Article 3 - Consummation of Sale

California Code of Civil Procedure — §§ 873.710-873.790

Sections (10)

Added by Stats. 1976, Ch. 73.

(a)Upon making a sale of property, the referee shall report the sale to the court.

(b)The referee’s report shall contain, in addition to such other information as may be appropriate, all of the following information:

(1)A description of the property sold to each purchaser.

(2)The name of the purchaser.

(3)The sale price.

(4)The terms and conditions of the sale and the security, if any, taken.

(5)Any amounts payable to lienholders.

(6)A statement as to contractual or other arrangements or conditions as to agents’ commissions.

(7)Any determination and recommendation as to opening and closing public and private ways, roads, streets, and easements.

(8)Other material facts relevant to the sale and the confirmation proceeding.

§ 873.720

Added by Stats. 1976, Ch. 73.

(a)A purchaser, the referee, or any party may move the court to confirm or set aside the sale.

(b)The moving party shall give not less than 10 days’ notice of motion to:

(1)The purchaser if the purchaser is not the moving party; and

(2)All other parties who have appeared in the action.

§ 873.730

Added by Stats. 1976, Ch. 73.

(a)At the hearing, the court shall examine the report and witnesses in relation to the report.

(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)The court may vacate the sale and direct that a new sale be made if it determines any of the following:

(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)The sale price is disproportionate to the value of the property.

(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.

§ 873.740

Added by Stats. 1976, Ch. 73.

(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)Vacate the sale and direct that a new sale be made.

(2)Vacate the sale, accept the increased offer, and confirm the sale to the offerer.

(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)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.

§ 873.745

Added by Stats. 1976, Ch. 73.

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.

§ 873.750

Added by Stats. 1976, Ch. 73.

(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)The order may direct the referee concerning the distribution, deposit, or securing of sale deposits and sale proceeds.

§ 873.760

Added by Stats. 1976, Ch. 73.

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)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)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.

§ 873.770

Added by Stats. 1976, Ch. 73.

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.

§ 873.780

Added by Stats. 1976, Ch. 73.

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.

§ 873.790

Added by Stats. 1976, Ch. 73.

(a)Upon fulfillment of the terms of sale, the referee shall execute a conveyance or other instrument of transfer to the purchaser.

(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.