IS CALIFORNIA A TAX DEED STATE?
Is California a tax deed state? Find out! Each state, and the counties within it, can have different rules when it comes to taxation. Some states sell tax lien certificates, while others sell tax deeds.
Today I’ll answer your question, “Is California a tax deed state?”
It’s rare for someone to ask that question unless the person is investigating defaulted property taxes or tax defaulted auctions.
I’ll give you an insider’s perspective on the tax defaulted real estate in California. This will get you started on your way to profits.
Want to learn more about bargain real estate? Would you like to buy homes for pennies on the dollar, and without a mortgage? Or earn outrageous interest rates secured by real estate? Then you don’t want to miss this FREE class.
IS CALIFORNIA A TAX DEED STATE? – ABOUT CALIFORNIA
California with its 58 counties is considered a tax deed state by most investors.
Many of those same investors have been frustrated with the high real estate prices and the inventory shortages. Experience has shown that only a few understand the California tax deed auction process.
California is considered a very liberal state filled with large incomes and a lot of famous people from Hollywood to Silicon Valley.
However, when it comes to property tax collection, the state of California mandates a very slow 5-year tax delinquent period between the time the property owner defaults on the annual taxes and the county confiscating the property for nonpayment of taxes.
This is a bit shocking when we hear local governments complaining about not having adequate revenue.
IS CALIFORNIA A TAX DEED STATE? – PROPERTY TAXES
So, is California a tax deed state? Yes, California is a deed state.
However, the state must collect property taxes. That translates to a process which was designed by the legislature and is implemented by the board of supervisors of each county.
The supervisors authorize and the county directs after receiving a mandate to levy taxes and collect taxes.
If the treasurer/tax collector cannot collect the revenue from the taxes due, the treasurer will issue a formal notice of default and place a lien, an encumbrance, on the property.
IS CALIFORNIA A TAX DEED STATE? – A 5-YEAR DELINQUENT PERIOD
The property owner is not displaced from the property. The owner is allowed to remain on the property.
For the next 5 years after default, the county treasurer/tax collector will attempt to collect property tax.
If the taxes are unpaid, penalties for nonpayment will accrue. That means, they will be added to the principal amount of the original tax lien. All of this data can be found in the official county records.
Property taxes are a lien, a burden, an encumbrance on all parts of the owned property.
The only remedy for nonpayment of property tax is payment of the delinquent taxes. Otherwise, the property will be confiscated by the treasurer/tax collector.
IS CALIFORNIA A TAX DEED STATE? – CALIFORNIA DELINQUENT PROPERTY TAX LIST
The tax auction list will be announced in the local newspaper and additionally on the county website.
The low-population counties will have a list of properties with usually 50-100 available, although it could be slightly more.
The large population counties could have lists of thousands of tax defaulted properties on a printed list in a local newspaper and on the county website.
For example, Los Angeles County will regularly list 2,000 tax defaulted properties at the next auction.
IS CALIFORNIA A TAX DEED STATE? – TAX DEED PROPERTY
Expect to find homes in residential areas, rural areas and downtown.
Hundreds of vacant residential building lots will be available, office buildings, small farms and ranches, even agricultural property. From time to time, a wooded lot or even open range land will be available.
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IS CALIFORNIA A TAX DEED STATE? – TAX DEED AUCTIONS
The auctions are online and offline. The treasurer of the county is authorized to confiscate then auction and sell to the highest bidder at a public auction.
The rules for the auction are important and should be read multiple times, as the county will expect you to closely follow the rules. This is a serious matter, and the rules are unique at every tax defaulted property auction.
IS CALIFORNIA A TAX DEED STATE? – A MORTGAGE-FREE-PROPERTY
When the auction takes place, the county treasurer has the authority given by the state of California legislature to wipe out, that is, delete, completely extinguish the mortgage loan on the property.
In California, the loan document is titled a trust deed. The treasurer is authorized to remove that loan (trust deed) from the official public records. This is an act of law executed by the county treasurer.
This action by the government translates to a tax defaulted property purchase at a California tax defaulted auction of a property that is mortgage-free. There is no loan document on the property.
The treasurer is an official of the county government and given authority to auction defaulted property and to remove liens and delete existing encumbrances.
IS CALIFORNIA A TAX DEED STATE? – RECEIVING THE DEED
Auction buyers will receive a deed to the property according to a county official within 90 days. Is a tax deed a real deed? Absolutely! At tax deed sales, you get the deed to the property.
The treasurer has power and authority to conduct multiple auctions on different days within the county. The treasurer is also authorized to lower auction prices and modify minimum bid prices if the treasurer is not receiving bids as expected.
It is not unusual for the auction to have properties with no bidders. These properties will be retained by the county as unsold.
In most instances, those properties are open land or residential land, and most will be auctioned at a later date at a discounted price.
We hope you enjoyed Ted’s lesson, “Is California a tax deed state?”
California is a tax deed state where the owner has 5 years to pay back property taxes before the property is seized by the county and sold at a public auction to the highest bidder.
Tax defaulted property auctions and lists of the properties for sale are announced on county websites and in the local newspapers. Today many of these auctions are online.
Properties of all types are available and can be purchased for pennies on the dollar without a mortgage. The county removes the mortgage from the property before selling it at the tax sale.
The winning bidder can expect to receive the deed to the property within 90 days.
It’s important to know the rules and do your homework before purchasing tax deed property, and Ted Thomas can show you how.
For over 25 years, Ted’s been teaching students the secrets, strategies, and safest ways to profit from investing in tax delinquent property.
There’s no one more qualified than Ted, America’s leading authority on tax lien certificates and tax defaulted property investing, to show you how to do this successfully.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal coaching.
If you’d like to learn how to earn lucrative profits in real estate, you can get started today at no cost by taking advantage of Ted’s FREE Master Class and discovering how you can capitalize on America’s best kept secret, tax lien and tax deed investing.