A practical guide to understanding what you're buying, what obligations survive the sale, and exactly how to check each type of lien before you bid.
When a property owner fails to pay real estate taxes in Florida, the county sells a tax certificate to investors. If the taxes remain unpaid for two or more years, the certificate holder can apply for a tax deed, triggering a public auction.
The winning bidder at a tax deed sale receives a Tax Deed — a deed issued by the Clerk of Court. This deed conveys ownership but does not come with title insurance or a guarantee of clear title. Unlike a traditional real estate closing, there is no title search built into the process.
Under Florida Statute §197.552, a tax deed sale extinguishes most junior liens on the property. However, several important encumbrances are specifically carved out and survive the sale — meaning the new buyer inherits them. Understanding which is which is the core of tax deed due diligence.
Florida law is clear on most of these, but interpretation can vary by county and circumstance. When in doubt, consult a Florida real estate attorney before bidding on high-value properties.
IRS tax liens are recorded with the Florida Department of State as Federal Lien Registrations (FLR). They are searchable by debtor name for free. This is the single most important manual check before bidding on any property.
Under 26 U.S.C. §7425, if the IRS is not properly notified of the pending tax deed sale, its lien survives regardless. Even when properly notified, the IRS retains a 120-day redemption right — meaning the IRS can reclaim the property within 120 days of the sale by paying the winning bid amount plus 6% interest.
A CDD is a special-purpose government entity established under Florida Statute Chapter 190. CDDs fund infrastructure for planned communities (roads, utilities, amenities) through bond financing, and recover costs via annual assessments levied against each parcel in the district.
CDD assessments appear as a separate line item on the annual property tax bill. They are not a lien in the traditional sense — they are a taxing obligation that runs with the land. Regardless of who owns the parcel, the annual CDD assessment must be paid or the property can again face tax certificate issuance.
Code enforcement liens are issued by cities and counties for violations such as overgrown vegetation, abandoned vehicles, unsafe structures, junk/debris, and unpermitted construction. These survive the tax deed sale and can total tens of thousands of dollars — especially if the property has been vacant and neglected for years.
Unlike IRS liens which are searched by owner name, code enforcement liens attach to the parcel address, so they're easier to track. Each county and city maintains its own enforcement database.
Unpaid HOA liens recorded before the tax deed sale are extinguished. However, this does not mean the HOA goes away. The HOA itself — and its ongoing dues, rules, and enforcement authority — survives intact. The new owner must comply with the HOA's rules and pay dues from day one of ownership.
Additionally, in some cases HOAs have argued that certain special assessments (capital improvement assessments) are not "liens" in the traditional sense and therefore survive. This is a gray area — consult an attorney on high-value HOA communities.
A lis pendens ("suit pending") is a notice recorded in official records that a lawsuit involving the property is active. It is not a lien itself but signals that someone is claiming an interest in the property through the courts. Common sources include: prior owner contesting the tax deed, lender foreclosure actions, boundary disputes, and estate/probate litigation.
If a lis pendens is active at the time you bid, the outcome of that litigation could affect your title. In some cases a court could rule that the tax deed was improperly issued and your ownership is void.
The county Clerk of Court maintains official records — every deed, mortgage, lien, judgment, and notice recorded against property in that county. This is the single most comprehensive source for lien research, and it's free and public. Every Florida county has an online official records search.
When searching, use multiple methods: parcel ID (most precise), owner name (catches liens not tied to a parcel), and address. Look back at least 10 years to catch old liens that may still be active.
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