California — Asking the Court to Appoint a Commissioner/Referee for a Private Sale in a Partition Action | California Partition Actions | FastCounsel
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California — Asking the Court to Appoint a Commissioner/Referee for a Private Sale in a Partition Action

Short answer

Yes — under California law you can ask the court in a partition action to appoint a court officer (commonly called a referee) to conduct a sale, and the court has discretion to approve a private sale to a proposed buyer. The court will evaluate whether a private sale is fair, non‑collusive, and in the owners’ best interests before appointing a referee and confirming any private sale.

Detailed answer — how this works in California

California law gives co‑owners the right to bring a partition action and allows the court to divide property either in kind (physical division) or by sale when division in kind is impractical. The court may appoint an officer (often called a referee) to handle the mechanics of sale and distribution. For the statutory framework, see the California Code of Civil Procedure, Part 3 (Partition of Real Property): Cal. Code Civ. Proc., Part 3 (Partition). You can also see the basic right to bring a partition action at Cal. Code Civ. Proc. § 872.010.

What the court may appoint

In California partition practice, courts commonly appoint a referee or court officer to perform tasks such as:

  • set terms of sale;
  • advertise and conduct a sale (public auction or private sale) under the court’s direction;
  • receive bids, execute deeds, and report sale results to the court;
  • prepare accountings and recommendations for distribution.

Private sale vs. public sale

The court has discretion whether to order a public auction or permit a sale by private contract. A private sale may be permitted when the court finds it will better serve the interests of the co‑owners — for example, when a ready, fair market offer exists or when a private sale will yield a better price than an auction. The court will require sufficient evidence that the private sale is commercially reasonable and not the product of collusion.

What the court looks for before approving a private sale to a buyer connected to a party

If the proposed buyer is associated with a co‑owner (e.g., a relative, an entity owned by a co‑owner, or a party to the action), the court will scrutinize the transaction more closely. Typical concerns and requirements include:

  • Full disclosure of any relationships or side agreements.
  • An independent appraisal or other reliable evidence of fair market value.
  • Proof the sale price and terms are at arm’s length and not the product of self‑dealing.
  • A hearing at which interested parties can object and the court can evaluate the sale terms and the referee’s recommendations.

How to ask the court (procedural steps)

  1. File a written motion or ex parte application (depending on local rules and timing) asking the court to appoint a referee and to approve the terms for sale (identify whether you seek a private sale and describe the buyer and proposed terms).
  2. Serve all co‑owners and interested parties with the motion and supporting documents (appraisal, purchase agreement, title information, disclosures).
  3. Provide evidence demonstrating the sale is commercially reasonable — e.g., independent appraisal, comparable sales, marketing efforts, and a declaration addressing any potential conflicts.
  4. Request an order setting the referee’s duties, authority (power to execute deeds, receive escrow funds, etc.), compensation, and the schedule for a confirmation hearing to approve the sale.
  5. Attend the court hearing; be prepared to answer questions about value, notice, and fairness. If the court approves the private sale, it will typically issue an order authorizing the referee to carry out the transaction subject to confirmation.

Practical judicial concerns and likely court conditions

Courts commonly impose one or more of the following conditions before approving a private sale:

  • Require public notice or opportunity for overbids by setting a deadline and requiring the referee to accept higher bona fide offers.
  • Set the sale on terms that protect absent or dissenting co‑owners, such as escrow conditions and deposit requirements.
  • Require an independent appraisal and/or an accounting by the referee.
  • Order a confirmation hearing before a deed is delivered or funds are distributed.

Costs, fees, and security

The referee’s fees and costs of sale (advertising, escrow, appraisal) are typically paid out of sale proceeds before distribution to owners. The court may require the buyer or the party requesting the private sale to post a bond or deposit to secure performance and protect other owners against a failed transaction.

If another co‑owner objects

Any co‑owner can object to the appointment or the proposed private sale. Objections are usually resolved at a court hearing where the judge weighs the competing evidence. If the court denies the private sale, it may order a public sale or other appropriate relief.

Practical example (hypothetical)

Suppose three siblings own a rental house as tenants in common. One sibling finds a buyer willing to pay a good price and asks the court, as part of the partition action, to appoint a referee to handle a private sale. The requesting sibling files a motion attaching the purchase contract, an independent appraisal, and a declaration disclosing the relationship to the buyer (if any). The court schedules a hearing, allows objections, and, after confirming the sale appears fair and not collusive, appoints a referee, authorizes the private sale with conditions (e.g., 30‑day overbid period and confirmation hearing), and sets the referee’s compensation and reporting requirements. After sale and confirmation, sale proceeds are distributed per the court’s accounting.

Key statutes and sources

Relevant provisions on partition procedure and sale are located in the California Code of Civil Procedure, Part 3 (Partition of Real Property): Cal. Code Civ. Proc., Part 3. See also the section establishing the right to bring a partition action: § 872.010. Local court rules and California Rules of Court also affect procedure and required filings.

Helpful Hints

  • Start early: obtain an independent appraisal before filing a motion for private sale to show the court the price is reasonable.
  • Disclose relationships: if the buyer has any connection to a party, disclose it fully in writing to avoid allegations of collusion.
  • Be ready for overbids: expect the court to allow an overbid period or to require advertising or notice to protect other owners.
  • Ask for clear referee powers: specify in your proposed order what the referee may and may not do (accept deposits, convey deed, open/close escrow, etc.).
  • Budget for fees: referee fees and sale costs come from sale proceeds but may delay distributions — plan accordingly.
  • Consider settlement: many partition cases settle if parties agree on buyouts or division in kind; a negotiated resolution can avoid court supervision costs.
  • Check local rules: counties and trial courts may have local forms or special procedures for partition matters and referrals.

Disclaimer: This article provides general information about California partition practice and is not legal advice. It does not create an attorney‑client relationship. For advice about a specific case, consult a licensed California attorney experienced in real property and partition matters.

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.