Can I Ask the Court to Appoint a Commissioner to Handle a Private Sale in a Montana Partition Action?
Detailed Answer
Short answer: Yes — in Montana you can ask the district court handling a partition action to appoint a commissioner (sometimes called a referee or commissioner of sale) to carry out a sale, and you can ask the court to approve a private sale to a particular buyer. The court must approve the process and the terms. The court’s focus will be on fairness to all co-owners, protection of creditors, and obtaining a market‑reasonable result.
How it works in practice:
- The partition action begins when one or more co-owners file a petition in Montana district court asking the court to divide or sell jointly owned real property.
- The court has discretion to order partition in kind (physically divide property) or partition by sale if division in kind is impracticable or inequitable. If the court orders sale, it can appoint an officer — commonly called a commissioner or commissioner of sale — to carry out the sale process, supervise notice, take bids, and report back to the court.
- A party may request that the appointed commissioner conduct a private sale to a specific buyer (for example, another co-owner or a third party). The court will not automatically accept a private sale; it will require evidence that the sale is fair, that the price is reasonable, and that the sale procedure protects the rights of all parties and any lienholders.
- Typical protections the court will require before approving a private sale include: an appraisal or other market valuation showing the price is fair; notice to all parties and to known lienholders; an accounting of how sale proceeds will be distributed; and a hearing at which interested parties can object. The court may also require advertising or other steps to show that the private sale is truly in the best interest of the estate and owners.
- If parties agree to a private sale, the court will usually require the commissioner to file a report and proposed decree of sale. The court will review the report, hear objections, and then enter an order approving the sale (often conditioned on clearing title to satisfy liens and encumbrances). The sale is not final until the court signs that decree and directs distribution of proceeds.
Where to look in Montana law and rules:
Montana statutory law and court rules set out civil procedure and the court’s authority in partition and sale matters. For the exact statutory language and any procedural rules that apply in your county, consult the Montana Code and the Montana Judicial Branch resources:
- Montana Code Annotated (MCA) — searchable index and table of contents: https://leg.mt.gov/bills/mca_toc/
- Montana Judicial Branch (information on District Courts and filings): https://courts.mt.gov
Important practical points:
- Ask the court for specific appointment language. Your proposed order should identify the commissioner’s duties, timelines, and any limits on authority (for example, whether the commissioner may accept the private buyer’s deposit or must obtain court confirmatory approval before closing).
- Provide valuation evidence. To persuade the judge to allow a private sale, submit an appraisal, broker opinion of value, comparable sales, or other proof that the price is close to fair market value.
- Give full notice. Montana courts expect adequate notice to co-owners and lienholders. Failure to provide proper notice can void the sale or delay approval.
- Be prepared for objections. Co-owners who think a private sale undervalues the property can move for a public sale (typically by auction). The court will weigh competing positions and may order advertising, additional valuations, or a judicial sale procedure.
- Clear title and liens. The commissioner’s report must address existing liens and how proceeds will be used to satisfy encumbrances before distribution to owners.
Bottom line: You can request that the court appoint a commissioner to conduct a private sale to your buyer, but the court must approve the appointment and the sale terms. The safer path is to propose a procedure that gives the court the information it needs to conclude the private sale is fair to all parties and secures creditors’ interests.
Disclaimer: This article explains general Montana procedures and is not legal advice. It does not create an attorney-client relationship. For advice about a specific case, consult a licensed Montana attorney or contact the district court clerk where the property is located.
Helpful Hints
- File a clear proposed order asking the court to appoint a commissioner and spell out the commissioner’s powers and time frame.
- Attach an appraisal or broker’s market analysis to any motion seeking approval of a private sale.
- Provide proof of notice to all co-owners and known lienholders when you request approval of a private sale.
- Ask the court to require the buyer’s deposit to be held in escrow until court confirmation and title clearance.
- Be ready to present evidence at a hearing showing why a private sale benefits the owners compared to a public sale.
- Check local district court rules and filing procedures on the Montana Judicial Branch website before you file documents.
- Consider hiring a Montana lawyer experienced in partition and real estate sales to draft motions and represent you at the hearing.