§2001 Sale of realty generally

Summary

Real property sold under a federal court order must be sold at a public auction. The judge will decide whether to sell the property all at once or in parts. The sale usually happens at the courthouse in the county, parish, or city where most of the property lies, or on the land itself. If a receiver (a person the court appoints to manage property) has the land, the sale usually happens in the district where that receiver was first named, unless the judge says to sell in another district. A judge can allow a private sale after a hearing with notice to interested people. Before approving a private sale, the judge must hire three unbiased appraisers (or several groups of three for different types or areas of property) to give values. A private sale cannot be approved for less than two-thirds of the appraised value. The sale terms must be published in a general newspaper at least 10 days before the judge confirms the sale. If a real, higher offer comes in that guarantees at least a 10 percent increase over the private sale price under rules set by the judge, the private sale cannot be approved. The rules do not apply to sales under Title 11 (bankruptcy) or to bank receivers or conservators appointed by the Comptroller of the Currency.