Everyone in the state of FL is required to pay taxes on their property on an annual basis to the County Tax Collector. When they fail to do so, they risk having their home taken from them and auctioned off in a tax deed sale. Tax deed sales tend to attract investors as they are often able to purchase a piece of property for much less than they normally would.
Now, if you are an investor or have recently learned about tax deed sales but would like to learn a little more about how they work, read on below as we are going to address a few important things relating to tax deed sales in FL. You can also contact a Fort Lauderdale, FL real estate lawyer who would be more than happy to sit down with you and explain in depth why you might consider purchasing a property through a tax deed sale.
How does a tax deed sale work?
As mentioned, when a property owner fails to pay their taxes, they risk losing their home in a public auction. If their home is placed up for auction in a tax deed sale, they do have the option of buying it back given they fulfill the requirements to do so. Now, when you decide that you want to get in on the bidding on a property, there are a few things you will need to do.In order to gain access to the bidding platform, you first need to register online at https://broward.deedauction.net.
Once you do this, you will then need to satisfy the deposit requirements. Broward County’s Records, Taxes, and Treasury Division says that “all bidders must post with the County a deposit equal to the greater of five percent of their anticipated final bid or $200.00.”
When is the tax deed issued and how will it be sent to me?
According to the Broward County’s Records, Taxes, and Treasury Division, once you make the final payment for your tax deed sale, “the Tax Collector will issue and record a tax deed to the successful bidder. The original tax deed will be mailed via first class mail, U.S. Postal Service to the successful bidder at his/her address as shown in the Tax Deed within 10 business days following the sale date.” This can be extremely beneficial to investors as they are able to begin working on their projects rather quickly.
Now, in the event the property is redeemed prior to the tax deed being issued, the bidder’s deposit account will be automatically credited.
What if there is a lien on the property?
According to Broward County’s Records, Taxes, and Treasury Division, “some liens may be dischargeable and others may not.” Now, because tax and property laws can be rather complex and difficult to understand, it is important that you do your research prior to bidding on a tax deed so that you know what you are getting yourself into before committing to the purchase. You can also speak with a reputable FL tax attorney should you have a specific question you need addressed.
There is plenty more to learn about tax deed sales and while there are various county websites that can provide you with helpful information, none can provide you with the advice and guidance a real estate lawyer can. With that said, if you wish to learn more about tax deeds, have a question about a property you recently purchased, or have run into some issues, contact the Fort Lauderdale, FL real estate lawyers today.