California Real Estate Practice Exam

In situations whereby real property taxes are not paid, the Tax Collector will affect a "Sold to the State" on which of the following dates?

1. June 30, five years after the unpaid tax year

2. June 30, the last day of the unpaid tax year

3. July 1, following the unpaid year

4. None of the above

The correct answer is: June 30, five years after the unpaid tax year

The correct answer is that the Tax Collector will declare the property as "Sold to the State" on June 30, five years after the unpaid tax year. This procedure arises from California's tax sale laws, which stipulate that if property taxes are not paid for five consecutive years, the property can be sold to the state. This is a significant timeline, as it provides property owners a substantial period to settle their debts before losing ownership. The timing of June 30 is important as it marks the end of a fiscal year in California. On this date, if taxes remain unpaid for the full five years, the Tax Collector formally takes action to transfer ownership of the property to the state. Understanding this timeline is crucial for both property owners and real estate professionals. In contrast, the other choices do not align with California's tax sale process. June 30 of the last day of the unpaid tax year would imply a much earlier action, which is not accurate since the state allows five years for the resolution of tax debts. Similarly, stating July 1 of the following unpaid year does not satisfy the legal process, as it does not account for the full duration required. Recognizing the correct timing ensures that individuals are well informed about their rights regarding property