Sale of the PropertyConsummation of Sale

Section § 873.710

Explanation

When property is sold, the referee (the person overseeing the sale) must report details of the sale to the court. This report needs to include several key pieces of information such as what property was sold and to whom, the sale price, any terms and conditions, payments to those owed money on the property, and any agent commissions. It should also address public access and other important facts about the sale.

(a)CA Civil Procedure Code § 873.710(a) Upon making a sale of property, the referee shall report the sale to the court.
(b)CA Civil Procedure Code § 873.710(b) The referee’s report shall contain, in addition to such other information as may be appropriate, all of the following information:
(1)CA Civil Procedure Code § 873.710(b)(1) A description of the property sold to each purchaser.
(2)CA Civil Procedure Code § 873.710(b)(2) The name of the purchaser.
(3)CA Civil Procedure Code § 873.710(b)(3) The sale price.
(4)CA Civil Procedure Code § 873.710(b)(4) The terms and conditions of the sale and the security, if any, taken.
(5)CA Civil Procedure Code § 873.710(b)(5) Any amounts payable to lienholders.
(6)CA Civil Procedure Code § 873.710(b)(6) A statement as to contractual or other arrangements or conditions as to agents’ commissions.
(7)CA Civil Procedure Code § 873.710(b)(7) Any determination and recommendation as to opening and closing public and private ways, roads, streets, and easements.
(8)CA Civil Procedure Code § 873.710(b)(8) Other material facts relevant to the sale and the confirmation proceeding.
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Section § 873.720

Explanation

If someone buys property through a court-ordered sale, the buyer, the referee, or any involved party can ask the court to approve or cancel the sale. They must notify certain people involved at least 10 days before doing so, particularly the buyer and anyone else who has participated in the case.

(a)CA Civil Procedure Code § 873.720(a) A purchaser, the referee, or any party may move the court to confirm or set aside the sale.
(b)CA Civil Procedure Code § 873.720(b) The moving party shall give not less than 10 days’ notice of motion to:
(1)CA Civil Procedure Code § 873.720(b)(1) The purchaser if the purchaser is not the moving party; and
(2)CA Civil Procedure Code § 873.720(b)(2) All other parties who have appeared in the action.
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Section § 873.730

Explanation

This law explains how a court handles the confirmation of a property sale. During a hearing, the court reviews a report and any witnesses related to it. The court can confirm the sale even if there are differences from the original sale terms, as long as it benefits everyone involved and doesn't harm anyone with an interest in the sale. The court can cancel and order a new sale if they find that the sale process was unfair, the price was too low compared to the property's value, or a new sale would likely bring in significantly more money.

(a)CA Civil Procedure Code § 873.730(a) At the hearing, the court shall examine the report and witnesses in relation to the report.
(b)CA Civil Procedure Code § 873.730(b) The court may confirm the sale notwithstanding a variance from the prescribed terms of sale if to do so will be beneficial to the parties and will not result in substantial prejudice to persons interested in the sale.
(c)CA Civil Procedure Code § 873.730(c) The court may vacate the sale and direct that a new sale be made if it determines any of the following:
(1)CA Civil Procedure Code § 873.730(c)(1) The proceedings were unfair or notice of sale was not properly given. If there is no finding at the hearing of unfairness or improper notice, the sale may thereafter not be attacked on such grounds.
(2)CA Civil Procedure Code § 873.730(c)(2) The sale price is disproportionate to the value of the property.
(3)CA Civil Procedure Code § 873.730(c)(3) It appears that a new sale will yield a sum that exceeds the sale price by at least 10 percent on the first ten thousand dollars ($10,000) and 5 percent on the amount in excess thereof, determined after a reasonable allowance for the expenses of a new sale.
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Section § 873.740

Explanation

This law discusses what happens if someone offers to buy a property for more than the current sale price in a court-ordered sale. If someone offers at least 10% more than the first $10,000 and 5% more on the rest, the court can either cancel the sale and start over or accept the higher offer and finalize the sale with the new buyer. The amount of this increased offer is normally based on the total offer, including any commission an agent might get, unless the court or parties agree otherwise and the new offer is from a party not using an agent.

(a)CA Civil Procedure Code § 873.740(a) If at the hearing under Section 873.730 a responsible bidder makes a written increased offer that exceeds the sale price by at least 10 percent on the first ten thousand dollars ($10,000) and 5 percent on the amount in excess thereof, the court in its discretion may do either of the following:
(1)CA Civil Procedure Code § 873.740(a)(1) Vacate the sale and direct that a new sale be made.
(2)CA Civil Procedure Code § 873.740(a)(2) Vacate the sale, accept the increased offer, and confirm the sale to the offerer.
(b)CA Civil Procedure Code § 873.740(b) Except as provided in subdivision (c), the amount by which an increased offer exceeds the sale price is determined on the basis of the gross amount of the increased offer including any commission on the increased offer to which an agent may be entitled.
(c)CA Civil Procedure Code § 873.740(c) Where in advance of sale the court has so ordered or the parties have so agreed, if an increased offer is made by a party to the action who is not represented by an agent, the amount by which an increased offer of a nonparty exceeds the sale price is determined on the basis of the net amount of the increased offer excluding any commission on the increased offer to which an agent may be entitled.
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Section § 873.745

Explanation
The court is responsible for deciding how much commission real estate agents earn from a sale, similar to how it's done when selling property from an estate left by someone who has passed away.
The amount of agents’ commissions on the sale, if any, shall be fixed by the court and divided or limited in the manner provided for private sales of real property in decedents’ estates.
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Section § 873.750

Explanation
When a court confirms a property sale, it orders a referee to handle the transfer paperwork, collect money, and complete any other tasks needed to finalize the sale. The referee may also receive guidance on how to manage or distribute the sale's funds.
(a)CA Civil Procedure Code § 873.750(a) Upon confirmation of a sale, the court shall order the referee to execute a conveyance or other instrument of transfer, to collect the proceeds, take security, and perform other acts required to consummate the sale.
(b)CA Civil Procedure Code § 873.750(b) The order may direct the referee concerning the distribution, deposit, or securing of sale deposits and sale proceeds.
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Section § 873.760

Explanation

If someone buys a property at a court-ordered sale but doesn’t pay the price after the sale is confirmed, the court can take further action against them. The court can either force the property to be sold again, and if money is lost in the process, the buyer who didn’t pay must cover those losses and legal costs. Alternatively, the court can require the buyer to pay the original sale price through a legal action, and the buyer may also have to pay for legal fees.

If the purchaser, after the confirmation of the sale, fails to pay the sale price, the purchaser is subject to the court’s jurisdiction and to further proceedings in the action. Upon such failure, a party, or the referee, may upon notice move the court to order either of the following forms of relief:
(a)CA Civil Procedure Code § 873.760(a) Resale of the property upon notice as provided in this chapter. If any loss is occasioned thereby, the referee may recover the amount of such loss and costs and expenses incurred, including a reasonable attorney’s fee, from the purchaser who failed to pay.
(b)CA Civil Procedure Code § 873.760(b) Maintenance by the referee of an action against the purchaser for the amount of the sale price. If the referee recovers judgment, the referee shall be awarded a reasonable attorney’s fee against the purchaser.
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Section § 873.770

Explanation

If you're buying property and you're either an interested party or have a lien on it, there's a process for handling the money from the sale. A referee can give you a receipt for your part of the sale money. The referee can also make sure you have a plan or security in place for paying any related costs like selling expenses or other legal costs that might come up.

Where the purchaser is a party or lienholder entitled to a share of the proceeds of sale, the referee may:
(a)CA Civil Procedure Code § 873.770(a) Take the purchaser’s receipt for so much of the proceeds of sale as belongs to the purchaser.
(b)CA Civil Procedure Code § 873.770(b) Take security, or other arrangement satisfactory to the referee, for payment of amounts which are or may become due from the purchaser on account of the expenses of sale, general costs of the action, and costs of the reference.
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Section § 873.780

Explanation

The court can issue orders on the details of finishing a sale once it confirms the sale, like handling escrow and closing details. If both the referee and buyer agree, and the court decides it won't significantly harm the parties involved, the terms of the sale can be adjusted for any defects found after the sale agreement.

The court may make orders relating to the closing of a sale after confirmation, including escrow and closing provisions and, if the referee and purchaser so agree and the court upon noticed motion determines it will not result in substantial prejudice to the parties, may make adjustments varying the terms of sale based on after-discovered defects.
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Section § 873.790

Explanation

When a property is sold, the referee must complete any necessary paperwork to formally transfer ownership to the buyer. This transfer document and the court's approval of it must then be recorded in every county where the property is located.

(a)CA Civil Procedure Code § 873.790(a) Upon fulfillment of the terms of sale, the referee shall execute a conveyance or other instrument of transfer to the purchaser.
(b)CA Civil Procedure Code § 873.790(b) The conveyance or transfer of real property and the order authorizing such conveyance or transfer shall be recorded in each county in which the property is located.
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