California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

When a property is sold and not redeemed within 5 years after a "book sale" to the state, the outcome is that the property is deeded to the state. This procedure follows the principles set forth in tax lien law where, after a specific redemption period, ownership is transferred to the state if the former owner does not reclaim their property. The significance of this is that the state has the authority to eventually dispose of the property, typically through auctions or other means, but the immediate effect is the transition of ownership.

Understanding the context helps clarify this process, as "book sale" refers to a sale of property due to unpaid taxes, and the 5-year period provides the owner an opportunity to redeem the property. After this grace period lapses without any action taken from the property owner, the state acquires the title to the property. This action does not require an auction to take place right away; instead, the state holds the deed and may later determine the best method for selling or managing the property.