Can a Wisconsin court appoint a commissioner to handle a private sale in a partition action?
Short answer: Yes — Wisconsin trial courts have broad equitable authority in partition cases and commonly appoint a commissioner or referee to carry out a sale. A court will consider appointing someone to handle a private sale to your buyer, but it will only approve that private sale if the court finds the process fair, the price reasonable, adequate notice and opportunity to object were provided, and no collusion or prejudice to cotenants exists. See the Wisconsin partition statutes: Wis. Stat. ch. 842.
Detailed answer — what the law allows and what courts look for
Partition actions in Wisconsin are equitable proceedings. The court’s goal is to divide property fairly among cotenants or to sell it and divide the proceeds when division in kind is impracticable. The statutory framework for partition actions is in Wis. Stat. ch. 842 (link), and the trial court controls the form and process of the partition sale.
Common practical points under Wisconsin practice:
- The court may order a sale when physical division isn’t feasible or would be wasteful. The court can also appoint an officer (often called a commissioner or referee) to oversee the sale and related tasks (appraisal, advertising, sale, and report to the court).
- Courts routinely appoint commissioners to conduct sales. The appointee’s duties typically include preparing notices, conducting marketing or an auction, receiving bids, overseeing closing, and filing a report and proposed distribution.
- A private sale (sale directly to a specified buyer, rather than a public auction) can be authorized, but the court will scrutinize it more closely than a public sale. Typical considerations are whether the sales price is fair, whether adequate notice was given to interested parties so they could object or submit competing offers, and whether the sale is free of collusion or self-dealing.
- If all parties (all cotenants and other interested lienholders) agree in writing to a private sale, courts are much more likely to approve it and to appoint a commissioner to complete the agreed sale.
- If one or more cotenants oppose a private sale, the court will weigh objections. The court may require competitive marketing, independent appraisal(s), or an auction if it finds the proposed private sale undervalues the property or appears collusive.
How to ask the court — practical steps for your motion
If you want a commissioner appointed to complete a private sale to a buyer, consider the following procedure and documents to file with the court:
- File a written motion or amended petition asking the court to (a) authorize sale of the property, (b) approve a specific private-sale agreement with your buyer, and (c) appoint a commissioner or referee to carry out the sale and closing.
- Attach the proposed purchase agreement showing the buyer, purchase price, financing contingencies (if any), proposed closing date, and any contingencies or repairs.
- Include evidence to show the price is fair: a recent independent appraisal or broker’s price opinion, comparable sales, or marketing efforts that justify the proposed sale price.
- If possible, attach a stipulation signed by all parties consenting to the private sale and to the appointment of the commissioner. Unanimous consent makes approval straightforward.
- Propose an order that names the commissioner, defines the commissioner’s duties (notice, marketing if any, closing, report to the court), and sets deadlines for reporting and confirmation of sale.
- Provide the court a proposed notice plan so that any absent or unknown interested parties receive proper notice and a clear opportunity to object before sale confirmation.
What the commissioner does and what happens after the sale
The appointed commissioner typically:
- posts and serves required notices;
- collects and evaluates offers (if more than one exists);
- closes the sale according to the court’s order and the approved purchase agreement; and
- files a written report with the court describing the sale and asking for confirmation and distribution of proceeds.
After the commissioner files a report, the court will schedule a hearing to confirm the sale, resolve any objections, and direct distribution or further action. The court’s confirmation locks in the sale and authorizes the accountanting or distribution to parties and payment of liens and costs.
Common objections courts consider
- Undervalue: Is the private-sale price substantially below market value?
- Collusion: Is the buyer related to or in agreement with a cotenant to sell at a suppressed price to benefit one party?
- Inadequate notice: Were other parties or known lienholders given the chance to object or to make competing offers?
- Insufficient marketing: Was the property exposed to reasonable marketing so that the sale likely produced fair market value?
When a court will likely deny a private-sale request
The court may deny the request if it finds the sale would prejudice other cotenants, the process shows collusion, the price is not supported by comparable data, or the notice/marketing is inadequate. In those cases the court often orders a public sale or requests additional appraisal/marketing before approving any private sale.
Helpful Hints
- Get an independent appraisal before filing the motion. A neutral appraisal goes a long way toward convincing the court the price is fair.
- Seek written consent from as many interested parties as possible. Unanimous or broad consent greatly increases the chance of approval.
- Disclose any relationship between the buyer and any cotenant. Courts expect transparency; nondisclosure can lead to rejection of the sale.
- Provide a clear marketing record if you conducted marketing: listings, showings, and offers received.
- Propose a narrow, explicit role for the commissioner in your proposed order so the court can easily evaluate what you ask the court to authorize.
- Be prepared for a confirmation hearing. Even with court appointment, the sale typically requires final confirmation before the court will distribute proceeds or close out the partition case.
- Work with a real property attorney experienced in Wisconsin partition practice. The process is equitable and fact-specific; good pleadings and evidence make approval more likely.
Relevant statute overview: Partition actions in Wisconsin are governed generally by Wis. Stat. ch. 842. The chapter sets out the procedures and remedies a court may use in partition litigation. For statutory text and sections, see: Wis. Stat. ch. 842.
Disclaimer: This article explains general Wisconsin law and practice about partition sales and commissioner appointments. It is educational only and not legal advice. For advice about a specific case, consult a licensed Wisconsin attorney who can evaluate your facts and represent your interests.