Understanding Lis Pendens and HOA Liens in Florida Tax Deed Sales

What Tax Deed Buyers Need to Know About Association Liens

When purchasing property through a Florida tax deed sale, understanding which liens survive the sale is crucial for protecting your investment. Julie’s question about HOA liens and lis pendens is one that many tax deed investors face.

The General Rule: Tax Sales vs. Other Liens

Tax deed sales in Florida operate under specific statutory rules that differ significantly from traditional real estate transactions. While most property transfers require all liens to be satisfied before clear title passes, tax sales and foreclosures follow different procedures established by state law.

How HOA Liens Are Treated in Tax Deed Sales

In Florida, the treatment of homeowners association (HOA) liens during tax deed sales depends on several factors:

Priority of liens matters significantly. Tax liens generally hold superior priority over most other liens, including HOA assessments. When a tax deed sale occurs, junior liens—those with lower priority—are typically extinguished from the property title.

However, personal liability may continue. Even when an HOA lien is wiped from the property, the previous owner may still owe the debt personally. The new tax deed purchaser generally takes title free of the HOA lien but becomes responsible for any assessments accruing after they take ownership.

The Lis Pendens Complication

A lis pendens is a recorded notice indicating that litigation is pending concerning the property. In your case, the association has filed this notice, which serves as public warning that the property’s title is subject to ongoing legal proceedings.

Impact on Tax Deed Sales

The lis pendens itself doesn’t necessarily prevent the tax deed sale from proceeding, but it creates important considerations:

  • Timing delays may occur if the underlying litigation must be resolved first
  • Title complications can arise depending on the nature of the lawsuit
  • Purchasing risks increase when litigation clouds the property’s status

State-Specific Differences Make Professional Guidance Essential

Florida real estate law contains nuances that can significantly impact your rights and obligations as a tax deed purchaser. While general principles apply across states, specific statutes and case precedents vary.

Why You Need a Florida Real Estate Attorney

Given the complexity of your situation—involving tax delinquencies, an association lien, and pending litigation—consulting with a Florida real estate attorney is strongly recommended. An attorney can:

  1. Review the complete title report and identify all potential issues
  2. Analyze the lis pendens to understand the litigation’s potential impact
  3. Research applicable Florida statutes and relevant case law
  4. Advise on your specific liability for the HOA assessments
  5. Recommend protective strategies before you complete the purchase

Key Takeaways for Tax Deed Investors

Before purchasing any tax deed property:

  • Obtain and thoroughly review a complete title report
  • Identify all recorded liens and their priority status
  • Investigate any lis pendens or pending litigation
  • Understand which liens will be extinguished and which survive
  • Calculate your total investment including potential lien payoffs
  • Consult with a local real estate attorney for state-specific guidance

Protecting Your Investment

Due diligence is your best protection when investing in tax deed properties. While tax sales can offer significant opportunities, they also carry risks that vary by jurisdiction. The relatively small investment in professional legal advice can prevent costly mistakes and protect your investment.

For properties in Florida specifically, understanding how Florida Statute Chapter 197 governs tax deed sales is essential. An experienced attorney can guide you through these statutes and their application to your situation.

Need Help with Tax Deed Research?

At US Title Records, we provide comprehensive title research services to help investors make informed decisions. However, for legal advice specific to your situation, always consult with a qualified real estate attorney licensed in the state where the property is located.

Have questions about liens, tax deeds, or title issues? Our experienced team is here to help with your research needs.