Detailed answer: How the process typically works in New Mexico

When co-owners of real property cannot agree about use, sale, or partition, one owner can ask a New Mexico court to dissolve the co-ownership through a partition action. If the court decides a sale is necessary rather than dividing the land physically, it can appoint a commissioner (sometimes called a referee) to handle the sale. Below are the common steps and what each means for you.

1. Filing a partition action

An owner starts by filing a partition lawsuit in district court asking the court to divide or sell the property. The complaint names all co-owners and any parties with recorded interests (mortgages, liens). The court has authority to order partition or sale when co-owners cannot agree.

2. Court decides whether to partition in kind or order sale

The court first considers whether the property can be divided physically (partition in kind). If dividing would be impractical or unfair, the court usually orders a sale. The judge may specifically authorize a private sale rather than a public auction when that is in the best interest of the owners and the court approves the sale process.

3. Appointment and role of the commissioner

The court may appoint a neutral commissioner to handle tasks the judge delegates. Typical duties include:

• Valuing the property or arranging for appraisals.
• Marketing the property and soliciting offers if the court permits a private sale.
• Negotiating or accepting a private sale contract under the court’s instructions.
• Filing a written report with the court showing the sale terms, bids received, expenses, and recommended distribution of proceeds.
• Holding sale proceeds in trust pending court confirmation and distribution.

4. Notice and opportunity to object

Co-owners must receive court-ordered notice about the sale process, the commissioner’s report, and any hearing to confirm the sale. You have the right to:

• Review the sale terms and the commissioner’s accounting.
• File objections to the sale or to the report if you believe the sale was unfair, the price is inadequate, or the commissioner violated the court’s instructions.
• Request a hearing where the court will consider objections before confirming or rejecting the sale.

5. Confirmation hearing and court approval

The court reviews the sale at a confirmation hearing. If the judge finds the sale was conducted properly and the price is fair (or that the proposed sale is otherwise in the owners’ best interests), the judge confirms it. The court’s confirmation typically clears title for the buyer and allows the commissioner to distribute net proceeds to owners after paying liens, costs, and commissions.

6. Distribution of proceeds and accounting

After confirmation, the commissioner pays outstanding liens, taxes, sale costs, and then divides the remaining funds among the co-owners per their ownership interests unless the court’s order specifies a different allocation. The commissioner must file an accounting showing all receipts and disbursements.

7. Post-sale remedies and appeals

If you objected and the court confirmed the sale anyway, you may have options to appeal the confirmation or to seek other relief. Timelines and grounds for appeal depend on procedural rules and the specifics of the case. Consult a lawyer quickly to preserve rights and meet deadlines.

What this means for you practically

• You will not be left completely out of the process. You must get notice and can object to unfair sales or procedures.
• If a private sale is approved, it often seeks a higher net return than a forced auction, but the court must be satisfied the sale is reasonable and handled fairly.
• You can attempt to buy out other owners, negotiate a partition in kind, or challenge the valuation and sales process with evidence at the confirmation hearing.
• Liens and mortgages against the property are paid from sale proceeds before owners split the net funds.

For official information about New Mexico courts and self-help resources, visit the New Mexico Judiciary at https://www.nmcourts.gov/. To look up statute texts and search any applicable New Mexico statutes, use the New Mexico Legislature site at https://www.nmlegis.gov/ or the state law compilation at https://nmonesource.com/.

Helpful Hints — How to protect your interest when a commissioner handles a private sale

• Hire an attorney experienced in New Mexico partition cases. Time limits and procedural rules matter.
• Ask the court for a professional appraisal or order multiple appraisals if you think the commissioner’s valuation is too low.
• Keep documentation of your ownership percentage, improvements you paid for, and payments toward mortgages or taxes. These can affect distribution.
• Consider making a buyout offer to co-owners before the sale is finalized — a negotiated buyout can avoid sale costs and delay.
• Attend the confirmation hearing. If you can’t attend, submit written objections and supporting evidence in advance.
• Watch deadlines closely. File any objections or appeals promptly. Missing a deadline can forfeit important rights.
• Evaluate whether a private sale benefits you. Private sales can fetch better prices, but the court must find the sale fair. Raise specific concerns rather than general dissatisfaction.
• If the property has mortgages or liens, ask for a clear accounting of how the commissioner will satisfy those obligations from sale proceeds.