AI-assisted research summary: If a court orders sale of heirs property, it must generally use an open-market sale, with a broker appointed by the court and reporting duties if a qualifying offer is received.
12-3409 - Open-market sale; sealed bids; auctions 12-3409. Open-market sale; sealed bids; auctions A. If the court orders a sale of heirs property, the sale must be an open-market sale unless the court finds that a sale by sealed bid or an auction would be more economically advantageous and in the best interest of the cotenants as a group. If the court orders an open-market sale and the parties, not later than ten days after the entry of the order, agree on a real estate broker licensed in this state to offer the property for sale, the court shall appoint the broker and establish a reasonable commission. If the parties do not agree on a broker, the court shall appoint a disinterested real estate broker licensed in this state to offer the property for sale and shall establish a reasonable commission. The broker shall offer the property for sale in a commercially reasonable manner at a price not lower than the fair market value of the property determined pursuant to section 12-3405, subsection C and on the terms and conditions established by the court. If the broker appointed pursuant to this subsection obtains within a reasonable time an offer to purchase the property for at least the determined fair market value, both of the following apply: 1. The broker shall comply with the reporting requirements in subsection D of this section. 2. The sale may be completed in accordance with state law other than the provisions of this section. B. If the broker appointed pursuant to subsection A of this section does not obtain within a reasonable time an offer to purchase the property for at least the determined fair market value of the property, the court, after a hearing, may do any of the following: 1. Approve the highest outstanding offer, if any. 2. Redetermine the value of the heirs property and order that the heirs property continue to be offered for an additional time. 3. Order that the heirs property be sold by sealed bids or at an auction. C. If the court orders a sale by sealed bids or at an auction, the court shall set terms and conditions of the sale. If the court orders an auction, the auction must be conducted pursuant to title 33, chapter 6, article 2. If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled to a credit against the price in an amount equal to the purchaser's share of the proceeds. D. Unless required to do so within a shorter time, a broker who is appointed pursuant to subsection A of this section to offer heirs property for open-market sale shall file a report with the court not later than seven days after receiving an offer to purchase the heirs property for at least the fair market value of the heirs property. The report must contain all of the following information: 1. A description of the property to be sold to each buyer. 2. The name of each buyer. 3. The proposed purchase price. 4. The terms and conditions of the proposed sale, including the terms of any owner financing. 5. The amounts to be paid to lienholders. 6. A statement of contractual or other arrangements or conditions of the broker's commission. 7. Any other material facts relevant to the sale.