ExecutionSale and Collection
Section § 701.510
This law explains that if an officer takes control of someone's property to pay off a debt, they generally have to sell all of it. However, there are exceptions: physical items can't be sold until the officer has them in their possession, and cash can only be sold if it's worth more than its numerical value.
Section § 701.520
This section outlines what happens when certain types of property are taken to satisfy a debt. Instead of selling valuable assets like accounts receivable or final money judgments, these are usually collected by the creditor. If the creditor wants to sell the property instead of collecting it, they must notify the person who owes the debt. The debtor has 10 days to convince the court to allow the property to be collected rather than sold. At a hearing, the court can decide whether the property should be sold or collected, based on the situation. If the court allows the collection instead, the debtor might need to officially give the rights to the creditor.
Section § 701.530
This California statute explains how to properly notify someone about the sale of personal property they own. The notice must be written, list when and where the sale will happen, and describe what will be sold. At least 10 days before the sale, this notice has to be posted in three public places around the location where the sale will occur. If the sale is inside a city, it must be posted in that city; if not, in the county. The notice must also be sent to the person who owes money, either personally or by mail, to give them a chance to claim any legal exemptions before their property is sold.
Section § 701.540
This law outlines the procedures for giving notice before selling someone's interest in real property. It requires a written notice detailing the sale's date, time, and location, as well as a description of the property. The notice must be given at least 20 days before the sale, and it should be provided to the debtor and posted in public places, including the property itself. If no one can be personally served on the property, further attempts aren't needed. The notice also must be published in a local newspaper. Moreover, 30 days after the levy, the creditor must identify all lienholders through county records and ensure they receive notices of the sale.
Section § 701.545
Section § 701.547
When there's a public auction of property, the notice of sale must tell bidders to check out California's rules (Sections 701.510 to 701.680). These sections explain the sale's terms, conditions, and what happens if someone wins the bid but fails to pay.
Section § 701.550
This law outlines how people can request notifications about the sale of property that has been seized to pay off a debt. If someone wants to be informed about such a sale, they must submit a written request before the writ (an official order) is issued, providing details like the court title, case number, and their mailing address. If someone wants to know about the sale of a specific property that's been seized, they can file a request with the officer managing the sale, including any information the officer needs to fulfill the request.
Section § 701.555
Along with the mandatory notice of sale, the person owed money (judgment creditor) can also choose to advertise the sale in newspapers or other publications to reach more people. They can get back the reasonable costs of this advertising. On the other hand, the person who owes the money (judgment debtor) can also place their own ads, but they must pay for those themselves.
Section § 701.560
This law states that if the necessary notice of sale isn't given before selling property, the sale itself is still valid. However, the officer responsible for the sale might have to pay damages to the people involved if any harm occurred because the notice wasn't given.
Section § 701.570
This law section outlines how a sale of property to satisfy a court judgment should be conducted. It specifies that the sale must happen at a specific time and place, usually in the county where the property is located, between 9 AM and 5 PM. The property is auctioned off to the highest bidder. Personal property must be visible to attendees unless otherwise ordered by a court. The property can be grouped or sold separately to get the best price, and the debtor can request how it should be sold. Once enough property has been sold to cover the judgment amount, no more will be sold.
Section § 701.580
If someone owes money from a court judgment, both the person who owes (the debtor) and the person owed (the creditor) can ask to delay a scheduled sale to a new date and time they both agree on. They must let the officer in charge of the sale know in writing. The officer will announce the new date and time publicly at the original sale time and place, and they’ll do the same for any further delays. The sale will happen at the same place as planned, just at a later date.
Section § 701.590
When someone buys property at a sale, they usually need to pay with cash or a certified check. If the person owed money (the judgment creditor) is bidding, they can sometimes use a credit to pay instead. However, any remaining fees or specific claims need to be paid with cash or a certified check. If the winning bid on real estate is over $5,000, the buyer can choose to finance the rest, starting with a $5,000 deposit or 10% of the bid, whichever is higher. They must pay the rest and any interest within 10 days. For personal property worth over $2,500, the rules are similar, with a minimum deposit of $2,500 or 10%. Buyers can't take the property until everything is paid off.
Section § 701.600
If the person who wins the bid at a property auction doesn't pay, the officer in charge will offer the property to the next highest bidder or hold a new auction right away. If the bid default happens after the sale, the property is sold again to the highest bidder. Any deposits made are used to cover costs and interest first. The person who didn't pay is responsible for covering the difference between their bid and the new sale amount, plus any extra costs, interest, and attorney fees. Also, the officer can refuse any future bids from this person.
Section § 701.610
The officer in charge of enforcing legal judgments can't buy anything or have any interest in things being sold at a sale they manage.
Section § 701.620
Before certain property can be sold at auction, the bid must be more than several specific costs. It must cover labor claims owed under Section 1206, priority state tax liens, and any deposits made if the buyer is not the creditor. Additionally, if the property is a motor vehicle, household goods, or tools of trade with exemption rights, the bid must also exceed those exemption amounts. If the required minimum bid isn't achieved, the officer in charge has to release the property without selling it.
Section § 701.630
When property is sold according to this law, any claims or debts tied to the property, those that have a lower priority than the one being addressed, and certain state tax claims on the property are eliminated.
Section § 701.640
If you buy property at an auction to satisfy a debt, you get any ownership rights the person who owed the money had when the lien started and any rights they got in that property up until it was sold at the auction.
Section § 701.650
This law explains what happens when someone buys personal property that has been taken by the government to satisfy a debt. If the property can be physically handed over, the officer in charge will give it to the buyer. If the buyer wants, they'll also get a certificate proving the purchase. If the property can't be handed over physically, such as digital items or rights, the buyer will get just the certificate. Additionally, the officer must sign or endorse any related documents to show the buyer now owns the property or has the right to possess it.
Section § 701.660
When someone buys a piece of real estate from a legal sale, they must pay the levying officer the total amount due, including a transfer tax. Once paid, the officer gives the buyer a sale deed and records a copy with the county recorder. The officer also sends the transfer tax to the county or city.
Section § 701.670
This section details what information must be included in a certificate or deed when property has been sold due to a court judgment. It requires the court's name, judgment details, names and addresses of the parties involved, a description of the property, and the sale date.
Section § 701.680
This law states that once a property is sold as part of a legal process to satisfy a debt, the sale is usually final and can't be reversed. However, if the original court ruling is canceled, the person who owed the debt can get back any money made from the sale with interest. If there were problems with how the sale was handled, such as legal issues or the wrong property being sold, the person who owed the debt has 90 days to challenge the sale if the buyer was the one owed the debt. If the sale is invalidated, any debt and liens are reinstated as if the sale never happened. The person who owed the debt can also claim damages. But note, the buyer of the property isn't considered a successor in interest, and this law doesn't take away the debtor's right to redeem the property under certain conditions.