Also known as: judicial sales · sheriff's sale · court-ordered sale
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A court-ordered public sale of property conducted by a court officer. The sale occurs to divide proceeds among co-owners when physical partition is impracticable due to the land's characteristics or external legal constraints such as zoning.
A court-ordered public sale of property conducted by a court officer. The sale occurs to divide proceeds among co-owners when physical partition is impracticable due to the land's characteristics or external legal constraints such as zoning.
Joanna Jung and Jerome Jackson own a parcel as tenants in common. The land lies in a zoning district that prohibits subdivision below a minimum lot size. Joanna sues for partition. The court finds that any physical division would create unusable parcels under the zoning rules. It therefore orders a judicial sale of the entire tract with division of the proceeds.
A court-ordered public sale of property conducted by a court officer. The sale occurs to satisfy liens.
John Jones defaults on a mortgage held by Jordan Dynamics. The lender files a foreclosure action. The court issues a decree directing public sale of the property. The sale proceeds first satisfy the mortgage debt with any surplus paid to Jones.
A court-ordered public sale of property conducted by a court officer. The sale occurs to satisfy liens.
Each sense below has its own examples, sources, and questions.
Jennifer Jackson holds a life estate in a farm while her children hold remainder interests. The property needs major repairs that exceed the life tenant's resources. Jennifer petitions the court to sell the land. The court orders a judicial sale and places the proceeds in trust to protect all interests.
A court may order a judicial sale when physical division of the property is not feasible or equitable. Physical characteristics of the land and external constraints such as zoning rules that render separate parcels unusable justify the sale. The proceeds are then divided among the co-owners.
The proceeds are divided among the co-owners according to their ownership interests after payment of any costs. The sale converts the real property into cash that can be distributed equitably.
A judicial sale in foreclosure generally extinguishes junior liens when the sale proceeds are applied according to priority. Senior liens must be satisfied first from the proceeds.
…section 53 (2d ed. 1966), states: By the weight of authority, it is held that a court of equity has the power to order a judicial sale of land affected with a future interest and an investment of the proceeds, where this is necessary for the preservation of all interests in the land. When the power is exercised, the…