Child Support and Real Estate: What Happens When the Obligor Sells Property

California Child Support Recovery System | Justice Foundation

When the paying parent owns real property and that property is sold, the sale represents a significant collection opportunity for unpaid child support arrears — but only if you’ve taken the steps necessary to attach your claim to the proceeds before the closing. Understanding how to position yourself to collect from a real estate transaction is an essential part of any arrears enforcement strategy for obligors with real property assets.

The Abstract of Judgment: Your Collection Mechanism

Recording an Abstract of Judgment with the County Recorder in the county where the property is located creates a judgment lien that attaches to the property. When the property is sold, the escrow company conducting the closing is required to identify and satisfy all liens against the property before distributing net proceeds to the seller. Your recorded judgment lien must be satisfied at closing — the obligor cannot simply walk away with the sale proceeds while your lien remains unsatisfied.

How to Find Out About an Impending Sale

Real estate sales don’t happen overnight. The listing, marketing, and closing process typically takes 30 to 90 days or more. Monitor the real estate market for properties owned by the obligor — free online services including Zillow, Redfin, and county assessor websites allow you to search for properties by owner name in many counties. If you discover an impending sale, confirm your abstract of judgment is recorded in that county immediately — lien recording is effective from the date of recording, so early recording protects you even if you discover the sale is underway.

Notifying the Escrow Company

If you discover an impending sale after you have a recorded lien, contact the escrow company handling the transaction and provide proof of your recorded lien. Escrow officers have an obligation to identify and satisfy liens against property. Your recorded abstract entitles you to payment from sale proceeds before the seller receives their net equity above the homestead exemption and any senior liens. The Justice Foundation kit includes abstract recording instructions and escrow notification procedures for situations where a sale is imminent.