California Delinquent Real Estate Property Tax Sales

5 Replies

State of California: Purchasing Tax Deed Properties

Hello Prospective California Tax Sale Buyers/Investors,

Re: California - A Tax Deed State *(No Redemption Period)


California Tax Authorities (Tax Collectors) literally wait (5) Five Years before a Property is ever offered at Tax Sale.  This means (5) Five years go by thus making that property delinquent in taxes for the last (5) Five Years.

Caifornia does not offer Tax Liens/Certificates and there is No-Redemption Period once a Property is Sold at Tax Sales.

California Property Owners or Invested Parties (Banks, Lien Holders, Heirs, etc.) for a Property that is subject to be sold at a Tax Sale have until the actual day of the Delinquent Tax Sale to redeem property.

California Properties that do not sell may be offered at subsequent (future) Tax Sales.

Finally, please know that *although there is No-Redemption Period in California specifically, owners (although they may not know this) do have the right to challenge the validity of the Tax Deed Sale for a period of (1)  OneYear. This is why most insurance companies wait for (1) One Year before issuing Title Insurance on Properties in California as well as other states. With respect to Title Insurance, a number of buyers/Investors option to have a "quiet title" performed by a Qualifed and Licensed Attorney-at-Law. I have heard of instances where some Investors may do their own quiet title. However, I prefer to team-up with a good Attorney-at-Law. The option to do either should work well in your favor, regardless.

California Additional Tax Sale Facts!

There are (58) Counties in California and Tax Sales are offered throughout the year. There are other Tax Deed States as well. However, not all Tax Deed States offer Deeds "Free and Clear" immediately following the Tax Sale. For Example Georgia, Kansas, and New Mexico and a few other states all offer Tax Deeds, but there property ownership is subject to a redemption period.

Locating California Tax Deed Properties For Sale:

California Tax Deed Properties are sold on a regular basis by County Governments either via the county itself or through a contracted private company that oversees the Tax Sale Process for that particular county.

Basic Requirements to Attend/Participate in a California Tax Sale:

California, in general, requires the following:'

1. A basic understanding the Tax Sale Process

2. Depending on the county, participants may have to register online or at the assigned location or sale-site prior to the sale.  Most online auctions required pre-registration

3. In some cases, a refundable deposit if you do purchase a Property at a Tax Sale you are registered to participate-in

4. You are not Delinquent in Taxes in the County Where Property is being sold

5. You must be of legal age (18 and over)

These requirements are not conclusive, but serves as a basic guideline for prospective buyers/investors.  Everyone is encouraged to thoroughly understand the laws (rules and guidelines) prior to Investing, to thoroughly research properties of interest, and/or to seek the advice of a Licensed and Qualified Attorney-at-Law for Legal Matters related to Purchasing or Acquirng Tax Sale Properties.

Much Success As You Invest, MoneyMakers

Updated over 3 years ago

Correction: Under Basic Requirements to Participate/Attend a California Tax Sale 3. Should Read: In some cases, a refundable deposit if you do NOT purchase a property at a Tax Sale for which you have registered...

Hi,

It seems that Revenue and Taxation code section 3712 lists all of the liens and liabilities that may be transferred with the property:

https://www.boe.ca.gov/lawguides/property/archive/...

Does anyone have any advice on how to determine ahead of time what liabilities there are for a given property?

If the property has tenants, does their lease stay valid after there is a new owner, or can the new owner immediately evict the tenants?

Which attorneys have you used for the quiet title process?

Leasehold interests do NOT survive a property tax sale in CA. 

The buyer will need to evict upon receiving and recording deed and giving proper notice to quit. Some attorneys might suggest serving a 30/60 Notice depending on length of residency (known or suspected). 

Most CA tax sale deed buyers circumvent quiet title by using a commercial service such as Title Tax Service that offers an alternative to the glacially slow quiet title action in civil court. 

They typically get affirmative releases from owners of record and I was surprised that they offered no incentives that I could see to the former owner to sign and return their QCD. Not even paying for notary (cheapskates). 

I've been involved in many quiet title matters and just finish my most recent one this past January. It's really a slow way to go and if speed is important to monetize your opportunity then alternatives to QTA is preferable. 

So I found out that in Oakland and Berkeley it is illegal to evict a tenant over 60 years of age, for any reason.

Anybody have tips on doing research on who the tenants are before a tax sale?

Also believe both of those are Rent Controlled areas.

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