Civil Code section 2985.4

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.

Source: Section 2985.4, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=2985.4. (updated Jan. 1, 1963; accessed Nov. 3, 2025).

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2985.1
2985.2
2985.3
2985.4
2985.5
2985.6
2985.51

Up to date

Verified:
Nov. 3, 2025

§ 2985.4's source at ca.gov

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Location: https://california.public.law/codes/civil_code_section_2985.4

Original Source: Section 2985.4, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=2985.4. (last accessed May 12, 2025).