Wells Fargo Bank, N.A. v. 6354 Figarden General Partnership

This appeal presents issues of statutory construction involving Code of Civil Procedure section 729.060 and the calculation of the redemption price for real property sold by judicial foreclosure. In general terms, the redemption price includes the amount paid by the purchaser at the foreclosure sale (1) adjusted upward for certain property-related expenses incurred by the purchaser and (2) adjusted downward or offset for certain benefits the purchaser obtained from the property.

The questions of statutory construction essential to the resolution of this appeal involve subdivision (c) of section 729.060, which states: “Rents and profits from the property paid to the purchaser or the value of the use and occupation of the property to the purchaser may be offset against the amounts [included in the redemption price pursuant to] subdivision (b).”

First, when the property subject to redemption contains multiple parcels, some vacant and unimproved and some improved with offices occupied by rent-paying tenants, is the sole measure of the offset “the value of the use and occupation of the property to the purchaser” for the entire property? We conclude it is not the sole measure…