The Complete Title & Lien Search Checklist for Florida Distressed Properties

Why Lien Searches Are Non-Negotiable for Auction Buyers

When you win a Florida courthouse auction, you take the property as-is with no warranty — and subject to any liens that survive the foreclosure. The foreclosure extinguishes junior liens whose holders were properly notified, but several categories of liens can survive regardless. Missing a $45,000 IRS tax lien or a $28,000 municipal lien on a deal you calculated to the dollar will wipe out your profit and potentially put you underwater.

The rule: Never bid without completing all items on this checklist.

Category 1: Federal Liens (High Stakes)

• ☐ IRS Federal Tax Liens: Search the county clerk's Official Records and the IRS's FTLS database. IRS liens attach to all property of the debtor. They survive foreclosure if the IRS was not properly notified of the foreclosure action with 25+ days to respond. An unreleased IRS lien on a property you just bought means you've inherited it.
• ☐ USDA Liens: USDA rural development loans can have liens that survive — less common in urban South Florida but check in rural Homestead/Redland areas.
• ☐ SBA Liens: Small Business Administration liens are federal and can survive foreclosure if the SBA wasn't properly notified.

Category 2: State and Local Tax Liens

• ☐ Property Tax Delinquency: Unpaid county property taxes are senior to all private mortgages and survive any foreclosure. Pull the tax roll from the county property appraiser — confirm all years are paid or calculate delinquent amount including interest.
• ☐ Tax Certificates: If property taxes weren't paid, the county may have issued a tax certificate to an investor who paid the taxes. That certificate accrues interest (up to 18% per year in Florida) and can result in a tax deed if unredeemed. Pull from the county tax collector.
• ☐ Tangible Personal Property Taxes: Less common for residential, but relevant for properties with business operations.

Category 3: HOA and Condo Association Liens

• ☐ HOA Lien Balance: Contact the HOA management company directly. Get the full balance including assessments, late fees, legal fees, and collection costs. Florida HOA liens are junior to first mortgages — most are extinguished by the first-lien foreclosure.
• ☐ HOA Super-Priority Amount: Florida Statute §720.3085 gives HOAs super-priority status for up to 12 months of unpaid regular assessments OR 1% of the original mortgage (whichever is less). This amount survives a first-lien foreclosure. Calculate it and factor into your bid.
• ☐ Special Assessments: Any special assessments (building repairs, capital improvements) that are recorded and prior to the foreclosure filing may survive. Ask the HOA specifically about pending and recently-levied special assessments.
• ☐ Condo Building Litigation: Not a lien, but a property defect — condo units in buildings with pending litigation or failed milestone inspections face financing restrictions that suppress your resale pool.

Category 4: Municipal and Code Enforcement Liens

• ☐ City/Municipal Code Violation Liens: Pull a municipal lien search from the city where the property is located (different from the county). Unpermitted construction, overgrown lots, abandoned vehicles, and health/safety violations can result in recorded liens that survive foreclosure.
• ☐ County Code Enforcement Liens: Miami-Dade and Broward both have county-level code enforcement in addition to city-level. Run both.
• ☐ Building Department Violations/Open Permits: Open building permits or failed final inspections that result in recorded notices can become encumbrances. Pull a permit search from the local building department.
• ☐ Demolition/Nuisance Abatement Liens: If the city has done emergency work (demolition of a structure, emergency cleanup), they can lien the property. These survive in some circumstances.

Category 5: Water, Sewer, and Utility Liens

• ☐ Water/Sewer Lien: In Florida, unpaid water and sewer charges can be certified and recorded as liens on the property. In Miami-Dade, WASD (Water and Sewer Department) certifies delinquent accounts to the tax roll — these are senior to private liens. Pull from the relevant utility authority.
• ☐ Special Drainage/Irrigation District Liens: Parts of South Florida have special taxing districts for drainage and water management. Unpaid district assessments can be senior liens.

Category 6: Other Recorded Encumbrances

• ☐ Easements: Utility easements, access easements, and conservation easements restrict use. Pull the full title chain to identify all recorded easements.
• ☐ Deed Restrictions/Restrictive Covenants: Some older South Florida properties have recorded deed restrictions (some historical, some still enforceable). Identify any that restrict your intended use.
• ☐ Mechanics Liens: Unpaid contractor work. May be junior to the foreclosing mortgage but are sometimes missed in auction title searches. Pull the full Official Records search by address.
• ☐ Lis Pendens (Other Litigation): Are there other pending lawsuits affecting the property beyond the foreclosure case? A title search will reveal additional lis pendens filings.

Your Pre-Auction Title Search Action Plan

1. Order an official records search from the county clerk (covers most recorded liens)
2. Request a municipal lien search from the city (separate from county)
3. Pull the tax roll status from the county property appraiser and tax collector
4. Contact the HOA management company directly for the super-lien amount
5. Pull a permit search from the building department
6. Check the water authority for any utility lien certifications
7. Run an IRS tax lien search by owner name

For a full AI-generated Title & Lien analysis on any South Florida property, Marcus's Title & Lien Search Report covers all categories above and provides a clearance recommendation.