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 701.620 bars a sale unless the winning bid exceeds preferred labor claims, superior state tax liens, and any non-creditor purchaser's required deposit, plus any applicable proceeds exemption, and requires the officer to release the property if no bid clears that minimum.
(a)Property may not be sold unless the amount bid exceeds the total of the following amounts:
(1)The amount of all preferred labor claims that are required by Section 1206 to be satisfied from the proceeds.
(2)The amount of any state tax lien (as defined in Section 7162 of the Government Code) that is superior to the judgment creditor's lien.
(3)If the purchaser is not the judgment creditor, the amount of any deposit made pursuant to Section 720.260 with interest thereon at the rate on money judgments from the date of the deposit to the date of the sale.
(b)Property for which a proceeds exemption is provided by Section 704.010 (motor vehicle), 704.020 (household furnishings and other personal effects), or 704.060 (tools of trade), may not be sold unless the amount bid exceeds the sum of any amount under subdivision (a) and the amount of the proceeds exemption.
(c)If a minimum bid required for the sale of property pursuant to this section is not received, the levying officer shall promptly release the property.
Plain-English Summary
Selling property for less than the claims that would eat up the proceeds first serves no one, so § 701.620 sets a floor under every bid. The winning bid has to exceed the total of preferred labor claims required to be satisfied under § 1206, any state tax lien superior to the judgment creditor's own lien, and, if the purchaser isn't the judgment creditor, any deposit made under § 720.260 plus interest at the judgment rate from the deposit date to the sale date.
For property carrying a proceeds exemption — a motor vehicle under § 704.010, household furnishings and personal effects under § 704.020, or tools of the trade under § 704.060 — the bid has to clear that same floor plus the exemption amount on top.
If no bid reaches the required minimum, the officer doesn't sell at a discount; the property is released back promptly under § 701.620(c).
Frequently Asked Questions
What must a winning bid exceed before property can be sold?
Preferred labor claims under § 1206, any superior state tax lien, and, if the purchaser isn't the judgment creditor, any § 720.260 deposit with interest.
Does an exempt-property bid need to clear a higher floor?
Yes, property with a proceeds exemption under § 704.010, § 704.020, or § 704.060 also has to clear the exemption amount on top of the other minimums.
What happens if no bid meets the required minimum?
The levying officer promptly releases the property rather than selling it below that floor.
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:minimum bid execution sale california