JJ Hollingsworth thinks she’s stumbled upon the deal of her life: A million-dollar property in San Francisco’s Sunset District sold for just $25,000 through a tax-delinquent land sale.
She recognized the address as 1926 Kirkham Street, the house next to her home. So she and her partner Alemayehu Mergia placed a sealed bid and won.
The first sign came when the city returned Hollingsworth’s $8,000 check to pay the transfer tax. But the real shock came when she took a closer look at the paperwork and realized that the piece of land she now legally owned wasn’t the house across the alley at all: it was the alley itself, known as Dirt Lane on Google Maps, or at least the first 82 feet of it (2).
The couple, who decided to bid at the last minute, missed several key pieces of information, including the opening line of a letter sent to them about the tax sale, which explicitly stated that the auction was for land “unavailable for use because of size, location or other conditions.”
Small plots of land auctioned have no development prospects and are often most useful for parking or garden space on neighboring properties, which is why local authorities inform owners of nearby properties of upcoming auctions. In the case of Dirt Alley, that means notices were mailed to five property owners.
All emails contain a diagram of the property to be auctioned, as well as details of the plot numbers of the land to be auctioned which correspond to the alleys. However, the street address given is 1926 Kirkham, a two-story triplex that last changed hands in 2024 for just over $1 million.
Despite this, the Inland Revenue insists that every effort has been made to make it clear exactly what properties are being offered at auction.
Amanda Kahn Fried, director of policy and communications for the local tax agency, told CBS News in a statement that the office followed state law by providing “accurate parcel maps and clear language” and giving bidders the opportunity to ask questions before submitting bids.
“While we regret that any bidder may have misunderstood the nature of the package, the city cannot be held responsible for errors resulting from a bidder’s failure to carefully review the disclosed materials,” the statement said.
Some of the language on the San Francisco City and County Treasurer and Tax Collector’s Office website leading to the auction is even more explicit:
“All properties are sold as-is. Be an informed bidder. Prospective purchasers are urged to inspect the title, location and desirability of the property to their satisfaction before selling…It is the bidder’s responsibility to know what they are buying…All sales are final” (3).
There may be a way out for the new owners of Dirt Alley: The sale could be reversed if the San Francisco Board of Supervisors votes to do so. Judging from the county’s record to date, that’s unlikely: only one sale has been reversed so far, and that was a high-profile case involving the purchase of sidewalks (4).
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Tax delinquency sales can be a great place to find a bargain, but they also come with significant risk. If you’re thinking about bidding, slow down and make sure you know exactly what you’re bidding on, what winning means, and how high you’re willing to bid.
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Double-check the property’s details: Use a plot map, not just the street address. Confirm parcel number and review lot map.
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Conduct a title search to uncover mortgages, liens, or other claims that could become your liability if you win the property.
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Understand local laws, including the specifics of the sales process, redemption periods and lien handling, which vary from state to state and even from county to county.
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Know Your Limits: Secure your funds ahead of time, as auctions often require immediate payment in full. Set a budget and stick to it, no matter how drawn you are in a fast-moving auction.
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CBS News (1); Google Maps (2); San Francisco City and County Treasurer and Tax Collector’s Office (3); Business Insider (4)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.