Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Government Code Provisions

Provisions Relating to Property Tax Relief

DIVISION 4. FISCAL AFFAIRS

PART 1. FUNDS FOR SUBVENTIONS

Chapter 5. Payment of Postponed Property Taxes*

Article 4. Impound Accounts

Section 16211.5

16211.5. Rights of claimant to purchase new dwelling. (a) In the event that the real property securing the state's lien provided for in Article 1 (commencing with Section 16180) is the residential dwelling of a claimant under Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code and is voluntarily sold, the funds derived from the voluntary sale of the residential dwelling shall be placed in an impound account for a period of six months. In connection with the establishment of such account, the Controller shall release the state's lien in the manner prescribed by Section 16186.

(b) The claimant under Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code whose residential dwelling was voluntarily sold may draw upon the amount in the account to purchase a new residential dwelling, and the amount so drawn shall be secured by a new lien against the new residential dwelling from the time the Controller records the new lien against the new residential dwelling as provided for under Section 16182.

The Controller shall subordinate such new lien to the note and deed of trust of the purchase money obligations used in the acquisition of the new residential dwelling, provided the claimant has an equity of at least 20 percent of the full value of the property, as required by paragraph (1) of subdivision (b) of Section 20583 of the Revenue and Taxation Code, prior to recordation of such subordination. Such lien shall have priority over all subsequent liens, except as provided in Section 2192.1 of the Revenue and Taxation Code.

History.—Added by Stats. 1978, Ch. 43, in effect March 16, 1978. Stats. 1982, Ch. 497, in effect January 1, 1983, operative July 1, 1983, substituted "is the residential dwelling . . . is voluntarily sold" for "of this chapter is subject to a prior recorded homestead pursuant to Title 5 of Part 4 of Division 2 of the Civil Code" before "the funds", substituted "the residential dwelling" for "such homesteaded real property" before "shall", and substituted "six months" for "6 months notwithstanding Section 1265a of the Civil Code" in the first sentence of subdivision (a), and deleted "homesteaded" after "whose" in the first sentence of subdivision (b).

* Chapter 6 was enacted by Stats. 1977, Ch. 1242, in effect October 1, 1977, and was renumbered as Chapter 5 by Stats. 1982, Ch. 454, in effect January 1, 1983.