Real Estate

Real Estate

Public Sale of Vacant or Abandoned Properties – What Potential Buyers Need to Know

civil litigation lawyer Lafayette Indiana

Mallory Deardorff-Dawson

Posted by Mallory Deardorff-Dawson, on February 10, 2017

How are vacant or abandoned properties sold?

Indiana recently passed legislation that allows cities or counties to auction properties that are determined to be vacant or abandoned at a public sale. The first auction conducted under this new legislation in Tippecanoe County took place in October 2016.

What are the potential benefits of buying vacant or abandoned property?

The sale of vacant or abandoned property could potentially be a great opportunity for real estate investors to purchase the property at below market value because, under the legislation, the minimum bid at auction for one of these properties is the cost of the auction itself. Another potential benefit to purchasing a vacant or abandoned property at one of these public sales is that the current owner has no right of redemption—meaning that the successful bidder gets the property “free and clear” without the owner having the opportunity to attempt to get the property back by paying the delinquent taxes.

What are the potential pitfalls of buying vacant or abandoned property?

One potential problem with this new form of sale is that there is a very specific process that must be followed to prepare the properties for sale. If the process is not strictly followed, the purchaser could run into problems if the former owner seeks to get the property back.

RTS offers counsel regarding real estate purchases.

Due to the detailed, multi-step process that must be followed prior to the sale of vacant or abandoned property, it is helpful to have an attorney review the procedures and confirm that all of the steps were properly taken in compliance with the statutes. This is especially true because this legislation and type of sale is relatively new. RTS’s experienced attorneys are available to advise and assist clients regarding the laws applicable to the property they are looking to purchase.

**Reiling Teder & Schrier, LLC is an Indiana Limited Liability Company. The information contained in this website has been prepared by Reiling Teder & Schrier, LLC for informational purposes only, and is not legal advice. The information on this website should not be relied upon to make any decision, legal or otherwise. If you have any specific questions or inquiries regarding any of the information contained in this website, you should consult with an attorney licensed in your state. The information contained in this website pertains only to matters of Indiana law and the laws of other states may be completely different from the laws of the State of Indiana.