A contract for the services of an attorney, surveyor, auctioneer, or other third person may provide for the accrual of interest at a rate not in excess of the legal rate for amounts due under the contract that are not paid within three months after the time they become due and payable.
§ 873.150.Contract Providing For Accrual of Interest
Title 10.5. Partition of Real and Personal Property · Chapter 4. Referees · Article 2. Contracts of Referee · Enacted 1976 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 873.150 lets a contract for the services of an attorney, surveyor, auctioneer, or other third person provide for interest, at a rate no higher than the legal rate, on amounts that remain unpaid more than three months after they become due.
Full Text of § 873.150
Plain-English Summary
Getting paid promptly can be a real concern for the professionals a referee retains, since compensation often has to wait until funds are available from the litigation or the sale proceeds. This section addresses that concern directly: a contract for the services of an attorney, surveyor, auctioneer, or other third person may provide for interest on amounts that go unpaid.
Two limits keep the provision modest. The interest rate can't exceed the legal rate, and it can only begin accruing on amounts that haven't been paid within three months after they became due — a grace period before any interest starts running.
This interest exposure attaches to the contract and the compensation it covers, not to the referee personally. Section 873.160 keeps the referee free from personal liability on contracts made in this capacity, absent an express written assumption of that liability.
Frequently Asked Questions
Can a referee's contract with an attorney or surveyor charge interest on late payments?
Yes, up to the legal rate.
When does that interest start accruing?
Only on amounts that remain unpaid more than three months after they became due.
Is the referee personally responsible for paying this interest?
No, unless the referee has expressly assumed that liability in writing, under § 873.160.
Amendment History
Added by Stats. 1976, Ch. 73.
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: interest referee contract partition california