When buying a home in Florida, a clear title search might not be enough to ensure the new owner is free from costly issues. Many financial obligations tied to a property are not recorded in public land records and won’t appear in a standard title search. This is why a municipal lien search has become standard practice and is an essential step for Florida real estate transactions.
What is a Florida Municipal Lien Search?
What’s included in a municipal lien search, or municipal search, varies by state. In Florida, where municipal lien searches are commonplace for issuing title insurance policies, it’s a search of municipal department records to uncover unrecorded property debts and issues.
A proper Florida municipal lien search uncovers six key types of hidden liabilities that can affect a real estate investment long after closing. These issues can result in a recorded lien down the line, so they must be found before a new owner takes possession. Here’s what they are and why they matter.
1. Utility Balances
Unpaid water, sewer, or trash bills don’t always follow the account holder. In many Florida municipalities, if a seller has outstanding utility bills, the city or utility provider may place a lien against the property or refuse to turn on services until the balance is paid.
This can cause problems for the buyer, who may be forced to settle someone else’s unpaid bill just to get access to basic services.
2. Code Enforcement Violations
Local governments in Florida issue code violations when a property doesn’t comply with local ordinances. This could include overgrown grass, unpermitted structures, or improper waste disposal.
If the issue goes unresolved, the city can impose daily fines that quietly accrue. These fines may become a lien on the property, and even if the violation is years old, the new owner could still be responsible.
3. Open or Expired Building Permits
Many homeowners are unaware that open or expired permits can complicate a real estate transaction. If a previous owner started work, such as a room addition or roof replacement, but never completed inspections, the permit will either remain open or expire.
That means the work was never officially approved and may not meet code. As the new owner, you may have to hire a contractor to complete the process or fix the work yourself, often at significant cost.
4. Special Assessments
Florida cities and utility authorities often levy special assessments to fund local improvements like road paving or sewer upgrades and property owners who stand to gain from these improvements are assessed their portion. These assessments are usually paid over time and added to property tax or utility bills. In some cases, such assessments are levied through special districts that remain separate from taxes and utilities and are thus easy to miss.
If the seller has not paid their portion or if a new assessment has been approved but not yet billed, you could be on the hook after closing.
5. Unpaid Stormwater or Solid Waste Fees
These fees help fund essential local services like drainage maintenance and garbage collection. Because they’re often managed by separate departments, they may not appear in public records.
Unpaid fees can lead to disruptions in service or result in liens against the property that the new owner inherits.
6. Unpaid Property Taxes from the Previous Three Years
It is standard practice for Florida municipal lien search providers like PropLogix to include a summary of property taxes for the three most recent years on a lien search report.
Unpaid property taxes that have yet to become a lien will not appear on the title search, so it’s important to be aware if the seller is current on their tax bill before closing.
Get Peace of Mind Before You Close
While a municipal lien search isn’t always a required part of a Florida real estate transaction, there’s a reason they’re standard practice when title insurance is involved. These six issues are easy to overlook but costly to ignore. It’s smart for buyers to protect their investment and uncover potential financial liabilities before taking ownership. PropLogix offers municipal lien searches that uncover hidden debts and property issues before they become your responsibility.
Our team works directly with local departments across Florida to deliver accurate, timely results so you can close with confidence. With more than 15 years as a Florida municipal lien search provider, our teams serve title companies across the state of Florida and beyond.
Photo by Matteo Grassi
