Section § 996.510

Explanation

This law section is about using legal action to make sure people or entities fulfill their obligations on bonds owed to the state or its people, such as official bonds.

This article applies to proceedings for the benefit of the state to enforce the liability on a bond executed to, in favor of, or payable to the state or the people of the state, including but not limited to an official bond.

Section § 996.520

Explanation

When someone is trying to enforce a bond-related liability through the court, they need to submit an affidavit to the court. This affidavit must confirm a few things: that the bond was signed by the defendant, that the bond falls under this legal article, that the defendant owns real estate (specifying where), and that the enforcement of the liability is for the state's benefit.

The person enforcing the liability may file with the court in the proceedings an affidavit stating the following:
(a)CA Civil Procedure Code § 996.520(a) The bond was executed by the defendant or one or more of the defendants (designating whom).
(b)CA Civil Procedure Code § 996.520(b) The bond is one to which this article applies.
(c)CA Civil Procedure Code § 996.520(c) The defendant or defendants have real property or an interest in real property (designating the county or counties in which the real property is situated).
(d)CA Civil Procedure Code § 996.520(d) The liability is being enforced for the benefit of the state.

Section § 996.530

Explanation
When you file an affidavit with the clerk about a real estate claim, the clerk needs to tell the county recorder a few things: who's involved, which court is handling the case, how much money is at stake, and when the case started.
The clerk receiving the affidavit shall certify to the recorder of the county in which the real property is situated all of the following:
(a)CA Civil Procedure Code § 996.530(a) The names of the parties.
(b)CA Civil Procedure Code § 996.530(b) The court in which the proceedings are pending.
(c)CA Civil Procedure Code § 996.530(c) The amount claimed.
(d)CA Civil Procedure Code § 996.530(d) The date of commencement of the proceedings.

Section § 996.540

Explanation

This law section explains that when a certificate is received by the county recorder, they must mark the time it was received. Afterward, the certificate is to be filed and recorded just like a notice about a pending lawsuit involving real estate.

(a)CA Civil Procedure Code § 996.540(a) Upon receiving the certificate the county recorder shall endorse upon it the time of its receipt.
(b)CA Civil Procedure Code § 996.540(b) The certificate shall be filed and recorded in the same manner as notice of the pendency of an action affecting real property.

Section § 996.550

Explanation

If someone wins a lawsuit against you and gets a judgment, that judgment automatically becomes a claim against any real estate you own in any county where a related document is filed. This claim, called a lien, is for the amount you owe under the judgment.

(a)CA Civil Procedure Code § 996.550(a) Any judgment recovered is a lien upon all real property belonging to the defendant situated in any county in which the certificate is filed, from the filing of the certificate.
(b)CA Civil Procedure Code § 996.550(b) The lien is for the amount for which the owner of the real property is liable upon the judgment.

Section § 996.560

Explanation

This law is about what happens when someone buys property that has a lien on it due to a legal claim. If the buyer agreed to buy the property before the lien was filed, and the payment is due after the lien was filed, the court can order the buyer to pay the State Treasurer instead of the seller. This allows the buyer to still get the property without the lien affecting them. The State Treasurer holds onto the money until the legal issues about the lien are resolved.

If an agreement to sell real property affected by the lien created by the filing of a certificate was made before the filing of the certificate and the purchase price under the agreement was not due until after the filing of the certificate, and the purchaser is otherwise entitled to specific performance of the agreement:
(a)CA Civil Procedure Code § 996.560(a) The court in an action to compel specific performance of the agreement shall order the purchaser to pay the purchase price, or so much of the purchase price as may be due, to the State Treasurer, and to take the State Treasurer’s receipt for payment.
(b)CA Civil Procedure Code § 996.560(b) Upon payment, the purchaser is entitled to enforcement of specific performance of the agreement. The purchaser takes the real property free from the lien created by the filing of the certificate.
(c)CA Civil Procedure Code § 996.560(c) The State Treasurer shall hold the payment pending the proceedings referred to in the certificate. The payment is subject to the lien created by the filing of the certificate.