DIVISION 3. OBLIGATIONS 1427-3273.91›PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS 1738-3273.91›TITLE 14. LIEN 2872-3081›CHAPTER 2c. Real Property Sales Contracts 2985-2985.6

§ 2985.4

California Civil Code · 2026-09 edition · updated 2026-10-03 · California

Every seller of improved or unimproved real property under a real property sales contract who receives pro rata payments for insurance and taxes shall hold these amounts in trust for the purpose designated. These amounts shall not be disbursed for any other purpose without the consent of the payor and any person or corporation holding an encumbrance on the property.

This section shall not apply to a state- or federal-supervised assignee of a seller who as agent for the seller receives and disburses payments.

(Added by Stats. 1963, Ch. 560.)

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California Civil Code

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