If you’re a savvy real estate investor, there’s a game-changing strategy you might not be leveraging yet: Tax Deeds. Florida, known for its lack of individual income tax, relies heavily on real property taxes for revenue. This opens up a unique opportunity for investors willing to explore the world of Tax Deeds.
Understanding the Tax Deed Process
When property owners fail to pay their property taxes by the March 31st deadline, their properties become delinquent. To recoup these unpaid taxes, Florida conducts Tax Certificate sales. These sales are public auctions where individuals can pay off the delinquent taxes and receive a fixed rate of return along with a Tax Certificate.
After holding a Tax Certificate for at least two years, you can petition the Clerk of Court to hold a Tax Deed sale. To do this, you must clear any outstanding certificates and cover the Clerk’s administrative sale fees. The Tax Collector compiles a list of title holders, lien holders, and other involved parties for notice.
Ensuring Due Process: A Vital Step
To satisfy due process requirements, the Clerk takes several crucial steps. This includes posting notices on the property (if there’s a physical structure), sending certified mail notices to the last property owner’s address, notifying lien holders, and publishing a Tax Deed sale notice in a local newspaper for two consecutive weeks. Additionally, regular USPS mailings follow if certified notices return as undeliverable.
The Tax Deed auction is open to the public and conducted online, usually one to four times a month depending on the county. The winning bidder must pay in cash within 24 hours, and upon payment, the Clerk issues a Tax Deed.
Unlocking the Full Potential: Quiet Title Action
To sell a property acquired through a Tax Deed or use it as collateral for a loan, you’ll need approval from title insurance underwriters. They typically require you to hold the property for at least four years or initiate a Quiet Title action in the local circuit court.
A Quiet Title action serves multiple purposes. It confirms the due process notice requirements set by the Clerk and Tax Collector and ensures that the sale was not accidental if any noticed parties paid the owed taxes before the sale. Additionally, Quiet Title cases can address discrepancies or errors in legal descriptions, handle wild deeds or mortgages, and address mobile home transfers on the purchased land. One significant advantage of Tax Deed Quiet Title suits is that they extinguish private liens such as mortgages, credit card debts, or homeowner’s association fees as soon as the Tax Deed is issued.
Seize the Opportunity
Investing in Tax Deeds can be a game-changer for your real estate portfolio. To delve deeper into this lucrative strategy and learn how it can grow your investments, reach out to us at clientcare@lcolawfl.com. You’ll soon find yourself wondering, “Why didn’t I explore this sooner?”