California Codes, Code of Civil Procedure - CCP, Part 2 — Of Civil Actions, Title 14 — Of Miscellaneous Provisions, Chapter 2 — Bonds and Undertakings, Article 15 — Enforcement Lien, Section 996.560

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:

(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.

Notes

Requires a purchaser under a pre-certificate real-property sale agreement, when the price becomes due after certificate filing and specific performance is otherwise available, to pay the due price to the State Treasurer. Allows specific performance after payment and gives the purchaser property free of the lien, while the Treasurer-held payment remains subject to that lien pending proceedings.

Use as reference

Lexinter.net | California Code, Code of Civil Procedure - CCP § 996.560 | https://laws.lexinter.net/codes/california/code-of-civil-procedure/part-2/title-14/chapter-2/article-15/section-996-560

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