What do title companies look for before issuing a policy on a tax deed property?

Tax deeds

Before issuing title insurance on a tax deed property, title companies review the tax deed sale to confirm that the process followed Florida law. This review helps determine whether the property can receive an insurable title without unresolved ownership risks.

Table of contents +

• Proper notice to all required parties
• Compliance with Florida tax deed procedures
• Accuracy of the property description and records
• Whether other liens may still affect the property
• Why this review matters for tax deed investors

Proper notice to all required parties

One of the most important factors title companies review is whether all required parties received notice of the tax deed sale. Under Florida Statute 197.522, notice must generally be sent to parties with a recorded interest in the property, such as:

• The property owner of record
  
• Mortgage lenders
  
• Other lienholders
  
• Additional parties listed in public records

If a required party did not receive proper notice, that party may later challenge the tax deed sale. Because of this risk, title companies carefully review the clerk’s records to verify that the notice process was handled correctly.

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Compliance with Florida tax deed procedures

Florida tax deed sales must follow specific statutory procedures. Title underwriters typically review the tax deed file to confirm that these steps were completed properly. This may include confirming that:

• A valid tax certificate existed for the unpaid property taxes
  
• The certificate holder waited the required statutory period before applying for a tax deed
  
• The tax deed sale was properly advertised
  
• The public auction was conducted by the county clerk

If a significant procedural error occurred during the tax deed process, it could create a defect in the title.

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Accuracy of the property description and records

Title companies also verify that the legal description of the property is accurate and consistent throughout the tax deed process. Errors in the legal description can create confusion about which parcel was actually sold at the auction. Title reviewers often compare:

• The legal description used in the tax deed sale
  
• The description in prior deeds
  
• County property records and parcel data

Confirming that these records match helps ensure the tax deed correctly identifies the property.

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Whether other liens may still affect the property

Although tax deed sales typically eliminate many private liens, some obligations may still affect the property after the sale. Title companies may review the property for surviving obligations such as:

• Municipal code enforcement liens
  
• Community Development District (CDD) assessments
  
• Certain governmental liens

These types of obligations may not be extinguished by a tax deed sale and could affect the property’s marketability.

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Why this review matters for tax deed investors

Because tax deed properties can involve unique risks, title companies typically require additional review before issuing a title insurance policy.

Historically, investors often resolved these concerns through a quiet title lawsuit, which asks a court to confirm ownership.

In many cases today, a tax deed certification review can allow title underwriters to evaluate the tax deed process and determine whether a title policy can be issued without a quiet title action.

Once a title policy is issued, the property is generally considered marketable, making it easier to sell, finance, or develop.

If you have property in Florida and need help with expediting the tax deed certification process, contact Accelerated Title Solutions today.