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

Plain English Breakdown

Checked against official source text during the last sync.

Property Tax Sales: Claims for Extra Money

This law changes how people can claim extra money from the sale of a property that has unpaid taxes.

What This Bill Does

• Removes the requirement for someone acting on behalf of another person to provide proof about advising them of their rights when filing a claim for extra money from a tax-defaulted property sale.
• Allows parties interested in a property sold due to unpaid taxes to enter into agreements with others to file claims for any extra proceeds, but these agreements must meet certain conditions.
• Requires that the agreement clearly tells the party of interest about their right to file a claim directly with the county without paying anyone else.
• Limits this new rule to agreements made on or after January 1, 2027.

Who It Names or Affects

• People who have unpaid property taxes and whose properties are sold due to those unpaid taxes.
• Entities that help parties of interest file claims for extra money from the sale of tax-defaulted properties.

Terms To Know

Tax-Defaulted Property

A property where the owner has not paid their property taxes and it is sold to pay off those unpaid taxes.

Excess Proceeds

Extra money left over after a tax-defaulted property sale, which can be claimed by interested parties.

Limits and Unknowns

• The bill only applies to agreements made on or after January 1, 2027.
• It does not specify what happens if the agreement is not followed correctly.

Official Summary Text

AB 2705, as amended, Dixon.
Property taxation: tax-defaulted property sales: excess proceeds claims.
Under existing property tax law, if unpaid property taxes are declared delinquent and the taxes remain unpaid, the property is declared tax-defaulted and subject to sale, as provided, if not redeemed by the owner within a certain amount of time. Existing property tax law authorizes any party of interest in property that is sold as a tax-defaulted property to file a claim with the county for the excess proceeds, as described.
Existing law requires a person
or entity
who acts on behalf of, or in place of, any party of interest with respect to filing a claim for any excess proceeds to submit proof with the claim of certain disclosures, including that the party of interest has been advised of their right to file a claim for the excess
proceeds on their own behalf directly with the county at no cost.
This bill would
delete the above-described requirement and would, instead, authorize any party of interest to enter into an agreement with any person or entity to act on behalf of the party of interest with respect to filing a claim for any excess proceeds. The
subject an agreement between a party of interest and a person or entity who acts on behalf of, or in place of, a party of interest with respect to filing a claim for any excess proceeds to additional conditions, as specified. In that regard, the
bill would
condition the validity of an
require the
agreement
entered as described above on certain conditions, including that the agreement clearly advises the party of interest of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost.
to, among other things, be in writing and to be signed by the party of interest after receipt of specified information.
The bill would limit the provision above to agreements entered into on or after January 1, 2027.

Current Bill Text

Download Bill PDF