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7000 General Overview: Provisions and Requirements

7000. OPERATION OF LAW
On July 1, when five or more years have elapsed since a property became tax-defaulted, the tax collector is empowered to sell all or any portion of the tax-defaulted property that has not been redeemed (Rev. & Tax. Code §3691). By operation of law, the property becomes subject to the tax collector's power to sell if the property remains tax-defaulted at 12:01 a.m. on July 1 (Rev. & Tax. Code §§3361 and 3362(d)). See M-9400 et seq. for a discussion of publication of the Notice of Impending Power to Sell Tax-Defaulted Property.

In the case of nonresidential commercial property, on July 1, when three or more years have elapsed since a property became tax-defaulted, the tax collector is empowered to sell all or any portion of the property that has not been redeemed. The county board of supervisors may pass a resolution or ordinance to have the five-year time period apply to tax-defaulted nonresidential commercial property.

Real property must be included in the next scheduled tax sale if it can provide housing or services directly related to low-income persons when three or more years have elapsed, and a request has been made by a city, county, city and county, or nonprofit organization (Rev. & Tax. Code §3362).

Tax-defaulted vacant residential developed property subject to a nuisance abatement lien is also subject to the tax collector’s power to sell (Rev. & Tax. Code §3691(b)(1)(A)).

NOTE: If the notice required by Revenue and Taxation Code section 3361 is not published, or if the first publication is not published by the statutory deadline of June 8, then all of the property that would have become tax-defaulted with the power to sell by operation of law will not attain the power to sell status, and the assessee will retain the right to initiate an installment plan of redemption until the next July 1 at 12:01 a.m.