Florida Tax Lien Certificates: How the Sale Works
By Israel Chen ·
Short answer: Florida Tax Collectors sell tax certificates at an auction where bidders compete by demanding the lowest interest, in quarter-percent steps. If the owner redeems, you get your money back with interest, with a 5% minimum unless you bid 0%. The certificate isn't the property.
How the sale works (s. 197.432)
- Each certificate goes to the bidder who will pay the taxes and costs and demand the lowest rate of interest.
- Bids move in quarter-percent steps.
- Sales may run online and may allow proxy bidding.
- The Tax Collector may require a deposit, and payment is due within 48 hours of notice.
- Unsold certificates go to the county at the maximum rate.
What you earn (s. 197.472)
The person redeeming pays the face amount plus interest and costs. If the interest would be under 5% of the face amount, a 5% minimum applies, except on certificates with a 0% bid.
Certificates or deeds?
Certificates pay interest. Deeds get you land. I work on the deed side. See the comparison.
Questions
What is the minimum return on a Florida tax certificate?
A 5% minimum applies when interest would be lower, except on certificates bid at 0%.
Sources
Israel Chen buys Florida tax deeds, mostly in Volusia County. MBA, second-year law student (not a lawyer) and computer scientist. About me.
Next: the Florida guide, the Volusia guide, the glossary, or work with me. Not legal, tax or investment advice.