Manhattan Beach Municipal Code Ch. 8.16 Sale of Delinquent Tax Property

Whenever the City becomes the owner of any property sold for taxes, or for delinquent installments of assessment liens, or by purchase thereof in lieu of foreclosure of delinquent installments of assessment liens, or by any other method, and the deed to the City has been recorded in the office of the County Recorder, the Council may sell the property, or any part thereof, at public or private sale in the manner set forth in this chapter.

(§ 1, Ord. 496)

A. Notice. In the event of public sale, notice of such sale must be given by first publishing a notice once a week for three (3) consecutive weeks in the official newspaper of the City. The notice shall state specifically the place, day and hour of the sale, and shall contain a description of the property to be sold, a statement of the price below which the property will not be sold, and that the same may be verified upon application to the City Clerk. It shall be the duty of the City Clerk to mail, within two (2) days after the publication of such notice of sale, a copy of the notice, postage prepaid, to the party to whom the land was last assessed next before the sale at his last known post office address; provided, however, that the failure of the City Clerk to give such notice by mailing, or of the person addressed to receive the same, shall not make either void or voidable a sale made pursuant to this section.

B. Sale. At the time set for such sale, the City Clerk shall sell the property described in the notice at public auction to the highest bidder for cash in lawful money of the United States.

C. Deed. Within five (5) days after each sale, the City clerk shall report said sale to the Council which shall cause a deed to the purchaser to be executed by the Mayor and City Clerk upon payment of the purchase price.

(§ 2, Ord. 496)

A. Notice. In the event of private sale, notice of such intention to sell must be given by first publishing notice once a week for three (3) consecutive weeks in the official newspaper of the City. Such notice must contain a description of the property intended to be sold and a statement that bids or offers therefor will be received at the office of the City Clerk and that the bids or offers must be in writing and filed in the office of the City Clerk at any time within one year after publication of the notice.

B. Bid opening. The bids shall be opened by the City Clerk publicly in the first open meeting of the Council after they have been filed. At that time, or at any time within twenty (20) days thereafter, the Council may accept the highest and best bid in accordance with the provisions of this chapter or reject all bids.

C. Deed. In the event a bid is accepted, the Council shall cause a deed to the purchaser to be executed by the Mayor and City Clerk upon payment of the purchase price.

D. Contract of sale. In the event a bid accepted is not for cash, the Council shall cause a contract of sale to the purchaser to be executed by the Mayor and City Clerk, with the provision that all deferred payments under said contract must bear interest at the rate of seven (7%) per cent per annum. The contract of sale shall contain, in addition to the usual and customary provisions as set forth in agreements of sale and purchase printed by the recognized title companies doing business in the County, the provision that the condition of title to the real property shall be shown by a policy of title insurance issued by a reputable title company of the County, which shall be furnished at the expense of the vendor with the deed, and shall show title to the real property vested in the vendor as of the date of the agreement of sale and purchase, free of encumbrances except as provided in the agreement of sale and purchase.

E. Title to property. All bids accepted by the Council shall be accepted upon the condition that the City can convey title to the parcel of land free and clear of all encumbrances, and in the event, for any reason, the City cannot convey the parcel of property free and clear of all encumbrances, the acceptance of the bid by the Council shall not be binding upon the City, and the City, nor any of its officers, agents or employees, shall not be liable to the vendee, or the heirs, executors, administrators, successors or assigns of the vendee, for any damage or injury suffered or which may be occasioned by failure of the City in such case to convey the property. All vendees of property sold by the City in bidding upon such property, either at public or private sales, shall be bound by the foregoing condition.

(§ 3, Ord. 496)

No bid shall be accepted at any public or private sale made pursuant to this chapter for less than the amount of all assessment liens levied upon the property, together with all costs paid or incurred for acquiring title thereto; provided, however, that if the Council by resolution declares that in its opinion the property is not of a value great enough that it can be sold for a sum equal to the aggregate of said amounts and that it would be for the best interest of the City to sell the property subject to the condition set forth in Section 8.16.030 of this chapter for a sum to be stated in the resolution, less than the said aggregate sum, the Council may accept a bid for a sum not less than that stated in the resolution, and in such case such sale shall be a valid sale in all respects.

(§ 4, Ord. 496)