Question 1

What is a tax deed in Florida?

Accepted Answer

A FL tax deed is a deed issued by the county to a purchaser at a tax deed sale. The tax deed sale occurs when: a tax certificate has been outstanding for at least 2 years (Section 197.502), the certificate holder applies for a tax deed, and the property owner fails to redeem the certificate. The county: conducts a public auction, the highest bidder receives the tax deed, and the tax deed: conveys the property free and clear of most liens (except: certain governmental liens and assessments that survive the tax deed sale).

Question 2

What is the tax deed sale process in Florida?

Accepted Answer

Process: the certificate holder applies for a tax deed (Section 197.502; pays the application fee and costs), the clerk of court publishes notice of the sale (in a local newspaper; notice is also sent to the property owner and lienholders), the sale is conducted by the clerk (online or in person; minimum bid: the amount of all outstanding taxes, costs, and fees), the highest bidder wins (the bidder pays the full amount within 24 hours), and the clerk issues the tax deed. If no one bids: the certificate holder may take the property for the minimum bid. Surplus: if the sale price exceeds the minimum bid: the surplus is held by the clerk and may be claimed by the former owner or lienholders (Section 197.582).

Question 3

What title does a tax deed convey in Florida?

Accepted Answer

Title: a FL tax deed conveys marketable title (Section 197.573), but: title insurance companies may not insure the title without additional action. Common issues: the tax deed may be challenged (the former owner or lienholders may file a lawsuit to contest the sale within 1 year; Section 197.573(2)), and some liens survive (CDD assessments, municipal liens, and certain governmental obligations). Best practice: the tax deed buyer should: obtain a quiet title judgment (Chapter 65) to clear any potential challenges, purchase title insurance after the quiet title action, and conduct due diligence on the property before bidding.

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Tax Deeds in Florida

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