A special assessment tax lien is a charge placed by a municipality or local government on a property to cover the cost of public improvements, such as road repairs, drainage systems, or sidewalks. When authorities levy a special assessment, they place a lien on the property, requiring payment before it can be sold or transferred.
Understanding how to manage these liens is important to avoid legal complications and financial strain.
1. Check for Existing Liens before Purchasing a Property
Conducting a municipal lien search is necessary if you’re buying property in Florida. Special assessment tax liens may not appear in standard title searches, potentially leading to unexpected financial obligations.
A municipal lien search will reveal any outstanding special assessments on the property. This allows you to negotiate with the seller or adjust the purchase price. Failing to identify a lien before closing could result in the buyer inheriting the debt.
2. Review Your Property Tax Bill Carefully
Florida property owners should review their tax bills to identify special assessments listed separately from regular taxes. Property owners can pay these assessments in installments or in full, typically with interest added to each payment. Be sure to understand the payment terms because a missed payment can trigger penalties or added interest.
3. Negotiate with the Municipality
Property owners can sometimes negotiate special assessment tax lien terms with the local government. The municipality might extend payment periods for large infrastructure projects to lessen the financial burden. Some also offer hardship programs for those struggling to pay. Contact your local tax authority to explore options and confirm any agreements are in writing.
4. Pay off the Lien
To handle a special assessment tax lien, paying it off as soon as possible is the simplest approach. If you can, paying in full removes the lien and avoids penalties or foreclosure. If that’s not feasible, set up a payment plan with the municipality to stay current.
Remember, special assessment liens often accrue interest, so delaying payments may cost more. Consider whether paying in full or spread payments is better based on your financial situation.
5. Consult a Real Estate Attorney
Handling a special assessment tax lien can be legally complicated, especially if disputes over the assessment or the lien remain unpaid for an extended period. Consulting a real estate attorney specializing in Florida property law can help you navigate these complexities. A lawyer can advise you on your legal rights and options, including whether you have grounds to contest the assessment.
In some cases, legal action may be necessary to resolve disputes with the municipality or to remove an improper lien. Professional guidance makes sure that you handle the situation in compliance with Florida law.
Donโt let special assessment tax liens take you by surprise. Our team at Florida Lien Search, Inc. identifies hidden liens so you can move forward with your real estate transaction confidently and fully informed. Contact us today to learn more!