Is property purchased in a tax sale eligible for title insurance?

The former owner has one year, from the date of recording of the tax deed, to challenge the validity of the tax sale (Revenue and Taxation code 177, 3725 and 3726). Please be advised that most title companies will not insure title on property purchased at a tax sale for at least one year after the recordation of the tax deed. A tax sale certificate or quiet title action may be necessary in order to clear title after the one year period.

The County of Butte makes no guarantees, express or implied, relative to the title, location, condition, right of legal access to, or permitted use of, the parcels offered for sale. The County provides no assurance that the properties are in compliance with zoning ordinances, that they conform to building codes or permit requirements, or that the situs address is correct. Parcels offered for sale may contain hazardous wastes, toxic substances, or other substances regulated by federal, state, and local agencies. The County makes no assurance, implied or otherwise, that the parcels are in compliance with federal, state or local laws governing such substances. The County assumes no responsibility, implied or otherwise, for any costs or liability of any kind imposed upon, or voluntarily assumed by, the purchaser, or any other owner, to remediate, clean up, or otherwise bring into compliance according to federal, state, or local environmental laws, any property purchased at this sale. The County assumes no liability for any other possible liens, encumbrances or easements, recorded or not recorded.

It is the purchaser's responsibility to thoroughly research each property and to determine if there are any liens or special assessments, homeowner association requirements, etc. Prospective purchasers are urged to examine the title, location and desirability of the properties available, to their own satisfaction, prior to the sale. It is also the responsibility of the purchaser to determine whether mobile homes are included in the parcel offered for sale. Some bonds, assessments and/or special district liens, which are levied by agencies or offices other than the Treasurer-Tax Collector, may still be outstanding after the tax sale. In addition, the I.R.S. has the option of redeeming, up until 120 days after the sale, any property on which there is an I.R.S. lien recorded.

Show All Answers

1. Why does the Butte County sell tax-defaulted property?
2. Can I obtain title to a property on the tax sale list by paying the delinquent taxes prior to the tax sale date? Does the county sell tax lien certificates?
3. Who is notified of the sale?
4. Is a tax sale publicly advertised?
5. When does the right to redeem a tax-defaulted property on the auction list cease?
6. How is the minimum bid on a tax sale property determined?
7. Does Butte County guarantee the property?
8. Do liens or encumbrances on a tax-defaulted property transfer to the new owner after purchase of the property at a tax sale?
9. How do I find a property I’d like to bid on at the tax sale?
10. How can I determine what use I can make of a tax sale property before I purchase it?
11. How can I find out if a property I am interested in has been withdrawn from the sale (for payment of taxes or any other reason)?
12. How can I register as a bidder?
13. How does the bidding process work?
14. How can a successful bidder pay for a property at the tax sale?
15. If I am the successful bidder, how can I hold title (vesting)?
16. How soon can I take possession of a property after purchase at the tax sale?
17. What steps should I take if there are occupants living on the property or personal property left on the premises?
18. Is property purchased in a tax sale eligible for title insurance?
19. What happens to property that does not sell at the tax sale? Can the property be purchased directly from the county?
20. How can I get more information?
21. What happens if I am the successful bidder but decide that I don’t want the property after all?
22. How can I determine whether there are outstanding assessments or liens against an auction property?
23. Under what circumstances can the former owner challenge the validity of the auction?