Legal Definitions - licitation

Licitation refers to the process of selling property at a public auction, particularly when it involves a court-ordered sale of assets that are jointly owned by multiple parties. This often occurs when co-owners cannot agree on how to divide or manage shared property, and a court intervenes to facilitate its sale and distribute the proceeds equitably.

Here are some examples to illustrate this concept:

• Imagine a married couple going through a divorce. They jointly own a house, but neither wants to buy out the other, and they can't agree on a private sale price or process. A court might order a licitation, meaning the house will be sold at a public auction. The proceeds from this sale would then be divided between the ex-spouses according to the court's decree, ensuring a fair and final division of that asset.

• Consider three siblings who inherit a large plot of undeveloped land from their parents. They all have different ideas for the land – one wants to sell it immediately, another wants to hold onto it for future development, and the third wants to build a small cabin. If they cannot reach a unanimous agreement on how to manage or sell the property, one or more siblings might petition a court. The court could then order a licitation, compelling the sale of the land at auction so that the financial value can be equally or proportionally distributed among the heirs, resolving their dispute.

• Two business partners decide to dissolve their company. Among their assets is a commercial building they jointly own. They disagree on its market value and how to split the asset fairly. To avoid further conflict and ensure a transparent resolution, a court might order a licitation for the commercial building. This public auction would establish a clear market price, and the proceeds would then be divided between the partners as part of the business's winding-up process.