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

Detailed Answer — Can a court appoint a commissioner to handle a private sale in a Nebraska partition action?

Short answer: Yes — under Nebraska law the court that presides over a partition action has broad authority to order a sale of the property and to appoint a commissioner (sometimes called a commissioner of sale or referee) to carry out the sale. But the court will supervise the process, require appropriate notice and safeguards, and will closely scrutinize a private sale to a buyer who is a co-owner or otherwise related to a party.

How Nebraska law generally treats partition and sale

Nebraska law prefers partition in kind (dividing the land) when it is practical. If dividing is impractical or would cause significant prejudice to owners, the court may order the property sold and the proceeds divided among the parties. The court controls the form of sale and may appoint a commissioner to conduct sale proceedings and report back for confirmation.

For the statutes that govern partition procedures and sale authority, see the Nebraska Revised Statutes governing actions for partition (Chapter 25). You can review the statutes here: Nebraska Revised Statutes — Chapter 25 (Actions).

When a commissioner may be appointed

  • The court can appoint a commissioner when it orders sale of the property. The appointment lets an impartial official handle valuation, advertising, receipt of bids, closing procedures, and distribution of proceeds under court supervision.
  • A commissioner is commonly appointed where the property is complex, where the parties cannot agree on sale terms, or where the court wants an independent officer to ensure a fair process.
  • Appointment details — scope of authority, duties, compensation, reporting requirements, bond, and timelines — are set by the court order that appoints the commissioner.

Private sale to a buyer (including a co-owner): what the court will consider

Asking the court to allow a private sale (a negotiated sale to a specific buyer rather than a public auction) is possible, but courts will require proof the sale is fair and will protect non-selling co-owners. Expect the court to consider:

  • Whether the proposed private sale produces fair market value. The court may require one or more independent appraisals.
  • Whether the sale process was transparent. Courts favor open procedures — public advertising and an opportunity for overbids — unless good cause is shown for a private sale.
  • Whether the buyer is related to a party (for example, a co-owner or an affiliate). Sales to related buyers face higher scrutiny to guard against self-dealing.
  • Whether adequate notice to all parties and lienholders was provided and whether any creditors’ rights are protected.
  • Whether the terms address contingencies, financing, closing deadlines, and allocation of closing costs and taxes.
  • Whether the commissioner (or another impartial officer) monitored or conducted key steps to protect fairness.

Typical court process when you ask for a commissioner for a private sale

  1. File a written motion or request asking the court to (a) order sale, (b) authorize a private sale to your buyer, and (c) appoint a commissioner/referee to carry out the sale and report to the court.
  2. Include supporting evidence: written purchase agreement or offer, independent appraisal(s), proof of notice to co-owners and lienholders, and proposed order appointing the commissioner with the scope of duties and compensation.
  3. Serve the motion on all parties and interested persons and provide statutorily required notice (the court will set the hearing date).
  4. At the hearing the court will consider objections, fairness evidence, and alternatives (public sale or partition in kind). The court may limit a private sale or require additional safeguards.
  5. If approved, the court issues an order appointing the commissioner and sets the commissioner’s duties (for example: advertising, receiving offers, confirming sale, obtaining court confirmation, handling closing and allocation of proceeds). The court may require the commissioner to post a bond or to seek approval for related-party transactions.
  6. After the commissioner completes the sale, the commissioner files a report and proposed distribution order. The court typically holds a confirmation hearing before approving the sale and disbursing proceeds.

Practical tips and common court requirements

  • Provide an independent appraisal or two if you seek approval for a private sale. Appraisals help demonstrate fair market value.
  • If the buyer is a co-owner or affiliate, expect the court to require extra safeguards: independent appraisal, competitive bidding option, or appointment of an independent commissioner to handle bids and closing.
  • Draft a proposed order that clearly describes the commissioner’s authority, compensation, bond (if any), and reporting requirements.
  • Be ready to show full disclosure of any conflicts of interest and to explain why a private sale is in the best interest of all parties.
  • Remember: court confirmation is usually required before proceeds are distributed. The court can reject a sale that it finds unfair or inadequate.

Hypothetical example

Suppose three siblings co-own a farm. Two siblings want to sell to a family friend who offered a price lower than one independent appraisal but higher than another. One sibling objects and wants a public auction. A sibling who supports the private sale files a motion asking the court to appoint a commissioner to supervise a private sale to the friend, attach an independent appraisal, and propose safeguards (e.g., public notice, independent escrow, a confirmation hearing). The court may appoint a commissioner but require additional appraisal evidence, impose bidding procedures, or order the sale publicly if it concludes the private sale would shortchange the objecting co-owner.

When to consult an attorney

Partition law and the court’s expectations vary with the facts. If you want the court to approve a private sale or appoint a commissioner, consult a Nebraska real property attorney early. An attorney can help draft the motion and proposed order, obtain appraisals, and present evidence that the sale is fair.

Helpful Hints

  • File a clear written motion identifying the buyer, the purchase terms, and the specific relief requested (sale and appointment of commissioner).
  • Attach at least one independent appraisal to support the sale price.
  • Disclose any relationship between buyer and seller. Full disclosure reduces the risk the court will deny a private sale.
  • Propose a limited role for the commissioner and include protections such as bond, regular reporting, and a confirmation hearing.
  • Serve all co-owners, lienholders, and interested parties with proper notice. Lack of notice can invalidate sale approval.
  • If a co-owner objects, be prepared to show why partition in kind or public sale would be worse for the parties.
  • Keep documentation of marketing, offers, and communications—courts rely on the record when confirming sales.
  • Plan for follow-up: the court often requires a final accounting and order distributing proceeds before closing or disbursing funds.

Disclaimer: This article provides general information about Nebraska partition practice. It is not legal advice and does not create an attorney-client relationship. For advice about a specific situation, consult a licensed Nebraska attorney who handles partition and real property 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.