Section 257
Matters to be dealt with by order for sale
of National Land Code (Revised - 2020)
(1)
Every order for sale made by the Court under section 256
shall be in Form 16h and shall—
(a)
provide for the sale to be by public auction;
(b)
require the sale to be held on, or as soon as may be after, a date specified therein, being a date not less than one month after the date on which the order is made;
(c)
specify the total amount due to the chargee at the date on which the order is made;
(d)
require the Registrar of the Court to fix a reserve price for the purpose of the sale, being a price equal to the estimated market value of the land or lease in question;
(e)
specify that no bidder shall be allowed to bid in the sale unless the officer of the Court is satisfied that the bidder possesses, at the time of the sale, the sum equivalent to ten per centum of the reserve price specified under paragraph (d);
(f)
specify that where the full amount of the purchase price is not paid after the fall of the hammer by the successful bidder, the sum specified in paragraph (e) shall be paid as deposit to the chargee and forthwith credited into the account of the chargor pending the settlement of the balance of the purchase price;
(g)
specify that the balance of the purchase price shall be settled on a date not later than one hundred and twenty days from the date of the sale and that there shall be no extension of the period so specified; and
(h)
specify that where the balance of the purchase price is not settled on a date specified under paragraph (g), the sum paid as deposit under paragraph (f) to the chargee shall be forfeited and disposed of in the manner specified under section 267a.
273
Act 828
(2)
Any such order may contain such other directions with respect to the sale as the Court may think fit, and in particular
(but without prejudice to the generality of the foregoing) may, where the charge in question relates to more lands or leases than one, direct—
(a)
that they be offered for sale individually, and in a specified order; and
(b)
that, in the event of the price fetched by one or more of them exceeding an amount specified in the order, or to be determined by the Registrar of the Court, the other or others shall be withdrawn from the sale, and shall cease to be subject to the order.
(3)
In specifying or determining any amount for the purposes of paragraph (2)(b), the Court or the Registrar, as the case may be, shall have regard not only to the liability of the chargor under the charge, but also to any liabilities which (under section 268)
will fall to be discharged out of the proceeds of sale in priority thereto.