Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Property Tax Annotations

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C

220.0000 CHANGE IN OWNERSHIP

Annotation 220.0243

220.0243 Foreclosure. Due to default by the property owner on a loan secured by deed of trust against the property, a non-judicial foreclosure proceeding took place on November 2, 2012, at which the existing owner was the successful bidder and paid $650,000 to the trustee on the deed of trust.

Pursuant to Revenue and Taxation Code section 62 and Rule 462.240, deeds of trust do not themselves transfer title to property, but upon default, authorize the holder of the trust deed to convey title to the property. Therefore, trustee on deed of trust was never the owner of the property for property tax purposes. In a typical foreclosure sale, the conveyance of title to a third-party purchaser would constitute a change in ownership as defined in section 60, as it would transfer the interest in real property, including the beneficial use thereof, to the third party. In this case, however, the buyer was both the existing holder and the purchaser of the interest and beneficial use of the property. Since there was never a transfer of the right to occupy or receive income from the property, no beneficial use was transferred. As such, the transaction on November 2, 2012 did not constitute a change in ownership. C 8/19/2013.