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Council adopts policy to solicit agents for sale of foreclosed tax‑acquired properties
Summary
Council approved a staff-drafted policy to market foreclosed tax‑acquired parcels, endorsing periodic outreach to licensed agents, a 'lottery' or RFP approach, and provisions if agents decline listings; council left some timeline language flexible.
The Eastport City Council voted on Jan. 14 to adopt a policy that sets how the city will market tax‑acquired and foreclosed properties.
Staff proposed a system that periodically advertises for licensed real‑estate agents willing to list tax‑acquired properties, with a process for accepting or declining a listing. The policy would allow the city to use either an annual advertisement to create a pool of agents or to accept agents on a rolling basis; council agreed to leave the timing language flexible. Members discussed the limits the state places on sales (fair‑market‑value protections for former owners) and noted that quitclaim deeds typically carry lower marketability than clear title, which affects pricing expectations.
Council also discussed commission rates (staff suggested a starting point of 3 percent but noted rates can be adjusted) and how the city will justify shifting to a formal RFP if multiple agents decline properties. The policy as adopted instructs staff to follow state statute on valuation and to document any agent declinations in writing so the city can proceed to bids if necessary.
Why it matters: The policy creates a repeatable process for moving tax‑acquired properties off municipal books while adhering to statutory protections for prior owners. It aims to increase transparency and predictability in sales.
On the record: Councilmembers noted that some tax‑acquired parcels may not fetch full market value and that the city may need to accept modest proceeds to remove liability and maintenance burdens. The manager said a handful of recently foreclosed properties make the policy timely.
What happens next: Staff will implement the outreach approach as adopted, document agent responses and proceed with sales or bids consistent with the policy and state law.
Ending: Council approved the policy by roll call after brief discussion and a single wording change to avoid locking the outreach window to a specific calendar date.
