Title 10.5. Partition of Real and Personal Property · Chapter 6. Sale of the Property · Article 3. Consummation of Sale · Enacted 1976 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 873.740 lets the court, when a responsible bidder shows up at the confirmation hearing with a written offer that beats the sale price by the statutory ten-percent-then-five-percent margin, either order a new sale or accept the higher offer on the spot and confirm the sale to that new bidder, generally measuring the increase on a gross basis unless arranged otherwise in advance.
(a)If at the hearing under Section 873.730 a responsible bidder makes a written increased offer that exceeds the sale price by at least 10 percent on the first ten thousand dollars ($10,000) and 5 percent on the amount in excess thereof, the court in its discretion may do either of the following:
(1)Vacate the sale and direct that a new sale be made.
(2)Vacate the sale, accept the increased offer, and confirm the sale to the offerer.
(b)Except as provided in subdivision (c), the amount by which an increased offer exceeds the sale price is determined on the basis of the gross amount of the increased offer including any commission on the increased offer to which an agent may be entitled.
(c)Where in advance of sale the court has so ordered or the parties have so agreed, if an increased offer is made by a party to the action who is not represented by an agent, the amount by which an increased offer of a nonparty exceeds the sale price is determined on the basis of the net amount of the increased offer excluding any commission on the increased offer to which an agent may be entitled.
Plain-English Summary
This section addresses what happens when a better offer surfaces right at the confirmation hearing. If a responsible bidder makes a written increased offer that exceeds the sale price by the same margin § 873.730(c)(3) uses — at least 10 percent on the first ten thousand dollars and 5 percent on the amount above that — the court can respond in one of two ways: vacate the sale and direct a new sale, or vacate the sale, accept the increased offer, and confirm the sale to the new offerer directly.
Giving the court both options matters practically. Confirming directly to the higher bidder avoids the delay and expense of running an entirely new sale process when the improved offer is already substantial and reliable.
Subdivisions (b) and (c) work out how the increase is measured. The default is a gross-basis comparison, including any commission owed on the increased offer. But where the court ordered in advance or the parties agreed, and the increased offer comes from a party to the action who isn't represented by an agent, the increase for that nonparty offer is measured net of any commission instead — protecting a party bidder from having a phantom commission subtracted from an improvement when no agent is involved in that offer at all.
Frequently Asked Questions
What can happen if someone makes a higher written offer at the confirmation hearing?
If it beats the original sale price by the statutory margin, the court can either order a new sale or accept the increased offer and confirm the sale to that bidder.
What increase is required to trigger this option?
The same formula used in § 873.730(c)(3): at least 10 percent on the first $10,000 of the sale price and 5 percent on the amount above that.
Is the increase measured before or after any agent's commission?
Generally on a gross basis including any commission owed on the increased offer, unless the court ordered otherwise in advance or the parties agreed, in which case a party's offer unrepresented by an agent is measured net of commission.
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:overbid at confirmation hearing partition californiaincreased offer partition sale