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Rule XXV. Judicial sales

Baldwin's Kentucky Revised Statutes Annotated14th Judicial Circuit - Bourbon, Scott and Woodford Circuit Court

Baldwin's Kentucky Revised Statutes Annotated
14th Judicial Circuit - Bourbon, Scott and Woodford Circuit Court
Rules for Master Commissioner Proceedings
KY BCWC Rule XXV
Rule XXV. Judicial sales
C.1 For judicial sales referred to the Master Commissioner, the AOC-141S (Order Referring Case to Master Commissioner for Judicial Sale) or the AOC-141SP (Order Referring Case to Special Master Commissioner for Judicial Sale), shall be utilized. For all other matters referred to the Master Commissioner, the AOC-141 (Order Referring Case to Master Commissioner) shall be utilized.
D. Master Commissioner Approval. Ifn addition to the requirements of these Local Rules, all Judgments or Orders directing the sale of property by the Master Commissioner, directing the disbursement of monies held by the Master Commissioner, or directing the delivery of a deed shall be submitted to the Master Commissioner in advance for review and certification that it complies with AP Part IV and any other applicable rules and statutes. Upon approval, a sufficient number of copies along with self-addressed stamped envelopes shall be submitted to the Master Commissioner who shall then deliver the Judgment or Order to the Court for approval and entry.
E. Judgments, Orders of Sale and/or Delivery of Deed Every Judgment or Order of the Circuit Court directing the Master Commissioner to sell property or to execute or deliver a deed shall contain:
1. 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), along with 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;
2. The name of the party or parties whose interest is being sold or conveyed;
3. The source of the party or parties' title, with deed book, page number and date of deed or recording date of deed and/or Affidavit of Descent or Will Book and Page number if property is inherited;
4. A signature and date line for the Master Commissioner;
5. A prepared by signature line of the attorney submitting the order;
6. A certificate of service by the Circuit Court Clerk;
7. Email address, physical address, and phone number of attorney submitting document;
8. Appropriate number of copies for the Court and all parties including submitting attorney and Master Commissioner;
9. All documents shall be submitted to the Circuit Clerk and the Master Commissioner as single page documents. No double-sided copies will be accepted.
10. Self-addressed stamped envelopes for all parties including the submitting attorney and the Master Commissioner;
11. A copy of all proposed Judgments and Orders set to be heard before the Court shall be submitted to the Master Commissioner no less than seven (7) days prior to the date for which the matter is set to be heard by the Court.
12. Terms specifying that the property shall be sold on a date and time to be fixed by the Master Commissioner at each respective county within the Circuit at the following locations, or at such other location as Ordered by the Court:
a.
Bourbon County:
Judicial Center
Main Street
Paris, Kentucky 40361
b.
Scott County
Justice Building
119 N. Hamilton Street
Georgetown, Kentucky 40324
c.
Woodford County:
Courthouse
130 Court Street
Versailles, Kentucky 40383
13. Language reflecting the priority of and request to pay all taxes for the current tax year which become due prior to the date of sale and all outstanding delinquent real property taxes without necessity of including the appropriate taxing districts as a party, which taxes shall be collected and paid from the foreclosure proceeds. The taxing districts of the respective counties of Bourbon, Scott and Woodford, inclusive of cities contained therein, shall not be named as parties or be required to file any response nor make any appearance in foreclosure actions in order to protect their specific claim for the payment of all unpaid real property taxes. Any ad valorem taxes that are currently due as of the date of the sale or delinquent at the time of sale shall be paid out of the proceeds of sale regardless of the entity that is owed those taxes. It shall be the responsibility of the party moving for the sale to obtain appropriate written payoffs from the tax entities through date of confirmation of sale and delivery of deed, which payoffs shall be filed in the Court record; and
14. If a mobile home or trailer is situated upon the real property which is the subject of the foreclosure action, 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 permanently affixed to the real estate, shall title to same pass via a Master Commissioner's Deed.
F. Deposit for Advertisement and Appraisal
1. When any Order or Judgment is submitted to the Master Commissioner requiring advertisement, the submitting party shall deposit with the Master Commissioner an amount sufficient to pay the estimated costs of the proposed advertisement and/or appraisal for each property to be sold as determined in the discretion of the Master Commissioner. The Master Commissioner shall not schedule a sale or cause an advertisement or appraisal to be made until the deposit is paid.
2. When more than one sale is set for the same date, the Master Commissioner may advertise all such sales in one advertisement that includes 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.
G. Terms and Conditions of Sale
1. Before conducting a sale, the Master Commissioner shall place an advertisement in a newspaper meeting the requirements of KRS 424.120, and setting forth the time, terms, place of sale and description of the property to be sold. All sales shall be advertised in accordance with KRS 424.130 as follows: The advertisement shall be published at least once not less than seven (7) days nor more than twenty-one (21) days before the date of the sale, but may be published two or more times provided that one publication occurs not less than seven (7) days nor more than twenty-one (21) days before the date of sale
2. If required by Order or statute, the Master Commissioner before making a sale of real property shall have the property appraised by two (2) disinterested persons who are not related to any parties to the action, both of whom are actively engaged in or have had at least one (1) year of experience in the field of real estate. Before making appraisals, the appraisers shall be sworn by the Master Commissioner. In accordance with KRS 426.520(2) the appraisal shall be in writing, shall be signed by the persons making it, and shall be filed in the Court record by the Master Commissioner prior to the sale.
3. The property shall be sold to the highest bidder provided:
a. At the time of sale, the successful bidder shall either pay full cash or make a deposit of 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 execute a bond at the time of sale with sufficient surety approved by the Master Commissioner prior to the sale to secure the unpaid 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. In the event the successful bidder is the Plaintiff, then in lieu of the deposit, the Plaintiff shall be allowed to bid on credit up to the judgment amount.
b. The Master Commissioner shall sell the property in a reasonable time not to exceed 90 days after the date of the order of referral except that property found to be “vacant and abandoned” shall be sold in accordance with KRS 426.205. Upon motion and good cause shown, the court may extend the deadline established by this subsection for a period not to exceed 30 days.
c. The purchaser shall be required to assume and pay all taxes and assessments upon the property for the current tax year if not due and payable on the date of sale, and for all subsequent years. All currently due and delinquent taxes and assessments upon the property as of the date of sale shall be paid from the sale proceeds. It shall be the requirement of the party moving for the sale to properly set forth in the record all outstanding amounts due for taxes and assessments, with payoffs through the date of confirmation of sale, and payment of purchase price.
d. 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, except easements and restrictions of record in the County Clerk's Office of each respective county in which the property is located, and such right of redemption as may exist in favor of the United States of America or the defendant(s). Upon confirmation of sale, the Master Commissioner shall not be required to execute any releases releasing the liens and encumbrances of those parties properly named in the action.
4. 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.
5. The terms and conditions set out herein concerning Order of Sale and/or Delivery of Deed and Terms and Conditions of Sale may be adopted by reference to this rule in the Order or Judgment directing the sale or conveyance or shall be restated therein.
H. Motions for Distribution. Motions for distribution of cancelled sale costs or for distribution of costs of sale shall be filed within ten (10) days immediately following the filing of the Report of Sale or Cancelled Sale and shall be noticed at the convenience of the Court, with all Orders to be submitted to the Master Commissioner for review and approval, along with appropriate number of copies for the Court, Master Commissioner, and parties on the Certificate of Service and postage paid envelopes.
I. Orders of Distribution
1. All Orders requiring distribution of funds held by the Master Commissioner shall set forth all amounts collected, identify the proper recipient(s) and the specific amounts due under the Judgment or Order.
2. For all disbursements to be made to taxing authorities or third-party purchasers of tax bills, a copy of the pertinent tax bill(s) shall be furnished to the Master Commissioner and set forth in the Order of Distribution relating to such sale.
J. Confirmation of Report of Sale. The Master Commissioner after making the sale shall report his/her actions to the Court within three (3) business days of the sale. Ten (10) days after the filing of that report, if no exceptions have been filed thereto and without motion, the sale shall be deemed confirmed and an order confirming the sale with sufficient copies and postage prepaid envelopes, shall be submitted by the Plaintiff or moving party to the Master Commissioner within twenty (20) days after the filing of the Report of Sale, who shall submit same along with the Deed conveying the subject property for approval and entry by the Court. A copy of the order of confirmation shall be served upon the purchaser of the real property. Risk of loss shall pass to the purchaser upon execution of the bond at sale or payment of the purchase price in full, whichever occurs first.
In the event the Plaintiff or moving party shall fail to submit the Order Confirming Sale to the Master Commissioner within twenty (20) days after the filing of the Report of Sale, then the Master Commissioner shall terminate the accrual of any additional interest on the Judgment effective twenty (20) days after the filing of the Report of Sale.
K. 4.11 Bond. In accordance with CR 4.11, in all cases where constructive service has been obtained on any Defendant, each Order for delivery of a deed to a party who has obtained Judgment in the action or the distribution of sale proceeds held by the Master Commissioner shall be accompanied by a bond, in a sum to be fixed by the Court at not less than the fair market value of the property, which shall be the appraised value or the sales price of the property, whichever is higher, and with surety to be approved by the Court.
The bond shall not be required for those Defendants constructively served who are designated as unknown tenants or occupants.
All Orders authorizing the deed or distribution of sale proceeds in any action in which a bond under C.R. 4.11 is required must contain the following language”
“The Defendant(s), __________, are before the Court solely by constructive service. Therefore, prior to the distribution of sale proceeds, or the delivery of a deed, the movant shall post a bond pursuant to CR 4.11 in the penal sum of $__________ and furnish the Master Commissioner a copy thereof before entry of this Order.”
All bonds shall be submitted to the Master Commissioner and the Court for signature and approval along with the fee payable to the Circuit Court Clerk.
L. Fees of the Master Commissioner
1. The fee for each judicial sale shall be calculated as 3% of the final bid. The fee based upon this calculation shall be no less than $400 and shall not exceed $5,000 unless the sale involves more than one property, parcel, or judgment. If the sale involves more than one property, parcel, or judgment, a fee of $650 per additional property, parcel, or judgment shall be assessed in addition to the fee calculated above.
If the sale is withdrawn, a fee of not more than 50% of the sale fee based upon the appraisal value of the property as calculated above, or $400, whichever is greater, shall be assessed. The fee based upon this calculation shall not exceed $2,500 unless the sale involves more than one property, parcel, or judgment. If the sale involves more than one property, parcel, or judgment, then 50% of the $650.00 fee per additional property, parcel, or judgment shall be assessed, in addition to the fee calculated above.
If the sale is withdrawn before an appraisal has been completed, a sale fee of $400.00 shall be assessed; or, upon good cause shown by proper motion, the Circuit Court may approve some other amount of fee not to exceed $2,500.
All cancelled sale fees must be paid, and Order of Distribution entered with the Court before a new sale date is set or a case is dismissed.
2. In addition to the fee authorized in subsection (1), above, the Master Commissioner may also recover necessary direct expenses attributable to the case referred for judicial sale including the cost of postage, copies, faxes, long distance telephone, advertising, appraisers, a licensed auctioneer pursuant to KRS 426.522, and the cost of the care of the property in his or her possession. As referenced in Rule XXV(F), a deposit shall be paid to the Master Commissioner sufficient to pay the direct cost of the sale. If a sale is withdrawn, incurred expenses will not be refunded.
3. A $50 fee shall be assessed for each approval of Order of Sale or Judgment, Report of Sale, Report of Cancelled Sale, and Notice of Sale.
4. A fee of $50 shall be charged for each report and recommendation(s) prepared on tendered foreclosure judgments in uncontested cases for enforcement of a mortgage or other lien. Additionally, a fee of $50 shall be charged for drafting any necessary deed or title and executing same.
5. In all mortgage foreclosure or real estate lien enforcement cases, the Judicial Sale Administrative Fee (JSAF) required by Part IV, Sec. 1(9) of the Administrative Procedures of the Court of Justice shall be collected by the Circuit Clerk along with the original filing fee. In all such actions involving the sale of multiple properties, a separate JSAF and order of referral shall be required for each property. The JSAF shall not be due and payable until a Motion for Judgment and Order of Sale is filed in an action. The Motion for Judgment and Order of Sale shall not be accepted for filing until the Clerk receives the JSAF and Order of Referral. Counsel for Plaintiff shall be responsible for preparation and filing AOC form 141S, Order of Referral, required in conjunction with payment of the JSAF. AOC form 141S, Order of Referral, shall be submitted to the Court after the Master Commissioner has reviewed and approved the JSAF, which Order shall not be entered by the Court until the JSAF is entered. The fee shall be transmitted by the Circuit Court Clerk to the Administrative Office of the Courts as directed by AOC. For a judicial sale that is withdrawn prior to the sale date and later re-scheduled for sale within six (6) months of the previous sale date, an additional $200 JSAF shall not be charged. Any withdrawn sale that is re-scheduled after more than six (6) months from the last sale date shall be considered a “new referral for sale.” For all properties not sold within six (6) months of the date of the last appraisal of the property filed of record, a new Order of Referral and JSAF shall be due and payable before a Motion is filed to reschedule the sale of the property, or in the absence of a motion, before the property can be rescheduled for sale.
6. The Master Commissioner or Receiver shall assess the following fees when paying out money or settling estates:
3% of the first $2,000
2 1/02% for the next $3,000
1 1/02% for the excess over $5,000
The fee shall not be assessed if a sale fee is assessed. For settlement of accounts of insolvent estates this computation shall exclude any amounts exempt from creditors. The fee shall never exceed $5,000.
7. When the Master Commissioner hears a possessory or attachment matter pursuant to KRS Chapter 425, a fee shall be assessed for the hearing and report. This fee shall be paid to the Master Commissioner prior to the hearing.
8. For any other hearing in which there is not a sale, settlement, or receivership, a fee shall be assessed at $60 per hour in quarter-hour increments. These fees shall be paid to the Master Commissioner and shall be due on the fifth working day following the conclusion of the hearing. No more than $600 in hearing fees shall be assessed in any case regardless of the number and length of hearings unless recommended by the Circuit Judge and approved by the Chief Judge for extraordinary circumstances shown. If a case is reopened, additional fees totaling no more than $200 may be assessed unless recommended by the Circuit Judge and approved by the Chief Judge for extraordinary circumstances shown.
9. The fees charged by the Master Commissioner are subject to a schedule promulgated in Part IV of the Administrative Procedures of the Court of Justice and any amendment(s) thereto.
M. Appraiser's Fees
1. In all sales of real estate where an appraisal is required, the fee of each appraiser shall be $150.00, unless otherwise ordered by the Court. The fee shall be paid from the proceeds of the sale. In any action in which real property has not been sold within six (6) months of the date of appraisal, a new appraisal shall be required.
2. In sales of real estate under Judgment or Decree of Court, where an appraisal of commercial industrial real estate or real estate consisting of multiple parcels is required, the Court may, by Order, allow a fee in addition to that set forth above, for the appraisement including the time, labor and skill involved therein.
3. In sales of personal property under Judgment or Decree of Court directing an appraisal of personal property, the fee of each appraiser shall be fixed by the Court and shall be determined on such evidence as the Court may require regarding the kind and character of the property appraised; the number of items of property involved; its value, and the time, labor and skill involved in making said appraisal.
N Auctioneer's Fees. In all sales of real estate where an auctioneer is ordered, the fee for the auctioneer shall be determined by the Court, which sum shall not exceed six percent (6%) of the sale price. The fee shall be paid from the proceeds of the sale.

Credits

HISTORY: Amended effective June 14, 2022. Effective September 5, 2002.

Footnotes

So in original.
Bourbon, Scott and Woodford Circuit Court Rule XXV, KY R BOURBON SCOTT CIR CT Rule XXV
Current with amendments received through November 15, 2023. Some rules may be more current, see credits for details.
End of Document