§ 45-21.27. Upset bid on real property; compliance bonds. - North Carolina Statutes

§ 45‑21.27.  Upset bidon real property; compliance bonds.

(a)        An upset bid is anadvanced, increased, or raised bid whereby any person offers to purchase realproperty theretofore sold, for an amount exceeding the reported sale price orlast upset bid by a minimum of five percent (5%) thereof, but in any event witha minimum increase of seven hundred fifty dollars ($750.00). Subject to theprovisions of subsection (b) of this section, an upset bid shall be made bydelivering to the clerk of superior court, with whom the report of sale or lastnotice of upset bid was filed, a deposit in cash or by certified check orcashier's check satisfactory to the clerk in an amount greater than or equal tofive percent (5%) of the amount of the upset bid but in no event less thanseven hundred fifty dollars ($750.00). The deposit required by this sectionshall be filed with the clerk of the superior court, with whom the report ofthe sale or the last notice of upset bid was filed by the close of normalbusiness hours on the tenth day after the filing of the report of the sale orthe last notice of upset bid, and if the tenth day shall fall upon a Sunday orlegal holiday when the courthouse is closed for transactions, or upon a day inwhich the office of the clerk is not open for the regular dispatch of itsbusiness, the deposit may be made and the notice of upset bid filed on the dayfollowing when said office is open for the regular dispatch of its business.Subject to the provisions of G.S. 45‑21.30, there shall be no resales;rather, there may be successive upset bids each of which shall be followed by aperiod of 10 days for a further upset bid. When an upset bid is not filedfollowing a sale, resale, or prior upset bid within the time specified, therights of the parties to the sale or resale become fixed.

(b)        The clerk of thesuperior court may require an upset bidder or the highest bidder at a resaleheld pursuant to G.S. 45‑21.30 also to deposit with the clerk a cashbond, or, in lieu thereof at the option of the bidder, a surety bond, approvedby the clerk. The compliance bond shall be in such amount as the clerk deemsadequate, but in no case greater than the amount of the bid of the person beingrequired to furnish the bond, less the amount of any required deposit. Thecompliance bond shall be payable to the State of North Carolina for the use ofthe parties in interest and shall be conditioned on the principal obligor'scompliance with the bid.

(c),       (d) Repealed bySession Laws 1993, c. 305, s. 16.

(e)        At the same timethat an upset bid on real property is submitted to the court as provided for insubsection (a) above, together with a compliance bond if one is required, theupset bidder shall simultaneously file with the clerk a notice of upset bid.The notice of upset 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.

(e1)      When an upset bid ismade as provided in this section, the clerk shall notify the trustee ormortgagee 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 recordowner(s) of the property.

(f)         When an upset bidis made as provided in this section, the last prior bidder, regardless of howthe bid was made, shall be released from any further obligation on account ofthe bid and any deposit or bond provided by him shall be released.

(g)        Any person offeringto purchase real property by upset bid as permitted in this Article shall besubject to and bound by the terms of the original notice of sale except asmodified by court order or the provisions of this Article.

(h)        The clerk ofsuperior court shall make all such orders as may be just and necessary tosafeguard the interests of all parties, and shall have the authority to fix anddetermine all necessary procedural details with respect to upset bids in allinstances in which this Article fails to make definite provisions as to thatprocedure. (1949,c. 720, s. 1; 1963, c. 377; 1967, c. 979, s. 3; 1993, c. 305, s. 16; 2003‑337,s. 6.)