OTC Land Sale Procedures
How to Apply to Purchase
To apply to purchase, a “Over the Counter Land Sale Application” form must be completed and submitted to the Trust Land Office at 2600 Cordova Street Suite 201, Anchorage AK 99503 or by email at email@example.com. You may also fill out the “Over the Counter Credit Card Payment Form” if you opt to pay the by credit card.
In the case that a parcel receives more than one application, the earliest post marked application will be considered first.
Trust Land Office Response to Offer to Purchase Application
Approximately one week after the Trust Land Office accepts your offer you will be notified of the award by certified mail. The notification will include an Intent to Award letter and a Declaration of Intent Form for the purchaser to complete. The Trust Land Office must receive a response with the completed Declaration of Intent Form and payment within 30 days of the mailing of the Intent to Award notification including:
for Trust Land Office financing:
- $500 processing fee (submit with application);
- payment of 10% of the purchase price; and
- completed Declaration of Intent Form.
After these items are received by the Trust Land Office, a Contract will be issued to the purchaser.
- $500 processing fee (submit with application);
- payoff amount; and
- completed Declaration of Intent Form.
After these items are received by the Trust Land Office, a Quitclaim Deed will be issued to the purchaser.
Purchasers may elect to either make a lump sum payment for payoff or eligible purchasers can use Trust Land Office financing. All purchasers, whether financing through the Trust Land Office or payoff, will pay an application fee of $500 at the time the application is submitted.
Personal checks or credit cards may be used for the payments submitted with the Declaration of Intent. If a personal check is returned for non-sufficient funds, the purchaser could forfeit any deposit and lose the opportunity to purchase the parcel. The Trust Land Office's policy is to issue a Contract or Quitclaim Deed after the payment has cleared. If a cashier’s check, money order, or credit card is used, processing will be initiated sooner.
The Trust Land Office does not offer a veteran’s discount for Trust land sales (AS 38.05.940) per regulations adopted under 11 AAC 99.040(c). Offering discounted land sales is inconsistent with the principle requiring Trust land to be managed for maximization of long-term revenue to The Trust. Provisions of law applicable to other State land that appear to be in conflict with the management of Trust land under Trust principles as described in the Alaska Mental Health Enabling Act (P.L. 84-830, 670 Stat. 709 (1956)) are inconsistent with Trust land sales and do not apply.
Purchase by Contract
The Purchaser may elect to have monthly, quarterly, or annual payments. The first payment under a monthly payment schedule will be due within 30 days of the effective date of the Contract. The first payment under a quarterly payment schedule will be due three months after the effective date of the Contract. The first payment under an annual contract will be due 12 months after the effective date of the Contract.
Principal and interest payments will be set on a level-payment basis over a period of not more than 20 years according to the following financed principal amounts:
- $2,000 to $9,999.99, not more than 5 years;
- $10,000 to $14,999.99, not more than 10 years;
- $15,000 to $19,999.99, not more than 15 years; or
- $20,000 or more, not more than 20 years.
Every Contract requires a payment of at least $100 of principal each year. Interest charged on the unpaid balance is fixed throughout the term of the Contract and will be calculated based on the prime rate as reported in the Wall Street Journal on the first business day of the month in which the Contract is sent to the Purchaser, plus three percent (3%). Interest begins to accrue on the effective date shown on the face of the signed Contract.
Payments must be made in advance of the due date. There is no prepayment penalty, but payments made more than 30 days in advance of the due date are considered to be additional payments, and the regular payment will still be required unless the Trust Land Office is specifically notified in writing. Late charges are described in the Contract. There is no fee for early payoff of the Contract. Payments are due whether or not the buyer receives a Courtesy Billing Notice from the Department of Natural Resources.
The Trust Land Office reserves the right to direct payments to a bank of its choice in the future. Purchaser(s) using Trust Land Office financing will be responsible for paying any potential bank service fees in the future.
The Trust Land Office will not subordinate its interest to lenders providing construction loans; therefore, the Purchaser(s) must either payoff the Trust Land Office prior to obtaining further loans or ensure the Trust Land Office is always in first position, ahead of all other loans.
Persons Ineligible for Trust Land Office Financing
In some cases the Trust Land Office will not offer financing to a purchaser(s). The circumstances under which a purchaser is ineligible to finance through the Trust Land Office are as follows:
- A Contract or lease was administratively foreclosed for cause within the past three years; or
- A Contract or lease is currently in default, in which case the purchaser is ineligible until the amount in default is paid in full.
The Trust Land Office has the right to review situations on a case-by-case basis and waive the above requirements.
- Conditions of PurchaseQuitclaim / AS-IS, WHERE-IS Purchase
Alaska Mental Health Trust Land was conveyed from the State of Alaska to the Alaska Mental Health Trust Authority by Quitclaim Deed. The Trust Land Office does not warrant title. In addition, the Alaska Mental Health Trust reserves the mineral estate to The Trust. Purchasers are welcome to acquire title insurance at their expense. If for any reason the underlying title is not valid, all money paid to purchase the land will be refunded. The Trust has no further liability to the Purchaser for the termination of the Contract.
Parcels the Trust Land Office sale are of varying quality. It is strongly suggested that all prospective purchasers personally examine the parcels in which they are interested to determine if the land will meet their needs and desires. The Trust does not guarantee the condition or usefulness of the land offered.
Parcels are sold “AS-IS WHERE-IS” via Quitclaim Deed with all faults, and in the condition as of the date of the sale with no guarantees, expressed or implied, as to suitability or fitness for any intended use, availability of water, or for any other reason whatsoever. All purchasers have the responsibility to inspect the parcels and become thoroughly acquainted with the parcel’s condition. The purchaser’s submission of the Declaration of Intent constitutes acceptance of the parcel “AS-IS WHERE-IS.”
The purchaser is responsible for correctly locating the parcel. The Trust Land Office suggests that purchasers contract with a registered surveyor to locate the exact property boundaries. Inaccurate location of parcel boundaries by the purchaser is not justification for alteration of the parcel boundaries, does not vest any preference right to the land improperly entered, and may result in prosecution for trespass.
All maps shown in the Trust Land Office website are intended to provide a graphic illustration of the parcels and should only be used for general location purposes.
The Trust makes no representations or warranty that it will construct or maintain access to any parcel. Some parcels being offered are not road accessible; however, legal access may exist along a surveyed section line or a platted right-of-way. The Trust has no legal obligation to build roads to any parcel.
The location of legal access to a specific subdivision may be obtained from the DNR Public Information Centers. Please note that rights-of-way shown on subdivision maps designate areas reserved for road construction and access but do not necessarily indicate the existence of a constructed road.
If a subdivision has an incorporated Homeowner’s Association, subsequent owners of parcels automatically become members. A Homeowner’s Association has generally established its by-laws to assess lots within the subdivision for the costs of capital improvements and maintenance. To find out if a subdivision has an active, incorporated Homeowner’s Association, contact the Department of Commerce and Economic Development, Division of Corporations, Business, and Professional Licensing at 907-465-2974 or on-line at https://www.commerce.alaska.gov/web/cbpl/ by using the ‘Search Corporation Database’ feature and the name of the subdivision.
All parcels the Trust Land Office offer for sale are subject to all platted and valid existing easements and reservations. The subdivision plats or survey for the parcels may impose restrictions not listed on this website. Parcels are subject to rights-of-way, easements, setbacks, roads, trails, plat notes, and other restrictions. It is the Purchaser’s responsibility to fully review the recorded subdivision plat or survey available at any of the DNR Public Information Centers listed on the DNR website. Subdivision plats or surveys may be obtained from the DNR Public Information Centers; charges may apply. As noted above, The Trust reserves the mineral estate.
It is the responsibility of the Purchaser to review recorded plats/maps, surveys, and plat notes for specific information on easements, building setbacks, or other restrictions that may affect any parcel.
Surface and Subsurface Resources
Except to the extent reasonably necessary to construct buildings and improvements on the parcel (or without prior written consent by the Trust Land Office), purchasers are not permitted to remove or sell from the parcel any surface resource such as timber, stone, gravel, sand, top soil, or any other material valuable for commercial or off-site purposes until a quitclaim deed is conveyed to the purchaser. As stated previously, The Trust reserves the mineral estate to all parcels. The commercial sale of timber in violation of this restriction is strictly prohibited and will be prosecuted to the full extent of the law.
Some Trust parcels may contain wetlands. Purchasers are responsible for obtaining any necessary permits from the U.S. Army Corps of Engineers prior to construction activities in wetlands.
It is the responsibility of the purchaser to properly locate improvements within the parcel. No improvements may be constructed within platted easements or rights of ways. It is the purchaser’s responsibility to obtain all necessary authorizations from federal, state, or local agencies prior to constructing any improvements.
Properties offered by The Trust are subject to taxes and assessments levied by local taxing authorities. After a Contract or Quitclaim Deed has been executed, the purchaser is liable for all taxes and assessments.
Sewer and Water
No individual water supply system or sewage disposal system shall be permitted on any lot unless such system is located, constructed, and equipped in accordance with the requirements of the Alaska Department of Environmental Conservation (ADEC). Many of the subdivisions included in this offering have some restrictions on the types of sewage disposal systems allowed. For more information regarding a particular subdivision or lot, please refer to the subdivision and survey plats and contact the appropriate office of ADEC.
Eagle Nesting Sites
Federal law prohibits any disturbance of bald eagles or their nests and the U.S. Fish and Wildlife Service (USFWS) enforces this law. The USFWS has rules and regulations for construction and building activities near nesting sites. If there is an eagle nest on or near the parcel, please consult the USFWS concerning eagle nesting sites: https://www.fws.gov/alaska/pages/migratory-birds/eagles-other-raptors/eagle-permits. Please direct all eagle or eagle nest inquires to the USFWS at (907) 786-3693.
Trust Land Office's Right to Withdraw Parcels or Cancel Sale
To protect the interest of The Trust, the Trust Land Office reserves the right to postpone or cancel any land offering. Individual parcels may be withdrawn from the sale process at any time prior to the Trust Land Office signing the final conveyance document or contract. In the event that the Trust Land Office cancels a land offering, all fees and deposits if paid to the Trust Land Office will be reimbursed to the purchaser within 30 days.
Alaska Mental Health Trust Land Office
2600 Cordova Street, Suite 201
Anchorage, AK 99503
Phone: (907) 269-8658
Fax: (907) 269-8905
Alaska Department of Natural Resources: