tax deed sale process

Tax Deed Sale ProcessLee County Clerk of Courts

Overview

• Process Flow

• Identifying Some of the Risks

• Redemption

• Application for Tax Deed

• Preparation for Sale

• Auction Listings

• Research

• Bid

• After the Sale

Identifying Risk

Purchasing tax deed property is not a risk-free investment. Buyers should become familiar with the process, learn how to identify risks involved, and assess their own risk tolerance.

Redemption

Tax Deed Sale process can be stopped any time by payment of outstanding amounts:

• Certificates associated with application

• Tax collector fees

• Clerk fees

• Costs incurred for sale process

• Interest to certificate holder

Tax Deed Application

Tax Collector delivers to Clerk:

• Certification

• Applicant (certificate holder applying for tax deed)

• Property to be auctioned

• Certificates associated with application

• Statement of amounts

• Application signed by certificate holder

• Applicant’s deposit of $600

Tax Deed Application

Tax Collector delivers to Clerk:

• Ownership and Encumbrance Report

• Prepared by title company contracted by Tax Collector

• Property information

• Owner names and addresses

• Lienholders

• Interested parties

• Copies of pertinent records

Preparation for Sale

Clerk begins preparing for sale:

• Parties are selected for notice

• Certified Mail

• Sheriff’s Service

• Sale date is selected

• Opening Bid amount is calculated

• Publication in newspaper

• Case is transmitted to auction website

Auction Listings

Research

Case detail provided on the auction site is for informational purposes :

• to identify the property being sold, and

• to show the parties receiving notices of tax deed sale.

Prospective buyers should conduct further research to ensure they are aware of liens, defects in title, or other issues that may affect the title or

the purchaser of a tax deed.

Research

Some tools for research are:

• Real estate professional

• Clerk’s Official Records – www.leeclerk.org

• Property Appraiser’s Website – www.leepa.org

Bid

Bid

To place a bid on a tax deed auction:

• Register as a user on auction site:

• Deposit funds into bidder account (minimum deposit greater of $200.00 or 5% of bid)

• Place proxy bid

Bid

• If not the winning bidder, deposit can be used on another case or refunded upon request.

• If winning bidder, make full payment by 1:00PM on the day after sale.

• If final payment not received in time, bid is cancelled, and deposit is forfeited.

After the Sale

• Tax Deed is recorded after receipt of final payment.

• Proof of Publication and Certificate of Mailing are also recorded, marking the end of the tax deed sale process.

• Clerk cannot provide assistance with post-sale concerns like taking possession of property, etc.

• Many purchasers file quiet title action in court.

• Possibility of Voiding Sale

After the Sale

Amount of winning bid that exceeds opening bid and fees is considered surplus, to be disbursed by Clerk according to priorities:

1. Government agencies with liens on property

2. Mortgage holders/lienholders

3. Previous owner/beneficiary/heir

4. State of Florida Department of Financial Services – Unclaimed Property Division

ResourcesTax Deed Sales Rules, Official Records, Court

Records, and Contact Information:

Resources

Tax Deed Sales Rules, Official Records, Court Records, and Contact Information:

www.leeclerk.org

Auction website: www.lee.realtaxdeed.com

Property Appraiser: www.leepa.org

Unclaimed Funds: www.fltreasurehunt.org