2007 California Revenue and Taxation Code Chapter 7. Sale To Private Parties After Deed To State

CA Codes (rtc:3691-3731.1)

3691.  (a) (1) (A) Five years or more, or three years or more in the
case of nonresidential commercial property, after the property has
become tax defaulted, the tax collector shall have the power to sell
and shall attempt to sell in accordance with Section 3692 all or any
portion of tax-defaulted property that has not been redeemed, without
regard to the boundaries of the parcels, as provided in this
chapter, unless by other provisions of law the property is not
subject to sale. Any person, regardless of any prior or existing lien
on, claim to, or interest in, the property, may purchase at the
sale. In the case of tax-defaulted property that has been damaged by
a disaster in an area declared to be a disaster area by local, state,
or federal officials and whose damage has not been substantially
repaired, the five-year period set forth in this subdivision shall be
tolled until five years have elapsed from the date the damage to the
property was incurred.
   (B) A county may elect, by an ordinance or resolution adopted by a
majority vote of its entire governing body, to have the five-year
time period described in subparagraph (A) apply to tax-defaulted
nonresidential commercial property.
   (C) For purposes of this subdivision, "nonresidential commercial
property" means all property except the following:
   (i) A constructed single-family or multifamily unit that is
intended to be used primarily as a permanent residence, is used
primarily as a permanent residence, or that is zoned as a residence,
and the land on which that unit is constructed.
   (ii) Real property that is used and zoned for producing commercial
agricultural commodities.
   (2) When a part of a tax-defaulted parcel is sold, the balance
continues subject to redemption and shall be separately valued for
the purpose of redemption in the manner provided by Chapter 2
(commencing with Section 4131) of Part 7.
   (3) The tax collector shall provide notice of an intended sale
under this subdivision in the manner prescribed by Sections 3704 and
3704.5 and any other applicable statute. If the intended sale is of
nonresidential commercial property that has been tax-defaulted for
fewer than five years, all of the following apply:
   (A) On or before the notice date, the tax collector shall also
mail, in the manner specified in paragraph (1) of subdivision (c) of
Section 2924b of the Civil Code, notice containing any information
contained in the publication required under Sections 3704 and 3704.5
to, as applicable, all of the following:
   (i) The parties specified in paragraph (2) of subdivision (c) of
Section 2924b of the Civil Code.
   (ii) Each taxing agency specified in paragraph (3) of subdivision
(c) of Section 2924b of the Civil Code.
   (iii) Any beneficiary of a deed of trust or a mortgagee of any
mortgage recorded against the nonresidential commercial property, and
any assignee or vendee of these beneficiaries or mortgagees.
   (B) For purposes of this paragraph:
   (i) "Notice date" means a date not less than 45 days nor more than
120 days before an intended sale or not less than 45 days nor more
than 120 days before the date upon which the property may be sold.
   (ii) "Recording date of the notice of default" as used in
subdivision (c) of Section 2924b of the Civil Code means a date that
is 30 days before the notice date.
   (iii) "Deed of trust or mortgage being foreclosed" as used in
subdivision (c) of Section 2924b of the Civil Code means the
defaulted tax lien.
   (b) (1) (A) Three years or more after the property has become tax
defaulted and a request has been made by a city, county, city and
county, or nonprofit organization pursuant to Section 3692.4, or a
request has been made by a person or entity that has recorded a
nuisance abatement lien on that property, to offer that property at
the next scheduled tax sale, the tax collector shall have the power
to sell and may sell all or any portion of tax-defaulted property
that has not been redeemed, without regard to the boundaries of
parcels, as provided in this chapter at the next scheduled tax sale,
unless by other provisions of law the property is not subject to
sale. Any person, regardless of any prior or existing lien on, claim
to, or interest in, the property, may purchase at the sale.
   (B) When a part of a tax-defaulted parcel is sold, the balance
continues subject to redemption and shall be separately valued for
the purpose of redemption in the manner provided by Chapter 2
(commencing with Section 4131) of Part 7.
   (2) Before the tax collector sells vacant residential developed
property pursuant to this subdivision, actual notice, by certified
mail, shall be provided to the property owner, if the property owner'
s identity can be determined from the county assessor's or county
recorder's records.  The tax collector's power of sale shall not be
affected by the failure of the property owner to receive notice.
   (3) Before the tax collector sells vacant residential developed
property pursuant to this subdivision, notice of the sale shall be
given in the manner specified by Section 3704.7.
   (c) The amendments made to this section by the act adding this
subdivision apply to property that becomes tax defaulted on or after
January 1, 2005.



3691.1.  The tax collector shall execute a notice whenever a parcel
becomes subject to the power of sale set forth in Section 3691 on a
form prescribed by the Controller.  The county clerk shall take
acknowledgment of the notice without charge.




3691.2.  The notice shall specify:
   (a) A statement that five years or more have elapsed since the
taxes or assessments on the parcel were declared in default; that
three years or more in the case of nonresidential commercial
property, as defined in Section 3691, have elapsed since the taxes or
assessments on the parcel were declared in default; or that,
pursuant to Section 3692.4, three years or more have elapsed and a
request has been made by a city, county, city and county, or
nonprofit organization to offer that property at the next scheduled
public auction.
   (b) That the property was duly assessed for taxation and the tax
legally levied.
   (c) That the property is subject to sale for nonpayment of taxes.

   (d) The amount of taxes originally declared to be in default,
unless there has been a partial cancellation of taxes, a redemption
from a portion thereof, or a correction under Sections 4831.5 and
4876.5, in any of which events, the amount shall be the balance
remaining.
   (e) A metes and bounds or lot-block-tract description of the
property.


3691.3.  By June 15 of the year property is to become subject to a
power of sale under Section 3691, the assessor shall furnish to the
tax collector a metes and bounds or lot-block-tract description of
the property.


3691.4.  The notice shall be recorded with the county recorder.
After recordation, the notice shall be forwarded to the tax
collector.  The recorder shall make no charge for the recording.



3691.5.  The tax collector shall file the notice in his or her
office and keep a record to show the subsequent disposition of the
property.


3691.6.  Upon request of the Controller, the tax collector shall
report the disposition of all tax-defaulted parcels subject to tax
collections power to sell in his or her county.



3692.  (a) The tax collector shall attempt to sell tax-defaulted
property, as provided in this chapter, within four years of the time
that the property becomes subject to sale for nonpayment of taxes
unless, by other provisions of law, the property is not subject to
sale.  If there are no acceptable bids at the attempted sale, the tax
collector shall attempt to sell the property at intervals of no more
than six years until the property is sold.
   (b) When oil, gas, or mineral rights are subject to sale for
nonpayment of taxes, the tax collector may offer the interest at
minimum bid to the holders of outstanding interests where the
interest subject to sale is a partial interest or, where the interest
subject to sale is a complete and undivided interest, to the owner
or owners of the property to which the oil, gas, or mineral rights
are appurtenant.
   (c) When parcels that are rendered unusable by their size,
location, or other conditions are subject to sale for nonpayment of
taxes, the tax collector may offer the parcel, at a minimum bid, to
owners of contiguous parcels or to a holder of record of either a
predominant easement or a right-of-way easement.  If the parcel is
sold to a contiguous property owner, the tax collector shall require
that the successful bidder request the assessor and the planning
director to combine the unusable parcel with the bidder's own parcel
as a condition of sale.
   (d) Sealed bid sale procedures shall be used when offers are made
pursuant to subdivision (b) or subdivision (c), and the property
shall be sold to the highest eligible bidder.  The offers shall
remain in effect for 30 days or until notice is given pursuant to
Section 3702, whichever is later.
   (e) The Notice to the Board of Supervisors and Notice of Intended
Sale of Tax-Defaulted Property shall indicate that any parcel
remaining unsold may be reoffered within a 90-day period and any new
parties of interest shall be notified in accordance with Section
3701.  This subdivision does not apply to properties sold pursuant to
Chapter 8 (commencing with Section 3771).



3692.1.  Notwithstanding any other provision of law, for purposes of
this chapter, all of the following apply:
   (a) "Close of auction" means the date and time for which the tax
collector, or his or her designee, provides public notice of both of
the following:
   (1) That no additional property will be offered for sale for that
public auction.
   (2) That bidding for that public auction will end.
   (b) "Date of the sale" means the date upon which a public auction
begins.
   (c) "Public auction" means any venue or medium to sell property
under this chapter that provides reasonable access to the public to
bid on and purchase this property.



3692.2.  A public auction conducted by electronic media, including
the Internet, to sell property under this chapter shall have at least
the following operational components:
   (a) A component that allows bids to be submitted by computer.
   (b) A component that authorizes the tax collector to accept bids
for as long as he or she deems necessary.



3692.3.  (a) All property sold under this chapter is offered and
sold as is.
   (b) The state, the county, and an employee of these entities
acting in the employee's official capacity in preparing, conducting,
and executing a sale of property under this chapter, are not liable
for any of the following:
   (1) Known or unknown conditions of this property, including, but
not limited to, errors in the assessor's records pertaining to
improvement of the property.
   (2) The failure of a device that is not owned, operated, and
managed by the state or county, that prevents a person from
participating in any sale under this chapter.  For purposes of this
paragraph, "device" includes, but is not limited to, computer
hardware, a computer network, a computer software application, and a
computer Web site.



3692.4.  (a) Notwithstanding any other provision of law, any county,
city, city and county, or any nonprofit organization as defined in
Section 3772.5, may request the tax collector to bring to the next
scheduled public auction any residential real property that meets all
of the following requirements:
   (1) The property taxes have been delinquent for at least three
years.
   (2) The real property will serve the public benefit of providing
housing directly related to low-income persons.
   (3) The real property is not occupied by the owner as his or her
principal place of residence.
   (b) Every request submitted to the tax collector shall include the
following:
   (1) A formal resolution of the governing board of the county,
city, city and county, or nonprofit organization, requesting the
accelerated auction of the real property and stating the public
benefit.
   (2) A written plan for the development, rehabilitation, or
proposed use of the real property and how low-income persons will be
served.
   (c) Upon receiving a request as provided by this section, the tax
collector shall include the real property in the next scheduled
public auction.
   (d) (1) If the real property is acquired by a nonprofit
organization at auction, a deed restriction shall be placed on the
real property, requiring the real property to be used for low-income
housing for a period of at least 30 years.
   (2) (A) In lieu of the 30-year restriction required by paragraph
(1), the deed may provide for equity sharing upon resale, if the real
property is a single-family home that will be sold by the nonprofit
organization to a low-income owner-occupant.
   (B) To the extent not in conflict with another public funding
source or law, all of the following shall apply to an equity-sharing
agreement provided for by the deed:
   (i) Upon resale by an owner-occupant of the home, the
owner-occupant of the home shall retain the market value of any
improvements, the downpayment, and his or her proportionate share of
appreciation. The nonprofit organization shall recapture any initial
subsidy and its proportionate share of appreciation, which shall then
be used for the purpose of providing financial assistance to
low-income homebuyers.
   (ii) For purposes of this subdivision, the initial subsidy shall
be equal to the fair market value of the home at the time of initial
sale to the nonprofit organization minus the initial sale price to
the low-income owner-occupant, plus the amount of any downpayment
assistance or mortgage assistance. If upon resale by the
owner-occupant the market value is lower than the initial market
value, then the value at the time of the resale shall be used as the
initial market value.
   (iii) For purposes of this subdivision, the nonprofit organization'
s proportionate share of appreciation shall be equal to the ratio of
the initial subsidy to the fair market value of the home at the time
of initial sale.
   (e) This section may not be construed to preclude the application,
to the real property or the current owners of that property, of any
other provision of law not in conflict with this section.



3693.  (a) With the exception of the sealed bid sale procedures
authorized under Section 3692, all sales pursuant to this chapter
shall be at public auction to the highest bidder.  The amount of the
high bid shall be paid by any method of payment authorized by Section
2502, 2503.2, or 2504, which method is at the discretion of the tax
collector.  Unless otherwise specified by the tax collector, payment
is due on or before the close of auction.
   (b) The tax collector may require a person to submit a deposit, by
any method of payment authorized by Section 2502, 2503.2, or 2504,
for the purposes specified in this subdivision.  A tax collector
requiring a deposit pursuant to Section 3693.1 may determine, and
shall provide public notice before the date of the sale upon
determining, all of the following:
   (1) The method of payment of this deposit.
   (2) The amount of this deposit.
   (3) The due date of this deposit.
   (4) Whether the deposit will be applied for one or more of the
following purposes:
   (A) As a condition to submitting a bid on property that is being
sold under this chapter.
   (B) As a payment toward specified property that is being sold
under this chapter.  If a deposit is applied for this purpose, the
deposit may be applied as payment toward more than one specified
property based upon the amount of the minimum bid for each property.




3693.1.  Notwithstanding Section 3693, the tax collector may make
the sale of any property sold under this chapter a cash or
deferred-payment transaction. If the tax collector approves the sale
as a deferred-payment transaction, the tax collector may require a
deposit in the amount of five thousand dollars (,000) or 10 percent
of the minimum bid price, whichever is greater. The balance of the
purchase price shall be paid by any method of payment authorized by
Section 2502, 2503.2, or 2504, as specified by the tax collector and
within a period specified by the tax collector not to exceed 90 days
from the date of the close of auction as a condition precedent to the
transfer of title to the purchaser. If the purchaser was required to
pay a deposit prior to the date of the sale, the deposit shall be
applied toward the purchase price of the property. Failure on the
part of the successful bidder to consummate the sale within the
period specified by the tax collector shall result in the forfeiture
of the deposit and all rights he or she may have with respect to that
property. Any forfeiture of deposit shall be distributed to the
county general fund and shall not apply to outstanding delinquent
taxes. Upon forfeiture the right of redemption shall revive.



3694.  A sale under this chapter shall take place only if approved
by the board of supervisors.



3695.  If the governing body of any taxing agency does not, before
the date of the sale, file with the tax collector and the board of
supervisors certified copies of a resolution adopted by the governing
body objecting to the sale, the taxing agency has consented to the
sale.  If the taxing agency consents to the sale the lien of its
taxes or assessments and any rights which it may have to the property
as a result of these taxes or assessments are canceled by a sale
under this chapter and it is entitled to its proper share of the
proceeds deposited in the delinquent tax sale trust fund.  If the
taxing agency does object to the sale, the lien of its taxes or
assessments or any rights which the taxing agency may have to the
property are not affected by a sale under this chapter.  Provided,
however, that any taxing agency that is also a revenue district may
not object to a sale unless it files with this objection an executed
proposed agreement under Chapter 8 of this part to purchase the
property, but not including an option to purchase, at a price not
less than the minimum bid.
   If a taxing agency that is not also a revenue district objects to
the sale and before the date of the sale applies in writing to the
board of supervisors to purchase the property under Chapter 8 of this
part at a price equal to that approved by the board of supervisors,
or upon a pro rata division of the proceeds of a sale as may be
provided under Chapter 8, the tax collector shall not proceed with
the sale.


3695.3.  As used in Section 3695, "assessments" does not include
assessments which were, at the time of the declaration of default or
sale to the taxing agency, not included in the amount required to
redeem the property.


3695.4.  In addition to the provisions in Section 3695 relative to
objections to sales, the state or city or any taxing agency or
revenue district may file with the county tax collector written
objection to the sale of, along with an application to purchase in
accordance with Chapter 8 (commencing with Section 3771), any
property that is or may be needed for public use.  The written
objection shall specify the description of the property needed,
whether the fee or an easement is required, and the public purpose to
which the property is intended to be devoted.
   The objection and application shall be filed with the tax
collector before the date of the first publication of the notice of
intended sale pursuant to Sections 3702 and 3703.  If the state, a
city, taxing agency, or revenue district files an objection and
application in compliance with this section, the tax collector may
not proceed with the sale of the subject property.



3695.5.  In addition to the provisions of Sections 3695 and 3695.4
relative to objections to sales, any nonprofit organization may file
with the county tax collector written objection to the sale for taxes
of, and a written application to purchase in accordance with Chapter
8 (commencing with Section 3771), any residential or vacant real
property that the nonprofit organization states in writing that it
will:
   (a) In the case of residential real property, rehabilitate and
sell or rent to, or otherwise use the property to serve, low-income
persons.
   (b) In the case of vacant real property, construct residential
dwellings on the property and sell or rent the property to low-income
persons, otherwise use the property to serve low-income persons, or
dedicate the vacant property to public use, including those uses
referred to in subdivision (a).
   The objection and application shall be filed with the tax
collector before the date of the first publication or posting of the
notice of intended sale pursuant to Sections 3702 and 3703.  If the
nonprofit organization files an objection and application in
compliance with this section and with any conditions of sale
established pursuant to Section 3795.5, the tax collector may not
proceed with the sale of the property.
   The terms "nonprofit organization," "low-income persons" and
"rehabilitation" shall have the same meaning in this section as in
Chapter 8 (commencing with Section 3771).



3698.  To make any sale under this chapter, the tax collector shall
transmit a notice to the board of supervisors, stating:
   (a) His intention to make a sale under this chapter, and the type
of sale;
   (b) A description of the property to be sold;
   (c) The minimum price at which it is proposed to sell the
property.



3698.5.  (a) Except as provided in Section 3698.7, the minimum price
at which property may be offered for sale pursuant to this chapter
shall be an amount not less than the total amount necessary to
redeem, plus costs.  For purposes of this subdivision:
   (1) The "total amount necessary to redeem" is the sum of the
following:
   (A) The amount of defaulted taxes.
   (B) Delinquent penalties and costs.
   (C) Redemption penalties.
   (D) A redemption fee.
   (2) "Costs" are those amounts described in subdivision (c) of
Section 3704.7, subdivisions (a) and (b) of Section 4112, Sections
4672, 4672.1, 4672.2, 4673, and subdivision (b) of Section 4673.1.
   (b) This section shall not apply to property or interests that
qualify for sale in accordance with the provisions of subdivisions
(b) and (c) of Section 3692.
   (c) Where property or property interests have been offered for
sale at least once and no acceptable bids therefor have been received
at the minimum price determined pursuant to subdivision (a), the tax
collector may, in his or her discretion and with the approval of the
board of supervisors, offer that same property or those interests at
the same or next scheduled sale at a minimum price that the tax
collector deems appropriate in light of the most current assessed
valuation of that property or those interests, or any unique
circumstance with respect to that property or those interests.



3698.7.  (a) With respect to property for which a property tax
welfare exemption has been granted and that has become tax defaulted,
the minimum price at which the property may be offered for sale
pursuant to this chapter shall be the higher of the following:
   (1) Fifty percent of the fair market value of the property.  For
the purposes of this paragraph, "fair market value" means the amount
as defined in Section 110 as determined pursuant to an appraisal of
the property by the county assessor within one year immediately
preceding the date of the public auction.  From the proceeds of the
sale, there shall be distributed to the county general fund an amount
to reimburse the county for the cost of appraising the property.
The value of the property as determined by the assessor pursuant to
an appraisal shall be conclusively presumed to be the fair market
value of the property for the purpose of determining the minimum
price at which the property may be offered for sale.
   (2) The total amount necessary to redeem, plus costs.  For
purposes of this paragraph:
   (A) The "total amount necessary to redeem" is the sum of the
following:
   (i) The amount of defaulted taxes.
   (ii) Delinquent penalties and costs.
   (iii) Redemption penalties.
   (iv) A redemption fee.
   (B) "Costs" are those amounts described in subdivision (c) of
Section 3704.7, subdivisions (a) and (b) of Section 4112, Sections
4672, 4672.1, 4672.2, and 4673, and subdivision (b) of Section
4673.1.
   (b) This section shall not apply to property or interests that
qualify for sale in accordance with the provisions of subdivisions
(b) and (c) of Section 3692.
   (c) Where property or property interests have been offered for
sale at least once and no acceptable bids therefor have been
received, the tax collector may, in his or her discretion and with
the approval of the board of supervisors, offer that property or
those interests at the next scheduled sale at a minimum price that
the tax collector deems appropriate.



3698.8.  The tax collector, upon the recommendation of county
counsel, may remove a parcel from the tax sale if it is deemed the
removal is in the best interest of the county.  The tax collector
shall notify the controller, in writing, whenever a parcel is removed
from a tax sale.



3700.  Upon providing notice to the board of supervisors as required
by Section 3698, the tax collector shall forward one copy to the
clerk or secretary of the governing board of each taxing agency,
other than the county, having the right to levy taxes or assessments
on the property and may forward one copy to each nonprofit
organization that has submitted, within one year prior to the next
scheduled tax sale or prior to July 31 of the current calendar year,
a written request to the tax collector for notification.  The copy or
copies shall be mailed or delivered at least 30 days before the
first publication or posting of the notice of intended sale.
However, where the tax collector has on file a consent from each
taxing agency, the tax collector may proceed to publish or post the
notice of sale.



3700.5.  Not less than 45 days nor more than 120 days before the
proposed sale, the tax collector shall send notice of the proposed
sale to the Controller.  The notice shall state the date, time, and
place of the proposed sale.  The tax collector shall notify the
Controller of any postponement of the tax sale and the date, time,
and place of the sale.



3701.  Not less than 45 days nor more than 120 days before the
proposed sale, the tax collector shall send notice of the proposed
sale by certified mail with return receipt requested to the last
known mailing address, if available, of parties of interest, as
defined in Section 4675.  The notice shall state the date, time, and
place of the proposed sale, the amount required to redeem the
property, and the fact that the property may be redeemed up to the
close of business on the last business day prior to the date of the
sale, and information regarding the rights of parties of interest to
claim excess proceeds, as defined in Section 4674, if the property is
sold and excess proceeds result from that sale.
   The tax collector shall make a reasonable effort to obtain the
name and last known mailing address of parties of interest.
   The validity of any sale under this chapter shall not be affected
if the tax collector's reasonable effort fails to disclose the name
and last known mailing address of parties of interest or if a party
of interest does not receive the mailed notice.



3702.  The tax collector shall publish the notice of intended sale
once a week for three successive weeks in a newspaper of general
circulation published in the county seat and in a newspaper of
general circulation published in the judicial district in which the
property is situated.  If the same newspaper of general circulation
is published in both the county seat and in such district, or if the
publication of the notice of sale is made in a newspaper which is
determined pursuant to Section 3381 as most likely to afford adequate
notice of the sale, a publication in such paper shall satisfy the
requirements for publication set forth in this section.  If there is
no newspaper published in the county seat or in the judicial
district, then publication may be made by posting notice in three
public places in the county seat or in the judicial district, as the
case may be, where no such newspaper is published.  The publication
shall be started not less than 21 days prior to the date of the sale.



3703.  If in the judgment of the board of supervisors any property
to be sold under this chapter will bring at auction less than the
cost of publication in a newspaper, the publication of the notice of
intended sale may be made in the same manner as if there were no
newspaper published in the county seat or in the judicial district.




3704.  The notice of intended sale shall include all of the
following:
   (a) The date, time, and place of the intended sale, including the
electronic address if the intended sale is by public auction via the
Internet or other electronic media.
   (b) The locations of computer workstations that are available to
the public and instructions on accessing the public auction and
submitting bids if the intended sale is conducted via the Internet or
other electronic media.
   (c) A description of the property to be sold.
   (d) The name of the last assessee of the property.
   (e) The minimum acceptable bid of the property to be sold.
   (f) A statement that if the property is not redeemed before the
close of business on the last business day prior to the date of the
sale, the right of redemption will cease.
   (g) A statement that if the property is sold, parties of interest,
as defined in Section 4675, have the right to file a claim with the
county for any proceeds from the sale which are in excess of the
liens and costs required to be paid from the proceeds.
   (h) A statement that if excess proceeds result from the sale,
notice will be given to parties of interest, pursuant to law.
   (i) A statement that if the parcel remains unsold after the tax
sale, the date, time, and location of any subsequent sale.
   (j) If applicable, that a deposit is required as a condition to
submit bids on the property.
   (k) If applicable, a statement that, for any property purchased by
a credit transaction, the right of redemption will revive if full
payment is not received by the tax collector prior to the close of
business on the date, as specified by the tax collector under Section
3693.1, that full payment is due.


3704.5.  In addition to the published notice required by Section
3702, the tax collector may advertise the intended sale by any means
authorized by the board of supervisors.



3704.7.  (a) In the case of a property that is the primary residence
of the last known assessee, as indicated by either a valid homeowner'
s exemption on file with the county assessor in the name of the last
known assessee, or the fact that the mailing address for the last tax
bill is the same address as the property, the tax collector or his
or her agent shall, in addition to any other notice required by this
chapter, make a reasonable effort to contact in person, not more than
120 days or less than 10 days prior to the date of the sale, the
owner-occupant of that property.  In the course of the personal
contact, the tax collector, or his or her agent, shall inform the
owner-occupant of the following:
   (1) That the property, if not redeemed, shall be offered for sale
at a public auction.
   (2) His or her redemption rights pursuant to Part 7 (commencing
with Section 4101).
   (b) If the personal contact described in subdivision (a) is not
made after reasonable efforts, the tax collector or his or her agent
shall attempt to serve written notice, no less than five days prior
to the date of the sale, with respect to the fact of the sale and the
requirement that the tax collector be contacted immediately with
respect to redemption of the property.
   (c) The amount of the actual and reasonable costs incurred by the
tax collector, or his or her agent, or both, in complying with the
requirements of subdivisions (a) and (b), not to exceed one hundred
dollars (0), shall be added to the required amount for redemption
of the property.
   (d) No transfer of title shall be invalidated by reason of failure
to comply with the requirements of this section.




3705.  Any city or the State or any taxing agency or revenue
district may bid on property.



3706.  If the property is not redeemed before the close of business
on the last business day prior to the date of the sale of the
property, the tax collector shall sell the property at public auction
to the highest bidder at the time and place fixed.
   In the case of a sale at public auction, no bid shall be accepted
for a sum less than the minimum price approved in the resolution of
the board of supervisors; provided, however, the tax collector may
reduce such minimum price when a partial redemption has been made
under Chapter 2, Part 7, Division 1 of this code, or when a partial
cancellation has been made under Chapter 4, Part 9, Division 1 of
this code, after such price was fixed, by not more than the ratio
that the delinquency on the portion so redeemed or canceled bears to
the delinquency upon the whole.



3706.1.  The tax collector may postpone the tax sale or any portion
thereof under the following conditions:
   (a) Notice of any postponement of a public auction tax sale shall
be made by the tax collector who, by public declaration at the time
and place originally fixed for the public auction, may postpone the
sale to a new time, date, and place. No other notice of the postponed
public auction need be given if the date for the new time, date, and
place is within seven days of the time originally fixed for the
sale.
   (b) Notice of any postponed sealed-bid sale or postponed public
auction sale that is scheduled to be held not less than eight days
nor more than 90 days from the time originally fixed for the sale
shall be made pursuant to the same provisions followed in providing
notice of the original sale to parties of interest, as defined in
Section 4675.


3707.  (a) (1) The right of redemption terminates at the close of
business on the last business day prior to the date of the sale.
   (2) If the tax collector approves a sale as a credit transaction
and does not receive full payment on or before the date upon which
the tax collector requires pursuant to Section 3693.1, the right of
redemption is revived on the next business day following that date.
   (b) Notwithstanding any other provision of law, any remittance
sent by mail for redemption of tax-defaulted property must be
received in the tax collector's office prior to the time established
in paragraph (1) of subdivision (a).
   (c) The sale shall be deemed complete when full payment has been
received by the tax collector.
   (d) The right of redemption revives if the property is not sold.




3708.  On receiving the full purchase price at any sale under this
chapter, the tax collector shall, without charge, execute a deed to
the purchaser.


3708.1.  Upon execution the tax collector shall  immediately record
the deed with the county recorder and pay the recording fees.
Recording of the deed shall constitute delivery thereof to the
grantee named in the deed.


3708.5.  If a deed to the purchaser contains a clerical error or
misstatement of fact, a corrected deed may be issued by the tax
collector and recorded with the county recorder without charge.  The
new deed shall contain a statement of reasons for its issuance and,
as far as practical, shall be the same as the original except where
corrected.



3709.  The county clerk shall take acknowledgment of the deed
without charge.


3710.  In addition to the usual provisions of a deed conveying real
property, the deed shall specify all of the following:
   (a) That the legally levied taxes on the subject property were
duly declared to be in default and were a lien on the property.
   (b) That the tax collector, pursuant to a statutory power of sale,
has sold the property.
   (c) If a taxing agency objected to the sale, the fact of the
objection and the name of the objecting taxing agency.
   (d) The name of the purchaser, the date the property was sold, and
the amount for which the property was sold.
   (e) That the property is therefore conveyed to the purchaser
according to law.



3711.  Except as against actual fraud, the deed duly acknowledged or
proved is conclusive evidence of the regularity of all proceedings
from the assessment of the assessor to the execution of the deed,
both inclusive.


3712.  The deed conveys title to the purchaser free of all
encumbrances of any kind existing before the sale, except:
   (a) Any lien for installments of taxes and special assessments,
that installments will become payable upon the secured roll after the
time of the sale.
   (b) The lien for taxes or assessments or other rights of any
taxing agency that does not consent to the sale under this chapter.
   (c) Liens for special assessments levied upon the property
conveyed that were, at the time of the sale under this chapter, not
included in the amount necessary to redeem the tax-defaulted
property, and, where a taxing agency that collects its own taxes has
consented to the sale under this chapter, not included in the amount
required to redeem from sale to the taxing agency.
   (d) Easements constituting servitudes upon or burdens to the
property; water rights, the record title to which is held separately
from the title to the property; and restrictions of record.
   (e) Unaccepted, recorded, irrevocable offers of dedication of the
property to the public or a public entity for a public purpose, and
recorded options of any taxing agency to purchase the property or any
interest therein for a public purpose.
   (f) Unpaid assessments under the Improvement Bond Act of 1915
(Division 10 (commencing with Section 8500) of the Streets and
Highways Code) that are not satisfied as a result of the sale
proceeds being applied pursuant to Chapter 1.3 (commencing with
Section 4671) of Part 8, or that are being collected through a
foreclosure action pursuant to Part 14 (commencing with Section 8830)
of Division 10 of the Streets and Highways Code. A sale pursuant to
this chapter shall not nullify, eliminate, or reduce the amount of a
foreclosure judgment pursuant to Part 14 (commencing with Section
8830) of Division 10 of the Streets and Highways Code.
   (g) Any federal Internal Revenue Service liens that, pursuant to
provisions of federal law, are not discharged by the sale, even
though the tax collector has provided proper notice to the Internal
Revenue Service before that date.
   (h) Unpaid special taxes under the Mello-Roos Community Facilities
Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1
of Division 2 of Title 5 of the Government Code) that are not
satisfied as a result of the sale proceeds being applied pursuant to
Chapter 1.3 (commencing with Section 4671) of Part 8, or that are
being collected through a foreclosure action pursuant to Section
53356.1 of the Government Code. A sale pursuant to this chapter shall
not nullify, eliminate, or reduce the amount of a foreclosure
judgment pursuant to Section 53356.1 of the Government Code.



3713.  It is hereby declared to be the policy of the state and the
intent of the provisions of this code, that the final tax deed or
deeds of all taxing agencies, including counties, cities and
counties, cities, irrigation districts, reclamation districts, and
other taxing agencies that annually levy, assess, and collect, or
cause to be collected, taxes or assessments upon real property within
the state, should be, and are hereby declared to be, upon a parity
with each other, and that regardless of when the levy of those taxes
or assessments is or has been made, and regardless of when the final
tax deed or assessment deed is or has been taken by the taxing
agency, that the rights of all taxing agencies and all those deeds
shall be equal and upon a parity with each other.



3716.  Within 10 days after the sale, the tax collector shall report
to the assessor the following:
   (a) The name of the purchaser.
   (b) The date the property was sold.
   (c) The amount for which the property was sold.
   (d) The description of the property conveyed.



3718.  The tax collector shall deposit the money received from the
sale like tax collections and shall immediately transmit a report of
sale to the county treasurer and a duplicate of the report to the
county auditor.  The report shall show:
   (a) The cost of advertising the sale, including but not limited to
the published notice required by Section 3702.
   (b) The sums received for individual parcels.
   (c) Identification of the parcels by year, page and number of the
delinquent and current roll.
   (d) The cost of recording the deeds.


3719.  The amount of the cost of advertising the sale, including but
not limited to the published notice required by Section 3702, shall
be deposited in the county general fund and the balance, excepting
the recorder's fee, shall be deposited in the delinquent tax sale
trust fund.



3720.  On receipt of the duplicate report of sale, the auditor shall
mail a copy of it to the secretary or clerk of the governing board
of each taxing agency, not also a revenue district, and other than
the State and the county, entitled to levy taxes or assessments on
the property sold.  He shall also enclose a notice for claims,
specifying:
   (a) A description of the property.
   (b) That claims on the amount received from the sale shall be made
within 60 days after the mailing of the notice for claims.
   Such duplicate copies of report of sale shall be mailed for only
those properties on which the taxing agency has consented to sale and
thus is entitled to its proper share of the proceeds deposited in
the delinquent tax sale trust fund.



3721.  On receipt of the notice for claims, the governing board of
each taxing agency, not also a revenue district, having taxes or
assessments levied on the property for the fiscal year preceding that
in which the property was sold, shall forward a share claim to the
county auditor, stating, in detail, the amounts due on the property
still unpaid to the taxing agency, claiming their share of the
proceeds from the sale as is determined by the distribution made
under this division.  The claim shall set out all the municipal and
special district tax rates applicable to the deeded property for the
fiscal year preceding that in which the property was sold.



3722.  As soon as practicable after the expiration of the time for
filing claims, the county auditor shall present all share claims
received by him to the board of supervisors.



3723.  If the board of supervisors dispute the correctness of any
share claim, the money received from the sale of the parcel involved
in the disputed claim shall remain in the delinquent tax sale trust
fund until the settlement of the  claim by agreement of the governing
boards or officers of the taxing agencies having delinquent taxes or
assessments on the parcel or by judgment of a court.



3724.  If the share claims are correct or if settlement is made of
all disputed claims relating to any parcel, the board of supervisors
shall order the money in the delinquent tax sale trust fund received
from the sale of the parcel to be distributed under this division
among the taxing agencies having filed share claims.  There shall
also be distributed to the State of California its share of the money
received from the sale of the parcel.  The auditor shall draw and
mail warrants on the delinquent tax sale trust fund in accordance
with the order, and the State's share shall be included in the next
semiannual settlement between the county and the State.
   Where the county assesses and collects taxes for a taxing agency
which is also a revenue district, such taxing agency shall receive
its share of the proceeds from any sale as distributed under Chapter
1.3, Part 8, Division 1, of this code, without the necessity of their
receiving a copy of the report of sale or of submitting a share
claim.


3725.  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.
   Sections 351 to 358, inclusive, of the Code of Civil Procedure do
not apply to the time within which a proceeding may be brought under
this section.



3726.  A defense based on the alleged invalidity or irregularity of
any proceeding instituted under this chapter can be maintained only
in a proceeding commenced within one year after the date of execution
of the tax collector's deed.


3727.  Whenever property has been purchased at tax sale, the
purchaser or any other person claiming through the purchaser may
bring suit to quiet title to all or any portion of the property and
prosecute it to final judgment.


3728.  Before holding any tax deed heretofore or hereafter given
under this chapter or Chapter 8 (commencing with Section 3771),
former Chapter 3 (commencing with Section 3475), former Chapter 4.3
(commencing with Section 3534), or former Sections 3897 and 3897d of
the Political Code to be void, the court shall determine the correct
amount of taxes, penalties and costs that should be paid upon
redemption to discharge the tax and assessment liens of all taxing
agencies and revenue districts had the purported tax sale not been
held and the court shall order the former owner or other party in
interest to pay that amount within six months as follows:
   (a) To the purchaser, or his or her grantee or successor in
interest, the amount of taxes, penalties and costs expended by him or
her as determined by the court in pursuit of title to the property,
and when the purchaser at that sale or the grantee in any deed for
taxes or his or her grantee or successor in interest is in possession
of that property in good faith and claiming the property under a tax
deed, which is regular upon its face, and has made permanent
improvements thereon, the court shall not make that decree until
there has also been repaid to the purchaser or his or her grantee or
successor in interest a sum, as determined by the court, equal to the
amount by which the value of the property has been enhanced by those
permanent improvements; and
   (b) To the county tax collector, the balance, if any, of the
correct amount as determined by the court that should be paid upon
redemption, which shall be distributed by the county to the taxing
agencies and revenue districts as redemption money.
   If the amounts are not paid in accordance with the order the court
shall not hold the tax deed void.



3728.1. If the amount required to be paid in accordance with Section
3728 of this code is not paid within such six months, the court
shall order a new tax deed issued by the county tax collector to the
original grantee or his successor in interest as designated in the
order.  The tax collector shall thereupon execute and deliver a new
tax deed which in addition to the usual provisions of a deed
conveying real property shall specify:
   (a) The oldest year in which a tax lien attached which has not
been discharged.
   (b) That the court ordered the payment of the correct amount of
taxes, penalties and costs, stating the title of the court, the
number of the case, the date of the order and the total amount of
such taxes, penalties and costs so ordered paid.
   (c) That such payment has not been made as ordered by the court.
   (d) If the original assessment description was erroneous, the
correct description as determined by the court.
   Upon proof of the execution and delivery of such tax deed the
court shall quiet the title of the grantee and his successors in
interest and after such judgment becomes final the tax deed shall be
conclusively presumed valid against the claims of any parties to the
lawsuit and their successors in interest.



3729.  (a) When a court holds a tax deed given under this chapter or
Chapter 8 (commencing with Section 3771), former Chapter 3
(commencing with Section 3475), former Chapter 4.3 (commencing with
Section 3534), or former Sections 3897 and 3897d of the Political
Code void, the purchaser at tax sale is entitled to a refund from the
county of the amount paid as the purchase price in excess of the
amount for which he or she has been reimbursed for taxes, penalties,
and costs.  The refund shall be made in the same manner as a refund
of an overpayment of tax, except that the claim shall be presented
within one year after the judgment becomes final.
   (b) The holder of a tax certificate who received all or any part
of the amount paid by the delinquent taxpayer shall not be obligated
to make any refund or repayment of any amount to either the
purchaser, the county, or any other person.  The tax collector may
use amounts on deposit in the Tax Certificate Redemption Fund to make
the refund, but only to the extent those amounts were paid to the
holder of the applicable tax certificate.



3731.  (a) When a tax deed to a purchaser of property sold by the
tax collector pursuant to this part is recorded and it is determined
that the property should not have been sold, the sale may be
rescinded by the board of supervisors with the written consent of the
county legal adviser and the purchaser of the property under any of
the following circumstances:
   (1) The property has not been transferred or conveyed by the
purchaser at the tax sale to a bona fide purchaser for value.
   (2) The property has not become subject to a bona fide encumbrance
for value subsequent to the recordation of the tax deed.
   (b) When the sale of tax-defaulted property is rescinded pursuant
to subdivision (a), the purchaser is entitled to a refund of the
amount paid as the purchase price after the purchaser executes a
recision of the tax deed. The recision shall also be executed by the
county tax collector.  The signatures of the purchaser and the county
tax collector shall be acknowledged by the county clerk, without
charge, and the county tax collector shall then record the recision
with the county recorder, without charge.  When the recision is
recorded, the tax deed becomes null and void as though never issued
and all provisions of law relating to tax-defaulted property shall
apply to the property.
   (c) The holder of a tax certificate who received all or any part
of the amount paid by the purchaser shall not be obligated to make
any refund or repayment of any amount to the purchaser, the
delinquent taxpayer, the county, or any other person.  The tax
collector may use amounts on deposit in the Tax Certificate
Redemption Fund to make the refund, but only to the extent those
amounts were paid to the holder of the applicable tax certificate.




3731.1.  The board of supervisors of any county may, by resolution,
authorize any county officer to perform on its behalf any act
required or authorized to be performed by the board of supervisors
under Section 3731.
   The resolution shall enumerate the section, or those portions of
the section,  to which the authorization is to apply, and shall
specify administrative rules and procedures concerning any act
performed under the authorization.
   The resolution shall require that the county auditor record each
act performed under the authorization.  The resolution may provide
for review by the board of supervisors of any act performed under the
authorization, or for periodic reports to the board of supervisors
of any or all acts performed under the authorization, or both.