With February just a few weeks away, we thought it would be beneficial to write a blog post regarding the upcoming Notice of Arrearage (Delinquent Notice), Liening, and Deeding processes. Specifically, the requirements and dates for each of the processes, in order for you to meet the required RSA deadlines.
Before you begin any of these processes, you will need to obtain the latest version of the Tax Lien Procedure Schedule of Fees and Costs from the NH Tax Collector’s website. Several of the processes require fees to be added to an owner’s unpaid invoice, and you will need to know the breakdown of each fee. Another helpful document for deciding when to do each process is the Outline of Duties published by the NH Tax Collectors’ Association.
Below is a brief description of each process as well as the RSAs that govern said process. For details on how to complete the steps in Avitar Tax Collect, select the link provided in each of the processes.
Notice of Arrearage (RSA 76:11-b): In Avitar Tax Collect, this is called the Delinquent Tax Notice and by law, must be mailed within 90 days of the final bill due date. This notice is sent by regular mail and should include all unpaid receivables (yield, current use, gravel, timber, property, liens, water, sewer, betterment). Follow the link for more information on how to generate Delinquent Notices.
Lien Notice (RSA 80:59 and 80:60): A lien notice must be sent certified mail to every owner who has not paid their prior year taxes in full. This notice must be sent at least 30 days prior to the execution of the lien. Keep in mind that the lien must be executed by September 30th each year, so the last day to mail a lien notice would be August 30th. Follow the link for more information on how to generate Lien Notices.
Execute Lien (RSA 80:61, 80:63, 80:64): Prior to the execution of the lien, a lien notice is sent to the owner and the notice must indicate the date by which the owner has to pay his outstanding invoices to avoid liening. On the execution day, or the next day, you will execute the liens for taxpayers who did not pay their outstanding invoices in full. Follow the link for more information on how to Execute a Lien.
- NOTE: Once you have executed your lien, you will need to send a report of each liened account to your mortgagee researcher. They will search the registry to find any mortgagees, which will need to be notified of the lien you have placed on the property. Follow the link for more information on how to generate the Lien Execution Title Search Report.
- NOTE: Before you generate your deed notices, you will need to send a report of each account that is up for deeding to your mortgagee researcher. They will search the registry to find any mortgagees, which will need to be notified of the impending deed. Follow the link for more information on how to generate the Deed Notice Title Search Report.
Deed Notice (RSA 80:77 and 80:77-a): At least 30 days prior to the execution of a deed, a notice must be sent to each property owner and any mortgagee informing them of the impending tax deed. This means a search of the registry of deeds must be done before the notices can be mailed. Follow the link for more information on how to generate Deed Notices.
Execute Deed (RSA 80:76): RSA 80:76 states, “The collector, after 2 years from the execution of the real estate lien, shall execute to the lienholder a deed of the land subject to the real estate tax lien and not redeemed.” There are only two reasons a collector should not deed a property: the owner has filed bankruptcy or the selectmen decide they do not want the property. If the selectmen decide not to take the deed on a property, a deed waiver form should be filled out and signed by the selectmen. Follow the link for more information on how to Execute a Deed.
Please see our online documentation for more useful Tax Collect software tips.