Disclaimer: I am not a lawyer. This is general information about Arkansas law and not legal advice. For advice about your specific situation, consult a licensed Arkansas attorney.

How Arkansas courts handle a private sale by a court-appointed commissioner when co-owners disagree

When co-owners of real property cannot agree, a co-owner can ask the court to resolve the dispute through a partition action. In a partition action the court may order the property physically divided (partition in kind) or sold and the proceeds divided (partition by sale). If the court orders sale and the parties cannot agree on the terms, the court can appoint a commissioner (sometimes called a special commissioner or master) to carry out the sale. Below is a step-by-step explanation of the typical process and the rights and options you retain under Arkansas practice.

1. Initiating the partition action and appointment of a commissioner

A co-owner starts the process by filing a partition action in the appropriate Arkansas circuit court. If the court concludes partition by sale is appropriate, the judge may appoint a commissioner and enter an order describing the commissioner’s duties: obtaining appraisals, soliciting offers, conducting a private sale (if authorized), and reporting the sale to the court for confirmation.

2. The commissioner’s duties in a private sale

Although the exact order controls, common duties include:

• Obtain one or more independent appraisals or market valuations to establish a baseline value.
• Provide notice to all parties and lienholders of the intent to sell, the proposed terms, and any listing or marketing activity.
• Market the property reasonably to achieve the best price the commissioner can under the court’s instructions. That may include listing with a broker, soliciting offers from known buyers, or accepting a buyer procured by a party.
• Accept a private sale only if the sale is at fair market value (or otherwise meets standards set in the court’s order) and if required notices and opportunity to object are provided.
• Close the sale with appropriate title instruments and deposit sale proceeds into the court registry or other escrow as ordered, after paying court-allowed costs, liens, taxes, and commissions.

3. Notice, opportunity to object, and right of first refusal

The court’s order and Arkansas court practice require the commissioner to give notice to the co-owners and other interested parties before finalizing a private sale. Co-owners will typically have an opportunity to object to the sale or the sale price. In many partition proceedings, the court expects the commissioner to give co-owners a reasonable chance to submit competing offers or to buy the share themselves (a practical right of first refusal). If a co-owner wants to buy the property, the co-owner should move quickly and be prepared with financing and a written offer.

4. Commissioner’s report, objections, and court confirmation

After a private sale, the commissioner files a written report with the court. The report usually includes:

• Terms of the sale and a copy of the purchase agreement
• Evidence of notice to the parties and lienholders
• An accounting showing proceeds, costs, and proposed distribution

Once the report is filed, the court sets a deadline for objections. If a co-owner objects, the court will hold a hearing to resolve disputes over whether the sale was fair, whether required procedures were followed, or whether the sale price unreasonably undervalued the property. If no adequate objections are raised, the court generally confirms the sale and authorizes distribution of proceeds after satisfying liens and expenses.

5. Remedies and appeals

If you believe the commissioner failed to follow the court order, ignored required notices, or approved an unfair private sale, you can file a written objection and ask the court to: set aside or rescind the sale, order a public auction instead, require additional marketing or appraisal, or adjust the distribution. If the court confirms the sale and you still disagree on legal grounds, you may have the right to appeal the court’s decision to a higher court. Time limits for objections and appeals are strictly enforced, so act promptly.

6. Practical consequences for a co-owner

Key practical points you should expect:

• You will receive notice of the sale process, and you must object in court to preserve your rights.
• If you want to keep the property, prepare to make a competitive offer or arrange financing quickly.
• The sale price may be lower than an ideal retail sale if marketing is limited; a public auction can sometimes yield a higher price, depending on market conditions.
• Net proceeds are divided according to ownership shares after paying liens, taxes, court costs, and commissioner or broker fees.

Where to find Arkansas procedures and statutes

Partition practice and procedural rules are handled by Arkansas circuit courts and are governed by Arkansas statutes and court rules. For text of the Arkansas Code and to search for statutory provisions on partition and property sales, consult the Arkansas General Assembly website: https://www.arkleg.state.ar.us. For Arkansas court rules and procedural guidance, see the Arkansas Judiciary site: https://www.arcourts.gov.

Helpful Hints

• Gather documents now: deed, mortgage statements, tax bills, recent appraisals, lease agreements, and any prior communications with co-owners.
• Get an independent appraisal or broker opinion of value before the commissioner acts. This gives you a benchmark to challenge a low private offer.
• If you want to keep the property, be ready to make a clean, financed offer quickly—courts favor buyers who close without delay.
• File timely objections in court if you believe the commissioner ignored the court’s order or accepted an unreasonable sale price.
• Ask the commissioner (or the court) for a written marketing plan and proof of notice to all parties and lienholders.
• Consider negotiating with co-owners before the sale—settlement can avoid costs, time, and the risk of a low sale price.
• Hire an Arkansas real property attorney experienced in partition matters to protect your rights, meet deadlines, and present objections effectively.

Questions to ask an attorney

• How long will the partition action likely take in my county?
• Can I buy out the other co-owners, and what is a fair buyout price?
• What specific objections should I raise if the commissioner accepts a private sale at a low price?
• What costs and liens will be paid before distribution of sale proceeds?
• What are my options (and likely outcomes) if I want the court to order a public auction instead of a private sale?