Can anyone confirm when the delinquent property taxes have to be paid? I am assuming if I buy a home at trustee sale, within a few weeks I will get the notice from the county to pay the property taxes that are delinquent correct? Or are they collected at the time of sale?
Please advise
Property taxes are “super senior” which means they run with the property and must be paid even if you buy the property at trustee sale. Before purchasing at trustee sale you always want to check for delinquent property taxes because you will be required to pay them.
Property taxes are not collected at the sale, and you can pay them whenever… taxes have to be five years past due in CA before the county can file a lien and sell the property at a tax sale auction. That said, you may want to pay them faster as there is a 10% late fee, and if they remain unpaid interest accrues at 18%.
If I buy a house in tax deed sale, does this mean the owner haven’t paid property tax for 5 years? Do I still need to pay all previous unpaid property tax and interest?
From what I’ve seen, they don’t always collect it at the auction, so yeah, expect a notice later; I’d keep some cash ready just in case it comes quicker than you think.
Hi Cluo, if it is a property tax auction, the auction itself will pay off the past due taxes and you should receive the property free and clear - with just a few exceptions. Examples would include the 120 right of redemption the IRS has on IRS liens, special assessments or taxes, like mello roos that are not yet due, etc. And as always laws vary by state. You can always check with the county tax assessor/collector that is managing the sale.
I’d be careful assuming the taxes get sorted after the sale. In a lot of cases, knowing exactly what liens or taxes survive the auction can save you a pretty expensive headache later.
I’d want that confirmed before bidding, honestly. Unexpected tax bills can turn what looked like a bargain into a pretty expensive mistake.