DNR offers financing on land sales with a down payment of 5% of the purchase price, or parcels may be purchased by paying the full price at the time of purchase. Details of sale contracts and patents are below.
If you choose to finance a land sale with DNR, the sale contract gives you the right to develop and use the parcel during the contract. You may not begin development until the contract is signed by both the purchaser and DNR.
If you choose to pay in full at the time of purchase, you may not begin development until the patent is issued by DNR.
Note: Because of the high volume of files being processed after the Auction, it may take several months or more for your contract or patent to be issued.
Once you have paid off the parcel and completed any other conditions of the sale, DNR will issue you a state patent giving you title to the land. Once the patent has been issued and recorded, you own the land as detailed in the patent. Note that the State of Alaska will retain ownership of the mineral estate of all land sold as required by the statehood act, the state constitution, and state law.
Transferring Ownership (Assignments)
During a land sale contract with DNR, you may not sell the parcel or otherwise transfer the ownership of a parcel without DNR approval. Adding, removing, or changing the contract holders requires an assignment and a fee to cover the cost of drawing up and recording additional legal documents. Any change between an auction bid and sale contract or patent requires an assignment. Any change between a RRCS lease and a sale contract or patent also requires an assignment. To request an assignment, please contact Land Sales at firstname.lastname@example.org or (907) 269-8594.
Once patent is issued, any change in ownership of a parcel is a private transaction. If you need advice on deeds or other details of a sale after receiving patent, consult an attorney or title company.
Financing with a State Land Sale Contract
DNR offers financing through land sales contracts. A contract is different from a mortgage in that the buyer fails to earn equity in the land during the life of the contract. If the buyer fails to make payments, or defaults on the contract in other ways, DNR retains all monies paid to that point and retains ownership of the land.
Land sale contracts can be issued for land purchases over $2,000. The interest rate is set by law at 3% plus the prime rate at the time the contract is written and is fixed for the life of the contract. The length of the contract depends on the amount being financed as follows:
- $2,000.00 or less must be paid in full at time of purchase;
- $2,000.01 to $9,999.99, contract length is 5 years;
- $10,000.00 to $14,999.99, contract length is 10 years;
- $15,000.00 to $19,999.99, contract length is 15 years; and
- $20,000.00 or more, contract length is 20 years.
If the purchase price minus the minimum 5% down payment, per parcel, is $2,000 or less, the balance due must be paid in full and a land sale contract will not be issued (11 AAC 67.875 Installment Payments). The balance after down payment plus a nonrefundable document handling fee of $100.00 (11 AAC 05.010 (a) (7) (F) Fees) will be due upon application for an OTC parcel or by August 28, 2017 for an apparent high bidder in the Sealed-Bid Auction.
If an apparent winner or purchaser fails to comply with these requirements, it is the applicant's decision not to move forward and thus the applicant will forfeit all or part of the deposit and lose all opportunity, right, title, and interest in the land.
Once you have signed a State of Alaska land sale contract, you have entered into a legal, binding contract. Your money will not be refunded if the contract is in default, has been relinquished, or is otherwise terminated.
Land Sale Contract Applicant Qualifications
If you elect to enter into a purchase contract with the State of Alaska, in accordance with 11 AAC 67.008 Ineligibility Due to Default, you must also certify that you:
- have not held a purchase contract or lease issued by DNR that has been administratively foreclosed or terminated for cause within the past 3 years (contact the Land Sales and Contract Administration Section at (907) 269-8594 if you have questions about eligibility);
- are not currently in default for nonpayment on a purchase contract or lease issued by DNR; and
- are not currently in default for nonpayment of municipal taxes or assessments on property currently under a purchase contract or lease issued by DNR.
Purchase contracts will not be issued by the State of Alaska unless all 3 qualifications listed above are met. If you are the successful bidder or applicant for a parcel and do not meet requirements listed in the "Land Sale Contract Applicant Qualifications" section to qualify for a contract, a lump sum payment will be required. Failure to submit payment in full upon notification may result in the forfeiture of your deposit and loss of purchase rights to the parcel.
Important: The State of Alaska does not allow early entry for development activity until the sale contract or patent is issued. Please contact the Land Sales and Contract Administration Section at (907) 269-8594 for additional information.
For details and legal authority, see Alaska Statute 38.05.065 and Alaska Administrative Code 11 AAC 67.875-.880.
Responsibility to keep your information current with LSCAS
Any notice or other correspondence sent to you is sufficient if mailed to the last address of record, even if it does not reach you. It is your responsibility to maintain a current mailing address and contact information with DNR DMLW, Land Sales and Contract Administration Section (LSCAS) during the life of the sale contract.
Please note that notifications sent to other Sections, Divisions, or Departments may not reach LSCAS and your records may not be updated. Failure to keep your address and contact information current with LSCAS could result in closure of your application, loss of all opportunity, right, title, and interest in the land, or termination of your contract. See the "Bidder/Applicant Responsibility to Keep Address Current with LSCAS" section for more information.
Once the contract for sale has been executed, you will owe a service fee for any late or returned payment as follows:
- Late Payment Penalty: A breach caused by the failure of the purchaser to make payments required by the contract may be cured by payment of the sum in default and a fee (AS 38.05.065 (d) Terms of Contract of Sale) of $50.00 or five percent (5%) of the sum in default, whichever is larger. Contract payments received apply first toward any late fees, then toward interest owed, and any remainder reduces the principal balance.
- Returned Payment Penalty: A returned payment fee of $25.00, as provided in 11 AAC 05.010 Fees, will be assessed for any payment that the bank refuses. The default termination date (the date payment is due) will not be altered due to a delay caused by a bank refusing payment. Late penalties, as previously described in this section, shall continue to accumulate.
Public Information Offices
|Southcentral Regional Office||Northern Regional Office||Southeast Regional Office|
|550 West 7th Avenue, Suite 1260||3700 Airport Way||400 Willoughby Ave, Suite 400|
|Anchorage, AK 99501-3557||Fairbanks, AK 99709-4699||Juneau, AK 99801|
|Phone: 907-269-8400||Phone: 907-451-2705||Phone: 907-465-3400|
|Fax: 907-269-8901||Fax: 907-451-2706||Fax: 907-465-3886|