§ 1-339.25. Public sale; upset bid on real property; compliance bond.
§ 1‑339.25. Publicsale; upset bid on real property; compliance bond.
(a) An upset bid is anadvanced, increased, or raised bid in a public sale by auction whereby a personoffers to purchase real property theretofore sold for an amount exceeding thereported sale price or the last upset bid by a minimum of five percent (5%)thereof, but in any event with a minimum increase of seven hundred fiftydollars ($750.00). Subject to the provisions of subsection (b) of this section,an upset bid shall be made by delivering to the clerk of superior court, withwhom the report of the sale or the last notice of upset bid was filed, adeposit in cash or by certified check or cashier's check satisfactory to theclerk in an amount greater than or equal to five percent (5%) of the amount ofthe upset bid but in no event less than seven hundred fifty dollars ($750.00).The deposit required by this section shall be filed with the clerk of thesuperior court with whom the report of sale or the last notice of upset bid wasfiled, by the close of normal business hours on the tenth day after the filingof the report of sale or the last notice of upset bid, and if the tenth dayfalls upon a Sunday or legal holiday when the courthouse is closed fortransactions, or upon a day in which the office of the clerk is not open forthe regular dispatch of its business, the deposit may be made and the notice ofupset bid may be filed on the day following when the office is open for theregular dispatch of its business. Except as provided in G.S. 1‑339.27Aand G.S. 1‑339.30, there shall be no resales; however, there may besuccessive upset bids, each of which shall be followed by a period of 10 daysfor a further upset bid. If a timely motion for resale is filed under G.S. 1‑339.27A,no upset bids may be filed while the motion is pending.
(b) The clerk of thesuperior court may require an upset bidder or the highest bidder at a resaleheld under G.S. 1‑339.30 also to deposit with the clerk a cash bond, or,in lieu thereof at the option of the bidder, a surety bond, approved by theclerk. The compliance bond shall be in the amount the clerk deems adequate, butin no case greater than the amount of the bid of the person being required tofurnish the bond, less the amount of any required deposit. The compliance bondshall be payable to the State of North Carolina for the use of the parties ininterest and shall be conditioned on the principal obligor's compliance withthe bid.
(c) Repealed by SessionLaws 2001‑271, s. 4, effective January 1, 2002. See editor's note forapplicability.
(d) Repealed by SessionLaws 2001‑271, s. 4, effective January 1, 2002. See editor's note forapplicability.
(d1) At the time that anupset bid on real property is submitted to the court as provided in subsection(a) of this section, together with a compliance bond if one is required, theupset bidder shall file with the clerk a notice of upset bid. The notice ofupset bid shall:
(1) State the name,address, and telephone number of the upset bidder;
(2) Specify the amountof the upset bid;
(3) Provide that thesale shall remain open for a period of 10 days after the date on which thenotice of upset bid is filed for the filing of additional upset bids aspermitted by law; and
(4) Be signed by theupset bidder or the attorney or the agent of the upset bidder.
(d2) When an upset bid ismade as provided in this section, the clerk shall notify the person holding thesale who shall thereafter mail a written notice of upset bid by first‑classmail to the last known address of the last prior bidder and the current recordowners of the property.
(d3) When an upset bid ismade as provided in this section, the last prior bidder, regardless of how thebid was made, is released from any further obligation on account of the bid,and any deposit or bond provided by the last prior bidder shall be released.
(d4) Any person offeringto purchase real property by upset bid as permitted in this Article is subjectto and bound by the terms of the original notice of sale except as modified bycourt order or the provisions of this Article.
(d5) The clerk ofsuperior court shall make all orders as may be just and necessary to safeguardthe interests of all parties and may fix and determine all necessary proceduraldetails with respect to upset bids in all instances in which this Article failsto make definite provisions as to that procedure.
(e) The provisions ofthis section do not apply to public sales of timber by sealed bid. (1949, c. 719, s. 1; 1963, c.858; 1967, c. 979, s. 1; 1997‑83, ss. 18, 19; 1997‑119, s. 1; 1997‑456,s. 28; 2001‑271, s. 4; 2002‑28, s. 1; 2003‑337, s. 8.)