An upset bid is a higher bid made during a judicial sale, specifically in the context of real estate. This type of bid is intended to challenge the initial sale by offering a greater amount than the last bid. If an upset bid is successfully placed, it can result in the original sale being set aside, allowing the property to be sold to the new bidder.
Upset bids are commonly used in the context of judicial sales, particularly in real estate auctions. They provide a mechanism for individuals or entities to contest a sale by offering a higher price. This process is governed by specific state laws, such as those found in North Carolina, which outline the requirements for making an upset bid. Legal professionals often assist clients in navigating these sales, and individuals can utilize legal templates from US Legal Forms to manage the process themselves.
Here are a couple of examples of abatement:
Example 1: A property is sold at auction for $100,000. A buyer places an upset bid of $105,000, which is accepted, and the original sale is set aside.
Example 2: A property is sold for $200,000. Another bidder places an upset bid of $210,000, meeting the minimum increase requirement, thus challenging the original sale. (hypothetical example)
In North Carolina, the definition and process for upset bids are outlined in N.C. Gen. Stat. § 1-339.25. This statute details the requirements for making an upset bid, including the necessary deposit and timeframes.
| Term | Definition | Key Differences |
|---|---|---|
| Upset Bid | A higher bid made to challenge a judicial sale. | Specifically related to judicial sales and requires a minimum increase. |
| Reserve Bid | A minimum price that must be met for a sale to occur. | Does not involve challenging a sale; it sets a baseline price. |
If you are interested in placing an upset bid, follow these steps:
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