Tax Deed Sale Process. Lee County Clerk of Courts

Transcription

1 Tax Deed Sale Process Lee County Clerk of Courts

2 Agenda Risks & Disclaimers Process Flow Application for Tax Deed Preparation for Sale Redemption Auction Listings Research Bid After the Sale

3 Scope of this Presentation Provide overview of the tax deed sale process Identify requirements of participation Explain how to participate

4 Scope of this Presentation Exceptions and variations can exist at every step of this process. This presentation covers the general, normal flow of the process. A tax deed file may have or be affected by situations not covered by this presentation.

5 Disclaimer Employees of the Clerk are not authorized to give legal advice. This presentation is an overview and discussion of the process not legal or investment advice.

6 Identifying Risk Purchasing tax deed property is not a risk-free investment. Buyers should become familiar with the process, learn how to identify risks involved, and assess their own risk tolerance.

7 Process Flow Property Value Determined Tax Certificate Sale Held Tax Deed Application Filed Tax Notices Mailed Unpaid Taxes Delinquent April 1 Tax Deed Auction Held

8 Tax Deed Application Tax Collector delivers to Clerk: Certification Applicant Name Associated Certificates Property to be auctioned Statement of amounts Signed Application Applicant s Deposit

9 Tax Deed Application Tax Collector delivers to Clerk: Ownership and Encumbrance Report Prepared by title company Property information Owner names and addresses Lienholders Interested parties Copies of pertinent records

10 Preparation for Sale Clerk begins preparing for sale: Parties are selected for notice Owners Lienholders Interested Parties Government Agencies (with liens)

11 Scheduling for Sale Sale date selected Opening Bid calculated Notices sent Publication in newspaper Sheriff s service Certified/Registered Mail Courtesy postcard Case documents available in RealTDM Case transmitted to auction website

12 Redemption Tax Deed Sale process can be stopped any time by payment of outstanding amounts: Certificates associated with application + Tax collector fees + Clerk fees + Costs incurred for sale process + Interest to certificate holder. Redemption Amount

13 Documents and Sale Info Three Sites for Tax Deed Information: Clerk s website Information about the process and office Links to other sites Realauction Auction calendar Bidder account login Manage bidder & deed information Place bids Make payment RealTDM Case documents

14 Clerk s Website

15 Clerk s Website

16 Register as a Bidder

17 Name on Title

18 Name on Title This information will be used for the owner name on any deed purchased at auction

19 Auction Calendar

20 Auction Calendar

21 RealTDM Public Search

22 RealTDM Public Search

23 Tax Collector s Certification Tax Collector s Certification O&E Copies of Records Tax Deed Application

24 Tax Collector s Certification: Ownership & Encumbrance

25 Research Case detail provided on the auction and TDM site is for informational purposes : to identify the property being sold, and to show the parties receiving notices of tax deed sale. Prospective buyers should conduct further research to ensure they are aware of liens, defects in title, or other issues that may affect the title or the purchaser of a tax deed.

26 Research Some tools for research are: Real estate professional Property Appraiser s Website Clerk s Official Records Liens Ownership transfers Related records

27 Research: Official Records

28 Bid To place a bid on a tax deed auction: Register as a user on auction site: Deposit funds into bidder account View auction listings Research property Place proxy bid Certificate holder can bid (must follow same rules)

29 Bid: Make Deposit Deposit must be received no later than 1 hour prior to auction. Each bid requires a $200 or 5% deposit

30 Bid: Auction Calendar

31 Bid: Place Bid

32 Bid: Name on Title

33 Bid If not the winning bidder, deposit can be used on another case or refunded upon request. If winning bidder, make full payment by 1:00PM on the day after sale. If final payment not received in time, bid is cancelled, and deposit is forfeited.

34 After the Sale Tax Deed is recorded after receipt of final payment, and is mailed to purchaser at address selected on deed. Proof of Publication and Certificate of Mailing are recorded, marking the end of the tax deed sale process. Applicant is refunded costs and interest Clerk cannot provide assistance with post-sale concerns like taking possession of property, etc.

35 After the Sale Amount of winning bid that exceeds opening bid and fees is considered surplus, to be disbursed by Clerk according to priorities: 1. Government agencies with liens on property (prorated if necessary) 2. Mortgage holders/lienholders 3. Previous owner/beneficiary/heir 4. State of Florida Department of Financial Services Unclaimed Property Division

36 Examples of Some Challenges Demolition Government agency lien/utility lien/shutoff Bankruptcy No bidders at sale Applicant now owns property No refund to applicant Possible additional taxes due Overturned by court Simultaneous foreclosure process or other legal action Tenants inhabiting property

37 Resources Tax Deed Sales Rules, Official Records, Court Records, and Contact Information:

38 Resources Tax Deed Sales Rules, Official Records, Court Records, and Contact Information: Auction website: Property Appraiser: Unclaimed Funds: