Colorado: Asking the Court to Appoint a Commissioner for a Private Sale in a Partition Action | Colorado Partition Actions | FastCounsel
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Colorado: Asking the Court to Appoint a Commissioner for a Private Sale in a Partition Action

Detailed Answer: Can a Colorado court appoint a commissioner to handle a private sale in a partition action?

Short answer: Yes — under Colorado law a court that orders a partition by sale generally has the authority to appoint an officer (often called a commissioner, referee, or special master) to conduct the sale, and the court may approve a private sale to a buyer if the sale procedure, price, notice, and disclosures satisfy the court that the transaction is fair and in the owners’ best interests. However, the court has broad equitable powers to protect co-owners, so a private sale must be carefully presented and is subject to court review and possible objections.

How partition sales and appointment of a commissioner typically work in Colorado

Partition cases ask the court to divide real property among co-owners (partition in kind) or to sell the property and divide proceeds (partition by sale). Colorado courts have equitable authority in partition actions to order sale instead of division when a physical division is impractical or inequitable. When the court orders sale, it commonly appoints a neutral officer (commissioner/referee) to carry out the sale and convey clear title at closing.

The court’s appointment and the sale procedure protect all co-owners by ensuring adequate notice, competitive marketing where appropriate, and judicial approval before final conveyance. A private sale (a negotiated sale to a pre-identified buyer rather than a public auction) is permitted, but the court will evaluate whether the private sale yields a fair price and whether the selling process disadvantages any co-owner.

Key steps you must follow to ask the Colorado court to appoint a commissioner and approve a private sale

  1. File a motion or application asking the court to (a) order partition by sale, (b) appoint a commissioner or referee to conduct the sale, and (c) approve the proposed private sale to your buyer. Attach the proposed purchase contract and any supporting documents (appraisal, broker opinion of value, title report).
  2. Provide full disclosure in the motion: identify the buyer, state any connection between the buyer and any co-owner or counsel, disclose the sale price and how it was reached, and state whether the proposed sale will be subject to an overbid procedure or confirmation hearing.
  3. Request a proposed order that clearly sets the commissioner’s powers and duties (e.g., authority to accept deposit, convey title, pay liens, and distribute proceeds only after court confirmation), and that requires the commissioner to report the sale and seek final approval/confirmation from the court.
  4. Give required notice to all parties and interested persons so they can object, seek an independent appraisal, or submit competing bids. The court will typically set a hearing to consider objections and the fairness of the sale.
  5. Be prepared to show the court why a private sale is reasonable: e.g., evidence that the private sale price equals or exceeds market value, that a public sale would likely yield lower net proceeds, or that marketing expenses and delays of a public sale would reduce value.

What the court will consider before approving a private sale

  • Whether the proposed sale price is fair and supported by an appraisal or market evidence.
  • Whether all co-owners received proper notice and a fair opportunity to object or overbid.
  • Whether there is any conflict of interest (for example, a sale to a co-owner, a family member, or to someone with a business relationship to a party). Courts require full disclosure and heightened scrutiny where relationships exist.
  • Whether appointing a commissioner and permitting a private sale will protect lienholders, junior interests, and the public record (clear chain of title on conveyance).
  • Whether the proposed procedure for confirmation, overbidding, or distribution of proceeds is adequate to protect all parties’ rights.

What to include in your motion and proposed order

When you ask the court to appoint a commissioner and approve a private sale, include:

  • The signed purchase contract and earnest-money terms.
  • An independent appraisal or broker’s price opinion supporting the sale price.
  • A proposed order defining the commissioner’s powers, sale timeline, deposit handling, and confirmation hearing requirements.
  • Language requiring the commissioner to report the sale to the court and to wait for court confirmation before delivering deed or distributing proceeds.
  • Disclosure of any relationships between buyer and any party to the litigation.

Common outcomes and practical advice

Most Colorado courts will allow a commissioner and private sale when the process is transparent, the price is supported, and co-owners have had meaningful notice and a chance to object or overbid. If the court is concerned about fairness, it may (a) require a public sale or formal overbid procedure, (b) require a higher showing of value (independent appraisal), or (c) deny the private-sale request and direct a public sale.

Where to look in Colorado law

Colorado’s courts handle partition actions as equitable proceedings and the Colorado Revised Statutes provide the statutory framework for property and civil procedure; courts also rely on equitable principles and case law when appointing officers to effect a sale. For the text of the Colorado Revised Statutes, see the official code search: Colorado Revised Statutes (official). For court administrative information and forms, see the Colorado Judicial Branch website: courts.state.co.us.

Helpful Hints

  • Start early: collect an independent appraisal or broker’s opinion before filing your motion. The stronger the valuation support, the more likely the court will approve a private sale.
  • Disclose everything. Courts treat undisclosed relationships between buyer and seller as a red flag and may reject the sale or require additional safeguards.
  • Propose an overbid/auction backup plan. Offering a short public overbid period or an auction as a backup reassures the court that the private sale is at or near market value.
  • Request limited but clear authority for the commissioner. The court prefers written orders that enumerate the commissioner’s duties and require a confirmation hearing before conveyance and distribution of proceeds.
  • Be ready for objections. Co-owners can object on price, notice, or conflict of interest grounds. Address those concerns in your motion with facts and documents.
  • Consider mediation if co-owners disagree. A mediated agreement that the court can approve may expedite a sale and reduce litigation costs.

Next steps

If you are considering asking a Colorado court to appoint a commissioner for a private sale, meet with a real estate or civil litigation attorney who regularly handles partition actions. An attorney can help prepare a strong motion, obtain valuation evidence, draft an order that gives the commissioner only the authority the court should grant, and anticipate likely objections from co-owners.

Disclaimer: This article explains general principles about partition sales and court-appointed commissioners under Colorado law. It is for educational purposes only and is not legal advice. For advice tailored to your facts, consult a licensed Colorado attorney.

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.