Property Tax Liens in California

Property Tax Liens In California

Property Tax Liens In California are actually tax deeds.

Buying these California tax deeds is a fairly easily understood process. If the taxes on the property have been delinquent for five years, the county will offer tax deeds for sale.

Just remember, that in California you are seeking to actually own the property. The property owner has up until the day before the tax sale to pay his back taxes, or redeem, the property. After you purchase the tax deed you are the new owner.

The sales are conducted by the local county Treasurer – Tax Collector.

There is no redemption period after the sale, BUT the property owner does have one year to challenge the validity of the tax sale. I suspect that title insurance and mortgages would be difficult to obtain during this one year period but you are bidding to own the property, not a lien.

Properties that are not sold may be re-offered within 90 days, or at the next scheduled sale at a minimum price that the tax collector deems appropriate.

A “tax deed” that conveys title free of all encumbrances, with certain exceptions, is issued to the winning bidder.

You must be registered in order to bid.

Most counties in California have their tax sales online and many use “www.bid4assets” to conduct their online sales.

In order to be eligible to bid on a parcel, a deposit of 10% of the minimum bid is required.

Due to the ease of these online auctions, their tax sales have become very popular. This causes most of the properties to sell much more than the minimum bid.

California is made up of 58 counties, thus you have 58 county delinquent property tax sales. Research the exact procedures for the county you are interested in.

Certain counties will offer tax deeds on timeshares which would be an interesting investment to explore.