(a) Except as provided in subdivision (b), the judgment creditor is entitled to recover reasonable costs incurred in a proceeding under this article.
§ 704.840.Recovery of Costs
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 704.840 lets a judgment creditor recover reasonable costs incurred in a homestead sale proceeding, except when no bid exceeds the exemption amount plus liens and encumbrances, in which case the creditor cannot recover those proceeding costs or the costs of the sale.
Full Text of § 704.840
(b) 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, the judgment creditor is not entitled to recover costs incurred in a proceeding under this article or costs of sale.
Plain-English Summary
Pursuing a court order to sell someone's home costs money, and this section decides who absorbs that cost. As a general rule, the judgment creditor can recover reasonable costs incurred in a proceeding under this article.
That right disappears in one specific circumstance: when no bid at the sale exceeds the homestead exemption amount plus what's needed to satisfy all liens and encumbrances on the property — the same situation § 704.800 addresses by blocking the sale and releasing the home. In that scenario, the creditor cannot recover either the costs of the proceeding or the costs of the sale itself.
The effect lines up with § 704.800's purpose: a creditor who pushes for a sale that turns out to yield nothing beyond the protected exemption and existing liens doesn't get to shift the expense of that failed effort onto the debtor.
Frequently Asked Questions
Can a creditor recover costs from bringing a home-sale proceeding?
Generally yes, § 704.840(a) allows recovery of reasonable costs incurred in the proceeding.
When does the creditor lose the right to recover those costs?
When no bid at the sale exceeds the homestead exemption amount plus what's needed to satisfy all liens and encumbrances — the same circumstance in which § 704.800 blocks the sale entirely.
Does that cost bar include the costs of the sale itself?
Yes, subdivision (b) bars recovery of both the proceeding costs and the costs of sale in that situation.
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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