[WSBARP] Partition Sale Mechanics

[Eric Lanza]

I have conducted many trustee's sales (RCW 61.24). I've never done a partition sale, but perhaps this will be helpful.

I generally require any potential bidders to either:

  1.  contact me in advance and provide "certified" funds---i.e. wire the maximum amount they are willing to bid into our trust account prior to the auction, OR
  2.  they need to have a cashier's check in hand the day of the auction. Most people who show up to these things are experienced investors that know the drill---they typically have a cashier's check in the amount of the maximum amount they are willing to spend. If they successfully bid an amount below the amount of their check, I take the check, deposit it into trust, and remit a refund for the difference between the winning bid amount and the check amount.

However, I do tell everyone before the auction begins that I will provide the winning bidder with one hour to go to the bank and obtain a cashier's check if they did not have one in hand. If the winning bidder does not come back within the hour with a cashier's check, the next highest bid is accepted. I would instruct all bidders to stick around after the conclusion of the auction-just in case the winning bidder does not have a check in hand and does not return with a cashier's check within the one hour period. I have never had this scenario actually play out because, as I said, most bidders are experienced at this and know to show up to the auction with a cashier's check.

I let everyone know the ground rules before I open it up for bidding.

Eric J. Lanza, J.D.

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Michael Brandt
Sent: Thursday, October 29, 2020 10:21 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Partition Sale Mechanics

Listmates:

I am dealing with a partition action that appears to be heading to public auction pursuant to the statute.  Can someone experienced with these matters spare me a few moments to discuss the mechanics of such a sale?   Particularly of concern is a bidder showing up, bidding the price way up, and then not being able to pay what he/she bid.  How does the referee handle this issue?  Thanks.

Michael D. Brandt
BRANDT LAW GROUP
1200 - 5th Avenue, Suite 1950
Seattle, Washington 98101
206.441.5739
206.299.9115 (fax)
www.brandtlawgroup.com<http://www.brandtlawgroup.com/>

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