Buying Property from Tax Deed Sales

General Information Sheet

THIS BROCHURE IS FOR GENERAL INFORMATION PURPOSES ONLY. IT IS NOT TO BE TAKEN AS ADVICE OR USED AS GUIDELINES OF ANY KIND. FOR COMPLETE INFORMATION REGARDING TAX COLLECTION, SALES, AND LIENS REFER TO THE FLORIDA STATUTES CHAPTER 197

Questions and Answers

1. WHAT ARE TAX CERTIFICATES?

The Tax Collector offers tax certificates as a means to collect County ad valorem taxes on property having delinquent tax bills. A portion of the cost of the tax certificate is used to pay delinquent property taxes. The purchaser earns a bid rate of interest on the tax certificate. For further explanation, see the tax collector, Suzanne Johnston, who is located on the 1st floor of the Flagler County Government Services Building, or refer to Florida Statutes, Chapter 197.

2. IF I HAVE PURCHASED TAX CERTIFICATES HOW DO I BRING THE PROPERTY TO SALE?

The process for bringing the property to sale begins with at least two years passing from the date a certificate is sold. The formal procedure starts in the office of the Flagler County Tax Collector. The Tax Collector will lead you through the process and advise you of what is required. Tax Certificate holders are advised that if they elect to bring the property to sale, they will be required to pay all outstanding certificates plus delinquent taxes as a pre-requisite to the sale process commencing. Also, the tax certificate holder should understand that requesting the property to be sold carries with it the understanding that the certificate holder will be satisfied with receiving a deed to the property, if there are no other bidders in exchange for the amount paid and advanced by the certificate holder. Therefore it is recommended that the tax certificate holder consider the financial investment being made in bringing the property to sale and the possible outcome of becoming the tax deed recipient before commencing these procedures. Tax deed certificate holders are also reminded that after 7 years their tax certificates are cancelled if not redeemed or if the property is not put up for sale

3. HOW IS THE AMOUNT OF THE OPEN BID DETERMINED?

If the property is not homestead property the amount of the opening bid equals the total amount paid to the Tax Collector, added to the total amount paid to the Clerk of Court, plus any interest, which has been earned on the tax certificate. If the property is homestead property, the opening bid shall be a sum of money equal to one half of the assessed value of the property plus an amount equal to the sum required to pay all the outstanding taxes, interest thereon, plus all costs and fees related to said sale.

4. HOW IS THE DATE OF THE TAX DEED SALE DETERMINED?

The date of a tax deed sale is determined by the time it takes to process the tax certificates, which have been received for sale by the Clerk of Court. After the Clerk's Office receives the certificates from the certificate holders, and all required fees have been paid to the Clerk, it takes approximately 2 to 3 months to process for sale.

5. WHAT ABOUT LIENS AGAINST THE PROPERTY?

Some liens are dischargeable and others are not. It is best to seek legal advice before making a bid. For further information regarding liens, see Florida Statutes, Chapter 197.

6. WHAT HAPPENS IF AT THE TAX DEED SALE I AM AWARDED THE HIGHEST BID ON THE PROPERTY?

At the time you are awarded the highest bid, a $200.00 deposit is due immediately and the balance is due by 9:00 am the following day.

7. ARE PERSONAL CHECKS ACCEPTED?

No. We require cash, certified check, cashier's check or money order.

8. HOW LONG DOES IT TAKE TO RECEIVE THE TAX DEED?

Once the Clerk's Office receives payment in full for the property, we prepare the tax deed and it is sent to the Recording Department. The Recording Department records the deed in the Official Records of the County and returns the Deed to the Tax Deed Clerk. The Tax Deed Clerk then mails the tax deed to the purchaser.

9. CAN I BUILD ON THE PROPERTY OR SELL IT?

Title obtained by a tax deed is not generally acceptable and contains certain risks. It is best to consult an attorney or title insurance company regarding what steps should be taken before you build on or sell the property, even though the property is recorded in your name as the tax deed purchaser.

10. CAN THE FORMER PROPERTY OWNER GET THE PROPERTY BACK EVEN AFTER IT IS SOLD AT A TAX DEED SALE?

The short answer is yes. As with anything the purchaser of a tax deed should have a "buyer beware" attitude. If the former owner should dispute the sale and takes the case to court, the judge will decide the ownership of the property. It is best to consult an attorney regarding purchase of any property.

Buyer's Due Diligence

It is wise to check the property thoroughly prior to sale, to know exactly what you are getting. Tax Deeds are one of the few types of deeds that the old principal of "buyer beware" still apply to. There are no warranties or representations made by the clerk as to the quality or character of the title you receive. Such matters as access to the property, zoning, and whether the lot is a buildable lot are outside the scope of the duties and responsibilities of the Clerk. These matters as well as many others are issues that the high bidder accepts responsibility for and the obligation to resolve and are not considered or the duty of the Clerk to resolve, investigate, or determine.

If you have any questions, please contact:

Tax Deed Department
386-313-4375
taxdeeds@flaglerclerk.com

 

Ground Rules for Tax Deed Sale

Per Florida Statute 197.542

1. Bidding starts at the amount needed to pay the outstanding taxes, interest thereon, plus all costs related to said sale. If there are no higher bids, the land shall be struck off and sold to the certificate holder, who shall forthwith pay to the Clerk the documentary stamp tax and recording fees due, and a tax deed shall thereupon be issued and recorded by the Clerk.
2. The high bidder shall post with the Clerk a non-refundable cash deposit of $200 at the time of the sale, to be applied to the sale price at the time of full payment.
3. The Clerk shall refuse to recognize the bid of any person who has previously bid and refused, for any reason, to honor such bid.
4. If full payment of the final bid and of documentary stamp tax and recording fees is not is not made within 24 hours, excluding weekends and legal holidays, the Clerk shall cancel all bids, readvertise the sale as provided in this section, and pay all costs of the sale from the deposit. Any remaining funds must be applied toward the opening bid.
5. Payment must be made in the form of a cashiers check, certified check, money order, or cash - personal checks or business checks will not be accepted.
6. Valid Photo ID will be required for all bidders.
7. If these requirements are not met, the sale will be rescheduled no later than 30 days from the original sale date and will be published in the following Wednesday's Issue of the Flagler-Palm Coast News Tribune.

 

Tax Deed Sales

Disclaimer

The Flagler Recording Department presents the information on this web site as a service to the public. We have tried to ensure that the information contained in this electronic search system is accurate. Flagler County Recording Department makes no warranty or guarantee concerning the accuracy or reliability of the content at this site or at other sites to which we link. Assessing accuracy and reliability of information is the responsibility of the user. The user is advised to search on all possible spelling variations of proper names, in order to maximize search results.

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Tax Deed Sales begin promptly at 9:00 am in the Recording Department lobby.

 

July 14, 2009