Every year, some land in Highlands County goes up for auction because the owner stopped paying property taxes. Online videos make tax deed sales sound like a secret way to buy land for pennies. Sometimes buyers do get a fair deal. Plenty of others end up with a parcel they can't use, can't easily sell, or that came with problems they didn't see. Here's a plain explanation of how the process works and what to check before you bid.
This is general information, not legal advice. Florida's tax deed rules are set by state law and change from time to time, so confirm current procedures with the Highlands County Clerk of Court and a Florida real estate attorney.
Tax certificates vs. tax deeds
Florida uses a two-step system. When property taxes go unpaid, the Highlands County Tax Collector sells a tax certificate — essentially, an investor pays the overdue taxes and earns interest. The certificate is not ownership of the land. (Our tax certificates explainer covers that side of the system in detail.)
If the taxes stay unpaid for long enough (generally at least two years after the certificate is issued), the certificate holder can apply for a tax deed. That triggers a public auction run by the Clerk of Court. The winning bidder at that auction receives a tax deed to the property.
How a Highlands County tax deed sale works
- The property is scheduled for sale and listed by the Clerk, usually with the parcel ID, opening bid and sale date.
- Auctions are generally held online. You register in advance and usually must place a deposit.
- Bidding starts at an opening bid that covers back taxes, the certificate, interest and fees.
- The winning bidder pays the balance on a short deadline. Miss it, and you can lose your deposit.
- The Clerk issues a tax deed, which is then recorded.
If nobody bids, the parcel may land on a list of lands available for taxes, where it can sometimes be bought later for the opening amount under rules set by state law.
Finding upcoming Highlands County tax deed sales
The Highlands County Clerk of Courts schedules and conducts tax deed sales, and every property scheduled for sale is viewable on the Clerk's website (highlandsclerkfl.gov) — look for their tax deed search pages. Unlike the annual certificate sale, tax deed auctions happen throughout the year as applications mature, roughly on a monthly rhythm, but there is no fixed recurring date — always check the Clerk's current listings rather than assuming a schedule. Each listing typically shows the parcel ID, opening bid, and sale date. Questions about participating in a specific sale go to the Clerk's office, not the Tax Collector.
The tax deed application behind the auction
Every tax deed auction starts with a Tax Deed Application (TDA) filed by the certificate holder under Florida Statute 197.502. Per the Highlands County Tax Collector, a holder can apply once the certificate is 2 years from the date of delinquency and before 7 years from the original issue date. From the month after the application is initiated until the property is redeemed or sold, the applicant earns interest at 1.5% per month. Two things bidders often misunderstand: first, the applicant is not guaranteed to end up with the property — anyone can outbid them at the public auction. Second, the opening bid has to cover everything owed (back taxes, the certificate amounts, interest, and costs), which is why opening bids on vacant lots are often higher than newcomers expect.
What happens after you win
Winning the auction is only the start — getting the deed recorded, dealing with title and a potential quiet title action, and handling possession and liens all come after. We've covered the full post-auction process in a separate guide: after you win a Florida tax deed auction. Read it before you bid, and price those post-auction costs into your maximum bid.
The real risks
You often can't see what you're buying
Tax deed property is sold as-is. There's no seller disclosure, no inspection period and no backing out after you win. Many parcels have never been visited by anyone bidding on them.
The cheapest parcels are often cheap for a reason
A lot of tax deed land in Highlands County is the kind of land owners walk away from: wetlands, landlocked parcels with no legal access, tiny slivers, lots on unbuilt plat roads, or ground that can't get a septic permit. Owners rarely abandon land that's easy to build on.
Title may not be "clean" right away
A tax deed wipes out many prior liens, but not necessarily all of them. Some government liens and certain other interests can survive. Just as importantly, many title insurance companies won't insure a tax deed title right away without extra steps, often a quiet title action through the courts. That costs money and time, and until it's done you may struggle to sell or finance the land.
Occupants and former owners
Occasionally a parcel has someone living on it or stored property on it. Removing them is your job and your expense.
Bidding wars
Good parcels attract experienced investors. By the time bidding ends, a "deal" can be close to — or above — what you'd pay a regular seller for a lot with clean title and financing options.
Due diligence before you bid
Do this for every parcel, before the auction:
- Pull the property appraiser record. Confirm size, zoning, land use and location on the Highlands County GIS map.
- Check flood zones and wetlands. Use the FEMA flood map and look at aerial imagery for standing water or wetland vegetation.
- Confirm legal access. Is it on a built, maintained public road? If not, how would you get there?
- Check buildability. Ask the county about zoning and the Health Department about septic feasibility.
- Search the public records. Look for code-enforcement liens, municipal liens and other recorded claims. Better yet, pay a title company for a search.
- Visit the land. Or have someone local visit for you.
- Budget for a quiet title action. Ask an attorney what it costs and how long it takes.
- Set a firm maximum bid. Include all the extra costs above, and don't go past it.
Our Lake Placid land buying guide has a full due-diligence checklist that applies to tax deed land too.
Who tax deed land is right for
Tax deed buying can make sense for people who are comfortable with risk, have cash on hand, can afford to hold land for a while, and are willing to do the legal and research work. It's generally not the best path for a first-time buyer who wants a lot to build on this year, needs financing, or can't afford to lose the money if something goes wrong.
The alternative most buyers overlook
Buying from a regular seller often costs a bit more on paper, but you typically get a title search, title insurance, time to check the land, and sometimes owner financing with a small down payment. For most everyday buyers, that peace of mind is worth the difference.
If you'd rather skip the auction gamble, tell us what kind of land you want. We'll connect you with credible local sellers in Lake Placid and across Highlands County.
