Citations Affected: IC 36-1-11-4.
Synopsis: Sale of real property by local government. Provides that a
local government disposing agent may hire a broker to sell real
property directly rather than using the bid process if: (1) the disposing
agent publishes a notice of the determination to hire the broker; and (2)
the property has been up for bid for at least 60 days before the broker
is hired, and either no bids were received or the disposing agent has
rejected all bids that were received.
Effective: July 1, 2011.
January 10, 2011, read first time and referred to Committee on Local Government.
A BILL FOR AN ACT to amend the Indiana Code concerning local
to conduct a public auction. The advertising conducted by the
auctioneer is in addition to any other notice required by law and shall
include a detailed description of the property to be sold stating the key
numbers, if any, of the tracts within that property. If the disposing agent
determines that the best sale of the property can be made by letting the
bidders determine certain conditions of the sale (such as required
zoning or soil or drainage conditions) as a prerequisite to purchasing
the property, the disposing agent may permit the bidders to specify
those conditions. The notice must state the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period determined by the disposing agent of not more than sixty (60) days.
(3) The property may not be sold to a person who is ineligible under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(d) A bid must be open to public inspection. A bidder may raise the bidder's bid, and subject to subsection (e), that raise takes effect after the board has given written notice of that raise to the other bidders.
(e) The disposing agent may also engage an auctioneer licensed under IC 25-6.1 to conduct a sale by public auction. The auction may be conducted either at the time for beginning the sale in accordance with the public notice or after the beginning of the sale. The disposing agent shall give each bidder who has submitted a bid written notice of the time and place of the auction.
(f) The disposing agent may, before expiration of the time set out in the notice, sell the property to the highest and best bidder. The highest and best bidder must have complied with any requirement under subsection (c)(4). However, the disposing agent may sell the property for less than ninety percent (90%) of the appraised value of the tracts only after having an additional notice of the sale published in accordance with subsection (c). The disposing agent may reject all bids.
(g) If the disposing agent determines that, in the exercise of good business judgment, the disposing agent should hire a broker or auctioneer to sell the property, the disposing agent may do so and pay the broker or auctioneer a reasonable compensation out of the gross proceeds of the sale.
However, the disposing agent must still comply
with the procedural requirements of this section. A disposing agent
may hire a broker to sell real property directly rather than using
the bid process under subsections (c) through (f) if:
(1) the disposing agent publishes a notice of the determination to hire the broker in accordance with IC 5-3-1; and
(2) the property has been up for bid for at least sixty (60) days before the broker is hired, and either no bids were received or the disposing agent has rejected all bids that were received.
The disposing agent may hire one (1) of the appraisers as the broker or auctioneer.