Escrow & Title
In Florida, a property tax certificate sale occurs when:
AA county sells a property with delinquent taxes at auction
BThe county sells the right to collect delinquent property taxes (plus interest) to investors✓ Correct
CFREC sells tax liens on behalf of the state
DA homeowner voluntarily pays taxes in advance
Explanation
When property taxes become delinquent in Florida, the county tax collector sells tax certificates to investors at a tax certificate sale. The investor pays the taxes and earns interest.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
State-Specific Concepts
FREC Regulation
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