Tax Certificate Process in Hendry County
A tax certificate is an interest-bearing lien against real estate property for unpaid real estate taxes and non-ad valorem assessments. They are a first lien against property and supersede governmental liens.
Certain risks are involved when purchasing tax certificates. The Tax Collector assumes no liability for the purchase of any tax certificate and does not guarantee the value or condition of the property on which they are issued.
Holding a tax certificate for a property does not convey property rights nor does it entitle the certificate holder to enter the property.
Tax Certificate Sale
Florida Statute Chapter 197, indicates that the Tax Collector must start the tax certificate auction on or before June 1st. The Hendry County Tax Collector holds an online Tax Certificate Sale/Auction. In an online tax certificate sale the bids are transmitted and received through the HCTC Tax Lien site.
Electronic bidding provides numerous benefits to tax certificate investors as well as the citizens of Hendry County. Internet auctions not only increase the speed and efficiency of the tax certificate sale, but ensure the prompt and accurate collection of delinquent tax revenue needed to fund vital county services. In addition, it is a convenient way to invest in tax certificates without leaving the comfort of your home or office.
Tax certificates convey no property rights. They are an interest bearing “lien”. Prior to the auction, the list of delinquent properties is advertised once a week for three consecutive weeks.
The interest on a tax certificate ranges from 0 to 18%. Valid bids may be entered between 0 and 18% in 0.25% increments. If the tax certificate is redeemed after June 1 the tax certificate holder is guaranteed a minimum of 5% interest. Zero percent bids will not earn the 5% minimum interest. Bids are entered and awarded to the buyer with the lowest interest rate bid. Simple interest accrues on a monthly basis. If the tax certificate earns an interest rate of 12%, then interest will accrue at the rate of 1% per month until the tax certificate is redeemed.
Upon redemption of delinquent taxes, accrued interest and advertising costs, the Tax Collector’s office then reimburses the tax certificate holder/investor all monies due.
If you plan to participate in the annual Tax Certificate Sale or to manage existing certificates, please have the following:
- Registration on HCTC Tax Lien site
- Completed IRS Form W-9, required for interest reporting.
- ACH-enable bank account for electronic payments
- Certificate number(s) for redemption inquiries
- Parcel ID or property information for research
- Required funds for bidding or tax deed application fees
Investors are strongly encouraged to perform independent research prior to bidding.
Any tax certificates that were offered for sale during the annual tax certificate sale but not purchased by a third party are issued to the county as county held tax certificates and will become available for purchase at a date to be determined by the Tax Collector.
Upon redemption of delinquent taxes, accrued interest, fees and sale costs, the Tax Collector’s office then reimburses the tax certificate holder/investor the certificate face plus any accrued certificate interest.
If the property owner fails to pay delinquent taxes within two (2) years from the date of delinquency, the tax certificate holder/ investor may file a tax deed application. A tax deed application may result in a Tax Deed Foreclosure so the tax certificate holder may recoup their monies due.
On or before June 1st, the Tax Collector’s office conducts an annual Tax Certificate Sale to allow third parties an opportunity to purchase tax certificates. When a tax certificate is purchased, the certificate buyer pays the Tax Collector the certificate face amount, which includes the following: the unpaid real estate tax from the previous year, 3% delinquency interest on the unpaid real estate tax from the previous year, 5% Tax Collector’s commission (this is against the prior year unpaid tax and 3% delinquency interest), newspaper advertising charge, and other sale costs.
The life of a tax certificate is 7 years. If no action is taken by the tax certificate holder during the 7-year period, and the taxes remain unpaid, the tax certificate is cancelled due to the Statute of Limitation, which will result in the loss of the certificate holder’s investment. In the event of a bankruptcy filing, the life of a tax certificate may be extended.
The Tax Certificate sale is open to anyone. In order to participate in the sale participants must register as a bidder with the Hendry County Tax Collectors office via RealAuction.
Register as a bidder for Hendry County. A bidder number is assigned for identification purposes during the sale.
Complete an IRS W-9 Form. Registered bidders must provide their Federal Taxpayer Identification number or Social Security number. (Section 6109 of the Internal Revenue Code requires you to provide your correct social security number or taxpayer identification number to persons who must file information returns with the IRS to report interest, dividends, and certain other income paid to you. The IRS uses the numbers for identification purposes and to help verify the accuracy of your tax return. In addition, Title 42 U.S. Code, § 405(c)(2)(C)(i) and Florida Statute 119.071(5) govern and authorize the collection of this information by the Tax Collector.)
If you are a registered Tax certificate buyer/investor and need to update your mailing address or change your banking information, please submit the update by signing into your account on RealAuction.
County held certificates may be purchased after the tax certificate sale, prior to redemption or execution of a tax deed. The cost to purchase a county held certificate is the face value of the certificate, accrued interest, and a $6.25 processing fee.
Certificates on properties with homestead exemption and taxes less than $250.00 may not be purchased from the county until the face value of the certificate plus the accrued interest exceed $250.00.
Certain risks are involved when purchasing tax certificates. The Tax Collector assumes no liability for the purchase of any tax certificate and does not guarantee the value or condition of the property on which taxes are a lien. Holding a tax certificate on a parcel does not entitle the purchaser to enter the property. All sales are final.
Interested parties wanting to purchase county held certificates must be a registered buyer. To register and/or purchase county held certificates, please visit our tax auction site.
To purchase county held certificates online. Click here for more information.
A Tax Deed application is an action, initiated by a tax certificate holder. The Tax Deed Application is a legal document that begins the process wherein the Clerk of the Circuit Court sells the property to the highest bidder at public auction. This process is known as a Tax Deed Foreclosure.
Property owners have 2 years from the date taxes become delinquent before they risk loss of their property. As stated in Florida Statute 197.502, after the 2 year period has elapsed and taxes remain unpaid, the certificate holder may file a Tax Deed Application with the Tax Collector’s office.
The statute of limitation on tax certificates is seven (7) years. Therefore, should the taxes remain unpaid and the tax certificate holder does not elect to make an application for tax deed within the seven year period, their investment is lost.
As part of the Tax Deed process, the Clerk of the Circuit Court sets the sale date and notifies the applicant of the additional costs associated with the sale, which the applicant must pay. These additional costs include the advertising cost, mailing cost and the Sheriff’s fees. Please note, the tax deed foreclosure process can take months to complete due to statutory requirements governing tax deed sales. You are encouraged to visit the online sale site prior to bidding on a property to become familiar with the requirements. Click here to learn more about the Tax Deed Sale Process.
The holder of a tax certificate may apply for a tax deed after 2 years have elapsed from the date of delinquency. Prior to applying for tax deed foreclosure, it may be advisable to check for any existing liens on the property. Florida Statute 197.522 , provides that unsatisfied Governmental Liens shall survive the issuance of a tax deed.
The statute of limitation is seven (7) years on all tax certificates.
To apply for a tax deed, the certificate holder must redeem (pay off) all other outstanding tax certificates, pay any other outstanding taxes and fees on the property, and pay for application fees and a title search fee. Fee amounts vary by county. The total amount paid for the tax deed application then accrues interest at 18% per year until the property owner redeems the tax deed or it goes to sale.
How to apply for Tax Deeds:
- Register for a RealTaxDeed Account. If you already have an account for purchasing county-held certificates via RealTDA, you may log in to RealTaxDeed with the same account information.
- Submit your certificate bidder number and corresponding FEIN information to retrieve a list of certificates held by that bidder number in each county. You may add any number of additional bidder numbers to your account.
- Review your list of certificates and select those to submit for deed application by adding them to the RealTaxDeed “shopping cart”.
- Submit payment for the deed applications.
At a later date, the Clerk of the Circuit Court will advise the applicant of the sale date and additional costs, which the applicant must pay. These costs include the advertising cost, mailing costs, and the Sheriff’s fees. The tax deed foreclosure process can take months to complete due to statutory requirements governing tax deed sales The property will be sold to the highest bidder at an online public sale at the County Clerk of Circuit Court’s Tax Deed website located at https://hendry.realtaxdeed.com/
If a property does not sell, the tax certificate holder may take deed to the property. If the property is not saleable, the certificate holder loses the entire tax certificate investment. Buyer Beware.
FAQs
A tax certificate is a first lien against real estate (not the owner) and becomes the basis upon which a tax deed application is filed. The tax certificate sale is NOT a sale of real property, nor does a tax certificate give the certificate holder a direct means to acquire a property. According to Florida Statute 197.432 (13) The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until 2 years after April 1 of the year of issuance of the tax certificate.
It is your sole responsibility to research any tax lien certificates you intend to buy. You can see additional property and tax information for any item by clicking on the Account or Parcel Number on the auction web site. Research any advertised items carefully before submitting bids. There are potential risks associated with tax certificate purchases. All purchases in the tax certificate sale are final.
In early to mid-May each year:
- Items for sale are advertised (in a local newspaper and on the auction website)
- Bidders can begin to register for the sale (submit W-9 forms, pay deposits, get bidder numbers)
- Bidders can begin to submit bids
Starting on, or before, June 1:
- Bid submission ends
- Sale results are generated
For exact dates, please see the Auction Schedule. All activity related to registration, bidding and certificate awards takes place on the auction website.
All bidders who wish to participate in the sale must perform the following steps on the auction web site:
- Obtain a User ID and password for the web site by clicking the “Register” link on the home page and completing the required form.
- Submit an IRS W-9 Form.
- Submit information necessary to process redemption payments by ACH.
- Set a budget amount (the most you are willing to spend in the sale).
- Pay a deposit of at least 10% of your anticipated purchases. Deposits will only be accepted via ACH.
- Please note that you can only submit or modify your W-9, or make a security deposit while a sale is open. You will be assigned a bidder number after you successfully submit your W-9.
When a certificate has been redeemed, the certificate holder is entitled to the face value plus whatever interest the certificate has earned.
Certificates are redeemed when the owner, title company or mortgage company pays the outstanding taxes, or when the holder of a certificate on the same parcel (from a different tax year) redeems it as part of a tax deed application.
Redemption proceeds are remitted to certificate holders by the Tax Collector. The certificate holder is never paid directly unless it is from a Bankruptcy Trustee. If that happens, you must notify the Tax Collector when you are paid in full and request that the certificate be canceled.
NO. You have not purchased property. A tax certificate purchase does not convey any property rights or ownership to the certificate holder.
The holder of a tax certificate at any time after 2 years have elapsed since April 1 of the year of issuance of the tax certificate and before the cancelation of the certificate, may file the certificate and an application for a tax deed with the tax collector of the county where the property described in the certificate is located.
A certificate holder who makes application for a tax deed shall pay the tax collector at the time of application all amounts required for redemption or purchase of all other outstanding tax certificates, plus interest, any omitted taxes, plus interest, any delinquent taxes, plus interest and current taxes, if due, covering the property. In addition, the certificate holder shall pay the costs of resale, if applicable. Failure to pay such costs within 30 days after notice from the Clerk of the Circuit Court shall result in the Clerk of the Circuit Court entering the land on a list entitled lands available for taxes.
The Tax Collector will certify to the Clerk of the Circuit Court a list of all persons required by law to be notified prior to the sale of the property and a certification of monies involved in the application. The tax deed applicant will then be notified of the additional funds needed for advertising and other costs. After all necessary advertising and noticing, the Clerk of the Circuit Court will schedule a tax deed sale date. The tax deed applicant receives 18% per annum interest on the application, beginning the month after application through the month of redemption or tax deed sale date. If the property is purchased by a person other than the certificate holder, the certificate holder will be reimbursed all of the sums paid, including the above referenced 18% interest. For complete rules please see Florida Statute 197.502.
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Our team is here to help make your visit as smooth and stress-free as possible.
Visit one of our convenient Hendry County Tax Collector locations in LaBelle or Clewiston to complete your transaction, or contact us if you have questions about what to bring.
