Last updated October 29, 2026

Business Owners in Chapter 11: Selling Real Property in South Florida

Short answer: In a Chapter 11 case the debtor usually stays in control as the debtor in possession, with most of a trustee's rights and powers (11 U.S.C. 1107(a)). Selling real property outside the ordinary course of business still needs notice and a court order (11 U.S.C. 363(b)), and a broker is hired only by court order. Your Chapter 11 counsel decides the strategy and prepares every court paper; we list and sell residential property after the court approves our employment.

All five counties we serve, Miami-Dade, Broward, Palm Beach, Martin and St. Lucie, are in the Southern District of Florida. This page is for owners and their counsel when a company or an individual in Chapter 11 holds houses, condos or other residential property.

Informational purposes only. This is not legal or tax advice and no attorney-client relationship is created by reading it. PBP Real Estate, LLC is a licensed Florida real estate brokerage (License CQ1064615), not a law firm. We list and sell real estate; we do not advise on debts, on whether or how to file, on exemptions or on the bankruptcy case itself. Ask your bankruptcy attorney about your situation.

Can a business in Chapter 11 sell real estate?

Yes, with the court's approval for any sale outside the ordinary course. Section 1107(a) gives a debtor in possession the rights and powers of a trustee, subject to the limits the court sets. Section 363(b)(1) then lets the trustee, and so the debtor in possession, sell estate property outside the ordinary course of business only after notice and a hearing. The bankruptcy rules require notice of the proposed sale (Fed.

R. Bankr. P. 6004(a)), normally 21 days to creditors under Rule 2002(a)(2), and an order approving the sale is stayed for 14 days unless the court orders otherwise (Rule 6004(h)).

Where selling property is the business itself, for example homes held as inventory, section 363(c)(1) allows ordinary-course sales without notice or a hearing unless the court orders otherwise. Whether a particular sale is ordinary course is a question for your counsel and, if anyone disputes it, the court. We do not decide it.

How is a real estate broker hired in Chapter 11?

By application and court order, before any marketing. Section 327(a) lets a trustee employ professionals with the court's approval if they hold no interest adverse to the estate and are disinterested; section 1107(a) gives a debtor in possession the same power. Rule 2014 requires an application with a verified statement of the professional's connections with the debtor, creditors and other parties in interest.

Two practical points. First, under section 1107(b), a broker is not disqualified solely because it worked for the debtor before the case was filed, so a listing that was already in place can be continued if the court approves the employment. Second, nothing is marketed and no cost is incurred for the estate until the order is entered. The commission is paid at closing as the court approves.

Counsel prepares the application, the motion and the proposed order. Our page for trustees and attorneys lists each document we supply.

Can the property be sold free and clear of liens?

Only in the situations section 363(f) lists. The court may approve a sale free and clear of another party's interest if applicable law permits it, the party consents, the interest is a lien and the price exceeds all liens on the property, the interest is in bona fide dispute, or the party could be compelled to accept money for its interest. A motion to sell free and clear must be served on the lienholders (Rule 6004(c)).

Which subsection applies, and how each lien is paid, are counsel's and the court's questions. On the real estate side, the order tells the title company how liens are paid at closing, and we make sure the buyer's side and the title company have it early.

What protects the buyer after the court approves the sale?

Section 363(m), for a buyer acting in good faith. Under section 363(m), reversing or modifying a sale approval on appeal does not affect the validity of the sale to a buyer who purchased in good faith, unless the sale was stayed pending appeal. Buyers, their lenders and their title insurers read the sale order closely for that reason.

A clean marketing record supports that order. We document how the property was exposed to the market, every offer received with its date, price, terms and financing, and why the debtor accepted the offer it did. Our guide for buyers of bankruptcy property explains the process from the buyer's side.

What does PBP Real Estate not do in a Chapter 11 case?

Anything outside the real estate. We do not advise on whether to sell or keep a property, on the plan, on financing, on claims or on the restructuring. We do not prepare applications, motions, orders or another party's declarations. We start work for the estate only after the employment order. These are decisions for the debtor, its counsel and the court.

What we do bring: Gia Freer, Broker of Record, handles every file personally, in English or Spanish, with a written price opinion prepared by hand from current Beaches MLS closings. Gia and Grant Freer have closed 767 transactions and $203,762,527 since 2000, 671 of them since 2013 (Beaches MLS, agent production report, as of October 19, 2026). Gia and Grant earned the CDPE designation in 2012, and our probate work runs on the same kind of court timeline.

Related

• Selling a house in a Florida bankruptcy: the hub
• For bankruptcy trustees and attorneys
• The bankruptcy home sale, step by step
• Buying a house from a bankruptcy trustee
• Bankruptcy property information form
• Selling in other special situations

Published by Gia Freer, Broker of Record, PBP Real Estate, LLC · Florida broker license BK689801 · brokerage license CQ1064615. Last updated October 29, 2026.