AB 2317, as introduced, Maienschein. Execution: sale of property.
Existing law provides that a sale of property pursuant to specified statutory provisions regarding enforcement of judgments is absolute and may not be set aside for any reason. The judgment debtor may recover from the judgment creditor the proceeds of a sale pursuant to the judgment with interest if the judgment is reversed, vacated, or otherwise set aside. If the sale was improper because of irregularities in the proceedings, because the property sold was not subject to execution, or for any other reason, the judgment debtor, or the judgment debtor’s successor in interest, may commence an action within 90 days after the date of sale to set aside the sale if the purchaser at the sale is the judgment creditor.
This bill would declare that these provisions do not affect, limit, or eliminate a judgment debtor’s equitable right of redemption.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 701.680 of the Code of Civil Procedure
2 is amended to read:
(a) Except as provided in paragraph (1) of subdivision
2(c), a sale of property pursuant to this article is absolute andbegin delete mayend delete
3begin insert shallend insert not be set aside for any reason.
4(b) If the judgment is reversed, vacated, or otherwise set aside,
5the judgment debtor may recover from the judgment creditor the
6proceeds of a sale pursuant to the judgment with interest at the
7rate on money judgments to the extent the proceeds were applied
8to the satisfaction of the judgment.
9(c) If the sale
was improper because of irregularities in the
10proceedings, because the property sold was not subject to
11execution, or for any other reason:
12(1) The judgment debtor, or the judgment debtor’s successor in
13interest, may commence an action within 90 days after the date of
14sale to set aside the sale if the purchaser at the sale is the judgment
15creditor. Subject to paragraph (2), if the sale is set aside, the
16judgment of the judgment creditor is revived to reflect the amount
17that was satisfied from the proceeds of the sale and the judgment
18creditor is entitled to interest on the amount of the judgment as so
19revived as if the sale had not been made. Any liens extinguished
20by the sale of the property are revived and reattach to the property
21with the same priority and effect as if the sale had not been made.
22(2) The judgment debtor, or the judgment debtor’s successor in
23interest, may
recover damages caused by the impropriety. If
24damages are recovered against the judgment creditor, they shall
25be offset against the judgment to the extent the judgment is not
26satisfied. If damages are recovered against the levying officer, they
27shall be applied to the judgment to the extent the judgment is not
28satisfied.
29(d) For the purposes of subdivision (c), the purchaser of the
30property at the sale is not a successor in interest.
31(e) This section does not affect, limit, or eliminate a judgment
32debtor’s equitable right of redemption.
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