                                 CODE OF VIRGINIA

OPEN-MARKET SALE, SEALED BIDS, OR AUCTION (§ 8.01-83.1)

A. If the court orders a sale of property in a partition action under the
provisions of &#xA7; 8.01-83, the sale shall be an open-market sale unless the
court finds that a sale by sealed bids or at auction would be more economically
advantageous and in the best interests of the parties as a group.

B. If the court orders an open-market sale and the parties, not later than 10
days after the entry of the order, agree on a real estate broker licensed in the
Commonwealth 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 the
Commonwealth 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 no lower than the determination of value and on the
terms and conditions established by the court, including setting a reasonable
time for marketing the property at its court-determined value pursuant to &#xA7;
8.01-81.1.

C. If the broker appointed under subsection B obtains within a reasonable time
an offer to purchase the property for at least the determination of value:

   1. The broker shall promptly file a report containing (i) a description of the
   property to be sold to each buyer; (ii) the name of each buyer; (iii) the
   proposed purchase price; (iv) the terms and conditions of the proposed sale,
   including the terms of any owner financing; (v) the amounts to be paid to
   lienholders; (vi) a statement of contractual or other arrangements or
   conditions of the broker&#8217;s commission; and (vii) other material facts
   relevant to the sale; and

   2. The court shall hold a hearing to approve the same and shall appoint a
   special commissioner to make the sale and execute the deed pursuant to Article
   11 (&#xA7; 8.01-96 et seq.).

D. If the broker appointed under subsection B does not obtain within a
reasonable time an offer to purchase the property for at least the determination
of value, the court, after a hearing, may:

   1. Approve the highest outstanding offer, if any;

   2. Redetermine the value of the property and order that the property continue
   to be offered for an additional period of time; or

   3. Order that the property be sold by sealed bids or at auction.

E. If the court orders a sale by sealed bids or at auction, the court shall set
terms and conditions of such sale by sealed bids or an auction.

F. 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&#8217;s share of the proceeds.

HISTORY: 2020, cc. 115, 193.