Can a Tennessee Court Appoint a Commissioner to Conduct a Private Sale in a Partition Action? | Tennessee Estate Planning | FastCounsel
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Can a Tennessee Court Appoint a Commissioner to Conduct a Private Sale in a Partition Action?

When a Tennessee Court Will Appoint Someone to Carry Out a Private Sale in a Partition Case

Short answer: Under Tennessee law, you can ask the court to appoint a commissioner (sometimes called a referee or special master) to handle a sale in a partition action, and the court may allow a private sale if the sale process and price are fair and the court’s supervision protects all owners’ interests.

Detailed answer — how this works under Tennessee law

Partition actions ask the court to divide jointly owned real property among co‑owners. If physical division (partition in kind) is impractical or would substantially reduce value, the court typically orders the property sold and the proceeds divided. The court has broad equitable power to supervise that sale. One common tool is appointing a neutral person (often called a commissioner, referee, or special master) to carry out the sale process and report back to the court.

Key points about requesting a commissioner and a private sale in Tennessee:

  • You can ask for a commissioner. A party may move the court to appoint a commissioner to handle appraisal, marketing, and completion of the sale. The court decides whether to appoint someone and will set the commissioner’s duties and compensation.
  • Court supervision is required. Even if the parties propose a private sale to a specific buyer, the court retains oversight. The court will want procedures that protect non‑selling co‑owners: notice, independent valuation or appraisal, public advertisement unless the court waives it, and a confirmation hearing to approve the sale.
  • Private sale is possible but scrutinized. Private sales (sale directly to a buyer rather than at public auction) are allowed when the court concludes the private sale is fair and likely to obtain equal or greater value than a public sale. The court will consider whether the proposed price is fair, whether the transaction is arm’s length, and whether non‑selling owners receive proper notice and an opportunity to object.
  • Disclosure and proof matter. To persuade the court to permit a private sale, supply an independent appraisal or multiple valuation opinions, a copy of the proposed purchase contract, evidence that the buyer is ready and able to close, and any marketing efforts already made. If the buyer is related to a co‑owner, disclose that relationship and be prepared for heightened judicial scrutiny.
  • Report and confirmation hearing. After the commissioner completes the sale, the commissioner files a report with the court. The court will usually schedule a confirmation hearing before final distribution of proceeds. Interested parties can object at that hearing.

Practical sources the court will consult include Tennessee civil procedure rules and the court’s equitable powers in partition cases administered by trial courts. For rules and practice guides, see the Tennessee courts rules page: https://www.tncourts.gov/rules, and consult the Tennessee Code and local practice guides when needed: https://www.capitol.tn.gov/.

Typical procedure to request a commissioner and a private sale

  1. File a written motion or amended pleading asking the court to appoint a commissioner, describing the proposed sale, naming (or suggesting the qualifications of) the commissioner, and including the purchase agreement or term sheet.
  2. Attach supporting evidence: independent appraisal, market analysis, buyer proof of funds or a financing contingency you propose to waive, and a proposed order that sets notice, bond (if any), and the commissioner’s duties and compensation.
  3. Give statutory or court‑ordered notice to all co‑owners, lienholders, and other parties with recorded interests. The court will require adequate notice so objections can be filed.
  4. If the court appoints a commissioner, the court will typically issue an order setting sale procedures (public notice requirements, minimum acceptable bids, advertising, how to accept private offers, reporting deadlines, and confirmation hearing date).
  5. After the sale the commissioner files a report of sale, and the court holds a confirmation hearing where parties may object. If the court confirms the sale, it will enter an order directing distribution of proceeds, payment of liens, commissions, and expenses.

When courts are likely to approve a private sale

  • The private sale price is supported by a credible independent appraisal or evidence that the price equals or exceeds fair market value.
  • The transaction is arm’s length (no secret side deals or undisclosed relationships).
  • The proposed buyer is financially able to close and the sale is certain to close quickly.
  • All parties and lienholders receive notice and an opportunity to object.
  • The order appointing the commissioner gives adequate safeguards (bond, advertising, reporting, timeline).

When courts may deny a private sale request

  • Insufficient proof of fair market value or reliance only on a party’s statement of value.
  • Close relationship between buyer and seller that creates an appearance of self‑dealing (unless fully disclosed and the court is satisfied with safeguards).
  • Lack of adequate notice to other owners and lienholders.
  • Procedural defects in the motion or proposed order (no bond, no appraisal, or no timeline).

What you should include in your motion and proposed order

To increase the chance the court will appoint a commissioner and approve a private sale, include:

  • The proposed buyer’s identity, relationship (if any) to co‑owners, and proof of ability to close (cash funds, lender pre‑approval, or an unconditional contract).
  • An independent appraisal or two broker price opinions and any marketing efforts made to sell the property.
  • A proposed order describing the commissioner’s duties (advertise, solicit offers, accept or reject offers, close the sale subject to court confirmation), their compensation, and whether the commissioner must post a bond.
  • Detailed proposed notice procedures so all owners and known lienholders receive timely notice of the sale and confirmation hearing.
  • Proposed timeline for appraisal, marketing (if any), acceptance, sale, and confirmation hearing.

Practical tips and pitfalls

  • Do not assume a private sale will be quicker or cheaper than a public auction; a private sale can trigger discovery, objections, and extra hearings if other owners suspect unfairness.
  • If you want a speedy private sale, present evidence that a private sale will fetch a better price than auction (comparable sales, buyer financing, ready buyer incentives).
  • Be transparent. Disclose any relationship between the buyer and a party, any commission paid to the commissioner, and any side agreements.
  • Consider mediation or a negotiated buyout among owners as an alternative to court‑supervised sale; courts often encourage settlement.
  • Expect the court to protect outstanding liens: mortgage or tax liens usually must be paid from sale proceeds before distribution to owners.

When to consult a Tennessee attorney

If co‑owners disagree, if liens or mortgages complicate the title, if the buyer is related to a party, or if the property is commercially complex, you should consult a Tennessee civil litigator experienced in partition practice. An attorney can draft a strong motion, propose precise orders that protect your position, and respond effectively to objections.

Helpful Hints

  • Get a professional appraisal before filing your motion; courts give deference to independent appraisals.
  • Propose a neutral, qualified commissioner and include a reasonable compensation figure in the proposed order.
  • Provide full, clear notice to all co‑owners and any recorded lienholders to avoid objections based on lack of notice.
  • Include a short, clear timeline in your proposed order so the court knows the sale will move promptly.
  • If the buyer is an owner or related party, be extra transparent and consider having the commissioner obtain competing written offers to show the price is fair.
  • Prepare for a confirmation hearing: bring the appraisal, closing documents, and any affidavits showing funds or financing.

Disclaimer: This article explains general principles about partition sales and commissioner appointments under Tennessee practice. It is not legal advice. For advice about your specific case and jurisdictional requirements, consult a licensed Tennessee attorney.

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.