Rancho Cucamonga, CA Real Estate Broker: Are there Restrictions when Selling Property Purchased at a Property Tax Auction in California?

Are there Restrictions when Selling Property Purchased at a Property Tax Auction in California?

 

I was recently contacted for an answer to this question and found the answer to be one that I was not aware of.  The answer was graciously provided to me by a Senior Title Officer with Chicago Title.

Q.  Is there a restriction in the state of California that prevents a buyer who purchased a home through a property tax auction from transferring title during the first year following the auction?  In other words, if an investor or buyer purchases a property through a property tax lien sale or auction, is he restricted from reselling that property for a period of time because he cannot obtain title insurance when it transfers it to a subsequent buyer?  

A.  The buyer at tax auction can re-sell the property within a year however they may have trouble obtaining title insurance.  Title companies typically will not insure until one year has passed due to the fact that there is a one year right of redemption if a junior lien holder or former owner was not properly notified of the tax sale.  After a year the title company requires a letter from the Tax Collector showing proof of all notifications sent, this is reviewed before insurance can be issued.

 

Diane Wheatley, Broker

Real Estate Brokerage, Upland CA

 

(909) 815-4499 Direct Cell

CA DRE Broker Lic #01193694

 

 

Comment balloon 1 commentDiane Wheatley • March 07 2012 07:15PM

Comments

Diane, that is a very useful answer to a question many folks have thought about but haven't asked, 

Are there Restrictions when Selling Property Purchased at a Property Tax Auction in California?

Posted by Michelle Carr-Crowe Just Call 408-252-8900 Top 1%!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) almost 7 years ago

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