(a) If the court orders a sale of heirs property, then the court shall determine the method of sale that is most economically advantageous and in the best interest of the cotenants as a group. The method of sale may be an open-market sale, a sale by sealed bids, or an auction.
Terms Used In Tennessee Code 29-27-310
Determination of value: means a court order determining the fair market value of heirs property under §. See Tennessee Code 29-27-302
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. See Tennessee Code 29-27-302
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) If the court orders an open-market sale and the parties, no later than ten (10) days after the entry of the order, agree on a special commissioner or a real estate broker licensed in this state to offer the property for sale, then, upon motion, the court shall appoint the special commissioner or broker and establish a reasonable commission. If the parties do not agree on a special commissioner or broker, then, upon motion, the court shall appoint a disinterested special commissioner or real estate broker licensed in this state to offer the property for sale and establish a reasonable commission. The special commissioner or 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.(c) If the special commissioner or 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 special commissioner or broker shall comply with the reporting requirements in § 29-27-311; and(2) The sale may be completed in accordance with state law other than this part.(d) If the special commissioner or 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, then 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 time; or(3) Order that the property be sold by sealed bids or at an auction.(e) If the court orders a sale by sealed bids or at an auction, then the court shall set terms and conditions of the sale. If the court orders an auction, then the auction must comply with part 2 of this chapter.(f) If a purchaser is entitled to a share of the proceeds of the sale, then the purchaser is entitled to a credit against the price in an amount equal to the purchaser’s share of the proceeds.
