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5400-5401 Notice of Power to Sell: Standard Rescission

5400. GENERAL INFORMATION
When property that is subject to sale is redeemed, the tax collector must record a rescission of the recorded Notice of Power to Sell Tax-Defaulted Property (Rev. & Tax. Code §4112). Forms SCO 5-08 and SCO 5-09 comply with the statutory requirement for releasing the recorded Notice of Power to Sell, form SCO 7-01. When the rescission is completed, the county tax collector's signature must be acknowledged by the county clerk, the notary public or another county official, pursuant to Civil Code section 1181, without charge, and recorded by the county recorder for a fee, as provided in Government Code section 27361.3.

The tax collector must collect the recording fee at the time of redemption and transmit it to the recorder. After the rescission has been recorded, it should be returned to the redemptioner by the recorder (Rev. & Tax. Code §168.5).

In addition to the recording fee, the tax collector must collect a fee that was established by the board of supervisors.

This fee is deposited in the county general fund to reimburse the county for its cost in obtaining the names and last known mailing addresses of parties of interest, as defined by Revenue and Taxation Code section 4675, and for mailing the notices, as required by Revenue and Taxation Code section 3701 (see Rev. & Tax. Code §4112 and M-5102 regarding the redemption amount and M-5125 for the parties-of-interest fee).

If tax-defaulted property is redeemed prior to the proposed sale but after the county has incurred notice or publication costs as required by Revenue and Taxation Code section 3702, a fee in an amount reasonably necessary to reimburse the county for those costs may be collected (Rev. & Tax. Code §4112(2)(b)).

Government Code section 54985 permits a county board of supervisors to either increase or decrease the amount of fees and charges imposed by law for providing any product or service or in enforcing a regulation for which a fee or charge is levied. This fee is to cover the actual cost of searching for parties of interest as required by Revenue and Taxation Code section 3701.

CAUTION: When payment is in the form of negotiable paper, the tax collector should allow sufficient time for it to be processed by the bank before executing and recording a rescission (Rev. & Tax. Code §2509).

5401. COPIES TO THE CONTROLLER
This section was deleted on January 1, 1999.