USA Foreclosure Wiki

Arkansas

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Arkansas — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-10.

Arkansas is a state-centralized tax-deed jurisdiction and is structurally unusual: county collectors do not run the tax sale. Instead, after one year of delinquency the county certifies the parcel to the State, title vests in the State of Arkansas in care of the Commissioner of State Lands (COSL), and COSL — not the county — later sells the parcel at a public tax-delinquent-property auction (Ark. Code § 26-37-101). The buyer receives a limited warranty deed, not a lien certificate. The owner’s right of redemption runs from certification up until 4 p.m. on the last business day before the sale — a major change effective mid-2023 that eliminated the old 10-business-day post-sale redemption window. Surplus (“excess proceeds”) above taxes/penalties/interest/costs belongs to the former owner, which puts Arkansas largely in line with tyler-v-hennepin-county, though its 2-year escheat-to-county of unclaimed excess proceeds is a residual equity-forfeiture concern. Third-party overage-recovery agents are expressly permitted but capped at a 10% fee by COSL rule.

0. Identity & Classification

1. Tax Sale Mechanics

2. Right of Redemption → see right-of-redemption

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

▸ For Investors / Operators — A COSL tax-delinquent-land auction conveys a limited warranty deed, and any sale above the tax debt generates excess proceeds that flow through the § 26-37-205 waterfall (COSL costs → county taxes → other governmental claims → the 10%/$500 COSL administration cut → former owner). Before committing capital, weigh the redemption risk (§2/2b — the owner or any person may redeem up to 4 p.m. the last business day before sale, with no post-sale window since the 2023 reform), the path to marketable/insurable title (§5b — a quiet-title/confirmation decree in circuit court, the 90-day deed-challenge window under § 26-37-203, or the 15-year § 18-12-609 marketability bar), and which liens survive (§7b — municipal/improvement-district liens “most likely not extinguishable,” CERCLA superliens, and the IRS § 7425 120-day redemption).

▸ For Former Owners — When an Arkansas tax sale produces more than the taxes, penalties, interest, and costs, the residual excess proceeds belong to the former owner of record on the date of sale (§ 26-37-205). The claim is filed by an affirmative application with the Commissioner of State Lands (claim packet at cosl.org), not a court; a third-party recovery agent’s fee is capped at 10% by COSL rule. Unclaimed proceeds escheat to the county after 2 years (parcels sold on/after July 1, 2018), after which they are not recoverable.

4. Mortgage Foreclosure

  • Process: both, but non-judicial power-of-sale under the Statutory Foreclosure Act of 1987 (Ark. Code § 18-50-101 et seq.) is standard; judicial foreclosure also available. — https://law.justia.com/codes/arkansas/title-18/subtitle-4/chapter-50/section-18-50-104/
  • Timeline: a pre-foreclosure information packet must be sent at least 10 days before initiating foreclosure (§ 18-50-103); the notice of default and intention to sell is recorded, mailed to the mortgagor within 30 days of recording by certified + first-class mail, and published once a week for 4 consecutive weeks before sale; sale generally no sooner than ~60 days after recording the notice. — Ark. Code §§ 18-50-103, 18-50-104, 18-50-105 — https://thewilsonlawfirm.com/arkansas-statutory-foreclosures-an-abundance-of-notice/
  • Reinstatement right: the mortgagor (or their successors in interest) may cure/reinstate the mortgage at any time after the notice of default and intention to sell is filed for record and before the sale by paying the entire amount then due (arrearages, principal not yet matured, costs, and reasonable trustee/attorney fees actually incurred). Upon timely reinstatement all pending foreclosure proceedings are dismissed and the loan is restored as if no acceleration had occurred; the mortgagee must file a duly acknowledged cancellation of the notice of default. — Ark. Code § 18-50-114 — https://law.onecle.com/arkansas/title-18/18-50-114.html
  • Redemption after sale: None following a non-judicial statutory foreclosure — Arkansas provides no post-sale statutory redemption after a power-of-sale foreclosure (§ 18-50-108, § 18-50-116). In a judicial mortgage foreclosure the mortgagor (or their heirs or legal representatives) has a right to redeem within one (1) year from the date of sale by paying the amount for which the property was sold plus interest at the decree rate plus foreclosure/sale costs; this right may be waived in the mortgage or deed of trust. — Ark. Code § 18-49-106 — https://law.onecle.com/arkansas/title-18/18-49-106.html
  • Deficiency judgment: allowed, but capped — the deficiency may not exceed the lesser of (a) total indebtedness (with post-sale interest, costs, trustee/attorney fees) minus the fair market value of the property, or (b) total indebtedness minus the sale price. Suit must be brought within 12 months of the non-judicial sale; plaintiff bears the burden of proving debt, sale price, and FMV. — Ark. Code § 18-50-112 — https://law.justia.com/codes/arkansas/title-18/subtitle-4/chapter-50/section-18-50-112/
  • Surplus distribution (mortgage): proceeds of the foreclosure sale are applied to costs of sale, then the secured debt, then junior lienholders by priority, then the borrower. — Ark. Code § 18-50-109 — https://law.justia.com/codes/arkansas/title-18/subtitle-4/chapter-50/section-18-50-104/
  • Sale officer: trustee or attorney-in-fact / mortgagee conducting the power-of-sale auction (not a sheriff, in the non-judicial path). — Ark. Code § 18-50-104, § 18-50-106 — https://thewilsonlawfirm.com/arkansas-statutory-foreclosures-an-abundance-of-notice/

5. Sale Procedure Playbooks

6. Due Process & Notice → see due-process-notice

7. Title & Marketability

  • Deed warranty level: limited warranty deed — conveys only the rights, title, and interest the State acquired through tax forfeiture; COSL does not insure or warrant clear/marketable title. — https://cosl.org/Home/Buyers
  • Marketable immediately? No. Title is not marketable on issuance. — § 18-12-609; https://cosl.org/Home/Buyers
  • Quiet title required? Practically yes — in most cases the purchaser must file a quiet-title / confirmation action to obtain marketable, insurable fee simple. — Ark. Code § 18-12-609(b); https://cosl.org/Home/Buyers
  • SOL to challenge deed / ripening: an action contesting the deed’s validity must be filed within 90 days of conveyance (§ 26-37-203, Act 1231 of 2013). Independently, title becomes marketable after 15 years if the tax deed has been of record 15+ years, taxes paid throughout, no adverse-possession claim filed, and the underlying taxes were genuinely unpaid (§ 18-12-609); a judicial quiet-title can establish marketability sooner and cuts off further redemption/challenge. — https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-12/subchapter-6/section-18-12-609/
  • Title insurance availability: generally unavailable until a quiet-title decree (or the 15-year period) cures the limited warranty deed. needs_verification for underwriter specifics.
  • Common defects: defective/insufficient statutory notice (wrong parcel number; certified mail returned unclaimed without follow-up — voids the sale); unresolved redemption-disability tolling; lurking junior interests not given § 26-37-301 notice.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
jones-v-flowers (547 U.S. 220; AR predecessor 352 Ark. 39, 98 S.W.3d 405)2006due_process, sale_procedureWhen the State’s certified-mail notice of a tax sale is returned “unclaimed,” due process requires the State to take additional reasonable steps (e.g., regular mail, posting) to notify the owner before selling, if practicable. The U.S. Supreme Court reversed the Arkansas Supreme Court; the COSL sale of Jones’s home violated due process.https://supreme.justia.com/cases/federal/us/547/220/
tsann-kuen-v-campbell (355 Ark. 110, 129 S.W.3d 822)2003due_process, redemptionArk. Code § 26-37-301’s notice scheme satisfies due process for nonresident owners; reinforces that strict compliance with the statutory notice is required before an owner is deprived of property.https://arkleg.state.ar.us/Home/FTPDocument?path=/Assembly/Meeting+Attachments/040/26045/D.1.a.+COSL+Rules+and+Relevant+Acts.pdf (citation search-verified; opinion text not directly retrieved)
pulaski-choice-v-villa-creek-2010 (2010 Ark. 91, 362 S.W.3d 882)2010sale_procedure, due_processStatutory publication notice of a tax-delinquent-land sale requires strict compliance; a published notice with an incorrect parcel number fails § 26-37-201(b)(3) and renders the tax sale and deed void.https://case-law.vlex.com/vid/pulaski-choice-l-l-888971887
payton-v-blake (362 Ark. 538, 210 S.W.3d 74)2005sale_procedure, redemptionAddressed the adequacy of the property description / parcel identification in tax-sale notice; an abbreviated legal description may suffice in some circumstances — later distinguished in Pulaski Choice where the parcel number itself was wrong.https://case-law.vlex.com/vid/pulaski-choice-l-l-888971887 (citation confirmed via Pulaski Choice; opinion text not directly retrieved)
tyler-v-hennepin-county (598 U.S. 631)2023surplus, due_processRetaining tax-sale surplus beyond the tax debt is an unconstitutional taking. Arkansas’s § 26-37-205 returns excess proceeds to the former owner (largely compliant), but its 2-year escheat-to-county of unclaimed surplus is the residual tension.https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf

Adversarial-verification note on the reporter citations: Jones v. Flowers (547 U.S. 220, 2006) and its AR predecessor (98 S.W.3d 405) are confirmed via the U.S. Supreme Court / Justia record (directly relevant Arkansas tax-sale case). Pulaski Choice (2010 Ark. 91, 362 S.W.3d 882) and the Payton v. Blake citation (362 Ark. 538, 210 S.W.3d 74) are confirmed via the vLex case record for Pulaski Choice. Tsann Kuen (355 Ark. 110, 129 S.W.3d 822, 2003) citation is search-verified but its opinion text was not directly fetched — flagged in needs_verification rather than asserted as fully self-verified. Statutory holdings are backed by the directly-retrieved COSL Rules & Relevant Acts PDF (HB1263/2023 amendatory text) and Justia code pages.

9. Edge Cases (state-specific notes)

10. Operations

  • Where records live: Commissioner of State Lands (certification lists, auction catalogs, redemption petitions, excess-proceeds claims, deeds); county circuit clerk (recorded redemption/limited-warranty deeds, quiet-title decrees); county collector (pre-certification delinquency); DFA (certificates of indebtedness).
  • Public portals: COSL main site https://cosl.org/ ; buyers/auction info https://cosl.org/Home/Buyers ; online post-auction bidding auction.cosl.org ; excess-proceeds search https://cosl.org/Home/Excess/ and https://portal.arkansas.gov/service/search-excess-proceeds/ ; COSL Rules & Relevant Acts (PDF) https://arkleg.state.ar.us/Home/FTPDocument?path=/Assembly/Meeting+Attachments/040/26045/D.1.a.+COSL+Rules+and+Relevant+Acts.pdf ; 26 CAR Part 400 rules https://codeofarrules.arkansas.gov/ .
  • Typical costs & timelines: redemption = taxes + 10%/yr interest + 10%/yr penalty + costs; parcel cannot be sold until 1 yr after certification; redemption closes 4 p.m. last business day before sale; deed-challenge SOL 90 days; marketable title by quiet-title or 15 years (§ 18-12-609); excess proceeds claimable for 2 years (post-7/1/2018) before escheat to county.
  • Key agencies: Commissioner of State Lands; county collector; county circuit clerk; Department of Finance and Administration; (mortgage) trustees/foreclosure counsel.
  • Useful forms: COSL petition to redeem (paper or online at cosl.org); COSL excess-proceeds claim packet (claim form, deed of release, releases & indemnification, W-9, vesting deed, proof of mail, IDs); third-party agent contract (≤10% fee) + third-party release.

2b. Redemption Advanced

Assignability of the Statutory Redemption Right

  • Assignable: Yes, with restrictions. Any “person, firm, corporation, or partnership” — including a complete stranger to the title — may pay the redemption amount on a parcel certified to COSL. However, payment by a non-owner does not convey title to the payer; COSL issues the redemption deed in the name of the owner and merely a redemption receipt to the payer. The practical effect is that the redemption right is not assignable in the sense of transferring the right to take title; rather, the monetary obligation can be satisfied by a third party who then holds whatever reimbursement claim they may negotiate with the owner. — Ark. Code § 26-37-310(f); COSL Rules 2021 (26 CAR § 400 et seq.) — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Formal assignment mechanism: No statute in Ch. 37 or the COSL Rules expressly authorizes the owner to execute a formal “deed of assignment” of the statutory redemption right to a third party who would then redeem in their own name and take title. The dominant statutory model is that the owner (or a third-party payer on the owner’s behalf) redeems and the deed always runs to the owner of record. needs_verification — No Arkansas appellate case addressing a formal inter-vivos assignment of the Ch. 37 redemption right was located.
  • Restrictions: A person whose home of record is outside the United States is prohibited from purchasing (§ 26-37-202(a) as amended 2021); by extension they cannot redeem as a substitute-owner mechanism. The former owner or interested party who bought at the COSL auction may not obtain a redemption deed after buying (§ 26-37-310(f) phrasing). — Ark. Code § 26-37-202(a) — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001

Equitable Redemption

  • Distinct from statutory: Yes. “Equitable redemption” is the universal common-law right allowing a debtor/owner to pay off a debt secured by real property before a foreclosure sale is completed. This pre-sale right is separate from any statutory post-sale redemption window. In the Arkansas tax context, the pre-sale redemption right under § 26-37-310 / § 26-37-302 effectively operates as the exclusive redemption mechanism because there is no post-sale statutory redemption (eliminated by the 2023 amendments). — Ark. Code § 26-37-202(e); § 26-37-310 — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Available pre-sale only: Yes — for COSL tax sales, redemption must be received before 4 p.m. CT on the last business day before the auction date. Once the parcel sells there is no post-sale equitable or statutory redemption right in the tax-sale context. — Ark. Code § 26-37-202(e); 26 CAR § 400-108 — https://codeofarrules.arkansas.gov/Rules/Rule?levelType=section&titleID=26&chapterID=223&subChapterID=272&partID=1001&subPartID=5832&sectionID=38052
  • Mortgage context: In the mortgage foreclosure context, equitable redemption (pre-sale cure/reinstatement under § 18-50-114) exists up to the sale date for non-judicial paths; in judicial foreclosures equitable redemption similarly closes at the sale. Post-sale statutory redemption exists only in judicial foreclosures under Ark. Code § 18-49-106 — the mortgagor (or heirs/legal representatives) may redeem within one (1) year from the date of sale by paying the sale price plus interest at the decree rate plus foreclosure/sale costs; this right may be waived in the mortgage or deed of trust itself. No post-sale redemption follows a non-judicial power-of-sale foreclosure (§ 18-50-108, § 18-50-116). — Ark. Code § 18-49-106; § 18-50-114; § 18-50-108 — https://law.onecle.com/arkansas/title-18/18-49-106.html; https://law.onecle.com/arkansas/title-18/18-50-114.html

Installment Redemption

  • Permitted: No. Redemption under § 26-37-302 and 26 CAR § 400-108 requires payment of the full amount of taxes, penalties, interest, fees, and costs in a single payment. Partial payments and incomplete petitions are rejected and do not extend the period. — Ark. Code § 26-37-302; 26 CAR § 400-108 — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001

Assignment of Tax Certificate / Deed Mid-Period

  • Arkansas is a tax deed state, not a certificate state; there is no privately-held lien certificate that a certificate holder can assign. The State holds title from certification until the COSL auction and deed issuance. The purchaser at the COSL auction receives a limited warranty deed directly (§ 26-37-202(e)). That deed is real property and may be transferred by the purchaser like any other deed; however, any transfer during the 90-day litigation window (§ 26-37-203) or before the quiet-title decree is obtained carries the title defects with it. No statute restricts the purchaser from conveying the deed, but a grantee takes subject to all outstanding defects and the owner’s potential challenge. — Ark. Code § 26-37-202(e); § 26-37-203 — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001

3b. Surplus Advanced

Claim Assignability

  • Full assignment vs. agency/fee agreement: The COSL Rules expressly contemplate third-party agents acting for the former owner (agent contract + third-party release & indemnification required), capped at a 10% fee. The rules speak in terms of an agent authorized to act for and on behalf of the former owner — not an outright assignment of the chose-in-action. needs_verification — No COSL rule or Arkansas statute has been located that expressly authorizes (or prohibits) a full assignment (sale of the claim itself) rather than a fee-for-services agency contract. The practical difference: in a full assignment the assignee becomes the real-party-in-interest and the 10% cap would arguably not apply; but whether COSL will honor a full-assignment claim without the former owner’s signature is unresolved. — COSL Rules Title 4, Subtitle B(2)(d) — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Fee cap applies to agency agreements: Yes — the 10% cap is imposed on the signed agent–owner contract. — COSL Rules Title 4, Subtitle B(2)(d)

Statute of Limitations on Surplus Claims

  • Period: For parcels sold on or after July 1, 2018: 2 years from the date of sale. For parcels sold July 1, 2005 – June 30, 2018: 3 years from the date of sale. After the applicable period, excess proceeds escheat by operation of law to the county in which the parcel is located and “are not subject to recovery by the former Owner or anyone else.” — Ark. Code § 26-37-205(b)(3), (c)–(e); COSL Rules Title 4, Subtitle D — https://arkleg.state.ar.us/Home/FTPDocument?path=/Assembly/Meeting+Attachments/040/26045/D.1.a.+COSL+Rules+and+Relevant+Acts.pdf
  • Trigger date: Date of the COSL auction sale (not the date the deed is recorded or excess proceeds deposited). The 1-year escrow hold before claimants may apply does not extend the 2-year escheat clock; the clock starts from the sale date. — Ark. Code § 26-37-205; COSL Rules Title 4
  • Practical window: After the 1-year escrow, the claimant has approximately 1 year (for post-2018 parcels) to submit a complete claim packet before funds escheat. — COSL Rules Title 4

Competing Claimant Procedure

  • COSL is an administrative claimant resolution body, not a court. The COSL rules require a complete claim packet (deed of release, release & indemnification, W-9, vesting deed, IDs) signed by the former owner (or the estate’s personal representative). If multiple persons claim (e.g., co-owners of record), COSL requires each co-owner’s claim or evidence of authority to act for all co-owners. needs_verification — No COSL rule or Arkansas statute was located specifying a formal interpleader procedure or priority-filing-race rule when two unrelated claimants both submit facially complete packets. COSL likely refers such disputes to circuit court. — COSL Rules Title 4, Subtitle B — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Former-owner-at-sale bought the parcel: A former owner (or their relation/interested party) who purchases at the COSL auction is expressly prohibited from claiming excess proceeds. — Ark. Code § 26-37-205; COSL Rules Title 4

Deceased Owner Procedure

  • Probate typically required first: Because COSL pays excess proceeds to the “former owner” as defined, and a deceased person cannot execute the required releases and indemnification, heirs must establish legal authority. The COSL claim packet for heirs requires: death certificate, probate records establishing the personal representative or evidence of intestate succession, birth certificates, and a notarized affidavit of heirship from a disinterested third party. — COSL Rules Title 4, Subtitle B — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Degrees of kinship restriction: “Former owner” for surplus purposes excludes heirs or relations beyond the first degree of consanguinity (parents, children, siblings). More distant relatives — grandchildren, grandparents, cousins, etc. — are statutorily rejected as claimants. — Ark. Code § 26-37-205; COSL Rules Title 4 — https://arkleg.state.ar.us/Home/FTPDocument?path=/Assembly/Meeting+Attachments/040/26045/D.1.a.+COSL+Rules+and+Relevant+Acts.pdf
  • Personal representative standing: Yes — a court-appointed personal representative of the estate has standing; this is likely the cleaner path when substantial funds are at stake and the estate is not otherwise small enough for affidavit procedure. — COSL Rules Title 4; Arkansas Probate Code (Ark. Code §§ 28-1-101 et seq.)
  • Direct heir claim without probate: Possible for heirs within the first degree using the affidavit of heirship procedure in the COSL claim packet, but COSL reserves the right to require full probate documentation. needs_verification for whether small-estate affidavit under Ark. Code § 28-41-101 satisfies COSL requirements without a full probate proceeding.

Fraudulent Conveyance Exposure

  • Arkansas has adopted the Uniform Voidable Transactions Act (UVTA) at Ark. Code §§ 4-59-201 – 4-59-215 (Act 1086 of 2017, replacing the former UFTA). — https://law.justia.com/codes/arkansas/title-4/subtitle-5/chapter-59/subchapter-2/section-4-59-203/ (search-verified; 403 on direct Justia fetch)
  • Assignment voidable by creditors: If the former owner assigns an excess-proceeds claim for less than reasonably equivalent value while insolvent (or while rendered insolvent by the transfer), a creditor can seek to avoid the assignment under Ark. Code § 4-59-204 (constructive fraud) or § 4-59-205 (actual fraud). The 4-year statute of limitations for UVTA claims runs from the date of the transfer. — Ark. Code § 4-59-209; § 4-59-204 — https://law.justia.com/codes/arkansas/title-4/subtitle-5/chapter-59/subchapter-2/section-4-59-203/
  • Practical note: An agent taking a 10% fee under a disclosed agency contract is unlikely to face UVTA attack because the cap is set by regulation and the owner receives 90% of the proceeds. A full-assignment scenario (owner sells claim for, e.g., 30 cents on the dollar) is far more vulnerable to creditor attack if the owner was insolvent at the time.

Surplus Claimant Notice

  • COSL’s pre-sale notice obligations run to the owner and interested parties (lienholders of record at certification) under § 26-37-301. COSL does not separately notify lienholders of excess proceeds held after the sale; lienholders who want to participate in the surplus waterfall must file with COSL (via DFA certificate of indebtedness or county claim for personal-property taxes) within the 1-year governmental-claim window. — Ark. Code § 26-37-205; COSL Rules Title 4, Subtitle A — https://arkleg.state.ar.us/Home/FTPDocument?path=/Assembly/Meeting+Attachments/040/26045/D.1.a.+COSL+Rules+and+Relevant+Acts.pdf
  • needs_verification — No Arkansas statute or COSL rule located requiring COSL to mail a post-sale surplus-availability notice to the former owner (beyond the pre-sale § 26-37-301 / § 26-37-202(e) notices). The former owner must affirmatively search and apply.

5b. Title Advanced

Quiet Title Action

  • When required: Practically always required to obtain marketable, insurable title before the 15-year period under § 18-12-609 matures. COSL’s limited warranty deed conveys only the State’s acquired interest and does not insure or guarantee clear title. Title insurers in Arkansas will not issue a standard policy on a COSL deed without a quiet-title / confirmation decree. — Ark. Code § 18-12-609; COSL buyer guidance — https://www.cosl.org/Home/Buyers
  • Action type: Judicial. The purchaser files a petition to quiet title (or to confirm the tax sale) in the circuit court of the county in which the land is situated. This is authorized by Ark. Code §§ 18-60-501 et seq. (general quiet-title statute) and referenced by § 26-37-203(b) and § 18-12-609(b) as a judicial remedy that can accelerate marketability. — Ark. Code § 18-60-501 et seq.; § 26-37-203; § 18-12-609(b) — https://law.justia.com/codes/arkansas/title-18/subtitle-5/chapter-60/subchapter-5/section-18-60-503/ (search-verified)
  • Court with jurisdiction: Circuit court (county division) in the county where the property is located. Since the 2001 Arkansas judicial restructuring, circuit courts are courts of general jurisdiction that absorbed the former chancery courts; equity matters (including quiet title) are now in circuit court. — Ark. Const. amend. 80; Ark. Code § 18-60-501 — https://www.dewitt.law/blog/uncategorized/quiet-title-arkansas/
  • Typical timeline: 3–6 months for uncontested actions. The required publication notice runs 4 consecutive weeks (§ 18-60-503); the court then sets a hearing and enters a confirmation/quiet-title decree. Contested or multi-heir cases can extend to 6–12 months or more. — Ark. Code § 18-60-503; practitioner sources — https://www.shamrocklands.com/blog/what-is-a-quiet-title-action-and-when-do-you-need-one-in-arkansas/
  • Typical cost: Attorney fees $1,500–$3,500 plus court costs of approximately $500–$2,000; total $2,000–$5,500 depending on complexity and number of defendants. — practitioner sources (corroborating) — https://www.shamrocklands.com/blog/what-is-a-quiet-title-action-and-when-do-you-need-one-in-arkansas/
  • Cures all pre-sale defects: Substantially yes — a quiet-title / confirmation decree entered by the circuit court eliminates any additional time to redeem or challenge the tax deed and is generally preclusive as to all parties properly served. However, it does not protect against federal claims (IRS lien, CERCLA) not subject to state court jurisdiction, and does not extinguish improvement-district/municipal liens that are “not extinguishable even in the case where proper notice has been given” (COSL buyer guidance). — Ark. Code § 18-12-609(b); § 26-37-203; COSL buyer guidance — https://www.cosl.org/Home/Buyers
  • Citation: Ark. Code §§ 18-60-501 – 18-60-511 (quiet title generally); § 18-12-609 (15-year marketability / judicial confirmation); § 26-37-203 (90-day deed-challenge SOL extinguished by confirmation). — https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-12/subchapter-6/section-18-12-609/ (search-verified)
  • Confirmation decree prerequisite: Under Ark. Code § 18-60-607(a), a confirmation decree will not be issued when (i) the land is in the actual possession of a person claiming adverse title to the petitioner, or (ii) the petitioner fails to show that all taxes on the land have been paid, settled, or released. There is no “2-year wait” requirement in the current statute text; the older secondary-source characterization of a “2-year post-redemption tax payment” period does not match the current code language. Effect of the decree under § 18-60-608: it operates as a complete bar against future claims for informality or illegality, except that infants, persons of unsound mind, or persons imprisoned overseas retain the right to contest within 1 year after their disability is removed, and the decree has no effect against a person in actual possession at the time of the decree who was not personally served. — Ark. Code § 18-60-607; § 18-60-608 — https://law.onecle.com/arkansas/title-18/18-60-607.html; https://law.onecle.com/arkansas/title-18/18-60-608.html

Deed Seasoning

  • Insurers require seasoning: Yes — the dominant underwriter practice in Arkansas is to require a quiet-title decree before issuing a standard ALTA policy on a COSL limited warranty deed. The 15-year statutory marketability period under § 18-12-609 is the outer limit; most investors pursue quiet title rather than wait. — Ark. Code § 18-12-609; COSL buyer guidance — https://www.cosl.org/Home/Buyers
  • Typical seasoning / waiting period if no quiet title: Title insurers will generally not insure until either (a) a quiet-title decree is in place, or (b) 15 years have elapsed with taxes paid and no adverse-possession claim filed. Many underwriters also require the 90-day deed-challenge window (§ 26-37-203) to have expired before they will even begin a commitment. — practitioner sources — https://www.taxtitleservices.com/quiet-title-action-arkansas
  • Rationale: The limited warranty deed conveys only whatever interest the State acquired through forfeiture, making pre-deed defects (defective notice, disability tolling, lurking lienholders) a void-deed risk.

Title Insurance

  • Immediate availability: No — not available without a quiet-title decree (or in unusual cases a title insurer certification service such as Tax Title Services). — https://www.taxtitleservices.com/quiet-title-action-arkansas
  • Conditions for immediate coverage: Some specialty insurers (e.g., Tax Title Services) offer an alternative certification accepted in lieu of a full quiet-title action; acceptance varies by underwriter. needs_verification for which Arkansas-admitted underwriters will write on a COSL deed without a quiet-title decree.
  • After quiet title: Standard ALTA owners and lenders policies available from major title underwriters (e.g., Fidelity, Old Republic, Stewart) upon recording of the circuit court decree.
  • Quitclaim or special warranty only: The COSL deed is styled a “limited warranty deed” but functions similarly to a quitclaim as to title defects originating before the State’s acquisition. Major underwriters treat it as a special warranty deed for underwriting purposes.

Marketable Title Act

  • Exists: Arkansas has § 18-12-609 (enacted as Act 2270 of 2005), which is a tax-sale-specific 15-year marketability provision rather than a general Marketable Title Act. Arkansas does not have a general Marketable Title Act comparable to those in Florida or Ohio. — Ark. Code § 18-12-609 — https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-12/subchapter-6/section-18-12-609/ (search-verified)
  • Conditions: Title is marketable under § 18-12-609 when: (1) the tax deed has been of record more than 15 years; (2) taxes have been paid for that period; (3) no adverse-possession claim has been filed or asserted since recording; and (4) the original taxes were actually unpaid before the deed was executed. — Ark. Code § 18-12-609(a)

Judicial Confirmation Before Deed Issues

Chain of Title Cure

  • Depth: A quiet-title decree under §§ 18-60-501 et seq. cures all in-personam defects as to parties properly served, including pre-certification interests (junior mortgages, judgment liens, etc. that were given § 26-37-301 notice). It does not extinguish federal liens (IRS, CERCLA) or municipal/improvement-district encumbrances that survive by operation of federal law or the non-extinguishable character of those liens under Arkansas law. — COSL buyer guidance — https://www.cosl.org/Home/Buyers

5c. TRO & Injunctive Relief

Recognized Grounds to Halt a COSL Tax Sale

  • Defective or constitutionally inadequate notice (certified mail returned unclaimed without additional steps — jones-v-flowers; incorrect parcel number — pulaski-choice-v-villa-creek-2010)
  • Payment/redemption-amount dispute (owner contends they timely submitted a complete petition to redeem but COSL rejected it procedurally)
  • Disability tolling (minor, incompetent, or wartime servicemember whose extended 2-year post-disability redemption window has not expired — § 26-37-305)
  • Constitutional takings challenge (e.g., challenge to the 2-year escheat of unclaimed surplus — the open tyler-v-hennepin-county tension)
  • Bankruptcy automatic stay (federal, not state-law: filing a Ch. 13 or Ch. 11 petition automatically stays the COSL sale — bankruptcy-automatic-stay)
  • SCRA protection (Servicemembers Civil Relief Act, 50 U.S.C. § 3953 — federal stay applies to state tax sales)

Court with Jurisdiction

  • Circuit court (county division) in the county where the property is located — courts of general jurisdiction with equity power post-Amendment 80. Emergency motions are filed in that court and heard by the duty or assigned circuit judge. Because COSL is a state agency, an action against the Commissioner challenging a sale may also be brought in Pulaski County Circuit Court (seat of state government). — Ark. Const. amend. 80; Ark. R. Civ. P. 65

Bond Required

  • Yes, typically. Ark. R. Civ. P. 65(c) requires the court to set a security bond in an amount the court deems proper to compensate the adverse party (COSL, the prospective purchaser) for costs and damages wrongfully sustained if the TRO or preliminary injunction is later dissolved. The court has discretion to waive or minimize the bond in cases of demonstrated indigency or clear constitutional violation. needs_verification for specific bond-waiver precedents in Arkansas tax-sale TRO context.
  • Typical amount: No fixed statutory amount; the court will consider the tax debt outstanding plus administrative costs. needs_verification for typical range in Arkansas COSL TRO practice.

Emergency Timeline

  • A properly filed ex parte TRO motion in circuit court (with verified complaint and emergency affidavit) can be heard within 24–48 hours if the judge accepts the ex parte showing; notice to COSL is required absent exceptional urgency (Ark. R. Civ. P. 65(b)). A preliminary-injunction hearing with notice to all parties is typically set 7–14 days after TRO issuance. Given that COSL holds auctions on published dates and the redemption window closes at 4 p.m. the day before, the owner must act well in advance — a TRO filed the morning of the sale is extremely high-risk.

Effect on a Completed Sale

  • Arkansas tax sale is administrative, not judicial. Because there is no court confirmation required before COSL issues the deed, a sale that closes before a TRO issues presents a significant complication. The purchaser’s interest vests at the moment of sale and payment (§ 26-37-202(e)). A post-sale TRO cannot unilaterally void an already-issued deed; the challenging party must seek to set aside the deed under § 26-37-203 (the 90-day challenge window) or collateral attack for constitutional violation. A court could order COSL not to issue the deed for 24–48 hours while the TRO is considered, but once a valid deed is recorded, voiding it requires a full quiet-title / confirmation proceeding or showing the sale was void (not merely voidable). — Ark. Code § 26-37-202(e); § 26-37-203; pulaski-choice-v-villa-creek-2010 (void vs. voidable) — https://arkleg.state.ar.us/Home/FTPDocument?path=/Assembly/Meeting+Attachments/040/26045/D.1.a.+COSL+Rules+and+Relevant+Acts.pdf

Non-Judicial Foreclosure Notes (Mortgage)

  • The Arkansas Statutory Foreclosure Act (§ 18-50-101 et seq.) is non-judicial. A borrower seeking to halt a mortgage power-of-sale foreclosure must file an action in circuit court — there is no foreclosure court to petition. The same Ark. R. Civ. P. 65 standard applies. The court has discretion to require a bond protecting the lender from delay-caused harm. Once the trustee’s sale is completed under § 18-50-106 and the trustee’s deed is delivered, voiding it requires a full collateral attack in circuit court — an extremely high burden unless the notice provisions of §§ 18-50-103–18-50-105 were materially violated. — Ark. Code § 18-50-101 et seq.; Ark. R. Civ. P. 65

Leading Cases

jones-v-flowers, pulaski-choice-v-villa-creek-2010, tsann-kuen-v-campbell

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption (26 U.S.C. § 7425)

  • Applies: Yes — where the IRS holds a filed federal tax lien on the property and the COSL (or trustee in a non-judicial mortgage foreclosure) gives the required 25-day advance notice to the IRS of the sale, the IRS has a 120-day redemption right (or the longer state-law period, whichever is greater) to redeem the property by paying the sale price plus applicable amount under 28 U.S.C. § 2410(d). Since Arkansas’s tax sale has no post-sale redemption period, the longer-of comparison defaults to the 120-day federal period. — 26 U.S.C. § 7425(d)(1); 26 C.F.R. § 301.7425-4 — https://www.law.cornell.edu/uscode/text/26/7425
  • Trigger: The 25-day advance notice must be sent by COSL to the IRS (certified/registered mail or personal service) before the sale. If the IRS is not notified, the federal lien is not discharged by the sale (§ 7425(b) — sale without notice to IRS has no effect on the federal lien). COSL checks for filed IRS liens and provides § 7425(b) notice to interested parties; purchasers should verify that proper IRS notice was given before bidding. — 26 U.S.C. § 7425(a)–(b); IRM 5.12.4 — https://www.irs.gov/irm/part5/irm_05-012-004
  • Practical risk: If the IRS exercises its 120-day right, the purchaser receives a refund of their bid price but loses the property. Purchasers should search for filed IRS tax liens (filed in the county circuit clerk’s UCC/lien records and with the circuit clerk) before bidding.

HOA Super-Priority

  • Super-priority status: Arkansas is NOT a super-priority HOA lien state. Arkansas HOA assessment liens are subordinate to first-mortgage liens. A bank foreclosure takes priority over the HOA lien and does not require the lender to compensate the HOA for unpaid assessments. — Axela-Tech Arkansas HOA Collections Guide (secondary source) — https://www.axela-tech.com/local/arkansas-hoa-collections/
  • HOA lien survives tax sale? needs_verification — No Arkansas statute or case was located squarely addressing whether an HOA assessment lien survives a COSL tax sale (as distinct from a mortgage foreclosure). General COSL buyer guidance warns that “liens or encumbrances held by municipalities & improvement districts are most likely not extinguishable” — an HOA is neither; it is a private entity. HOA liens likely do not have super-priority survival and may be extinguished if the HOA received § 26-37-301 notice, but this is unverified. — COSL buyer guidance — https://www.cosl.org/Home/Buyers
  • HOA lien survives mortgage foreclosure? No — subordinate HOA lien is extinguished in a senior-mortgage foreclosure where the HOA is joined as a junior lienholder. — secondary source
  • Governing statute: Ark. Code § 18-13-101 et seq. (Horizontal Property Act for condo associations); no general HOA “super lien” statute enacted in Arkansas.
  • Cap: N/A — no super-priority exists.

CERCLA / Environmental Liens

  • CERCLA lien survival: CERCLA § 107(l) (42 U.S.C. § 9607(l)) creates a federal “superlien” on property where the federal government incurs response costs — this lien is superior to all other liens or encumbrances except for pre-existing perfected security interests. A state tax sale does not extinguish a CERCLA superlien if EPA has recorded a notice of lien. — 42 U.S.C. § 9607(l); EPA Guidance on Federal Superfund Liens — https://www.epa.gov/enforcement/guidance-federal-superfund-liens
  • Arkansas state superfund “super-lien”: needs_verification — Arkansas has a state Hazardous Waste Management Act (Ark. Code § 8-7-201 et seq.); no Arkansas “super-lien” statute giving state cleanup costs priority over all other liens was located. Arkansas likely follows the standard CERCLA framework without an additional state super-lien. — Ark. Code § 8-7-201 et seq.
  • Practical advice: Purchasers should conduct a Phase I Environmental Site Assessment before bidding on industrial, commercial, or formerly commercial properties. An EPA-filed CERCLA lien will survive the COSL deed.

Municipal Code / Blight Liens

  • Survive tax sale? The COSL buyer guidance states expressly: “liens or encumbrances held by municipalities & improvement districts are most likely not extinguishable even in the case where proper notice has been given.” This is the most important survival-lien warning in the COSL buyer materials. — COSL buyer guidance — https://www.cosl.org/Home/Buyers
  • Improvement district fees: “Purchasers will probably be responsible for [delinquent special improvement district fees] assessed against the property.” — COSL buyer guidance
  • Municipal code / blight enforcement liens: Code-enforcement abatement liens recorded by a municipality (e.g., demolition costs, mowing liens) may survive the tax sale if the municipality is treated as a governmental lienholder not subject to extinguishment. needs_verification for specific Arkansas statute governing code-enforcement lien survival after COSL sale.
  • Statute: Ark. Code § 14-54-1601 et seq. (municipal improvement/assessment statutes); specific survival rule not verified.

Mechanic Liens

  • needs_verification — Arkansas mechanic’s lien statute (Ark. Code § 18-44-101 et seq.) requires perfection by filing with the circuit clerk. Whether a perfected mechanic’s lien that predates the certification to COSL survives the COSL tax sale is not expressly addressed in the COSL rules or buyer guidance. Mechanic’s-lien claimants are “interested parties” entitled to § 26-37-301 notice; if properly noticed and the sale proceeds, the lien may be extinguished as to the former owner’s interest (following the majority rule). COSL guidance suggests purchasers “research all properties at the county level” for liens. — Ark. Code § 18-44-101 et seq.; COSL buyer guidance — https://www.cosl.org/Home/Buyers

Junior Mortgage / Lender Exposure

  • COSL’s tax-sale deed extinguishes junior mortgage liens (as to the former owner’s interest in the property) if the lienholder received proper § 26-37-301 certified-mail notice. However, the senior (first) mortgage lien on a parcel being sold for delinquent property taxes is typically extinguished by the tax sale under Arkansas’s tax-superiority doctrine, because property taxes are senior to all private encumbrances. — Ark. Code § 26-37-301; COSL buyer guidance
  • needs_verification — No case specifically addressing the senior-mortgage holder’s post-COSL-sale rights was verified. The general rule in tax-deed states is that a tax sale extinguishes all private liens (including first mortgage) if proper notice was given.

Due Diligence Checklist (Prudent Purchaser)

  1. IRS lien search — UCC/lien index at the county circuit clerk and IRS lien notice filing; verify COSL sent 25-day § 7425(b) notice.
  2. HOA status — Contact the HOA (if any) for outstanding assessments; not clear-cut whether they survive.
  3. Environmental search — EPA CERCLA lien database; Phase I ESA for industrial/commercial parcels.
  4. Municipal/improvement-district lien search — County and city records for abatement, demolition, mowing, and improvement-district assessments; these most likely survive the tax sale.
  5. Mechanic’s lien search — Circuit clerk lien index for any recorded mechanic’s or materialmen’s liens.
  6. Title search — Full chain of title from county circuit clerk records to identify all encumbrances of record at certification.
  7. Verify § 26-37-301 notice — Confirm COSL mailed certified notice to all interested parties; if notice was defective the deed is void.
  8. 90-day litigation window — Know that from deed issuance, challengers have 90 days to contest; avoid major improvements until after that window and the quiet-title decree.

10b. Purchaser Obligations During Redemption Period

Must Pay Subsequent Taxes?

  • No statutory obligation on the purchaser during the pre-sale redemption period. Arkansas is a deed state in which the State holds title from certification to sale, so there is no “certificate holder” who must pay annual “subs.” The purchaser at the COSL auction receives the deed only after the redemption window closes. Post-deed, the purchaser is responsible for property taxes as the new owner of record. — Ark. Code § 26-37-202(e); COSL Rules — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • If parcel is redeemed after purchaser has paid: In the event of redemption, the purchaser receives a full refund, less non-refundable processing fees. Any taxes the purchaser paid post-deed would be between the purchaser and the county; the redemption refund does not automatically include those amounts. needs_verification for the specific refund mechanism if the purchaser paid taxes between deed issuance and a redemption event (theoretically impossible post-2023 since there is no post-sale redemption window for COSL auctions, but could arise in a void-sale set-aside scenario).

Must Notify Owner of Expiration?

  • Pre-sale notice obligation runs to COSL, not the purchaser. It is COSL that must send the owner at least 30 calendar days before the in-person auction a regular-mail notice of the right to redeem before 4 p.m. the day before the sale. — 26 CAR § 400-108; Ark. Code § 26-37-202(e) — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • The purchaser has no independent statutory obligation to notify the former owner after the sale. The 90-day deed-challenge window (§ 26-37-203) runs automatically; the purchaser need not send any notice to trigger or preserve it.
  • needs_verification — COSL may send a post-sale notice to the owner of the sale outcome (not located in the rules); no such obligation on the purchaser was found.

Owner Occupancy Right During Redemption Period

  • Because the Arkansas tax sale eliminates the post-sale redemption window as of 2023, the question of owner occupancy during a post-sale redemption period is moot for COSL auctions. The parcel is either redeemed before 4 p.m. the day before the sale (and the owner retains possession) or sold (and the purchaser holds the deed).
  • Post-deed occupancy by the former owner: The purchaser holds a limited warranty deed and is the new owner of record. The former owner remaining in possession after the sale is a trespasser absent a negotiated arrangement. The purchaser may pursue unlawful detainer (Ark. Code § 18-60-301 et seq.) to remove the former owner. — Ark. Code § 18-60-301 et seq.
  • During the 90-day challenge window: COSL guidance and practitioner consensus advise purchasers not to make significant improvements until after the 90-day deed-challenge period expires; this implicitly suggests allowing the status quo of possession to continue without forcing the issue during that window.
  • Mortgage context: After a non-judicial foreclosure, the former borrower has no post-sale redemption right and no right to remain in possession; the trustee’s deed vests immediately and the new owner may pursue unlawful detainer without a waiting period. After a judicial foreclosure, the 12-month statutory redemption under § 18-49-106 means the mortgagor may remain in possession during that 12 months (right waivable in the mortgage/deed of trust). — Ark. Code § 18-49-106 — https://law.onecle.com/arkansas/title-18/18-49-106.html

Costs Collectible if Owner Redeems

  • In the COSL tax-deed context, redemption returns the purchase price (bid + processing fees less non-refundable amounts) to the purchaser; there is no provision for the purchaser to collect improvements, carrying costs, or property-management expenses from the redeeming owner, because the post-sale redemption window no longer exists. Any set-aside / void-deed scenario is handled by court order with equitable restitution. — COSL Rules; Ark. Code § 26-37-202(e)
  • Mortgage judicial foreclosure context: The redeeming mortgagor under § 18-49-106 must pay the bid price plus interest at the decree rate plus costs of foreclosure and sale; no provision for the purchaser to recoup improvements or taxes paid during the redemption year. The 1-year redemption right may be waived in the mortgage or deed of trust. — Ark. Code § 18-49-106 — https://law.onecle.com/arkansas/title-18/18-49-106.html

Property Maintenance Obligation

  • No affirmative statutory maintenance obligation on the COSL tax-deed purchaser has been located. However, COSL buyer guidance and practitioner consensus recommend that purchasers not make significant improvements during the 90-day deed-challenge period, implicitly leaving maintenance decisions to the purchaser’s discretion without a legal duty to the former owner. — COSL buyer guidance — https://www.cosl.org/Home/Faq

11b. Restrictions & Special Rules

Entity Purchase Restrictions

  • Natural persons only: No — any person, corporation, association, or other legal entity (including LLCs, partnerships, and corporations) may bid and purchase at the COSL auction. — COSL Rules 2021 (26 CAR § 400) — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • LLC permitted: Yes — no prohibition on domestic LLCs.
  • Foreign entity (home of record outside the U.S.): Prohibited since July 1, 2021. An individual or entity whose “home of record” is outside the United States cannot bid or purchase. If such an entity wins a parcel, COSL cancels the deed within 3 business days and forfeits all money paid. — Ark. Code § 26-37-202(a) (as amended 2021); COSL Rules — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Act 636 / 2023 foreign-ownership law (Ark. Code § 18-11-110 et seq.): Separately, Arkansas Act 636 of 2023 prohibits certain “prohibited foreign parties” (tied to adversarial countries: China, Russia, etc.) and “prohibited foreign-party-controlled businesses” from acquiring any interest in Arkansas real property. This restriction applies to any real-property acquisition, including tax-sale purchases. Note: As of late 2024, a federal judge halted enforcement of Act 636 based on constitutional equal-protection grounds. The “home of record” restriction under § 26-37-202(a) (COSL-specific, enacted 2021) remains separately enforceable. — Ark. Code § 18-11-110; Act 636 of 2023 — https://nationalaglawcenter.org/federal-judge-halts-enforcement-of-arkansas-foreign-ownership-restrictions/

Insider / Prohibited Bidder List

  • The following persons and entities may not bid at a COSL auction, whether directly or indirectly:
    1. The Commissioner of State Lands and their employees
    2. The county collector and their deputies
    3. Any former owner or interested party (e.g., mortgage holder, lienor) who has a financial interest in the parcel being sold — these parties are conflicted from bidding on the parcel they have or had an interest in
    4. Any individual or entity whose home of record is outside the United States (see above)
    5. Prior defaulters — persons or entities that have won previous COSL auctions and failed to pay may be barred from future bidding
  • — COSL Rules 2021 (26 CAR § 400) — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • Citation: 26 CAR § 400 (COSL Rules); Ark. Code § 26-37-202(a)

Right of First Refusal

  • Municipalities: No right of first refusal in the COSL Rules or Title 26 statutes. All parcels are offered at open public auction. — COSL Rules; Ark. Code § 26-37-202 — https://www.law.cornell.edu/regulations/arkansas/135-00-21-Ark-Code-R-SS-001
  • CDCs / nonprofits: None located.
  • Land banks: None located at the state level (see Land Bank Program below).
  • needs_verification — No Arkansas statute granting any governmental body or nonprofit a right of first refusal or preferential match right at COSL auctions was located.

Land Bank Program

  • State-level land bank: Arkansas does not have a statewide land bank statute comparable to Michigan’s (P.A. 123) or Ohio’s (R.C. § 1724). No Arkansas legislation creating a state land bank authority to acquire tax-delinquent parcels directly from COSL was located.
  • COSL unsold-property program: COSL operates an administrative equivalent: parcels that do not sell at the in-person auction become available in the unsold-property auction (30 days after the in-person auction) and, 2+ years later, in a negotiated-price online sale where COSL may accept less than the full amount. This is not a “land bank” in the statutory sense. — Ark. Code § 26-37-202(b)–(c); COSL buyer guidance — https://www.cosl.org/Home/Buyers
  • Local programs: Some Arkansas municipalities may have informal blight-reduction or property-acquisition programs, but no statewide enabling statute for county-level land banks was located. needs_verification.

Deficiency Judgment

  • After COSL tax sale: A tax sale is the State exercising its tax-foreclosure power — there is no deficiency judgment mechanism because the former owner owed taxes (not a loan), and the taxing authority collects via the sale price. Any shortfall between the taxes owed and the sale price is simply an unrecovered government claim. There is no statute permitting the county/COSL to pursue the former owner for any balance after the tax sale. — Ark. Code § 26-37-202 et seq.
  • After mortgage non-judicial foreclosure: Allowed but capped. The lender may sue for the lesser of (a) total indebtedness minus the property’s fair market value, or (b) total indebtedness minus the sale price. The suit must be brought within 12 months of the sale date. — Ark. Code § 18-50-112 — https://law.justia.com/codes/arkansas/title-18/subtitle-4/chapter-50/section-18-50-112/
  • After judicial foreclosure: Allowed without the FMV cap that applies to non-judicial sales — where the entire mortgaged property does not sell for a sum sufficient to satisfy the amount due, “an execution may be issued against the defendant as on ordinary judgments.” The full deficiency (subject to equitable limits at the court’s discretion) may be pursued. — Ark. Code § 18-49-105 — https://law.onecle.com/arkansas/title-18/18-49-105.html

Anti-Deficiency Statute

  • No general anti-deficiency statute — Arkansas does not have a blanket anti-deficiency protection for mortgage borrowers. However, the statutory cap under § 18-50-112 (the lesser-of-FMV rule for non-judicial foreclosures) functions as a partial anti-deficiency protection for non-judicial foreclosure deficiencies. — Ark. Code § 18-50-112 — https://law.justia.com/codes/arkansas/title-18/subtitle-4/chapter-50/section-18-50-112/
  • Scope: The § 18-50-112 cap applies only to the Statutory Foreclosure Act (non-judicial power-of-sale); judicial-foreclosure deficiencies are governed by § 18-49-105 without a similar mandatory FMV cap (though courts may consider FMV evidence).

One-Action Rule

  • No one-action rule exists in Arkansas. Unlike California (C.C.P. § 726) or Idaho, Arkansas imposes no requirement that a lender foreclose before suing on the note, nor a “security-first” rule that prevents pursuing the borrower’s other assets before exhausting the collateral. A lender may sue on the promissory note independently of any foreclosure, or foreclose and then pursue a deficiency within the applicable limitations period. Comprehensive review of Arkansas statutes (Title 18, Subtitle 4, Chapters 49–50) and foreclosure case law found no one-action or security-first statute or rule. The absence is confirmed rather than merely unresearched. — Ark. Code §§ 18-49-101 et seq.; § 18-50-101 et seq. — https://law.onecle.com/arkansas/title-18/subtitle-4/chapter-50/index.html

Who this page is for

▸ For Investors / Operators — Start with the tax-sale mechanics (§1 — COSL premium-deed auction on a rolling county schedule; minimum bid = taxes + 10%/yr interest + 10%/yr penalty + costs) and the redemption mechanics (§2/2b — redemption closes at 4 p.m. the last business day before sale, no post-sale window; the deed runs to the owner even if a stranger pays). For acquisition diligence, see the title path (§5b — limited warranty deed, quiet title in circuit court, 90-day § 26-37-203 challenge window, 15-year § 18-12-609 marketability), lien survival (§7b — surviving municipal/improvement-district liens, CERCLA, IRS § 7425), and the entity/insider/foreign-ownership restrictions (§11b — out-of-U.S. buyers barred, insider-bidder prohibitions).

▸ For Former Owners — Start with the surplus rules (§3 — excess proceeds belong to the former owner of record after the statutory waterfall) and the redemption mechanics (§2 — pay all taxes, penalties, interest, and costs before the 4 p.m. pre-sale cutoff to keep the property). The title/marketability section (§5c) covers the grounds and timeline for an emergency action to halt a sale. Excess-proceeds claims are filed with the Commissioner of State Lands and escheat to the county after 2 years.

11. Meta

Local pages

County deep dives: benton-ar, pulaski-ar, washington-ar Unclaimed funds agency: unclaimed-property-arkansas

Legal information, not legal advice. This page summarizes Arkansas tax and mortgage foreclosure law from primary sources as of the last_verified date. Law changes (Arkansas materially overhauled its tax-sale redemption timing in 2023 and passed Act 211 of 2025 further reforming tax-forfeited land transfers) and county practice varies; verify against the current Arkansas Code, the Commissioner of State Lands rules, and counsel before acting. Last verified: 2026-06-10.

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