Delinquent Real Estate

Delinquent Real Estate/Tax Certificates

A tax certificate is a tax lien on property created by payment of the taxes due. It is not a purchase of the property.

What are Tax Certificates?

Tax Certificate means a legal document, representing unpaid delinquent real property taxes, non-advalorem assessments, including special assessments, interest, and related costs and charges, issued in accordance with Chapter 197, Florida Statutes, against a specific parcel of real property and becoming a first lien thereon, superior to all other liens, except liens, restrictions and covenants surviving or protected as provided by Section 197.573(2)FS. Tax Certificates bear interest at the maximum rate allowed by law (18%) unless the bidder specifies a lower rate. The highest rate that can be bid is 18% and the lowest is 0%.

Warning: Buyer Beware!

Not all certificates sold at a Tax Certificate Sale are bargains. Tax Sale Certificates are sold under the following concept: Let the buyer be beware! The more thoroughly you research the properties, the better informed you will be and the better will be your chances of avoiding losses. The Tax Collector provides public terminals for citizens to obtain information on specific parcels. Currently, this service is available only at the main office in Palatka, at 312 Oak Street.

The Property Appraiser’s public access can provide background information about any property in Putnam County, i.e., name and address of owner and legal description, which may be obtained at all Tax Collector Location.

When are Real Estate Taxes due in Florida?

Real Estate Taxes in the State of Florida are for the calendar year and are payable November 1 of that year. If these Real Estate Taxes are not paid on or before March 31, of the following year, they become delinquent the next day, April 1.

What happens when Real Estate Taxes become Delinquent?

Florida Statutes require the Tax Collector of each county to annually, between April 1, and June 1, conduct a sale of Tax Certificates on the counties immediately preceding year’s delinquent real estate parcels.

How is the cost of a certificate determined?

The amount of the certificate is the sum of the unpaid real estate tax and non-advalorem assessment, 3% interest, 5% Tax Collector’s commission, plus advertising costs.

To participate in the sale, a bidder must register with the tax Collector’s Office. Bidding on interest starts at 18% and is bid down until the certificate is sold. A certificate of ownership and listing of certificates purchased is provided to each buyer.

Are Delinquent taxes Publicized?

The tax Collector must advertise the Delinquent Taxes in a newspaper once a week for three consecutive weeks prior to the Tax Certificate Sale, specifying the place, date and time of the sale. The sale date must be on or before June 1^st. The newspaper’s advertisement contains the delinquent tax amount plus costs, the property owner’s name and the property’s description. The amount shown in the newspaper will be the amount of the Tax Sale Certificate at the sale.

How does the bidding proceed?

All purchases are to the bidder who will accept the lowest interest rate which cannot be higher that 18%. If there are no bidders for the delinquent taxes, each applicable tax certificate is issued in the name of the county. As each delinquent tax item is sold to the bidder or struck off to the county the bidder’s number and the rate of interest is entered into the computer. At any time, we can inform the bidder of the amount of funds due for their purchases. Payment must be made before or on completion of the sale. Tax sale certificates will be mailed to the purchasers as soon as possible.

Tax Certificates not sold at the annual sale and are issued to the county are available for purchase. The purchasers must identify the property by the tax certificate number to complete the transaction. A list is available in the Tax Collector’s office. New bidders must fill out a bidder application form. Interest will be reported to the IRS, therefore, we must have name, address and Social Security number or Federal Income Tax number prior to purchasing.

How is a Certificate Holder reimbursed their money?

When a certificate has been redeemed, the holder is entitled to the face value plus whatever interest is has earned at the time of redemption. The redemption is handled by the Tax Collector’s Office and notification is mailed to the certificate holder. Checks on redemption monies are written twice a month.

How are Certificates Redeemed?

To redeem the certificate, the taxpayer must pay to the Tax Collector all delinquent taxes plus accrued interest, penalties, and advertising cost. The Tax Collector will then reimburse the tax certificate holder and the property will once again be free and clear of any tax liens.

What is the Life of a Tax Sale Certificate?

Tax Sale Certificates are dated as of the first day of the Tax Sale Certificate Sale and have a life of seven years computed from that date. Upon the expiration of the appropriate period of limitation, no action may be maintained by any private holder in any court of the state. The holder of any Tax Certificate, at any time after two years have elapsed since April 1, of the year of issuance of the Tax Certificate and before the expiration of the appropriate period of limitation, may submit a Tax Deed Application to the Tax Collector of the county where the real estate described in the Tax Certificate is located.

Tax Certificates can be canceled or reduced if errors, omissions, or double assessments are made. Canceled or reduced certificates receive 8% interest, or the actual amount bid, whichever is less.