CALIFORNIA ASSEMBLY BILL 418
Sale of Tax Defaulted Property
What is Assembly Bill 418? California Assembly Bill AB418 strengthens transparency and fairness in the sale of tax-defaulted properties. Counties must now hold a public hearing before approving a negotiated sale and provide at least 45 days’ notice to the property owner and all interested parties. Notices include property details, proposed sale price, and hearing information. The board can only approve the sale if the price meets or exceeds the property’s estimated auction value or if no excess proceeds would result from a public auction. Buyers must cover all hearing-related costs. Parties have 45 days after the decision to seek judicial review. This law ensures due process, protects property rights, and promotes accountability in tax-defaulted property sales. Key components of California Assembly Bill 418: Sale of Tax-Defaulted Property Public Hearing Required: Counties must hold a hearing before approving a negotiated sale of tax- defaulted property. Advance Notice: At least 45 days’ notice must be sent to the property owner and all interested parties. Notice Details: Includes property description, proposed sale price, and hearing information. Fair Pricing: Sale price must meet or exceed estimated auction value or result in no excess proceeds. Costs Covered by Buyer: All hearing-related expenses are paid by the purchasing entity. Judicial Review: Parties have 45 days after the decision to challenge it in court. Goal: Ensures transparency, protects property rights, and promotes accountability in tax-defaulted property sales. Why it matters Assembly Bill 418 is a positive step toward fairness and transparency in California’s property tax system. Overall, AB418 strengthens trust in local government and creates a more equitable system for handling tax-defaulted property sales.
https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 10 of the 2025 CLTA Summary of Legislation
Find more important Assembly Bill 418 details here: https://legiscan.com/CA/text/AB418/id/3103894
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