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LSDefine
Simple English definitions for legal terms
forced sale
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A quick definition of forced sale:
A forced sale is when someone has to sell something because of a legal reason, like a court order or bankruptcy. It's not because they want to sell it for money. If someone sells something because they want to, it's not a forced sale. For example, if someone can't pay their mortgage, the bank might make them sell their house in a forced sale.
A more thorough explanation:
A forced sale is a type of sale that happens when someone is legally required to sell something, rather than choosing to sell it for economic reasons. This can happen in situations like a mortgage foreclosure or a bankruptcy proceeding.
For example, if someone falls behind on their mortgage payments and the bank forecloses on their home, the bank may be legally required to sell the home in a forced sale. Similarly, if a business goes bankrupt, the court may order a forced sale of the company's assets to pay off its debts.
It's important to note that a forced sale is different from a voluntary sale, which happens when someone chooses to sell something for economic reasons, such as wanting to downsize or move to a new location.