Detailed Answer

When a probate estate holds real property that must be sold to pay debts, distribute assets, or resolve claims, North Carolina law often requires a commissioner’s sale. The clerk of superior court appoints a commissioner—an attorney or qualified individual—to conduct a public auction of the property under N.C. Gen. Stat. § 28A-23-1. This sale ensures transparency, fair market bidding, and compliance with statutory notice requirements.

Steps in a Commissioner’s Sale

First, the commissioner posts a notice of sale at the courthouse and publishes it in a local newspaper for four consecutive weeks, as required by N.C. Gen. Stat. § 28A-23-4. The notice describes the property, sets the time and place of sale, and states the upset bid amount. On the day of sale, bidders appear in person or by agent. The highest bid that meets or exceeds the upset bid threshold wins, subject to any upset bids by others.

The Upset Bid Process

An upset bid allows interested parties to challenge the highest bid and drive the sale price up. After the commissioner accepts the initial high bid, anyone else may submit an upset bid at least 5% above that amount. Each new upset bid triggers a further period for additional bids. Under N.C. Gen. Stat. § 28A-23-7, the commissioner accepts upset bids until no further bids appear. When bidding ends, the commissioner confirms the sale and issues a report to the clerk of court.

Confirmation and Distribution

Once the clerk confirms the commissioner’s report, the sale becomes final. The estate uses the proceeds to pay funeral expenses, taxes, administrative costs, and creditor claims in order of priority under N.C. Gen. Stat. § 28A-17. Any remainder passes to heirs or beneficiaries.

Key Points to Understand Commissioner’s Sales and Upset Bids

• Appointment: The clerk of superior court names a commissioner to sell estate property.
• Notice: The sale requires at least four weeks of published and posted notice.
• Initial Bidding: Bidders submit offers at public auction, with the highest qualifying bid recorded.
• Upset Bid: After the initial sale, others can bid at least 5% above the high bid to ‘upset’ it.
• Bidding Period: The commissioner accepts upset bids until no further raises occur.
• Confirmation: The clerk confirms the sale, enabling property conveyance and fund distribution.
• Statutory Authority: See G.S. 28A-23-1 (sale process) and G.S. 28A-23-7 (upset bids).

Ready to Protect Your Interests?

If you face a commissioner’s sale or need guidance on upset bids, Pierce Law Group’s probate attorneys have the experience to guide you. Reach out today for a consultation:

Email us at intake@piercelaw.com
Call us at (919) 341-7055