Master Commissioner - Franklin Circuit Court
COMMONWEALTH OF KENTUCKY
48TH JUDICIAL CIRCUIT
RULES OF COURT
RULE 19: MASTER COMMISSIONER SALES
19.01. Master Commissioner Approval.
(a) A copy of all Motions for Judgment and Order of Sale shall be served on the Master Commissioner not less than seven days prior to the motion hour at which the motion is to be heard. Tendered Orders must be in a format approved by the Master Commissioner and the Court. The Judgment and Order of Sale shall not include any requirement that the purchaser be responsible for any specific taxes, but should set out the "current" tax year (being the calendar year in which the Commissioner's sale is held). The format for the Judgment and Order of Sale is provided below; however, the Master Commissioner may, if necessary from time to time, amend said sample Judgment and Order of Sale. The Master Commissioner will provide additional guidance for special situations.
(b) The $200 AOC fee and, if applicable, proof of compliance with the Franklin County Foreclosure Diversion Program must be submitted to the Court prior to entry of any Judgment and Order of Sale.
(c) In the event any party has been constructively served, a bond pursuant to CR 4.11 must be obtained and filed before the Deed will be transmitted.
(d) 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 Master Commissioner or directing the delivery of a deed must be submitted to the Master Commissioner for certification that it complies with these rules and may be rejected if found deficient or not in accordance with all applicable statutes and rules. No Order of Sale will be entered until reviewed and approved by the Master Commissioner. All judgments and orders subject to this provision shall have a signature block for the Master Commissioner to sign evidencing approval by the Master Commissioner.
(e) Upon receipt of the entered Judgment and Order of Sale and Order Referring Case to Master Commissioner for Judicial Sale, the Master Commissioner will set a sale date. Said sale shall be set for the next sale date or generally within 4-6 weeks of entry of the Judgment. Appraisals are ordered when notice of the sale is given and should be posted on the website within 3-4 business days (www.franklincomc.com).
(f) In certain circumstances, the Master Commissioner may request a deposit for costs prior to scheduling a sale.
19.02. Time, Place and Terms of Sale.
(a) The date and time of all sales shall be established by the Master Commissioner. Sales are held on the fourth Monday of each month at 11:30 a.m. unless noticed otherwise. Rescheduled sales shall be set within a reasonable time after receipt of the Court's order. Unless otherwise ordered and advertised, all sales shall be conducted in Courtroom C on the second floor of the Franklin County Courthouse at 222 St. Clair Street, Frankfort, Kentucky, upon the terms and conditions set out in the sample Judgment and Order of Sale below or as amended after approval of the Court.
(b) The Master Commissioner may schedule multiple sales for the same date and time and conduct the individual sales sequentially. The Master Commissioner may announce the terms of the judicial sales once at the beginning of all sales to be held on that day.
19.03. Deposit - Resale if Not Made. Except where otherwise ordered by the Court, the cash deposit specified in the order or judgment of sale shall be made immediately in every case. If the deposit is not made immediately, the Master Commissioner shall reject the bid and resell the property forthwith. In making such resale, the Master Commissioner shall receive no bid from the rejected bidder. Deposits made to the Master Commissioner shall stop interest on the bid to the extent of any deposit as of the date of payment to the Master Commissioner.
19.04 Proceeds from Sale of Real Estate. The Master Commissioner shall collect the proceeds from sales and upon appropriate orders distribute same or a portion thereof to parties as approved by the Court. All remaining funds shall be held by the Master Commissioner pending appropriate orders of the Court.
19.05 Confirmation of Report of Sale. After making the sale the Master Commissioner shall report his actions to the Court with service on all parties not in default. Thereafter, the Master Commissioner will file the Motion to Confirm and attach draft copies of the Order Confirming Sale, Deed and Order of Distribution. Approximately two weeks after the filing and service of the Report of Sale and Motion to Confirm, if no objections have been filed thereto, the sale shall be confirmed. A copy of the Order Confirming Sale and Order of Distribution shall be served upon all parties not in default and upon the purchaser.
19.06 Fees of the Commissioner. The Master Commissioner shall be entitled to those fees set forth in Part IV of the Administrative Procedures of the Court of Justice.
19.07 Order of Distribution.
(a) 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 each under the judgment or order. Within five days of receipt of the Master Commissioner's Report of Sale, the Plaintiff or other party entitled to proceeds from the sale, shall deliver to the Master Commissioner a final statement of all monies due the Plaintiff (or party obtaining judgment) so that the Master Commissioner can complete the Order of Distribution.
(b) If disbursements are to be made to taxing authorities, the Master Commissioner will request payoffs from the taxing authorities and set out the amount(s) due in the Order of Distribution. Costs due in cases requiring payment to taxing authorities must be paid to the Master Commissioner at least seven days prior to the due date of said taxes as shown on the Order of Distribution, giving the Master Commissioner's office sufficient time to pay the bill(s) with the amount(s)listed in the order, which payments will be made by regular U.S. Mail. In the event a sale does not generate sufficient funds to pay all liens properly before the Court, the Master Commissioner shall prorate the amounts due to the appropriate parties and set out said proration on the Order of Distribution.
19.08 Appraiser's Fees.
(a) In residential sales where an appraisal is required, the fee of each appraiser shall be $125.00, unless otherwise ordered by the Court. Appraisal fees for residential sales when the Judgment amount is in excess of $200,000.00, shall be $200.00 unless otherwise ordered by the Court.
(b) In the event a sale is canceled and rescheduled within four months of the original sale date, a new appraisal will not be required. However, a fee of $50.00 shall be paid to one appraiser for the re-posting of the Notice of Commissioner's Sale pursuant to the Judgment. In the event a sale is canceled and not rescheduled within four months, an updated appraisal will be requested at an additional fee of $75.00 to each appraiser (up to one year from the original appraisal).
(c) Appraiser's fees for commercial, farm and other sales shall be set by the Court upon recommendation from the Master Commissioner.
(d) Appraiser's fees shall be paid from the proceeds of sale.
19.08 Cancellation of Sales.
(a) The Master Commissioner, upon receipt of a written request from the Plaintiff received by the Master Commissioner's office no later than 10:00 am EST on the day of the sale by mail, fax or e-mail and written confirmation from the Master Commissioner, may postpone any Court ordered sale for good cause shown. In the event of postponement prior to sale, the Master Commissioner may immediately move the Court for payment of costs incurred prior to postponement in accordance with Part IV of the Administrative Procedures of the Court of Justice. In cancellations due to a bankruptcy filing, the sale may be canceled up to the time of the actual sale. Receipt of cancellation requests MUST BE acknowledged by the Master Commissioner to be valid. In addition, in order to comply with the most recent Administrative Procedures set out by the Administrative Office of the Courts, the Master Commissioner shall immediately reschedule the sale for the next available sale date so long as that date falls within the 90-day sale window unless (1) the Court grants a 30-days extension; or (2) an Order is entered vacating the Order Referring Case to Master Commissioner for Judicial Sale.
(b) No sale will be rescheduled by the Master Commissioner without the Plaintiff making a motion to reschedule the sale, with proper notice of the date and time of the hearing on the motion to the Master Commissioner and parties.
(c) The Master Commissioner will notify counsel for the Plaintiff (or party obtaining Order of Sale) prior to advertising the sale that the Master Commissioner is ready to proceed with notice of the Master Commissioner's intent to proceed with the sale. If the Judgment holder requesting the sale directs the Master Commissioner to proceed with the sale but subsequently cancels the sale prior to the actual sale date without good cause, the costs incurred in connection with the sale shall, upon order of the Court, be borne by said party and not charged back to the defendant or added to the judgment.
19.09 Acceptance of Written Bids From Plaintiff.
(a) The Master Commissioner, upon receipt of written notice by mail, fax or e-mail from the Plaintiff received no later than 4:00 pm EST on the last business day immediately preceding the sale date, will accept one written bid from the Plaintiff or party requesting the sale only. It is the responsibility of said party to confirm the Commissioner's receipt of said bid.
(b) Unless confirmed by the Master Commissioner, said bid shall not be binding on the Master Commissioner or the Court. Master Commissioner will not accept instructions or written bids directing that the sale be withdrawn or canceled in the event local counsel or a representative of the lender fails to appear at the sale.
19.10 Information Provided on Website. The Master Commissioner may maintain a website setting out the terms of sale and a list of all pending sales including the names of the parties, the property address and brief legal description, the date of the sale and the amount of the appraisal. However, this is for the convenience of the public, and the terms of the Orders of the Court and those announced by the Master Commissioner at the time of the sale shall control. The results of the sale may be posted to the website within 24 hours of the sale or as soon thereafter as practicable.