EstatePass
Transfer Of PropertyRecording_and_taxesMEDIUM

A California property owner's taxes become delinquent and the property enters tax-defaulted status. Under California law, after how many years in tax-defaulted status may the county tax collector initiate a tax sale, and what does that process allow?

Correct Answer

C) After 5 years in default, the county tax collector may sell the property to recover unpaid taxes, penalties, and costs

Under California Revenue and Taxation Code §3691, a property becomes tax-defaulted when taxes are not paid by the close of the fiscal year following the original delinquency. Once in tax-defaulted status for 5 years (3 years if subject to a nuisance abatement lien), the county tax collector is authorized to initiate a tax sale to recover delinquent taxes, penalties, and costs. The owner retains the right to redeem the property by paying all amounts owed prior to the sale.

Answer Options
A
After 1 year in default, the county may immediately sell the property without further notice to the owner
B
After 3 years in default, the state acquires title and the county has no further role in collection
C
After 5 years in default, the county tax collector may sell the property to recover unpaid taxes, penalties, and costs
D
After 5 years in default, the county may only place an additional lien but cannot force a sale

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Transfer Of Property Question

Sign up free to unlock full analysis

Background Knowledge for Transfer Of Property

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Transfer Of Property

Sign up free to unlock full analysis

Common Mistakes to Avoid on Transfer Of Property Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

property_taxtax_defaulttax_saledelinquent_taxesRev_Tax_Code_3691

Related Concepts

Recording is the act of placing a document in the public records at the county recorder's office to give constructive notice to the world of an interest in real property. Recording protects the holder's interest against subsequent claims.

A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.

Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.

Was this explanation helpful?

More Transfer Of Property Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing