If an agreement to sell real property affected by the lien created by the filing of a certificate was made before the filing of the certificate and the purchase price under the agreement was not due until after the filing of the certificate, and the purchaser is otherwise entitled to specific performance of the agreement:
§ 996.560.Purchaser Entitled to Specific Performance of Agreement to Sell Real Property
Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 15. Enforcement Lien · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 996.560 protects a purchaser who agreed to buy real property before a § 996.530 certificate was filed and whose purchase price wasn't due until afterward, letting that purchaser pay the price to the State Treasurer instead of the seller and take the property free of the lien, while the Treasurer holds the funds subject to the lien pending the underlying proceedings.
Full Text of § 996.560
(a) The court in an action to compel specific performance of the agreement shall order the purchaser to pay the purchase price, or so much of the purchase price as may be due, to the State Treasurer, and to take the State Treasurer's receipt for payment.
(b) Upon payment, the purchaser is entitled to enforcement of specific performance of the agreement. The purchaser takes the real property free from the lien created by the filing of the certificate.
(c) The State Treasurer shall hold the payment pending the proceedings referred to in the certificate. The payment is subject to the lien created by the filing of the certificate.
Plain-English Summary
A pending sale that predates the lien creates a real conflict: the buyer contracted for clean title, but the seller's property is now encumbered by a certificate filed under § 996.530. This section resolves that conflict in the purchaser's favor, but only under specific conditions, the sale agreement has to predate the certificate's filing, the purchase price has to have come due only after the filing, and the purchaser has to be otherwise entitled to specific performance of the agreement.
When those conditions are met, subdivision (a) has the court, in an action to compel specific performance, order the purchaser to pay the purchase price, or whatever portion is due, to the State Treasurer instead of the seller, taking the Treasurer's receipt as proof of payment.
Subdivision (b) delivers on the bargain: once that payment is made, the purchaser can enforce specific performance and takes the real property free of the lien created by the certificate's filing. Subdivision (c) explains what happens to the money in the meantime, the State Treasurer holds it pending the proceedings referred to in the certificate, and the lien attaches to that held payment instead of to the property.
Frequently Asked Questions
What conditions must be met for this section to protect a purchaser?
The sale agreement must predate the certificate's filing, the purchase price must not have been due until after filing, and the purchaser must be otherwise entitled to specific performance.
Who does the purchaser pay instead of the seller?
The State Treasurer, taking the Treasurer's receipt for payment.
Does the purchaser take the property subject to the lien?
No. Once payment is made to the Treasurer, the purchaser takes the property free of the lien.
What happens to the money the purchaser pays to the Treasurer?
The Treasurer holds it pending the proceedings referred to in the certificate, and the lien attaches to that payment instead.
Amendment History
Added by Stats. 1982, Ch. 998, Sec. 1.
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: purchaser specific performance bond lien californiastate treasurer holds payment lien real property