What is a Commissioner’s Sale in a North Carolina Partition Action, and How Does the Upset Bid Process Work?
1. Detailed Answer
Commissioner’s Sale in a Partition Action
A commissioner’s sale arises when co-owners cannot divide real property by agreement. After the court issues a partition decree, it appoints one or more commissioners under N.C. Gen. Stat. § 46-6. Commissioners must notify all parties, set the auction date, and conduct a public sale. Bidders compete, and the highest bid wins. Once the sale concludes, the commissioners report their findings to the clerk of court as required by N.C. Gen. Stat. § 46-12. After the court confirms the sale, it issues a deed to the purchaser and orders distribution of proceeds according to each co-owner’s share.
Upset Bid Process
If the confirmed sale price does not reflect the property’s fair market value, interested parties can file upset bids to raise the price. Under N.C. Gen. Stat. § 46-24:
- Filing Period: Any party may file an upset bid within 15 days after the commissioner’s report is filed.
- Bid Requirements: Each new bid must exceed the confirmed sale price by at least 5%.
- Security Deposit: Bidders submit an affidavit and deposit a percentage (usually 5%) of their bid to secure their offer.
- Subsequent Bidding: After one upset bid, other parties have 10 days to submit higher bids under the same terms.
- Final Confirmation: The clerk confirms the highest upset bid, issues the final deed, and directs distribution of proceeds.
2. Key Takeaways
- Commissioner’s sales resolve disputes by converting property into cash when co-owners cannot agree.
- The court appoints commissioners to manage notices, the public auction, and reporting.
- Commissioners report the sale under § 46-12; the court then confirms it.
- Parties may file upset bids within 15 days to increase the sale price under § 46-24.
- Each upset bid must top the prior price by at least 5% and include a deposit.
- The clerk issues final confirmation to the highest bidder and allocates the proceeds.
Next Steps and Call to Action
Pierce Law Group attorneys guide clients through every step of the partition process, including commissioner’s sales and upset bids. To protect your rights and secure a fair outcome, reach out today. Email us at intake@piercelaw.com or call (919) 341-7055.
