Selling a Home with Delinquent Property Taxes in Los Angeles County
Delinquent property taxes in Los Angeles County accrue penalties and interest over time and must be paid before clear title can be transferred to a buyer. In most cases, the delinquent taxes can be paid from the sale proceeds at closing — as long as the equity is sufficient.
Pay Delinquent Taxes at Closing
Use the sale proceeds to pay off the delinquent property taxes at closing.
Understanding Tax Default and the Five-Year Rule
Understand the timeline for property tax default in California and the risk of losing the property.
Delinquent Property Taxes and Home Sales in Los Angeles County
Property taxes in Los Angeles County are due in two installments — the first installment is due November 1 and becomes delinquent after December 10, and the second installment is due February 1 and becomes delinquent after April 10. Unpaid property taxes accrue a 10% penalty on the delinquent amount, plus additional penalties and costs if the taxes remain unpaid.
If property taxes remain unpaid for five years, the Los Angeles County Tax Collector can initiate the tax default process — which can ultimately result in the property being sold at a tax sale to satisfy the delinquent taxes. Homeowners who are behind on property taxes should act before the five-year threshold to protect their equity.
Our team coordinates with the title company to identify all delinquent property taxes and develop a strategy for resolving them before the closing date.
Direct Answer: Delinquent property taxes in Los Angeles County must be paid before clear title can be transferred to a buyer. In most cases, the taxes can be paid from the sale proceeds at closing. If taxes are unpaid for five years, the county can initiate the tax default process. Our team coordinates with the title company to ensure all delinquent taxes are resolved before closing.
Paying Delinquent Los Angeles County Property Taxes at Closing
When a Los Angeles County property has sufficient equity to cover the delinquent property taxes, the mortgage balance, and the costs of the sale, the taxes can be paid from the sale proceeds at closing. The title company identifies all delinquent property taxes during the title search and coordinates the payoff as part of the closing process.
The seller should obtain a current tax statement from the Los Angeles County Treasurer and Tax Collector before closing to confirm the exact amount required — including the delinquent taxes, penalties, and interest. Our team coordinates with the title company to ensure all delinquent taxes are resolved before the closing date.
Los Angeles County Property Tax Default — Understanding the Five-Year Rule
In California, if property taxes remain unpaid for five years, the property becomes tax-defaulted and the Los Angeles County Tax Collector can initiate the process to sell the property at a tax sale to satisfy the delinquent taxes. The five-year period begins on July 1 of the year the taxes first became delinquent.
Homeowners who are approaching the five-year threshold should act immediately — either by paying the delinquent taxes, entering into a payment plan with the Tax Collector, or selling the property before the tax default process is initiated. The equity in the property is at risk if the tax default process proceeds to a tax sale. Our team can move quickly to list and sell the property before the tax default timeline becomes critical.
Frequently Asked Questions
How do delinquent property taxes affect the sale of my LA County home?
Delinquent Property Taxes and Los Angeles County Home Sale — delinquent property taxes must be paid before clear title can be transferred to the buyer. The title company identifies all delinquent taxes during the title search and requires that they be paid as a condition of issuing title insurance. If the equity is sufficient, the taxes can be paid from the sale proceeds at closing. The delinquent amount includes the original taxes plus penalties and interest.
What happens if I don't pay my LA County property taxes for five years?
Unpaid Los Angeles County Property Taxes for Five Years result in the property becoming tax-defaulted. The Los Angeles County Tax Collector can then initiate the process to sell the property at a tax sale to satisfy the delinquent taxes. Homeowners who are approaching the five-year threshold should act immediately to protect their equity — by paying the taxes, entering a payment plan, or selling the property.
Can I set up a payment plan for delinquent property taxes in Los Angeles County?
Payment Plan for Delinquent Los Angeles County Property Taxes is available through the Los Angeles County Treasurer and Tax Collector. The Five-Year Payment Plan allows eligible homeowners to pay delinquent taxes in installments over five years. The homeowner must make a down payment and meet annual payment requirements to remain in the plan. Homeowners who are behind on property taxes should contact the Tax Collector to evaluate the payment plan option.
How much are the penalties for delinquent property taxes in Los Angeles County?
Penalties for Delinquent Los Angeles County Property Taxes include a 10% penalty on the delinquent installment, plus a $10 cost. If the taxes remain unpaid after June 30, an additional 1.5% per month redemption penalty accrues on the total delinquent amount. The penalties and interest can add significantly to the original tax amount over time. Homeowners should obtain a current tax statement to confirm the exact amount owed.
Behind on Property Taxes and Need to Sell Your LA County Home?
Our team coordinates with the title company to identify all delinquent taxes and ensure they are resolved at closing — protecting your equity.
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