Legal Question in Real Estate Law in California

It depends on the sale. The advice that I provide here is based on my work and research involving a foreclosure sale for nonpayment of property taxes.

Real property on which taxes are delinquent becomes �tax defaulted property� by operation of law and declaration of the tax collector. ��Tax-defaulted property� is real property which is subject to a lien for taxes which, by operation of law and by declaration of the tax collector, are in default and from which the lien of the taxes for which it was declared tax-defaulted has not been removed.� (Rev. & Tax. Code � 126.)

The property remains subject to the original owner�s rights of redemption until those rights are terminated. �Tax-defaulted property may be redeemed until the right of redemption is terminated.� (Rev. & Tax. Code � 4101.)

If the property is not redeemed within five years after it becomes tax defaulted, the property is subject to sale by the tax collector. (Rev. & Tax. Code � 3691 subd. (a).)

The original owner�s rights to redeem the property terminate prior to a sale to a private party from the tax collector, unless the property is not sold. �The right of redemption shall terminate at the close of business on the last business day prior to the date the sale begins.� (Rev. & Tax. Code � 3707 subd. (a).) If the property is not sold, the original owner�s right to redeem the property is revived. �The right of redemption revives if the property is not sold.� (Rev. & Tax. Code � 3707 subd. (d).)

A sale of property at a tax foreclosure sale conveys title free and clear of any encumbrances, except liens for taxes and assessments. �The deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale �.� (Rev. & Tax. Code � 3712.)

After the sale, the original owner can only set aside the foreclosure sale within one year, and must show an irregularity in the sale to set it aside. �A proceeding based on alleged invalidity or irregularity of any proceedings instituted under this chapter can only be commenced within one year after the date of execution of the tax collector�s deed.� (Rev. & Tax. Code � 3725.)