| California is a tax deed state. Unlike most other | | | | than one per year. |
| states, whose fiscal year mirrors the actual year | | | | Generally, California property owners have up to the |
| (January through December), California property | | | | day before the tax sale to redeem their property. If |
| taxes are assessed for the period between July 1 | | | | possible, investors planning to participate in a |
| and June 30. Therefore, instead of a 2008 tax year, | | | | California tax deed sale are advised to check the sale |
| you have a 2007-2008 tax year and a 2008-2009 tax | | | | list just prior to the sale. This may entail contacting |
| year. A first position lien attaches to all real property | | | | the county tax collector office directly, or checking |
| on the assessment date each year by law. | | | | the county or third-party Web site. |
| California property taxes are due in two equal | | | | is a third-party Web site that holds online auctions for |
| installments. The first installment is due November 1 | | | | 28 California counties, including Alameda, Fresno, Kern, |
| and delinquent December 10th. The second | | | | Santa Cruz, San Francisco, Solano, San Diego, and |
| installment is due February 1 and delinquent April 10th. | | | | San Bernardino. Tax sale lists for Bid4Assets counties |
| Late payments adds a 10% penalty to the property | | | | generally become available three to four weeks |
| tax bill. Unpaid properties are considered tax | | | | before the online auction. The Bid4Assets Web site |
| defaulted if not paid in full by June 30 of each year. | | | | has all of the information you need about each |
| Starting July 1, title to these parcels is vested in the | | | | auction, including contact, registration and deposit |
| name of the state and interest on any unpaid bill | | | | information. |
| begins to accrue at a rate of 1.5% per month (18% | | | | California Tax Deed Sale Payment Plans |
| per annum). | | | | According to California statute, and at their discretion, |
| Online and Public Auctions | | | | California county tax collectors may offer a "payment |
| Similar to how California runs its tax year, tax deed | | | | plan" for properties that sell for over a threshold |
| sales are a little different in California. The tax deed | | | | amount. This "threshold" varies by county and can |
| to a parcel is not put up for sale for at least five | | | | vary year to year. Generally, in a "payment plan", the |
| years after the property tax bill becomes delinquent. | | | | county requires the threshold amount and the |
| In California, the "redemption period" starts when the | | | | remaining balance on the tax deed is due within 90 |
| property becomes tax defaulted on July 1 of any | | | | days of the tax deed sale. The property title is not |
| given year, and ends when the property is offered | | | | transferred to the tax deed purchaser until the tax |
| for sale to investors at a tax deed sale five (or | | | | collector receives payment in full. |
| more) years later. In most other tax deed states, | | | | After the Tax Deed Sale |
| tax-defaulted properties go up for sale shortly after | | | | Successful bidders are awarded a Tax Collector's |
| they first default, but property owners are given an | | | | Deed. Pursuant to California Statute, this deed |
| opportunity to essentially buy back their property | | | | conveys title to the purchaser free of all |
| even if the tax deed was already sold at a sale. | | | | encumbrances of any kind existing before the sale, |
| Barring a county error and/or a successful lawsuit by | | | | with the exception of liens for subsequent taxes and |
| the former property owner, a property in California | | | | or special assessments. |
| may not be redeemed once it is sold at a public | | | | When a property has been offered for sale at least |
| auction. In other words, there is no extended right of | | | | once and no acceptable bids have been submitted, |
| redemption in the State of California. | | | | the tax collector may re-offer those properties at |
| California tax deed sales use the premium bidding | | | | the next scheduled sale at a minimum bid he/she |
| method. The minimum bid is equal to the amount of | | | | deems appropriate. The county's Board of |
| taxes, interest, penalties, and fees due upon the | | | | Supervisors must approve a drop in the minimum bid. |
| property. Most counties only hold an auction once | | | | Currently, there are no over-the-counter sales in |
| during a year; however, some counties hold more | | | | California. |