(a) Except as otherwise provided in this section, the purchaser at a sale shall pay in cash or by certified check or cashier's check.
§ 701.590.Payment; Bid By Judgment Creditor; Election to Treat Sale As Credit Transaction
Title 9. Enforcement of Judgments · Division 2 · Chapter 3. Execution · Article 6. Sale and Collection · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 701.590 requires purchasers to pay cash, certified check, or cashier's check, lets the judgment creditor bid by crediting the judgment amount instead, and lets a bidder above $5,000 on real property or $2,500 on personal property elect to pay on a ten-day credit basis.
Full Text of § 701.590
(b) The judgment creditor may bid by giving the levying officer a written receipt crediting all or part of the amount required to satisfy the judgment, except that the levying officer's costs remaining unsatisfied and the amount of preferred labor claims, exempt proceeds, and any other claim that is required by statute to be satisfied, shall be paid in cash or by certified check or cashier's check.
(c) If the highest bid for an interest in real property sold exceeds five thousand dollars ($5,000), the highest bidder may elect to treat the sale as a credit transaction. A person who makes the election shall deposit at least five thousand dollars ($5,000) or 10 percent of the amount bid, whichever is greater, and within 10 days after the date of the sale shall pay the balance due plus costs accruing with regard to the property sold and interest accruing at the rate on money judgments on the balance of the amount bid from the date of sale until the date of payment.
(d) If the highest bid for an item, group, or lot of personal property sold exceeds two thousand five hundred dollars ($2,500), the highest bidder may elect to treat the sale as a credit transaction. A person who makes the election shall deposit at least two thousand five hundred dollars ($2,500) or 10 percent of the amount bid, whichever is greater, and within 10 days after the date of the sale shall pay the balance due plus costs accruing with regard to the property sold and interest accruing at the rate on money judgments on the balance of the amount bid from the date of sale until the date of payment.
(e) A person who makes the election under subdivision (c) or (d) is not entitled to possession of the property sold until the amount bid, plus accruing costs and interest, have been paid.
Plain-English Summary
Payment at an execution sale generally has to be in cash or its close equivalent — cash, a certified check, or a cashier's check. Section 701.590 gives the judgment creditor an alternative: bidding by handing the levying officer a written receipt crediting all or part of the amount still owed on the judgment, though the officer's unpaid costs, preferred labor claims, exempt proceeds, and any other statutorily required payment still have to be paid in cash or its equivalent.
Other bidders get a credit option too, above certain thresholds. On real property, a winning bid over $5,000 lets the bidder deposit at least $5,000 or 10 percent of the bid, whichever is more, then pay the balance plus accruing costs and interest within ten days. On personal property, the same option kicks in above a $2,500 bid, with a matching $2,500-or-10-percent deposit and the same ten-day window to pay the rest.
Whichever threshold applies, a bidder who elects the credit option doesn't get possession of the property until the full amount, plus accruing costs and interest, has been paid in full.
Frequently Asked Questions
How must a purchaser at an execution sale pay?
In cash, by certified check, or by cashier's check, except as this section otherwise allows.
Can the judgment creditor bid without paying cash?
Yes, by giving the levying officer a written receipt crediting the bid against the judgment, though certain costs, preferred labor claims, and exempt proceeds still have to be paid in cash.
What is the credit-transaction option for a real property bid over $5,000?
The bidder deposits at least $5,000 or 10 percent of the bid, whichever is greater, and pays the balance plus accruing costs and interest within ten days.
Does a personal property bid have the same option?
Yes, once the bid exceeds $2,500, with a matching $2,500-or-10-percent deposit and ten-day payment window.
When does a credit-transaction bidder get possession of the property?
Only after the full amount bid, plus accruing costs and interest, has been paid.
Amendment History
Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.
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: payment execution sale californiacredit bid judgment creditor california