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Property Taxes Frequently Asked Questions
Tax Certificate FAQs
Certificate Buyers need to be aware that there are inherent risks involved in purchasing tax certificates. Broward County Revenue Collection does not guarantee the condition of any property or title with respect thereto. The risks are borne by the certificate holder. Do your research before investing and purchasing.
Please also note - Broward County DOES NOT guarantee eventual payment of tax certificates.
Q. What is a Tax Certificate?
A. An interest bearing first lien representing unpaid delinquent real estate property taxes which are offered for sale by Broward County Revenue Collection through competitive bid to pay delinquent taxes. Tax certificates are not "recorded" liens nor are they reported to any credit bureaus. They are a "first" priority lien.
Q. What rights to the property does a certificate owner have?
A. A. None. You have NOT purchased property. A tax certificate is an investment. This investment does not convey any rights or ownership to the certificate holder. Please note - Broward County does not guarantee eventual payment of tax certificates.
Q. Does Broward County have "live" sale or an on-line sale?
At this time, Broward County conducts a "live" tax certificate sale.
Q. What is the date, time, and location of your tax sale?
A. Our Tax Certificate Sale takes place every year on or before June 1, in compliance with Florida Statutes (197.432 F.S.). The date, time and location of the Tax Sale will be announced after May 1st. The Tax Sale lasts approximately 5 days, depending on the number of items. Occasionally, there is a second sale in early fall. Please contact our office for information.
Q. What method of payment is accepted?
A. Only cash, cashier checks, wire transfers, and money orders are accepted. Payments can not be made on-line. Payments must be made via wire transfer or in person at the Governmental Center Annex, Room A-100, 115 S. Andrews Avenue, Ft. Lauderdale, Florida during regular business hours of 8:30 a.m. to 5:00 p.m.
Q. Where and when will the auction be advertised and how often?
A. The listing of unpaid taxes is published in the Daily Business Review on or about May 1. The list is published three times in May. The Daily Business Review can be contacted at: 633 South Andrews Avenue, Fort Lauderdale, FL 33301 Phone: 1-800-777-7300 or 954-468-2600 or via the internet at www.dailybusinessreview.com
Q. How many bidders appear at the auction?
A. There are approximately 150-200 bidders present at the auction.
Q. Is the interest rate ALWAYS 18% on a tax certificate?
A. Investors bid the interest rate downward, starting at 18%. Bids are accepted in increments of a ¼ of 1%. Certificates are awarded to the buyer who is willing to pay the taxes, interest and associated costs at the LOWEST rate of interest, which has been ¼ of 1% in the last few years.
Q. When do I register for the tax sale?
A. Buyers may register in person for a buyer number approximately one week prior to the Tax Certificate sale and during the scheduled sale days at Broward County Governmental Center Annex, 115 South Andrews Avenue, Room A-100, Fort Lauderdale Florida 33301.
Q. What are the buyer requirements?
A. The buyer must complete and file form W-9 "Payer's Request for Taxpayer Identification Number and Certification" for each buyer number assigned as all interest will be reported to the Internal Revenue Service.
- A single buyer number will be assigned for each Social Security Number (SSN) or Employer Identification Number (EIN/TIN) provided and must be identical to the name provided on the W-9 form.
- Original proof of either Social Security Number (SSN) or Employer Identification Number (EIN/TIN) is required.
- The name on the EIN/TIN document (SS-4) or SSN form must be identical to what is entered on the W-9 form, without exception.
- For SSNs: The signature on the W-9 MUST be the signature on the SSN document
- For EIN/TINs: The signature on the W-9 MUST be from an officer of the Corporation or LLC, NOT an Agent of the Corporation or LLC. The officer must sign and state his/her position with the Corporation or LLC. Click here for a form W-9. pdf file
If an agent is acting on behalf of one or more investors, he/she must present an original W-9 form and social security number (SSN) or Employer Identification Number (EIN) for each individual investor. The original SSN card or EIN/TIN document for each individual investor must match the W-9. The Agent’s name or signature cannot appear on any documents.
All interest earned will be reported to the IRS on form 1099-int.
A minimum $1,000.00 deposit is required for each buyer number assigned. The deposit shall be cash, cashiers' check, certified check or money order payable to Broward County Revenue Collection. This deposit will be applied to the purchase of tax certificates. If no tax certificates are purchased, the deposit will be refunded approximately 4 - 6 weeks after the completion and balancing of the tax certificate sale. No personal checks, money market account checks or Attorney's Trust account checks will be accepted.
Q. In what order are the properties called?
A. The properties are called in the order they are listed in the advertisement which is the order they appear on the tax roll. Items designated with an asterisk (*) identify properties with homestead. This order will not be changed.
Q. Is payment in full required on the day of the sale?
A. Payments of not less than ten percent (10%) of the total bid made daily by the bidder are required. This ten percent (10%) may include the original $1,000.00 cash deposit. This payment must be made each day on the amount of certificates purchased the prior day, non-sale days excluded. This procedure is necessary to ensure the purchaser will pay for the certificates when delivered.
Q. What if timely deposit is not made?
If a timely deposit is not made, continued participation in the tax sale will not be authorized until the amount is settled.
Q. What happens when the sale is over?
Upon the completion of the tax certificate sale, Broward County Revenue Collection will notify each purchaser when the tax sale electronic listings are ready. This notification will include the balance due and the location where the purchaser can obtain the listing of certificates purchased.
Q. When must the balance be paid?
The balance due must be paid within forty eight (48) hours of the mailing of the notice, (exclusive of holidays, Saturdays and Sundays), and must be certified funds. Wire transfers must be received by Broward County Revenue Collection prior to the deadline
Q. What if I don't pay for my certificates?
A. Failure to pay for ALL certificates awarded will result in forfeiture of ALL certificates and loss of deposit. Those certificates would be re-auctioned at a later time.
Q. How do I get paid?
A. When a certificate has been redeemed (owner, title company or mortgage company pays the outstanding taxes) to Broward County Revenue Collection, the certificate holder is entitled to the face value plus whatever interest the certificate has earned. Proceeds are remitted weekly to the certificate holder. The certificate holder is never paid directly unless it is from a Bankruptcy Trustee. If that happens, the certificate holder must notify Broward County Revenue Collection when he/she is paid in full and request that the certificate be cancelled.
Q. What is the redemption period of a tax certificate?
A. The property owner can redeem a certificate at any time until the property is sold at a tax deed sale OR until the certificate has expired (7 years after the date of issuance).
Q. Can I pay the taxes and own the property?
A. NO. You have not purchased property. A tax certificate is an investment. This investment does not convey any property rights or ownership to the certificate holder. A certificate holder is an investor and the purpose of purchasing certificates is to earn interest on your investment not to get the property.
Q. Can I borrow the keys or make an appointment with Revenue Collection to view the property so that I can look at it before I buy?
A. Revenue Collection is NOT a Real Estate Agency, DOES NOT have the keys to the property and knows nothing about the condition of any property. Do your own research! The Property Appraiser’s office and their website have USE codes and maps. Revenue Collection can only tell you about the taxes that are due. Remember: You are trespassing if you go onto the property.
Q. Do liens follow the property?
A. Government liens always follow the property. It is important to research the payment history and type of property before you bid on certificates.
Q. Are tax certificates always a good investment?
A. The following possibilities, though not inclusive are some of the non-cost recoverable circumstances that could affect the amount of interest you earn on your investment and/or the amount of your investment:
- Owner files bankruptcy (interest could be reduced and/or Trustee will send you $7 per month, etc.)
- Department of Revenue correction on the taxes
- Court orders the omitting of taxes
- Assessed value on the property by the Property Appraiser may be in error and not subject to retroactive correction when the problem is discovered
- Parcel may have had an assessed structure or wood frame home that is subsequently burned down or condemned
- Parcel may have had a mobile home on it at the time of the tax certificate sale which has been removed or destroyed, leaving the property vacant
- A condo that is part of a group of buildings that are later condemned or destroyed.
Q. Does Broward County guarantee payment?
A. Broward County DOES NOT guarantee eventual payment of tax certificates. Risks Exist! You must do your research.
Q. Can I contact the property owner and convince him/her to pay?
A. A certificate holder who initiates, or whose agent initiates, contact with the property owner upon which he or she holds a certificate encouraging or demanding payment may be barred by the tax collector from bidding at future tax certificate sales. Unfair or deceptive contact by the holder of a tax certificate to a property owner to obtain payment is an unfair and deceptive trade practice according to law, regardless of whether the tax certificate is redeemed. Such unfair or deceptive contact is actionable under applicable laws prohibiting fraud.
Neither a certificate holder nor an Agent, can take any action against the property and/or the property owner (direct or indirect) until he or she has held the certificate for twenty-two (22) months. After that period of time, an Application for Tax Deed can be made, which forces the owner to pay the back taxes or the property is sold at a public auction to the highest bidder.
Q. How do I transfer a certificate to another party?
A. Not all certificates can be transferred. Some examples include those properties that have a pending bankruptcy or where a tax deed application has been submitted. If the certificate is eligible for transfer, the seller of the certificate must complete the required paperwork which requires notarization.
The new buyer must be a registered buyer. If the buyer is not a registered buyer, he/she will be required to complete and file form W-9 "Payer's Request for Taxpayer Identification Number and Certification" (TIN) for each buyer number assigned as all interest will be reported to the Internal Revenue Service. A single buyer number will be assigned for each Social Security Number (SSN) or Employer Identification Number (EIN) provided and must be identical to the name provided on the W-9 form. Original proof of either Social Security Number (SSN) or Employer Identification Number (EIN) is required. For TINs: The signature on the W-9 MUST be from an officer of the Corporation or LLC, NOT an Agent of the Corporation or LLC. The officer must sign and state his/her position with the Corporation or LLC. Click here for a W-9 form. (pdf form)
Any change to a tax certificate will constitute a transfer and will be subject to the appropriate fees and paperwork for each certificate bought under that number. The transfer paperwork must be presented to Broward County Revenue Collection along with the fee of $2.25 per certificate before the transfer is valid.
Q. Do you have a mailing list for tax certificate information?
A. Beginning in May, the procedures of the tax certificate sale will be available on our website. The sale schedule and other information will be mailed in the middle of May to anyone who has contacted us or who has participated in a previous tax certificate sale.
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