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Rule 13. Practice before the master commissioner

Baldwin's Kentucky Revised Statutes Annotated53rd Judicial Circuit - Anderson, Shelby and Spencer Circuit Courts

Baldwin's Kentucky Revised Statutes Annotated
53rd Judicial Circuit - Anderson, Shelby and Spencer Circuit Courts
KY RASS Rule 13
Rule 13. Practice before the master commissioner
Currentness
Practice before the Master Commissioner shall be as provided by the Administrative Procedure of the court of Justice (AP) Part IV, the Rules of Civil Procedure, the Kentucky Revised Statutes (KRS), these Rules, or by court order in individual cases.
A. JUDICIAL SALES
1. Master Commissioner Approval. In addition to other requirements of these Rules, all judgments or orders directing the sale of property by the Master Commissioner, directing the disbursement of monies held by the Commissioner or directing the delivery of a deed must be submitted along with the record to the Commissioner for certification that it complies with all applicable statutes and rules. The Commissioner shall then deliver the judgment or order to the Court for approval and entry at its next motion hour.
2. Deposit for Advertisement and Appraisal. When any order is submitted to the Commissioner requiring advertisement or appraisal, the party submitting the order shall deposit with the Commissioner an amount sufficient to pay the estimated costs of the proposed advertisement and/or appraisal, but not less than two thousand five hundred dollars ($2,500.00). The Commissioner shall not submit the order to the Court nor cause an advertisement or appraisal to be made until such deposit is made. When more than one sale is set for the same date, the Commissioner may advertise all such sales in one advertisement that includes, in accordance with AP Part IV, Sec. 5, the required information applicable to each action and sale. The total cost of advertising shall be apportioned among each of the various cases to which the advertisement applies.
3. Mobile Homes or Trailers. If a mobile home or trailer is situated upon the property described herein, it shall not be sold as a part of the real estate if the mobile home or trailer is licensed and/or taxed as a motor vehicle, and in such event, title to any such mobile home or trailer shall not be transferred by a Master Commissioner sale. Only if the mobile home or trailer is not licensed or taxed as a motor vehicle, and is permanently affixed to the real estate, shall title to same pass via a Commissioner's Deed.
4. Orders of Sale and/or Delivery of Deed. Every order or judgment of this Court directing the Commissioner to sell property or to execute or deliver a deed shall contain:
a. The legal description of the property including a street address (or if it has no street address, a brief description of its location and size;
b. The name of the parties or parties whose interest is being sold or conveyed;
c. The source of that party (or parties') title with deed book, page number and date of deed or recording date of deed;
d. A specific designation of all costs, liens, and/or encumbrances to be paid. Regarding liens to be released, the judgment and order of sale shall specify the name and address of the entity and/or person(s) holding a lien and/or encumbrance, the payoff amount as of the end of the month in which the judgment and order of sale is drafted, and a per diem amount if applicable.
e. A directive, upon request of the creditor or mortgage holder, that the Master Commissioner hire a licensed auctioneer to sell real estate which he has been ordered to sell pursuant to KRS 426.522.
f. A signature line for the master commissioner indicating certification and compliance;
g. A prepared by signature line of the attorney submitting order;
h. A certificate of service by the Circuit Court Clerk;
i. Appropriate number of copies for all parties including submitting attorney and master Commissioner; and
j. Self-addressed stamped envelopes for all parties including submitting attorney.
4. Terms and Conditions of Sale. Unless otherwise ordered all sales shall be conducted by the Commissioner or Special Commissioner at the time announced in the advertising in the appropriate County Courthouse, upon the following terms and conditions:
a. Before conducting a sale, the Master Commissioner shall advertise in a newspaper meeting the requirements of KRS 424.120. The advertisement shall include the time, terms and place of sale, a reference to the judgment and order of sale in case number YY-CI-####, together with a description of the property to be sold, which shall include only the street address (or if the property has no street address a brief description of its location) and any number(s) assigned to the property/parcel by the tax assessor for purposes of identification and record keeping (such as the parcel or property identification number).
In accordance with KRS 424.130 the advertisement shall be published at least once not less than seven (7) days or more than twenty-one (21) days before the date of sale, but may be published two or more times provided that one publication occurs not less than seven (7) days or more than twenty-one (21) days before the date of the sale.
b. The Master Commissioner before making a sale of real property shall have the property appraised by two intelligent, disinterested persons of the appropriate County who are not related to any parties to the action and both of whom are actively engaged in or have had at least one year of experience in the field of real estate. Before making appraisals, the appraisers shall be sworn by the Master Commissioner. Their appraisals shall be in writing to the Master Commissioner, shall be signed by the persons making them, and shall be filed in the court record prior to the sale.
c. The property shall be sold to the highest bidder provided:
1). At the time of sale, the successful bidder shall either pay cash or make a deposit of at least 10% of the purchase price with the balance on credit for thirty (30) days. If the purchase price is not paid in full, the successful bidder shall be required to give bond with sufficient surety approved by the Master Commissioner prior to the sale for the unpaid balance of the purchase price. Pursuant to KRS 426.705, the bond shall bear interest at the rate the judgment bears, from the date of sale until paid, and shall have the force and effect of a judgment. Should the Plaintiff be the successful purchaser at sale, then in lieu of the deposit the Plaintiff shall be allowed to bid on credit up to the judgment amount.
2). Neither the Master Commissioner nor anyone in his employ including, but not limited to, office staff, auctioneers, or appraisers, shall act as surety on the bond of any purchaser of property at any judicial sale.
3). The purchaser shall be required to assume and pay all taxes or assessments upon the property for the current tax year and all subsequent years. All taxes or assessments upon the property for prior years shall be paid from the sale proceeds, but only if the holder of such tax bills is named as a party Defendant to the action. Otherwise, the purchaser shall be responsible for all delinquent taxes.
4). The property shall otherwise be sold free and clear of any right, title or interest of all parties to the action and all liens and encumbrances thereon, excepting easements and restrictions of record in the appropriate County Clerk's Office and such right of redemption as may exist in favor of the United States of America or the defendant(s).
5). The terms and conditions hereinabove set out may be adopted by reference to this rule in the order or judgment directing the sale, or shall be restated therein.
d. A party, who is the successful purchaser of the property, may take credit against any judgment in that party's favor against the defendant property owner for the required deposit and purchase price to the extent that the sale price is sufficient to pay such judgment considering the priorities and amounts previously adjudicated in the action.
e. Withdrawal or abatement of any judicial sale after entry of a Judgment and Order of Sale thereon shall be made by motion and Order prior to the date and time of the sale.
f. Reinstatement of a judicial sale following an order to withdraw or abate same shall be made by motion and Order.
5. Report of Sale. The report of sale shall be filed by the Master Commissioner no later than three (3) business days after the date of sale.
6. Confirmation of Report of Sale. Ten (10) days after the filing of the report of sale, if no objections have been filed thereto and without motion, the sale shall be deemed confirmed and an order confirming the sale shall be submitted to the Court. A copy of the order of confirmation shall be served upon the purchaser.
7. Fees of the Commissioner. The Commissioner shall be entitled to those fees set forth in AP Part IV, Sec. 8.
8. Orders of Distribution
a. Orders requiring distribution of funds held by the Commissioner shall set forth all amounts collected, identify the proper recipient(s) and the specific amounts due each under the judgment or order.
b. If disbursements are to be made to taxing authorities, a copy of the pertinent tax bill(s) must be furnished the Commissioner, giving the commissioner's office sufficient time to pay the bill(s) with the amount(s) listed in the order.
9. Execution and Delivery of Deed. The Master Commissioner shall execute and deliver the deed to the purchaser of the property no later than five (5) business days after the court has confirmed the sale and approved the deed and all costs, fees, and other required amounts due and owing, if any, have been paid by the foreclosing mortgagee or lienholder or the purchase price has been paid in full by the third party purchaser.
10. Appraiser's Fees. In all residential sales where an appraisal is required, the fee of each appraiser shall be $200.00, unless otherwise ordered by the Court. Appraisal fees for commercial, farm and other sales shall be set by the court. The fee shall be paid from the proceeds of sale.
B. Hearings
1. An attested copy of the order referring the case to the Master Commissioner shall be delivered to the Master Commissioner's office.
2. The Commissioner shall then promptly assign a date for a pre-hearing conference and give written notice thereof. The attorney responsible for the case shall be expected to personally attend said hearing. The Commissioner may charge and collect a fee in accordance with AP Part IV, section 4-18.
3. The Master Commissioner's shall designate a specific time in his/her discretion at which time all motions before him or her, unless otherwise designated, shall be heard.
4. An attorney requesting a hearing date before the Master Commissioner may be responsible for providing a Court reporter at all evidentiary hearings.
5. Any money paid into Court pursuant to CR 67 .01 shall be paid to the Master Commissioner who is authorized to charge a fee pursuant to AP Part IV, Sec. 8.
C. WRIT OF POSSESSION AND ATTACHMENT PROCEDURE
1. Pursuant to KRS 425 .006, the Master Commissioner and Special Commissioners are appointed judicial officers to perform such duties as may be required of them by Chapter 425 of the Kentucky Revised Statutes.
2. All requests for hearings, or ex parte relief under the provision of that Chapter shall stand automatically referred, without order, to the Commissioner's office for further proceedings.
3. When a hearing has been requested or is required, it shall be the responsibility of the attorney requesting the hearing to notify the Commissioner's office of the request, after which the Commissioner shall fix a time and place for hearing and give written notice thereof to the parties.
4. Requests for ex parte and temporary restraining orders shall be immediately delivered to the Commissioner, along with the record, by the Clerk of this Court or the attorney requesting relief. The Commissioner shall then make a determination.

Credits

HISTORY: Amended effective October 14, 2022. Prior amendments effective March 28, 2018; January 14, 2008.
Anderson, Shelby and Spencer Circuit Court Rule 13, KY R ANDERSON CIR CT Rule 13
Current with amendments received through November 15, 2023. Some rules may be more current, see credits for details.
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