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AB-2705 • 2026

Property taxation: tax-defaulted property sales: excess proceeds claims.

Property taxation: tax-defaulted property sales: excess proceeds claims.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Dixon
Last action
Official status
Senate - Revenue and Taxation
Effective date
Not listed

Plain English Breakdown

The specific groups exempt from the written agreement requirement are not named in the provided summary text, only that 'specified parties' exist.

Rules for Claims on Extra Money from Tax-Defaulted Property Sales

This law sets new rules requiring written agreements and specific disclosures when someone helps a property owner file a claim for extra money left over after a tax-defaulted property sale.

What This Bill Does

  • Requires that any agreement between a party of interest and someone acting on their behalf to file an excess proceeds claim must be in writing.
  • Mandates that the party of interest signs this written agreement only after receiving specified information.
  • Exempts certain specified parties of interest from these new written agreement requirements.
  • Applies only to agreements entered into on or after January 1, 2027.
  • Authorizes counties to allow claimants to fix small mistakes in their submitted documentation instead of rejecting the claims immediately.

Who It Names or Affects

  • Parties with an interest in property sold due to unpaid taxes
  • People or entities who file claims for excess proceeds on behalf of others

Terms To Know

Tax-defaulted property
Land or buildings declared subject to sale because unpaid property taxes were not paid within a certain time.
Excess proceeds
Money left over from the sale of tax-defaulted property after paying off debts and costs, which parties with an interest can claim.
Party of interest
Anyone who has a legal right to file a claim for excess proceeds from a sold property.

Limits and Unknowns

  • The law does not apply to agreements made before January 1, 2027.
  • The text states that specified parties are exempt but does not list exactly which groups qualify in this summary.
  • Counties have the authority to decide what counts as an 'insubstantial deficiency' in paperwork.

Bill History

  1. California Legislative Information

    Senate - Revenue and Taxation

Official Summary Text

Property taxation: tax-defaulted property sales: excess proceeds claims.