A California homeowner records a declaration of homestead on January 10. On February 15, a creditor records an abstract of judgment against the homeowner. The homeowner's equity in the property is $250,000, and the California homestead exemption is $300,000. Can the creditor force a sale of the property?
Correct Answer
D) No, because the homeowner's equity ($250,000) does not exceed the homestead exemption ($300,000)
Under California CCP §704.800, a forced sale of homesteaded property cannot proceed unless the property's equity exceeds the homestead exemption amount plus any senior liens. Here, the homeowner's equity of $250,000 is less than the $300,000 homestead exemption, so there would not be enough surplus after protecting the exemption amount to pay the creditor. The court will not order a sale when it would not generate enough proceeds to satisfy the exemption and produce a surplus for the creditor.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Ownership Land Use Controls Question
Background Knowledge for Property Ownership Land Use Controls
Real World Application in Property Ownership Land Use Controls
Common Mistakes to Avoid on Property Ownership Land Use Controls Questions
Related Topics & Key Terms
Key Terms:
More Property Ownership Land Use Controls Questions
The highest form of property ownership in the United States is:
Which of these is a direct building cost?
Fee simple is all of the following EXCEPT
A man dies testate, leaving a wife and minor son. He leaves all of his property to his son. His wife claims her elective share under the Uniform Probate Code. How will the man’s property be distributed?
The largest estate or ownership in real prop- erty is
- → In real estate, the term improvements most nearly means
- → To be valid, restrictions in a grant deed need to:
- → The placement of a house upon the lot is referred to as its:
- → Which exemplifies government's realty-related police power?
- → A deed restriction prohibits a subdivision from using a residential property as a business. A buyer interested in purchasing a property in the subdivision tells their broker they intend to use one room of their house as a dog grooming service. Can the buyer do so?
- → A property owner has been doing car repairs on their driveway in violation of the conditions, covenants and restrictions (CC&Rs) of their subdivision. The homeowners’ association (HOA) files a lawsuit and receives a court order requiring the owner to stop. The court order is called a(n):
- → An appropriation of land for some public use made by the owner and accepted for such use by or on behalf of the public, such as streets in a platted subdivision, is called
- → An example of a right, privilege, or improve- ment that belongs to and passes with a property is described as
- → Which type of easement is created by continuous and apparent use of another's property without permission?
- → The primary private land-use control is:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A California homeowner allows a neighbor to use their driveway for parking verbally, without any written agreement. Two years later, the homeowner decides to revoke the arrangement. Under California law, can the homeowner terminate this arrangement?
Next Question
Under California law, an easement may be terminated by all of the following methods EXCEPT: