In Partition Action, partition by sale, how does auction work?

In New York, if residence is to be sold in partition by sale, does auction have opening bid? Is opening bid fair market value from arm’s length appraisal? Can residence be sold below fair market value?

Asked on September 15, 2018 under Real Estate Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

It is not an auction with a "reserve price" below which it cannot be sold; it is true auction in that the highest bid wins. So yes, a home can be sold at below the apparent fair market value if no one will bid at that value.


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