What happens when co-owners disagree and a court-appointed commissioner conducts a private sale of your share?
Short answer: In Maine, when co-owners cannot agree, one owner can ask the court to partition the property. If the court orders sale rather than division, it can appoint a commissioner to sell the property. A court-appointed commissioner who handles a private sale must market the property, solicit and evaluate offers, report the recommended sale to the court, and obtain court approval before closing. After approval, sale proceeds (minus costs, liens, and fees) are divided among owners according to their ownership shares. You can object to the sale and ask the court for a hearing before the sale is finalized.
Detailed answer — step-by-step process under Maine law
1. Filing a partition action
If co-owners disagree, a co-owner typically files a partition lawsuit in Maine Superior Court asking the court to divide the property or to sell it and divide the proceeds. The court will notify all co-owners and interested parties.
2. Court decides whether to divide in kind or to sell
The court first considers whether the property can be fairly divided (partition in kind). If physical division is impractical or would significantly reduce value, the court will order a sale instead.
3. Appointment of a commissioner
The court may appoint a neutral commissioner or special master to carry out the sale. That person acts under court supervision and must follow any court orders and instructions about how the sale is to be conducted.
4. How a commissioner handles a private sale
When the court allows a private sale (instead of a public auction), the commissioner typically follows these steps:
- Gather title and lien information, deeds, and relevant documents about the property.
- Obtain or recommend a broker or an appraisal to determine market value and set an acceptable sale price or minimum bid.
- Market the property to potential buyers and solicit offers (advertising, listing with a broker, contacting likely buyers).
- Receive offers and negotiate terms that are consistent with the court’s instructions.
- Prepare a written report for the court summarizing marketing efforts, offers received, recommended sale price, buyer identity, and any conflicts of interest.
- Ask the court to confirm and approve the private sale. The court will usually schedule a hearing or allow a period for parties to object before granting approval.
- After court approval, complete closing, pay off liens and costs, and file a final accounting with the court so proceeds can be distributed among co-owners according to their shares.
5. Your rights during a private sale
- Notice: You must receive notice of the sale steps, the commissioner’s report, and the court hearing to approve the sale.
- Right to object: You can object to the recommended sale (for example, if you believe the price is too low, the marketing was inadequate, or the buyer is connected to the commissioner) and request a hearing.
- Right to bid or buy: You may be able to bid on the property or confirm a purchase of the entire property or another owner’s share, subject to the court’s procedures and other buyers’ rights.
- Accounting and distribution: After sale and payment of expenses and liens, you should receive an accounting and your share of net proceeds according to ownership percentages.
6. Costs, liens, and priority
Costs of the sale (commissioner fees, broker fees, advertising, appraisal, court costs) and any senior liens (mortgages, tax liens) are usually paid out of sale proceeds before owners divide the remainder. If there are disputes about liens or title defects, the court may direct how to handle them or hold back funds until cleared.
7. Court confirmation is important
A private sale generally requires court confirmation to transfer clean title and finalize distribution. If the court refuses confirmation (e.g., sale is unfair), it can vacate the sale and order a different sale method—often a public auction.
Practical examples (hypothetical)
Example 1: Two siblings own a vacation cabin. One wants out. The court appoints a commissioner who lists the cabin with a broker, receives a full-price purchase offer from an unrelated buyer, files a report, and asks the court to confirm the sale. After a short objection period with no valid objections, the court approves the sale and the siblings split net proceeds.
Example 2: Co-owners allege the commissioner favored a buyer who is a relative. A co-owner objects, the court holds a confirmation hearing, finds insufficient marketing and a conflict, and orders a new sale process (often public).
What to do right now — practical next steps
- Collect ownership documents (deed, mortgage statements, tax bills, HOA rules, insurance).
- Ask the court clerk or the commissioner for the marketing plan, offers, and the commissioner’s report early so you can evaluate fairness.
- If you think the sale price is too low or the process unfair, file a written objection and ask for a hearing.
- Consider hiring a Maine attorney experienced in partition and real estate law to represent you at hearings and protect your share.
- Get an independent appraisal or broker opinion so you can challenge a sale price that seems unreasonably low.
Helpful Hints
- Keep clear records: keep copies of all notices, offers, and the commissioner’s filings. Those documents matter at court hearings.
- Act quickly: deadlines in court proceedings can be short; missing a deadline can waive your right to object.
- Watch for conflicts: if the commissioner or buyer has a relationship with each other, raise the issue promptly with the court.
- Know costs: partition actions can be costly. Expect commissioner fees, broker fees, appraisal costs, and court costs to reduce net proceeds.
- Consider alternatives: mediation, one co-owner buying out others, or negotiated sales can avoid litigation and cut costs.
- Title and liens: ask the commissioner for a title search. Existing mortgages or tax liens must normally be paid from the sale proceeds.
Where to find Maine resources
For courts and procedural information, visit the Maine Judicial Branch: https://www.courts.maine.gov/
To read Maine statutes and search for terms such as “partition,” use the Maine Legislature’s statutes site: https://legislature.maine.gov/statutes/
Disclaimer: This article is informational only and does not constitute legal advice. It explains general principles about partition and sale procedures in Maine. The law is fact-specific and can change; you should speak with a licensed Maine attorney about your particular situation before taking action.