(a) If no bid is received at a sale of a homestead pursuant to a court order for sale that exceeds the amount of the homestead exemption plus any additional amount necessary to satisfy all liens and encumbrances on the property, including but not limited to any attachment or judgment lien, the homestead shall not be sold and shall be released and is not thereafter subject to a court order for sale upon subsequent application by the same judgment creditor for a period of one year.
§ 704.800.Homestead Not Sold and Released
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 4. Homestead Exemption · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 704.800 blocks a homestead sale entirely if no bid exceeds the exemption amount plus liens and encumbrances, protecting the property from that creditor's renewed attempts for a year, and lets the court, if a bid reaches 90% or more of fair market value, approve that bid or order a new sale instead of the property going unsold.
Full Text of § 704.800
(b) If no bid is received at the sale of a homestead pursuant to a court order for sale that is 90 percent or more of the fair market value determined pursuant to Section 704.780, the homestead shall not be sold unless the court, upon motion of the judgment creditor, does one of the following:
(1) Grants permission to accept the highest bid that exceeds the amount of the minimum bid required by subdivision (a).
(2) Makes a new order for sale of the homestead.
Plain-English Summary
This is the rule that keeps a forced home sale from stripping a debtor of protected equity for nothing. If no bid at the sale exceeds the total of the homestead exemption amount plus whatever else is needed to pay off all liens and encumbrances — including any attachment or judgment lien — the sale doesn't happen. The home is released, and that same creditor can't bring another application for a court order for sale against it for a full year.
There's a narrower exception for near-miss bids. If no bid reaches that full threshold but a bid does come in at 90% or more of the fair market value the court determined under § 704.780, the sale still doesn't automatically go through — but the creditor can move the court to either accept that high bid despite it falling short of the full minimum, or order a new sale of the home.
The practical effect is that a creditor cannot force a sale that would wipe out the debtor's exempt equity and leave nothing for the debtor while barely denting the judgment. The minimum-bid rule protects the exemption's actual value, not just its label.
Frequently Asked Questions
What stops a home from being sold for less than the exemption amount?
Section 704.800 blocks the sale if no bid exceeds the homestead exemption plus enough to satisfy all liens and encumbrances on the property; the home is instead released.
What happens to the creditor after a blocked sale?
That same judgment creditor cannot apply for another court order for sale of the property for one year.
Is there any flexibility if a bid comes close but doesn't clear the full minimum?
Yes. If a bid reaches 90% or more of the court-determined fair market value, the creditor can ask the court to accept that bid anyway or to order a new sale.
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
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