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Resident urges clarity on tax-foreclosed lot listing as city explains new resale rules
Summary
A resident told the Old Town City Council that an online listing for a tax-acquired lot advertises 'public sewer, public water' while property details say otherwise. The city attorney explained a new statute requiring three broker listings and sale to the highest bidder during a 12-month marketing period.
Toby Dutton, a resident who gave his address during the public-comment period, told the Old Town City Council on Nov. 3 that a nearby tax-acquired parcel is being marketed with misleading information and asked the city to correct it.
"It's listed as public sewer, public water," Dutton said, adding that many prospective buyers only read the headline and assume municipal services are present. He described concerns about a buried well and a septic system from the mid-20th century and questioned whether the lot — listed at about 0.45 acres — can legally accommodate a well and a leach field while meeting required setbacks from neighboring wells.
The council asked the city attorney to explain the sale procedure for tax-acquired properties. The attorney said the new state statute requires municipalities to attempt to list a property with three different brokers and to market it for up to 12 months; if the municipality receives offers during that period it must accept the highest bid available under the law. He also said properties are sold "as is, where is," and the city does not guarantee wells, septic tanks or title quality for purchasers.
Council members and staff clarified additional legal points: certified notices must be sent to last-known owners or estates, a 90-day notice provision applies to heirs, and purchasers receive a quitclaim deed that can leave residual quiet-title risk. The attorney noted recent statutory changes that limit challenges to the validity of a taking once excess proceeds have been disbursed, though questions about the amount due to prior owners may remain.
Dutton asked the city to contact the listing agent and to ensure the online listing accurately reflects on-site utilities so prospective buyers are not misled. City staff said they had asked the listing agent to correct the representation and that any buyer must conduct their own inspections and surveys before purchase.
The council did not take immediate formal action beyond directing staff to follow up with the real estate agent and to provide additional technical information to Dutton.
