§651-95  Sale where real property cannot be
divided; application of proceeds.  If the defendant is entitled to an
exemption as provided in section 651-92, and if, from the appraiser's report,
it appears to the court that the real property claimed exceeds in value the
amount of the real property exemption, all liens and encumbrances recorded
prior to the judgment lien under which sale is to be made and an amount equal
to estimated execution costs, attorney's and appraiser's fees, and other fees,
and that it cannot be divided under section 651-94, the court shall make an
order directing its sale under the execution, subject to all liens and
encumbrances recorded prior to the lien under which the sale is to be made.



If the sale is made, the proceeds thereof shall
be applied in the following order of priority:  first, to the defendant to the
amount of the exemption; second, to the satisfaction of the execution costs,
attorney's and appraiser's fees, and any other fees that may necessarily arise;
third, to the satisfaction of the lien under which the sale is made; fourth, to
the discharge of any subsequent liens and encumbrances according to their
priority, and fifth, the balance, if any, to the defendant.  The sale shall
operate to extinguish subsequent liens and encumbrances without forcing prior
lienors and encumbrancers to exercise their right of recovery. [L 1976, c 136,
pt of §1; am L 1978, c 46, §9; gen ch 1985]



 



Case Notes



 



  Mentioned.  61 H. 590, 607 P.2d 411.