The registration deadline is 1 week before the sale. For third-party purchasers who do not meet the Department of Revenue's $250.00 requirement, there is a $10.00 registration fee per tax bill if:
Beginning in mid-July, county clerks in Kentucky offer the certificates of delinquency for sale to third-party purchasers. The certificates represent a lien against the property in question. Details about each county's sale and the listings of each certificate of delinquency will be advertised in the local newspaper at least 30 days before the tax sale date. The certificates of delinquency are also listed on the county clerk's website at least 30 days before the sale.
Third-party purchasers who meet any of the following conditions must register with the Department of Revenue:
When a certificate of delinquency is sold to a third-party purchaser, the third-party purchaser must then work with the owner to arrange for payment of the delinquency. Additional fees will be applied to the total due by the third-party purchaser.
When a third party has purchased a certificate of delinquency for a particular property in a prior year, that third party will have priority to acquire the current year's certificate of delinquency for the same property. A list of all certificates of delinquency upon which you have a priority needs to be compiled and submitted. A deposit of 100% of the value of the priority certificate is required during registration for the sale.
A separate list of certificates of delinquency for which a third party has no priority claim must also be prepared and submitted to the county clerk with the registration form. A deposit of 25% of the value of the certificate is required during registration for the sale.
The certificate accrues simple interest at the rate of 1% per month. Within 50 days after receiving delivery of a certificate of delinquency from the county clerk, the third-party purchaser must send a notice of the purchase to the delinquent taxpayer. Upon receipt of a written request from a delinquent taxpayer, a third-party purchaser must offer an installment payment plan. The third-party purchaser is entitled to a monthly processing fee up to a certain amount per month to offset the administrative cost of providing a payment plan.
No enforcement collection actions can be taken until it has been at least one year since the certificate in question became delinquent. After the expiration of the one year, a third-party purchaser has 10 years to initiate a foreclosure action. At least 45 days before starting a legal action, the third-party purchaser must send a notice to the taxpayer by first-class mail informing them of the impending action.
Bidders are strongly encouraged to exercise due diligence in the delinquent tax sale process and to obtain the advice of legal counsel before purchasing certificates of delinquency in a county tax sale.