§2001 Sale of Realty Generally

Summary

When a U.S. court orders real estate sold, the court must have the property sold at a public auction. The sale usually happens at the courthouse in the county where most of the property is or on the property itself. If a court-appointed receiver has the property, the sale normally happens in the district where that receiver was first named, again at the local courthouse or on the premises, unless the court directs otherwise. After a hearing with notice, the court may allow a private sale if it protects the estate. Before approving a private sale, the court must pick three impartial appraisers (or groups of three for different kinds of property). The private sale price cannot be less than two-thirds of the appraised value. The sale terms must be published in a general newspaper at least ten days before approval. A private sale is blocked if a good-faith offer is made that guarantees at least a 10% higher price under rules the court sets. Sales under Title 11 (bankruptcy) and sales by bank receivers or conservators appointed by the Comptroller of the Currency are not covered by these rules.