Also known as: judgment sales · judicial sale
Written by attorneys · grounded in primary & secondary sources — see below
A sale of property conducted under court order to satisfy a judgment or lien. The sale produces proceeds that are applied first to the underlying debt and then distributed according to the parties' interests.
Adrian and his family cotenants hold undivided interests in a lakeside inn parcel. After Harbor Bank records a judgment lien against Adrian, the family grants him a special power to convey the tract in fee simple. The bank initiates proceedings that culminate in a court-ordered sale of the property, with the proceeds applied to the judgment debt.
Anna holds a life estate in farmland with contingent remaindermen holding future interests. A creditor obtains a judgment lien against Anna. The court orders a sale of the property to satisfy the lien, with proceeds first applied to the debt and any surplus invested for the remaindermen.
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A French judgment creditor seeks recognition of its award in a U.S. court. After the court grants comity, the creditor obtains a domestic judgment and conducts a sale of the debtor's U.S. assets to satisfy the amount due.
State regulators obtain a judgment against a grain warehouse operator for rate violations. The court orders a sale of the operator's grain elevators to satisfy the judgment, with the proceeds used to pay the debt and any surplus returned to the operator.
A judgment sale occurs only after a court has entered a judgment or decree and orders the property sold to satisfy that obligation. A voluntary sale is a private transaction between willing parties without court compulsion.
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A court orders partition by sale when physical division is impracticable or inequitable because of the land's characteristics or legal constraints such as zoning that would render separate parcels unusable.
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No. A foreclosure or partition sale stands unless the price is grossly inadequate and additional circumstances such as fraud or procedural irregularity are shown.
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A preexisting servitude survives the sale unless the foreclosed lien had priority that the applicable servitude rules treat as extinguishing the servitude.
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…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…