Why You Should Run a Title Search Before Buying Property at Auction in Florida
That Florida auction property may look like an incredible deal. But before you bid, there is an important question to answer:
What exactly are you buying?
A low auction price does not necessarily mean a property has a simple title. Depending on the type of sale and the property’s history, there may be mortgages, liens, judgments, easements, restrictions, governmental interests, association matters, or other title issues that deserve investigation.
Running a title search before buying property at auction in Florida can help you understand the public record before you commit your money.
At Title Company of Florida, we assist Florida real estate investors, auction buyers, Realtors, lenders, attorneys, buyers, and sellers with title and closing services throughout Florida.
Why Run a Title Search Before a Florida Property Auction?
Auction buyers often focus on the opening bid, estimated property value, repairs, resale value, and potential profit.
Those numbers matter, but title should be part of your due diligence too.
A title search may identify recorded matters such as:
- Current and prior ownership
- Recorded mortgages
- Mortgage assignments
- Mortgage satisfactions
- Judgments
- Recorded liens
- Foreclosure filings
- Lis pendens
- Probate-related documents
- Easements
- Restrictions and covenants
- Other recorded matters affecting the property
Finding these issues before bidding gives you an opportunity to investigate them before becoming the winning bidder.
Do All Liens Disappear After a Florida Property Auction?
No. You should not assume that every mortgage, lien, judgment, or other interest automatically disappears simply because a property is sold at auction.
The effect of an auction sale on a particular interest can depend on the type of auction, the foreclosure or tax deed proceeding, the parties involved, priority, notice, applicable law, and the specific facts of the transaction.
This is one of the biggest reasons to perform appropriate title research before you bid.
Foreclosure Auction vs. Tax Deed Auction in Florida
Not every Florida property auction works the same way.
Two common types of auctions are:
- Mortgage foreclosure auctions
- Tax deed sales
The title considerations can be different for each.
A foreclosure sale generally arises from a legal action involving a mortgage or other lien being foreclosed. A tax deed sale arises from delinquent property taxes and Florida’s tax certificate and tax deed process.
Because the underlying proceedings are different, buyers should not assume that the same title rules apply to every auction.
Title Search Before a Florida Foreclosure Auction
Before bidding at a foreclosure auction, research the property and the foreclosure proceeding carefully.
A title search may help identify:
- The current property owner
- The mortgage being foreclosed
- Other recorded mortgages
- Recorded liens
- Judgments
- Assignments
- Prior deeds
- Other parties with recorded interests
You may also want appropriate legal review of the foreclosure case itself, including the parties and documents filed in the proceeding.
A title search provides important information, but it should not be confused with legal advice regarding the effect of a particular foreclosure judgment or sale.
Title Search Before a Florida Tax Deed Sale
Tax deed properties can attract investors because the opening bids may appear low compared with the property’s potential market value.
However, tax deed purchases can involve specialized title considerations.
Florida law addresses the effect of tax deeds on different interests, and certain governmental liens, easements, restrictions, and other interests may require particular attention.
Before bidding on a Florida tax deed property, consider researching:
- Current and prior ownership
- The tax deed proceeding
- Recorded mortgages
- Recorded liens
- Judgments
- Governmental interests
- Easements
- Restrictions
- Other recorded matters affecting the property
Professional title and legal assistance may be particularly valuable when evaluating a tax deed purchase.
What Should You Look for in an Auction Property Title Search?
A Florida auction property title search may involve several different categories of records.
1. Current Ownership
Confirm who currently holds record title to the property and compare that information with the parties involved in the auction proceeding.
2. Prior Deeds
Review prior deeds to understand how ownership transferred over time and identify potential issues in the chain of title.
3. Mortgages
Search for mortgages recorded against the property and determine whether corresponding satisfactions, releases, or other relevant documents appear in the public record.
4. Liens
Look for recorded liens that may require additional investigation.
5. Judgments
Search relevant names for recorded judgments and determine whether additional analysis is necessary.
6. Easements and Restrictions
Review recorded easements, declarations, restrictions, and covenants that may affect use or access.
7. Property Taxes
Review the appropriate county tax records and understand the property’s tax status.
Don’t Search Only the Property Address
One common mistake is assuming that typing a street address into a public records website constitutes a complete title search.
It does not.
Some records may be indexed under the names of individuals or entities rather than the property’s street address.
A proper search may require researching multiple names, deeds, recording references, legal descriptions, and other records.
Check the Chain of Title
The chain of title shows how ownership of the property transferred from one party to another.
Potential concerns can include:
- Missing deeds
- Name discrepancies
- Incorrect legal descriptions
- Estate or probate issues
- Trust ownership
- LLC or corporate ownership
- Potential gaps in ownership history
Auction properties may have complicated histories, making this research particularly important.
What About HOA and Condominium Liens?
If the auction property is located within a homeowners association or condominium association, additional research may be appropriate.
Association-related obligations can be complicated, and the amount ultimately associated with a property may not always be determined simply by locating a recorded lien.
Before bidding, consider investigating the association, recorded documents, and any available information regarding outstanding assessments or other obligations.
What About Municipal Liens and Code Violations?
A traditional title search and a municipal lien search are not necessarily the same thing.
Depending on the property, additional due diligence may be appropriate for:
- Code enforcement matters
- Municipal liens
- Open or expired permits
- Utility balances
- Special assessments
- Other municipal matters
These issues can be especially important when purchasing distressed or neglected properties.
What About Vacant Land Purchased at Auction?
Vacant land can present additional due diligence concerns.
In addition to researching ownership, mortgages, liens, and judgments, buyers may want to investigate:
- Legal access
- Access easements
- Utility easements
- Drainage easements
- Recorded restrictions
- Declarations and covenants
- Legal descriptions
- Other matters affecting use of the property
Buying land does not automatically mean you can access, build on, or use it exactly as expected.
Can You Do Your Own Title Search Before an Auction?
Yes. Many Florida counties provide online access to Property Appraiser records, Official Records, Clerk of Court records, and Tax Collector information.
DIY research can be useful for preliminary due diligence.
However, locating a document and determining its effect on title are two different things.
You may find a mortgage, lien, judgment, deed, foreclosure filing, or probate document without knowing whether it will affect your ownership after the auction.
That is where professional title research and, when appropriate, legal advice can become valuable.
How to Research a Florida Auction Property Before Bidding
A preliminary due diligence process may include:
- Identify the exact property and parcel number
- Search the county Property Appraiser
- Locate the current deed
- Review prior deeds and ownership history
- Search recorded mortgages
- Search mortgage satisfactions and releases
- Search liens
- Search judgments
- Review the foreclosure or tax deed proceeding
- Check property taxes
- Review easements and restrictions
- Investigate municipal matters
- Investigate association matters when applicable
- Obtain professional assistance when appropriate
Florida Auction Property Due Diligence Checklist
- Confirm the property address
- Confirm the parcel identification number
- Confirm the legal description
- Identify the current owner
- Review the current deed
- Review the chain of title
- Search mortgages
- Search satisfactions and releases
- Search recorded liens
- Search judgments
- Review applicable court records
- Check property taxes
- Review recorded easements
- Review recorded restrictions
- Investigate HOA or condominium matters
- Investigate municipal matters
- Consider professional title review before bidding
Winning the Auction Is Only the Beginning
Auction investors naturally focus on winning the property at the right price.
But the winning bid is only one part of the investment.
The property’s title, condition, occupancy, access, taxes, association obligations, municipal matters, and potential legal issues can all affect the true cost of the investment.
A $75,000 property is not necessarily a $75,000 investment.
Understanding the title before bidding can help you evaluate the deal with more information.
Learn More About Florida Title Searches
Want to learn how title searches work?
How to Do a Title Search in Florida: Step-by-Step Guide
You can also read:
Florida Property Title Search: How to Check a Property Before You Buy
Frequently Asked Questions
Should I get a title search before bidding at a Florida property auction?
Appropriate title research before bidding can help identify recorded mortgages, liens, judgments, ownership issues, easements, restrictions, and other matters that may require additional investigation.
Do liens disappear when a property is sold at auction in Florida?
Do not assume that every lien or interest automatically disappears. The effect of a sale on a particular interest depends on the type of auction, proceeding, parties, priority, notice, applicable law, and other circumstances.
Can I search an auction property’s title myself?
Many Florida public records are available online, allowing investors to perform preliminary research. However, determining the legal effect of the documents you find may require professional title or legal assistance.
Is a foreclosure auction the same as a tax deed sale?
No. Mortgage foreclosure auctions and tax deed sales arise through different legal processes and can involve different title considerations.
Does a title search guarantee an auction property has clear title?
No. A title search is a review of relevant records. It is not itself a guarantee or title insurance policy.
Should I check HOA or condo balances before bidding?
If the property is within an HOA or condominium association, association-related obligations should be part of your due diligence. Determining the amount or effect of those obligations can require additional research beyond a basic title search.
Need a Title Search Before Bidding on a Florida Property?
Title Company of Florida assists real estate investors, auction buyers, Realtors, lenders, attorneys, buyers, and sellers with title and closing services throughout Florida.
If you’re considering an auction property, foreclosure, tax deed property, vacant land, or another real estate investment, title research can help you better understand the public record before you commit your money.
Research first. Bid second.
Contact Title Company of Florida