A Tax Deed Sale occurs when property taxes remain unpaid for a significant period, typically two years in Florida, triggering the county to auction the property to recover the taxes. When an owner fails to pay, the county issues a tax certificate, and if that certificate remains unpaid, the holder of the certificate can apply for a tax deed, leading to a public auction.
How It Applies to Florida Landlords
For investors, tax deed sales represent an opportunity to purchase real estate at a significant discount. However, it is a high-risk endeavor; the purchaser of a tax deed takes the property subject to certain liens and must often initiate a quiet title action to ensure clear ownership. Furthermore, if a landlord’s rental property is subject to a tax deed sale because they failed to pay taxes, they risk losing the property entirely, along with any existing leases or tenant deposits held within that property.
Key Takeaways
- Properties are sold 'as-is' with no warranties.
- Quiet title actions are often necessary to clear the title.
- Liens may survive the sale, complicating the investment.
- Florida tax deed auctions are strictly regulated by the county clerk's office.