Detailed Answer
Short answer: In Louisiana, parties can present a consent order (a signed agreement submitted to the court asking the judge to enter it as an order or judgment) asking the court to distribute proceeds from a sale without a contested hearing. However, the court must still make sure the proposed distribution follows Louisiana law, protects third-party rights (secured creditors, lienholders, minors, etc.), and satisfies any statutory procedures that govern the particular kind of sale. The judge may sign the consent order and skip a hearing if the court is satisfied; but the court cannot be bypassed entirely and a private agreement cannot defeat valid statutory liens or the rights of absent parties.
This answer explains how consent orders work in Louisiana, when the court will likely accept them, what can prevent a court from approving a private distribution agreement, and practical steps to try to obtain a consent order that results in distribution of sale proceeds.
How consent orders work in Louisiana courts
A consent order (sometimes called a consent judgment or agreed judgment) is a document in which litigation parties agree on relief and ask the judge to enter the agreement as the court’s order or judgment. Judges routinely enter consent orders because they reflect the parties’ agreement, but the judge must still confirm the order complies with controlling statutes and does not harm persons not before the court.
Because Louisiana courts supervise many types of sales (partition sales, executory or foreclosure sales, sheriff’s sales, or sales after a judgment), the court will often require proof that:
- All parties with a legal interest in the proceeds have been given proper notice and the opportunity to be heard;
- Any prioritized liens, mortgages, taxes, fees, or other statutory claims have been identified and paid (or are being handled in accordance with law);
- The proposed division or disbursement is not opposed by a necessary party or does not violate statute or public policy (for example, distributions that improperly diminish a valid mortgage holder’s rights); and
- The court’s underlying authority over the case is intact (the court retains jurisdiction to approve distributions even after a sale).
When a judge will likely approve a consent order without a hearing
Many courts will sign a consent order without a live hearing when:
- All interested parties have signed the consent or have been given proper statutory notice and have not objected;
- The order includes a clear accounting of sale price, costs, liens, and the proposed net amounts; and
- No statutory requirement mandates a hearing (or the court’s local practice allows ex parte approval in uncontested cases).
For example, two co-owners who sell jointly owned real estate and who are the only parties with an interest may submit a proposed consent judgment dividing net proceeds. If there are no creditors or third-party liens requiring separate handling and the judge is satisfied the accounting is accurate, the judge may sign the order without an oral hearing.
When a consent order will not be enough
A consent agreement cannot be used to short-circuit statutory protections or to defeat the rights of absent parties. Common reasons a court will refuse to sign a consent order or will require a hearing include:
- Outstanding mortgages, tax liens, or recorded liens that must be paid according to statute or priority;
- Creditors or lienholders who were not served or given proper notice;
- Minor, incapacitated, or unrepresented parties whose rights require special review or court-appointed representation;
- Contested claims about the sale price, expenses, or accounting; or
- Local rule or statutory requirement that a hearing or confirmation is required (for example, some sale-confirmation statutes set procedures the court must follow).
Practical steps to try to use a consent order to distribute sale proceeds
1. Prepare a full accounting: sale price, closing costs, commissions, taxes, payoff amounts for mortgages and liens, and the proposed net distribution.
2. Obtain releases or payoff statements from mortgage holders and lien claimants whenever possible. A consent order that shows liens will be paid or released increases chances of approval.
3. Confirm who must be joined or served: list all parties with recorded interests and make sure they are either signatories to the consent or have been given notice consistent with statutory requirements.
4. Draft a proposed consent judgment/order that: (a) recites the sale details and accounting, (b) attaches or references payoff letters and releases, (c) asks the court to order distribution, and (d) requests disbursement by the clerk or sheriff as the court directs.
5. File the proposed consent order and a motion asking the court to enter it. If the case is uncontested and local rules permit, ask for ex parte entry; otherwise be prepared for the court to schedule a brief hearing.
6. If the proceeds are held by the registry of the court or by a sheriff, work with the clerk/sheriff to follow their disbursement procedures once the order is signed.
Special considerations
- Priority of claims: Valid recorded mortgages and tax liens generally take priority over private agreements among owners. A consent order cannot strip a mortgagee of its statutory rights.
- Absent parties: If someone with an interest was not properly made a party to the proceeding (or provided required notice), the court will be reluctant to approve a distribution without giving that person due process.
- Minor or incapacitated parties: The court may require guardianship or additional protections before approving distributions that affect those persons.
- Local practice and judges: Some judges and clerk’s offices routinely approve uncontested consent orders without hearings; others prefer a short confirmation hearing. Check local rules or call the clerk’s office to learn local practice.
Hypothetical example
Two siblings sell jointly owned Lakeview property for $200,000. A recorded mortgage shows a payoff of $120,000. Closing costs and commissions total $6,000. The siblings want the remaining $74,000 split equally. They obtain a mortgage payoff letter and sign an agreement allocating the net proceeds. They file a proposed consent judgment attaching the payoff letter and accounting and ask the court to enter the order authorizing the clerk to disburse $37,000 to each sibling. If no other lienholders exist and no necessary parties are missing, the judge may sign the consent judgment without a hearing and direct the clerk/sheriff to distribute funds accordingly.
Relevant Louisiana statutory resources
Louisiana rules and statutes that may apply include provisions in the Louisiana Code of Civil Procedure governing judgments, partition and sale procedure, and court-distributed funds. For statutory text and to search specific articles, use the Louisiana Legislature’s law search pages:
- Search for rules on consent judgments and judgments: legis.la.gov — consent judgment search
- Search for partition and sale procedures: legis.la.gov — partition search
- Search for sheriff’s sales, executory process, and distribution of proceeds: legis.la.gov — sheriff sale search
Because statutes, case law, and local rules control details and differ by situation, consult the specific statutory provisions that govern the kind of sale at issue.
Disclaimer: This is general information and not legal advice. I am not a lawyer. For advice about your specific situation and to prepare a consent order or confirm local practice, consult a licensed Louisiana attorney.
Helpful Hints
- Get written payoff letters from mortgagees and lienholders before asking the court to approve distribution.
- Include a clear accounting and attach supporting documents to the proposed consent order.
- Identify and serve all recorded interest holders; absence of proper notice is a common reason for rejection.
- Ask the clerk’s office whether local practice allows ex parte entry of uncontested consent orders or whether the judge prefers a short hearing.
- If minors or incapacitated persons are involved, expect extra safeguards (guardian ad litem, judicial confirmation).
- Remember: a private agreement cannot extinguish valid third-party liens — those must be addressed in the distribution.
- When in doubt, hire a Louisiana attorney for a quick review of the proposed consent order and distribution accounting.