Santa
Cruz County
Treasurer ¨ Tax Collector
Room 150
Phone (831)454-2510 · Fax (831)454-2257· E-Mail
Frequently
Asked Questions about
Public
Internet Auction of Tax Defaulted Land
PROPERTY IS SOLD “AS IS”
INSPECT THOROUGHLY
BEFORE YOU BUY!!
Why does the County sell
tax-defaulted property?
When secured real property remains
tax-defaulted for five years, it becomes subject to the Tax Collector's Power
to Sell, and may be sold at public auction. The purpose of offering
tax-defaulted property at auction is to collect the unpaid taxes and to convey
title of the property to a responsible owner.
Buyer Beware!
It is your responsibility as a bidder to
have investigated any parcels that you wish to bid on. No statement is made nor
implied as to what use you may put the parcel if you are the successful bidder.
See the next item below as to how to determine what use can be made of the
property. It is also recommended you physically look at the property to
determine its use.
How can I determine what
use I can make of a tax sale property before I purchase it?
Consult the zoning department of the city
in which the property lies or the zoning section of the County Planning
Department for a property in an unincorporated area of the county (i.e., not
lying within an incorporated city's limits) regarding use of the parcel. In
addition, examine the
How often are public
auctions held?
The law requires that a sale be held at
least once every four years. In
Are tax sales publicly
advertised?
Yes. State law dictates that notice of a
tax sale must be published three times in successive seven-day intervals before
the tax sale date, in a newspaper published in and of general circulation
within the county.
Can I mail in or submit a
sealed bid for a property in a public auction?
You can fax a proxy bid via an Offline
Bid Form to Bid4Assets, the online auction venue that will be facilitating the
sale, prior to the auction open date.
Bid4Assets must receive Offline Bid Forms by the date and time the
online auction opens in order to ensure bids are posted.
Offline bid forms will be available
approximately 30 days prior to the auction open date and may be downloaded from
the Bid4Assets Web site once the auction is posted online. Please go to www.Bid4Assets.com/TaxSale for
sale details.
Can I obtain a property
available at the tax sale by paying the delinquent taxes prior to the tax sale
date?
No. 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 during the on-line auction. Paying taxes on such
property will only cause its redemption for the assessed owner.
When is
the last day the property owner may redeem the tax-defaulted property,
to prevent its sale at Auction?
The right to redeem a tax-defaulted
property subject to the Power to Sell ceases at the close of business (
How do I find or see
property on which I want to bid at the tax sale?
While we try to assist prospective
purchasers to pin-point a property location, vacant land (which accounts for
most properties offered at auction) usually has no address. The approximate
location can be determined by the
Who qualifies as a
potential bidder at public auction?
Anyone who wishes to bid at the online
public auction must register with Bid4Assets and submit a pre-bid deposit
within the posted deadlines to qualify as a bidder. Detailed instructions on how to submit a
pre-bid deposit will be posted on
How is the minimum bid
amount determined?
When a property first becomes eligible
for public auction, the minimum bid shall not be less than the total amount to
redeem the property, plus costs associated with offering the parcel for sale.
If any property is not sold due to lack of interested bidders, the minimum bid
for those particular properties may be reduced at subsequent sales.
How and when does the
successful bidder pay for a property at the tax sale?
Settlement Terms will be posted on each
auction once the parcels have been posted for sale. Please go to www.Bid4Assets.com/TaxSale for
sale details.
Do liens or encumbrances on
tax defaulted property transfer to the new owner after the purchase of the
property at public auction?
Section 3712 of the California Revenue
and Taxation Code states:
Title conveyed. The deed conveys title to the purchaser
free of all encumbrances of any kind existing before the sale, except:
Any lien for
installments of taxes and special assessments, which installments will become
payable upon the secured roll after the time of the sale.
The lien for taxes or
assessments or other rights of any taxing agency which does not consent to the
sale under this chapter.
Liens for special assessments levied upon
the property conveyed which 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.
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. 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.
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.
Any federal Internal
Revenue Service liens which, 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.
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.
Are there any guarantees
which accompany property acquired at public auction?
No. All parcels offered at public auction
are sold "as is". No warranty is expressed or implied in any manner
regarding property sold at the public auction, including, but not limited to,
the following example: no claims are made to guarantee access to, or building
permits for, any of the parcels involved in the sale. Prior to bidding, it is
your responsibility to adequately research properties, so you
know what you are buying. Lack of adequate research may result in the purchase
of unusable property, with no entitlement to a refund. ALL SALES ARE FINAL.
How will title to the
property be vested?
Title will be vested in the name of the
actual purchaser. Upon completion of the auction, Bid4Assets will notify all
purchasers via email of their winnings.
Purchasers will be directed to an online form, or “Deed Wizard”, via a
link within the congratulatory email that will capture vesting information for
each parcel purchased.
If you are acting as an agent, and title
is to be vested differently, we require a notarized letter from the individual
for whom you are acting as agent, stating the manner in which title is to be
vested. This letter must be received by
the settlement deadline as detailed in the Deed Wizard form.
How soon can I take
possession of a property after my purchase at the online auction?
You should consult an attorney.
Generally, the successful bidder may take possession of a property after making
payment in full and complying with any conditions set forth between the tax
collector and the successful bidder. However, the validity of the tax
collector's deed to the purchaser may be challenged within one year after the
execution of the deed. In addition, if the property purchased has an IRS lien
on it, the Internal Revenue Service has the right to redeem the property from
the purchaser, up to 120 days from the date of the sale.
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