How to Buy Abandoned Property in Arkansas?

Are you interested in buying abandoned property in Arkansas?

It can be a great investment opportunity if you know how to do it right.

This article will guide you through buying abandoned property in Arkansas step-by-step.

Understanding Abandoned Property in Arkansas

Before we dive into buying abandoned property in Arkansas, it’s essential to understand what qualifies as abandoned property.

In Arkansas, a property is considered abandoned if the owner has not paid property taxes for at least two years.

The county will then hold a tax sale, where investors can bid on the property. If no one bids, the property becomes available for purchase.

Finding Abandoned Property in Arkansas

The first step in buying abandoned property in Arkansas is finding it. There are several ways to do this:

Check the county tax sale list: The county tax collector will publish a list of properties sold at the tax sale. You can find this list on the county’s website or by visiting the tax collector’s office.
Drive around: Drive around the neighborhoods you’re interested in and look for vacant or abandoned properties. Check for overgrown lawns, boarded-up windows, and other signs of neglect.

Online databases: Several online databases list abandoned properties in Arkansas. Some of these databases are free, while others require a subscription.

Researching the Property

Once you’ve found a property you’re interested in, it’s time to research. You’ll want to learn as much as possible about the property before making an offer. Here are some things to look for:

Property liens: Check to see if there are any liens on the property. If there are, you’ll need to pay them off before you can take ownership of the property.

Property condition: Inspect the property to determine its condition. Look for structural damage, mold, and other issues that could be costly.
Market value: Find out the fair market value of the property. You can do this by looking at comparable properties in the area or by hiring an appraiser.

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Contacting the Owner

Once you’ve researched and are ready to make an offer, you must contact the owner. This can be tricky with abandoned properties since the owner may be brutal to track down. Here are some tips for finding the owner:

Check public records: Look up the property in public records to find the owner’s name and contact information.
Talk to neighbors: If you’re having trouble finding the owner, talk to the neighbors. They may have information about the owner’s whereabouts.

Hire a skip tracer: If all else fails, you can hire a skip tracer to help locate the owner.

Negotiating the Purchase Price

Once you’ve contacted the owner, it’s time to negotiate the purchase price. Remember that the owner may be eager to sell since the property has been abandoned. Here are some tips for dealing:

Start with a low offer: Offer less than you’re willing to pay to leave room for negotiation.

Be prepared to walk away: If the owner isn’t willing to negotiate, be prepared to walk away.
Consider the cost of repairs: Factor in the price of repairs when making your offer.

Inspecting the Property

Before closing the deal, it’s essential to have the property inspected. This will help you identify any issues that must be addressed before you take ownership of the property.

Closing the Deal

Once you’ve inspected the property and are satisfied with its condition, closing the deal is time.

You’ll need to sign a purchase agreement and pay the purchase price. You may also need to pay closing costs.

Renovating the Property

After you’ve closed the deal, it’s time to renovate the property.

This can be a big job, depending on the property’s condition. You may need to hire contractors to help with the renovations.

Can you claim an abandoned house in Arkansas?

You may claim ownership of abandoned property in Arkansas through adverse possession.

Here are the basic requirements for adverse possession in Arkansas:

Open and notorious possession: You must possess the property openly and clearly.

This means living in the house, making improvements, paying taxes, maintaining the property, etc.

Secretly occupying the property will not qualify.

Continuous possession: You must possess the property continuously for the required period. Leaving the property vacant for extended periods may interrupt your adverse possession claim.

Hostile or under a claim of right: You must possess the property with the intent to own it as the rightful owner. Simply using the property does not qualify.

Exclusive possession: You must possess the property exclusively without permission from the legal owner.

For at least seven years: In Arkansas, you must possess the property openly, continuously, and exclusively for at least seven years to claim adverse possession.

So, in summary, to claim an abandoned house in Arkansas through adverse possession, you’ll need to:

• Live in or visibly maintain the property continuously for at least seven years
• Possess the property as the rightful owner without permission from the legal owner
• Maintain relevant records to support your adverse possession claim, like utility bills, tax receipts, etc.

Claiming adverse possession of a property can be a lengthy and complex legal process. Seeking advice from a real estate lawyer familiar with adverse possession in Arkansas is recommended before pursuing this option.

Is there an abandonment law in Arkansas?

Yes, Arkansas has an abandonment law. In general, the law states that property is considered abandoned if:

The owner has relinquished all rights to and control of the property.
The owner has no intention of reclaiming the property.
For real property (land and buildings), like an abandoned house, Arkansas law requires a minimum amount of time before the property is considered formally abandoned:

• five years of continuous non-use
• Non-payment of property taxes for at least five years
• Lack of maintenance of the property for at least five years

If these conditions are met, and the property goes officially unclaimed for five years or more, the property is likely considered legally abandoned in Arkansas.

Local governments may then take action to repossess or sell the abandoned property.

Even if a property appears abandoned for under five years, a diligent person could claim ownership through adverse possession – as outlined in my previous response.

But in general, Arkansas law considers real property abandoned after five or more years of clear non-use and neglect.

The abandonment law ensures that abandoned properties are returned to productive use, property taxes are paid, and safety and environmental hazards are addressed.

Local authorities rely on this law to deal with problematic abandoned properties.

So, in short, yes – Arkansas has an abandonment law stating that real property is considered abandoned after at least five years of continuous non-use and neglect by the owner.

This law provides a legal basis for repossessing and repurposing truly abandoned properties.

What is abandoned property? Property is considered abandoned when:

• The owner has relinquished all rights to and control of the property
• The owner does not intend to reclaim the property or exercise control over it
• The property has been left or deposited on public or private property without the intent to retain control over it

Tangible and intangible property can be abandoned. This includes:

• Real property like land and buildings
• Physical objects like furniture, vehicles, clothing, etc.
• Financial assets like bank accounts, stocks, bonds, or uncashed checks

The state takes custody of abandoned property through the Arkansas Treasurer’s Unclaimed Property Division. This includes property found within the state and owned by Arkansas residents but left elsewhere.

Owners have a right to reclaim abandoned property indefinitely. The Treasurer’s Office keeps records of abandoned property for at least five years and attempts to locate the owners.

After a legally defined dormancy period, unclaimed property is transferred to the state. The dormancy period varies from 3 to 15 years, depending on the property type.

Through education programs, the state uses abandoned property funds to benefit the general public.

Property like land and buildings is considered abandoned after five years of non-use and tax delinquency. At that point, the government may repossess or sell the property.

FAQs

What is considered abandoned property in Arkansas?

In Arkansas, a property is considered abandoned if the owner has not paid property taxes for at least two years.

How do I find abandoned property in Arkansas?

You can find abandoned property in Arkansas by checking the county tax sale list, driving around neighborhoods, or using online databases.

How do I research abandoned property in Arkansas?

Research abandoned property in Arkansas by checking for property liens, inspecting the property, and determining its fair market value.

How do I contact the owner of the abandoned property in Arkansas?

You can contact the owner of abandoned property in Arkansas by checking public records, talking to neighbors, or hiring a skip tracer.

What should I consider when negotiating the purchase price of abandoned property in Arkansas?

When negotiating the purchase price of abandoned property in Arkansas, consider starting with a low offer, factoring in the cost of repairs, and being prepared to walk away if the owner isn’t willing to negotiate.