TAX DEED STATE PROFILE ~ FLORIDA
Tax Deed Sales: Yes. These sales are handled by the Clerk of Circuit Court in most counties. Application for a tax deed sale is made at the Tax Collector’s Office.
Over-the-Counter Tax Deed Sales: Yes. A property that does not sell at the tax deed sale is placed on the "List of Lands Available for Taxes." After 90 days from the sale date, anyone can purchase property off the "List of Lands Available for Taxes." These sales are handled by the Clerk of Circuit Court in most counties.
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Sale Period: According to state law, tax lien sales must occur on or before June 1st. Tax lien sales are held in April and May in most counties. Tax deed sales are held throughout the year. Some counties hold tax deed sales every week.
Redemption Period: 2 years for tax liens. No extended right of redemption following the tax deed sale.
Bidding Process: Bidding at tax lien sales is by competitive bid, with the winning bidder accepting the lowest interest rate. Bids go in quarter percentage increments; for example, 17¾% followed by 17 ½%. Bidding can proceed downward to as low as ¼% and the bidder still receives a minimum of 5% interest. If the bidder chooses to bid down to zero percent interest, the bidder will not earn the minimum 5%. Tax deeds are offered through competitive bid to the highest bidder. Homestead properties are sold for a minimum bid of one half of their assessed value.
State-Specific Information: Florida is probably one of the most famous tax lien states because the interest rate of 18% per year is favorable and, if the property goes to foreclosure, the redemption period of 2 years is short. Florida also has a favorable tax deed process, allowing the investor to obtain deed to the property without a legal challenge period.
If the tax certificate is not redeemed, the certificate holder cannot institute foreclosure and receive the deed; rather, a public deed sale must occur. The tax deed is sold to the highest bidder. If the tax lien holder is not the highest bidder at the tax deed sale, he/she will receive their investment back with interest.
Florida also has some restrictions regarding the number of lots an individual investor can own without being registered as a developer. An individual who is not a developer is allowed to buy a tax deed for only one lot in a planned subdivision for the purpose of resale (section 498.025[1a], Florida Statutes).
A seller of lots in property subdivided or proposed to be subdivided into 50 lots or more is required to be registered with the Department of Business and ProfessionalRegulation, Division of Florida Land Sales, Condominiums, and Mobile Homes.
Also, if a certificate holder purchases 5 certificates in subdivision that contains 25 or more lots, and eventually obtained 5 tax deeds, he would be subject to the provisions of section 498.022, Florida Statutes, regarding standards for transacting land sales. Therefore, it is recommended that, when purchasing certificates on lots or parcels in a subdivision, the Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums, and Mobile Homes be contacted at (850) 488-1631.
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