Question 1

How do Florida tax lien certificates work specifically?

Accepted Answer

FL specifics: the county tax collector conducts the annual tax certificate sale (June 1 or soon after; Section 197.432), the sale is conducted online (most counties use an online auction platform), investors bid interest rates down from 18% (the lowest rate wins), the minimum bid is the delinquent taxes plus fees, and the certificate is issued to the winning bidder. Certificate lifecycle: the certificate accrues interest, the property owner can redeem at any time (paying principal + interest + fees), if not redeemed by the end of year 2: the holder can apply for a tax deed (Section 197.502), and if not redeemed by year 7: the certificate expires and is worthless.

Question 2

What is the tax certificate redemption process in Florida?

Accepted Answer

Redemption: the property owner contacts the county tax collector, the tax collector calculates the redemption amount (certificate face value + interest at the bid rate + advertising and processing fees), the owner pays the full redemption amount, and the certificate is redeemed (the investor receives their payment through the tax collector). Partial redemption: is not available (the owner must redeem the entire certificate). If there are multiple certificates: each must be redeemed separately. The owner can redeem at any time: from the date of issuance until the clerk issues the tax deed.

Question 3

What happens when a Florida tax certificate expires?

Accepted Answer

Expiration: if the certificate holder does not apply for a tax deed within 7 years of issuance: the certificate expires (Section 197.482). The certificate becomes worthless (the investor loses their entire investment). The property owner: still owes the delinquent taxes (a new certificate will be issued at the next annual sale). The investor: cannot recover the expired certificate amount. Best practice: investors should track their certificates and apply for a tax deed before the 7-year expiration (or sell the certificate to another investor before it expires).

Tax Lien Certificate: in Florida

Florida Tax Lien Certificates

FL Specifics

Lifecycle

Redemption

Related Terms

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