Wednesday, June 19, 2024

How To Buy Tax Liens In Florida

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National Tax Lien Association

Florida Tax Liens

Since tax lien investing involves a significant amount of due diligence, it can be beneficial to passively invest through a National Tax Lien Association institutional investor. Studies show around 80% of tax lien certificates are sold to NTLA members. The cost for an NTLA membership for investors with less than $1 million is around $500. Based on their investment portfolio size, an NTLA membership fee can range from $2,000 $10,000 for institutional investors and offer a 4% to 9% range of returns per year.

What Happens To A Mortgage In A Tax Lien Sale

A lien stays with the property when it is sold. However, the lien remains on the previous owners credit report.

Property tax lien foreclosures occur when governments foreclose properties in their jurisdictions for the delinquent property taxes owed on them. Property tax liens are superior to other liens so their foreclosure eliminates other liens, including a mortgage lien. Homeowners with delinquent taxes typically also have outstanding mortgage debt. After purchasing a tax-foreclosed property, if you discover that there is a mortgage lien on it, it should be removed by the county in which you bought it. The county will discharge the lien based on the tax sale closing documents. In the event that this does not work, you can also contact the lien holder to have it removed.

In every state, after the sale of a tax lien, there is a redemption period where the owner of the property can try to redeem their property by paying their delinquent property taxes. However, even if the owner is paying their property taxes, if they fail to make their mortgage payments during this time, the mortgage holder can foreclose on the home.

Beginners Guide To Tax Lien Investing

As an investor, your main goal is to look for new opportunities and evaluate risk vs. reward. While its been around for years, tax lien investing increases in popularity among investors of nearly every skill level.

But buying tax liens is not for everyone, as it requires up-front capital and will take at least 120 days to see a return on investment. Though there are risks associated, the returns can be tremendous depending on the property at hand.

Before you consider your own foray into tax lien investing, heres a quick primer on this often profitablethough sometimes confusinginvestment strategy.

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Investing Passively Through An Institutional Investor

Tax lien investing requires a significant amount of research and due diligence, so it may be worth it to consider investing passively through an institutional investor who is a member of the NTLA. Approximately 80% of tax lien certificates are sold to NTLA members.

If you’d like to become a member of the NTLA, it costs $500 a year . For institutional investors, membership fees range from $2,000 to $10,000, depending on the size of their investment portfolio. Institutional investors can generate returns that range from 4% to 9% a year. The NTLA can help match up interested investors who become members of the NTLA with institutional investors who focus on tax lien investing.

How Much You’ll Have To Pay To Redeem Your Florida Home

State Sales Tax: State Sales Tax Florida

To redeem the property, you’ll have to pay the face amount of the tax certificate, along with interest and costs. .

You might also have to pay a mandatory minimum charge of 5% if the lien purchaser bid less than 5% interest on the debt when buying the lien. But if the purchaser bid an interest rate of 0% when buying the lien, then you don’t have to pay this charge. .

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Tax Deeds / Lands Available

Tax Deed Sales are generally held the first Monday of every month. The date is subject to change if the first Monday of the month is a holiday. Online Tax Deed sales will be conducted online on scheduled sale days beginning at 9 a.m. Central Standard Time . Unless otherwise noted or required by the court or state law, it will no longer be necessary to appear in person to participate in the sale. The Clerk’s Office will provide a limited number of public computers for those without Internet access.

Please contact the Clerk’s Office at 850-595-3793 for availability. The sale of a particular property is subject to change without notice.

If I Am The Successful Bidder At The Sale What Do I Need To Do

If you are the successful bidder on a piece of property, your required non-refundable deposit will be automatically deducted from your online account, and the balance of your bid must be paid by 4:00 p.m. the following day. You may make this payment in Room 1260 of the Duval County Courthouse. The balance must be paid by cashiers check, certified check, or money order, made payable to the Clerk of the Circuit Court. We will also accept a Bank Wire paid by this time.

If youre the successful bidder, you will also be required to pay Recording, Proof of Publication and Documentary Stamp fees. The Recording fee is $10.00 for the first page and $8.50 for each additional page. Proof of Publication fee is $18.50. Documentary Stamps are based on the high bid. They will be calculated for you and should be included in the email sent to you by RealAuction. There is a $1.00 per-party indexing fee for deeds with more than four people or entities listed as titleholder

Deeds will be recorded in the name provided by the bidder on the auction website under the name on the title. We ask that you please verify this information when you make full payment to assure that it is correct. It will be the bidders responsibility to make any corrections after the deed has been recorded. Please note that deeds are recorded seven to 10 business days after the sale.

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Do I Get A Clear Title With A Tax Deed

That depends. You see, Tax Deed properties are sold on a buyer-beware basis. The clerk will issue a Tax Deed to transfer ownership to the successful bidder, but it is not a guarantee of clear title. It is the bidders responsibility to determine whether there are any liens or other encumbrances that will survive the Tax Deed sale. The buyer should also investigate whether additional taxes may be due or if further legal action is necessary. To obtain clear title, you will have to file a Quiet-Title suit in the Civil Court system. The fees required to file this suit are above and beyond the bidders purchase price.

Can the former property owner get the property back even after it is sold at a Tax Deed sale?

The short answer is yes. As with many things, the purchaser of a Tax Deed should have a buyer-beware attitude. If the former owner disputes the sale and takes the case to court, the judge will decide the ownership of the property. Its always best to consult an attorney regarding the purchase of any property.

How To Get More Information

Florida Tax Lien Basics: Auction & OTC Tutorial

If you want more information about property tax and redemption laws in Florida, consider talking to a foreclosure lawyer, tax lawyer, or real estate lawyer who has experience with property tax issues. To learn more about property taxes and other aspects of homeownership in general, get Nolo’s Essential Guide to Buying Your First Home by Ilona Bray, J.D., Attorney Ann O’Connell, and Marcia Stewart.

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What Liens Or Encumbrances Survive Against A Property After It Is Sold At A Tax Deed Sale

Its helpful to know that governmental liens and judgments survive the issuance of a Tax Deed and are satisfied to the fullest extent possible with any overbid monies from the sale. Governmental liens that are not satisfied in full will survive the issuance of a Tax Deed and will still remain against the property. We recommend strongly that you research the properties before the sale day so you will understand what you are purchasing. You should check for liens, zoning, restrictive covenants, etc. For your convenience, the Tax Deed file may be viewed at

What Happens If I Am Successful In A Bid For A Property

You are required to post a nonrefundable deposit of 5% of the bid or $200, whichever is greater, prior to bidding for the parcel.

Payment in full, including documentary stamps and recording fees, must be made by 10AM the next business day. Payments can be made through the online sales site or in person with cash or by cashier’s check payable to Clerk of the Circuit Court. Upon receipt, a tax deed will be issued and recorded.

If full payment is not made, the Clerk shall cancel all bids, re-advertise the sale, and pay all costs of the sale from the deposit. Any remaining funds will be applied toward the opening bid. The clerk may refuse to recognize the bid of any person who has previously bid and refused, for any reason, to honor their bid.

Also Check: Ntla Tax Lien

Learn How To Buy Tax Liens In Florida

Ive been doing this for decades, and Ive learned this, if youre going to buy tax lien certificates, you just need to give it some thought. Either get a coach to help you out, or study it.

There are a lot of books that you can study, but the easiest way to learn is to get a coach to help you, or learn it online like we teach it.

With the tax lien certificates, all kinds of things happen.

First of all, if you have a big auction, lets take Miami-Dade as an example Miami-Dade could have up to 65 ,000 tax lien certificates. Well, to sell 65,000 of anything, it takes weeks at a time. Online, theyll do that in a few days.

They will not sell all the tax liens.

Heres the inside tip.

If they dont sell all the tax liens, theyre going to put them on a list. Lets call the list the leftover list.

In Chicago, they call it a scavenger list. In Texas, theyll call it a strikeoff list.

Whats important for you to understand is that theres so much abundance that they cant sell all the certificates, so there are leftovers.

How Do I Check For Tax Liens And How Do I Buy Tax Liens In Florida

South Dade Updates: Charge (it)! Florida Sales Tax holiday has begun.

Florida, currently has 137,779 tax liens available as of June 8. Smart homebuyers and savvy investors looking for rich money-making opportunities buy tax-delinquent properties in Florida, at tax lien auctions or online distressed asset sales. These buyers bid for an interest rate on the taxes owed and the right to collect back that money from the property owner. The relatively high interest rates on these delinquent properties in Florida, make tax liens super attractive investments. If you are looking to buy a tax lien in Florida, then your search for amazing deals and independent wealth begins right here!

We’ve got the most up-to-date tax delinquent properties for sale list in Grand Prairie, Texas, below:

Page 1 – 50137,779

Tax foreclosed homes are available for pennies on the dollar – as much as 75 percent off full market price !

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Be sure to act fast and be persistent because the best tax deals might disappear as soon as tomorrow. These one-in-a-lifetime real estate deals are that good.

There are currently 137,779 red-hot tax lien listings in Florida.

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Don’t Miss: Efilemytaxes

How To Perform A Florida Lien Search

  • Use the state of Florida public records guide to look up property liens against individuals and businesses. Fees are typically associated with this form of lien lookup, but you can obtain official documents using this method.
  • Use a third-party site. Third-party sites can be an incredible resource for individuals who need to look up any type of lien against them or their property in the state. While third-party sites may not be usable in court since they dont come directly from the issuing agency, they can be very helpful when it comes to learning more about a particular lien situation and how to resolve it.
  • Mechanics liens, which are debts owed for the improvement of business or personal property, are often a little more difficult to track. To obtain a copy, youll need to contact the clerks office in the county where the lien was filed. They are the office of record and finding these documents online is rare.
  • Corporate liens in Florida are filed with the Department of State, making them part of the public record. You may also be able to find some federal lien records this way. Tax liens against businesses are also listed by the Florida Department of Revenue.
  • Judgment or personal liens. These are awards that can be related to cash owed, vehicles or personal property. You can search for those records here.

Government Tax Foreclosure Makes A Beginning Investor A Big Profit

Florida is one of the best states in the U.S. to buy at the foreclosure tax sale. You can buy real estate at these tax foreclosure sales for the back taxes. Homes, land, and commercial properties are auctioned off to the highest bidders. Read about the Sandra Edmond and how she got started and made close to $40,000 on her first deal.

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What Does It Mean If You Have A Tax Lien

If you have a tax lien, it means that the government has made a legal claim against your property because you have neglected or failed to pay a tax debt. In the case of a property tax lien, you have either neglected or failed to pay the property taxes that you owe to the city or county where your property is located. When this happens, your city or county has the authority to place a lien on the property.

Buying Tax Deeds In Florida Revenue

Florida Tax Sales: How Tax Lien auctions in FL work?

This business has been around for over 200 years. It was created by local, state and county governments to collect money for government services.

The average man in the street doesnt think every day about how to fix the roads or how to build schools or hire school teachers. The fact is these government services must be paid for.

Certainly, we want firefighters to protect our homes and offices plus police to handle criminal situations. All of the government services must be funded and paid for by the county.


The property taxes on homes, offices and privately owned property are always assessed. Thats called a levy which is an encumbrance. All private properties will have them.

The residents at the county level all participate to pay a fair share of the local government bills. Money is collected by the local county, and in some cases by the municipalities, to pay for government services.

The county needs money to continue the day-to-day functions and has the responsibility to pay employees, health care, and pension plans. All of this comes from property taxes.


Florida is divided into 67 counties which are authorized to operate local governments.

Additionally, the legislature of the state of Florida authorizes the county to levy and collect taxes.

This process and system have been in place since the state was established and became a legal entity.

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Prepare For The Tax Deed Sale

  • Attend at least 3 sales before you bid.
  • Pick a county or two to buy tax deeds. Here is a list of all the Florida counties. Scroll down to the bottom of the page for the National Association of Counties link for counties in other states.
  • Create a file for each county and put everything you learn in that file including the rules, names, phone numbers, notes on what they told you etc.
  • When you get to the auction, introduce yourself to the person you spoke to on the phone.
  • Get the list of upcoming properties going to sale
  • Get answers to all your questions
  • Get a map of the county.
  • Research properties on a list using an excel spreadsheet or property analysis form.
  • Go see every property before you bid!!!
  • Pick the properties that meet your criteria. Your criteria may be influenced by your budget, if it is vacant land or a house and what kind of work it needs.
  • What is your exit strategy? Do you plan to fix it up and hold on to it or do you want to resell it?
  • Can you make a profit on the deal?
  • Drive by the properties that are now on your short list and get pictures of them.
  • Order a title commitment or do your own title search using the countys official public records. If you want to save money, I would advice you to learn how to do your own title searches. Most title companies charge $85-125 per search. Your better off doing it yourself because most often your short list of properties will contain about 8 properties that you need to title search for each sale.
  • Getting Started With Tax Deeds And Tax Liens

    Instagram and Social Media follow up content.

    Im Sandra M. Edmond a full time real estate investor, licensed real estate broker associate and trainer. If you are new to real estate investing or tax deeds and liens, this is the page for you! It contains the information you need to get up to speed quickly and start investing with confidence. I will update this page periodically so be sure to check back for updates.

    Search the Central Florida MLS using this link or use it to find comparable sales. Search the South Florida MLS using this link.

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