Palm Beach County Florida Tax Sale

how to buy tax certificates

Palm Beach County Florida tax lien certificates are sold at the Palm Beach County tax sale auction annually on or before June 1st of each year.

The sale of Palm Beach County tax lien certificates at the Palm Beach County tax sale auction generates the revenue Palm Beach County Florida needs to continue to fund essential services.

In Palm Beach County Florida real estate property taxes are due on November 1 and are delinquent after March 31st of the year following the year of assessment (i.e 2012 taxes become delinquent after March 31, 2013).

Property taxes that are delinquent after March 31st of each year are added to any existing delinquent taxes on a property for the Palm Beach County tax lien certificate tax sale auction.

Beginning May 1 of each year Palm Beach County will commence advertising tax delinquent property's to be offered at the Palm Beach County Florida tax lien certificate tax sale auction. The list of tax delinquent properties are advertised once a week for three consecutive weeks prior to the Palm Beach County Florida tax lien certificate tax sale auction.

Tax Sale List

Contact the Palm Beach County Florida Treasurer F.R.S. 197.332 for instructions on obtaining the Palm Beach County Florida tax sale list.

The Palm Beach County tax sale list includes the item number, parcel number, legal owner, and legal description of the property's to be offered at the Palm Beach County Florida tax lien certificate sale. Combined with the Palm Beach County Florida Assessor's property records this information can be used to research each Palm Beach County tax lien certificate to be offered at the Palm Beach County Florida tax sale.

Copy's of the newspaper where the advertisement of tax liens on property's subject to sale at the Palm Beach County Florida tax sale are available for purchase through the Palm Beach County Florida Treasurer's Office. In addition, a digital copy of the advertisement may also be available for purchase.

Tax Sale Registration

Anyone wishing to bid must register preceeding the Palm Beach County Florida tax sale. Contact the Palm Beach County Florida Treasurer F.R.S. 197.332 for registration instructions and requirements. Generally, there is no charge for registration.

While there is no charge to register bidders may be required to make a deposit via the Tax Sale Website Payments Page. The Palm Beach County Florida Treasurer's Office may require that bidder's post 10% of the estimated amount they intend to purchase at the Palm Beach County Florida tax sale.

Registration requirements specify that bidders must supply the Palm Beach County Florida Treasurer's Office with a completed Bidder's Card, Request for Taxpayer Identification Number and Certification (IRS Form W-9 or W-8BEN).

Upon successfully meeting the registration requirements the Palm Beach County Florida Treasurer's Office will assign a bidders number to identify each bidder when purchasing tax liens from Palm Beach County Florida.

Tax Sale Time and Location

The Palm Beach County Florida tax sale is held on or before June 1 of each year. Contact the Palm Beach County Florida Treasurer's Office F.R.S. 197.332 to determine the time and location of the Palm Beach County Florida tax sale.

In accordance with F.R.S. 197.432 the Palm Beach County Florida Treasurer will commence the public auction of the Palm Beach County Florida tax liens on those land's for which the taxes, interest, and fees have not been paid and continue's from day to day until each tax lien certificate is sold to satisfy the taxes, interest, costs, and charges.

Florida law F.R.S. 197.417 specifies that at least 7 days before the Palm Beach County Florida tax sale auction is to be held the Palm Beach County Florida Tax Collector shall give public notice of both the time and location of the Palm Beach County Florida tax sale auction.

Tax Sale Bidding Process

In accordance with F.R.S. 197.432 Florida laws grants the Palm Beach County Florida Treasurer broad powers in setting and determining bidding rules governing the Palm Beach County Florida public tax sale auction.

Currently, there are several bidding methods being used to sell Palm Beach County Florida tax lien certificates.

The Palm Beach County Florida Treasurer may utilize one or more of the following bidding methods to sell Florida tax lien certificates:

Bid Down Interest Method. In a public oral bid tax sale where Palm Beach County Florida is utilizing the Bid Down Interest Method the bidding begins at the maximum rate of return specified in F.R.S. 197.172 being 18% per annum and is sold to the bidder willing to accept the lowest interest rate. Bidder's lower his or her bid by increments of one percent until the tax lien certificate is sold to the bidder willing to accept the lowest interest rate.

According to Florida statute, investors will receive a minimum return of 5% over the life of the tax lien certificate. (2) When a tax certificate is redeemed and the interest earned on the tax certificate is less than 5 percent of the face amount of the certificate, a mandatory charge of 5 percent shall be levied upon the tax certificate. The person redeeming the tax certificate shall pay the interest rate due on the certificate or the 5-percent mandatory charge, whichever is greater F.R.S. 197.472 (2) ).

Proxy Bid Method. In a public oral bid tax sale where Park County is utilizing an Proxy Bid Method, the auction system submit's the bids on behalf of the bidders. Prior to the tax sale bidders must login to the Tax Sale Website and enter the minimum interest rate that they are willing to accept for each tax lien certificate they intend to purchase. At the time of the tax sale the auction system will submit bids on behalf of each bidder.

The result of the auction system is that the electronic agent keeps lowering the bid to submit by one percent increments until either they are the only bidder left, (in which case they get the tax lien certificate at one percent lower than the previous bid) or until they reach the minimum rate they have set. Zero percent bids are not treated as bids, they will be awarded at zero.

In cases where there is only one bidder on a given tax lien certificate and the bidder's minimum rate is greater than zero percent, the auction system will submit a bid of 18%.

In the case of a tie at the winning bid rate, the system awards to one of the bidders through a random selection process using a random number generator.

In accordance with F.R.S. 197.432(5) and F.R.S. 197.432(6) unsold Palm Beach County Florida tax lien certificates that receive no bid are "struck off" or sold to Palm Beach County Florida at the maximum rate of interest allowed by Florida law being 18% per annum.

Tax Sale Payment

Pursuant to F.R.S. 197.432 the Palm Beach County Florida Treasurer may accept payment in the form of cash, negotiable paper, or electronic funds transfer, for the Florida tax lien certificate.

In accordance with F.R.S. 197.432 (7) the Palm Beach County Florida Treasurer must provide written or electronic notice when the tax lien certificate(s) are ready for issuance. Payment must be made within 48 hours after the transmission of the electronic notice by the Palm Beach County Florida Treasurer or mailing of the notice or, at the Palm Beach County Florida Treasurer's discretion, all or a portion of the deposit placed by the bidder may be forfeited

Upon payment of the back taxes, penalties and charges, the winning bidder will be issued a tax lien certificate or certificate of purchase ("CP") by the Palm Beach County Florida Treasurer's Office evidencing the sale of the tax lien certificate. If payment has not been made, the parcel(s) / tax lien certificates may

be re-offered.

Subsequent Taxes

Endorsement, "subtax" or "subsequent tax" provides the current tax lien certificate holder with the option of endorsing the current year's delinquent tax onto the original tax lien certificate.

In Palm Beach County Florida subsequent taxes cannot be added or endorsed to an existing tax lien certificate. Instead, subsequent delinquent property taxes will be offered at the following years tax sale.

Redemption Period

Pursuant to F.R.S. 197.472 and F.R.S. 197.482 the delinquent property owner can redeem a tax lien certificate at any time until the property is sold at the Palm Beach County Florida tax deed sale or until the Palm Beach County Florida tax lien certificate expires which is seven (7) years after the date of issuance.

To redeem the Florida tax lien certificate the delinquent property owner must pay the Palm Beach County Florida Tax Collector the face amount of the Florida tax lien certificate plus all interest, costs, and charges.

Interest Rate

The delinquent property owner may redeem the Florida tax lien certificate at any time before the execution of the Palm Beach County Florida Treasurer's tax deed by paying the amount of delinquent taxes, delinquent interest, and costs for which the tax lien certificate on the property was sold, with redemption interest from the date of the sale at the rate specified in F.R.S. 197.172.

Pursuant to F.R.S. 197.472 (2), investors will receive a minimum return of 5% over the life of the Florida tax lien certificate.

(2) When a tax certificate is redeemed and the interest earned on the tax certificate is less than 5 percent of the face amount of the certificate, a mandatory charge of 5 percent shall be levied upon the tax certificate. The person redeeming the tax certificate shall pay the interest rate due on the certificate or the 5-percent mandatory charge, whichever is greater (F.R.S. 197.472 (2) ).

In accordance with F.R.S. 197.472 (5) after a Florida tax lien certificate is redeemed, the Palm Beach County Florida Tax Collector must pay the owner of the Florida tax lien certificate the amount received by the Palm Beach County Florida Tax Collector less the redemption fee within fifteen (15) business days after the date of receipt of the redemption.

Tax Deed

Pursuant to F.R.S. 197.502 and F.R.S. 197.482 if the Florida tax lien certificate has not been redeemed and the tax lien certificate has not expired, the purchaser of the tax lien certificate may, at any time after two (2) years have elapsed since April 1 of the year of issuance but no later than seven (7) years, request and begin a tax deed application process with the Office of the Palm Beach County Florida Tax Collector.

In accordance with F.R.S. 197.502 (1) the Palm Beach County Florida Tax Collector may charge a $75 tax deed application fee.

At the time of application for the tax deed, the tax lien certificate holder must pay the Tax Collector all amounts required for redemption or purchase of all other outstanding tax lien certificates, plus interest, omitted taxes, plus interest, any delinquent taxes, plus interest, and current taxes, if due, cover the property.

The Palm Beach County Florida Tax Collector shall then deliver to the clerk of the circuit court a statement that payment has been made for all outstanding tax lien certificates and that notification must be made to all persons identified in F.R.S. 197.502 (4) preceding the sale of the property.

If the Florida tax lien certificate remains unredeemed it is scheduled for a public auction tax deed sale in the Palm Beach County Florida Courthouse by the Clerk of Circuit Court.

In accordance with F.R.S. 197.542 property advertised for sale to the highest bidder as a result of a tax deed application pursuant to F.R.S. 197.502 are to be sold at public auction by the Clerk of the Palm Beach County Florida Circuit Court on the date at the time and location specified in the published notice.

The property is sold for cash to the bidder with the highest bid at the Palm Beach County Florida tax deed sale. If the property is classified as non-homested, the opening bid is the amount of the delinquent property taxes, accrued interest, plus costs and fees involved in the tax deed process.

If the property is classified as homestead, the opening bid is half the current assessed property value plus all delinquent property taxes, interest, fees, and costs.

Pursuant to F.R.S. 197.562 the owner shall be entitled to immediate possession of lands described in the deed. If the person occupying the property refuses to grant possession the owner of the tax deed may apply to the Palm Beach County Florida Circuit Court for a writ of assistance up 5 days' notice directed to the person refusing to deliver possession. The court will then direct the sheriff to put the owner of the tax deed in possession of the lands.

Unsold Tax Lien Certificates

Pursuant to F.R.S. 197.432(5) unsold Palm Beach County Florida tax lien certificates that receive no bids are sold to Palm Beach County Florida at 18%.

In accordance with F.R.S. 197.4725 any person may purchase Palm Beach County Florida tax lien certificates at any time after the Florida tax lien certificate is issued but before a tax deed application is made.

The purchaser of the Palm Beach County held Florida tax lien certificate must pay the Palm Beach County Florida Tax Collector the face amount plus all interest, costs, and charges or, subject to F.R.S. 197.472(4), the part described in the tax lien certificate.

In accordance with F.R.S. 197.4725(2) interest on the Palm Beach County held Florida tax lien certificate shall be calculated at 1.5 percent per month, or a fraction thereof.

The date that the new Florida tax lien certificate is purchased is the date for use in calculating the interest or minimum interest due if the certificate is redeemed.

The date the Palm Beach County held Florida tax lien certificate was issued to Palm Beach County Florida is the date for use in determining the date on which an application for tax deed may be made.

Unsold Tax Deed Properties

In accordance with F.R.S. 197.502(7) Palm Beach County held Florida tax lien certificates for which there were no bidders at the public tax deed sale, the Palm Beach County Florida clerk shall enter the land on a list entitled "lands available for taxes". Any person, the county, or any other governmental unit may purchase the property from the Palm Beach County Florida clerk, without further notice or advertising, for the opening bid.

Tax Sale Warnings and Pitfalls

While it is possible to receive a handsome profit with Palm Beach County Florida tax lien certificates and Palm Beach County Florida tax deed properties it is important to keep in mind it is also possible to incur a substantial loss. Buyer beware, Palm Beach County Florida auctions all types of properties at the Palm Beach County Florida tax sale auction including residential, retail, agricultural, condemned, waste, vacant, industrial and the like.

As with all investments, there is always an element of risk. Even though the interest rates are written into Florida law, mandated by Florida law, and are regulated by Florida law, there is a chance of losing part or all of your investment. You must always try to get the best education and practice safe investing, no matter which investment vehicle you choose.

Palm Beach County Florida Tax Sale Discussion

Below you will find a collection of the latest user questions and comments relating to the sale of tax lien certificates and tax deed properties in Palm Beach County Florida.

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Cities located in Palm Beach County Florida

Source: www.taxlienuniversity.com

Category: Insurance

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