Legal Question in Real Estate Law in California
Forced Sale of Commercial Real Estate
I would like a brief description of the procedures, costs and time involved in forcing a sale by partition of a commercial property in San Diego of which I am a 50% owner.
Will the court allow a sale for an amount less that the total liens against the property? Are there any restrictions to either owner bidding? I hold a junior lien against the other owner's 50% share. Can I use this lien as part of my bid to acquire the property? Once the sale process is initiated, can it be cancelled?
1 Answer from Attorneys
Re: Forced Sale of Commercial Real Estate
One files a Petition for dissolution or partition, whichever is warranted, and a hearing is held before a judge and a decision is rendered and that is that at the first level. The second level is an appeal.
A court cannot allow a sale at a price below the pay-off balances of the existing mortgages without the permission of all mortgage holders.
A sale is not necessarily the result of an Order of partition - maybe the property can be divided.
A lien holder can bid the full amount of his lien at sale.
A court can cancel any sale it authorizes, but this is seldom done, then only for compelling reasons, and cannot be done by anyone other than the Judge who authorized the sale in the first place.
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