Tennessee: How a Court-Appointed Commissioner Handles a Private Sale When Co-Owners Disagree | Tennessee Partition Actions | FastCounsel
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Tennessee: How a Court-Appointed Commissioner Handles a Private Sale When Co-Owners Disagree

When Co-Owners Disagree and the Court Orders a Private Sale: A Tennessee Guide

Disclaimer: This article explains general Tennessee law about partition and private sales by court-appointed commissioners. It is educational only and is not legal advice. Consult a licensed Tennessee attorney about your specific situation.

Detailed answer — How the process typically works in Tennessee

When co-owners of real property cannot agree on what to do with the land, one owner may file a partition action in Tennessee. A court will try to divide the property in kind (physical division). If the court finds physical division impractical or inequitable, it can order the property sold and distribute proceeds among the owners. Tennessee law governs how a court handles partition and sales by court-appointed officers; see the Tennessee Code, Title 29, Chapter 28 for the governing provisions: Tenn. Code Ann. Title 29, Ch. 28.

  1. Filing and service: A co-owner files a partition complaint in the appropriate Tennessee chancery or circuit court. The court serves all co-owners and interested lienholders. The complaint asks the court to either divide the property physically or, if that is impractical, sell it and split the proceeds.
  2. Court investigation and possible mediation: The judge considers whether a division in kind is feasible. The court may require appraisals, surveys, or mediation so co-owners can negotiate a buyout or other settlement before a sale is ordered.
  3. Appointment of a commissioner (or master): If the court orders a sale, it frequently appoints a commissioner, master, or special commissioner to handle sale details. The order that appoints the commissioner will define the scope of the commissioner’s authority — for example, to solicit offers, accept bids, and execute sale documents subject to court approval.
  4. Public sale vs. private sale: Courts prefer public sales (auction) to market-based private sales because public sales more easily demonstrate competitive pricing. However, a court can authorize a private sale when the commissioner shows that a private sale is in the parties’ best interests (e.g., higher net price, specialized marketing, or to preserve value). The commissioner must follow the court’s order and any statutory or local rules that apply.
  5. Appraisals and marketing: Before a private sale, the commissioner usually obtains one or more appraisals or broker opinions of value and markets the property as directed by the court. The commissioner should document attempts to market the property, offers received, and the rationale for accepting a private buyer’s offer.
  6. Report and sale terms submitted to the court: After negotiating a private sale, the commissioner files a written report with the court describing the sale terms, the marketing efforts, the recommended buyer, and any competing offers. The report asks the court to confirm the sale. The commissioner typically signs the contract as the court’s agent; the sale is not final until the court approves.
  7. Notice to co-owners and opportunity to object: The court gives co-owners notice of the commissioner’s report and the proposed sale and provides a deadline to object. Objecting owners can argue the sale price is inadequate, that marketing was insufficient, or that the commissioner exceeded authority.
  8. Confirmation hearing: The court holds a confirmation hearing. If the court finds the sale fair and consistent with its order and Tennessee law, it will confirm the sale and authorize the commissioner to convey title to the buyer. If the court denies confirmation, the court may order a new sale or direct different procedures.
  9. Closing and distribution: After confirmation the sale closes. The commissioner pays liens, taxes, court-ordered costs, and mortgages from the proceeds, then distributes the net proceeds among the owners according to their ownership shares and any priorities (mortgage lienholders, judgment creditors). The court signs any necessary decree to clear title for the buyer.
  10. Appeals and post-sale challenges: A co-owner who objects to the sale may have the right to appeal the court’s confirmation order within the time allowed under Tennessee appellate rules. Challenges typically assert procedural problems, inadequate notice, or an unfair sale price.

Key practical points under Tennessee law:

  • The court controls the scope of the commissioner’s authority. Read the appointment order closely.
  • Private sales must be justified: the court will look for evidence the sale fetches fair market value and followed reasonable marketing steps.
  • Commissioner acts as the court’s officer; the sale generally needs court confirmation to be final.

For statutory guidance, review Tennessee’s partition provisions at Tenn. Code Ann. Title 29, Ch. 28. If your case involves liens, mortgage priority, or complex ownership interests, consult an attorney to interpret how the statutes and local court practice apply to your facts.

Helpful Hints

  • Hire a Tennessee real estate attorney early. Partition cases turn on procedure and the court’s discretion; an attorney protects your rights and deadlines.
  • Get an independent appraisal. A current, credible valuation helps you challenge an inadequate sale price or support a fair private sale.
  • Document marketing activity. Ask the commissioner (or court) to require a written marketing plan and regular reports.
  • Consider settlement or buyout. Often the fastest, least expensive option is for a co-owner to buy out the other owners at an agreed value rather than litigate to sale.
  • Attend the confirmation hearing. Objecting in writing may be required, but attending lets you make a record and raise concerns directly to the judge.
  • Watch appeal deadlines. If the court confirms a sale and you plan to appeal, calendar appellate deadlines immediately (Tennessee appellate rules are strict).
  • Plan for taxes and costs. Net proceeds will be reduced by liens, taxes, broker fees, commissioner fees, and court costs.

If you need help finding a Tennessee attorney experienced in partition and property litigation, contact your local bar association or a lawyer-referral service. This article provides an overview only and does not create an attorney-client relationship.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.