What is a tax certificate, a tax deed sale and why is there a delinquent tax sale auction?
One method used by governmental agencies in Florida to collect delinquent taxes owed on real estate is to issue a tax certificate or Tax Lien Certificate. If the property owner fails to pay the delinquent taxes during a specified period of time, the county government can issue what is called a Tax Lien Certificate on the property. The Tax Lien Certificate represents the outstanding taxes on the property and includes all unpaid real estate taxes, assessments, including penalties, advertising costs and fees. The county government issues the Tax Lien Certificates to investors so that the county may recoup the delinquent taxes. This is called a tax lien sale or in simpler terms a tax sale. Interest accrues at the bid rate on the Tax Lien Certificate over a specified course of time until the taxes(lien) are paid. A Tax Lien Certificate is a first position lien (Senior Lien) on the property. If the lien is not satisfied by the property owner by redeeming the Tax Certificate, a tax deed sale
