Certificate of Title After Foreclosure Information
The certificate of title: transfers ownership from the former owner to the purchaser (the successful bidder at the foreclosure sale), is issued by the clerk of court (not by the former owner; the court's authority replaces the need for the former owner's cooperation), eliminates all interests that were properly joined in the foreclosure (junior liens, judgments, and other encumbrances that were adjudicated in the foreclosure action), and does not provide title insurance (the purchaser receives the property without the protections of a title insurance policy, unless they independently obtain one).
Florida Legal Definition
Certificates of title after foreclosure in Florida are governed by: Florida Statutes §45.031 (Judicial Sales Procedure). Under §45.031(4): after the sale is held and the time for filing objections has passed, the clerk issues the certificate of title to the purchaser. Under §45.031(5): if no objections are filed within 10 days after the sale, the clerk issues the certificate. Under Florida practice: the certificate of title: vests title in the purchaser as of the date of filing, eliminates all properly foreclosed interests, and does not provide the same warranties as a warranty deed.
How It's Used in Practice
Attorneys manage the certificate of title process in foreclosures. For purchasers, the attorney: evaluates the title before bidding (identifying any interests that may survive the foreclosure), monitors the objection period (10 days after the sale), obtains the certificate from the clerk, and evaluates the need for title insurance (which may be difficult to obtain for foreclosure-purchased property). For former owners, the attorney: files objections if the sale was improper (fraud, inadequate price, or procedural errors), and negotiates with the purchaser for additional time to vacate. The attorney advises: purchasers at foreclosure sales should conduct thorough due diligence before bidding; the certificate of title does not guarantee clear title.
Key Takeaways
- Certificate of title: issued by clerk after foreclosure sale.
- Transfers ownership; eliminates properly foreclosed interests.
- Issued 10 days after sale if no objections (§45.031).
- Does NOT provide title insurance or warranty.
- Purchaser should evaluate title before bidding.
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Florida Law Reference
Fla. Stat. Ch. 702
Florida is a judicial foreclosure state. This chapter governs the foreclosure process, including notice requirements, sale procedures, and deficiency judgments.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC