California Code of Civil Procedure 873.820 is the California partition statute that directs the order in which the proceeds of a sale of a property shall be applied. The statute provides that:
The proceeds of sale for any property sold shall be applied in the following order:
(a) Payment of the expenses of sale.
(b) Payment of the other costs of partition in whole or in part or to secure any cost of partition later allowed.
(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) Distribution of the residue among the parties in proportion to their shares as determined by the court.California Code of Civil Procedure 873.820
This statute applies to both unencumbered and encumbered property. Because partition by a lienholder is no longer a manner of partition, this statute has been updated to remove the previous requirement that liens be paid prior to the lien upon which the owner’s title is based.
An extensive treatment of California Code of Civil Procedure Section 873.820(c) as applied to the payment of liens, including liens encumbering only the interests of one co-owner, can be found in Cohen v. Karubian (1969) 276 Cal.App.2d 44, 48.
Talkov Law's Partition Attorneys Can Help
If you want to end your co-ownership relationship, but your co-owner won’t agree, a partition action is your only option. With six, full time partition lawyers, Talkov Law is the #1 partition law firm in California and has handled 250 partition actions throughout California. Every case has resulted in a sale to either a third party or one of the co-owners. Not a single court has denied our clients the right to partition or declared our client to be a non-owner. Plus, for qualified cases, there is no fee until we settle or win your case!