Transportation infrastructure – The state is served by a network of interstate highways (I‑40, I‑49 and I‑30), rail lines and regional airports. Northwest Arkansas National Airport (XNA) near Bentonville provides commercial flights to major hubs, while the Port of Little Rock connects to the Mississippi River system.

Economic development – Arkansas’ economy spans agriculture (rice, soybeans, poultry), manufacturing (steel, aerospace), retail (home to Walmart), logistics and tourism. Northwest Arkansas has experienced rapid growth thanks to major employers like Walmart, Tyson Foods and J.B. Hunt, making real estate demand strong in Washington County.

Community appeal – Residents enjoy outdoor recreation (hiking, fishing, biking), farmer’s markets, college sports (University of Arkansas Razorbacks) and a growing arts scene. The mixture of small‑town charm and modern amenities makes the area attractive for homebuyers and renters.

Why Arkansas is ideal for tax deed investors

Arkansas offers high potential returns with manageable risk. Since there is no post‑auction redemption period, bidders who pay for a property receive title once the 90‑day litigation period expires. Investors can acquire land or houses at prices equal to the delinquent taxes, often far below market value. The state’s growing economy and population can drive appreciation and rental demand, especially in fast‑growing regions like Northwest Arkansas.

What makes Arkansas tax deed certificates a smart investment?

High returns with low risk

Because minimum bids are based only on back taxes and fees, investors can purchase real estate at a significant discount. Once the deed is issued there is no interest to collect, but the property itself may produce income through rental or resale. Compared to traditional investments, the risk of losing principal is low if investors choose properties wisely and perform due diligence. The elimination of the post‑auction redemption period reduces uncertainty.

Auction process for tax‑deed sales

At live auctions, registration opens 30 minutes before the start time. Properties are sold in catalog order and bidding begins at the amount of taxes and costs owed. The highest bidder wins and must pay immediately using an approved form of payment. Bids are final and cannot be withdrawn. Unsold parcels are offered online after about 30 days; online bidders must register, verify identity and place their bids through the COSL website.

Maximum potential returns

There is no statutory interest rate for the buyer because Arkansas sells the deed. Returns come from resale or rental. Investors can potentially acquire buildable lots, houses or timber land for pennies on the dollar and resell at market value. If the original owner redeems before the sale, the investor simply moves on to the next property without financial commitment.

Open to all investors

Arkansas allows anyone, including out‑of‑state and international investors, to participate in tax‑deed auctions as long as they register and comply with payment rules. Recent legislative amendments (SB 310) allow the Commissioner to conduct auctions online, expanding access. There is no residency requirement, making it a global investment opportunity.

Understanding the Arkansas tax‑deed sale process

How the auction works

1. Certification – When property taxes remain unpaid for several years, the county certifies the parcel to the COSL for collection.
2. Notice and redemption – Owners and interested parties receive a notice and may redeem the property by paying the full amount due before 4 PM on the last business day before the sale
3. Auction – The parcel is offered at a live auction in sale‑number order. Minimum bid equals taxes, penalties and costs
4. Payment and deed – The highest bidder pays in full immediately and later receives a limited warranty deed after a 90‑day litigation period
5. Post‑auction sale – Unsold parcels are listed online about 30 days after the auction; online bidders must deposit $100 and pay the balance within 10 business days

Expected returns – Returns depend on the difference between the purchase price (tax amount) and the property’s market value. In Northwest Arkansas, rapid growth and demand for housing and commercial sites create opportunities for appreciation. There is no interest rate; instead, profits come from selling or renting the property.

Foreign investor participation – Arkansas law does not restrict foreign buyers. Online bidding and the absence of a redemption period make it attractive to investors worldwide.

Importance of due diligence in Arkansas tax‑deed investing

What due diligence entails – Successful investors research properties before bidding. Suggested steps include:

• Verify the property location and condition by reviewing the assessor’s maps, plat maps and Google Street View.
• Check for surviving liens such as municipal liens or improvement district assessments; these may remain after the sale.
• Order a title search or consult an attorney to identify encumbrances.
• Estimate resale value by comparing similar properties in the area.

Risks of skipping due diligence

Buying sight unseen can lead to unpleasant surprises, such as landlocked parcels, environmental issues, or substantial liens. Since bids are final and the state sells property as‑is, lack of research can turn a bargain into a money pit

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

When parcels do not sell at auction, they are added to the Unsold Property list and offered online. To purchase an OTC deed:

1. Register on the COSL auction website and complete identity verification
2. Search for parcels by county and submit a bid. The first $100 of each winning bid is charged to your card and is non‑refundable if you fail to complete payment.
3. Pay the balance with certified funds within 10 business days

Benefits of OTC purchases – OTC properties often have lower competition, and fixed purchase prices equal to the taxes owed. There is no bidding war, and investors can take time to research each parcel.

Why Arkansas is a top choice for tax‑deed investors

Economic and tax advantages – Arkansas’s low property taxes, strong economic growth and expanding transportation infrastructure foster real‑estate appreciation. The absence of a post‑auction redemption period and affordable minimum bids offer a favourable risk‑reward balance. Investors also benefit from a streamlined process that now includes online auctions.

Real estate market overview – Northwest Arkansas has been one of the fastest‑growing regions in the U.S., with rising demand for housing and commercial sites. This growth, driven by major employers and a thriving university, bolsters property values. Rural areas of Washington County may offer timber or recreational land at low prices.

Arkansas’ tax‑deed auctions provide a unique opportunity to acquire real estate at a fraction of market value. With no redemption period after the sale, a simple bidding process and the ability to participate online, investors can secure properties and build wealth. However, success depends on diligent research and understanding the rules. By studying each parcel, verifying liens and planning exit strategies, investors can participate confidently in Washington County’s next tax‑deed sale.

Pro tips

• Arrive early – Registration opens 30 minutes before live auctions; arriving early ensures time to ask questions.
• Bring acceptable payment – Carry a check, cashier’s check, money order or credit/debit card; cash is not accepted
• Budget for fees – Credit/debit card payments incur a processing fee, and there is a 4 % card surcharge at live auctions.
• Hold off on improvements – Wait until the 90‑day litigation period ends before making significant repairs or construction.
• Monitor the auction calendar – COSL publishes upcoming sales each spring; sign up for alerts so you don’t miss Washington County’s date.

FAQs for Arkansas tax‑deed sales

Do I have to live in Arkansas to bid? No. Anyone can participate in the auction. Online bidding allows out‑of‑state and international investors to purchase property.

Can the property owner redeem after I win? No. Act 241 eliminated the post‑auction redemption period. Owners must redeem before 4 PM on the last business day prior to the sale or lose the property.

What happens if I don’t pay my winning bid? Failure to complete payment bars you from future auctions and forfeits any deposit.

Are there additional liens on the property? Some liens (e.g., municipal or improvement district fees) may survive the sale. Perform a title search to uncover these. COSL sells property as‑is.

When do I get my deed? The Commissioner issues a limited warranty deed after the sale. There is a 90‑day litigation period before the deed becomes final.

Useful links

• COSL – Commissioner of State Lands
• Post‑Auction Sales website
• Washington County Collector
• DataScout property cards
• 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

Washington County could be the right place to begin your investing journey. Go and visit our Auction Calendar to explore available tax-sale listings. Our free resources are built to help you get started, and when you’re ready for extra help, you can book a call for expert guidance.

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