The primary purpose of a tax sale is to collect taxes that have not been paid by the property owner for at least five years. Offering property at public auction achieves this by either selling the property or by forcing payment of the property taxes. During those five years, the taxpayer has repeatedly been offered payment plans and still has the ability to keep the property until the day before the sale by paying the taxes in full. If the property is sold, lienholders and the former owner may claim proceeds in excess of the taxes and costs of the sale.
\n\n \nA public auction or sealed bid sale is conducted pursuant to the California Revenue and Taxation Code, beginning with Section 3691. The Code is available at most public libraries and on the internet at https://leginfo.legislature.ca.gov/faces/codes.xhtml. As a bidder, you are responsible to know the laws pertaining to tax auctions.
\n\n \nNo. Legal title to a tax-defaulted property subject to the Tax Collector’s power to sell can be obtained only by becoming the successful bidder at the county tax sale. Paying taxes on such property will only cause its redemption to the assessed owner.
\n\nNo California county sells tax lien certificates at this time.
\n\n \nThe law requires the Tax Collector to attempt to notify the current owner(s), all lienholders, and public agencies.
\n\n \nYes. The legally required notice of a tax sale is published in a publication within the county three times in successive seven-day intervals before the tax sale.
\n\n \nA list of parcels will be available on our website 3-4 weeks prior to the date of auction. It will also be available on https://sanmateo.mytaxsale.com.
\n\n \nThe right to pay the taxes in full to avoid the sale of the property ceases at the close of business, 5:00 p.m. (PDT), on the last business day prior to the sale. There is no extended right of redemption in the State of California as exists in some other states.
\n\n \nState law dictates that the minimum bid on a tax-defaulted parcel offered by the Tax Collector at public auction shall be no less than the total amount to redeem the property plus costs. The minimum bid may be lowered, at the Tax Collector’s discretion, if a parcel does not sell at the original minimum bid.
\n\n \nAll properties are sold as is. Be an informed bidder. Prospective purchasers are urged to examine the title, location and desirability of the properties available to their own satisfaction prior to the sale. The County makes no guarantee, expressed or implied, relative to the title, location, or condition of the properties for sale. In addition, the County assumes no responsibility, implied or otherwise, that the properties are in compliance with zoning ordinances, mining and reclamation regulations, conform to building codes and permits and/or any other applicable regulations or permits. No government entity is liable for damages sustained to property purchased at public auction, including from the time of the sale until the recordation of the tax deed to the purchaser. All sales are final.
\n\n \nWhen we become aware of properties on our sales list that are known or suspected to be contaminated, we will identify these properties and the Lead Agency’s name and address where all available information may be reviewed. DO NOT bid on these properties unless you understand the issues related to contaminated properties. Prior to bidding, you should contact your attorney regarding the possible purchase of contaminated properties.
\n\n \nA title search initiated at the purchaser’s expense should reveal any liens or encumbrances of record on a property in the tax sale. Per Revenue and Taxation Code Section 3712:
\n\n“The deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except:
\n\na. Any lien for installments of taxes and special assessments, that installments will become payable upon the secured roll after the time of the sale.*
\n\nb. The lien for taxes or assessments or other rights of any taxing agency that does not consent to the sale under this chapter.
\n\nc. 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 which 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.†
\n\nd. Easements of any kind, including prescriptive, 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.
\n\ne. 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.
\n\nf. Unpaid assessments under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) which 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.
\n\ng. 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.‡
\n\nh. 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.”
\n\n*The delinquent taxes and the current secured taxes will be paid in full.
\n\n†This section does not apply in Siskiyou County.
\n\n‡The IRS has the right to redeem the property from the purchaser up to 120 days after the sale. If the IRS redeems the property, it will reimburse the new owner for the purchase price plus interest at 6% per annum from the date of sale, plus expenses of sale that exceed any income received from the property. If no action is taken within this period, the lien is extinguished.
\n\n \nVacant land (which accounts for most properties offered at this tax sale) may or may not have a street (situs) address. The County Assessor’s property maps and map books can determine its approximate geographical location. Improved properties frequently (but not always) will bear a street address, making it easier to determine the general location. Exact boundary lines of a property can be determined only by a survey of the property undertaken at the purchaser’s expense. Assessor’s property maps may be downloaded from the website or may be purchased from the County Assessor’s office. https://smcacre.org/assessor or https://smcacre.org/assessor/assessor-maps
\n\n \nNo expressed or implied warranty is given with respect to the parcels, and they are sold on an “as is basis”. Bidders are responsible for knowing what they are purchasing. The Planning Department can provide zoning, General Plan designation, water source and other information. Examine the County Recorder’s records for any recorded easements on a property.
\n\n \nCheck the https://sanmateo.mytaxsale.com website. The right of redemption terminates at 5:00 p.m. PDT on the last business day before the tax sale begins.\nAuction Schedule
\n\n \nA bidder must have internet access and a web browser; recommended browsers include the latest version of Mozilla Firefox, Google Chrome, and Microsoft Edge. The DeedAuction site will not support Internet Explorer.
\n\n \nRegistration on the website is free. However, you will need to abide by the Tax Collector’s deposit rules, including a non-refundable $35 processing fee.
\n\n \nRepresentatives of Grant Street Group are available via email (DeedAuction@GrantStreet.com) or via phone at (877) 274-9320 between 5:00 a.m. and 5:00 p.m. PT on business days to provide instruction and answer questions regarding use of the website.
\n\n \nAll bidders may begin placing bids at 8 am PT on the scheduled day of the sale. Refer to the Auction Schedule for upcoming sales.
\n\n \nProxy bidding is a form of competitive sale in which bidders input the maximum bid they are willing to pay for a property they would like to purchase. The system will then automatically enter bids on their behalf, as necessary, up to their maximum bid.
\n\nIf you enter a maximum bid that is the same as another lead bid, the first bidder to submit that amount would be deemed the leader. The trailing bidder would be notified with a message on the screen that your bid was submitted successfully, but you trail an earlier bidder at the same price. The non leader would have to increase his/her maximum bid to become the leader.
\n\n \nAn ACH debit is an electronic funds transfer from your bank account, initiated by the Tax Collector with your prior authorization. For more information on ACH, please visit the NACHA, the Electronic Payments Association, at www.nacha.org.
\n\nFunds must be drawn from a US financial institution. Some types of money market, brokerage, and/or trust accounts cannot accept ACH debits. Please check with your financial institution prior to initiating payment on the website.
\n\n \nOnce an auction ends, the Bidding Summary shows the details of the auction and what you need to do to complete the sale. The Bidding Summary checklist includes:
\n\nThe difference between the successful bidder's deposit and the total amount due must be received via wire transfer within five (5) business days of the close of the tax sale.
\n\n \nIf you fail to make the final payment within five (5) business days of the close of the tax sale, you will forfeit your deposit.
\n\n \nIf you are the winning bidder, you must pay in addition to your final bid the following costs: documentary stamp taxes ($.55 per $500 or fraction thereof of the final sales price), recording fees, and a final payment processing fee.
\n\n \nThis means that a property has been withdrawn from the sale and is not available for bidding. Properties may be withdrawn from the sale from time to time and the auction site will be updated daily to reflect any such changes.
\n\n \nThe vesting on the Tax Deed will be as shown on the Deed Information form you will receive as a successful bidder. We cannot advise you in this area but some of the most common ways in which property is vested are listed below. You may wish to consult an attorney. If you would like the property to be deeded to a trust, we would need the name, date and trustees of the trust.
\n\nA Single Man
\n\nA Single Woman
\n\nAn Unmarried Man
\n\nAn Unmarried Woman
\n\nA Married Man
\n\nA Married Woman
\n\nA Widower (Man)
\n\nA Widow (Woman)
\n\nHusband and Wife as Joint Tenants
\n\nTenants in Common
\n\nA Married Man as His Sole and Separate Property
\n\nA Married Woman as Her Sole and Separate Property
\n\nA Corporation
\n\nA Public Agency
\n\n \nThe successful bidder may generally take possession of a property immediately after making payment in full and the tax deed to the purchaser has been recorded. Tax deeds are recorded within two weeks after payment.
\n\n \nThis is a civil matter that could involve eviction proceedings or a disposition of personal belongings. You may wish to seek private legal advice for more information.
\n\n \nThe former owner has one year from the date of recording of the tax deed to challenge the validity of the tax sale (Revenue and Taxation code 177, 3725 and 3726). During this one-year challenge period, it may not be possible to obtain a clear title from a title company. Occasionally, a quiet title action is necessary if there has been an irregularity in the title prior to the tax sale. In the event that the former owner is successful at overturning the sale, the sale price would be returned to the purchaser, but any improvements made to the property would not be reimbursed to the person that made them.
\n\n \nThe owner’s right to redeem the property revives if not sold. The unsold properties will be offered at subsequent tax sales until redeemed or sold. Properties cannot be purchased directly from the county because the property must be sold at auction.
\n\n \nSpecific information on each parcel will be available on https://sanmateo.mytaxsale.com. Please review this information before you contact the offices involved so you can ask informed questions. It is the bidder’s responsibility to perform due diligence before bidding on an item.
\n\n \nBe sure you want the property before you bid. ALL SALES ARE FINAL AND THERE ARE ABSOLUTELY NO REFUNDS. If you default, under California State Law, the County cannot resort to the second highest bidder and will be required to take legal action against you. Failure to consummate the sale within the specified time shall result in the forfeiture of any deposit made and all rights that the purchaser may have had with respect to the property. Failure to consummate the sale will also bar the bidder from participating in future tax sales for that county and possibly other counties.
\n\n \nA refund of any unused deposits will be issued within 10 days of the close of the sale.
\n\n \nRULES ARE SUBJECT TO MODIFICATION BETWEEN NOW AND COMMENCEMENT OF SALE
\n\nPROPERTY IS SOLD “AS IS”
\n\nINSPECT THOROUGHLY BEFORE YOU BUY!
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