Tax Lien Certificates
Tax lien certificate: investor purchases tax lien at auction (Section 197.432). Pays delinquent taxes; receives certificate with interest (max 18%, competitive: often 0-5%). Owner redeems: investor gets principal + interest. vs. tax deed: certificate = lien only; deed = property ownership. If not redeemed (2+ years): apply for tax deed sale. 5% minimum return if redeemed in first year (Section 197.432(13)). Most certificates redeemed.
How It Works
- Investor pays delinquent taxes
- Receives certificate with interest
- Max 18%, competitive: 0-5%
vs. Tax Deed
- Certificate: lien only
- Deed: property ownership
- Certificate first, then deed if unredeemed
Returns
- Competitive rates: 0-5% common
- 5% minimum first year
- Most redeemed by owner
Related Terms
- Tax Deed — Property sale
Barnes Walker Real Estate
Barnes Walker’s attorneys advise on tax lien certificates in Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC