Can a court appoint a commissioner to handle a private sale in an Arizona partition action?

Detailed Answer

Short answer: Yes — under Arizona law a court that orders partition can appoint a commissioner (sometimes called a referee or special master) to conduct a sale. The court can authorize a private sale to a particular buyer, but the court will closely scrutinize private sales for fairness, adequate notice, and the absence of collusion. The court must be satisfied that a private sale reasonably maximizes value for all owners and creditors before it confirms the sale and approves distribution.

What a partition looks like in Arizona. A partition action asks the court to divide property held by co‑owners. If the property cannot be divided equitably in kind, the court may order a sale and divide the proceeds. Arizona’s court rules and partition statutes empower the court to appoint persons to carry out parts of the sale process, including valuation, sale, and reporting results to the court. See Arizona Revised Statutes, Title 12 (Courts and Civil Procedure) for the statutory framework: A.R.S. Title 12.

Commissioner/referee appointments. Courts commonly appoint a commissioner or referee to manage the mechanics of a sale — taking bids, arranging the closing, preparing a report for the court, and accounting for proceeds. A commissioner is an officer of the court; the court sets the scope of duties and often approves compensation and any bond or protections the court requires.

Private sale to a specific buyer — when it’s allowed. A private sale can be authorized in appropriate circumstances. Courts typically consider several factors before approving a private sale:

The sale price relative to independent market evidence (appraisals, comps).
Whether the terms are fair and commercially reasonable (escrow terms, inspection periods, contingencies).
Whether all parties and lienholders received proper notice and an opportunity to object.
Whether the proposed buyer is related to or affiliated with a party and, if so, whether there is a heightened risk of collusion.
Whether an open auction or competitive sale would likely produce a materially higher net recovery.

If the court finds the private sale is fair and in the best interests of all parties, it may (1) appoint a commissioner to complete the sale under court supervision, (2) authorize the commissioner to enter into the private sale contract, and (3) require the commissioner to report the sale and seek confirmation at a hearing before distributing proceeds.

Typical procedure a party should expect in Arizona

File a motion asking the court to appoint a commissioner and to approve the proposed method of sale (private sale to a named buyer). Attach the proposed purchase contract, an appraisal or market evidence, and proposed order language.
Serve the motion and proposed sale documents on all co‑owners, lienholders, and other interested parties. The court will require meaningful notice so any interested party can object.
The court may hold a hearing on appointment and on the method of sale. The judge decides whether to appoint a commissioner and whether to authorize a private sale under the circumstances presented.
If the court authorizes the sale, it typically instructs the commissioner to carry out the sale, collect funds, file a report of sale, and ask the court to confirm the sale and approve distribution.
The court reviews the commissioner’s report and any objections at a confirmation hearing. If the court confirms the sale, the commissioner distributes proceeds according to the court’s order (paying costs, liens, and dividing net proceeds among owners).

Practical limits and risks of asking for a private sale

Heightened scrutiny for insider transactions — a private sale to a co‑owner or buyer with ties to a party will receive closer review and higher proof burdens to show fairness.
Objections can delay sale — co‑owners or creditors can challenge the sale price or procedure, requiring additional hearings or even a court‑ordered auction.
Risk of rejection — the court can refuse to approve a private sale and order a public sale if it believes a public auction will bring better value.
Costs and timing — the court may require appraisals, notice publication, or other steps that add cost and delay.

When a commissioner’s report is required. After the commissioner conducts the sale, Arizona courts usually require a written report (date of sale, buyer identity, sale price, closing status, receipts). The report and any supporting documents are presented to the court at the confirmation hearing. The court will not release proceeds until it confirms the sale and authorizes distribution in an order.

Practical Checklist for a Successful Request

Provide a recent independent appraisal and comparables to support the private sale price.
Disclose any relationship between the buyer and the parties; include affidavits of good faith.
Propose clear commissioner duties, compensation, and timeline in your proposed order.
Give full notice to all owners and recorded lienholders and allow time for objections.
Be ready to show why a private sale better serves owners than a public auction (speed, reduced cost, certainty, or market conditions).
Prepare to address possible objections at confirmation: proof of market value, compliance with notice requirements, and a transparent accounting of proceeds.

Helpful Hints

Talk to a lawyer with experience in Arizona partition actions before filing. The court will expect a clear legal and factual record supporting a private sale.
Use a neutral, court‑appointed commissioner to reduce objections about fairness.
Include escrow and closing protections (deposit, non‑contingent close or firm dates) to show the sale is reasonably certain to close.
If the buyer is a co‑owner, consider structured protections (independent appraisal, competitive bid process or overbid provisions at confirmation) to reduce the risk of the court rejecting the sale.
Keep documentation: appraisal, marketing efforts (if any), signed purchase agreement, proof of notice, and the commissioner’s accounting — these items help at confirmation.
Expect the court to allocate sale costs and commissioner fees from sale proceeds before distribution.

Useful legal reference: Arizona’s court and civil procedure statutes provide the statutory framework for partition and court officers. See A.R.S. Title 12 (Courts and Civil Procedure): https://www.azleg.gov/arsDetail/?title=12.

Bottom line

You can ask an Arizona court to appoint a commissioner and to permit a private sale to a named buyer in a partition case. The court will weigh the situation carefully. Success depends on giving the judge clear evidence that the private sale is fair, gives all parties adequate notice and protection, and will likely produce a reasonable value for all owners and creditors. If you plan to seek appointment and private sale approval, prepare appraisals, full disclosures, and a clear proposed order to make the record supporting the request.

Disclaimer: This article explains general Arizona law and is for educational purposes only. It is not legal advice, and does not create an attorney‑client relationship. If you have a particular dispute or need, consult a licensed Arizona attorney about your specific facts.