The Tax Deed Auction Catch: What Florida Land Buyers Need to Know Before They Bid
They had bought the lot earlier this year. Now they were ready to sell it and move on.
Before I take on any listing, I pull the county records and do my due diligence.
What I found stopped me in my tracks. The lot couldn’t be built on. It couldn’t really be sold, either. And my client had no idea.
This isn’t the first time I’ve seen this happen. I’m writing this so no one else gets hurt or loses money.
This is what I call the tax deed auction catch. It plays out across Florida far more often than most people realize. It almost always starts the same way: someone buys land at a tax deed auction, or from someone who did, without doing the homework first.
What I Found in the County Records
The Lee County Property Appraiser listed the land use as “Right of Way.” There was no street address. The site address field said “Right of Way.”
A right of way is land set aside for public passage. Think road shoulders, drainage ditches, sidewalks, or utility lines. The owner can’t build on it, fence it, or block it.
The legal description had two short phrases that told the whole story. “LS PT” means Less Part. “RES AR” means Residual Area.
In plain English, someone carved off the usable part of the original lot long ago. What was left behind was a narrow strip reserved for public use.
The sales history filled in the rest. The parcel changed hands through a tax deed transfer. A few months later, my client bought it.
My client paid many times what the county says the land is worth.
How a Tax Deed Auction Works, and Where Buyers Get Caught
When property taxes go unpaid long enough, Florida law allows the county to sell the property at a tax deed auction. In Lee County, the Lee County Clerk of Court holds these sales online.
Anyone can register and bid. Buyers across the country buy lots, and many never see them in person.
“As Is” Really Means As Is
The county isn’t vouching for what you’re buying. Tax deed sales come with no promise about the property’s condition, title, liens, or zoning.
If a strip of land under a road goes unpaid on taxes, it can land on the auction list right next to a buildable homesite. From a computer screen, they can look almost the same.
The Moment the Buyer Finds Out
Once the auction closes and the winning bidder pays the Clerk, they receive a tax deed.
Then they open the Lee County Property Appraiser map to see their new “investment.”
That’s when many of them realize they just paid thousands of dollars for a strip of asphalt, a drainage ditch, or a utility easement they can’t build on. You can learn more about how unpaid taxes lead to these sales from the Lee County Tax Collector.
Then the Problem Gets Passed Along
Some auction buyers accept the loss. Others try to resell the land to the next person who doesn’t know what to look for.
That next buyer is often someone shopping online from out of state. They see a low price and the words “Lehigh Acres” and think they found a deal.
I don’t know what the seller in my client’s case knew. What I do know is that my client wasn’t told, and nobody checked
The Title Isn’t Automatically Clean
A tax deed doesn’t always come with title that a title company will insure right away. Many title companies want a quiet title action first, or they wait until a period set by Florida law has passed.
Without title insurance, most lenders won’t finance the purchase. Most informed buyers will walk away.
Why This Keeps Happening in Southwest Florida
Lehigh Acres and Cape Coral were laid out decades ago as huge lot-by-lot communities. Buyers across the country bought lots, many of whom never saw them.
Over the years, people split off pieces, reserved land, or took land for roads, canals, and drainage. Some of the leftover strips stayed on the tax roll with an owner of record.
When the taxes on those strips go unpaid, they end up at auction. A low opening bid plus a familiar community name can look like an opportunity from hundreds of miles away.
Before You Bid: The Due Diligence Every Land Buyer Needs
Here’s what I check before any client buys land. It doesn’t matter if it’s at auction, from a private seller, or on the MLS.
Look Up the Use Code
Search the parcel on the Lee County Property Appraiser site. “Right of Way,” drainage, common area, or anything other than a vacant residential use is a red flag.
Read the Legal Description
Watch for terms like “LS PT,” “RES AR,” “ROW,” or “easement.” Each one means the parcel may not be the full lot you think it is.
Open the Map and the Aerial View
Look at where the lines actually sit. Is the parcel on top of a road? A canal? A ditch?
Compare the Price to the County’s Value
If the asking price is far above the county’s value, find out why before you go any further.
Check the Sales History
A recent tax deed or quitclaim transfer, followed by a quick resale, warrants extra questions.
Ask What Kind of Deed You’ll Receive
A warranty deed comes with promises from the seller about the title. A quitclaim deed comes with none.
Get a Title Search Before You Pay
A title company can tell you whether the title is insurable and what problems it has.
Confirm You Can Actually Build
Check zoning, setbacks, flood zone, and utility, well, and septic options with the county before you commit.
You don’t have to do any of this alone. A REALTOR® who knows how to read county records, or a reputable title company, can run these checks before you spend a dollar.
Already Own a Lot Like This? Here’s Where to Start
First, take a breath. You have options, and passing the problem to someone else isn’t one.
Florida courts have long held that sellers must disclose known facts that materially affect a property’s value. That’s the standard set in Johnson v. Davis.
Talk with a real estate attorney about your specific situation.
Ask whether a neighbor next to the strip might want it to expand their yard or buffer.
Contact the Lee County Property Appraiser with questions about how the parcel is classified and taxed.
This isn’t legal advice. Every parcel is different, which is exactly why the attorney conversation matters.
Why I’d Rather Tell You the Truth Than Take the Listing
I could have taken that listing. It would have been easy to put a vacant lot on the market and hope for the best.
But that would have meant marketing something I knew wasn’t what a buyer would think it was. That’s not how I work.
My approach has always been One Home, One Dream, One Life at a Time. Sometimes that means delivering news nobody wants to hear. I’d rather be the advisor who tells you the truth than the one who tells you what you want to hear.
Real estate has more hidden traps than most people realize. That’s exactly why having a professional in your corner matters, whether you’re buying or selling.
The Bottom Line
A low auction price isn't the same as a good deal. Do your research before you bid, not after you own it.
Thinking about bidding at a tax deed auction? Are you looking at a lot in Lehigh Acres, Cape Coral, or anywhere in Southwest Florida?
Send me the parcel ID. I’ll review the county records with you and flag anything that needs a closer look. This is a complimentary service.
Feel free to call or text me anytime at 239-370-5988. Contact Us
Elizabeth Steele, REALTOR®
The Straightforward Real Estate Advisor
Professional Real Estate Consultant | License ID: SL3397163
(239) 370-5988 https://realestateservicenow.com/
esteelerealestate@gmail.com
Realty ONE Group MVP
7370 College Pkwy. #212
Fort Myers, FL 33907
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