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What
is a tax deed sale?
Real
property taxes are due each year, and are payable between the months
of November of the tax year up to March 31st of the next
year. Effective April 1st of each year, any unpaid real
property taxes become delinquent property taxes. Each year, the
county Tax Collector sells Tax Certificates for delinquent real
property taxes on June 1st. The purchaser of a Tax
Certificate is referred to as a Certificate-Holder. A
Certificate-Holder, after waiting for at least two (2) years, will
make application with the Tax Collector for the real property to be
sold at public auction in order to be repaid the amount owed to
them, plus interest. The Application for Tax Deed file is then
transferred to the Clerk of the Circuit Court for processing and
subsequent Tax Deed Sale. This process is governed by Title XIV, Ch.
197 of the Florida Statutes, and by FAC 12D-13.060, Florida
Department of Revenue.
Who
conducts the tax deed sale?
A
Deputy Clerk employed by the Clerk of the Circuit Court conducts the
sale or public auction in accordance with Section
197.502(5), F.S.
When and where are these tax deed sales held?
Tax Deed Sales are normally held at the Okaloosa County
Courthouse, located at 101 E. James Lee Blvd (U.S. Hwy 90), in
Crestview. Check each Notice carefully for the date, time and
location of each Tax Deed Sale.
Where may information be obtained regarding upcoming sales?
In
addition to the Clerk’s website, Tax Deed sales may be advertised in
one of several different newspapers in Okaloosa County but are
normally published in the
Crestview News Bulletin.
The Clerk of the Circuit Court is required by Florida Statute to
advertise each sale once a week for four consecutive weeks prior to
the public auction, Section
197.512(1), F.S.
In addition, you can view the legal notice of any pending Tax Deed
Sale on this website. You may also visit the Clerk of Circuit
Court's office at the Courthouse Annex.
What liens or encumbrances survive against a property after it is
sold at a tax deed sale?
Government liens and judgments (federal, state, county or municipal)
survive the issuance of a tax deed and are satisfied to the fullest
extent possible with any overbid monies from the sale. Government
liens not satisfied in full survive the issuance of a tax deed and
will remain against the property. Records can be researched on our
Official records website
.
Can the property owner stop the property from being sold for
taxes?
The property owner or mortgage holder may redeem the property
from the tax deed sale by paying the amount owed on line 18 of the
Tax Collector’s Certification form DR-513. The total redemption
amount is collected/paid to the office of the Tax Collector. (Most
of the properties advertised for sale will be redeemed and will not
be auctioned.)
If I am the successful bidder at the sale, what do I need to do?
According to office policy, as the successful bidder you must
remain until the auction is complete and then report to the Deputy
Clerk who conducted the sale. You will be required to post a
$200.00 cash deposit for each property you purchase. You will be
given calculations for your total amount due. This total will
include your bid amount plus the fees to record your Tax Deed. The
total amount due must be brought back to the Clerk of Court's
office no later than 4:00 p.m. the day of the sale. (Payment may
only be made by cash or certified funds. Certified funds is our
office’s preferred payment method.)
What if I am the successful bidder and fail to return with the
payment?
Section
197.542(1), F.S.
states: "the clerk may refuse to recognize the bid of any person who
has previously bid and refused, for any reason, to honor such bid".
Therefore, those individuals may not be allowed to bid at any
future tax deed sales. In addition, you forfeit the $200.00 cash
deposit collected from you at the conclusion of the Tax Deed sale.
Do I
get a clear title with a tax deed?
All properties sold at a tax deed sale qualify under "buyer beware".
The purchase of a Tax Deed does not warrant or guarantee clear and
marketable title. Note: Most title insurance companies require the
property to go through a quiet title action for the property to be
able to have title insurance issued on property purchased by Tax
Deed. Consult your attorney for more information on Quiet Title
actions.
What
are some things I should know before the sale?
In
order to participate in the bidding process, one must arrive a few
minutes prior to the sale. You, or your representative, must be
physically present at the sale in order to bid on the property. It
is highly recommended that you research the properties prior to the
sale day in order to understand what you are purchasing at the sale.
You may wish to check for additional delinquent taxes and/or
current taxes owed, government liens, zoning, restrictive covenants,
etc. Remember, tax deed sales are “buyer beware”.
If I
am the successful bidder at a Tax Deed Auction, am I entitled to
immediate possession of the property after a Tax Deed has been
issued to me?
Section
197.542, F.S.,
states: "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. If demand
for possession is refused, the purchaser may apply to the circuit
court for a writ of assistance upon 5 days' notice directed to the
person refusing to deliver possession. Upon service of the
responsive pleadings, if any, the matter shall proceed as in
chancery cases. If the court finds for the applicant, an order
shall be issued by the court directing the sheriff to put the
grantee in possession of the lands." Consult your attorney for more
information on writ of assistance actions.
How is the amount of the opening bid determined?
If the property is not homestead property, the amount of the
opening bid equals the total of unpaid taxes and interest, the Tax
Collector’s administration fees, the Clerk of Circuit Court
administration fees and expenditure fees required by Florida Statute
to bring the property to delinquent tax sale. If the property is
homestead property, one half of the assessed value from the tax roll
is added to the above amounts for the total opening bid amount.
How long does it take to receive the Tax Deed?
You
should have your Tax Deed within 7 to 10 days from the sale date.
What happens to any overbid surplus funds after the sale?
Overbid surplus funds held in the Court Registry and are paid to
satisfy any government lien(s) to the extent possible. Notices of
Surplus Funds are mailed to all interested parties named within the
file. After expiration of the 90 day claim period, either an
assignment of claim priority is determined, and disbursements made,
or, if no claims have been received, the funds (or any remaining
balance thereof) are transferred to the Board of County
Commissioners to be held for a two (2) year period. In some cases,
if priority is unable to be determined, an “interpleader action”
must be brought before the judiciary for a court determination or
declaratory judgment. Each online file contains specific overbid
surplus fund information. Please review the online file for details.
Where
may I obtain information regarding the sale of Tax Certificates?
Tax
certificate information can be obtained from the
Tax
Collector's Office
located at 73 Eglin Parkway NE, Suite 111, Ft. Walton Beach FL
32548. The phone number for the Tax Collector’s Delinquent Tax
department is 850-651-7604.
BACKGROUND INFORMATION
SALE
OF TAX CERTIFICATES FOR UNPAID TAXES (Section
197.432, F.S.):
Taxes become delinquent April 1st of each year. At that time, the
Tax Collector begins preparing the certificate sale. A tax
certificate is sold for all taxes not paid by June 1st. A tax
certificate is a tax lien against the property. The certificate
holder does not have any rights to the property. If no individual
purchases a certificate on a piece of property at the June 1st sale,
the County assumes the certificate. There are two types of tax
certificates: individual and County. The owner or interested party
may redeem the certificate at any time by paying to the Tax
Collector the delinquent taxes and interest earned by the
certificate holder. (Section
197.472, F.S.).
The tax certificate has a life of seven years. (Section
197.482, F.S.).
If a certificate is not redeemed, the certificate holder may force
the issue by making application for tax deed. A certificate must be
two years old to be eligible for tax deed application. (For County
held certificates, the Board of County Commissioners makes
application for the tax deed). The application process must begin in
the Tax Collector's office. The Tax Collector prepares the necessary
paper work (which includes Tax Collector's certificate and legal
description of property) and forwards it to the Clerk's office. The
Clerk's office prepares the legal advertisement for the newspaper,
the certified mailing of notices of the pending sale, the civil
process to be served by the Sheriff's office, the calculation of the
opening bid, answers questions from public, and waits for the sale
day. The owner or interested party may redeem right up until the
very last minute prior to the sale. All redemptions are made at the
Tax Collector’s Office.
Click here to see the list of Tax Deed files |