70-29-414. Open market sale — sealed bids — auction. (1) 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 bids or an auction would be more economically advantageous and in the best interest of the cotenants as a group.

Terms Used In Montana Code 70-29-414

  • Determination of value: means a court order determining the fair market value of heirs property under 70-29-410 or 70-29-414 or adopting the valuation of the property agreed to by all cotenants. See Montana Code 70-29-402
  • Heirs property: means real property held in tenancy in common that satisfies all of the following requirements as of the filing of a partition action:

    (a)there is no agreement in a record binding all the cotenants that governs the partition of the property;

    (b)one or more of the cotenants acquired title from a relative, whether living or deceased; and

    (c)any of the following applies:

    (i)20% or more of the interests are held by cotenants who are relatives;

    (ii)20% or more of the interests are held by an individual who acquired title from a relative, whether living or deceased; or

    (iii)20% or more of the cotenants are relatives. See Montana Code 70-29-402

  • Property: means real and personal property. See Montana Code 1-1-205
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201

(2)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 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 no lower than the determination of value and on the terms and conditions established by the court.

(3)If the broker appointed under subsection (2) obtains within a reasonable time an offer to purchase the property for at least the determination of value:

(a)the broker shall comply with the reporting requirements in 70-29-415; and

(b)the sale may be completed in accordance with state law other than this part.

(4)If the broker appointed under subsection (2) 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:

(a)approve the highest outstanding offer, if any;

(b)redetermine the value of the property and order that the property continue to be offered for an additional time; or

(c)order that the property be sold by sealed bids or at an auction.

(5)If the court orders a sale by sealed bids or an auction, the court shall set terms and conditions of the sale. If the court orders an auction, the auction must be conducted under 70-29-301.

(6)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.

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