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

Disclaimer: I am not a lawyer. This article provides general information about Michigan law and common court practices. It is not legal advice. For advice specific to your situation, consult a licensed Michigan attorney.

Detailed Answer — How Michigan courts handle commissioners and private sales in partition cases

In Michigan, a party who asks the court to divide jointly owned land can ask for partition in kind (physically dividing the property) or partition by sale (selling the property and dividing the proceeds). Michigan law gives courts discretion to order a sale when partition in kind is impractical or would unfairly prejudice any party. Courts commonly appoint a commissioner or other representative to carry out the sale process.

Statutory framework: Michigan’s partition statutes authorize courts to divide property or order it sold when division on the ground is not practical. See Michigan Compiled Laws governing partition (MCL 600.2801 et seq.). For the exact statutory text, see the Michigan Legislature statutes: MCL 600.2801 et seq..

Practical effect: If you are a co-owner who wants a private sale to a willing buyer rather than a public sale, you can ask the court to:

• Order partition by sale instead of partition in kind; and
• Appoint a commissioner (or a commissioner of sale) to handle the sale process, including marketing, accepting offers, and completing the conveyance under the court’s supervision.

What the court considers: The court evaluates whether a private sale is fair, adequate, and in the best interests of all parties. The judge has broad discretion. Common considerations include:

• Whether partition in kind is practicable. If a physical division would damage value or be impractical, sale is more likely.
• Whether the proposed private sale will obtain fair market value. Courts will be cautious about sales that appear to favor one party or that do not show adequate marketing or appraisal support.
• Whether notice and opportunity to object were provided to all interested parties. A sale usually requires adequate notice and a chance for others to submit competing bids or to object to terms.
• Whether the commissioner is neutral, qualified, and has clear duties and reporting requirements set by the court.

Typical procedure when requesting a private sale with a commissioner:

1. File a motion or request in the partition case asking the court to order a sale and appoint a commissioner. Attach a proposed order outlining the commissioner’s duties and proposed sale terms (e.g., listing period, marketing plan, minimum acceptable price, whether the property can be sold without bid, escrow procedures).
2. Provide an appraisal or comparable-market evidence to justify the asking price and to show the court the sale is likely to obtain fair value.
3. Serve all co-owners and other interested parties with notice of the motion and proposed sale terms so they can object or propose alternative terms.
4. If the court approves the appointment, the judge typically issues an order appointing the commissioner and setting guidelines: scope of authority, requirement for reporting back to the court, deadlines, and how sale proceeds will be handled.
5. The commissioner conducts the sale under the court’s rules. If a private sale is proposed, the commissioner may be directed to solicit competing offers, obtain a court confirmation hearing, or accept the highest bona fide offer that meets court-set conditions.
6. The court may require a confirmation hearing before finalizing the sale to ensure the transaction is fair and in accordance with the order.

When courts reject private-sale proposals: A judge can refuse a requested private sale if the terms are unfair, if there is insufficient notice, if the buyer is an insider and the sale price is below market, or if the proposed sale would prejudice other owners. Courts often insist on transparency and sometimes require a public auction or open marketing unless a private sale clearly protects owners’ interests.

Special situations to watch for:

• If the proposed buyer is a co-owner or related to a co-owner, the court will examine whether the transaction is self-dealing and whether independent appraisal or competitive bidding is needed.
• If one co-owner offers to buy out the others, the court may require evidence that the buyout price is fair (appraisal or comparable sales).
• Credit bids, sale contingencies, or complex financing arrangements can complicate approval. Courts may limit commissioner authority to accept such terms without further court review.

Bottom line: Yes — you can ask a Michigan court to appoint a commissioner to handle a private sale to your buyer, but the court will review the situation carefully. Approval depends on statutory authority, judicial discretion, fairness to all owners, the commissioner’s neutrality and instructions, and adequate notice and documentation showing the sale is likely to capture fair market value.

Helpful Hints — Steps to improve the chance your private-sale request is approved

• Get a professional appraisal or two. Courts want evidence that the proposed sale price is reasonable.
• Prepare a transparent marketing plan. Explain how the commissioner will market the property and solicit offers (MLS listing, broker involvement, advertising timeline).
• Propose a neutral commissioner. Suggest an experienced, independent real estate professional or attorney with no stake in the sale.
• Provide full disclosure about the buyer. If your buyer has any relationship to a party in the case, disclose it and explain safeguards to avoid unfair dealing.
• Be ready for a confirmation hearing. Even if the court allows a private sale, the sale often must be confirmed in court before closing proceeds are distributed.
• Consult a Michigan real estate or civil litigation attorney to prepare the motion, proposed order, and evidence. Courts expect proper procedure and clear orders about the commissioner’s authority.
• Consider alternative resolutions. If parties can agree to a buyout or negotiated sale and submit a joint proposed order, courts typically approve agreed resolutions faster than contested motions.

Where to read more and where to get help:

• Michigan statutes on partition: MCL 600.2801 et seq.
• If you decide to proceed, speak with a Michigan attorney experienced in partition and real estate sales. They can draft the motion, propose appropriate commissioner duties, and represent you at hearings.

Remember: courts balance efficiency and fairness. A carefully documented request that shows a private sale will produce fair value for all owners and includes appropriate oversight by a neutral commissioner will have the best chance of approval.