Understanding Tax Sales in Sarasota County, Florida

Sarasota County, Florida, provides opportunities for investors to acquire property liens or even properties themselves through tax sales. These sales are part of the county’s effort to collect delinquent property taxes, and they offer an avenue for investors to participate in property-related transactions. Here’s a breakdown of how tax sales are conducted in Sarasota County.

The Tax Sale Process

In Sarasota County, tax sales are divided into two distinct processes: tax certificate sales and tax deed sales.

Tax Certificate Sales

Each year, property taxes that remain unpaid by March 31 are eligible for a tax certificate sale held around June 1. Check out our Auction Calendar for scheduled auctions. The certificates represent a lien on the property, which investors can purchase by bidding on the interest rate they are willing to accept. Rates start at 18% and decrease as bids are placed. Once purchased, the certificate holder can earn interest until the property owner redeems the certificate by paying the taxes and interest owed. If the property owner fails to redeem the certificate within two years, the holder can apply for a tax deed sale. If no one purchases certificates during the auction, the county takes them at the maximum interest rate of 18%, and you can buy them directly from the Tax Collector later.

Tax Deed Sales

The next step, if taxes remain unpaid after issuing a tax certificate, is holding a tax deed sale. Check out our Auction Calendar for scheduled auctions. The certificate holder must file an application for a tax deed with the Sarasota County Tax Collector, triggering the sale process. The Clerk of the Circuit Court schedules the auction and conducts it online to make it more accessible for bidders. The opening bid includes the amount of unpaid taxes, accrued interest, and fees associated with the sale. The successful bidder must pay the full bid amount within 24 hours after purchasing the property. If the property doesn’t sell at auction, the county adds it to a list of lands available for purchase, allowing buyers to purchase it at the minimum bid price.

Steps to Participate in a Tax Sale

Register Online: Interested participants must create an account on the appropriate auction platform, such as RealTDM, to access and bid on properties. Submit a Deposit: Before participating in an auction, you must submit a deposit of either $200 or 5% of your maximum intended bid, whichever is higher. Payment methods include cash, wire transfer, or certified check. Research Properties: It is the responsibility of bidders to research the properties thoroughly. This includes reviewing title records, assessing the property’s physical condition, and understanding any potential liabilities, such as other liens or zoning issues. Attend the Auction: The county conducts auctions online, allowing bidders to place their bids in real time. Prepare to finalize payment promptly if you win a bid.

Important Considerations

1. Tax deed sales offer properties as-is, with no guarantees about their condition, title, or legal encumbrances. Conducting thorough research is essential before bidding.
2. Bidders must post a deposit in advance, typically the greater of $200 or 5% of their intended maximum bid.
3. Surplus funds from a sale may be available to the former property owner or other parties with a legal claim. For more information, visit the Sarasota Clerk of Court’s website.
4. After purchasing a property, consult an attorney or title company to resolve any remaining title or lien issues.

Useful Links

• Auction Calendar
• Comprehensive Guide to Florida’s Deed Auction Process and Key Requirements
• Discover the intriguing world of Hybrid Auctions
• Discover Tax Deeds and how you can find property for as little as $50! 
• Want to get started with Tax Liens? Watch this video!
• Explore the lucrative world of Florida Tax Liens and Deeds

Need A Hand?

Stay informed by visiting the auction calendar to learn about upcoming tax sales. Don’t miss your chance to explore the opportunities available through Sarasota County tax sales. If you’re unsure about the process or need expert advice, schedule a consultation with a knowledgeable professional who can guide you through each step. Additionally, take advantage of free online resources to deepen your understanding and make well-informed investment decisions.

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