§ 8.01-83.1.Open-market sale, sealed bids, or auction.
Chapter 3. Actions · Article 9. Partition · Last amended 2020 · Last verified July 16, 2026
In one sentenceSection 8.01-83.1 requires an open-market sale through a court-appointed broker for property sold in a partition action, unless the court finds sealed bids or an auction would work better for the parties as a group, and it sets the procedure for marketing, reporting, and approving the sale.
A.If the court orders a sale of property in a partition action under the provisions of § 8.01-83, the sale shall be an open-market sale unless the court finds that a sale by sealed bids or at auction would be more economically advantageous and in the best interests of the parties as a group.
B.If the court orders an open-market sale and the parties, not later than 10 days after the entry of the order, agree on a real estate broker licensed in the Commonwealth to offer the property for sale, the court shall appoint the broker and establish a reasonable commission. If the parties do not agree on a broker, the court shall appoint a disinterested real estate broker licensed in the Commonwealth to offer the property for sale and shall establish a reasonable commission. The broker shall offer the property for sale in a commercially reasonable manner at a price no lower than the determination of value and on the terms and conditions established by the court, including setting a reasonable time for marketing the property at its court-determined value pursuant to § 8.01-81.1.
C.If the broker appointed under subsection B obtains within a reasonable time an offer to purchase the property for at least the determination of value:
1.The broker shall promptly file a report containing (i) a description of the property to be sold to each buyer; (ii) the name of each buyer; (iii) the proposed purchase price; (iv) the terms and conditions of the proposed sale, including the terms of any owner financing; (v) the amounts to be paid to lienholders; (vi) a statement of contractual or other arrangements or conditions of the broker's commission; and (vii) other material facts relevant to the sale; and
2.The court shall hold a hearing to approve the same and shall appoint a special commissioner to make the sale and execute the deed pursuant to Article 11 (§ 8.01-96 et seq.).
D.If the broker appointed under subsection B does not obtain within a reasonable time an offer to purchase the property for at least the determination of value, the court, after a hearing, may:
1.Approve the highest outstanding offer, if any;
2.Redetermine the value of the property and order that the property continue to be offered for an additional period of time; or
3.Order that the property be sold by sealed bids or at auction.
E.If the court orders a sale by sealed bids or at auction, the court shall set terms and conditions of such sale by sealed bids or an auction.
F.If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled to a credit against the price in an amount equal to the purchaser's share of the proceeds.
Plain-English Summary
This section governs how a partition sale ordered under § 8.01-83 takes place. Open-market sale is the default method, unless the court finds that a sale by sealed bids or at auction would be more economically advantageous and better serve the parties as a group.
For an open-market sale, the parties get ten days after the order to agree on a licensed real estate broker; if they do, the court appoints that broker and sets a reasonable commission, and if they cannot agree, the court appoints a disinterested licensed broker itself. The broker must market the property in a commercially reasonable way, at a price no lower than the court-determined value under § 8.01-81.1, on terms the court sets, including a reasonable marketing period.
If the broker secures an offer within a reasonable time at or above the determined value, the broker files a report describing the property, the buyer, the price and sale terms (including any owner financing), amounts owed to lienholders, the broker’s commission arrangement, and other material facts, and the court holds a hearing to approve the sale and appoints a special commissioner to close it under Article 11. If no qualifying offer materializes within a reasonable time, the court, after a hearing, may approve the highest offer on the table, redetermine the value and extend marketing, or switch to a sale by sealed bids or auction — for which the court sets its own terms and conditions. Any purchaser who is also entitled to a share of the proceeds gets a credit against the purchase price for that share.
Frequently Asked Questions
How is property normally sold in a Virginia partition action?
Through an open-market sale, unless the court finds that a sale by sealed bids or at auction would be more economically advantageous and in the best interests of the parties as a group.
Who picks the real estate broker for an open-market sale?
The parties may agree on a licensed broker within ten days of the sale order, and the court appoints that broker and sets a commission. If the parties cannot agree, the court appoints a disinterested licensed broker on its own.
What happens once the broker finds a buyer at an acceptable price?
The broker files a report describing the sale terms, the buyer, the price, amounts owed to lienholders, and other material facts, and the court holds a hearing to approve the sale and appoints a special commissioner to close it.
What if the broker can’t find a buyer at the determined value?
After a hearing, the court can approve the best offer received, redetermine the property’s value and continue marketing it, or order a sale by sealed bids or auction instead.
Does a purchaser who also owns a share of the property get any credit at closing?
Yes. A purchaser entitled to a share of the sale proceeds receives a credit against the purchase price equal to that share.
Amendment History
2020, cc. 115, 193.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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