Tennessee § 67-5-2501 - Sale of land generally.

§ 67-5-2501. Sale of land generally.

The court shall order a sale of the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted electronically in lieu of public outcry. At all sales, the clerk of the court, acting for a tax entity or entities prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale. Up to ten percent (10%) of the sale proceeds shall be applied first to payment of any unpaid balance of compensation due the prosecuting attorney. Second, the proceeds of the sale shall be applied to the costs of the suits. Third, the remainder shall be applied to the state first, county second, and municipality third, the amount due each to be ascertained by a decree of the court. This subsection (a) does not apply to counties with a metropolitan form of government or to counties having the following populations according to the 1970 federal census or any subsequent federal census: not less than nor more than 3,765 5,200 6,600 6,700 8,100 8,200 12,300 12,350 12,400 12,550 14,700 14,800 36,900 37,100 56,200 56,300 The court shall order a sale of the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted electronically in lieu of public outcry. At all sales, the clerk of the court, acting for a tax entity or entities prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale. The proceeds from such sale shall be applied first to the payment of the ten percent (10%) penalty allowed as compensation for prosecuting the suits, second to the costs, and third the remainder shall be applied to the state first, county second, and the municipality third, the amount due each to be ascertained by a decree of the court. This subsection (b) applies only to counties with a metropolitan form of government and to counties having the following populations according to the 1970 federal census or any subsequent federal census: not less than nor more than 3,765 5,200 6,600 6,700 8,100 8,200 12,300 12,350 12,400 12,550 14,700 14,800 36,900 37,100 56,200 56,300 Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale. The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold. The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by § 67-5-2502, the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record. The report or notice shall be for notice purposes only and shall not be evidence of transfer of title. Failure to timely record the report or notice shall not provide grounds to set the sale aside. The document shall be exempt from recording fees pursuant to § 8-21-1001, and shall be indexed by the register under the name of the last owner of record. Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1996, ch. 787, § 7; 2013, ch. 353, § 19; 2015, ch. 524, § 1; 2016, ch. 1085, § 1; 2017, ch. 299, §§ 7, 8. Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement. Acts 2015, ch. 524, § 3 provided that the act, which added (c), shall apply to any sale occurring on or after January 1, 2016. Cross-References. Collection by garnishment, § 67-5-2004 . Collection by sale of personalty, § 67-5-2003 . Enforcement of property tax liens, title 67, ch. 5, part 24. Tax sale for delinquent municipal real property taxes, § 67-5-2005 . Textbooks. Tennessee Jurisprudence, 6 Tenn. Juris., Clerks of Court, § 9; 23 Tenn. Juris., Taxation, §§ 57, 62. Law Reviews. Constitutional Law — Due Process — Notice by Publication in Tax Sales Cases (R. Dale Grimes), 44 Tenn. L. Rev. 159 (1976). Attorney General Opinions. Whether fees collected for the prosecution of delinquent tax suits may be used for purposes other than payment of the prosecuting attorney depends upon the type of governance and population of the county attempting to collect delinquent taxes, OAG 07-034 (3/23/07). Court clerk's application of delinquent tax sale proceeds to pay taxes for subsequent years. OAG 12-85, 2012 Tenn. AG LEXIS 86 (9/10/12). The county, as the purchaser at the tax sale, is liable for any damage to the property occurring during the one-year redemption period, provided the right of redemption is not exercised during that time period. OAG 15-40, 2015 Tenn. AG LEXIS 41 (4/23/15).