Current property tax law generally authorizes a county tax collector to sell tax-defaulted property after a certain time period (either 3 or 5 years, depending on certain criteria) has elapsed since the property became tax-defaulted. Under current law, when tax-defaulted property is sold, the deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, with specified exceptions including an exception for specified easements. Pursuant to Assembly Bill 261, easements of any kind are included within those specified exceptions to the conveyance of title free of encumbrances.

Current law provides that a proceeding based on alleged invalidity or irregularity of any proceedings instituted in a sale of tax-defaulted property can only be commenced within a specified period. This legislation provides that such a proceeding can only be commenced by recorded interest holders and their successors in interest in the real property, as specified.

Enacted September 2011. Link to bill: