What Liens Survive a Tax Deed Sale in Florida

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A tax deed sale in Florida is a legal process through which the government auctions off properties to recover unpaid property taxes. However, it is important to note that not all liens on a property are extinguished through a tax deed sale. This article will discuss what liens survive a tax deed sale in Florida and provide answers to frequently asked questions regarding this topic.

Liens that typically survive a tax deed sale in Florida include:

1. Federal tax liens: These liens are not affected by a tax deed sale, and the federal government retains the right to collect any outstanding taxes from the property.

2. Municipal liens: Liens imposed by cities or municipalities for unpaid utility bills, code violations, or other municipal charges are not extinguished through a tax deed sale.

3. Special assessment liens: Liens imposed for public improvements, such as street paving or sewer installation, are not wiped out by a tax deed sale.

4. HOA/COA liens: If a property is part of a homeowners’ association (HOA) or a condominium association (COA), any outstanding dues or fees owed to the association will survive a tax deed sale.

5. Mortgages and other voluntary liens: Liens held by banks or other financial institutions, such as mortgages or home equity loans, are not eliminated through a tax deed sale.

Now, let’s address some frequently asked questions regarding liens that survive a tax deed sale in Florida:

Q1. What happens to the liens that survive a tax deed sale?
A1. Liens that survive a tax deed sale remain attached to the property, and the new owner takes the property subject to these liens.

Q2. Can I negotiate with lienholders after purchasing a property through a tax deed sale?
A2. Yes, you can negotiate with lienholders to potentially reduce the amount owed or arrange a payment plan.

Q3. Can a lienholder foreclose on the property after a tax deed sale?
A3. Yes, lienholders with valid liens can still foreclose on the property even after a tax deed sale has occurred.

Q4. How can I find out if there are any liens on a property before purchasing it through a tax deed sale?
A4. Conducting a thorough title search is essential to identify any existing liens on the property.

Q5. Are property taxes owed before the tax deed sale also extinguished?
A5. Yes, all outstanding property taxes are typically paid off through the tax deed sale process.

Q6. Can I obtain title insurance for a property purchased through a tax deed sale?
A6. Yes, title insurance companies may issue a policy that excludes coverage for liens surviving the tax deed sale.

Q7. Can I remove any of the liens that survive a tax deed sale?
A7. Some liens, such as municipal liens or HOA/COA liens, may be removed by paying off the outstanding amount.

Q8. What happens if I fail to address the liens that survive a tax deed sale?
A8. Failure to address these liens can result in legal consequences, including foreclosure or further legal action by the lienholders.

In conclusion, while a tax deed sale in Florida may provide an opportunity to acquire properties at a discounted price, it is crucial to understand that certain liens will survive the sale. Conducting due diligence and seeking professional advice is essential to navigate the complexities associated with liens that survive a tax deed sale.
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