Bill Text: MS HB550 | 2018 | Regular Session | Introduced
Bill Title: Jointly held property; authorize to be sold by broker in a commercially reasonable manner.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2018-01-30 - Died In Committee [HB550 Detail]
Download: Mississippi-2018-HB550-Introduced.html
MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Judiciary A
By: Representative Reynolds
House Bill 550
AN ACT TO AMEND SECTIONS 11-21-11 AND 11-21-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT SALE OF PROPERTY WHICH CANNOT BE DIVIDED EQUALLY AMONG COTENANTS MAY BE SOLD BY A BROKER IN A COMMERCIALLY REASONABLE MANNER; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 11-21-11, Mississippi Code of 1972, is amended as follows:
11-21-11. (1) If,
upon hearing, the court be of the opinion that a sale of the lands, or any part
thereof, will better promote the interest of all parties than a partition in
kind, or if the court be satisfied that an equal division cannot be made, it
shall order a sale of the lands, or such part thereof as may be deemed proper,
and a division of the proceeds among the cotenants according to their
respective interests. The court may appoint a * * * broker to make the sale in
accordance with this section, and may make all proper orders to protect the
rights of the parties interested. The court may order the sale of a part of
the land and the partition in kind of the residue.
(2) Before the court shall order a sale of the lands, the court may cause an appraisal to be made of the property, the expense of which shall be taxed and collected as costs in the proceedings. If the court causes an appraisal of the property to be made, then, subsequent to the receipt and filing of the appraisal with the court, the court shall hold in abeyance its order for sale of the land for a period of thirty (30) days in order to allow the parties the opportunity to reach an agreement as to a partition in kind or sale of the lands.
(3) (a) If the court orders a sale of property under this section, the sale must be an open-market sale conducted by a real estate broker licensed in this state, unless the court finds that a public sale by sealed bids or an auction would be more economically advantageous and in the best interest of the cotenants as a group.
(b) If the court orders an open-market sale and the parties agree, not later than ten (10) days after the entry of the order, 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.
(c) 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 terms and conditions established by the court.
(d) If the broker does not obtain an offer to purchase the property for at least the determination of value within a reasonable time, the court, after hearing, may:
(i) Approve the highest outstanding offer, if any;
(ii) Redetermine the value of the property and order that the property continue to be offered for an additional time; or
(iii) Order that the property be sold by sealed bids or at an auction.
SECTION 2. Section 11-21-27, Mississippi Code of 1972, is amended as follows:
11-21-27. (1) If, after a judgment for partition and the appointment of masters, it shall appear from the report of the masters, or on exceptions to their report, that a just and equal division of the land cannot be made, or that a sale will better promote the interest of all the cotenants, the court shall order a sale of the land, or such part thereof as may be deemed proper, and a division of the proceeds among those interested, as provided for.
(2) Before the court shall order a sale of the lands, the court may cause an appraisal to be made of the property, the expense of which shall be taxed and collected as costs in the proceedings. If the court causes an appraisal of the property to be made, then, subsequent to the receipt and filing of the appraisal with the court, the court shall hold in abeyance its order for sale of the land for a period of thirty (30) days in order to allow the parties the opportunity to reach an agreement as to a partition in kind or sale of the lands.
(3) (a) If the court orders a sale of property under this section, the sale must be an open-market sale conducted by a real estate broker licensed in this state, unless the court finds that a public sale by sealed bids or an auction would be more economically advantageous and in the best interest of the cotenants as a group.
(b) If the court orders an open-market sale and the parties agree, not later than ten (10) days after the entry of the order, 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.
(c) 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 terms and conditions established by the court.
(d) If the broker does not obtain within a reasonable time an offer to purchase the property for at least the determination of value, the court, after hearing, may:
(i) Approve the highest outstanding offer, if any;
(ii) Redetermine the value of the property and order that the property continue to be offered for an additional time; or
(iii) Order that the property be sold by sealed bids or at an auction.
SECTION 3. This act shall take effect and be in force from and after July 1, 2018.
