Under existing property tax law, if unpaid property taxes are declared delinquent and the taxes remain unpaid, the property is declared tax-defaulted and subject to sale, as provided, if not redeemed by the owner within a certain amount of time. Existing property tax law authorizes any party of interest in property that is sold as a tax-defaulted property to file a claim with the county for the excess proceeds, as described.

Existing law requires a person who acts on behalf of, or in place of, any party of interest with respect to filing a claim for any excess proceeds to submit proof with the claim of certain disclosures, including that the party of interest has been advised of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost.

This bill would delete the above-described requirement and would, instead, authorize any party of interest to enter into an agreement with any person or entity to act on behalf of the party of interest with respect to filing a claim for any excess proceeds. The bill would condition the validity of an agreement entered as described above on certain conditions, including that the agreement clearly advises the party of interest of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost. The bill would limit the provision above to agreements entered into on or after January 1, 2027.