(a) If the court orders a sale of property, the sale shall be an open-market sale unless the court finds that a sale by sealed bids or an auction would be more economically advantageous and in the best interest of the cotenants as a group.
§ 874.320.Court Ordered Sale of Property to Be an Open- Market Sale
Title 10.5. Partition of Real and Personal Property · Chapter 10. Partition of Real Property Act · Last amended 2023 · Last verified July 28, 2026
In one sentenceSection 874.320 makes an open-market sale the default method once the court orders partition by sale, requiring a court-appointed licensed broker to market the property at no less than its determined value, and letting the court fall back on approving the best offer, redetermining value and continuing the listing, or ordering sealed bids or an auction if the broker can't land a qualifying offer.
Full Text of § 874.320
(b) If the court orders an open-market sale and the parties, not later than 10 days after the entry of the order, agree on a real estate broker licensed in the State of California to offer the property for sale, the court shall appoint the broker and establish a reasonable commission. If the parties do not agree on a broker, the court shall appoint a disinterested real estate broker licensed in the State of California to offer the property for sale and shall establish a reasonable commission. The broker shall offer the property for sale in a commercially reasonable manner at a price no lower than the determination of value and on the terms and conditions established by the court.
(c) If the broker appointed under subdivision (b) obtains within a reasonable time an offer to purchase the property for at least the determination of value, the following requirements apply:
(1) The broker shall comply with the reporting requirements in Section 874.321.
(2) The sale shall be completed in accordance with state law.
(d) If the broker appointed under subdivision (b) does not obtain an offer to purchase the property for at least the determination of value within a reasonable time, the court, after a hearing, may do any of the following:
(1) Approve the highest outstanding offer, if any.
(2) Redetermine the value of the property and order that the property continue to be offered for an additional time.
(3) Order that the property be sold by sealed bids or at an auction.
(f) If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled to a credit against the price in an amount equal to the purchaser's share of the proceeds.
Plain-English Summary
When a sale becomes the ordered outcome under § 874.318, this section controls how that sale runs. Subdivision (a) makes an open-market sale the default, giving way only if the court finds sealed bids or an auction would be more economically advantageous and in the cotenants' collective best interest.
For an open-market sale, the parties get first crack at agreeing on a licensed California real estate broker within ten days of the order; if they agree, the court appoints that broker and sets a reasonable commission. If they don't agree, the court appoints a disinterested broker itself. Either way, the broker has to market the property in a commercially reasonable manner, at a price no lower than the determined value, on the court's terms and conditions.
If the broker lands a qualifying offer within a reasonable time, the sale proceeds subject to the reporting requirement in § 874.321 and completes under ordinary state law. If no qualifying offer materializes within a reasonable time, subdivision (d) gives the court three options after a hearing: approve the best outstanding offer if there is one, redetermine the property's value and keep it listed longer, or switch to a sale by sealed bids or auction. An auction ordered this way follows the procedures of Chapter 6 (commencing with § 873.510). Subdivision (f) gives a purchasing cotenant a credit against the price for whatever share of the sale proceeds that cotenant would otherwise be entitled to receive.
Frequently Asked Questions
What's the default way a court-ordered sale happens under this chapter?
An open-market sale through a court-appointed real estate broker, unless the court finds sealed bids or an auction would work better for the cotenants as a group.
Can the property sell for less than its determined value?
No, the broker must market the property at a price no lower than the court's determination of value.
What happens if the broker can't find a qualifying buyer within a reasonable time?
The court can approve the best offer received, redetermine the value and keep the listing going, or switch to a sale by sealed bids or auction.
If a cotenant buys the property, does that cotenant still pay full price?
No, § 874.320(f) gives a purchasing cotenant a credit against the price equal to that cotenant's own share of the sale proceeds.
Amendment History
Amended by Stats 2022 ch 82 (AB 2245),s 9, eff. 1/1/2023. Added by Stats 2021 ch 119 (AB 633),s 2, eff. 1/1/2022.
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: open market sale partition real property act californiacourt ordered sale broker partition