The secretary or authorized assistants must sell distrained property at public auction after notice, but not for less than two-thirds of appraised value; other parties have payment, release, and proceeds-handling rules tied to the sale.
§1573. Sale of distrained property A. After notifying all reasonably ascertainable interested third parties the secretary or his authorized assistants shall sell at public auction for cash to the highest bidder so much of the property distrained by him as may be sufficient to satisfy the tax, penalties, interest, and costs due. The property shall not be sold if the price to the highest bidder is less than two-thirds of the appraised value. In that case, the secretary shall readvertise the sale of the property in the same manner as the original sale, and the same delays must elapse. At the second offering, the property shall be sold for cash at whatever price it will bring. He shall give to the purchaser a certificate of sale which will be prima facie evidence of the right of the secretary to make the sale, and conclusive evidence of the regularity of his proceedings in making the sale, and which will transfer to the purchaser merchantable title in and to the property sold. B. The purchaser shall be liable for nothing beyond the purchase price. He shall pay the full purchase price to the Department of Revenue despite the existence of any mortgage, lien, or privilege on the property inferior in rank to that of the Department of Revenue. C. The Department of Revenue shall give the purchaser a release from the security interest, mortgage, lien, or privilege of the Department of Revenue and from all inferior security interests, mortgages, liens, and privileges, and shall direct the recorder of mortgages or proper filing officer to cancel their inscriptions insofar as they affect the property sold, and no further. All writings affecting the property which were recorded prior to distraint of the property shall not be affected by the sale of the property by the secretary pursuant to this Subtitle. D. The Department of Revenue shall pay the inferior security interests, mortgages, liens, and privileges, after payment of the costs and the amount due the Department of Revenue. When the sum remaining after payment of the cost and the amount due the Department of Revenue is insufficient to pay such inferior claims in full, the Department of Revenue shall deposit the remainder with the court and proceed by contradictory motion against the inferior creditors to have their claims referred to in the proceeds of the sale. Acts 1992, No. 954, §1, eff. July 9, 1992; Acts 1997, No. 658, §2.