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Tax deed sales are one of the more misunderstood corners of real estate investing. The process moves through several stages and uses its own vocabulary, but once you see how the pieces fit together, it becomes manageable. This guide covers how these auctions work in Orlando and Orange County, from what a tax deed is to what to expect on sale day.
What a Tax Deed Sale Is
A tax deed sale is a public auction where a county sells a property because the owner stopped paying property taxes. The county is not chasing profit; it is recovering the unpaid taxes.
Florida is a tax certificate state with a follow-on deed sale, so a property does not go straight to auction when taxes go unpaid. There is an earlier step, and it explains why some properties reach the auction while most never do:
- Property taxes are due November 1 and become delinquent on April 1 of the following year.
- The county holds an annual tax certificate sale, usually online by June 1, where investors bid on the right to pay the overdue taxes in exchange for interest.
- The owner has two years to pay back what they owe, plus interest, and reclaim a clean title.
- If the owner still has not paid, the certificate holder can apply for a tax deed, which sends the property to auction.
For a broader primer, see our overview of how to spot a tax deed property for sale.
Tax Certificate vs. Tax Deed: Two Different Things
These two terms get mixed up constantly. A certificate is a lien; a deed is the property itself.
| Feature | Tax Certificate | Tax Deed |
|---|---|---|
| What you buy | A lien on the unpaid taxes | The property itself |
| How you earn | Interest when the owner repays | Equity, resale, or rental income |
| Capital needed | Lower | Higher |
| Main risk | Owner redeems, you only get interest | Title issues and repair costs |
At the certificate sale, bidding runs in reverse: the rate starts at 18 percent and investors compete by accepting a lower one. Our guide to investing in tax delinquent properties breaks down the tradeoffs.
How an Orange County Tax Deed Sale Works
Once a certificate ages past the two-year mark and the holder applies for a deed, the property moves to auction. In Orange County, these auctions are handled by the Comptroller's office and run entirely online through the RealAuction platform.
| Step | What to Expect |
|---|---|
| Where | Online via RealAuction |
| Register and deposit | By 4:00 pm the day before the sale |
| Minimum deposit | $200 or 5% of your highest intended bid |
| Payment of balance | Within 24 hours of winning |
| Extra costs | Recording fees and documentary stamps |
A few details matter. If you do not pay the full balance within 24 hours, you lose your deposit and are banned from bidding for a year. Properties sell "as is," so researching each parcel is on you. Confirm dates and rules on the Orange County Comptroller's tax deed sales page.
Here is a short walkthrough of how these auctions run:
The Redemption Period and Surviving Liens
The redemption period is the window when the original owner can still pay what they owe and keep their property. In Florida, it runs two years from April 1 of the year the taxes first became delinquent, and it does not close until a tax deed is actually issued.
This has two effects for a buyer. While a certificate is in its redemption window, you cannot take possession, repair, or rent the property. And any property that reaches the auction has already survived that window unredeemed, a sign of a distressed situation.
One point catches new investors off guard: a tax deed wipes out most liens, but not all of them.
- Federal tax liens survive for 120 days after the sale, during which the IRS holds a right to redeem.
- Certain government liens, some HOA assessments, and special assessment districts can survive, depending on the situation.
- Title insurance is usually not available until you complete a quiet title action or obtain a tax title certification.
None of this should scare you away; it just means a title search is not optional. Before you bid, confirm the legal description, check the appraiser's value, and look for federal liens or association claims.
How to Find and Research Orlando Tax Deed Properties
Finding the auction list is the easy part. The more valuable work is building a pipeline of leads early, before a property reaches the public sale, by reaching out to owners who are behind on taxes but have not yet lost the property.
This is where good data changes the game. With DealMachine's List Builder, you can pull a targeted Florida tax deed sales list of delinquent and distressed owners across Orange County, then filter by vacancy, equity, and lien status. From there, you can review detailed property data on each lead and reach out directly.
The same approach works beyond Orlando. The workflow for Miami-Dade tax deed sales follows the same pattern, and our playbook on how to find tax lien properties near you covers any market. Get started with DealMachine and build your first Orlando list in minutes.
Frequently Asked Questions
How does a tax deed sale work in Orange County, Florida?
Orange County runs its sales online through RealAuction. You register and deposit by 4:00 pm the day before, bid on properties unredeemed for at least two years, and pay the balance within 24 hours of winning. Recording fees and documentary stamps apply on top of the bid.
What is the difference between a tax certificate and a tax deed in Florida?
A tax certificate is a lien on the unpaid taxes that earns interest when the owner repays. A tax deed transfers ownership of the property itself. A certificate must go unredeemed for two years before the holder can apply for a deed.
How long is the redemption period in Florida?
It runs two years from April 1 of the year the taxes became delinquent. The owner can redeem any time before a tax deed is issued by paying the delinquent taxes plus interest owed.