Delinquent Real Estate Taxes
Real estate taxes become delinquent on April 1st each year. Florida Statutes require the Tax Collector to advertise the delinquent parcels in a local newspaper once a week for three consecutive weeks following the payment deadline. Advertising and collection fees are added to the delinquent taxpayer's bill.
Beginning on or before June 1st, the Tax Collector is required by law to hold a Tax Certificate Sale. The certificates represent liens on all unpaid real estate properties. The sale allows citizens to buy certificates by paying off the owed tax debt. The sale is conducted in reverse auction style with participants bidding downward on interest rates starting at 18%. The certificate is awarded to the lowest bidder.
A tax certificate, when purchased, becomes an enforceable first lien against the real estate. The certificate holder is actually paying the taxes for a property owner in exchange for a competitive bid rate of return on his investment. In order to remove the lien, the property owner must pay the Tax Collector all delinquent taxes plus accrued interest, penalties and advertising fees. The Tax Collector then notifies the certificate holder of any certificates redeemed and a redemption check is then issued to the certificate holder. All delinquent taxes must be paid in certified funds. Only cashiers checks, money orders, or cash will be accepted as payment for delinquent taxes.
A tax certificate is valid for seven years from the date of issuance. The holder may apply for a tax deed when two or more years have elapsed since the date of delinquency. If the property owner fails to pay the tax debt, the property tax deed is sold at public auction.
Tax Certificate Q&A
What is a Tax Certificate?
A tax certificate represents a lien on real property and bears interest at a maximum rate of 18% per year. The cost to purchase a certificate is listed beside each parcel in the delinquent advertisement, and includes gross tax, interest, advertising cost and the cost of the Tax Certificate Sale.
What is a Tax Certificate Sale?
On the advertised day and time, the Tax Collector auctions and sells a tax certificate on each delinquent parcel. Since the taxes on some parcels will have been paid prior to the sale, those parcels that appeared in the newspaper advertisement will be skipped. Bidding begins at 18% and the certificate is sold to the person bidding the LOWEST annual interest rate.
What is an Internet auction?
An auction in which bids are transmitted and received through the Internet at https://lienhub.com/county/charlotte.
How does the bidding proceed?
Each parcel is auctioned in the order listed in the advertisement. The bidder begins at 18%(the maximum rate) and is bid down. The winning bidder’s number and rate of interest bid are recorded. Any item not bid on is struck to the County. At this time we encourage you to remember certificates with a 0% bid interest rate WILL NOT accrue interest.
What if there are no bidders?
If there are no bidders for a certificate, it is issued to the County at 18% interest.
How are tax certificates redeemed?
In order to clear the tax property of the tax certificate lien, the property owner must pay the amount of the tax certificate plus the rate of interest at which the certificate was sold, calculated from the month of the sale to the month of the redemption with a 5% minimum unless the bid was 0%. If the bid was 0%, there will be NO interest accrued. When a tax certificate is redeemed, on or after June 1, a $6.25 redemption fee is also charged. After redemption, the certificate holder receives the amount invested plus interest. Please note that interest earned is taxable and must be reported to the IRS. Each January, an IRS 1099-INT form is sent to each certificate holder for earnings in the previous year.
What if the certificate is not redeemed?
If the certificate is not redeemed within two years from the date the tax became delinquent, the certificate holder may apply for a tax deed, and bring the land to sale at a public auction. Example: 2006 taxes became delinquent April 1, 2007; therefore, a tax deed application may be made after April 1, 2009. A certificate holder who wishes to apply for a tax deed must redeem all the other certificates and pay other fees as mandated by state law.
Can a property owner stop a land sale?
Yes. The owner of the property can prevent the loss of the land by paying all accrued taxes, costs, and interest at any time before the tax deed is issued.
What is the life of a tax certificate?
The life of a tax certificate is seven years from the date of issuance. If the certificate holder does not apply for a tax deed within the seven years, the certificate is null and void.
Is this a risk free investment?
No, although a secure investment in most cases, as with any investment, there is an element of risk. There are three possible risks to consider:
- If there is a correction to the original taxes levied which would decrease the certificate value or cancel the certificate, the law provides for the portion in error to be refunded to the certificate holder with 8% interest or rate of interest bid, whichever is less, per annum calculated monthly to the date of cancellation or correction.
- If the property value drops significantly in subsequent tax years, it may cost more to bring the property to sale than the value gained by owning the property.
- If the landowner enters into bankruptcy, the certificate holder is prevented from enforcing the lien until the bankruptcy is released. In one instance, the bankruptcy court lowered the interest rate and ordered payments to be made over a five year period.
Are the County's certificates available for purchase?
Yes, County held certificates are available for purchase on Lien Hub. When someone buys a county certificate, the lien is transferred to the buyer. The purchase price is the amount of the original certificate plus interest due to the date of purchase, plus $6.25 administrative fee. The interest rate of the purchased certificate is 18%.
How do I become a bidder?
Beginning in May bidders may register online at https://lienhub.com/county/charlotte. A registration form must be completed online for each bidder, with name, address, phone number, and tax-payer identification or social security number.
If you have any additional questions please call (941)743-1350.
We are here to help.
Tax Deed Sale Q&A
Florida Statutes provide that the Clerk of the Circuit Court is responsible for the administration of tax deed sales.
How can a tax certificate be brought to sale?
If a certificate is not redeemed within two years from the date the taxes became delinquent; the certificate holder may apply for a tax deed, and bring the land to sale at a public auction. Example 2011 taxes are delinquent April 1, 2012; therefore, a tax deed application may be made after April 1, 2014. A certificate holder who wishes to apply for a tax deed must redeem all other certificates and pay other fees as mandated by state law.
What is a tax deed sale?
A tax deed sale is the sale of property at public auction for back taxes and fees associated with bringing the property to sale.
Who can bid on a Tax Deed?
Anyone may bid on the property and it is sold to the highest bidder.
How do I purchase a tax deed property at a tax deed sale?
Online Tax Deed Sales are being held at the Clerk of the Court’s online auction website. Prior to bidding on Tax Deeds, you must first register at the website. For more information regarding the online sale, please visit the Clerk of Court’s main website at https://charlotteclerk.com/.
How is the starting bid obtained?
The starting bid, otherwise called base bid, is calculated from the following charges:
| • | Tax Collector Fee* | $75.00 | |
| • | Taxes and Interest | Varies | |
| • | Ownership and Encumbrance Report* | $125.00 | |
| • | Clerk's Statutory Fee* | $60.00 | |
| • | Web Fee* | $59.00 | |
| • | Advertising Charge* | Varies | |
| • | Postage** | Varies | |
| • | Sheriff's Fee** | $40.00 per person served | |
| • | Additional Interest | 1.5% per month figure above | |
| • | 1/2 Assessed Value | Varies | |
| • | Starting Bid | Total of Above |
* These fees are fixed fees for each property
** These fees depend on the number of individuals to be notified.
Is the owner of the property sent a notice that the property is being sold?
Yes. Florida Statute 197.522 requires the Clerk of the Circuit Court to send a notice to the owner of record and any lienholder of record.
- A notice of Application for Tax Deed, which states the date and time of the sale and the amount due to redeem the property is mailed.
- If the owner resides in the State of Florida, the sheriff of the county where the owner resides attempts service of a Notice of application for tax deed to the owner.
- The Notice of Application is published once each week for four consecutive weeks at weekly intervals in a newspaper selected as provided in Florida Statute 197.402. No tax deed sale shall be held until 30 days after the first publication of the notice.
What happens if I am the high bidder?
The total amount bid, plus recording fees, must be paid to the Clerk of the Courts office. Once all fees have been paid, a Tax Deed is issued and recorded in the name you request for the property on which you were the high bidder. According to Florida Statute 197.562, “Any person, firm, corporation, or county that is the grantee of any tax deed under this law shall be entitled to the immediate possession of the lands described in the deed.”
Can a tax deed sale be stopped?
Yes. According to Florida Statute 197.422, tax deed property may be redeemed anytime prior to the recording of the tax deed if all back taxes and fees are paid to the Tax Collector.
Do liens survive the issuance of a tax deed?
You may wish to consult your attorney. Florida Statute 197.552 provides, in part, “..except as specifically provided in this chapter, no right, interest, restriction, or other covenant shall survive the issuance of a tax deed, except that a lien of record held by a municipal or county government unit, when such lien is not satisfied as of the disbursement of proceeds of sale under the provisions of Statute 197.582, shall survive the issuance of a tax deed…”
Now that I have a tax deed, what must I do?
There may be additional processes that are necessary in order to obtain marketable title. However, this question cannot be answered by the Tax Collectors Office. You may wish to contact your attorney for further information.
What happens when there are no bidders at the county tax deed sale?
The property goes on the list of “Lands Available for Taxes” pursuant to Florida Statute 197.502. The 1999 Legislature amended the process for obtaining tax deeds for the real property by holders of tax sale certificates, section 197.502, Florida Statutes, effective May 26, 1999. See Chapter 99-190, Laws of Florida (see Senate Bill 1534, sections 3-5). As described below, portions of this law apply only to property that is on the list of lands available for taxes upon which there are no outstanding tax sale certificates that were issued prior to July 1, 1999 (see Senate Bill 1534, section 8).
This new law changes the start date for determining the 90 day period during which the county may purchase land from the list of lands available for taxes. Under prior law, this 90 day period began the day after the public sale. Under the new law, this 90 day period begins when the land is placed on the list of lands available for taxes.
This new law changes the period of time before land will escheat to the county, from seven years from the day the land is offered for public sale to three years from the day the land is offered for public sale. See section 197.502 (8), Florida Statutes (1999).
For further questions regarding the Tax Deed Application process contact the Tax Collector's Office at (941) 743-1350. For further questions regarding the Tax Deed Sale such as bidding, what's available and what is required please contact the Clerk of Court's Office at (941) 637-2130.
Delinquent Tax Forms and Files
Lands Available
Property that is offered at the County Tax Deed Sale that no one has bid against will be placed on the List of Lands Available. In order to purchase any of these parcels you must pay the original bid, any additional years taxes, and the Clerk of Court fees. For tax information, please contact our office at (941)743-1350. For Clerk of the Courts fees and information please call (941)637-2130. This is NOT a risk free investment. Be careful and check out the property before you invest any money.- Lands Available Listing
Please Contact the Clerk of Courts Office - County Held Certificates
A list of all county held certificates can be found at http://Charlotte.LienExpress.net/ - Certificate Search - Delinquent Taxes
Instructions: Click on the above link. Highlight "Certificate Search" on the left hand side and then click "View Selected Report". You will then need to specify the Year you are searching for by entering it into the box under "Year". Then click the "Search" button towards the right side of the screen to run the report.
Please note: You will see the icon on the left hand side of the screen while the report is loading. The report may take some time to load, depending on your Internet connection.
Download Instructions: The file can be downloaded in a number of formats by clicking one of the icons on the right hand side of the page beside the word "download"
- Tax Deed Search
From Clerk of Court's Website - Bidder Registration Form
For Tax Certificate Sale Only
Please print the form, fill it out, and either mail or fax it to (941)743-1364
- Certificate Transfer Form
Certificates may be transferred. There is a $2.25 transfer fee per certificate. The certificate transfer form must be filled out properly and notarized. You must have a valid bidder number. To obtain a bidder number, please register with the Bidder Registration Form.
Other Delinquent Tax Links
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Lien Hub
-LienAuction - Bid on Tax Liens
-LienExpress - Purchase County Held Tax Liens
-DeedExpress - View your Portfolio