Tax-Defaulted Property Auction, September 2022
Research Before You Invest
The sale of these properties should not, in any way, be equated to real estate sales by licensed salesmen, brokers and realtors. The Auditor-Controller-Treasurer-Tax Collector cannot guarantee the condition of the property nor assume any responsibility for conformance to codes, permits or zoning ordinances.
You should inspect the property before investing. The burden is on the purchaser to thoroughly research before the sale, any matters relevant to his or her decision to purchase, rather than on the county, whose sole interest is the recovery of back taxes. Any research on these properties will need to be facilitated by the purchaser. The county offices provide information during regular business hours.
It is recommended that bidders consult with the Zoning Department of any city within which a particular parcel lies, or the Zoning Section of the County Planning Department for an unincorporated area parcel.
Should the successful purchaser desire a survey of the property, this must be done at the purchaser's own initiative and expense. No warranty is made by the county, either expressed or implied, relative to usability, the ground location, or property lines of the properties. The exact location, desirability and usefulness of the properties must be determined by the prospective purchaser prior to the sale.
Tax-defaulted property will be sold on an as-is basis. This is a “Buyer Beware” situation and all sales are final.
Auction Details
Auction Start: September 6, 2022, 8:00 a.m. PDT
Auction Place: Online at https://liveauctions.govease.com/ca/casonoma/1313/browse
General Terms and Conditions
Properties in Sonoma County that are subject to sale at public auction for non-payment of property taxes must be offered for sale within four years of the time the property becomes subject to the Auditor-Controller Treasurer-Tax Collector’s (ACTTC) power to sell (Revenue and Taxation Code Section 3692(a)). The ACTTC is responsible for the administration of these sales pursuant to the Revenue and Taxation Code and the written approval of the Sonoma County Board of Supervisors. Licensed salesmen, brokers or realtors, should not in any way equate the sale of this property to real estate sales.
The right of redemption on a parcel ceases at 5:00 p.m. on the last business day prior to the sale.
The ACTTC does not provide the purchaser with a title insurance policy. Many title companies may not issue their policy of title insurance on a Tax Deed to Purchaser of Tax Defaulted Property for one year, unless a quiet title action has been successfully pursued in the courts, or quit claim deeds are acquired from the former owner and all lien holders. You are encouraged to consult with the title company of your selection.
If property you have purchased is encumbered with foreclosed or unforeclosed street bonds, irrigation assessments, income tax liens, etc., a Tax Deed to Purchaser of Tax Defaulted Property may or may not discharge these obligations. A Tax Deed to Purchaser of Tax Defaulted Property will not abolish easements constituting servitudes upon, or burdens to, the property. A complete investigation of all these encumbrances, and/or all liens should be made before attending the tax sale.
The Internal Revenue Service (IRS) has the option of redeeming after sale, up until 120 days, any property on which there is an IRS lien recorded. The IRS must pay the actual amount paid for the property by the purchaser plus a specified rate of interest from the date of the sale.
Physical inspection of the property is recommended by the ACTTC Office prior to your purchase. The County of Sonoma makes no guarantee, expressed or implied, relative to the title, location, or condition of the properties for sale, nor do we make any assurances that the improvements, which may be shown on the tax assessment roll, exist at the time of your purchase. The ACTTC Office has disclosed all information of record regarding contaminated or possible contaminations of the property. The ACTTC Office makes no inspection or warranty regarding possible contamination. Any personal property, such as mobile homes or equipment on the property, is not part of the sale. All parcels will be sold “As Is”. This is a “Buyer Beware” situation and all sales are final.
Payment
GovEase payment methods are wire transfers or E-check/ACH. If you plan to pay or deposit by wire transfer, please send email to support@govease.com for wiring instructions. If a purchase is not paid within 24 hours by the close of the auction, that purchase will be voided, deposit forfeited and the purchaser may be banned from participating in future auctions. In addition to the purchase price, the documentary transfer tax ($0.55 per $500 of the purchase price) is required. Additionally, two Sonoma County cities have enacted Property Transfer Tax Ordinances and charge an additional tax. These include:
- City of Santa Rosa at $2.00 per $1,000 of consideration or portion thereof.
- City of Petaluma at $2.00 per $1,000 of consideration or portion thereof.
Only a successful bidder has the opportunity to purchase County assets. If the successful bidder defaults, under California State Law, the County cannot resort to the second highest bidder, and will be required to take appropriate legal action against the bidder who defaults.
Tax Deed to Purchaser
The successful bidder may take possession of a property after the Tax Deed to Purchaser has been recorded. However, most title companies will not insure the title until one year after the tax sale deed is recorded. Quiet title action may be needed. Legal action to challenge a tax sale must be brought within one year of the recording of the tax deed.
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 servitude 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) which 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 provision 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 Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, or 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.
The County Recorder will mail the original deed to the purchaser after recording, usually within four to six weeks.
Note: The County assumes no liability for any other possible liens, encumbrances or easements, recorded or not recorded. When property is sold at Public Auction on which the IRS holds a tax lien, the United States has the right of redemption for 120 days from the date of such sale (26 USC §§ 3712(g) and 7425(d)). The IRS will pay the actual amount paid for the property by the bidder, plus a specified rate of interest from the date of the sale, plus the expense of sale that exceed any income received from the property
Terms and Conditions of Sale
Important Information you should know before auction participation:
As a participant in the auction, you are responsible to know the laws pertaining to tax auctions, and the laws pertaining to property ownership and the associated liability of property ownership you will assume upon becoming the successful bidder. You may access the California Codes through the links below.
Research and Inspect Thoroughly Before You Bid. Prospective purchasers are urged to examine the title, location and desirability of the properties available to their own satisfaction prior to the sale. The County of Sonoma assumes no liability for any other possible liens, encumbrances or easements, recorded or not recorded. Research the item prior to bidding. Due diligence research is incumbent on the bidder. Properties are sold "AS IS". The County of Sonoma makes no guarantee, expressed or implied, relative to the title, location or condition of the properties for sale.
The sale of these properties should not, in any way, be equated to real estate sales by licensed salesmen, brokers and realtors. The County does not guarantee the condition of the property nor assume any responsibility for conformance to codes, permits or zoning ordinances. You should inspect the property before investing. The burden is on the purchaser to thoroughly research, before the sale, any matters relevant to his or her decision to purchase, rather than on the county, whose sole interest is the recovery of back taxes.
The County of Sonoma makes no warranty, either expressed or implied, relative to the usability, the ground location, or property lines of the properties. The prospective purchaser must determine the exact location, desirability, and usefulness of the properties.
The County of Sonoma is not liable for the failure of any device that prevents a person from participating in any sale. “Device” includes, but is not limited to, computer hardware, a computer network, a computer software application, and a computer Web site.
California Revenue and Taxation Code, Sections 3691 - 3731.1
Neither the State of California, nor the County of Sonoma, nor any person designated by these agencies are liable for damages sustained to the property purchased at auction from the time of the sale until the recordation of the tax deed, or thereafter.
The online sale at www.Govease.com will begin at 8:00 A.M. on September 6, 2022 until all parcels have been offered for sale. Each auction will be a total of two minutes in duration. Please check each auction item for the specific ending time. Sale will be to the highest bidder in guaranteed funds, (wire transfer, certified check/cashier’s check, or money order) in lawful money of the United States, for not less than the minimum bid as shown on this notice. Only bids submitted to the internet will be accepted. Pre-registration is required at www.Govease.com. Bidders must submit a refundable deposit of $5,000.00 in guaranteed funds, (wire transfer, certified check/cashier’s check, or money order). The deposit will be applied to the successful bidder’s purchase price. Full deed information indicating how title should be vested is required during the registration process.
The winning bidder is legally obligated to purchase the item. If the winning bidder defaults, under California State Law, the County cannot resort to the second highest bidder, and will be required to take appropriate legal action against the bidder who defaults. Failure on the part of the winning bidder to consummate the sale within the specified time shall result in the forfeiture of the deposit made and all rights that the purchaser may have had with respect to the property.
The right of redemption will cease on Friday, September 2, 2022 at 5:00 P.M., in our office, and properties not redeemed will be offered for sale. If a parcel is not sold, the right of redemption revives up to the close of business of the last business day prior to the next scheduled sale.
Tax Sale Cancellation Rights of the County of Sonoma Tax Collector:
As a condition of participating in the Sonoma County auction, the successful bidder consents to the rescission of the sale as provided by Revenue and Taxation Code, §3731, if the County subsequently determines that a property sold by the Tax Collector should not have been sold because it was publicly owned property, not in tax-default or for any other legal reason. To rescind the sale, if a tax deed has been recorded, the registered bidder agrees to sign all required forms to cancel and rescind the erroneous sale and understands that the County will refund only the purchase amount paid and that the Tax Collector and the County of Sonoma have no further liability in the matter. If the tax deed has not been recorded, the County of Sonoma has the right to refund the purchase price without further action by the purchaser and without the Bidder’s prior consent or signature. Bidders will be informed of any cancelled sales.
Acknowledgement Of Terms And Conditions:
Any bid at the auction is made subject to all of the foregoing terms and conditions, and by bidding , the bidder acknowledges and agrees to such terms and conditions and expressly waives any objection, claim or right to rescind a bid or any purchase arising therefrom. Any information provided by the bidder on the registration form is considered public information.
Minimum Bids
The following are guidelines used in determining the minimum bid for the properties offered for sale:
The minimum price at which property may be offered for sale pursuant to Section 3698.5 of the California Revenue and Taxation Code shall be an amount not less than the total amount necessary to redeem, plus costs.
The “total amount necessary to redeem” is the sum of the following:
- All unpaid defaulted taxes
- Delinquent penalties
- Redemption penalties
- A redemption fee of $15.00
- Additional Costs as described in the following Revenue and Taxation Codes:
- Section 4112(a)(b)
A fee in an amount reasonably necessary to reimburse the tax collector shall be distributed to the general fund to reimburse the county for its costs of obtaining names and last known mailing addresses of and for mailing notices required by Section 3701, to parties of interest. - Section 4672
There shall be distributed to the State of California $1.50 for any portion of each separately valued parcel of real property. - Section 4672.1
There shall be distributed to the county general fund to reimburse the county for the cost of conducting the sale $150. - Section 4672.2
There shall be distributed to the county general fund to reimburse the county for the cost of giving notice $35. - Section 4673
Amounts to reimburse the county for the cost of advertising sales of tax-defaulted property shall be distributed to the county general fund. - Section 3704.7(c)
Up to $100 for each parcel that is a primary residence for the last known assessee. Indicators of this condition include a valid homeowner’s exemption or evidence showing that the mailing address on the tax bill is the same as the situs.
- Section 4112(a)(b)
Rights of Parties of Interest
To claim the excess proceeds from the sale of tax defaulted property you must be a “party of interest” as defined by Section 4675 of the Revenue and Taxation Code.
Your claim for excess proceeds must be filed within one year after the tax collector’s deed to purchaser is recorded. By law, claims filed after the one-year period cannot be accepted.
The law protects parties of interest by requiring assignments to another person of the right to claim excess proceeds can be made only by means of a dated, written document. The document must specifically state that the right to claim excess proceeds is being assigned and that each party to the transaction has informed the other of the value of the right being assigned.
Questions and Answers
The following are typical questions and answers and may assist you in understanding auction and bidding procedures. If you have additional questions, please contact the tax collector’s office at taxcollector@sonoma-county.org.
By what authority is tax-defaulted property sold by the County Tax Collector?
Under jurisdiction of the California Revenue and Taxation Code, the County Board of Supervisors may direct the Tax Collector to sell at auction real properties which have been tax-defaulted more than five years (3691(a)), or have a nuisance abatement lien remaining unpaid more than three years (3691(b)).
California Revenue and Taxation Code, Sections 3691 - 3731.1.
What is the purpose of selling tax-defaulted property?
The property is for sale because one or more tax assessments have remained unpaid for more than five years. The County’s purpose in selling tax-defaulted property is to either redeem the property or return the parcel to a revenue generating parcel by transferring ownership to a responsible party.
Who may participate in the auction?
Any person other than a Sonoma County Auditor-Controller Treasurer-Tax Collector employee, may participate in the internet auction. (GC §1090) Participants are required to pay a refundable $5,000.00 deposit prior to bidding (§ 3693(b)(4). The Tax Collector, also, reserves the right to prevent or ban any person from participating in the auction. Failure to pay for purchased properties can prohibit you from participating in future sales. If the winning bidder fails to pay for the purchase the deposit is forfeited (§3693.1).
How often and in what manner is an auction conducted?
Public auctions for tax defaulted properties are generally held every other year and take place on the internet.
Is the auction advertised; if so, how and when?
Yes. Notice of the auction is published three times in successive weeks, at seven-day intervals, within the last 45 days prior to the scheduled auction date. Notice is published in the Press Democrat. A property list is made available on-line, free of charge, at: https://sonomacounty.ca.gov/administrative-support-and-fiscal-services/auditor-controller-treasurer-tax-collector/divisions/revenue-accounting/tax-defaulted-property-auctions
How is the minimum bid for tax-defaulted property determined?
The minimum bid is comprised of the amount of tax and penalties required to redeem the parcel plus the Tax Collector’s cost of sale. Neither the minimum bid nor the assessed value represents the property’s market value. Property is sold to the highest bidder for guaranteed funds in an amount no less than the minimum bid listed §3698.4(a)). If a property does not receive the minimum bid, the Tax Collector may, at their discretion, re-offer the parcel at the end of the auction at a reduced minimum bid §3698.5(c)), re-offer the property within ninety days §3692(e)), or hold the property until the next scheduled auction. Under no circumstances is property sold over the counter.
Does the previous owner of the property still have the right to redeem the property after the internet auction?
No. The property owners right of redemption ceases at 5:00 P.M., the last business day prior to the scheduled sale (§3707). There is no redemption period after a sale. However, if the last assessee believes we have sold their property in error, they may contest the sale by initiating a court action within one year from the date of the sale. It is, therefore, prudent to consider withholding development of the property for one year as improvement funds you invest will not be refunded if a sale is rescinded within the allotted time period. If a property is sold for more than the minimum bid required, the previous owner has the right to claim excess proceeds along with all qualified parties of interest. (Note - Redemption of tax-defaulted property must, also, be made in guaranteed funds; cash, cashier’s check or bank issued money order.)
Do liens and encumbrances on a tax-defaulted property transfer to the new owner after the purchase of the property at a public auction?
No. All Private liens (i.e., Deeds of Trust, Mechanics Liens, Judgments) recorded against the last assessee, will be extinguished. Public liens (i.e., 1915 Act Improvement Bonds, Mello Roos Community Facilities Bonds, and Code Compliance) will not be extinguished.
Revenue & Taxation Code, §3712 reads as follows:
The deed conveys title to the purchaser free of all encumbrances of any kind existing before the time of the recording of the Tax Deed, except:
- a) Any lien for installments of taxes and special assessments, which installments will become payable upon the secured roll after the time of the sale.
- b) The lien for taxes or assessments or other rights of any taxing agency which does not consent to the sale under this chapter.
If a taxing agency chooses to preserve a lien rather than participate in excess proceeds, you will find that lien listed on the Tax Defaulted Property List in the Preserved Lien field. The public auction purchaser will be responsible for paying these liens (except IRS liens).
Other agencies (i.e., County, State taxing authorities) may recoup their liens by participation in excess proceeds in the same manner as persons who have recorded private liens.
- c) 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.
- d) 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.
- e) Unaccepted, recorded, irrevocable offers of dedication of the property to the public or a public entity for a public purpose, and recorded options on any taxing agency to purchase the property or any interest therein for a public purpose.
- f) Unpaid assessments under the Improved Bond Act of 1915 (Division 10 (commencing with §8500) of the Streets and Highways Code) which are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with §4671) of Part 8.
- g) 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.
Please Note: The IRS lien survives for a period of 120 days. If the IRS wishes, they may purchase the property back from our successful bidder, at the same purchase price paid by the bidder, within 120 days of the date of the public auction. If the IRS does not act within 120 days, their lien cannot be enforced against the property or the new owner of the property. The IRS may pursue collection from the original assessee against whom the lien was recorded.
- h) Unpaid special taxes under the Mello-Roos Community Facilities
Act of 1982 (Chapter 2.5 (commencing with §53311) of Part 1 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 §4674) of Part 8.
How do I find or see a property I might want to bid on at the auction?
While we try to give all possible assistance in helping prospective bidders pinpoint a property location, vacant land usually has no physical address. Its approximate geographical location can be determined through the use of the County Assessor’s plat maps and map books. Exact boundary lines of a property can be determined only by a survey of the property, initiated at the bidders’ expense. Improved properties generally bear a situs (street) address. Vacant lots will sometimes bear the notation “No Situs Address.” Be aware that buildings or improvement structures showing on record may actually be removed or unusable. Examination of the site is highly recommended.
Note: The information provided in our listing is intended to identify the parcels for sale according to delinquent tax records. We identify property by Assessor’s Parcel Number. The Assessor’s Parcel Number (APN) refers to the assessor’s map book, the map page and the block on the map, if applicable, and the individual parcel on the map page or in the block.
When researching, make sure you match the right APN to the physical land. The Tax Collector makes no warranties or representations beyond our ability to provide basic tax information and convey title. It is the purchaser’s responsibility to determine location, accessibility and usability of property.
How can I determine what use I can make of a property before I purchase it?
For further details, consult the zoning department of any city within which the property lies or the zoning division of the County Permit & Resource Management Department to determine land use for a parcel in an unincorporated area (not within a city boundary). Examine the County Recorder’s records for any recorded easements on a property.
How can I pay for a purchase made at an internet auction?
GovEase payment methods are wire transfer or E-check/ACH. If you plan to pay or deposit by wire transfer, please send email to support@govease.com for wiring instructions. If a purchase is not paid within 24 hours by the close of the auction, that purchase will be voided, deposit forfeited and the purchaser may be banned from participating in future auctions. In addition to the purchase price, the documentary transfer tax ($0.55 per $500 of the purchase price) is required. Additionally, two Sonoma County cities have enacted Property Transfer Tax Ordinances and charge an additional tax. These include:
- City of Santa Rosa at $2.00 per $1,000 of consideration or portion thereof.
- City of Petaluma at $2.00 per $1,000 of consideration or portion thereof.
How will title in the deed to the purchaser be vested?
Title is vested (the manner in which your name is recorded) in the name of the successful bidder as completed in the registration through www.govease.com. Alterations will not be accommodated after a purchase. If you change your mind about how you would like the property vested, you will need to wait until after the Tax Deed is recorded by the Tax Collector, and then, record a separate document to change the manner of vesting.
When will the deed to my purchase be recorded?
Tax Deed to the purchaser of tax-defaulted property will be recorded within sixty (60) days of the date of the auction. (§3708)
How soon may I take possession of a property I purchase at the public auction?
Generally, possession may be secured upon the recordation of the Tax Deed. Do not attempt to enter property prior to receipt of the recorded deed. If there are questions regarding removal of a prior resident, or any other concerns, you should consult an attorney. A legal eviction procedure may be required, and if necessary, should be served by law enforcement officers.
What happens to any monies collected over and above the delinquent taxes and costs required for the public auction?
If the property is sold at auction for more than the required minimum bid, all qualified parties of interest, along with the last Assessee, will receive, by mail, notice of proceeds available and a claim form to apply for any excess proceeds which may remain after satisfaction of taxes, assessments and costs (§4675). Processing of Claims for excess proceeds will commence after one year following the date of the recordation of the tax deed to purchaser and funds may be distributed from three to twelve months thereafter. Claims are determined by priority of lienholder, then title interest. The purchaser of tax-defaulted property is not permitted to participate in excess proceeds.
What if I buy a property, and then, change my mind?
All sales are final. Cancellation or refund is not an option. We have tried to provide you with sufficient information available to assist you in making an informed decision about participating in a public auction.
PLEASE, INVESTIGATE BEFORE YOU BUY
It is to your benefit to thoroughly examine the physical property and the official records pertaining to the property. Some of the departments you might contact are: Permit & Resource Management, County Recorder, County Assessor. If contamination or toxicity is suspected contact the California Environmental Protection Agency.
All prospective bidders should review the recorded documents pertaining to each parcel or hire a title search from another source. Any survey of the property must be done at the expense of the prospective bidder. Please note, the Tax Collector purchases a title search from a private corporation, therefore, our title search is not public information and cannot be redistributed or resold to the public.
The sale of tax-defaulted property should not be equated with real estate sales by licensed salespersons, brokers or realtors. The Tax Collector cannot guarantee the condition of the property nor assume any responsibility for conformance to codes, permits or zoning ordinances.
Tax-defaulted property is sold on an “as is” basis. The burden is on the purchaser to thoroughly research all matters relevant to his/her decision to buy before placing a bid. No warranty is made by the County either expressed or implied, relative to usability, ground location or property lines of the property.
RESEARCH, and, as always, BUYER BEWARE. ALL SALES ARE FINAL.
Here is a link to the California Revenue and Taxation Codes, Sections 3691 - 3731.1, which addresses tax auctions specifically. At that site you will see references to other code sections, to access them use this link to all Revenue and Taxation California Codes where you may search each code section. And finally, here is a link to all of California's codes.