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State Stops House Sale

Can a state intervene in the sale of my home and hold the funds?

Hi If I sell my home in California does the state have the power to intervene into the sale and hold the funds for a period of time?

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Bill's Answer
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Highlights

  • State governments have little involvement in property sales.
  • An injunction may delay a property sale under extraordinary circumstances.
  • Consult with an attorney who will advise you of your rights.

It would take extraordinary circumstances for any state, California or otherwise, to act in the manner you describe.

In most states, the state government has little involvement with the sale and purchase of real property. The local county is involved only to the extent that it receives notice from the title company to record the sale and the name of the new owner. However, to my knowledge no state operates a registry or approval process that would intervene in the sale of real or personal property.

With that said, I can imagine situations where a judge places a temporary or permanent injunction on the sale of a property while a controversy related to the ownership of the property is in dispute. Under these circumstances, the state would have the power to block the sale of the property or control the terms and conditions of the sale closely. A similar circumstance would be where the property owner had filed for Chapter 7 or Chapter 13 bankruptcy, and the property was an included asset. However, Bankruptcy courts are federal.

Unless your question is purely hypothetical, I recommend you consult with an attorney in your state regarding your question. He or she will be able to ask you probing questions about your circumstances and offer you precise advice in accordance with your state's laws.

I hope this information helps you Find. Learn & Save.

Best,

Bill

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