Deposit Required: Auction registrants will provide a deposit in cash (no coins), personal check, or certified check payable to “Sager & Smith, PLLC Trust Account” in the amount of $1,000.00 prior to the auction.  Deposits may be made to an NH Tax Deed & Property Auctions representative at the auction location immediately prior to the auction.  Deposits of unsuccessful bidders will be returned at the conclusion of the auction. An additional deposit will be required upon a successful bid pursuant to the “Closing/Transfer of Title to Successful Bidder” section below.

Auction Information: Each auction is held at a central location (typically in the town in which the property to be auctioned is located). Please refer to nhtaxdeedauctions.com for up-to-date information about the times and locations of our auctions.

Due Diligence: Each bidder is responsible to perform due diligence in researching each property prior to bidding on same.

Buyer’s Premium: A buyer’s premium of ten percent (10%) of the base price (successful bid) will be added to the purchase price payable by the buyer as part of the purchase price.

Disclaimer: The information provided by the Municipality in any bidder packet and at nhtaxdeedauctions.com is for informational purposes only.  Each bidder is required to conduct his/her own research and to make his/her own conclusions regarding title, fitness for a particular purpose, zoning restrictions, etc.

Closing/Transfer of Title to Successful Bidder: Closing will take place within 30 days of the sale at the law office of Sager & Smith, PLLC, or other mutually agreed upon location.  Most closings can be accomplished using email and the U.S. Postal Service. Successful bidders will sign a Memorandum of Sale prior to leaving the auction venue, and a deposit in the amount of not less than 10 percent of the purchase price will be collected at that time ($1,000.00 minimum) and held in escrow at the law office of Sager & Smith, PLLC until closing.  Failure on the part of the successful bidder to meet the terms of sale within the closing period will result in the forfeiture of the deposit as liquidated damages as well as other legal remedies available to the Municipality for the breach of contract.  The successful bidder will receive a deed conveying title to the property, which will be without covenants (warranty, quitclaim or otherwise), but which will be subject to any easements, restrictive covenants, and/or benefits that remain of record. The successful bidder will be required to pay all NH transfer taxes, deed recording-related fees, and applicable pro-rations at the time of closing.

No Warranty of Title: Bidder acknowledges the Municipality is conveying each property AS IS, WHERE IS, WITH ALL FAULTS, with no representations as to the quality of the title being conveyed or the quality of the property being bid upon.  Bidder further acknowledges that all representations made by the Municipality are for descriptive purposes only, and are not to be relied upon by bidder for determining whether the property is suitable for building or for any purpose whatsoever.

Signature Required: Each bidder is required to sign a “Bidder’s Registration and Acknowledgment,” that he/she has read and understands its terms, and he/she understands the same and will abide by the terms of this auction sale.  The auctioneer can refuse a bid or to consummate a sale with any person who refuses to sign this “Bidder’s Registration and Acknowledgment.”

Rights Reserved: The Municipality reserves the right to add or remove properties from the list of properties for sale, increase or decrease the minimum bid amount, offer the property to unsuccessful bidders in the event the successful bidder defaults, sell parcels in groups, postpone or cancel the auction, or take whatever reasonable action it deems appropriate in order to facilitate sale of the properties or otherwise.

NOTE
Bidder FAQs are for informational purposes only. They do not constitute legal advice.

Q. Can I buy a property directly from the municipality before it is sold at auction?

A. No. For a municipality to sell directly to an interested buyer, the municipality must be specifically authorized to do so. If the property is being sold at auction, it means that the municipality has already determined that this is the method by which the property will be sold. You are, of course, encouraged to bid on the property at the auction.

Q. Can I view a property before the sale date?

A. We encourage all interested bidders to do thorough due diligence before bidding, including inspecting the property if allowed by the municipality. If you enter a property without permission, you are doing so entirely at your own risk. You are expressly prohibited from entering any structures on the properties except during open houses or with prior permission from NH Tax Deed & Property Auctions (“NHTDPA”) and the municipality.

Q. What will a property sell for at auction?

A. It is difficult to estimate what a property will sell for at auction. The final sale price depends on a wide range of factors, including the property’s characteristics, zoning, interest rates, economic forces, and auction attendance.

Q. Will I be responsible to pay the property’s municipal tax liens on a tax-deeded property?

A. No. An individual who purchases a tax-deeded property located in New Hampshire acquires title free of all municipal tax liens. See Burke v. Pierro, 159 N.H. 504 (2009). The municipality is compensated for outstanding municipal tax liens by whatever it receives from the sale of the property. If the property sells for less than what is owed the municipality, the municipality keeps the entire amount. If the property sells for more than what is owed the municipality, the former owner(s) and/or lienholder(s) may be entitled to receive the excess proceeds.

Q. Will I be responsible to pay liens other than municipal tax liens on a tax-deeded property?

A. Generally, no. In New Hampshire, a purchaser acquires title to the land “devested of all other liens thereon or titles thereto.” See Burke v. Pierro, 159 N.H. 504 (2009) (quoting Eastman v. Thayer, 60 N.H. 408, 418 (1880)). However, if the municipality failed to comply with applicable law when it sent out statutorily required notices before the sale, a lien could survive the sale. See, e.g., First NH Bank v. Town of Windham, 138 N.H. 319 (1994). In our experience, surviving liens are exceptionally rare.

Q. Will I be able to build on a property?

A. The answer depends on a variety of factors, including: the type of structure to be built (such as a house, trailer, apartment complex, or commercial building), the municipality’s zoning regulations, the size and terrain of the property, the amount of road frontage, environmental characteristics (such as the existence of wetlands and waterfront), and the history of the lot (such as whether a building was or is on the property). Properties that appear buildable may in fact not be buildable. Notably, municipal boards (such as zoning boards and planning boards) may grant you a variance for development of a non-buildable lot if certain criteria are met.

If you are concerned about whether a lot is “buildable,” you should conduct thorough due diligence before the auction by conducting independent research and engaging real estate professionals such as attorneys, title companies, and surveyors. If after the auction you determine that the property you bought at auction is not buildable, you must still purchase the property (see below).

Q. Is there any hazardous waste or other hazard on a property?

A. Unless otherwise noted, NHTDPA and the municipality make no representations as to the existence or absence of any hazards on a property.

Q. Is it possible to gain access to a landlocked property (i.e., a property without road frontage)?

A. Even properties without road frontage may still be accessible. Access can be achieved through (among other means): (1) owning an abutting property with road frontage, (2) an easement contained in the property’s deed or an adjacent property’s deed that provides access to the parcel, (3) a license to access the property that an abutter gives or sells to you, (4) a successful court petition for an easement by necessity or other easement over an abutter’s land, see, e.g., Burke v. Pierro, 159 N.H. 504 (2009).

If you have questions regarding access to a landlocked property, before the auction you should consider conducting independent research and engaging a real estate attorney.

Q. What if the information provided about the property does not conform with the property’s actual characteristics?

A. NHTDPA and the municipality attempt to provide accurate information about the properties to be sold, but it is your responsibility to verify this information and conduct additional research. The information provided by NHTPDA and the municipality is for informational purposes only. You are required to conduct your own research and to make your own conclusions regarding title, fitness for a particular purpose, zoning restrictions, etc. Each property is conveyed AS IS, WHERE IS, WITH ALL FAULTS, with no representations as to the quality of the title being conveyed or the quality of the property being bid upon. All representations made by NHTPDA and the municipality are for descriptive purposes only and are not to be relied upon for any purpose whatsoever.

See auction policies above for more information.

Q. What research should I do before the auction?

A. To start, we suggest undertaking the following tasks: (1) carefully reviewing the property information provided on the NHTDPA website, (2) driving by the property and attending any open houses, (3) searching the county registry of deeds for information about the property, (4) reviewing applicable laws and regulations (such as municipal zoning ordinances and state environmental laws), and (5) engaging independent real estate professionals (such as attorneys and title companies) to evaluate the property.

The above list is by no means exhaustive, and it is up to you to conduct research you deem necessary to make an informed decision on whether to bid on a property, and if so, up to what amount. As described above, each property is conveyed AS IS, WHERE IS, WITH ALL FAULTS, with no representations as to the quality of the title being conveyed or the quality of the property being bid upon.

Q. Will I get clear title to the property?

A. “Clear title” means the title is free from liens or other claims. If the municipality sent out all required notices to former owners and lienholders, the deed to the buyer from the municipality should convey clear title.

That said, there are numerous variables and unknowns that could prevent a property purchased at auction from having clear title. It is up to you to conduct research you deem necessary to make an informed decision on whether to bid on a property, and if so, up to what amount. As described above, each property is conveyed AS IS, WHERE IS, WITH ALL FAULTS, with no representations as to the quality of the title being conveyed.

If you have questions regarding title to a particular property, before the auction you should consider conducting independent research and engaging real estate professionals such as attorneys and title companies for guidance above resolving potential post-sale title issues.

Q. Will I be able to get title insurance on the property?

A. Whether a title policy will issue is up to the title insurance company. Some companies are more willing to issue a title insurance policy than others. If you have questions regarding acquiring title insurance for a particular property, you should contact a real estate attorney or title company before the auction to discuss what they will require to issue a policy.

Q. How can I pay the $1000 deposit?

A. For the auction deposit, we accept cash (no coins), personal checks, certified checks, and electronic check deposits made through EARNNEST—a leading online real estate deposit platform. We do not accept credit cards.

Q. If I make the $1000 deposit, can I bid on more than one property?

A. Yes.

Q. If I don’t want to bid at the auction, can I still attend?

A. Yes—so long as you do not attempt to bid or disrupt the auction and there is sufficient space for you and all registered bidders.

Q. How long will the auction last?

A. Auctions usually go quickly. For auctions with 10 or fewer properties, the auction will probably take less than one hour (and may take less than half an hour).

Q. Can I bid online if I cannot make the live auction?

A. Yes. Through our online bidding platform, we allow people to bid online in real time for certain auctions. Our online auctions can be found here. To request to bid online at one of our auctions, please email us at info@nhtaxdeedauctions.com.

Q. Can I have an authorized person bid on my behalf if I cannot make the live auction?

A. Yes. But please note that the authorized person’s bid will contractually bind you to purchase the property as though you were bidding yourself.

Q. Is there any other way to bid at the auction if I cannot attend?

A. Yes. We also accept absentee bids, whereby one of our staff members will bid up to the amount of your predetermined high bid. To request to bid absentee at one of our auctions, please email us at info@nhtaxdeedauctions.com.

Q. Can I take possession of a property immediately after the auction has concluded?

A. You cannot take possession of a property you purchased until the sale price has been paid in full and the deed is recorded. For properties with structures, you will coordinate with the municipality to pick up building keys.

Q. What kind of deed will I receive?

A. Purchasers will receive “deed with no covenants,” in which the municipality makes no warranties as to title.

Q. How long do I have to close the property?

A. You will have approximately 30 days to complete the transaction. Please refer to the sample memorandum of sale here for more information.

Q. What happens if I do not close on the property?

A. Buying property at auction forms a binding contractual agreement. If you are a successful bidder, you will sign a memorandum of sale that requires you to complete the transaction. If you refuse to purchase the property for any reason, the municipality may keep your 10% deposit or sue you for specific performance to force you to complete the transaction.

Please refer to the sample memorandum of sale here for more information.