Real Estate Brokerage Services for Tax-Acquired Properties

Tax-acquired properties are those the City has foreclosed on due to due to nonpayment of property taxes, in accordance with Maine law. When property taxes remain unpaid, the City places a lien on the property. If the lien is not redeemed within the statutory period (generally 18 months), the City automatically forecloses and takes ownership of the property. In the past we have sold tax-acquired property primarily through a sealed bid process. In many cases, properties were sold at below-market value, and former owners had no opportunity to recover any remaining equity. Recent changes to Maine law, particularly 36 M.R.S. §943-C , have significantly restructured how municipalities must sell tax-acquired property. The prior practice of selling such properties through auction or sealed bid has been replaced with a requirement to market and sell these properties through a licensed real estate professional using a market-based approach. These changes were driven by constitutional considerations affirmed in Tyler v. Hennepin County , which require that any surplus proceeds from the sale of tax-acquired property be returned to the former owner. As a result, current Maine statutes now: Require municipalities to make reasonable efforts to sell tax-acquired properties at fair market value; Require that former owners be notified of the sale and may be entitled to claim any excess proceeds remaining after taxes, interest, costs, and fees are satisfied; Impose clearer timelines and procedural requirements for marketing and disposition of these properties; Emphasize transparency, fairness, and market-based sales practices. Purpose of this RFP In light of these changes, the City of Ellsworth seeks to engage a qualified real estate professional or firm to: Assist in determining market value through comparative market analyses (CMAs); Market properties broadly to ensure competitive exposure; Facilitate sales that reflect fair market value; Help ensure compliance with statutory requirements, including documentation and timelines; Support the City in maximizing return while maintaining fairness to former property owners and the public. The City's goal is to establish a consistent, transparent, and legally compliant process for the disposition of tax-acquired properties that protects the interests of the municipality, taxpayers, and former property owners alike.