[HISTORY: Adopted by the Town Council of the Town of Standish 9-11-1990
as Order No. 103-90. Amendments noted where applicable.]
This chapter shall be known as and may be cited as the "Policy for Tax-Acquired
Property for the Town of Standish, Maine" and shall be referred to herein
as "this chapter."
The purpose of this chapter is to establish a policy procedure whereby
real estate property acquired in accordance with M.R.S.A. §§ 942
and 943, as amended, shall be managed, administered and disposed of by the
Town of Standish. This is a policy and not an ordinance.
For the purposes of this chapter, the following definitions shall be
observed in the construction of this chapter:
A tax lien mortgage that has automatically foreclosed pursuant to
36 M.R.S.A. §§ 942 and 943.
The amount of taxes that would have been assessed to the property
had it not been owned by the municipality on April 1 of the year in which
it is sold by the municipality. (NOTE: The purpose of this definition is to
recover for the municipality those taxes which would have been assessed to
the municipality if it had been privately owned on April 1 in the year in
which it is sold. These taxes would be lost under current law if the municipality
sells tax-acquired property after April 1.)
That portion of the physical surface of the earth either natural
or modified by man to a permanent or semipermanent site and all natural or
man-made resources therein and thereon. For the purposes of this chapter,
"land" shall be commonly referred to as "real estate property," as cited below.
Regular, first-class mail posted at any United States Post Office,
postage prepaid.
Any structure, building or dwelling, the same being constructed or
fabricated elsewhere and transported, in whole or in part, to and placed,
set or installed permanently or temporarily upon land within the municipality.
For the purpose of this chapter, "manufactured real estate property" shall
be commonly referred to as "real estate property," as cited below.
The Town of Standish, Maine.
The Town Council of the Town of Standish, Maine.
The person or persons, entity or entities, heirs or assigns to whom
the property was most recently assessed for municipal taxes.
A signed, legal instrument releasing the municipality's right,
title or interest in real estate property, acquired by virtue of foreclosed
tax liens, to an individual or individuals, entity or entities, without providing
a guaranty or warranty of title to the same.
All land or lands and all structures, buildings, dwellings, tenements
and hereditaments, including manufactured real estate property, located or
relocated upon any land or lands connected therewith and all rights thereto
and interests therein.
That real estate property tax acquired by the municipality by virtue
of a foreclosed tax lien as cited above.
The statutory lien created by 36 M.R.S.A. § 552.
[Amended 1-14-1992 by Order No. 20-92]
Following statutory foreclosure of a tax lien mortgage, title to the
real estate property automatically passes to the municipality. The management
of this property rests exclusively with the municipal officers, subject to
the provisions of state statutes and local municipal ordinances and regulations.
The Treasurer shall annually provide the municipal officers with an inventory
of all tax-acquired property within 45 days of the date of foreclosure of
tax liens. The inventory shall include all tax-acquired property from prior
years in which the municipality continues to retain an interest, as well as
all other real estate owned by the municipality even though not tax-acquired.
The purpose of the inventory is to advise the municipal officers of that real
estate in which the municipality has an interest.
A.
The municipal officers shall obtain fire loss insurance
for tax-acquired property in a dollar value not less than all outstanding
taxes, liens, costs and other attendant expenses.
B.
The municipal officers shall determine when and if any
occupants of tax-acquired property shall vacate the same.
C.
The municipal officers shall by April 30, annually, determine
whether a tax-acquired property is to be retained for municipal use, retained
as tax-acquired property, or disposed of in accordance with provisions of
this chapter. The municipal officers shall determine which lots, if any, shall
be appraised prior to sale.
D.
The municipal officers may pursue an action for equitable
relief in accordance with the provisions of 36 M.R.S.A. § 946, as
amended, as a means of securing a clear title to any tax-acquired property,
whether it is to be sold or retained.
E.
The municipal officers may charge a monthly rental fee
to any and all occupants of tax-acquired property. Should a rental fee be
charged, the municipal officers shall obtain general liability insurance coverage
for the rented tax-acquired property.
F.
The municipal officers shall, in the event that the property
is vacated for 60 consecutive days, obtain general liability insurance coverage
for the tax-acquired property.
Should the municipal officers determine that title to tax-acquired property
be relinquished rather than retained by the municipality, the following shall
be observed:
A.
For a thirty-day period following the date of foreclosure,
the Treasurer may accept payment from the prior owner for all past due taxes,
accrued interest and costs associated with the tax lien foreclosure process
if offered by the prior owner. Following acceptance of payment, the municipality
shall deliver a municipal quitclaim deed to the prior owner releasing the
municipalities interest in the property.
B.
The municipal officers shall solicit public bids for
the sale of the tax-acquired property and shall receive, open and read aloud
submitted bids on the first day of August following foreclosure of the tax
lien, which is not a Saturday, Sunday or holiday.
C.
The municipal officers shall send notice of the impending
sale, via mail only, to any and all prior owners of said property. Such notification
shall be made at least 45 days prior to the scheduled sale. Said prior owner
may redeem the property within the 30 days immediately following notification,
with full payment of all outstanding taxes, including a just value for the
current year not assessed, liens, interest and all costs, including but not
limited to notice and insurance costs.
D.
The municipal officers shall cause a public notice of
an impending public sale of tax-acquired property to be posted within the
Town Office and to be advertised for two successive weeks in those newspapers
generally used by the Town for legal advertisements. The last notice shall
be published at least seven days prior to the advertised sale date.
E.
The municipal officers shall require the following for
proper submission:
(1)
A bid sheet containing a full description of the property
being bid upon, and the bid price in United States currency.
(2)
A certified cashier's check or postal money order,
in an amount not less than 10% of the bid price, to be included as a deposit
on the bid. Failure to submit a deposit shall cause the bid to be automatically
rejected.
F.
The municipal officers shall require that those bid items cited in Subsection E(1) and (2) be sealed in a single plain envelope marked only "Tax-Acquired Property Bid" on the exterior and either be hand delivered to the municipality or, if mailed, enclosed within a second envelope addressed to the Town Manager, Town of Standish, Maine 04084. All bids must be received by the municipality no later than 10:00 a.m. daylight saving time on the date that bids shall be opened and read.
G.
The municipal officers generally will not accept any
bid for a dollar amount less than the total outstanding taxes, including a
just value for current year taxes not assessed, liens, interest and all costs,
including but not limited to public notice fees and insurance costs, appraisal
fees, and fees as a result of clear-title action.
[Amended 1-14-1992 by Order No. 20-92]
H.
The municipal officers shall retain the right to accept
or reject any and all bids submitted and shall cause the same disclaimer to
be noted in any public notice soliciting bids in accordance with this chapter.
Should the municipal officers reject all bids, the property may be offered
again for public sale without notice to any prior owner or owners and without
first having offered it to any prior owner.
I.
The municipal officers shall notify, via mail, any successful
bidder.
J.
The municipal officers shall, as a credit to payment,
retain the submitted bid price deposit of any successful bidder and shall
return all other submitted deposits within 10 days of the bid opening.
K.
The municipal officers shall require payment in full from any successful bidder within 30 calendar days following the date when bids are opened and read. (See Subsection L for exception.) Should the bidder fail to pay the full balance, the municipality shall retain the bid price deposit and title to the property.
L.
The municipal officers may, subject to a show of good
faith on the part of the bidder, extend the time limit a one-time-only additional
20 days in which full payment must be received.
M.
The municipal officers shall issue only a quitclaim deed
to convey title to tax-acquired property.
N.
The successful bidder shall be responsible for the removal
of any and all occupants of purchased tax-acquired property and shall, in
writing, forever indemnify and save harmless the municipality from any and
all claims arising out of the sale of the tax-acquired property brought by
the occupants of the purchased property, their heirs or assigns.
O.
In those cases where the municipality has taken possession
of the real estate, and personal property of someone other than the municipality
remains on the real estate, the municipality shall comply with Maine law with
respect to the disposition of abandoned personal property. In those cases
where the municipality has not taken possession of the real estate, the successful
bidder shall be responsible for complying with Maine law with respect to the
disposition of abandoned personal property and shall indemnify and hold harmless
the municipality from any and all claims which may be made against the municipality
with respect to such personal property.
[Added 1-14-1992 by Order No. 20-92]
P.
P. Bids may not be withdrawn at any time after submission.
[Added 9-8-1992 by Ord. No. 135-92]
This is a policy and not an ordinance which is intended as a guideline with regard to tax-acquired property. The municipal officers may vote to take action different from the guidelines set forth in this chapter if, in their judgment, it is in the best interest of the Town of Standish. The provisions set forth in § 70-5C shall not apply to tax-acquired property which was foreclosed on for nonpayment of taxes assessed for the 1988 tax year or earlier.
