How a Court-Appointed Commissioner Handles a Private Sale When Co-Owners Disagree

Detailed Answer

If co-owners of real property in Montana cannot agree on keeping or dividing property, one owner can ask the district court for a partition action. When the court determines that physical division is impractical or unfair, it may order the property sold and appoint a commissioner to carry out that sale. The commissioner acts under the court’s directions to convert the property into sale proceeds and then distribute those proceeds according to the owners’ interests and any secured liens.

How the process usually works in Montana

Filing the partition action. A co-owner files a petition in Montana district court asking for partition by sale. The petition names all co-owners and parties with recorded interests. The court gives notice and holds hearings to decide whether partition in kind or sale is appropriate.
Court orders sale and appoints a commissioner. If the court orders sale, it will usually appoint a neutral commissioner (sometimes called a referee or commissioner of sale) and set the commissioner s authority and any conditions of sale. The court order controls whether the sale may be private or must be public and what steps the commissioner must follow.
Commissioner prepares for sale. The commissioner locates title records, pays or provides for the payment of secured liens or tax obligations as ordered, gives notice to interested parties, and may arrange title clearance, inspections, or appraisals. The commissioner must follow the court s instructions and applicable Montana procedural rules.
Private sale procedure. If the court authorizes a private sale rather than a public auction, the commissioner typically markets the property, solicits offers, and negotiates terms in good faith. A proposed private sale is usually presented to the court for approval. The court evaluates whether the sale is reasonable, at fair market value, and in the co-owners best interests before confirming it.
Court confirmation or rejection. After a proposed private sale, the commissioner files a report with the court describing the sale terms, the purchaser, any sale costs, and the proposed distribution of proceeds. The court schedules a confirmation hearing. Co-owners and lienholders may object. If the court finds the sale fair and properly conducted, it confirms the sale and orders distribution. If not, the court may reject the sale and direct a different sale process or public auction.
Distribution of proceeds and accounting. Once the sale is confirmed, the commissioner pays expenses (commissions, taxes, closing costs), satisfies prior recorded liens in order of priority, and distributes remaining net proceeds to the co-owners in proportion to their ownership interests (unless the court orders a different allocation). The commissioner then files a final accounting and requests discharge.

The commissioner s authority and limits

The commissioner acts under the court order; the court sets the scope of authority.
A commissioner cannot transfer title until the court confirms the sale and signs the decree or order that conveys title or authorizes transfer.
The commissioner must give required notices and follow court-imposed procedures for bids, marketing, and acceptance of offers.
Parties can object to actions by filing written objections or appearing at hearings; the court resolves disputes.

What you can do if you disagree with a proposed private sale

Request a hearing on the commissioner s sale report and raise specific objections: low price, inadequate marketing, conflicts of interest, or procedural defects.
Offer an alternative: submit an offer to buy the property or propose a different sale method (public auction) and provide evidence of market value (appraisal).
Ask the court to require additional marketing or appraisal before approving the private sale.
Preserve your rights by appearing in the action (or filing timely written objections) and by seeking counsel to present evidence and legal arguments at the confirmation hearing.

How proceeds are divided

After payment of valid liens, taxes, and sale costs, the net sale proceeds are distributed to co-owners according to their ownership shares. If one co-owner has advanced funds or obtained a lien, the court may order reimbursement or priority consistent with recorded interests and Montana law. The commissioner provides a final accounting to the court showing payments and distributions.

Where Montana law and rules apply

Montana district courts hear partition actions and control appointment and duties of commissioners. For statutory text, court rules, and procedure, see the Montana Code Annotated and the Montana Judicial Branch site for district court procedures. You can search relevant statutes and procedural rules at the Montana Legislature s code site: https://leg.mt.gov/bills/mca/ and at the Montana Judicial Branch: https://courts.mt.gov/.

If you want to challenge the commissioner or the sale

Timely object at the sale confirmation hearing and present evidence supporting your objection. If the court confirms a sale you believe wrongful, you may have limited appellate remedies; strict deadlines and standards apply. Consulting a licensed Montana attorney promptly helps preserve remedies and meet procedural requirements.

Helpful Hints

Get a professional appraisal early to establish market value.
Keep documentation of your ownership share, payments, mortgage or lien records, and any improvements you paid for.
Try mediation or negotiated buyout before court; courts often expect reasonable attempts to settle disputes among co-owners.
Attend hearings and file written objections if you disagree with marketing, price, or the purchaser.
Ask the court for clear limits on the commissioner s authority (e.g., minimum acceptable price, advertising requirements).
Remember tax consequences: sale proceeds can have capital gains or other tax effects—consult a tax professional.
Hire a Montana-licensed attorney to protect your rights in court and to review sale terms and the commissioner s report.

Disclaimer

This article is for general informational purposes only and does not constitute legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed attorney in Montana.