– Tax deed transfers real property title due to nonpayment of property taxes.
– Florida law, specifically Chapter 197 of Florida Statutes, governs tax collection, tax deed sales and tax liens.
– Delinquent real property taxes are due on November 1st, and become delinquent by April 1st of the following year.
– The tax collector must provide documentation of unpaid taxes after April 30th, leading to potential sale of the property.
– A tax certificate is a legal document illustrating unpaid taxes, creating a first lien superior to other liens.
– Tax certificate holders can apply for a tax deed after two years from the date of issuance of the tax certificate, but before the seven-year expiration.
– The application requires payment of all outstanding taxes, interest, and fees to the tax collector.
– The tax collector then certifies and delivers a statement to the circuit court and notifies legal titleholders, lien holders, mortgagees, and vendees. – Tax deed auctions for real property are held by the clerk of court in the county where the property is located.
– The auction date and time are published, and the property is sold to the highest bidder.
– The tax deed must be issued in the name of the county, signed by the clerk, and have two witnesses and an official seal.
– Once a tax deed is issued, most rights, interests, restrictions, or covenants do not survive, except for a lien of record held by a county government or municipality.
– Successful bidders obtain the tax deed with an 18% per year interest and a 5% return on the property.
– If the bidder is not successful, all deposits and funds given for the tax certificate and application will be returned.
– There is a risk that the original taxpayer can pay the delinquent tax and retain ownership.
– A prepared and informed potential tax deed purchaser can obtain clean title and ownership of the property if the current owner fails to pay the property taxes.
https://www.jimersonfirm.com/blog/2011/12/basic-considerations-for-tax-deeds-in-florida/
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