(1) At any sale by the county treasurer of any property for the purpose of paying any special assessment for local improvements made under the provisions of this part 5, the municipal treasurer, having written authority from the governing body, may purchase any such property without paying for the same in cash and shall receive certificates of purchase therefor in the name of the municipality. The certificates shall be received and credited at their face value, with all interest and penalties accrued, on account of the assessments in pursuance of which the sale was made. The certificates may thereafter be sold by the municipal treasurer at their face value, with all interest and penalties accrued, and assigned by him to the purchaser in the name of the municipality. The proceeds of such sale shall be credited to the fund created by ordinance for the payment of such assessments respectively. In the event that all bonded indebtedness incurred in payment for said local improvements has been discharged in full, said certificates may be sold by the governing body for the best price obtainable at public sale, at auction, or by sealed bids in the same manner and under the same conditions as is provided in subsection (3) of this section. The proceeds shall be credited to the general fund of said municipality or to the special surplus and deficiency fund provided for by section 31-25-534 (2), as the circumstances may require. Such assignments shall be without recourse, and the sale and assignments shall operate as a lien in favor of the purchaser and assignee as is provided by law in the case of sale of real estate in default of payment of the general property tax.
Any municipality as such purchaser has the right to apply for tax deeds on suchcertificates of purchase at any time after three years from the date of issuance of said certificates, and such deeds shall be issued as provided by law for issuance of tax deeds for the nonpayment of the general property tax.
Cumulatively with all other remedies, any municipality which is the owner of property by virtue of a tax deed, or is the owner of property otherwise acquired, in satisfaction or discharge of the liens represented by such certificates of sale, may sell such property for the best price obtainable at public sale, at auction, or by sealed bids. Such sales shall be after public notice by the municipal treasurer or clerk to all persons having or claiming any interest in the property to be sold or in the proceeds of such sale by publication of such notice three times, a week apart, in a weekly or daily newspaper of general circulation within the county in which the property is located. Such notice shall describe the property and state the time, place, and manner of receiving bids; except that the time fixed for the sale shall not be less than ten days after the last publication. The municipality may reject any and all bids. Any interested party, at any time within ten days after the receipt of bids for the sale of property, may file with the municipality a written protest as to the sufficiency of the amount of any bid made or the validity of the proceedings for the sale. If the protest is denied, such person, within ten days thereafter, shall commence an action in a court of competent jurisdiction to enjoin or restrain the municipality from completing the sale. If no such action is commenced, all protests or objections to the sale shall be waived and the municipality shall then convey the property to the successful bidder by quitclaim deed.
In addition to all other remedies, any municipality which is a holder of certificates ofpurchase may bring a civil action for foreclosure thereof in accordance with article 38 of title 38, C.R.S., joining as defendants all persons holding record title, persons occupying or in possession of the property, persons having or claiming any interest in the property or in the proceeds of foreclosure sale, all governmental taxing units having taxes or other claims against said property, and all unknown persons having or claiming any interest in said property. Any number of certificates may be foreclosed in the same proceeding. In such proceeding the municipality, as plaintiff, is entitled to all relief provided by law in actions for an adjudication of rights with respect to real property, including actions to quiet title.
The proceeds of any such sale of property shall be credited to the appropriate specialassessment fund. The municipality shall deduct therefrom the necessary expenses in securing deeds and taking proceedings for the sale or foreclosure.
When any municipality has sold or conveyed at a fair market value certificates ofpurchase or property which it has acquired in satisfaction or discharge of special assessment liens, such sales and conveyances are hereby validated and confirmed as against all parties having or claiming any interest in such property or the proceeds of such sale.
It is hereby declared that the purpose of this section is to restore delinquent propertyto the tax rolls and to realize the greatest possible amount from such property for the benefit of all persons and taxing bodies having liens thereon.
Source: L. 75: Entire title R&RE, p. 1198, § 1, effective July 1. L. 81: (1) amended, p. 1615, § 17, effective July 1. L. 86: (1) amended, p. 1051, § 14, effective July 1. L. 93: (4) amended, p. 82, § 3, effective March 26.
Editor's note: (1) This section is similar to former § 31-25-522 as it existed prior to 1975.
(2) This section was originally numbered as § 31-25-531 in House Bill 75-1089 but was renumbered on revision in 1977 for ease of location.