Judge Christopher K. Lui, Case Number: 23STCV10909, Date: 2025-03-19 Tentative Ruling

Judge: Christopher K. Lui, Case: 23STCV10909, Date: 2025-03-19 Tentative Ruling

Case Number: 23STCV10909 Hearing Date: March 19, 2025 Dept: 76

This is a partition action.

The Court-appointed partition referee seeks conformation of a proposed sale of the subject real property.

TENTATIVE RULING

Subject to a bidder at the hearing submitting a written increased offer that exceeds the proposed sale price by 10%, the tentative ruling is to GRANT Partition Referee Matthew L. Taylor’s motion to approve the sale.

Motion For Confirmation of Sale of Real Property

Discussion

The Court-appointed partition referee seeks conformation of a proposed sale of the subject real property. In connection with a Stipulated Interlocutory Judgment for Partition by Sale, the referee was appointed on September 11, 2023, to sell the real property located at 7805 Whitsett Avenue, unincorporated Los Angeles County, California (the "Subject Property") subject to order of confirmation issued by the Court. Following a series of bids and counter-bids between third-parties, the highest pending written offer is for $ 556,000 from Antonio Mora and Victor Mora. The Referee now seeks confirmation of that sale.

The referee argues that the court should confirm this sale for the following reasons:

1. It is the highest pending offer following legally-required and industry-standard advertising.

2. The property is being sold in "as is" condition.

3. This offer is made with a full contingency removal already in place.

4. This is an arms-length transaction. Under Civ. Proc. Code section 873.690, the only ineligible purchasers are the referee, an attorney of a party, or a guardian or conservator of a party.

5. This property is a duplex. The rear unit is occupied by Defendant Martha Vigil. Her unit will be delivered vacant and empty to the buyer. The front unit, though, will be delivered with a non-cooperative tenant in place. The tenant in the front unit has never paid rent to the Referee, has not communicated with the Referee, and has not allowed the prospective buyers to inspect thc interior of the front unit. The presence of this non-cooperative front tenant reduces the potential value of the property because the buyer will be taking on thc responsibility of dealing with this tenant.

Cal Civ. Pro. § 873.710 provides:

(a) Upon making a sale of property, the referee shall report the sale to the court.

(b) The referee’s report shall contain, in addition to such other information as may be appropriate, all of the following information:

(1) A description of the property sold to each purchaser.

Thc proposed sale involves the entirety of the Subject Property.

(2) The name of the purchaser.

Antonio Mora and Victor Mora, or assignees.

(3) The sale price.

$ 556,000

(4) The terms and conditions of the sale and the security, if any, taken.

The Proposed Sale is a standard residential sale on California Association of Realtors form 23 contract titled "CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS" with addendum relating to sale by court-appointed Referee. The full amount of the purchase price to be deposited into escrow or paid to Referee on or before close of escrow. A copy of the purchase contract is attached hereto as Exhibit 1.

(5) Any amounts payable to lienholders.

The preliminary title report on the Subject Property discloses the following deeds of trust or liens that will need to bc paid from the sale proceeds:

a. Deed of Trust Dated 6/30/2006:

Beneficiary: The Community Development Commission of the County of Los Angeles Trustee: GT Service Corp., a California Corporation

Trustor: Eustolia J. Medina

Initial Amount; $62,450.00 (this amount is expected to have changed)

Recording: 7/10/2006 as Instrument No. 2006-1512778 of Official Records.

A document disclosing an additional advance in the amount of $ 5,600, recorded October 13, 2006 as Instrument No. 06-2280508 of Official Records.

b. Deed of Trust dated 3/29/2023:

Beneficiary: Talkov Law Corp., a California Professional Corporation

Trustee: Talkov Law Corp., a California Professional Corporation

Trustor: Margarita Mcneses

Initial Amount: Amount Unknown

Recording: 4/20/2023 as Instrument No. 2023-255114 of Official Records

c. A lien for unsecured property taxes, evidenced by a certificate recorded by the tax collector of Los Angeles County, recorded August 8, 2024, as Instrument No. 24-531275 of Official Records.

Debtor: Martha Tr Vigil

Year & No: 23/49962977

Amount: $ 5,639.30 and any other amounts due thereunder. This amount is expected to have changed.

d. A lien for unsecured taxes, evidence by a certificate recorded by the tax collector of Los Angeles County, recorded August 8, 2024 as Instrument No, 24-531279 of Official Records.

Debtor: Marth Tr Vigil

Year rk No: 23/49962978

Amount: $4,797.17 and any other amounts due thereunder. This amount is expected to have changed.

A copy of the Preliminary Title Report is attached hereto as Exhibit 3.

As part of the standard sale transaction, the title insurance company will request that a Statement of Information form be completed for or on behalf of each of the owners, The title company will then use that information to search for involuntary liens (such as judgments, tax liens, and the

like) that might not be apparent based on the address of the property. Liens disclosed through that process will be paid as part of the property sale escrow from the gross sale proceeds.

(6) A statement as to contractual or other arrangements or conditions as to agents’ commissions.

$27,800. This is 5% of the sale price, to be divided between buyer's agent/broker and seller's agent/broker. The real estate commissions will be paid to the following parties:

$ 8,340 (1.50%) to Agent Hilda Hernandez of listing brokerage Berkshire Hathaway HomeServices California Properties

$ 8,340 (1.50%) Agent Tony Haspel of listing brokerage Compass Realty

$ 11,120 (2%) to Agent Debra Guerrero of buyer's brokerage Century 21 Allstars

(7) Any determination and recommendation as to opening and closing public and private ways, roads, streets, and easements.

Not applicable in this case.

(8) Other material facts relevant to the sale and the confirmation proceeding.

Not applicable in this case.

(Civ. Proc. Code, § 873.710.)

(a) At the hearing, the court shall examine the report and witnesses in relation to the report.

(b) The court may confirm the sale notwithstanding a variance from the prescribed terms of sale if to do so will be beneficial to the parties and will not result in substantial prejudice to persons interested in the sale.

(1) The proceedings were unfair or notice of sale was not properly given. If there is no finding at the hearing of unfairness or improper notice, the sale may thereafter not be attacked on such grounds.

(2) The sale price is disproportionate to the value of the property.

(3) It appears that a new sale will yield a sum that exceeds the sale price by at least 10 percent on the first ten thousand dollars ($10,000) and 5 percent on the amount in excess thereof, determined after a reasonable allowance for the expenses of a new sale.

(Civ. Proc. Code, § 873.730.)

The Court does not find the proceedings were unfair or notice of the sale was not properly given. The Court does not find that sale price to be disproportionate to the value of the property, especially given that the front tenant has been uncooperative, and the new owners will be left to deal with that tenant, which lowers the desirability of the property. (See Declaration of Matthew L. Taylor, ¶ 9.)

(a) If at the hearing under Section 873.730 a responsible bidder makes a written increased offer that exceeds the sale price by at least 10 percent on the first ten thousand dollars ($10,000) and 5 percent on the amount in excess thereof, the court in its discretion may do either of the following:

(1) Vacate the sale and direct that a new sale be made.

(2) Vacate the sale, accept the increased offer, and confirm the sale to the offerer.

(b) Except as provided in subdivision (c), the amount by which an increased offer exceeds the sale price is determined on the basis of the gross amount of the increased offer including any commission on the increased offer to which an agent may be entitled.

(c) Where in advance of sale the court has so ordered or the parties have so agreed, if an increased offer is made by a party to the action who is not represented by an agent, the amount by which an increased offer of a nonparty exceeds the sale price is determined on the basis of the net amount of the increased offer excluding any commission on the increased offer to which an agent may be entitled.

(Civ. Proc. Code, § 873.740.)