Upset Bid: This procedure begins when the City Council receives an offer to purchase the property. The offer may be unsolicited, may be from negotiations or as a response to solicitations from the City. The upset procedure begins if the City Council proposes to accept the offer. Offers will require a deposit of at least five percent of the bid amount. Once the City Council proposes to accept the offer, an advertisement for the upset sale will appear in a local newspaper describing the property, the amount and terms of the offer, the requirements for submitting an upset bid, and the name of the person to whom upset bids should be submitted. The upset bid must be received within ten days from the date the notice is published. All upset bids must be submitted in writing and sealed. Bids will not be opened until the ten-day period has ended. When a bid is successfully raised (or upset), the new bid becomes the current offer and another upset sale begins on the same terms and procedures as the first sale. The initial offeror and all bidders who submit an upset bid must submit a bid deposit in the amount of five percent of the bid amount. The deposit will be forfeited if the current offeror withdraws the offer and released if the offer is upset. A bid deposit will be returned once it is clear the bid was unsuccessful. Once no upset bids are received, the City Council will either accept or reject the final qualifying offer.

Private Sale: Use of this procedure eliminates competitive bidding. However, under this method, deed restrictions will attach to the property for a specified period of time. If the deed restrictions are not adhered to, the City of Durham may take back the property. There are several private sale options available for properties that are for sale to first time, low- to moderate-income home buyers, or to non profit organizations that will develop the property for a public purpose or provide affordable housing .

Public Auction: This procedure begins when the City Council authorizes using this procedure. The City Council will determine if a bid deposit and the amount of the bid deposit will be required, the time the deposit must be made, and the conditions under which the deposit will be forfeited. A notice will be published informing the public of the sale at least thirty days before the sale describing the property, the terms of the sale, the date, time and place of the sale, refers to the resolution that authorized the sale, and the name of the person who can answer inquiries about the property. After the auction, the high bid is reported to the City Council. The City Council will have 30 days from the date the bid is reported to accept or reject that bid. The sale may either be conducted by a licensed auctioneer or by a City of Durham employee.

Under Contract or Sale Pending: When the Sale Condition indicates "under contract or sale pending", the City Council has accepted an offer but the closing has not yet occurred.

NOTE: ALL BID DEPOSITS AND PAYMENTS FOR THE BALANCE OF THE PURCHASE PRICE MUST BE IN THE FORM OF A MONEY ORDER, CASHIERS CHECK OR BANK CHECK MADE PAYABLE TO THE CITY OF DURHAM. PERSONAL CHECKS WILL NOT BE ACCEPTED. IF CONVEYANCE OCCURS AFTER JAN. 1 BUT BEFORE JULY 1, THE BUYER MUST LIST THE PROPERTY FOR TAXATION AS OF THE DAY OF CONVEYANCE. ALL TAXES DUE WILL BE PAID BY THE PURCHASER. THE PROPERTY IS VALUED AS OF THE PRECEDING JANUARY 1 A ND IS TAXED FOR THE FISCAL YEAR EGINNING JULY 1.

The City Council reserves the right to accept or reject all bids without an explanation.