A new law went into effect on July 1, 2024, which will change how Treasurer’s Deeds are issued.
The request for application for this process may only be requested from August 1st to December 15th, within 3-15 years after the purchase of a tax lien certificate, an investor, “lawful holder,” can request that the property be sold at public auction. Going forward, deeds will not automatically be issued to the lien holder, instead the option for Treasurer’s Deed will be sold to the highest bidder. The application form will be furnished by the Treasurer’s Office.
This public auction will provide an opportunity for the property to be sold at fair market value with overbid funds going to the property owner, bringing Colorado into compliance with the Tyler v. Hennepin County decision.
The Treasurer’s Office will actively work to notify the property owner and other known interested parties of the potential sale.
At any time prior to the property being sold at the public auction, the property owner retains the right to redeem the tax lien certificate, paying back taxes, interest, fees, and costs.
The initial bid for the public auction will be set by the Treasurer at the redemption amount for the lien, plus actual fees and costs associated with the public auction by the Treasurer’s Office.
If there are no bids at the public auction the Treasurer’s Deed will be issued to the lawful holder who requested the public auction. In that case, the fair market value of the property will have to be determined to be the amount of the lien, plus the Treasurer’s fees.
If there is a bid at the public auction the lien holder can either:
- Redeem the property from the successful bidder and receive the Treasurer’s Deed, or
- Be reimbursed the redemption amount plus the fees and expenses of the Treasurer’s Office which were paid by the tax lien certificate holder prior to the sale.
Considering increases in postage fees and other expenses, we are increasing our application deposit for the real estate treasurer’s deed process to $1,000. Please feel free to contact our office with any questions. We will do our best to assist you as we implement this new process in Fremont County.
