Superior Court of California 

County of Los Angeles – West District  

Beverly Hills Courthouse / Department 205 

 

 

BACKGROUND 

This hearing is on the referee’s motion for order confirming the sale of real property located at 3393-3395 Livonia Avenue, Los Angeles, California 90034 (the “Property”) to the Lisa Anne Schultz Family Trust or to the highest bidder.     

On June 30, 2023, this Court appointed a referee to partition by sale the Property, which is a two-story duplex located in an industrial area, in need of significant repairs.  (Singer Decl., ¶ 2, Exh. 1.)  Paragraph 5 of the Appointing Order directs the Referee to file a report with his recommended method of sale for the Property, and paragraph 12 of the Appointing Order directs the Referee to seek Court confirmation of the sale and give notice of the sale. (Id.)  

On February 21, 2024, the Referee filed the report with his recommended method of sale for the Property, stating that the Property would be listed for sale at $1,650,000, with a five percent (5%) broker commission.  There were no objections to the report.  (Id. ¶ 3.)   

On or about April 12, 2024, after a Sheriff’s lockout was conducted to remove Defendant Matthew DeAnda from the Property, and after commencing substantial cleanup efforts, the Property was listed for sale. (Id.)  After receiving no offers, the Referee reduced the listing price to $1,450,000 in June 2024, then to $1,399,000 in July 2024, and then to $1,250,000 in August 2024. (Id.)  

After reviewing and countering four purchase offers for the Property, the Referee executed purchase documents to sell the Property to the Lisa Anne Schultz Family Trust (the “Buyer”) for $850,000 (the “Purchase Agreement”). (Id. ¶ 4, Exh. 2.)  The broker actively marketed the Property for months, and while multiple other offerors have opened escrow and then backed out of a potential sale, Buyer is the only offeror who waived contingencies and is ready to close the sale. (Id.)  

The terms of the proposed sale of the Property are detailed in the Purchase Agreement, and terms are summarized in the Referee’s declaration.  (Id. ¶ 5.)  Now, all that remains is for the Court to conduct (or to supervise the Referee as he conducts) the Confirmation and Overbid Hearing (“Confirmation Hearing”) to confirm the sale of the Property to Buyer or to the highest bidder. The Referee has prepared his proposed “Rules for Confirmation and Overbid Hearing” and recommends that interested overbidders prequalify at least two (2) days before the Confirmation Hearing by signing the overbid rules, providing proof of funds, and tendering a deposit of $25,500. (Id. ¶ 6, Exh. 3.)   

The Referee will employ the following sale procedures prior to the public Confirmation Hearing on January 31, 2025: The Referee shall comply with all applicable procedures outlined in Code of Civ. Proc. Sections 873.640 and 701.540. The Referee shall cause a notice of the sale of the Property complying with Code Civ. Proc. Section 701.540, subdivision (a), and in substantially the same form as the “PUBLIC NOTICE OF SALE” attached as Exhibit 4 to the Singer Declaration to be: (a) posted at the Property; (b) posted at a public place in Los Angeles County; (c) posted in all online listings; and (d) published in a newspaper of general circulation in Los Angeles County at least three times prior to the hearing of this Motion, with the first publication to occur 20 days before the hearing.  

The Referee shall have served this Notice of Motion and Motion and the “PUBLIC NOTICE OF SALE” on all interested parties and attorneys of record in this case, as well as on all attorneys of record for the holders of any liens, encumbrances, or interests at least 20 calendar days before the date of the Confirmation Hearing. The Referee shall file a declaration prior to the Confirmation Hearing to demonstrate compliance with Code Civ. Proc. Section 701.540. (Singer Dec., ¶ 8.)  

The Referee reserved Friday, January 31, 2025, at 8:30 a.m. in Department 205 of the above-referenced Court as the date, time, and place for public overbids for the Property to be made before the Court, so that the Court may immediately evaluate and determine the best and highest public overbid (if any) made for the Property, and so that the Court may enter an order confirming the sale. (Id. ¶ 9.) 

LEGAL STANDARD 

Partition is the procedure for segregating and terminating common interests in the same parcel of property.  (Summers v. Superior Court¿(2018) 24 Cal.App.5th 138, 142.)  The manner of partition may be in kind — i.e. physical division of the property — or by sale.  (Id.)  If the parties so stipulate, the court shall order a partition by sale with the proceeds divided among the parties in accordance with their interests in the property as determined in an interlocutory judgment.  (Code Civ. Proc., §872.820(a).) 

The court in its discretion may appoint a referee for sale.  (Code Civ. Proc., §873.020.)  The referee may perform any acts necessary to exercise the authority conferred by order of the court.  (Code Civ. Proc., §873.060.)  In selling the property, the referee must post a notice of sale that includes a description of the property, the time and place of sale, and a statement of the principal terms of the sale.  (Code Civ. Proc., §§ 873.640(a), 873.650(a).)  Upon making a sale of the property, the referee shall report the sale to the court.  (Code Civ. Proc., §873.710(a).)  The referee’s report shall contain, in addition to such other information as may be appropriate, (1) a description of the property sold to each purchaser, (2) the name of the purchaser, (3) the sale price, and (4) the terms and conditions of the sale and security, if any, taken.  (Code Civ. Proc., §873.710(b).)  The referee may then moves the court to confirm or set aside the sale.  (Code Civ. Proc., §873.720(a).) 

At a hearing to confirm the sale, the court shall examine the referee’s report and witnesses in relation to the report.  (Code Civ. Proc., §873.730(a).)  The court may confirm the sale notwithstanding a variance from the prescribed terms of the sale if to do so will be beneficial to the parties and will not result in substantial prejudice to persons interested in the sale.  (Code Civ. Proc., §873.730(b).)  If at the hearing, a responsible bidder makes a written increased offer that exceeds the sale price by at least 10 percent on the first ten thousand dollars and 5 percent on the amount in excess thereof, the court in its discretion may (1) vacate the sale and direct that a new sale be made or (2) vacate the sale, accept the increased offer, and confirm the sale to the offeror.  (Code Civ. Proc., §873.740(a).) 

Upon confirmation of a sale, the court shall order the referee to execute a conveyance or other instrument of transfer, to collect the proceeds, take security, and perform other acts required to consummate the sale.  (Code Civ. Proc., §873.750(a).) 

DISCUSSION 

The Court has ordered the Referee to partition by sale the Property, and after extensively marketing the Property and engaging with multiple potential buyers, the Referee executed a purchase contract with Buyer for $850,000.  The Court will supervise the Referee as he conducts an overbid hearing, to allow any interested overbidders to appear before the Court and make a higher offer for the Property.  Should no overbidders prequalify or appear, then the Court shall issue an order confirming the sale to Buyer.  

CONCLUSION 

Based on the foregoing, the Court GRANTS the Referee’s motion.  

 

IT IS SO ORDERED. 

 

DATED: January 31, 2025 ___________________________ 

Edward B. Moreton, Jr. 

Judge of the Superior Court