Code of Civil Procedure 873.770 CCP – Taking Setoff from Party Purchaser (Partition Actions)

//

California Code of Civil Procedure 873.770 is the California partition statute that explains how the partition referee will distribute proceeds of sale when the purchaser is also a party entitled to some of the proceeds of sale, i.e., when credit bidding may be available. The statute provides that:

Where the purchaser is a party or lienholder entitled to a share of the proceeds of sale, the referee may:
(a) Take the purchaser’s receipt for so much of the proceeds of sale as belongs to the purchaser.
(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.

In other words, this statute suggests that credit bidding a co-owner’s equity in a partition by sale may be possible to buy out a co-owner. However, the issue becomes whether there is a determination at the time of the partition sale of the amount that will be paid to the purchasing co-owner.

Contact an Experienced Partition Attorney in California

If you want to end your co-ownership relationship, but your co-owner won’t agree, a partition action is your only option. Our experienced partition lawyers have years of experience ending co-ownership disputes and can help you unlock the equity in your property. For a free, 15 minute consultation with an experienced partition attorney at Talkov Law, call (844) 4-TALKOV (825568) or fill out a contact form online.

Avatar photo
About Talkov Law

The attorneys at Talkov Law solve co-ownership disputes by representing co-owners in real estate partition actions throughout the State of California.

Talkov Law is Rated 5 out of 5 stars based on 79 customer reviews.

Contact Us to Schedule Your Complimentary Consultation

    Awards and Recognition

    US News and World Report Scott Talkov

    We Have Been Featured On:

    The Real Deal

    Recent Blog Posts

    The information on this site, including the Talkov Law Blog, is intended for general information purposes only. By using this site, you agree that any information contained in the site does not constitute legal, financial or any other form of professional advice. Information on this site may be changed without notice and is not guaranteed to be complete, accurate, correct or up-to-date.