Sell a Florida Property With Back Taxes or Liens — Before the Tax Deed Sale
Delinquent property taxes, a tax certificate someone else bought, an IRS lien, a judgment, unpaid HOA dues or a contractor’s claim of lien — we buy houses and commercial property with title problems and pay the liens off at closing.
- Liens paid from proceeds
- Tax deed deadlines respected
- No upfront costs to you
- Houses & commercial
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Watch: Sell My Tax-Default Property in Fort Myers
Behind on property taxes? This video explains how back taxes and certificates can be paid off from the sale proceeds at closing.
Unpaid property taxes in Florida don’t lead to a quick knock on the door. They lead to a quiet, step-by-step process: a tax certificate sold to an investor, interest accruing, and eventually a tax deed application that can end in the property being auctioned at the courthouse or online. Along the way, other liens often pile up — a federal tax lien, a credit card judgment, unpaid condo assessments, a roofer who filed a claim of lien after a payment dispute. By the time many owners face these problems together, they’re overwhelmed and the equity they’ve built is at real risk.
Libera Capital Group buys houses and commercial property for cash throughout Florida, with Southwest Florida as our home market. Properties with tax and lien problems are a large part of what we do. Because we pay cash and work with experienced Florida title companies, we can usually close in time to redeem tax certificates before a tax deed sale, pay off or negotiate other liens from the proceeds, and put the remaining equity in your hands rather than leaving it to an auction.
Below we walk through how Florida’s tax certificate and tax deed system works, the deadlines that matter, how other common liens are handled at closing, and why selling before a tax deed sale usually protects much more of your equity. This is general information; for a specific tax, IRS or judgment issue, consult a Florida attorney or CPA.
Why owners with tax and lien problems sell to us
Beat the tax deed clock
Once a tax deed application is filed, you’re working against a sale date. We move quickly so the title company can redeem the certificates and close before the auction.
Keep your equity, not the auction’s
At a tax deed sale, you lose control of the price. A negotiated sale lets you capture the property’s value, pay the liens, and walk away with the difference.
No money out of pocket
You don’t need to come up with cash to pay the tax collector, the IRS or the HOA first. Everything is paid from the proceeds through one settlement statement.
Comfortable with messy title
Multiple liens, old judgments, heirs on title, lis pendens — we’ve seen it. We work with title professionals to sort out what must be paid and what can be released or negotiated.
How does Florida handle unpaid property taxes?
Florida property taxes are governed by Chapter 197 of the Florida Statutes and administered by each county’s tax collector. Understanding the annual cycle helps you see where you are and how much time you have.
The annual tax calendar
Florida tax bills are mailed around November 1 each year. Owners can take an early-payment discount — up to 4% in November, decreasing each month — and the full amount is due by March 31. Taxes not paid by April 1 become delinquent, and interest and advertising costs begin to be added.
The tax certificate sale
Instead of foreclosing directly, Florida counties sell tax certificates for delinquent taxes, typically at an auction held around late May or June (most counties now run them online). A tax certificate is not ownership of your property. It’s a first lien representing the unpaid taxes, and the investor who buys it is effectively paying your taxes in exchange for the right to collect interest. Bidders compete by bidding down the interest rate, starting from a statutory maximum of 18% per year. Florida law generally provides a minimum return to the certificate holder unless the certificate was bid at zero percent.
Redeeming a tax certificate
You — or anyone acting for you, such as a title company at a closing — can redeem a tax certificate by paying the tax collector the face amount plus accrued interest and costs. Redemption is done through the tax collector’s office, not directly with the certificate holder. You can redeem at any time until a tax deed is issued, or until the full amount is paid into the registry before the sale. Each additional year of unpaid taxes can produce another certificate, so the total grows year by year.
Liens that follow the property
Property tax liens in Florida take priority over almost every other lien, including mortgages. That’s why lenders often pay delinquent taxes themselves through escrow advances — and then add the amount to what you owe. If you’re behind on both your mortgage and your taxes, see our page on stopping foreclosure in Florida.
When can a Florida property go to a tax deed sale?
The tax certificate holder can’t take your property right away. Florida law sets a waiting period, after which the holder can apply for a tax deed through the tax collector. This is the point at which delinquent taxes become an urgent threat.
The two-year mark
Generally, a certificate holder may file a tax deed application once two years have passed from April 1 of the year the certificate was issued. To apply, the holder must pay off (redeem) all other outstanding certificates on the property, plus current taxes and fees. Certificates that are never acted on eventually expire — Florida law sets a seven-year limit — but holders of certificates on properties with real equity rarely let them expire.
Notice and the clerk’s sale
After the application is processed, the tax collector certifies it to the county clerk of court, who schedules the tax deed sale and sends required notices to the owner and lienholders, publishes notice in a newspaper, and in many counties posts notice on the property. Most Southwest Florida clerks — including Lee, Collier, Charlotte and Sarasota — conduct tax deed auctions online. Once the sale is held and the tax deed issued, your ownership ends.
The opening bid and homestead
The opening bid at a tax deed sale covers the certificates, interest, costs and fees. For property that has a homestead exemption, Florida law adds an amount based on the property’s assessed value to the opening bid, which provides some protection for homeowners — but it doesn’t guarantee you’ll receive market value. Bidders at tax deed sales are bargain hunters, and many properties sell well below what a negotiated sale would bring.
Surplus funds after a tax deed sale
If the winning bid exceeds what’s owed, the surplus is held by the clerk and distributed under a statutory process to lienholders and then the former owner, who must file a claim. The process has deadlines and paperwork, Florida updated it in recent years, and lienholders get paid first. Even when surplus exists, it’s usually much less than the equity you’d capture by selling the property yourself before the auction — and that’s why we encourage owners to call as soon as they receive a tax deed notice.
Redeeming up to the last moment
Florida allows redemption until the tax deed is issued, subject to specific timing rules around full payment of the sale price. Don’t count on last-minute redemption — the safer approach is to close a sale with enough time for the title company to obtain a redemption figure and pay the tax collector before the sale date.
How are IRS, judgment, HOA and contractor liens handled?
Back taxes rarely travel alone. Here are the other liens we see most often on Florida properties — and how each is typically handled in a sale.
Federal tax liens (IRS)
When the IRS records a Notice of Federal Tax Lien in the county records, it attaches to all of the taxpayer’s property, including real estate. In a sale, the lien generally must be paid in full from proceeds or, if the proceeds aren’t enough, the IRS may agree to discharge the property from the lien through its application process in exchange for payment of whatever equity is available. Discharge requests take time, so start early. A tax professional or attorney should handle communication with the IRS.
Florida Department of Revenue liens
Unpaid state taxes owed by a business — sales and use tax, reemployment tax and others — can result in state tax warrants or liens recorded against the owner’s property. These are especially common with small business owners who also own commercial real estate. They’re paid or negotiated at closing much like IRS liens.
Judgment liens
A creditor who wins a money judgment in Florida can create a lien on real property by recording a certified copy of the judgment in the county where the property is located. Judgment liens generally last 10 years and can be re-recorded to extend them. Florida’s constitutional homestead protection shields a qualifying homestead from most judgment creditors, but title companies still need to address recorded judgments — sometimes by confirming homestead status through an affidavit or court determination, sometimes by obtaining a release or payoff. On non-homestead property such as rentals, second homes and commercial buildings, judgments typically must be paid or negotiated at closing.
HOA and condominium association liens
Under Florida’s homeowners’ association and condominium statutes (Chapters 720 and 718), associations can record liens for unpaid assessments, interest, late fees and collection costs, and can foreclose them. At closing, the title company requests an estoppel certificate from the association showing exactly what’s owed. Special assessments for roof replacement, structural repairs or reserves — increasingly common in Florida condominiums after the state’s post-Surfside safety laws — can be large. We buy condos and townhomes with delinquent assessments and pending special assessments.
Construction liens (claims of lien)
Under Florida’s Construction Lien Law (Chapter 713), contractors, subcontractors and suppliers who aren’t paid can record a claim of lien, generally within 90 days of final furnishing of labor or materials. A claim of lien typically expires after one year unless the lienor files suit to enforce it. After Hurricane Ian, many owners ended up with claims of lien from contractor disputes. These can be paid, bonded off, negotiated, or challenged — your attorney can advise which makes sense.
Code enforcement liens
Recorded code fines from a city or county are another common lien. They often can be reduced once the violation is cured. Our page on code violations and unpermitted work explains Florida’s code lien process.
PACE assessments, utility liens and special assessments
Some Florida homeowners financed roofs, windows or solar through PACE programs, which are repaid as non-ad valorem assessments on the property tax bill. A PACE balance generally needs to be paid off at sale or accepted by the buyer, and most buyers require payoff. Unpaid municipal utility bills and special assessments — such as Cape Coral’s utility expansion assessments — can also be liens. All of these appear in a proper title and municipal lien search.
Mortgages, HELOCs and lis pendens
Of course, mortgages and home equity lines are liens too. If a lender has filed a foreclosure, a lis pendens will be recorded. A sale can still close — the lender is paid from proceeds and the case is dismissed. If the debt exceeds the property’s value, a short sale with lender approval may be required.
How are back taxes and liens paid off at closing?
The mechanics are straightforward once a Florida title company is involved. Here’s how it works in a typical cash sale with liens:
- Title search. The title company searches the county official records for recorded liens, judgments, mortgages and lis pendens, and orders a municipal lien search for code, permit and utility items.
- Tax status. The title company checks the tax collector’s records for current and delinquent taxes and outstanding certificates, and obtains a redemption amount good through the expected closing date.
- Payoffs and estoppels. Payoff letters are requested from mortgage lenders and lienholders, and estoppel certificates from HOAs and condo associations.
- Negotiations, if needed. When total liens approach or exceed the sale price, some lienholders may accept less. We’ll tell you plainly if that’s the situation and help you understand options, but negotiation results are never guaranteed.
- Settlement statement. A single statement lists the price, each payoff, prorated current-year taxes, and your net proceeds.
- Disbursement. At closing, the title company pays the tax collector to redeem certificates, pays each lienholder, records releases or satisfactions, and wires your proceeds.
Florida also charges documentary stamp tax on deeds — $0.70 per $100 of the sale price in every county except Miami-Dade — which sellers customarily pay. When you sell to us, we pay normal closing costs, which keeps more of the equity available to settle liens.
Tax and lien situations we see across Southwest Florida
Southwest Florida’s mix of seasonal owners, investors and older residents creates recurring patterns. Learn more about our home market on the Southwest Florida page.
Out-of-state owners who missed the tax bill
Many owners in Cape Coral, Port Charlotte and North Port live up north. After a mortgage is paid off, there’s no escrow to pay taxes — and if the mailing address is outdated, years of tax certificates can pile up without the owner noticing until a tax deed notice arrives.
Inherited homes with years of unpaid taxes
When an owner dies and probate stalls, taxes and HOA dues often go unpaid. Heirs may discover the property is headed to a tax deed sale. An estate can usually still sell — see our inherited and probate property page for how Florida probate and summary administration fit in.
Storm-damaged properties with contractor liens
After Ian, Helene and Milton, disputes between owners and contractors over scope, quality and insurance payments led to many claims of lien in Lee, Charlotte and Sarasota counties. If your home has storm damage and a contractor lien, we can buy as-is and handle the lien through closing; see hurricane and flood damage.
Condos with assessment liens
In Naples, Fort Myers and Venice, older condominium buildings facing milestone inspections and reserve requirements have levied special assessments that some owners can’t pay. Associations may lien and, eventually, foreclose. A cash sale can resolve the balance before it escalates.
Business owners with commercial property and tax debt
A business that falls behind on sales tax or payroll tax may see state or federal liens attach to the owner’s commercial building. We buy commercial property statewide and can structure a sale-leaseback so the business stays in place while the liens are paid off.
Cost comparison: selling to us vs. listing vs. waiting for the tax deed sale
| Factor | Cash sale to Libera Capital Group | Listing with an agent | Doing nothing (tax deed sale) |
|---|---|---|---|
| Liens and back taxes | Paid from proceeds at closing | Paid from proceeds at closing | Certificates paid from bid; other liens may be wiped or survive |
| Agent commissions | None | Often 5–6% | None, but you lose control of the price |
| Repairs and prep | None — as-is | Often required by buyers or lenders | Not applicable |
| Speed | Often 7–21 days depending on lien payoffs | Often months; risky if a sale date is set | Fixed by the clerk’s schedule |
| Certainty | High — no financing contingency | Moderate — title issues can scare financed buyers | Certain loss of ownership |
| Your equity | You receive net proceeds directly | You receive net proceeds if it closes in time | Only surplus funds, if any, after a claims process |
See the full cash offer vs. listing comparison for more detail.
Our process when there are back taxes or liens
- Tell us about the property and deadlines. Share the address, any tax deed or foreclosure notices with dates, and the liens you know about.
- Get a written cash offer. Typically within 24–48 hours of receiving the information we need. We’ll explain how known liens affect your expected net.
- Title work and payoffs. A Florida title company searches title, orders payoffs and redemption figures, and identifies anything that needs negotiation.
- Close before your deadline. The title company redeems tax certificates, pays each lienholder and sends your proceeds. When title is clear, we can often close in 7–14 days.
More detail: how it works · sell my house fast in Florida.
- Florida taxes become delinquent April 1; tax certificates are sold around late May or June.
- A certificate holder can generally apply for a tax deed two years after April 1 of the issuance year.
- You can redeem until the tax deed is issued, but waiting until the last moment is risky.
- IRS, judgment, HOA, construction and code liens are typically paid or negotiated at closing.
- Selling before a tax deed sale usually preserves far more equity than surplus funds after an auction.
Property types and related situations
Frequently Asked Questions about back taxes and liens in Florida
Can I sell my house if I owe back property taxes in Florida?
Yes. Delinquent taxes and outstanding tax certificates are paid to the tax collector from your sale proceeds at closing. You don’t need to pay them first. The key is closing before a tax deed is issued.
How long before I lose my Florida property for unpaid taxes?
A tax certificate holder can generally apply for a tax deed two years after April 1 of the year the certificate was issued. After the application, the clerk schedules a sale and sends notice. Timing varies by county, so act as soon as you get any notice.
Does the person who bought my tax certificate own my house?
No. A tax certificate is a lien, not ownership. The holder earns interest when the certificate is redeemed and may eventually apply for a tax deed. You keep ownership until a tax deed is issued after a sale.
Can I sell a property with an IRS lien?
Yes. The IRS lien is paid from proceeds at closing. If proceeds won’t cover it in full, the IRS has a process to discharge the property from the lien in exchange for available equity. Work with a tax professional; discharge requests take time.
Is my Florida homestead protected from judgment liens?
Florida’s constitution protects qualifying homestead property from most creditors, including most judgment liens. Title companies may still require documentation confirming homestead status before closing. Consult a Florida attorney about your specific judgment.
What if the liens are more than the property is worth?
Some lienholders may accept a reduced payoff, and mortgage lenders may approve a short sale. We’ll be upfront about whether a deal is feasible. Negotiations aren’t guaranteed, so start as early as possible.
Can you close before a scheduled tax deed sale?
Often, yes, if there’s enough time to complete title work and obtain a redemption amount. When title is clear we can often close in 7–14 days. Call as soon as you receive notice so there’s room to work.
Do you buy commercial property with tax liens?
Yes. We buy retail, office, industrial, mixed-use, hotel and other commercial property with property tax delinquencies, state or federal tax liens, and judgments, and can structure sale-leasebacks for owner-occupied businesses.
How do I find out what liens are on my Florida property?
Search your county clerk’s official records under your name and the property, and check the tax collector’s website for unpaid taxes. Recorded mortgages, judgments, code liens, HOA liens and federal tax liens appear in official records, while open permits and utility balances may require a separate municipal lien search. When you work with us, the title company orders a full title search and shares the results before closing.
Can I sell my house with a judgment lien from a credit card or medical debt?
Yes, judgment liens are paid or settled from the sale proceeds at closing, and creditors sometimes accept a reduced payoff. Judgments recorded with the county clerk attach to non-homestead real estate in that county. Your attorney can request a payoff or settlement from the creditor. If the property is your homestead, special protection rules may apply, so check with a Florida attorney before paying anything.
Can I sell my property with an HOA lien in Florida?
Yes, unpaid HOA or condo dues and the related lien are paid from the sale proceeds at closing. The association’s estoppel certificate shows the exact amount owed, including late fees, interest and attorney fees. Florida associations can foreclose their liens, so selling before collection escalates can protect your equity. If the balance is disputed, your attorney can work with the association before closing.
What happens to a contractor’s lien when I sell my house in Florida?
A valid construction lien must be paid, bonded off or released before the title company will close. Florida construction liens generally expire if the contractor does not sue to enforce them within one year of recording, and an owner can shorten that window in some cases. We review the lien, its recording date and any lawsuit, and your attorney can negotiate or contest it, with the resolved amount paid at closing.
How much will a cash buyer pay for a house with tax liens or other liens?
Liens do not change what the property is worth; we price the house on its condition and comparable sales, and liens are paid from the proceeds. Our offer starts from what comparable renovated homes nearby sell for, minus repairs, holding and closing costs and a margin for risk. Your net is that price minus mortgages, taxes and liens, and we show both numbers in writing before you sign.
Get ahead of the tax deed sale
Request a written cash offer today. We’ll work with a Florida title company to pay off the taxes and liens and put the remaining equity in your hands.