The court shall order the proceeds of sale and any security therefor to be paid, transferred, deposited in court, placed in trust, or invested in State of California or United States government obligations or interest- bearing accounts in an institution whose accounts are insured by an agency of the federal government, to or for the benefit of the persons in interest entitled thereto, as may be appropriate or as specifically provided in this article.
§ 873.810.Generally
Title 10.5. Partition of Real and Personal Property · Chapter 6. Sale of the Property · Article 4. Disposition of Proceeds of Sale · Enacted 1976 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 873.810 requires the court to order the sale proceeds and any related security paid, transferred, deposited with the court, placed in trust, or invested in government obligations or federally insured interest-bearing accounts, for the benefit of the people entitled to them, as this article specifically directs or as the court finds appropriate.
Full Text of § 873.810
Plain-English Summary
This section opens the article governing how sale proceeds get handled and eventually distributed. The court orders the proceeds of sale, and any security for them, paid, transferred, deposited in court, placed in trust, or invested in State of California or United States government obligations or interest-bearing accounts at an institution insured by a federal agency.
All of these options serve the same underlying goal — keeping the funds safe, and often earning interest, for the benefit of the persons in interest entitled to them, while the case works out exactly who is entitled to how much.
What follows in this article fills in the details: § 873.820 sets the priority order for applying the proceeds, and later sections address the special situations of life tenants and unallocated shares.
Frequently Asked Questions
What can the court do with the proceeds of a partition sale?
Order them paid, transferred, deposited with the court, placed in trust, or invested in government obligations or federally insured interest-bearing accounts, for the benefit of those entitled to them.
Why would proceeds be invested rather than merely held?
To let the funds earn interest for the benefit of the parties while their entitlement to specific amounts is worked out.
What governs the order in which proceeds get paid out?
Section 873.820 sets the priority for applying the sale proceeds.
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: disposition of sale proceeds partition california