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§ 697.920.Transfer Or Encumbrance of Property Subject to Lien

Title 9. Enforcement of Judgments · Division 2 · Chapter 2. Liens · Article 5. Other Liens Created by Enforcement Process · Last amended 2001 · Last verified July 28, 2026

In one sentenceSection 697.920 keeps the examination, creditor's-suit, and charging-order liens described in Section 697.910 attached to property after it's transferred or encumbered, unless the recipient qualifies as one of the protected transferees listed in Section 697.740.

Full Text of § 697.920

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Except as provided in Section 9617 of the Commercial Code and in Section 701.630, a lien described in Section 697.910 continues on property subject to the lien, notwithstanding the transfer or encumbrance of the property subject to the lien, unless the transfer or encumbrance is made to a person listed in Section 697.740.

Plain-English Summary

Having identified which liens Article 5 covers, this section supplies the operative rule for all of them at once: a lien created by an examination proceeding, creditor's suit, or charging order continues to follow the property it covers even after that property is transferred or encumbered.

The exception is borrowed directly from Article 4 rather than restated from scratch — a transfer or encumbrance to any person listed in § 697.740 defeats the lien the same way it would defeat an execution lien. Commercial Code § 9617 and § 701.630 supply the only other exceptions. Tying this rule back to § 697.740 keeps the protections for good-faith purchasers and ordinary-course buyers consistent across every kind of lien the enforcement-of-judgment law creates.

Frequently Asked Questions

Do the liens described in § 697.910 survive a transfer of the underlying property?

Generally yes, under § 697.920, unless the recipient is one of the protected transferees listed in § 697.740.

Why does this section point back to § 697.740 instead of listing its own exceptions?

To keep the same protections for good-faith purchasers and ordinary-course buyers consistent across the execution lien and these other enforcement-process liens.

Are there any other exceptions besides the § 697.740 list?

Yes, the exceptions provided in Commercial Code § 9617 and in § 701.630 also apply.

Amendment History

EFFECTIVE 7/1/2001. Amended October 10, 1999 (Bill Number: SB 45) (Chapter 991).

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 28, 2026. · Official source
Also known as: transfer of property subject to charging order liencreditor's suit lien survives transfer california