Clay County Tax Lien Auction: FAQ

LienHub: Clay County Tax Certificate Auction FAQ
Clay County Tax Certificate Sale
Frequently Asked Questions

Modified on April 9, 2021
 
This information has been compiled to answer the most frequently asked questions about delinquent real estate taxes and the sale of tax certificates on the internet.

  1. WHEN ARE REAL ESTATE TAXES AND NON-AD VALOREM ASSESSMENTS DUE IN FLORIDA?
  2. WHAT HAPPENS WHEN REAL ESTATE TAXES AND NON-AD VALOREM ASSESSMENTS BECOME DELINQUENT?
  3. ARE DELINQUENT TAXES PUBLICIZED?
  4. WHAT DOES THE NEWSPAPER AD CONTAIN?
  5. WHAT ARE "TAX CERTIFICATES"?
  6. HOW DOES SOMEONE ACQUIRE A TAX CERTIFICATE?
  7. WHO MAY PARTICIPATE IN THE TAX CERTIFICATE SALE?
  8. WHAT DO I DO IF I FORGET MY PASSWORD?
  9. WHAT IS AN INTERNET AUCTION?
  10. HOW DOES THE BIDDING PROCEED?
  11. WHEN ARE MY BIDS DUE?
  12. WHAT EQUIPMENT OR SOFTWARE DO I NEED TO BE ABLE TO PARTICIPATE?
  13. WHO WILL SHOW ME HOW TO USE THE INTERNET AUCTION SYSTEM?
  14. WHAT IS A BATCH?
  15. WHAT IS PROXY BIDDING?
  16. WHEN DO THE BIDDERS HAVE TO PAY THE AMOUNT DUE FOR THEIR PURCHASES?
  17. WHAT IS AN ACH DEBIT?
  18. WHAT HAPPENS TO MY SECURITY DEPOSIT IF I DONT WIN ANY CERTIFICATES IN THE AUCTION?
  19. HOW DOES THE HOLDER OF THE CERTIFICATE RECEIVE THE INTEREST INCOME?
  20. CAN INTEREST RATES BE CHANGED AFTER THE BID?
  21. WHY WOULD A CERTIFICATE BE CANCELED OR REDUCED?
  22. ARE TAX SALE CERTIFICATES TRANSFERABLE?
  23. WHAT ABOUT TAX CERTIFICATES ISSUED TO THE COUNTY?
  24. WHAT IS THE "LIFE" OF A TAX CERTIFICATE?
  25. WHAT IS THE TAX DEED PROCESS?
  26. CAN HOMESTEAD PROPERTY BE SOLD BY TAX DEED?
  27. WHO CONDUCTS THE TAX DEED SALE?

 
1. WHEN ARE REAL ESTATE TAXES AND NON-AD VALOREM ASSESSMENTS DUE IN FLORIDA? top
Real Estate taxes and non-ad valorem assessments are due each calendar year and are payable November 1 (or later if the tax roll is not certified by the Property Appraiser early enough to meet that date). The taxes become delinquent April 1 of the following year.
 
2. WHAT HAPPENS WHEN REAL ESTATE TAXES AND NON-AD VALOREM ASSESSMENTS BECOME DELINQUENT? top
3% interest (18% per annum for 2 months) plus advertising cost is added when payment is made in April or May. The Tax Collector is required to conduct a sale of tax certificates to collect the preceding year's unpaid real estate taxes. The sale must start on or before June 1, unless a late tax roll makes this impossible.
 
3. ARE DELINQUENT TAXES PUBLICIZED? top
The Tax Collector must advertise the delinquent taxes in a general circulation newspaper. The Board of County Commissioners chooses the newspaper. The advertisement is printed weekly, three times prior to the tax certificate sale.
 
4. WHAT DOES THE NEWSPAPER AD CONTAIN? top
The place, date and time of the tax certificate sale. A listing of each parcel showing the delinquent tax amount, the property owner's name, and the property control number. The parcels are consecutively numbered for reference during the sale. The delinquent tax amount (certificate's face amount) consists of the sum of the following: real estate tax and non-ad valorem assessment amount, interest (3% for months of April and May), Tax Collector commission (5%), newspaper and internet advertising charges and a fee for the cost associated with the sale of tax certificates on the internet.
 
5. WHAT ARE "TAX CERTIFICATES"? top
They are a first lien on the real estate. Buyers are provided a certificate of ownership and a listing of all certificates purchased.
 
6. HOW DOES SOMEONE ACQUIRE A TAX CERTIFICATE? top
At the public auction conducted on or before June 1st of each year. The auction is called a Tax Certificate Sale.
 
7. WHO MAY PARTICIPATE IN THE TAX CERTIFICATE SALE? top
Anyone. To participate in the sale a bidder must register with the Tax Collector's office via the LienHub.com web site. A bidder number is assigned for identification purposes during the sale. Bidders are required to make a deposit via ACH Debit on the LienHub.com Payments Page that is 10% of the estimated amount they intend to purchase. The deposit may be increased any time prior to the close of the auction.
 
8. WHAT DO I DO IF I FORGET MY PASSWORD? top
Click Sign in and then Forgot your password? on the LienHub.com home page. Answer a few questions and the system will send you a temporary password via email.
 
9. WHAT IS AN INTERNET AUCTION? top
An auction in which bids are transmitted and received through the Internet using a computer and a web browser.
 
10. HOW DOES THE BIDDING PROCEED? top
Each item is auctioned in the order listed in the publication. The bidding begins at 18% (the maximum rate) and is bid down. The "winning" bidder's number and rate of interest are recorded. Any item not bid upon is "struck" to the County.
 
11. WHEN ARE MY BIDS DUE? top
Bids can be submitted on the web site once the Advertised List is published on the Internet, usually in early May. The advertised list will be divided into 8 batches. Bids can be withdrawn or altered at any point up to the closing of the Batch on the day of the sale.
 
12. WHAT EQUIPMENT OR SOFTWARE DO I NEED TO BE ABLE TO PARTICIPATE? top
In order to use the auction web site you need an Internet connection and modern web browser with JavaScript and cookies enabled.

Many people choose one of the following freely available browsers:

13. IF I HAVE A QUESTION ABOUT HOW TO USE THE WEB SITE, WHO DO I CONTACT?top
Contact Grant Street Group by email at [email protected], or by phone at (866) 247-4370, between 8:00 a.m. and 5:00 p.m. EST on business days.

14. WHAT IS A BATCH? top
A Batch is an auction subgroup of the Advertised List that serves as a means of organizing tax certificates for the purpose of facilitating bid submission. Each tax certificate in each Batch is auctioned independently of every other tax certificate and arranged in sequential order with a unique auction closing time for each Batch.
 
15. WHAT IS PROXY BIDDING? top
In a live auction, bidders will lower their bids by quarter percent increments until they are the only bidders left or until the interest goes below their acceptable minimum level, at which point they would drop out. Proxy bidding is a form of competitive sale in which bidders enter the minimum interest rate that they are willing to accept for each certificate. The auction system acts as an electronic agent, submitting bids on behalf of each bidder. The result of the proxy system is that the electronic agent keeps lowering the bid to submit by quarter percent increments until you are either the only bidder left, (in which case you get the certificate at a quarter percent lower than the previous bid) or until you reach the floor you have set. Zero percent bids will not be treated as proxy bids. They will be awarded at zero.
 
If you are the only bidder on a given certificate and your minimum rate is greater than zero percent, the electronic agent will submit a bid of 18% on your behalf.
 
In the case of a tie at the winning bid rate, the system awards to one of the tie bidders through a random selection process using a random number generator.
 
In no case will bidders be awarded certificates at rates lower than their specified minimum acceptable rates.
 
Certificates that receive no bids will be struck to the county at 18%.
 
16. WHEN DO THE BIDDERS HAVE TO PAY THE AMOUNT DUE FOR THEIR PURCHASES? top
Bidders will receive an email invoice on May 27 indicating the total amount due, if any.  Payment must be made by ACH. The balance due for your purchases will be automatically debited from the bank account you designated as your "Final Payment Account" at the designated Final Payment Deadline. If you wish to manually make your payment prior to the Final Payment Deadline, please go to the "Payments and Budget" page under "My Account" and click "Pay for Certificates". The button is activated once the last batch in the sale closes and any final data updates are complete. The deadline to pay is listed on the Auction Schedule. If your final payment is returned as invalid for any reason, you may forfeit your security deposit and certificate purchases.
 
17. WHAT IS AN ACH DEBIT? top
An ACH debit is an electronic payment from your checking or savings account. When you enter your bank account information and submit payment on the auction web site, you are authorizing the tax collector to debit your account for the amount you indicated. All payments are sent for processing immediately. Additional information is available on the page where you authorize payment.
Funds must be drawn from a US financial institution. Some types of money market, brokerage, and/or trust accounts cannot accept ACH debits. Please check with your financial institution prior to initiating payment on the web site.

18. WHAT HAPPENS TO MY SECURITY DEPOSIT IF I DONT WIN ANY CERTIFICATES IN THE AUCTION? top
Refunds for unused portions of the deposit will be issued via ACH by the Tax Collector to your bank account.  Refunds will be issued on or about June 4, 2021.  You will be notified via email when your refund has been issued.
 
19. HOW DOES THE HOLDER OF THE CERTIFICATE RECEIVE THE INTEREST INCOME? top
The Tax Collector remits the principal (face amount of certificate) and the interest earnings when the property taxes are eventually paid or when a Tax Deed is executed.
 
20. CAN INTEREST RATES BE CHANGED AFTER THE BID? top
When a certificate is redeemed and the interest earned is less than 5%, a mandatory charge of 5% is due. This applies to all certificates except those with an interest rate bid of 0%. If a certificate should be canceled or reduced, the interest earned will be 8% per year, simple interest or the rate of interest bid at the tax certificate sale, whichever is less on the canceled or reduced amount. Bankruptcy rulings may also affect interest rates.
 
21. WHY WOULD A CERTIFICATE BE CANCELED OR REDUCED? top
To correct errors, omissions, or double assessments and when ordered by a court.
 
22. ARE TAX SALE CERTIFICATES TRANSFERABLE? top
Certificates may be transferred by contacting the Tax Collector's office, completing an endorsement form, and paying the applicable fees.
 
23. WHAT ABOUT TAX CERTIFICATES ISSUED TO THE COUNTY? top
County-held tax certificates, other than those on homestead real estate under $250.00, may be acquired by individuals after the close of the tax sale. The Tax Collector will announce the date(s) these certificates become available.
 
24. WHAT IS THE "LIFE" OF A TAX CERTIFICATE? top
Certificates are dated as of the first day of the sale and are null and void seven years from the date of issuance. When two years have elapsed since April 1 of the year of issuance, the holder of a tax certificate may submit a Tax Deed Application to the Tax Collector.
 
25. WHAT IS THE TAX DEED PROCESS? top
Any certificate holder, other than the county, making application for a Tax Deed, must pay the Tax Collector a title search fee, an application fee, and the amount required for redemption of all other outstanding tax certificates, interest, omitted taxes and current taxes. The executed application forces the sale of the property at public auction.
 
26. CAN HOMESTEAD PROPERTY BE SOLD BY TAX DEED? top
Yes; but the opening bid must be increased by one-half of the assessed value of the property.
 
27. WHO CONDUCTS THE TAX DEED SALE? top
The Clerk of the Circuit Court. The Tax Deed is issued to the highest bidder. The opening bid must cover all the costs paid by the tax deed applicant plus all other costs for conducting the sale. The title-holder of record has the right to redeem the property, prior to the issuance of a Tax Deed, by paying the Tax Collector all previously described costs.
 
 
 
Diane Hutchings
Tax Collector
Clay County
477 Houston Street
P. O. Box 218
Green Cove Springs, FL  32043
 
 
In accordance with the provisions of ADA, this document may be requested in an alternate format.
Contact the Tax Collector's Office at (904) 284-6329 or (904) 269-6329.

The offer or sale of vacant residential lots or parcels in a subdivision may be subject to the Land Sales Practices requirements of Chapter 498, Florida Statutes, and may require you to be registered with Florida Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes. As a point of information, an individual (who is not a developer is allowed to buy a tax deed for only one lot in a planned subdivision for the purpose of resale. Section 498.025(1), Florida Statutes states: The provisions of this chapter do not apply to: (a) the offer or disposition of an interest in subdivided lands by a purchaser for his or her own account in a single isolated transaction. The Bureau of Florida Land Sales has stated that its concerns are with providing disclosure to persons who are successful bidders; and who after two years apply for a tax deed, and who at the courthouse public auction obtain multiple tax deeds, for the purpose of resale to multiple purchasers. A seller of lots in property subdivided or proposed to be subdivided into 50 lots or more is required to be registered with the Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums, and Mobile Homes. Also, if a certificate holder purchases 5 certificates in subdivision that contains 25 or more lots, and eventually obtained 5 tax deeds, he would be subject to the provisions of section 498.022, Florida Statutes, regarding standards for transacting land sales. Therefore, it is recommended that, when purchasing certificates on lots or parcels in a subdivision, the Department of Business and Professional Regulation, Division of Florida Land Sales, condominiums, and Mobile Homes be contacted at (850) 487-1395 to ascertain your responsibility with regard to subsequent sales transactions of lots in that subdivision.

 

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