California Real Estate Practice Exam

On which date do California real property taxes become a lien on the subject property?

1. April 10

2. December 10

3. January 1

4. July 1

The correct answer is: January 1

In California, real property taxes become a lien on the subject property on January 1 of each year. This is a key date in California tax law, as it marks the point at which the tax obligation is established for the current fiscal year. From that date onward, the property is subject to tax and any unpaid taxes become a lien against the property, which means they have a legal claim over the property that must be satisfied before it can be sold or otherwise encumbered. The significance of January 1 as the lien date is also reflected in the annual tax assessment process, where the value of the property is determined as of that date, influencing the property tax amount due. Therefore, understanding this date is crucial for anyone involved in California real estate, as it affects property tax obligations and potential liens on properties throughout the state.