Tax Certificate vs. Tax Deed Application
-------------------
Please be aware that there is a major difference between a Tax Certificate and a Tax Deed Application.
--------------------

A Tax Certificate:

Is an interest bearing first lien representing unpaid delinquent real estate property taxes.

A tax certificate is an investment. It does not convey any rights or ownership to the certificate holder.
In order to own the property, you'd have to make a tax deed application,
attend the tax deed auction and be the highest bidder at the sale.

Tax certificates are not recorded liens nor are they reported to any credit bureaus.
They are a "first" priority lien.

The face value of the Tax Certificate is the amount of taxes due, plus interest, costs and charges thereon.

Purchase of a tax certificate does not permit the certificate holder to enter the property or harass the owner.

The property owner has a period of two years from the date the tax became delinquent to redeem the tax certificate.
Redemption is done through the County Tax Collector's office only.

---------------------

A Tax Deed Application:

Tax Deed application is the action, initiated by a tax certificate holder, which begins the process
of selling a property at public auction for the delinquent taxes.

Only a certificate holder who has held a tax certificate for a minimum of 22 months is eligible to make a tax deed application.
This action forces the owner to pay the back taxes, or the property would be sold at a public auction to the highest bidder.

At the time of application, the certificate holder (applicant) pays any other outstanding taxes,
as well as a title search fee and a tax deed application fee.

All of the unpaid taxes and fees are then combined with the applicant's certificate,
and interest is earned at the rate of 18% per annum.
This interest begins accumulating at 1-1/2% per month, beginning the month after the application date.

If payment is made to the County Tax Collector by the tax payer (property owner) or the mortgage company,
the applicant is reimbursed for their total investment, and the accrued interest.
The Tax Deed sale process is stopped.
-------------------------------------
The following Government Links will provide more information for you:

Bay County Florida (Panama City Beach) Tax Collector
has a good page on Tax Certificates:

http://tc.co.bay.fl.us/TaxCertificates.aspx


Volusia County Florida (Daytona Beach / New Smyrna Beach) Tax Collector
has a lengthy page on Tax Certificates and Tax Deed Applications:

http://volusia.org/revenue/internettaxsale.htm


Broward County Florida (Fort Lauderdale) Tax Collector
has pages on Tax Certificate FAQs and Tax Deed FAQs

http://www.co.broward.fl.us/revenue/cert_faqs.htm

http://www.co.broward.fl.us/revenue/tda_faqs.htm#td

----------------
Best wishes,
Fred
-----------

You must posess three consecutive years before you can foreclose the property. This gives you title to the property, but the bank is still entitled to collect on thier primary mortgage...which means that you will need to be able to make the payments, refinance, or sell it for enought to pay the balance, your tax amounts, closing costs, and any profit.

I hope this helps

Gary De Pury
Broker-Owner
Bay Vista Realty
Tampa, Florida