Tax Deed Sales compared to Foreclosures FL

[Annastasia Massey]

Hi! My fiancé and I are currently looking to invest in Fl, and have been looking into tax deed sales. We have bid on several properties at typical foreclosure sheriff sales, so we are familiar with the process of doing title searches before bidding. Would tax deed sales be essentially the same process? 

I have also read that most mortgages or liens get wiped away from a tax deed sale, except those that are through the municipality or county, is that true? What about the aspect of a "clouded title", after purchasing the property? What is the process like for that, and how long does it usually take? 

We are more so interested in fixing up and renting these properties, so flipping in a short amount of time wouldn't be something we would need to worry about. Any information on this process or your experiences with tax deed sales would be so helpful, thank you in advance!

[Fernando Alonso]

Hi Annastasia,

To start off, no—it’s not exactly the same process as a foreclosure or sheriff sale. In Florida, the process begins with the sale of a tax certificate, not the property itself. When someone doesn’t pay their property taxes, the county sells that tax debt to investors in the form of a certificate. That certificate accrues interest, which is repaid either when the property owner redeems the debt or, if they don’t, when the property eventually goes to a tax deed auction. After a certain redemption period -two years- the certificate holder can apply for the property to be auctioned off at a tax deed sale.

Now, if you win a property at a tax deed auction, you're not just paying for the property—you're also stepping into the government's position in enforcing that municipal lien. Regarding liens being wiped: it's mostly true. Most common liens like mortgages, HOA liens, and mechanic's liens are extinguished because the tax deed is a superior lien in Florida. But not everything goes away. Certain municipal liens, like unpaid utility bills, city code enforcement violations, or even local business taxes, may survive the sale if they are senior (Older) to your auctioned tax lien, because they hold the same legal priority as the tax lien itself. Since they're not subordinate, they won't get wiped out automatically.

State and federal liens—like IRS liens or child support claims—can also technically survive a tax deed sale. They’re relatively rare, but still possible, so it’s smart to check all city, county, and clerk records thoroughly. That’s something you’re already doing for foreclosure auctions, so you’re on the right track. With tax deeds, just make sure you’re also pulling records from departments like Code Enforcement and the Utilities Department, since they hold many of the liens that tend to stick.

As for title status: when you purchase through a tax deed, your title isn’t considered clean. It’s what’s called a clouded title, meaning there’s some legal uncertainty. Because of that, most title insurance companies won’t insure the property until that cloud is removed. The standard way to do that is by filing a quiet title action—a civil court process where you legally confirm your ownership and wipe out any potential leftover claims. Once that’s complete, you’ll be able to get title insurance and treat the property like any other piece of real estate. The quiet title process usually takes about 3 to 6 months, depending on how clean the situation is and how busy the courts are.

Now, here’s where your rental strategy really works in your favor. If you’re planning to hold and rent the property long-term, not flip it right away, you may not need to rush into clearing the title. In fact, Florida law includes certain statutes of limitations that, over time, help clear old, unclaimed, or unresolved lien claims from the title. So if you're not in a hurry to sell or refinance, some of those older issues can expire naturally over the years. This makes the long-term buy-and-hold strategy especially attractive for tax deed investors, since you can renovate, rent, and cash flow the property while the legal clock works in your favor.