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Proceeds from the sale of real property are collected through liens filed against parents who owe past due child support. So, if there was a child support lien on the property at the time it was sold, then the issue of reinvesting the proceeds into another home would not arise.
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Thank you for the clarification. Under most circumstances, equity in a parent’s residence is not considered income. It will take me some additional time to locate the CA cases on this but if I recall correctly decisions on this issue came out in 2005-07 time frame. I will send an offer of additional service to you for your consideration just in case you decide you want me to find that case law.