Requesting a Commissioner for a Private Sale in a Delaware Partition Case | Delaware Estate Planning | FastCounsel
DE Delaware

Requesting a Commissioner for a Private Sale in a Delaware Partition Case

When and how you can ask a Delaware court to appoint a commissioner to handle a private sale in a partition case

Short answer: Under Delaware law, courts that hear partition actions have equitable power to appoint a neutral officer (often called a commissioner or special master) to oversee the sale of real property. A private sale can be approved, but the court will only allow it when the sale process and terms protect the interests of all owners and creditors. You should expect the court to require notice, valuation evidence, and specific procedures to ensure fairness.

Detailed answer

Partition disputes involve dividing or selling property that co-owners cannot agree how to use or divide. In Delaware, as in many jurisdictions, a court with jurisdiction over partition actions may use its equitable powers to appoint a neutral officer to manage the sale process rather than forcing an in-kind division. That officer may be called a commissioner, special master, or receiver depending on the court and case.

The court will consider a private sale to a specific buyer when the proposed sale fairly maximizes value and protects the rights of all parties and lienholders. Delaware courts will generally only approve a private sale if the court is satisfied that the process is transparent, the price is fair (often supported by an independent appraisal or comparable sales), and adequate safeguards are in place (notice to interested parties, escrow arrangements, and a proposed order outlining the commissioner’s duties and accounting requirements).

Practical elements the court typically reviews:

  • Authority: Whether the complaint and case posture permit sale rather than partition in kind. Courts look to the pleadings and applicable procedural rules and statutes. (See Delaware courts and matters governed by Title 10 of the Delaware Code: https://delcode.delaware.gov/title10/.)
  • Proposed officer: The qualifications, independence, and role of the proposed commissioner or master.
  • Sale terms: Purchase agreement, price, deposit/escrow, contingencies, closing timeline, and how liens and costs will be paid.
  • Value support: An appraisal or market evidence to show the private sale price is reasonable compared to a public auction or open-market sale.
  • Notice and opportunity to object: Adequate notice must go to co-owners, lienholders, and other interested parties, and the court often permits a hearing or time to object.
  • Accounting and distribution: Directions for the commissioner to submit a report, close the sale, pay liens and costs, and distribute proceeds according to the court’s decree.

Procedural steps to ask the court to appoint a commissioner for a private sale (typical approach):

  1. File a motion or proposed order asking the court to appoint a commissioner (or special master) to effect a sale, and attach the proposed purchase agreement and suggested order describing the commissioner’s duties.
  2. Provide an appraisal or other valuation support and evidence that the private sale price is fair.
  3. Propose notice language and a timeline for interested parties and lienholders to be served and to object.
  4. Offer escrow arrangements and proof of the buyer’s funds or financing, and identify how liens and closing costs will be handled.
  5. Attend the hearing (if the court schedules one). Be prepared to explain why a private sale maximizes value and protects other parties compared to a sale at auction or other method.
  6. After approval, the commissioner will typically handle closing, pay required liens and expenses, submit a final account to the court, and seek a final decree distributing net proceeds.

Typical court safeguards for private sales:

  • The court may require a minimum bid or require that an appraised value be met.
  • The court may permit overbidding at a hearing or set a back-up auction if a higher offer appears.
  • The court will often require the commissioner to provide regular reports and a final accounting before distributing funds.

Where to find relevant Delaware procedural authorities and guidance:

Because partition practice can vary by court and by facts (title defects, mortgages, holdout co-owners, minor heirs, liens, tax consequences, and more), outcomes and specific procedures differ from case to case. A judge will tailor relief to protect equitable interests and to ensure an honest and reasonable sale process.

Helpful hints

  • Obtain a current, independent appraisal. Courts are more likely to approve a private sale when it is supported by a credible valuation.
  • Secure the buyer’s proof of funds or loan commitment before asking the court to approve a private sale. Courts want assurance the sale can close.
  • Prepare a proposed order that identifies the commissioner’s duties, sale mechanics, escrow procedures, and the required accounting to the court.
  • Give full, clear notice to all co-owners, lienholders, and known interested parties. Inadequate notice can derail approval.
  • Consider offering a short overbid period or public auction alternative as a backup to strengthen your request.
  • Run a title search and prepare to address mortgages, tax liens, or other encumbrances that must be paid at closing.
  • Document any indemnities or hold-harmless terms the buyer requests; the court must be comfortable the sale does not unfairly prejudice other parties.
  • Talk to a Delaware real property attorney early — they can draft the motion, proposed order, and commissioner responsibilities to match local practice and the judge’s expectations.

Disclaimer: This article explains general Delaware law and practice. It is intended for educational purposes only and does not constitute legal advice. Do not rely on this article as a substitute for advice from a qualified Delaware attorney who has reviewed the full facts of your situation.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.