Tax Certificates: The Simplified Process

When a property owner does not pay property taxes, the government will often file a tax lien against this owner. The government agency will be issuing some sort of public certificate that states the amount of unpaid taxes and certifies that a lien has been placed on the property. Sometimes, a private investor will buy the certificate, so that the government agency can receive some of the money that is owed to them without having to go after the property owner themselves. In this situation, the payment will go to the investor if the property owner eventually pays the tax with interest. However, it is good to keep in mind that there are risks that come with buying tax lien certificates. You should have a basic idea of the process before you enter into it.

After learning about the process and investigating which specific tax liens in which areas hold your interest, you can then attend the lien auction and make the purchase. Make sure that you have everything planned out beforehand in terms of finances. Then, you will want to contact the property owner with respect to that lien. You may need to notify them of your purchase with written communication. Make sure you pay attention to the expiration date on the tax lien, as you will not be able to do anything after this date has passed. Once the owners of the property have paid their taxes, you will be able to collect your money. Commonly you will be contacted by the county, and then you will be able to go into the county office and pick up the money that you are owed.

If you are thinking about starting this process, contact your local Coral Springs tax attorneys to consult for direction on what should be your next step. Our attorneys at Bakalar & Associates will have the expertise and experience that is necessary in order to answer any questions that you might have and guide you through the process as well.