The court shall order the proceeds of sale and any security therefor to be paid, transferred, deposited in court, placed in trust, or invested in State of California or United States government obligations or interest-bearing accounts in an institution whose accounts are insured by an agency of the federal government, to or for the benefit of the persons in interest entitled thereto, as may be appropriate or as specifically provided in this article.
Sale of the PropertyDisposition of Proceeds of Sale
Section § 873.810
This law says that when something is sold after a court order, the money from the sale must be handled in specific ways. It could be given directly to the people who have a right to it, placed in a trust, or invested in government-backed accounts to keep it safe, depending on what makes the most sense or what the law here specifically advises.
proceeds of sale court order security
Section § 873.820
When a property is sold, the money from the sale must be used in a specific order. First, any costs from selling the property are paid. Next, any costs related to dividing the property are covered. Then, any debts attached to the property must be paid off in the correct order, unless those debts stay with the property. Finally, whatever money is left gets split among the owners based on what the court says each person is entitled to.
The proceeds of sale for any property sold shall be applied in the following order:
(a)CA Civil Procedure Code § 873.820(a) Payment of the expenses of sale.
(b)CA Civil Procedure Code § 873.820(b) Payment of the other costs of partition in whole or in part or to secure any cost of partition later allowed.
(c)CA Civil Procedure Code § 873.820(c) Payment of any liens on the property in their order of priority except liens which under the terms of sale are to remain on the property.
(d)CA Civil Procedure Code § 873.820(d) Distribution of the residue among the
parties in proportion to their shares as determined by the court.
sale proceeds expenses of sale costs of partition
Section § 873.830
If only part of a property is being sold and someone has a life interest (meaning they can use it for their lifetime) or a lease (for a certain number of years) in an undivided share, they can have their portion set aside in the part that isn't sold as a way to satisfy their share of any money made from the sale.
Where a part only of the property is sold, a tenant for life or years in an undivided share of the whole property may have his estate equitably set off in any part of the property not sold by way of complete or partial satisfaction of his share of the proceeds.
undivided share proceeds satisfaction life tenant
Section § 873.840
This law explains how a court should handle the distribution of money from the sale of property when different people have various types of rights to that property, such as a tenant for life or someone with a future right. The court decides how much money each person is entitled to and either gives it to them or holds it for their benefit. For complex situations like a life estate with future interests, the court might put all the sale money into a trust. A trustee appointed by the court looks after this money, investing it and paying income to the current tenant and then, when the tenant's interest ends, passing the remaining money to the future interest holder.
(a)CA Civil Procedure Code § 873.840(a) The court shall ascertain the proportion of the proceeds of sale that will be a just and reasonable sum for the satisfaction of the estate of a tenant for life or years and shall order such amount distributed to him or held for his benefit.
(b)CA Civil Procedure Code § 873.840(b) The court shall ascertain the proportional value of any vested or contingent future right or estate in the property and shall direct such proportion of the proceeds of sale to be distributed, secured, or held in such a manner as to protect the rights and interests of the parties.
(c)CA Civil Procedure Code § 873.840(c) Notwithstanding any other provision of this section, in the case of an estate for life or defeasible estate with remainder over, the court may direct that the entire proceeds of sale be placed in trust as provided in this section upon a showing that the establishment of such a trust is economically feasible and will serve the best interests of the parties. The court shall appoint a trustee, upon security satisfactory to the court, who under court supervision shall invest and reinvest the proceeds, pay the income of the investments, if any, to the life tenant or owner of the defeasible interest, and upon termination of the life or defeasible estate, deliver or pay the corpus of the trust estate to the remainderman. The court shall retain jurisdiction over the settlement of the accounts of the trustee and in all matters necessary for the proper administration of the trust and the final distribution of the trust fund.
proceeds of sale tenant for life future right
Section § 873.850
If money from a sale, related to a case, hasn't been divided among the involved parties, the case can continue to figure out each person's share. The court will decide on these claims, and can gather more evidence or get more information from a referee. The involved parties might need to provide additional facts or legal arguments, similar to how they would in a new case.
When the proceeds of the sale belonging to persons who are parties to the action, whether known or unknown, have not been allocated among such parties, the action may be continued as between such parties, for the determination of their respective claims thereto, which must be ascertained and adjudged by the court. Further testimony may be taken in court, or by a referee, at the discretion of the court, and the court may, if necessary, require such parties to present the facts or law in controversy, by pleadings, as in an original action.
sale proceeds party claims allocation
