Possession after aquiring a Florida Tax Deed

[Bob Jones]

I am new to tax deed investing and am researching a non homesteaded condo that was used as a furnished rental and not the permanent residence of the owner. Wondering if I was to successfully acquire the deed what I would need to do to take possession? I.e. do I need to ask the previous owners nicely for the key or am I entitled immediate entry (drill out the lock, new locks etc..).

per 197.562 it sounds like I can access the property immediately..

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0100-0199/0197/Sections/0197.562.html

any thoughts?

[Kyle Meyers]

You may need to evict them first once you get possession. Check your state's laws, but they may become your tenant when you become the owner. If they have personal property in there you will need to find out the laws about storing or disposing of that.

[Sherry Lewis]

You should have the right of possession, please read below..

197.562 Grantee of tax deed entitled to immediate possession. Any person, firm, corporation, or county that is the grantee of any tax deed under this law shall be entitled to the immediate possession of the lands described in the deed. If a demand for possession is refused, the purchaser may apply to the circuit court for a writ of assistance upon 5 days' notice directed to the person refusing to deliver possession. Upon service of the responsive pleadings, if any, the matter shall proceed as in chancery cases. If the court finds for the applicant, an order shall be issued by the court directing the sheriff to put the grantee in possession of the lands.

The only thing I would caution on is making absolutely sure (speak to the county office offering the deed) that the mortgage company does not maintain a lien position once the deed is sold. You don't want to get rights to a property with a 200k mortgage attached to it. You need to do normal due diligence as well to make sure their are no other liens i.e. mechanic liens etc. against the property that do with the deed.

Hope this helps!

[Bob Jones]

Thanks Kyle and Sherry.

Eviction was really what I was refering too. I.e. do I have to evict someone that doesn't reside there (assuming they don't have a rentor at the time). In other words, do they need to give me the keys to the place or by not giving me the keys they are "refusing my demand for possession".

Sherry, based on my research a mortgage is an inferior lean and not transferable to the tax deed holder. Only superior leins transfer.

[Sherry Lewis]

You could probably get your answer easily by calling the county that holds the tax deed. Since the owner is not residing there they may say you have to store their property for a certain length of time. Another thought... If you are looking to rent it out as well and the furniture is decent, you can always contact the owner directly after the tax deed sale. Let them know they need to remove the property OR offer to purchase the property from them. This could solve having to store it and give them a little money. If this isn't their primary residence I doubt they have use for the furniture anyway. It could save you a step.

It sounds like you are doing your research, just make sure what ever you do, not to miss any steps in the due diligence process. Also check with the county to make sure there are no "county, state or government liens" that will convey... i.e. water bills, lawn care, code violation penalties etc. I purchased through a tax deed sale. I paid for everything then got hit with the current years tax bill (which came out 10 months before I bought the property) and lawn and sewage fees. Almost 4k in additional expenditures that I was not expecting. I believe any government office lien is considered a superior lien in Florida. Where is Longwood? Are you in southern Florida?

[Bob Jones]

Cool thanks again. Yes any gov't lien is superior for wich this property has none :). Auction is a few days away so chances are it is going to be redeemed but its been a fun research project.

Longwood is north of Orlando (~half way to Daytona on i-4).

[Sherry Lewis]

Excellent! Good luck to you Bob! If you are ever interested in checking out properties with potential in the Panhandle area let me know. Always looking for folks to partner with! I sent you a colleague request so we can PM and keep in touch! Let us know how your auction goes!

[George P.]

My attorney advised to first try "cash for keys". If the tenant refuses, proceed with eviction (will cost more money and take more time). You DO NOT want to keep existing tenants - cause once you accept the rent payment, you create a tenant-landlord relationship. As a result you get on the hook for everything that might have been wrong with the property (i.e. lead paint issues etc).

[Steve Babiak]

Originally posted by Kyle Meyers:

You may need to evict them first once you get possession. ...

There is a bit of contradiction in terms in the quoted statement. If you have possession, there is no need to evict - eviction is your legal action to gain possession. If some occupant has possession and you have ownership, then eviction of the occupant would be required for you to gain possession (unless you get the occupant to voluntarily surrender possession).

[Kyle Meyers]

Steve,

Thank you for clarifying. I was trying to say once you possess the deed, it would have been better phrased as once you have ownership.

[Jerry R.]

Sounds like possession is not a problem since the condo was a rental and not leased. If I were sure about that, I would immediately replace the locks and take possession to stake my claim.

If you are not sure, then you may have to evict. Is there any mail being delivered there?

Bigger issue may be the condo association. Although they do not have lien priority, they may be a bear to deal with if they don't get their money. Also, although mortgage liens are wiped clear, don't expect a mortgage company to lose a lot of money without giving up a fight.

[Kyle Meyers]

Jerry,

I am not an attorney, but I believe if the property is not abandoned, which I would not consider it to be if they have furniture in there, you must get the resident out before you can take possession of the property.

[Jerry R.]

Hi Kyle,

I re-read the original post. Based on that post, no one resides there. I see abandoned property with furniture in it all the time. However, this does sounds like a good question for an attorney.

[Joe Mclain]

I would change the locks if I were you.   You need to control as the owner who has the keys to your investment.    Best of luck

Joe