Detailed Answer

Short overview: When co-owners cannot agree about what to do with jointly owned real estate in Michigan, one owner can ask a court to divide or sell the property through a partition action. If the court determines that division in kind is impracticable or unfair, it can order sale of the property and appoint a court commissioner to conduct the sale. The commissioner conducts the sale under court supervision, reports the results to the court, and the court confirms the sale and orders distribution of the proceeds after paying liens and expenses.

Step-by-step process under Michigan law

1. Filing the partition action:

   One co-owner files a civil complaint asking the circuit court to partition the property. The complaint must identify the property, the co-owners, and ask the court to either divide the property physically (partition in kind) or sell it and divide the proceeds.

2. Court determines whether partition in kind is feasible:

   The court first considers whether the land can be fairly divided among the owners. If a fair physical division would be impracticable or would unfairly reduce value, the court will order a sale instead of division.

3. Appointment of a commissioner to sell:

   If the court orders sale, it usually appoints a court commissioner or other officer to handle the sale process. The commissioner acts under the court’s instructions and must follow any sale procedures the court sets (for example, whether the sale will be public auction or private sale, minimum price, notice requirements, and the form of bid or offer).

4. Notice to parties and creditors:

   The commissioner must give notice of the proposed sale to the co-owners and any known lienholders or mortgagees so they can protect their interests. Liens against the property generally attach to sale proceeds and are paid in order of priority when the court distributes the funds.

5. Private sale vs. public sale:

   The court may authorize a private sale where the property is sold by negotiated sale instead of public auction. A private sale typically requires: the commissioner to solicit and evaluate offers, disclose relevant terms to the court and parties, and obtain court approval of the sale price and buyer. The court will not usually approve a private sale unless it finds the price and terms are fair and reasonable under the circumstances.

6. Commissioner’s sale report and court confirmation:

   After the sale, the commissioner files a written report with the court describing the sale, the buyer, the price, and any sale expenses. The court reviews the report and either confirms the sale, requires further proceedings (for example, a higher bid at a public sale), or sets the sale aside for defects or unfairness. Once confirmed, the court will authorize execution of the deed to the buyer and direct distribution of proceeds.

7. Distribution of proceeds and liens:

   The court orders the sale proceeds applied first to sale costs, court costs, and then to satisfy any recorded liens or mortgages in the order of priority. Any remaining balance is divided among the co-owners according to their ownership interests, subject to any court-ordered adjustments (for example, credits for advances, repairs, or rents collected).

8. Objections, appeals, or setting aside the sale:

   A co-owner who believes the sale process was unfair, the price was inadequate, or the rules were not followed can object in court before confirmation and, if the court confirms, may have limited ability to appeal or ask the court to set the sale aside. Courts generally defer to the commissioner’s conduct if the sale followed the court’s order and reasonable market procedures.

What rights and protections do co-owners have?

• Right to notice of the action, the proposed sale, and the commissioner’s report.
• Right to object to the sale’s terms or to ask the court to require a public sale or additional steps that better protect value.
• Right to submit competing offers or to bid at a public sale if the court orders one.
• Right to seek court supervision about how proceeds are divided and to raise claims for credits (e.g., if one co-owner paid mortgage, taxes, or made repairs).

Key legal references

Michigan’s statutory framework for partition actions appears in the Michigan Compiled Laws. See the partition statutes (commonly cited as MCL 600.2801 et seq.) for the statutory authority and details governing partition and sale procedures. The Michigan Legislature site: https://www.legislature.mi.gov/mileg.aspx?page=GetObject&objectName=mcl-600-2801.

When a private sale is likely to be approved

Courts are most likely to approve a private sale when the commissioner documents competitive marketing efforts, obtains an independent valuation or appraisal, discloses any relationships with the buyer, and demonstrates the price is fair under local market conditions. If the sale price appears below market value or the process lacked transparency, the court may refuse confirmation or require further bids.

Practical steps for a co-owner who disagrees with a private sale

1. Respond promptly in the partition case and ask the court for any protections you need (e.g., appraisal, public sale, bond from the purchaser).
2. Collect and preserve documents showing ownership percentage, mortgage payments, property expenses, rents, or repairs you paid.
3. Consider making a competitive offer or arranging to buy out other co-owners if you want to keep the property.
4. Object to confirmation if you have evidence the sale price is inadequate or the process was unfair.
5. Talk to a lawyer experienced in Michigan partition cases about your options and deadlines for objections or appeals.

Disclaimer

This article explains basic Michigan legal principles related to partition and court-appointed commissioners, but it is not legal advice. Laws and procedures change, and specific outcomes depend on detailed facts. To protect your rights and meet court deadlines, consult a licensed Michigan lawyer about your situation.