12. How to Handle Homestead Penalty Bills in Florida

We buy houses in Florida

We buy houses in Florida. We are your local Florida home buyers, and we offer cash for houses in FL. Homestead penalty bills are liens imposed by the county on properties that are declared Homesteaded property by the homeowner when they are really not their Homestead property.

A Homestead property is someone’s primary residence. A homeowner may own several properties, but only the one that he/she resides in primarily can be considered their Homestead property.

In Florida, a homeowner is eligible to receive a substantial discount on their property tax if the property is declared their Homestead property, meaning, their primary residence.

If the county finds out that a homeowner wrongfully declares a property their homestead property just to receive the tax discount, the county then imposes what is referred to as a “Homestead Penalty Bill”. This penalty bill then becomes a lien on the property that has to be paid off when the homeowner sells the property in order for him/her to provide a clear and marketable title to an end buyer.

Thru our experience working with many Florida homeowners and buying multiple properties every month, we became aware of a common problem that many homeowners face. This problem occurs when a homeowner passes away, leaving their property to the family members who then continue to reside in the property.

Cash for houses in Florida

The county automatically considers the property as Non-Homestead when the title of the property changes to “Estate of…”. If the heirs of the property do not notify the county that the property is now their primary Homestead, the county will start applying the Homestead Penalty Bills against the property.

To solve this, the homeowner, or heirs that inherited the property, need to contact the county and provide them with tax return statements showing that they now use the property as their primary Homestead residence. In most cases, the county will clear those penalty bills when wrongfully applied.

Sell My House in Florida

If you think you need to sell your house in Florida fast, then you may need us. We are homebuyers in Florida, and we can help you have a stress-free sale by buying your property directly from you. For more information or if you have any questions feel free to give us a call at (954) 519-7040 or fill out the online form and we will get in touch with you within 48 hours.

Thank you for reading our blog!

Omer Reiner

Omer Reiner is one of the owners of Florida Cash Home Buyers. He has been featured on many online publications over the years as he has extensive knowledge and expertise of the Florida Real Estate market.

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