Detailed Answer — how this works under New York law

Partition cases in New York follow the Real Property Actions and Proceedings Law (RPAPL). When co-owners cannot agree to divide real property physically, the court can order the property sold and the proceeds divided. To carry out that sale the court commonly appoints a neutral person (a referee, commissioner, or special referee) to manage the sale process under court supervision.

Key points courts consider when approving a private sale in a partition case:

• Court authorization is required. The court must issue the order directing sale and typically must appoint the person who will conduct the sale. Parties cannot privately close and simply ask the court to divide proceeds afterward without prior approval of the sale mechanism.
• Sale method depends on what the court finds fair. Courts often prefer public sale to assure a transparent market price, but they may approve a private sale if the sale price, terms, and buyer are fair to the owners and creditors and if the sale is conducted under court oversight.
• Full disclosure and notice. The court will require notice to all interested parties (co-owners, lienholders, and other claimants). The terms of the proposed private sale and any appraisal or evidence of value should be presented to the court so it can evaluate fairness.
• Neutral officer (referee/commissioner) duties. The appointed officer can market the property, receive bids, close the transaction, collect proceeds, and report to the court. The court may set terms the officer must follow: advertising, obtaining appraisals, escrow arrangements, and timing for closing and distribution of funds.
• Confirmation hearing and objections. After the referee reports a sale, the court often holds a confirmation hearing. Interested parties can object. If the court finds the sale unjust or that procedures were not followed, it can refuse to confirm the sale.
• Protections for minority owners and lienholders. The court will protect statutory and equitable rights, including liens and tax obligations. The sale order will usually provide for payment of liens and costs before distribution of net proceeds.

For general reference to the statutory framework governing partition and sales, see New York’s Real Property Actions and Proceedings Law: https://www.nysenate.gov/legislation/laws/RPAPL. The court’s civil procedure rules also authorize appointment of referees and set practice rules; local court rules may add procedures.

Typical steps to ask the court to appoint a commissioner for a private sale

1. File (or answer) a partition action or a motion within an existing partition action asking the court to order sale and to appoint a referee/commissioner to oversee the sale.
2. Provide a proposed order that states the sale method (private sale to a specific buyer), identifies the proposed commissioner/referee, and specifies terms such as purchase price, deposit, escrow holder, closing date, and how proceeds will be allocated.
3. Submit evidence to support the sale price and fairness: independent appraisals, broker opinions, or proof of marketable title and buyer qualifications.
4. Serve notice on all co-owners, lienholders, and other interested parties as required by court rules and the RPAPL.
5. Attend a court hearing. Be prepared to explain why a private sale is reasonable (e.g., better price, speed, lower expense, unique buyer), and how the court and non-selling owners are protected.
6. If the court approves, the commissioner completes the sale under the court’s directions and files a report for confirmation. The court then confirms and orders distribution of proceeds after satisfying liens and costs.

When a court may refuse a proposed private sale

Common reasons a judge will refuse private-sale approval include inadequate price, lack of transparency, insufficient notice to interested parties, evidence of collusion, or failure to protect creditors and minority owners. If the court doubts the fairness of the sale, it will either order a public sale or impose stricter safeguards.

Practical considerations

• Use a court-friendly process: propose a neutral commissioner, provide independent valuation, and include protections for notice and distribution of proceeds.
• If the buyer is related to one of the parties, expect heightened scrutiny and stronger disclosure requirements.
• Consider whether a marketing period or offering the property to the public first will make the court more likely to approve the private sale.

For procedural details, check rules and local court practices at the New York State Unified Court System website: https://www.nycourts.gov/.

Remember: the court makes the final decision. You can ask for appointment and propose a private sale, but the judge will approve it only if the sale and the appointment protect all parties’ rights and interests.

Helpful Hints

• Hire an attorney with partition and real estate litigation experience. They will prepare pleadings, draft a clear proposed order, and present the evidence the court wants to see.
• Obtain a current, independent appraisal or broker’s market analysis before filing your motion.
• Propose an impartial commissioner or referee, such as an experienced real estate attorney or court-approved referee, to reduce concerns about bias.
• Provide detailed sale terms in your proposed order (price, deposit, escrow, closing deadline, and allocation of liens and costs).
• Be transparent about any relationship between the buyer and a party to the action; disclose in writing and to the court to avoid later attack on the sale.
• Expect the court to require a confirmation hearing. Plan time and evidence for that hearing, including testimony or declarations about value and marketing efforts.
• If speed matters, explain why a private sale is faster and how the court’s oversight will protect fairness.
• Review local rules and the individual judge’s preferences—some judges prefer public auctions unless the record clearly supports a private sale.