The proceeds of sale for any property sold shall be applied in the following order:
§ 873.820.Order of Application of Proceeds
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 873.820 sets the payment order for sale proceeds, first the expenses of sale, then the other costs of the partition action, then liens on the property in order of priority, and finally the remaining balance distributed among the parties according to their court-determined shares.
Full Text of § 873.820
(a) Payment of the expenses of sale.
(b) Payment of the other costs of partition in whole or in part or to secure any cost of partition later allowed.
(c) Payment of any liens on the property in their order of priority except liens which under the terms of sale are to remain on the property.
(d) Distribution of the residue among the parties in proportion to their shares as determined by the court.
Plain-English Summary
This is the priority waterfall that determines how much a co-owner walks away with after a partition sale. The proceeds of sale are applied in a fixed order: first, payment of the expenses of sale; second, payment of the other costs of partition, whether in whole or in part, or to secure any cost of partition later allowed.
Third in line are liens on the property, paid in their order of priority, with one important exception — liens which under the terms of sale are to remain on the property aren't paid out of the proceeds at all, since those liens continue to run with the property itself rather than being satisfied here. That carve-out connects to § 873.630's authority to approve or prescribe security terms on a credit sale.
Only after expenses, costs, and liens are handled does subdivision (d) reach the residue, distributed among the parties in proportion to the shares the court has determined. This is the section that ultimately answers how much each co-owner receives once a partition sale closes.
Frequently Asked Questions
In what order are partition sale proceeds paid out?
First the expenses of the sale, then the other costs of the partition action, then liens on the property by priority, and finally the remaining balance to the parties according to their shares.
What if a lien is supposed to stay on the property instead of being paid off from proceeds?
Section 873.820(c) excludes liens that the terms of sale leave on the property from this payout order.
How is the residue divided among the co-owners?
In proportion to the shares the court has determined for each party.
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: order of proceeds distribution partition sale californiapartition sale proceeds priority