Haw. Prob. R. 70

As amended through September 30, 2024

Rule 70 - Bids and Overbids

(a) When Due; Deposits. A person desiring to bid on a property at a confirmation of sale hearing must deliver the bid to the court clerk prior to the time set for the hearing on the petition, accompanied by the required deposit. The court may determine that bids that are not received in time, or that are not accompanied by the required deposit, will not be considered.

COMMENTARY:

For the clarity and consistency of procedure, bids on a sale of real property are required to be delivered to the clerk prior to the time set for the hearing. The clerk will time-stamp the envelope containing the bid and deposit and then immediately deliver it to the court. However, the court can make exceptions to this general rule where the estate will benefit thereby.

(b) Overbids. If an initial bid has been offered and accepted, a further overbid from any person shall be permitted at least five percent greater than the initial acceptable bid. If such an overbid acceptable to the personal representative is made, the court shall solicit additional bids in such manner and amount as it shall determine. When more than one initial bid is offered prior to the hearing, the highest bid acceptable to the personal representative shall set the base for any additional overbids at the hearing, and where more than one initial bid is for the same amount, the bid received by the court first shall set the base for any additional overbids at the hearing. Overbids, when made, shall clearly state any conditions, contingencies, or financing terms, and the personal representative shall have the sole authority to determine whether an overbid is acceptable.

COMMENTARY:

This rule implements a number of requirements to make for the most efficient handling of confirmation of sale proceedings. The minimum first overbid amount after the initial bid is set at five percent, to save time and ensure meaningful overbids. Thereafter, additional bids will be accepted in such manner and in such amounts as the court determines. The rule further clarifies that it is the decision of the personal representative, not the court, as to whether an overbid is acceptable.

The personal representative decides whether a bid is acceptable. Although a bid may be higher in amount than a previous bid, the personal representative may accept a lower bid whether the terms of the proposed sale are more favorable to the estate. The personal representative may want to consider whether the bid is for cash or on terms, the differences in the terms of different bids anticipating financing, and the credit worthiness of the bidder.

Haw. Prob. R. 70