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  • 1.  Sale of Real Property

    Posted 03-18-2025 16:37

    Listmates: 

     

    I represent a Village that wants to sell real property to a local business.  The business alleges that it actually purchased the property a long time ago but cannot produce any records to substantiate the claim and the property is titled in the name of the village.  The property is an in-holding and is worth less than $5,000.   The Village wants to sell the property to the business for a set price versus having an auction or sealed bid.  Does anyone have any opinions as to whether doing so would be permissible under Neb. Rev. Stat. 17-503.01, which reads as follows:

     

    17-503.01. Real property less than five thousand dollars; sale; procedure.

    Section 17-503 shall not apply to the sale of real property if the authorizing resolution directs the sale of real property, the total fair market value of which is less than five thousand dollars. Following passage of the resolution directing the sale of the property, notice of the sale shall be posted in three prominent places within the city or village for a period of not less than seven days prior to the sale of the property. The notice shall give a general description of the property offered for sale and state the terms and conditions of sale. Confirmation of the sale by passage of an ordinance may be required.

     

     

    17-503.01 clearly requires an auction or sealed bids, however, 17-503.01 seems to be silent on the issue. 

     

    Any input would be appreciated.

     

    Regards,

     

    Thomas David Prickett

    Attorney at Law

    Reinsch, Slattery, Bear, Minahan & Prickett, P.C., L.L.O.

    545 Main Street

    P.O. Box 489

    Plattsmouth, NE 68048

    402-296-6996

     

    This E-mail (including attachments) is covered by the Electronic Communications Privacy Act, U.S.C. Sections 2510-2521, and may be legally privileged. This message is confidential, intended only for the named recipient(s) and may contain information that is privileged, attorney work product, or exempt from disclosure under applicable law.  If you are not the intended recipient(s) you are notified that the dissemination, distribution or copying of this message is strictly prohibited.  If you receive this message in error or are not the named recipient(s), please notify the sender at either the email address  or telephone number above and delete this email from your computer.  Receipt by anyone other than the named recipient(s) is not a waiver of any attorney-client, work product, or other applicable privilege.

     



  • 2.  RE: Sale of Real Property

    Posted 03-18-2025 16:46
    Tom, I am unaware of any exceptions.

    Roger K. Johnson






  • 3.  RE: Sale of Real Property

    Posted 03-18-2025 17:01
    I would have to disagree with your assessment of 17-503. I don't read anything therein that limits the sale to either auction or sealed bid. The standard language in the League of municipalities basic code generally does require either auction or sealed bid, but 17-503 only requires that you outline the terms of the sale in the resolution and notice. 

    Generally, I have worked with municipalities to amend their code to just match what 17-503 States and remove the additional language requiring either sealed bid or public auction. Obviously, there is something to be said for the public accountability that comes with sealed bid or public auction. 

    To that end, I don't see why the terms of sale cannot be private sale to an individual for a set price. I've also used this tactic or theory to list municipal property for sale with a real estate agent. That isn't an auction or a sealed bid necessarily and it's a good way to get maximum value for municipal property.

    Sincerely,

     

    Drew A. Graham

    Associate Attorney

     

    Phone 402.694.5504 | Fax 402.362.5507

    Email dgraham@svehlalaw.net | Web www.svehlalawoffices.com

     

    Aurora 1223 M Street, Aurora, Nebraska 68818

    York 408 N Platte Avenue, Suite A, York, Nebraska 68467

     

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  • 4.  RE: Sale of Real Property

    Posted 03-18-2025 17:05

    Thank you and you are correct.  There was a typo in my email.  It is a local village ordinance that requires auction or sealed bid sale of property not 17-503. 

     

    Thomas David Prickett

    Attorney at Law

    Reinsch, Slattery, Bear, Minahan & Prickett, P.C., L.L.O.

    545 Main Street

    P.O. Box 489

    Plattsmouth, NE 68048

    402-296-6996

     

    This E-mail (including attachments) is covered by the Electronic Communications Privacy Act, U.S.C. Sections 2510-2521, and may be legally privileged. This message is confidential, intended only for the named recipient(s) and may contain information that is privileged, attorney work product, or exempt from disclosure under applicable law.  If you are not the intended recipient(s) you are notified that the dissemination, distribution or copying of this message is strictly prohibited.  If you receive this message in error or are not the named recipient(s), please notify the sender at either the email address  or telephone number above and delete this email from your computer.  Receipt by anyone other than the named recipient(s) is not a waiver of any attorney-client, work product, or other applicable privilege.

     






  • 5.  RE: Sale of Real Property

    Posted 03-18-2025 17:33
    No auction, just follow 17-503.1.

    Roger