§2001 Sale of Realty Generally

Summary

Federal courts must sell real estate they order sold at a public auction. The court can sell the whole property or split it into parcels. The sale usually happens at the courthouse in the county or city where most of the property is, or on the property itself, unless the court says otherwise. If a court-appointed receiver holds the property, the sale normally happens in the district where that receiver was first appointed, again at the courthouse where most of the property is or on the premises, unless the court orders sales elsewhere. After a hearing with notice to interested parties, the court can allow a private sale if it thinks that is best for the estate. Before approving a private sale, the court must pick three neutral appraisers (or groups of three) to value the property. The private sale cannot be approved for less than two-thirds of the appraised value. The sale terms must be published in a widely read newspaper at least ten days before approval. The court must not confirm the private sale if a real offer appears that, under the court’s rules, would raise the price by at least 10 percent. This rule does not apply to sales under Title 11 (bankruptcy) or to bank receivers or conservators appointed by the Comptroller of the Currency.