Buying at the St. Louis County Tax Sale? Don't Miss the Next Step

🏠 St. Louis County Tax Sale: Winning the Bid Is Only Step One

The annual St. Louis County Tax Sale is coming up on August 24, and it can provide investors with an opportunity to acquire properties for significantly less than their potential market value.

But if you're planning to bid, there's something important to understand:

The St. Louis County process is completely different from the St. Louis City tax sale.

And winning the bid does not mean you own the property.

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What Happens After You Win?

St. Louis County operates under Missouri's Jones-Munger Act (Chapter 140).

If you're the successful bidder and pay the required amount, you'll generally receive a Certificate of Purchase—not a deed.

The existing owner and certain other interested parties still have an opportunity to redeem the property.

For properties purchased at a first or second offering, that redemption process generally lasts at least one year. Third-offering properties work differently and have a 90-day redemption process.

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The Notice Requirements Are Critical

If you want to ultimately receive a Collector's Deed, simply waiting for the redemption period to expire isn't enough.

The purchaser is responsible for completing very specific statutory requirements, which can include:

✔ Obtaining a proper title search

✔ Identifying the owner and other parties with recorded interests in the property

✔ Sending the required Notices of Right to Redeem by both first-class and certified mail

✔ Taking additional steps when notices are returned undelivered

✔ Preparing and submitting the required affidavit and supporting documentation to the Collector

✔ Complying with different deadlines depending upon whether the property was purchased at a first, second, or third offering

These aren't deadlines you want to miss.

Failure to comply with Missouri's statutory requirements can result in the purchaser losing their interest in the property entirely.

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What If the Owner Redeems?

Redemption isn't necessarily a disaster for the investor.

Generally, the purchaser receives the purchase money back along with certain allowable costs and up to 10% annual interest on the applicable portion of the purchase price.

However, there's an important catch for aggressive bidders:

You don't earn interest on the amount you bid above the delinquent taxes and costs.

So if you're bidding substantially above the opening amount because you really want the property, that's something to factor into your numbers.

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If Nobody Redeems...

Once the applicable redemption period expires and all statutory requirements have been properly completed, the purchaser can obtain a Collector's Deed.

Now you own it.

But you may still have one more problem:

Owning the property and having marketable title aren't necessarily the same thing.

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You May Still Need a Quiet Title Lawsuit

A Collector's Deed alone is often not be enough for a title company to insure the property. That can become a major issue when you're ready to:

• Sell the property

• Refinance it

• Obtain conventional financing

• Sell to a buyer who needs title insurance

  
  

For that reason, a Quiet Title lawsuit is often the next step for a tax-sale investor. The lawsuit provides interested parties an opportunity to assert any remaining claims and, if successful, results in a judgment establishing ownership in the tax-sale purchaser.

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Planning to Bid on August 24?

This is an area where planning before the auction can be particularly valuable.

At Landlord Legal STL, we can assist investors with:

✔ Reviewing potential properties before bidding

✔ Navigating the post-sale redemption and notice process

✔ Preparing the required notices and affidavits

✔ Obtaining a Collector's Deed

✔ Flat-fee Quiet Title lawsuits

If you're looking at properties for this year's sale, feel free to reply to this email before you bid.

Sometimes the most important due diligence isn't figuring out what a property is worth—it's figuring out what you're actually buying.