What Is CA Revenue and Taxation Code 390?

When property taxes are not paid, local government agencies can sell the property to recover the owed amount. This power helps ensure the collection of tax revenue that funds public services. The process is regulated, providing property owners with specific timelines and opportunities to resolve their delinquency before a sale occurs.

The Process Leading to a Tax Sale

In California, if property taxes remain unpaid by 12:01 a.m. on July 1st, the property enters a “tax-defaulted” status. This begins a multi-year period before the county tax collector gains the power to sell the property. For residential properties, this period is typically five years, but it can be shortened to three years for non-residential commercial properties or properties with a nuisance abatement lien.

Once this period passes without payment, the property becomes subject to the tax collector’s power to sell under the California Revenue and Taxation Code. The tax collector must send a notice of the proposed sale by certified mail to the property owner at their last known address. This notice must be sent not less than 45 days and not more than 120 days before the scheduled auction.

Public notice is also required. The tax collector must publish the notice of the intended sale in a newspaper of general circulation within the county. This publication must run at least three times in the weeks leading up to the auction.

Redeeming Property to Prevent a Sale

A property owner’s primary method for stopping a tax sale is to exercise their “right of redemption.” This is the legal entitlement to reclaim the property by paying the full delinquent balance. The right of redemption exists throughout the period after the property initially becomes tax-defaulted, giving owners a window to prevent the loss of their property.

The absolute deadline to redeem a property is the close of business on the last business day before the scheduled auction date. If the payment is not received by the tax collector’s office by this time, the right to redeem is extinguished, and the sale will proceed. Former owners have a one-year period after the sale to challenge its validity in court based on any irregularities in the process.

To redeem the property, the owner must pay the total amount due. This includes all delinquent taxes, accumulated penalties, costs, interest, and a redemption fee. Payments made within the final 30 days before the sale often must be in a guaranteed form, such as a cashier’s check, money order, or cash. Once the full redemption amount is paid, the tax-defaulted status is cleared and the tax sale is canceled.