Tax Lien University

States › Florida

Florida is a bit unique in that it holds both tax lien sales and tax deed sales. At a tax lien sale bidding begins at 18% and is sold to the bidder willing to accept the lowest rate. The property owner has two years to exercise his or her right to redeem the property. Once the two year redemption period expires the certificate owner must apply for the tax deed. At that point the county will sell the property to the highest bidder at the public tax deed auction.

Tax Sale Type: Tax Lien Certificate (Sec. 197.432 ) and Tax Deed (Sec. 197.502 ).

Contact: Tax collector or treasurer (Sec. 197.332 ).

Interest Rate and/or Penalty Rate: 18% per annum (Sec. 197.172 )

Bid Procedure: Bid down interest rate (Sec. 197.432 ).

Redemption Period: Two years (Sec. 197.502 ).

Law: Florida Statutes, Title XIV, Chapter 197, "Tax Collections, Sales, and Liens."

Additional Notes:

Important: Florida is unique in that no matter what the winning interest rate is, the investor will, at least, receive a 5% penalty.

(2) When a tax certificate is redeemed and the interest earned on the tax certificate is less than 5 percent of the face amount of the certificate, a mandatory charge of 5 percent shall be levied upon the tax certificate. The person redeeming the tax certificate shall pay the interest rate due on the certificate or the 5-percent mandatory charge, whichever is greater (Sec. 197.472 (2) ).

In Florida, once the 2 year redemption period has elapsed and the homeowner had not redeemed, the investor must file an application for the tax deed with the county. Next, the county will attempt to sell the property at the tax deed auction.

The opening bid on an individual certificate on nonhomestead property shall include, in addition to the amount of money paid to the tax collector by the certificateholder at the time of application, the amount required to redeem the applicant's tax certificate and all other costs and fees paid by the applicant. Sec. 197.502 (6)(a) .

The opening bid on property assessed on the latest tax roll as homestead property shall include, in addition to the amount of money required for an opening bid on nonhomestead property, an amount equal to one-half of the latest assessed value of the homestead. Payment of one-half of the assessed value of the homestead property shall not be required if the tax certificate to which the application relates was sold prior to January 1, 1982. Sec. 197.502 (6)(c) .

The money collected from the sale of the property will satisfy the tax lien including interest.

(1) The holder of any tax certificate, other than the county, at any time after 2 years have elapsed since April 1 of the year of issuance of the tax certificate and before the expiration of 7 years from the date of issuance, may file the certificate and an application for a tax deed with the tax collector of the county where the lands described in the certificate are located. The application may be made on the entire parcel of property or any part thereof which is capable of being readily separated from the whole. The tax collector shall be allowed a tax deed application fee of $75 .

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