How Oregon law governs partition and sale

Partition actions are governed by ORS Chapter 105. The statute lets a party ask the court to divide property among co-owners, and when division in kind is impracticable or inequitable the court may order a sale of the property instead of physically dividing it. The court has broad authority to structure the sale and to appoint a person to carry out the sale process. See the relevant statute chapter at the Oregon Legislature: ORS Chapter 105.

What a court-appointed commissioner can do

A court-appointed commissioner (sometimes called a referee) typically will:

• Market or arrange the sale (public auction or private sale) according to the court’s order.
• Collect offers, review buyer qualifications, and execute documents necessary to transfer title subject to court approval.
• Hold sale proceeds in escrow and report the sale to the court so the court can confirm the sale and direct distribution of proceeds.

The court sets the commissioner’s duties, fee, and the sale procedures in its order.

Can the court approve a private sale to your buyer?

The court can approve a private sale to a specified buyer, but it will scrutinize that arrangement more than an open, competitive sale. When a party asks the court to appoint a commissioner to effectuate a private sale to a buyer connected to the party seeking the sale, the court will typically require:

• Full disclosure of the buyer’s identity and relationship to the parties.
• A written purchase agreement showing price, earnest money, closing terms, contingencies, and allocation of closing costs.
• Evidence that the price is fair — for example, a recent appraisal, broker opinion, or comparable sales.
• Notice to all co-owners and interested parties and an opportunity to object.
• That the sale procedures minimize the risk of self-dealing (for example, appointment of a neutral commissioner, escrow protections, and a confirmation hearing where the court can approve or reject the sale).

If the court is not satisfied that the private sale is fair, or if co-owners reasonably object, the court can instead order a public sale or other procedure designed to protect all owners’ interests.

Typical court process and what you must file

1. File or amend the partition complaint asking the court to order sale and to appoint a commissioner or referee to handle the sale.
2. Attach or file the proposed purchase agreement and supporting valuation evidence (appraisal, broker opinion, comps).
3. Propose a specific neutral commissioner (title company, real estate professional, or attorney) and a proposed order describing the commissioner’s duties and fee.
4. Serve notice on all parties and non-party owners, per court rules and ORS Chapter 105 procedures.
5. Attend a hearing. The court will hear objections, consider fairness, and decide whether to approve the private sale, appoint the commissioner, or direct a different sale method (public auction, sealed bids, etc.).
6. If the court appoints the commissioner and approves the sale, the commissioner will close the transaction and report back for court confirmation and distribution of proceeds.

Practical considerations and court attitudes

Courts favor procedures that protect absent or non-consenting co-owners. A private sale to an insider or an affiliated buyer invites greater judicial scrutiny. To improve the chance of approval:

• Provide an independent, recent appraisal or competing offers.
• Use a neutral, qualified commissioner (title company officer, licensed broker, or attorney) rather than a party relative or close associate.
• Limit the commissioner’s role to carrying out objectively defined steps (marketing, receiving bids, closing with escrow) and require a court confirmation hearing before final distribution of proceeds.

Where to look in the statutes

ORS Chapter 105 sets out the framework for partition actions and the court’s powers in these cases. Review the chapter for the court’s procedural authority and requirements: ORS Chapter 105 (Partition). For local filing procedures and forms, check your county circuit court’s civil division or the Oregon Judicial Department website.

Helpful Hints

• Consult a lawyer experienced in Oregon partition law before filing: partition rules and proof requirements can be technical.
• Get a professional appraisal early. A neutral appraisal strengthens a request for court approval of a private sale.
• Pick a neutral, reputable commissioner (title company or experienced broker) and include a proposed order describing the commissioner’s duties and fees.
• Disclose relationships. If the buyer has any connection to a party, disclose it in writing and provide evidence of fair market value.
• Prepare for objections. Give clear notice to all owners and be ready to show why a private sale is in the co-owners’ best interests.
• Include protective sale terms: escrow holdback for unresolved liens or disputes, clear closing deadlines, and court confirmation as a condition for final distribution.
• Expect the court to require a confirmation hearing. Even after a sale closes, the court may review and confirm the sale before distributing proceeds.