Judicial Sale

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Judicial Sale

The transfer of title to and possession of a debtor's property to another in exchange for a price determined in proceedings that are conducted under a judgment or an order of court by an officer duly appointed and commissioned to do so.

A judicial sale is a method plaintiffs use to enforce a judgment. When a plaintiff wins a judgment against a defendant in civil court, and the defendant does not pay the judgment, the plaintiff can force the sale of the defendant's property until the judgment is satisfied. The plaintiff forces the sale by filing in court for an execution on property, which is a seizure of property by the court for the purpose of selling the property.

Judicial sales are regulated by state and federal statute. In Alabama, for example, the judicial sale process begins when a judgment remains unpaid ninety days after it is placed on the record by the court (Ala. Code § 6-9-21 [1995]). The plaintiff must bring an order mandating payment of the judgment and court costs to the county where the defendant's property is located. This order is called a writ of execution, and it is issued by the trial court. A writ of execution identifies the amount of the judgment, interest, and court costs that the defendant owes the plaintiff.

Generally, a writ of execution may be levied against any real property or Personal Property of the defendant. The plaintiff must file the writ of execution with the probate judge in the county where the defendant's property is located. The plaintiff must also give notice of the execution on the defendant's property to the defendant. Once the writ is filed, the plaintiff has a lien on the defendant's property. A lien gives the plaintiff a legally recognized ownership interest in the defendant's property, equal to the amount of the judgment.

Once the plaintiff has obtained a lien on the defendant's property, the judicial sale can begin. The process typically must be carried out within a fixed time period, such as within ninety days after the writ of execution is issued. The sheriff's office in the county where the property is located is responsible for levying, or seizing, the property and for conducting the sale of the property.

The sale of real property may take place at the courthouse. If the property that the plaintiff seeks is perishable and in danger of waste or decay, the sale may occur at some other time and place.

A defendant can avoid a judicial sale after a writ of execution is issued, by paying the judgment, interest, and court costs in full. If the defendant appeals the judgment to a higher court, the defendant may postpone the judicial sale by posting a bond to secure the debt during the appeals process. If the defendant does not plan to appeal, and the levying officer is about to seize personal property, the defendant may be able to keep the property until the day of sale if the defendant gives the levying officer a bond made payable to the plaintiff for a certain amount, such as twice the amount in the writ of execution.

Generally, judicial sales are the last resort for a plaintiff trying to collect on a judgment. A defendant who owns or possesses valuable property is usually able to satisfy a judgment in civil court by leveraging the property, or using it to borrow money to pay the judgment.

judicial sale

n. a sale of goods by an official (keeper, trustee or sheriff) appointed by the court and ordered by a court, usually to satisfy a judgment or implement another order of the court. Such sales require public notice of time, place and a description of the goods to be sold. (See: sheriff's sale)

JUDICIAL SALE. A sale by authority of some competent tribunal, by an officer authorized by law for the purpose.
     2. The officer who makes the sale, conveys all the rights of the defendant, or other person against whom the process has been issued, in the property sold. Under such a sale there is no warranty, either express or implied, of the thing sold. 9 Wheat. 616. When real estate is sold by the sheriff or marshal, the sale is subject to the confirmation of the court, or it may be set aside. See 4 Wash. C. C. R. 45 Wallace, 128; 4 Wash. C. C. R. 322.

References in periodicals archive ?
20) And while 2-1401 (e) protects bona fide purchasers of real property sold at judicial sales against the vacation or modification of judgments and orders initiating the sales, that protection does not apply when the record shows a problem with jurisdiction.
In particular, the outcome of the disposition of the vessels will depend on the following factors that are not within the control of Royal Olympic in any material respect, including entry of a final order by the bankruptcy court lifting the automatic stay in the Chapter 11 proceeding so as to enable the lenders to proceed with an arrest and judicial sale of the vessels and lenders actions thereafter.
However, a court may set aside its own judicial sale in order to relieve an oppressive or unfair result.
That in itself is not determinative since it is common knowledge that property sold by judicial sale results in a price much lower than what could be obtained in a arms-length sale of the property.
On January 5, 2000, ICCMIC obtained a foreclosure decree for the judicial sale of our Legends in Concert Family Theater in Surfside Beach, South Carolina.
When purchased at judicial sale there shouldn't be any triple damage," he noted, warning that the potential purchaser must be very careful.
31, 1991 is not in fact timely made, it will be necessary for the company to foreclose its mortgage upon the vineyard, to seek proceeds from subsequent judicial sale of the vineyard and to secure recovery of capital stock issued to Aktiengesellschaft fur Beteiligungen in Europa, S.
Judicial sales director Keith Lulewich chats with Godfrey H.
He also serves as chairman of the board of The Judicial Sales Corporation, a subsidiary of ATG.
The organization presently has been executing on a draft convention for the international recognition of Judicial Sales.