FAQ module icon

Frequently Asked Questions

Do liens or encumbrances on a tax-defaulted property transfer to the new owner after purchase of the property at a tax sale?
Per Revenue and Taxation Code §3712, the deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except:
  • a) Any lien for taxes and special assessments, that the installments will become payable upon the secured roll after the time of the sale.
  • b) The lien for taxes or assessments or other rights of any taxing agency that does not consent to the sale under this chapter.
  • c) Liens for special assessments levied upon the property conveyed that were, at the time of the sale under this chapter, not included in the amount necessary to redeem the tax defaulted property, and, where a taxing agency that collects its own taxes has consented to the sale under this chapter, and whose taxes were not included in the amount required to redeem from sale to the taxing agency.
  • d) Easements constituting servitudes upon or burdens to the property; water rights, the record title to which is held separately from the title to the property; and restrictions of record.
  • e) Unaccepted, recorded, irrevocable offers of dedication of the property to the public or a public entity for a public purpose, and recorded options of any taxing agency to purchase the property or any interest therein for a public purpose.
  • f) Unpaid assessments under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) that are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of Part 8, or that are being collected through a foreclosure action pursuant to Part 14 (commencing with Section 8830) of Division 10 of the Streets and Highways Code. A sale pursuant to this chapter shall not nullify, eliminate, or reduce the amount of a foreclosure judgment pursuant to Part 14 (commencing with Section 8830) of Division 10 of the Streets and Highways Code.
  • g) Any federal Internal Revenue Service liens that, pursuant to provisions of federal law, are not discharged by the sale, even though the tax collector has provided proper notice to the Internal Revenue Service before that date.
  • h) Unpaid special taxes under the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code) that are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of Part 8, or that are being collected through a foreclosure action pursuant to Section 53356.1 of the Government Code. A sale pursuant to this chapter shall not nullify, eliminate, or reduce the amount of a foreclosure judgment pursuant to Section 53356.1 of the Government Code.

All prior year county and city taxes are canceled. Anyone holding a mortgage or lien of any nature against the property has lost their claim, with the possible exception of a U.S. Government lien filed prior to the recording of the Notice of Tax Collector’s Power to Sell. When a property on which the Internal Revenue Service holds a tax lien is sold at public auction, the United States has the right of redemption for 120 days from the date of such sale or the period allowable for redemption under local law, whichever is longer [Section 7425(d), 26 USCS, Internal Revenue Code; Section 3712(g)]. The amount to be paid by the Internal Revenue Service is (a) the actual amount paid for the property by the bidder, (b) plus interest at 6% per annum from the date of sale, (c) plus the expenses of sale that exceed any income received from the property. [Treasury Regulation 26 CFR Chapter1 (4-1-87 Edition) Section 301.74254(b)(1)].

Show All Answers

1. What is tax-defaulted property with Notice of Power to Sell?
2. Why does the county sell tax-defaulted property?
3. What laws govern the sale of tax-defaulted property in California?
4. Is a tax sale publicly advertised?
5. Does the county guarantee the property?
6. Are contaminated / possible contaminated properties identified?
7. When does the right to redeem a tax-defaulted property cease?
8. How is the minimum bid on a tax sale property determined?
9. Can I obtain title to the property by paying the delinquent taxes?
10. Do liens or encumbrances on a tax-defaulted property transfer to the new owner after purchase of the property at a tax sale?
11. How do I find or see a parcel of property I’d like to bid on at the tax sale?
12. How can I obtain Assessor’s plat maps?
13. How can I determine what use I can make of a tax sale property before I purchase it?
14. How can I find out if a particular property has been withdrawn from the sale?
15. How can I register as a bidder?
16. How does the bidding process work?
17. What happens if I am the successful bidder but decide that I don’t want the property after all?
18. How can a successful bidder pay for a property at tax sale?
19. What kind of title do I get?
20. How will title in the deed to the purchaser be vested?
21. How soon can I take possession of a property after purchase at the tax sale?
22. What happens to property that does not sell at the tax sale?
23. How can I get more information?