Mo’ Money, Mo’ Money
Here is what I mentioned earlier. If you haven’t been bidding at the tax deed sale, you may not realize the deposit amount for a winning bid has increased. For each piece of property purchased, the successful high bidder is required to pay a non-refundable deposit equal to a minimum of exactly five percent (5%) of the final bid or $200.00, whichever is greater, at the time of the sale. So for example: If you are the high bidder at 10,000, you will be required to pay 5% of that 10,000 right away. In this case 5% of 10,000 is $500. If the 5% amount had been lower than $200 you would be required to pay $200. That’s where the 5% or $200 whichever is greater comes in. You can pay that deposit in the form of cash and/or cashier’s check. Increasing the amount required at opening bid may take some bidders out of the game and it may also reduces the number of properties you choose to bid on since you will need that 5% or $200 amount for EACH property you win at the auction.
In accordance with section 192.0105(3), Florida Statutes, the property owner can redeem his or her property (pay off the taxes) up until the time that the high bidder pays the full payment to the Clerk and the tax deed is issued. This means that you have not truly won the property until your payment is made preventing the homeowner from paying the taxes and keeping their property.
One more thing to remember, if you miss the deadline to get your deposit in electronically for the online sale you can always pay in person. You can make that deposit in person at the Clerk’s Office in the form of cash or cashier’s check no later than 3:00pm on the day before the sale.
Originally posted to Blog on