How to Handle Back Taxes and Code Violations on an Inherited Property in Florida

Inherited properties in Florida sometimes come with back property taxes, code enforcement liens, or unresolved violations — and these issues can complicate or delay a sale if you do not address them correctly. Here is exactly how to handle both, what the resolution process looks like, and how to keep the sale on track.

These Problems Are More Common Than You'd Think

When families contact me about selling an inherited property in Southwest Florida — whether it is a home in Fort Myers, a condo in Naples, or a waterfront property in Cape Coral — they sometimes discover during the process that the estate includes not just the property, but some unresolved baggage attached to it: back property taxes that were never paid, code enforcement liens for work done without permits, overgrown vegetation violations, or pool safety issues that were cited years ago and never resolved.

These discoveries can feel alarming, especially when you are already dealing with grief and the complexity of probate. But I want to be direct with you: back taxes and code violations on inherited properties are solvable problems. They are not dealbreakers. They are obstacles that, with the right process, can almost always be resolved either before or as part of a sale. Here is how.

Back Property Taxes: Understanding the Problem

What Happens When Property Taxes Go Unpaid in Florida

In Florida, property taxes are assessed annually on January 1st and bills are sent in November, with a 4 percent discount for payment in November, declining to a 1 percent discount in February, and full amount due in March. When taxes are not paid by the April 1st deadline, they become delinquent.

Florida counties sell tax certificates to investors on unpaid taxes — the investor pays the taxes on behalf of the delinquent owner and earns interest on the certificate. If the taxes remain unpaid for approximately two years after the certificate is sold, the certificate holder can apply for a tax deed, which — if completed — can actually transfer the property's title away from the owner through a tax deed sale.

For inherited properties, it is not unusual to discover that taxes went unpaid for one, two, or even several years before the owner passed away — particularly if they were elderly, in declining health, or had financial difficulties. The accumulated delinquent taxes, certificates, and accrued interest can total significant amounts.

How to Resolve Back Taxes Before or at Closing

The good news about back property taxes is that they can almost always be paid off and the certificates redeemed either before closing or at the closing table from the sale proceeds. Here is the process:

• Step 1: Contact the county tax collector's office (Lee County Tax Collector for Fort Myers and Cape Coral, Collier County Tax Collector for Naples and Marco Island) to obtain a payoff statement showing all outstanding taxes, tax certificates, and accrued interest
• Step 2: Determine whether the amount can be paid before listing (ideal) or whether it needs to be handled at closing from sale proceeds
• Step 3: If tax certificates have been sold, the title company handling the closing will need to redeem those certificates as part of the closing process — this is standard and manageable but requires coordination with the title company from the beginning
• Step 4: In extreme cases where tax deed proceedings have been initiated, a Florida real estate attorney's involvement is essential to protect the estate's interest and navigate the redemption process

The key is finding out early. I always recommend that personal representatives run a title search at the beginning of the sale process — not at the end — specifically to surface any tax issues before they become time-sensitive.

Code Violations and Liens: A Different but Equally Manageable Problem

What Code Violations Actually Are

Code enforcement in Florida cities and counties can cite properties for a wide range of violations: unpermitted additions or improvements, overgrown vegetation, inoperable vehicles, pool safety violations, fence or structure height violations, commercial activity in residential zones, and many others. When a code violation is cited and not resolved within the compliance timeline, the code enforcement board can impose fines — sometimes daily fines — that accumulate into liens recorded against the property.

For inherited properties, code violations that were cited years before the owner's death and never resolved can have accumulated into substantial lien amounts. A $100 per day fine for a pool fence violation cited three years ago and never resolved represents over $100,000 in fines — though as we will discuss, these are almost always negotiable.

The Lien Reduction Process

This is the most important thing families dealing with code enforcement liens on inherited properties need to know: code enforcement fines in Florida are almost always negotiable, and significant reductions are routinely granted when the new owner — including an estate or its personal representative — appears before the code enforcement board, comes into compliance, and requests a reduction.

The process typically looks like this:

• Step 1: Contact the city or county code enforcement department to obtain a lien payoff statement and understand the specific violations that gave rise to the lien
• Step 2: Bring the property into compliance — fix the cited violation, whether it is cutting the grass, removing the unpermitted structure, installing the pool fence, or whatever the original issue was
• Step 3: Appear before the code enforcement board (or submit a written request if in-person appearance is not required) and request a fine reduction, explaining the circumstances of the inherited property and the steps taken to achieve compliance
• Step 4: Negotiate the final payoff amount — reductions of 80 to 95 percent on the accumulated fine amount are not unusual when the new owner comes into compliance and engages the board professionally

I have worked with families in Lee and Collier County who inherited properties with six-figure code enforcement liens and ultimately resolved them for a fraction of that amount through this process. The key is engaging the process rather than ignoring it.

How These Issues Affect the Sale Timeline

Back taxes and code liens do not necessarily delay a sale — but they need to be identified early and addressed in the right order. Here is the typical sequence:

• Run a preliminary title search as soon as the personal representative has Letters of Administration — this surfaces all liens, taxes, and encumbrances upfront
• Get payoff statements and lien reduction estimates so you know the net proceeds picture before you list
• Resolve code violations before listing if possible — a clean property showing shows better and eliminates buyer concern
• Coordinate with the title company from the beginning so they know the full picture and can structure the closing to pay off all encumbrances from the proceeds

With this approach, properties with back taxes and code violations sell just as efficiently as clean properties — buyers care about what the property costs them, not about the seller's history with the county.

Ready to make your move in Southwest Florida? Let's talk.

Whether you're buying, selling, managing an estate, navigating a divorce, or just want a straight read on the market — I'm here for the conversation.

Call or text: 727.638.1704

Email: [email protected]

Or reach out at theabreugroup.com

— Daniel

Frequently Asked Questions

Q: Can a property with a tax deed application pending still be sold?

Yes, but with urgency. Once a tax deed application is filed, there is a deadline — typically 90 days — before the tax deed sale is scheduled. The estate can redeem the tax certificates and stop the tax deed process at any point before the actual sale by paying the outstanding amount plus interest and costs. This requires immediate action and should involve a Florida probate or real estate attorney.

Q: What happens to code enforcement liens if we sell the property as-is without resolving them?

Code enforcement liens recorded against the property must generally be satisfied or released before clear title can transfer to a buyer. A title company will not close a transaction with unresolved recorded liens unless there is a specific plan to satisfy them from the sale proceeds. In some cases, negotiating the lien reduction and payoff can happen concurrently with the closing process — the title company holds the funds in escrow until the lien release is recorded.

Q: Can unpermitted work on an inherited property be retroactively permitted?

Sometimes. In Florida, many jurisdictions allow permit applications for work that was completed without a permit — sometimes called after-the-fact permits. The process involves an inspection of the existing work to determine whether it meets current code. If it does, or if minor corrections can make it compliant, the permit can be issued retroactively. If the work is significantly out of code, the owner may need to bring it into compliance or demolish and rebuild it. Your local building department can advise on the specific options for the property's jurisdiction.

Q: Will buyers be aware of past code violations even after they're resolved?

Code enforcement records are public. A thorough buyer's agent can find the history of violations even after they are resolved. I advise sellers to disclose any resolved code violations proactively in the listing disclosures — transparency builds trust and prevents the discovery from becoming a negotiating issue after the fact. A violation that was properly resolved and closed is not a material defect, but a buyer who discovers it independently and feels it was hidden can become an adversarial buyer.

This post is intended for general educational and informational purposes only and does not constitute legal advice. The information provided here reflects general principles of Florida probate and real estate law and should not be relied upon as a substitute for advice from a licensed Florida attorney. Every estate is different, and the specific facts of your situation may lead to different legal outcomes. If you are dealing with probate, inherited property, or any related legal matter, please consult with a qualified Florida probate attorney before taking action.