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8370-8373 Sale by Agreement: Consummation Provisions and Requirements

8370. EFFECTIVE DATE
The agreement does not become effective until 21 days after the first publication (Rev. & Tax. Code §3802). The right to redeem property sold pursuant to Chapter 8 terminates when the agreement becomes effective. The agreement is null as to property redeemed (Rev. & Tax. Code §3803). See M-9715 for setting the date of publication in conjunction with the effective date of the agreement.

8371. DEED TO PURCHASER
After the agreement is effective, the tax collector shall, without charge, deed the eligible property to the purchasing agency if (1) the agreement provides that no payment is to be made by the purchaser or (2) the agreed price has been paid (Rev. & Tax. Code §3804(a)). The tax collector shall promptly deliver the deed to the county recorder for recordation. The recorder shall record the deed and prepare necessary conformed copies without charge (Rev. & Tax. Code §3804(b)). (See M-8400 for a discussion of how to prepare the deed to the purchaser.) When the deed is recorded, a duplicate copy or conformed copy must be sent to the State Controller (M-8380).

NOTE: Item (1) refers only to Chapter 8 pro rata agreements where the acquiring agency pays no money to the county at the time of acquisition. The proceeds of the sale are not prorated among all agencies, including the county, until after the acquiring agency has resold the property.

8372. SPECIAL DEED PROVISIONS
The deed must specify "any condition deemed necessary to effect compliance with the agreement, including but not limited to, a condition that the real property be used by the taxing agency or non-profit organization for the public use specified in the agreement" (Rev. & Tax. Code §3805(c)).

No special conditions may be imposed in the deed unless they are also contained in the agreement with the purchasing agency. In the case of a Chapter 8 purchase by a non-profit organization, the special conditions shown as paragraphs (2) and (3) in agreement form SCO 8-15 must be included in the agreement and carried into the deed following the legal description of the property.

8373. EFFECT OF DEED
The deed conveys the same title to the acquiring agency as does a deed to a private purchaser obtaining property at a public auction (Rev. & Tax. Code §3806).

A deed issued upon resale under the provisions of a Chapter 8 pro rata agreement conveys a like title to a private purchaser (Rev. & Tax. Code §3806).

NOTE: The pro rata agreement conveys no title to the acquiring agency, except for the purpose of resale. However, property in the agency's possession would be held by it in a proprietary capacity subject to administration by the agency during such ownership.