Detailed Answer: How you receive your share of net proceeds after a California partition sale
When a co-owned house is sold in a court-ordered partition action in California, the court supervises the sale and orders distribution of the funds. The court first pays costs and secured claims, then distributes the remaining (net) proceeds to the owners according to the court’s order. Here is how that works and what you should do to get your share.
1. The basic legal framework
Partition actions in California are governed by the Code of Civil Procedure. The partition statutes begin at Cal. Code Civ. Proc. § 872.010 and following sections, which explain how a party can ask the court to divide or sell property and how the sale is handled. See Cal. Code Civ. Proc. § 872.010 et seq.: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=872.010.&lawCode=CCP
2. How the court arrives at the net proceeds amount
- The sale price is paid into court or to an escrow/commissioner appointed by the court once the sale is confirmed.
- Before distributing funds, the court or its appointed officer deducts: costs of sale (real estate commissions, escrow fees), court costs, the costs of the partition action (appraiser fees, referee or commissioner fees), any liens and mortgages that have priority (including recorded deeds of trust), and any other allowed charges (for example, costs to make the property marketable or to comply with court orders).
- After these deductions, the remainder is the net proceeds available for distribution to the co‑owners.
3. How the court decides each owner’s share
Absent a written agreement that says otherwise, the court distributes the net proceeds based on each party’s legal interest in the property (for example, 50/50 if two owners each hold an equal undivided one-half interest). If the parties disagree about equitable adjustments (for example, one owner paid more for a mortgage, taxes, or improvements), a party can request the court to account for contributions and order reimbursements before distribution.
4. Steps to get your share — practical checklist
- Obtain the court’s disposition paperwork: after sale confirmation, get the court’s order confirming sale and the order of distribution (often called an order directing distribution of proceeds). These documents specify the amounts withheld and each owner’s share.
- Confirm where the money is held: funds are typically held by the court, an escrow agent, or a court-appointed officer (referee/commissioner). The order will identify the payor.
- Provide required documentation: the paying agent may require a certified copy of the distribution order, identification, a signed receipt or a W-9 for payees receiving funds. If you are represented, your attorney will usually handle this.
- Receive payment: once the paying agent has the required documents and the distribution order is final, they will issue payment (check or wire) to each payee per the court’s order.
- If there’s a dispute about your share: file a motion with the court asking for clarification, an accounting, or enforcement. You can also ask the court to withhold distribution until equitable claims (contributions, liens, offsets) are resolved.
5. Common problems and remedies
- Delay in payment: contact the court clerk or the escrow agent shown on the order. If a co-owner refuses to accept or distribute funds contrary to the court’s order, you can file a motion to enforce the order or seek contempt sanctions.
- Unpaid liens or conflicting claims: secured creditors (mortgages, IRS liens) usually take priority and will be paid from sale proceeds before owners get anything. If a lien was missed, you may need to ask the court to re-open the distribution.
- Dispute over contributions or offsets: ask the court for an accounting or a reallocation hearing before distribution is finalized. The court can award credits for mortgage payments, taxes, necessary repairs, or improvements if justified.
6. Timing and practical expectations
The timeline varies. After sale confirmation, distribution often happens within a few weeks to a few months, depending on whether there are objections, outstanding liens, or required tax forms. If parties contest distribution figures or ask for an accounting, expect additional court hearings and delays.
7. When to get a lawyer
Consider hiring an attorney if:
- Co-owners dispute ownership percentages or contributions.
- Multiple liens or complex creditor priority issues exist.
- You need to enforce a court order or pursue contempt or collection actions.
Key legal references and resources
- California partition statutes (start): Cal. Code Civ. Proc. § 872.010 et seq. — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=872.010.&lawCode=CCP
- California Courts – Self‑Help and information for civil matters: https://www.courts.ca.gov/selfhelp.htm
Disclaimer
This is general information, not legal advice. I am not a lawyer. For advice tailored to your situation, consult a licensed California attorney.