Texas: What Happens When Co-Owners Disagree and a Court-Appointed Commissioner Handles a Private Sale | Texas Partition Actions | FastCounsel
TX Texas

Texas: What Happens When Co-Owners Disagree and a Court-Appointed Commissioner Handles a Private Sale

Detailed Answer

Short answer: In Texas, when co-owners cannot agree on dividing or selling real property, one co-owner can file a partition action. If the court finds partition in kind impractical, it can order a sale. The court may appoint a commissioner to conduct a private sale if that method is lawful and the court approves the sale terms. The commissioner sells the property under court supervision, reports the sale, and the court confirms the sale and orders distribution of proceeds.

Legal basis

Partition actions and court authority to divide or sell property owned by multiple parties are governed by Texas law on partition. See Texas Property Code, Partition provisions: Texas Property Code, Chapter 23 (Partition).

How the process typically works

  1. Filing the partition suit. Any co-owner may sue for partition in the appropriate district court. The petition asks the court to divide the property in kind (divide the land) or, if that is not practical, to order a sale and divide the proceeds.
  2. Service, responses, and preliminary hearing. The court serves all co-owners. Co-owners can respond, file claims, or assert liens, homestead, or other defenses. The court may require disclosures, inventory of assets, and title evidence.
  3. Court decides type of partition. The court first considers whether partition in kind is feasible. If the court finds that physical division would be inequitable or would impair value, it will order a sale instead.
  4. Appointment of a commissioner. If the court orders a sale, it frequently appoints a commissioner or special master to carry out the sale. The court gives the commissioner written instructions or an order describing the sale method (public auction or private sale), minimum acceptable price, advertising requirements, and reporting duties.
  5. Private sale by commissioner. For a private sale the commissioner negotiates and accepts an offer on behalf of the co-owners, subject to the court’s conditions. The commissioner must follow the court’s order and any statutory requirements. After accepting an offer, the commissioner files a report of sale with the court and asks the court to confirm the sale.
  6. Court confirmation. The court reviews the commissioner’s report, any objections from co-owners or other interested parties, and the sale terms. If the court finds the sale fair and in compliance with its order, it enters an order confirming the sale and directing distribution of net proceeds according to ownership shares, after paying costs, commissions, liens, and valid claims.
  7. Distribution and deed. Once confirmed, the court may direct a deed to be executed by the commissioner or otherwise effectuate transfer to the buyer and distribute funds to owners or lienholders as ordered.

What rights do you have as a co-owner who disagrees?

  • You can object to the sale by filing formal written objections with the court before confirmation.
  • You can present evidence that the sale price is unreasonably low or that the commissioner did not follow the court’s instructions.
  • You can propose alternate buyers, submit a competing offer, or make a buyout proposal so you or another co-owner can purchase the property instead of selling to a third party.
  • You can request an accounting of bids, offers, and commissioner’s efforts and ask the court to require the commissioner to post a bond if you fear improper conduct.
  • If you disagree with the court’s confirmation, you may have the right to appeal the confirmation order within the appellate deadlines.

Common reasons a court allows a private sale

  • Property is difficult to divide physically without materially impairing its value.
  • Public auction would likely produce a lower price (unique property, environmental issues, or location concerns).
  • Parties or the court believe a negotiated private sale will bring a better price or faster resolution.

What to expect in court review of a private sale

  • The court checks that the commissioner followed the sale instructions, provided required notice, and acted in good faith.
  • The court assesses whether the sale was commercially reasonable and whether the price reflects fair consideration.
  • The court resolves any competing claims for proceeds (liens, mortgages, taxes, or superior ownership interests) before distributing net funds to co-owners.

Possible remedies if you believe the sale was improper

  • Ask the trial court to deny confirmation, set aside the sale, or order a new sale if you show procedural or substantive unfairness.
  • Request sanctions, an accounting, or appointment of a different commissioner in cases of misconduct.
  • File an appeal from the confirmation order to preserve appellate review.

Practical steps you should take right away

  1. Get organized: gather title documents, deeds, mortgage statements, tax bills, and any written offers or communications about the sale.
  2. Request detailed court orders about the commissioner’s authority and the sale process so you know what procedures were authorized.
  3. Consider getting an independent appraisal to establish fair market value before confirmation.
  4. Communicate your intention to object or to bid/buy in writing and file any objections on the court docket before the confirmation hearing.
  5. Consult a Texas real estate or property litigation attorney early to protect your rights and meet procedural deadlines.

Helpful Hints

  • Do not ignore court notices or deadlines. Missing a deadline can limit your ability to object or appeal.
  • Ask the court to require the commissioner to provide a written report that documents marketing efforts, offers received, and why a private sale was chosen.
  • Try mediation or settlement negotiations before sale confirmation — courts often favor parties resolving disputes privately.
  • Know your ownership share and any liens. Proceeds distribution follows ownership interests after valid liens and costs are paid.
  • Be prepared for costs: court costs, commissioner fees, advertising, appraisal fees, and attorneys’ fees can reduce net proceeds.
  • Keep copies of all documents and communications. A clear paper trail strengthens objections based on process failures or misconduct.

Where to find the law

See the Texas Property Code chapter addressing partition for statutory language and procedural rules: Texas Property Code, Chapter 23 (Partition). Your county district court’s local rules and the Texas Rules of Civil Procedure also affect process and timing.

Disclaimer: This article is educational and informational only. It does not constitute legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Texas 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.