California Probate Code 10361 – (a) If encumbered property is sold, the purchase money shall be …
(a) If encumbered property is sold, the purchase money shall be applied in the following order:
(1) Expenses of administration which are reasonably related to the administration of the property sold as provided in paragraph (1) of subdivision (a) of Section 11420.
Terms Used In California Probate Code 10361
- Amount secured by the lien: includes interest and any costs and charges secured by the lien. See California Probate Code 10360
- Encumbered property: means real or personal property that is subject to a lien for a secured debt which is a valid claim against the estate and which has been allowed or approved. See California Probate Code 10360
- Lien: A claim against real or personal property in satisfaction of a debt.
- Lien: means a mortgage, deed of trust, or other lien. See California Probate Code 10360
- Property: means anything that may be the subject of ownership and includes both real and personal property and any interest therein. See California Probate Code 62
(2) The payment of the expenses of the sale.
(3) The payment and satisfaction of the amount secured by the lien on the property sold if payment and satisfaction of the lien is required under the terms of the sale.
(4) Application in the course of administration.
(b) The application of the purchase money, after the payment of those expenses set forth in paragraphs (1) and (2) of subdivision (a), to the payment and satisfaction of the amount secured by the lien on the property sold shall be made without delay; and, subject to Section 10362, the property sold remains subject to the lien until the purchase money has been actually so applied.
(Amended by Stats. 1996, Ch. 862, Sec. 26. Effective January 1, 1997.)