Real estate taxes are charged across the United States.A liens is placed on the property when the taxes are not paid.If the back taxes are not paid, the property can be seized and sold to pay the debt.Buying these properties can be a great investment.There are certain risks involved with the process.If you want to buy property in a tax deed sale, you need to gather information, make bids, and finalize the purchase.
Step 1: Call your county.
There are different ways in which different counties offer property auction information.Information is offered in person.You can review property files in the clerk's office.You can visit the clerk's office on Mondays through Fridays from 9:00 AM to 5:00 PM.
Step 2: There are paper advertisements.
The list of properties that are being auctioned in the next sale is published by most counties.You should always get a copy of the paper the county publishes.Franklin County, Florida publishes all of their tax deed sale information.For four weeks in a row, the information is advertised.The clerk's office sells the paper for $1 per page.
Step 3: You can visit county websites.
Property information can be found online.Visit your county clerk's website to find out if they offer this service.You can find information about properties being auctioned on two websites in Florida.Full lists of properties can be found on these websites.
Step 4: Understand how the property is being offered.
Tax deed sales are a great way to purchase properties, but you have to be aware of the drawbacks.The property is being sold by the county and they do not make any promises about the property's condition.The county won't guarantee anything because every sale is "buyer beware."If you don't do your research, you could end up buying a drainage ditch, a sign, condemned property, or a pile of junk.When you buy a property at an auction it may have liens and encumbrances.Some liens will be discharged with the sale.If the property is followed by a lien, you will have to pay to have it removed.The county doesn't look into any of the laws that may affect the property's use.You are responsible for everything.
Step 5: Title and liens can be searched.
The property is being sold by the county.They are not real estate agents or lawyers and do not have any information about the properties they are auctioning.An attorney can help you conduct various property searches.If you are interested in a property, you should conduct a title and liens search.You can conduct a title and liens search by going to the county recorder's office.Every transfer of the property will be included.This information can be used to determine the title's quality.If you don't know who holds the proper title to the property, you should not buy it.If there are outstanding liens on the property that will not be discharged in the tax deed sale, you should not buy it.
Step 6: You can visit the property.
The keys to any piece of property will not be given to you by the county conducting the auction.There are no pictures, floor plans, or other data regarding the property in the county.You will have to plan your visit on your own.Do not go onto the property or inside the structure if you are walking by it.The property is owned by someone other than you.If you don't have the owner's permission, you will not be allowed on the property.
Step 7: How bids are taken should be determined.
The tax deed sales are sold at an auction.Some counties conduct live auctions while others conduct online auctions.Ask your county how they conduct their sales.If your auction is live, they will be held at the same time and place every month.Tax deed sales are held on the first Monday of every month in Franklin County, Florida.You have to be present at the auction to make bids.To make sure you are ready to go, you should arrive a few minutes early.If your auction is online, you will need a personal ID and password to sign in.You can register with the website to get the information.Make sure you have the required software for the auction site when you check with the county.If you use an online system, you will have to submit a bid deposit in order to participate in the auction.5% of the anticipated final bid price is the amount.
Step 8: The opening bid is calculated.
Unpaid taxes, interest, administrative fees, and expenditure fees are usually added together to calculate the opening bid for a property.Everything you will have to pay may not be included in the minimum bid.After the bidding is complete, you may have to pay additional taxes.
Step 9: Make a bid.
You can offer a reasonable amount when the bidding starts.You will raise a paddle or hand if the auction is live.If the bid is online, you can submit a bid by typing the amount you are willing to pay into a box and clicking "submit."
Step 10: Continue the bidding process.
You may have to enter subsequent bids in order to purchase the property if people out-bid you during the auction.If you are not willing to pay, you should go back and forth.If you are the successful bidder, you will be asked to stay and talk with the deputy clerk.
Step 11: You can visit the clerk's office.
As soon as the auction is over, the deputy clerk will accompany you to the clerk's office.The total amount you owe will be notified at the office.Fees needed to record the tax deed, as well as documentary stamps, will cost around $.70 per $100 of the bid.
Step 12: The amount to be paid is the purchase amount.
You will have successfully completed the tax deed sale process if you pay the full amount as soon as the auction is over.If you can't pay the full amount on the spot, you will have to post a non-refundable deposit of 5% of the bid amount or $200.Payments must be made with a cashier's check, money order, or wire transfer.No other form of payment will be accepted.You have to pay the full amount within 24 hours if you only post a deposit.At any time before the full purchase amount is paid, the property owner can stop the sale by paying the amount owed to the tax collector.You will not be able to purchase the property if this happens.
Step 13: A tax deed can be received.
You will receive ownership of the property once you pay the full purchase amount.A tax deed is a title given as a result of a tax sale.The tax deed doesn't promise clear title or carry any warranties.
Step 14: Take possession as soon as possible.
Once the tax deed is recorded, most state statutes allow you to take immediate possession of the property.As soon as you pay the full purchase price, the property will be yours and you can use it for anything you want.
Step 15: Anyone who left the property will be evicted.
You won't be able to take possession right away if you have an immediate right to possession.The previous owners may still be on the property.You might have to take legal action to get possession.If this is the case, you may need to go through a lawyer to get possession.
Step 16: There is a clear title.
You will need to clear title in order to get title insurance and have peace of mind in the future.It's important to have a clear title in case you ever want to sell the property in the future and to make sure nobody else makes a claim to it.Before you can get title insurance, you have to go through a quiet title lawsuit.Discuss these procedures with an attorney.