Tax-Defaulted Property Auction, November 2023

Auction Start: November 10, 2023, 8:00 a.m. PDT

Auction End: November 13, 2023, closing time varies by parcel

Auction Place: Online at www.bid4assets.com/Sonoma

• General Terms & Conditions
• Payment
• Tax Deed to Purchaser
• Terms of Sale
• Minimum Bids
• Rights of Parties of Interest
• Questions and Answers
• List of Properties to be Auctioned

 
Properties in Sonoma County that are subject to sale at public auction for non-payment of property taxes must be offered for sale within four years of the time the property becomes subject to the Auditor-Controller Treasurer-Tax Collector’s (ACTTC) power to sell (Revenue and Taxation Code Section 3692(a)). The ACTTC is responsible for the administration of these sales pursuant to the Revenue and Taxation Code and the written approval of the Sonoma County Board of Supervisors. Licensed salesmen, brokers or realtors, should not in any way equate the sale of this property to real estate sales.

The right of redemption on a parcel ceases at 5:00 p.m. on the last business day prior to the sale.

The ACTTC does not provide the purchaser with a title insurance policy. Many title companies may not issue their policy of title insurance on a Tax Deed to Purchaser of Tax Defaulted Property for one year, unless a quiet title action has been successfully pursued in the courts, or quit claim deeds are acquired from the former owner and all lien holders. You are encouraged to consult with the title company of your selection.

If property you have purchased is encumbered with foreclosed or unforeclosed street bonds, irrigation assessments, income tax liens, etc., a Tax Deed to Purchaser of Tax Defaulted Property may or may not discharge these obligations. A Tax Deed to Purchaser of Tax Defaulted Property will not abolish easements constituting servitudes upon, or burdens to, the property. A complete investigation of all these encumbrances, and/or all liens should be made before attending the tax sale.

The Internal Revenue Service (IRS) has the option of redeeming after sale, up until 120 days, any property on which there is an IRS lien recorded. The IRS must pay the actual amount paid for the property by the purchaser plus a specified rate of interest from the date of the sale.

Physical inspection of the property is recommended by the ACTTC office prior to your purchase. The County of Sonoma makes no guarantee, expressed or implied, relative to the title, location, or condition of the properties for sale, nor do we make any assurances that the improvements, which may be shown on the tax assessment roll, exist at the time of your purchase. The ACTTC office has disclosed all information of record regarding contaminated or possible contaminations of the property. The ACTTC office makes no inspection or warranty regarding possible contamination. Any personal property, such as mobile homes or equipment on the property, is not part of the sale. All parcels will be sold “As Is”. This is a “Buyer Beware” situation and all sales are final.

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Successful bidders must pay by cashier's check, wire transfer or electronic funds transfer, and payment must be received by November 16, 2023, at 4:00 p.m. EDT (1:00 p.m. PDT), three (3) business days after a subsequent sale closes. In addition to the purchase price, the documentary transfer tax ($0.55 per $500 of the purchase price) is required. Additionally, two Sonoma County cities have enacted Property Transfer Tax Ordinances and charge an additional tax. These include:

• City of Santa Rosa at $2.00 per $1,000 of consideration or portion thereof.
• City of Petaluma at $2.00 per $1,000 of consideration or portion thereof.

Only a successful bidder has the opportunity to purchase County assets. If the successful bidder defaults, under California State Law, the County cannot resort to the second highest bidder, and will be required to take appropriate legal action against the bidder who defaults.

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The successful bidder may take possession of a property after the Tax Deed to Purchaser has been recorded. However, most title companies will not insure the title until one year after the tax sale deed is recorded. Quiet title action may be needed. Legal action to challenge a tax sale must be brought within one year of the recording of the tax deed.

The deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except:

• Any lien for installments of taxes and special assessments, which installments will become payable upon the secured roll after the time of the sale.
• The lien for taxes or assessments or other rights of any taxing agency, which does not consent, to the sale under this chapter.
• Liens for special assessments levied upon the property conveyed which were, at the time of the sale under this chapter, not included in the amount necessary to redeem the tax-defaulted property, and where a taxing agency which collects its own taxes has consented to the sale under this chapter, not included in the amount required to redeem from sale to the taxing agency.
• Easements constituting servitude upon or burdens to the property; water rights, the record title to which is held separately from the title to the property; and restrictions of record.
• Unaccepted, recorded, irrevocable offers of dedication of the property to the public or a public entity for a public purpose, and recorded options of any taxing agency to purchase the property or any interest therein for a public purpose.
• Unpaid assessments under the Improvement Bond Act of 1915 (Division 10, commencing with Section 8500 of the Streets and Highways code) which are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of part 8.
• Any federal Internal Revenue Service liens* which, pursuant to provision of federal law, are not discharged by the sale, even though the Tax Collector has provided proper notice to the Internal Revenue Service before that date.
• Unpaid special taxes under Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, or Part 1 of Division 2 of Title 5 of the Government Code) that are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of Part 8.

The County Recorder will mail the original deed to the purchaser after recording, usually within four to six weeks.

Note: The County assumes no liability for any other possible liens, encumbrances or easements, recorded or not recorded. When property is sold at Public Auction on which the IRS holds a tax lien, the United States has the right of redemption for 120 days from the date of such sale (26 USC §§ 3712(g) and 7425(d)). The IRS will pay the actual amount paid for the property by the bidder, plus a specified rate of interest from the date of the sale, plus the expense of sale that exceed any income received from the property.

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All potential bidders are required to read and understand the following terms:

1. The auction will begin at 8:00 a.m. PDT (11:00 a.m. EDT) on November 10, 2023, and the auction will close at the time shown on each auction item on November 13, 2023.
2. The asset information is being updated daily and will not be finalized until the day of the sale. Please read all due diligence materials and check the spreadsheets for updates.
3. The descriptions provided are based on the Official Records of the County Recorder's Office and are presumed to be correct. The property to be sold may be approximately located from maps provided in the Due Diligence information on each auction item on bid4assets.com/sonoma.
4. The right to redeem any parcel terminates as of 5:00 p.m. PDT on November 9, 2023. Properties removed from the sale will be so indicated on the Asset Page listing for a specific property.
5. Prospective purchasers are urged to examine the title, location and desirability of the properties available to their own satisfaction prior to the sale. All properties are sold as-is.The County makes no guarantee, expressed or implied, relative to the title, location or condition of the properties for sale. The County assumes no liability for any other possible liens, encumbrances or easements, recorded or not recorded.
6. Prospective purchasers are advised that some bonds or other assessments which are levied by agencies or offices other than the ACTTC may still be outstanding after the tax sale.
7. Some properties in some counties may have 1911, 1913 and/or 1915 Improvement Act Bonds, or Mello Roos bonds, which are noted on the Asset Page listing of the property.
8. When property is sold at public auction on which the IRS holds a tax lien, the United States has the right of redemption for 120 days from the date of such sale (26 USC Sec. 3712(g) and 7425(d)). The IRS will pay the actual amount paid for the property by the bidder, plus a specified rate of interest, plus the expenses of sale that exceed any income received from the property.
9. The County makes no warranty, either expressed or implied, relative to the usability, the ground location, or property lines of the properties. The prospective purchaser must determine the exact location, desirability, and usefulness of the properties.
10. The sale of these properties should not, in any way, be equated to real estate sales by licensed salesmen, brokers and realtors. The County does not guarantee the condition of the property nor assume any responsibility for conformance to codes, permits or zoning ordinances. You should inspect the property before investing. The burden is on the purchaser to thoroughly research, before the sale, any matters relevant to his or her decision to purchase, rather than on the county, whose sole interest is the recovery of back taxes.
11. Your bid is an irrevocable offer to purchase the asset.
12. Successful bidders will be asked to complete a deed information form showing how they want the title to the property to be held (vesting). The Deed Information form will be provided to the winning bidder and must be completed within 48 hours following the close of the auction.The County Recorder will mail the original deed to the purchaser after recording, usually within four to six weeks. This deed conveys all right, title, and interest to the property in accordance with the provisions of Revenue and Taxation Code section 3712.
13. A California documentary transfer tax will be added to, and collected with, the full purchase price. This tax is calculated at the rate of $.55 for each $500.00 or fractional part thereof. Additionally, two Sonoma County cities have enacted Property Transfer Tax Ordinances and charge an additional tax as follows:
    • City of Santa Rosa at $2.00 per $1,000 of consideration or portion thereof.
    • City of Petaluma at $2.00 per $1,000 of consideration or portion thereof.
14. The notification of winning bid will include the total purchase price, including documentary transfer tax, with instructions concerning the various payment methods.
15. Unless otherwise noted, payment in full by wire transfer, electronic funds transfer or cashier's check will be required by 4:00 p.m. EDT, November 16, 2023, (1:00 p.m. PDT), three (3) business days after a subsequent sale closes. No personal checks or credit card payments will be accepted.Payments in excess of the total purchase price will be refunded by mail within 30 days. To ensure that a cashier's check payment is received timely, Express Mail, UPS and Federal Express are suggested as reliable delivery services. If payment policy is not adhered to, the successful bidder may be banned from future sales.
16. A single bid deposit (plus a $35 processing fee) will be required to bid on any and all properties offered for sale by the county. Bid Deposits must be in the form of a wire transfer or certified check and must be in the custody of Bid4Assets no later than November 7, 2023, at 4:00 p.m. EDT (1:00 p.m. PDT).Please contact Bid4Assets directly for instructions and questions pertaining to Bid Deposits.
17. Only a successful bidder has the opportunity to purchase County assets. If the successful bidder defaults, under California State Law, the County cannot resort to the second highest bidder, and will be required to take appropriate legal action against the bidder who defaults. Failure on the part of the successful bidder to consummate the sale within the specified time shall result in the forfeiture of the deposit made and all rights that the purchaser may have had with respect to the property.
18. The successful bidder may generally take possession of the property after the tax deed to purchase has been recorded. Successful purchasers should contact their attorney for information regarding possession. Most title companies will not insure title on properties sold at public auction for at least one (1) year after the tax deed has been recorded. Legal action to challenge a tax sale must be commenced within one (1) year of the tax deed recording date.
19. All sales are final. There are absolutely no refunds.

Rules are subject to modification between now and the commencement of sale.

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The following are guidelines used in determining the minimum bid for the properties offered for sale:

The minimum price at which property may be offered for sale pursuant to Section 3698.5 of the California Revenue and Taxation Code shall be an amount not less than the total amount necessary to redeem, plus costs.

The “total amount necessary to redeem” is the sum of the following:

• All unpaid defaulted taxes
• Delinquent penalties
• Redemption penalties
• A redemption fee of $15.00
• Additional Costs as described in the following Revenue and Taxation Codes:
  • Section 4112(a)(b)
    A fee in an amount reasonably necessary to reimburse the tax collector shall be distributed to the general fund to reimburse the county for its costs of obtaining names and last known mailing addresses of and for mailing notices required by Section 3701, to parties of interest.
  • Section 4672
    There shall be distributed to the State of California $1.50 for any portion of each separately valued parcel of real property.
  • Section 4672.1
    There shall be distributed to the county general fund to reimburse the county for the cost of conducting the sale $150.
  • Section 4672.2
    There shall be distributed to the county general fund to reimburse the county for the cost of giving notice $35.
  • Section 4673
    Amounts to reimburse the county for the cost of advertising sales of tax-defaulted property shall be distributed to the county general fund.
  • Section 3704.7(c)
    Up to $100 for each parcel that is a primary residence for the last known assessee. Indicators of this condition include a valid homeowner’s exemption or evidence showing that the mailing address on the tax bill is the same as the situs.

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To claim the excess proceeds from the sale of tax defaulted property you must be a “party of interest” as defined by Section 4675 of the Revenue and Taxation Code.

Your claim for excess proceeds must be filed within one year after the tax collector’s deed to purchaser is recorded. By law, claims filed after the one-year period cannot be accepted.

The law protects parties of interest by requiring assignments to another person of the right to claim excess proceeds can be made only by means of a dated, written document. The document must specifically state that the right to claim excess proceeds is being assigned and that each party to the transaction has informed the other of the value of the right being assigned.

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The following are typical questions and answers and may assist you in understanding auction and bidding procedures. If you have additional questions, please contact the tax collector’s office at taxcollector@sonoma-county.org.

How can I register as a bidder?

Bid4Assets is handling the bidder registration process for this sale and complete instructions are available at bid4assets.com/sonoma. Sonoma County requires each bidder to submit, to Bid4Assets, a deposit of $5,000, plus a $35 processing fee, to register for the sale. Bidders are advised to arrange for their deposits early to make sure they are eligible to bid. The Tax Collector's Office will not be registering bidders nor accepting bids. All questions will be directed to Bid4Assets.

How does the bidding process work?

All parcels are assigned an Auction ID number. Bidding starts at the minimum bid amount (the amount required to pay off the defaulted taxes and costs) and will increase in increments of at least $100 until the close of the auction. The auction begins at 8:00 a.m. (PDT) on November 10, 2023 and closes at the stated time for each parcel on November 13, 2023. For a more detailed explanation of the bidding process, log on to bid4assets.com/sonoma, click on "For Buyers" at the top of the home page, then click on "How to Bid." You may also bid by fax if you do not have access to the internet. More information and instructions are available by calling Bid4assets customer service at 1-877-427-7387.

How can a successful bidder pay for a property at the tax sale?

Successful bidders must pay by cashier's check, wire transfer or electronic funds transfer, and payment must be received by November 16, 2023 at 4:00 p.m. EDT (1:00 p.m. PDT), three (3) business days after a subsequent sale closes. In addition to the purchase price, the documentary transfer tax ($0.55 per $500 of the purchase price) is required. Additionally, two Sonoma County cities have enacted Property Transfer Tax Ordinances and charge an additional tax. These include:

City of Santa Rosa at $2.00 per $1,000 of consideration or portion thereof.

City of Petaluma at $2.00 per $1,000 of consideration or portion thereof.

Only a successful bidder has the opportunity to purchase County assets. If the successful bidder defaults, under California State Law, the County cannot resort to the second highest bidder, and will be required to take appropriate legal action against the bidder who defaults.

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?

No. Legal title to a tax-defaulted property subject to the Tax Collector's power to sell can be obtained only by becoming the successful bidder at the tax auction. Sonoma County does not sell tax lien certificates at this time.

How do I find a property I'd like to bid on at the tax sale?

While we try to give all possible assistance in helping prospective purchasers to pinpoint a property location, vacant land usually has no street (situs) address. Its approximate geographic location can be determined through the use of county Assessor plat maps and perhaps, a map book. Exact boundary lines of a property can be determined only by a survey of the property initiated at the purchaser's expense. Improved properties frequently (but not always) will bear a situs (street) address. The Assessor's plat maps may be downloaded from the bid4assets.com/sonoma website.

When does the right to redeem (pay the taxes) a tax-defaulted property subject to the power to sell cease?

The right to pay the taxes in full to avoid the sale of the property ceases at the close of business, 5:00 p.m., on the last business day prior to the sale.

How can I determine what use I can make of a tax sale property before I purchase it?

No expressed or implied warranty is given with respect to the parcels, and they are sold on an as-is basis. Bidders are responsible for knowing what they are purchasing. Consult the zoning department of any city within which a property lies or the zoning section of the county Permit and Resource Management Department for parcels located in the unincorporated areas (i.e. not lying within a city boundary) regarding use of the parcel. Examine the county records for any recorded easements on a property. You can also order a title search report from a local title insurance company.

How soon can I take possession of a property after purchase at the tax sale?

The successful bidder may generally take possession after making payment in full, complying with any conditions set forth between the tax collector and the successful bidder, and after the tax deed to purchase the property has been recorded. Successful purchasers should contact their attorney for information regarding possession. Most title companies will not insure title on properties sold at public auction for at least one (1) year after the tax deed has been recorded. Legal action to challenge a tax sale must be commenced within one (1) year of the tax recording date.

Do liens or encumbrances on a tax-defaulted property transfer to the new owner after purchase of the property at a tax sale?

Chapter 7, Section 3712 of the California Revenue and Taxation Code States: The deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except:

Any lien for installments of taxes and special assessments which installments will become payable upon the secured roll after the time of the sale.

The lien for taxes or assessments or other rights of any taxing agency which does not consent to the sale under this chapter.

Liens for special assessments levied upon the property conveyed which were, at the time of the sale under this chapter, not included in the amount necessary to redeem the tax-defaulted property, and, where a taxing agency which collects its own taxes has consented to the sale under this chapter, not included in the amount required to redeem from sale to the taxing agency.

Easements constituting servitude upon or burdens to the property; water rights, the record title to which is held separately from the title to the property; and restrictions of record.

Unaccepted, recorded, irrevocable offers of dedication of the property to the public or a public entity for a public purpose, and recorded options of any taxing agency to purchase the property or any interest therein for a public purpose.

Unpaid assessments under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) which are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of Part 8.

Any federal Internal Revenue Service liens which, pursuant to provisions of federal law, are not discharged by the sale, even though the tax collector has provided proper notice to the Internal Revenue Service before that date.

Unpaid special taxes under Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, or Part 1 of Division 2 of Title 5 of the Government Code) that are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of Part 8.

A title search initiated at the prospective purchaser’s expense should reveal any liens or encumbrances on a property in the tax sale.

How is the minimum price on a property offered at a tax sale determined?

State law dictates that the minimum price for a tax-defaulted parcel offered at a public auction for the first time shall be no less than the total amount necessary to redeem plus costs. The minimum bid on a parcel may be set at a greater amount at the Tax Collector's discretion.

Is a tax sale publicly advertised?

Yes. State law dictates that notice of a tax sale must be published once a week for three successive weeks in a newspaper of general circulation. A list of available properties will be published in the local Press Democrat three times, once weekly, one month prior to the auction.

What are the foreclosure and eviction processes and will the county handle these processes for a fee?

No, the county does not handle the foreclosure or the eviction process. The property is sold "as is" and buyers assume all ownership responsibilities.

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

Most title companies will not insure title for one year after the recording of the tax deed. Quiet Title action may be needed.

Under what circumstances can the former owner challenge the validity of the auction?

Generally, Sections 177 and 3725 et. seq. of the Revenue & Taxation Code limit the time to commence an action to one year from the recording of the tax deed.

What happens if I am the successful bidder but decide that I don't want the property after all?

Be sure you want the property before you bid. ALL SALES ARE FINAL AND THERE ARE ABSOLUTELY NO REFUNDS.If you default, under California State Law, the county cannot resort to the second highest bidder and will be required to take legal action against you. Failure to consummate the sale within the specified time shall result in the forfeiture of any deposit made and all rights that the purchaser may have had with respect to the property. Failure to consummate the sale will also bar the bidder from participating in future tax sales in Sonoma County.

PARCELS ARE SOLD ON AN AS-IS BASIS AND SONOMA COUNTY ASSUMES NO RESPONSIBILITY, IMPLIED OR OTHERWISE, THAT THE PROPERTIES ARE IN COMPLIANCE WITH ZONING ORDINANCES, CONFORM TO BUILDING CODES AND PERMITS OR THE SITUS ADDRESS. NO GOVERNMENT ENTITY IS LIABLE FOR DAMAGES SUSTAINED TO PROPERTY PURCHASED AT PUBLIC AUCTION, INCLUDING FROM THE TIME OF THE SALE UNTIL THE RECORDATION OF THE TAX DEED TO THE PURCHASER

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