Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Other Code Provisions

Streets and Highways Code

DIVISION 7. IMPROVEMENT ACT OF 1911

PART 5. IMPROVEMENT BONDS

CHAPTER 6. Default and Sale for Delinquency

Section 6509

6509. Conduct of sale; fair market value to be determined by assessor. (a) If such payment is not made, the sale shall be made as advertised, and the lot or parcel described in the bond shall be sold to the purchaser who will pay the highest price for the entire lot or parcel of land to be sold, but not less than the higher of (1) the amount due on the bond, together with accrued interest, penalties, and all of the sums specified in the notice of sale that are due in the event of sale, or (2) an amount equal to not less than 50 percent of the fair market value of the property.

(b) In the event there are no bidders, the bondholder shall be liable for the minimum sales price. Payment to the treasurer at the time of sale need not exceed the amount specified in paragraph (1) of subdivision (a), and the balance, if any, shall be payable at the time the deed is issued.

(c) In the event there are no bidders, a certificate of sale for the entire lot or parcel of land described in the bond shall be issued to the bondholder after surrender of the bond, including all unpaid principal and interest coupons, to the treasurer and after payment to the treasurer of the fee of the recorder for recording such certificate, and, if incurred, and if no deposit was made pursuant to Section 6500, the cost of an abstract of title or title search of the real property sold under foreclosure; and also at that time the costs of the sale and other fees previously paid to the treasurer pursuant to Section 6505.1.

(d) For the purpose of this section, "fair market value" means the amount, as defined in Section 110 of the Revenue and Taxation Code, as determined pursuant to an appraisal of such property by the county assessor within one year immediately preceding the date of the sale, inclusive of the cost of appraisal, notice, recording, and the cost of an abstract of title or title search of such real property, if any. The fair market value as determined by the assessor pursuant to appraisal shall be conclusively presumed in favor of any purchaser or encumbrancer for value of such property.

History.—Added by Stats. 1941, Ch. 79, in effect September 13, 1941. Stats. 1963, Ch. 652, in effect September 20, 1963, added the second sentence. Stats. 1967, Ch. 790, in effect November 8, 1967, substituted "surrender of the bond, including all unpaid principal and interest coupons, to the treasurer and payment to the treasurer of any expenses of publication paid or incurred by the treasurer, the fee required by Section 6507 for the issuance of a certificate of sale and the fee and the recorder for recording such certificate" for "payment to the treasurer of the amount specified in the notice of sale" after "upon" in the second sentence. Stats. 1974, Ch. 427, in effect January 1, 1975, substituted a comma for "and" after "issuance of a certificate of sale", and added ", and, if incurred, and if no deposit was made pursuant to Section 6500, the cost of an abstract of title or title search of the real property sold under foreclosure" after "certificate" in the second sentence. Stats. 1975, Ch. 1046, in effect January 1, 1976, substituted "will pay the highest price for the entire lot or parcel of land to be sold, but not less than the amount due on the bond, together with accrued interest, penalties, and costs of sale, as specified in Sections 6504 and 6505.1" for "shall take the least amount of the lot or parcel and pay all of the sums specified in the notice of sale" after "who" in the first sentence; substituted "for the entire lot or parcel of land described in the bond shall be issued to the bondholder after" for "shall be issued to the bond owner upon" before "surrender of the", and substituted "; and the costs of the sale, previously paid to the treasurer pursuant to Section 6505.1 shall become forfeited" for "and payment to the treasurer of any expenses of publication paid or incurred by the treasurer, the fee required by Section 6507 for the issuance of a certificate of sale, the fee of the recorder for recording such certificate, and if incurred, and if no deposit was made pursuant to Section 6500, the cost of an abstract of title or title search of the real property sold under foreclosure" after "treasurer" in the second sentence; and added the third sentence. Stats. 1976, Ch. 17, in effect January 1, 1977, substituted "all of the sums specified in the notice of sale that are due in the event of sale" for "costs of sale, as specified in Sections 6504 and 6505.1" after "penalties, and" in the first sentence, and substituted "and after payment to the treasurer of the fee of the recorder for recording such certificate, and, if incurred, and if no deposit was made pursuant to Section 6500, the cost of an abstract of title or title search of the real property sold under foreclosure; and also at that time the costs of the sale and other fees" for "; and the costs of the sale," after "treasurer" in the second sentence. Stats. 1979, Ch. 615, in effect January 1, 1980, added the subdivision letters; designated the former first and second sentences as subdivisions (a) and (c), respectively; added "higher of (1) the" after "but not less than the", and added ", or (2) an amount equal to not less than 50 percent of the fair market value of the property" after "event of sale" in subdivision (a); added subdivision (b); deleted "shall become forfeited" after "Section 6505.1" in subdivision (c): deleted the former third sentence; and added subdivision (d).