How a Florida sale really runs

1. Taxes go unpaid, and a certificate is sold.
2. The holder applies for a deed. Clerks describe this as possible between two and seven years after the certificate was bought.
3. The clerk gives notice. Notice runs once a week for four weeks in a local paper, and owners and lienholders are told.
4. The sale. The highest bidder wins.
5. Payment. The high bidder posts a nonrefundable deposit of 5 percent of the bid or $200, whichever is greater, and pays the balance, documentary stamps and recording fees within 24 hours, excluding weekends and legal holidays.
6. The deed. The clerk signs it in the name of the county.

Where the opening bid comes from

Under section 197.542, bidding starts at the amount needed to redeem the certificate, plus what the holder paid the clerk. There's a catch worth knowing: under section 197.502(6)(c), if the property is assessed as homestead, the opening bid also adds half of its latest assessed value. A low opening bid on a house usually means it wasn't homestead.

Redemption can end your win

Under section 197.472, the owner can redeem until a tax deed is issued, and redemption ends once full payment for the deed is made to the clerk. So don't spend a dollar on a parcel until you hold the deed.

If the winner doesn't pay

The clerk cancels all bids and readvertises the sale, and the deposit is gone. That's why a bid you can't fund is the most expensive mistake on this list.

Check yourself

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