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 knowledgeable 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), email us at info(at)talkovlaw.com, or fill out a contact form online. Contact Talkov Law today to find out how you can pay nothing today and have your legal fees paid from the proceeds of sale of your property!