Court-Ordered Real Estate Sales in Whatcom County: Understanding Partition Actions and Referee Sales
When people jointly own real estate, disagreements sometimes arise about what to do with the property. One owner may want to sell while another does not. Sometimes an owner has passed away and heirs cannot agree on next steps. Other times, a divorce, estrangement, or long-standing conflict makes cooperation impossible.
When owners reach an impasse, Washington law provides a solution called a partition action. In many cases, that process leads to a court-ordered sale of the property, overseen by a neutral professional known as a court-appointed referee.
As a top Realtor in Whatcom County with nearly 20 years of experience, I have acted as court-appointed referee multiple times.
This article explains, in plain language, how these sales happen, why courts use referees, and why choosing the right referee makes a real difference.
What Is a Partition Action
A partition action is a lawsuit filed by one co-owner asking the court to resolve a deadlock over shared real property. The law recognizes that people should not be forced to remain indefinitely in joint ownership when cooperation has broken down.
Under Washington law, the court generally has two options:
First, the court can physically divide the property if it can be fairly split into separate pieces without harming its value.
Second, if dividing the property would reduce its value or simply is not practical, the court can order the property sold and the proceeds divided among the owners.
Most residential homes, rental properties, and single parcels cannot realistically be divided. In those cases, a sale is the most practical and equitable outcome.
Why the Court Appoints a Referee
Once a court decides the property must be sold, it often appoints a referee to handle the sale process. The referee – a licensed Realtor – is a neutral officer of the court. They do not represent one owner against another. Their responsibility is to carry out the court’s instructions fairly, transparently, and professionally.
Think of the referee as the court’s trusted manager for the sale. The referee’s role exists to remove emotion, conflict, and stalemate from the process and replace them with structure and accountability.
A referee’s responsibilities typically include:
Determining a reasonable market price and publishing a CMA - Comparative Market Analysis
Developing a marketing and sale strategy
Exposing the property to the open market
Receiving and evaluating offers
Recommending a sale to the court
Reporting the outcome of the sale
Because the referee is also a licensed real estate professional, the court benefits from real-world market expertise combined with court oversight.
How Court-Ordered Sales Differ From Regular Home Sales
Court-ordered referee sales are very different from voluntary real estate transactions.
In a typical sale, a homeowner hires an agent who advocates for their interests. In a referee sale, there is no advocacy. The referee must remain neutral at all times.
Key differences include:
The sale exists because owners could not agree
The referee answers to the court, not the owners
Pricing decisions must be reasonable and defensible
All steps must withstand court review
Transparency is essential
The goal is not to favor one side but to achieve a fair market result that solves the ownership problem and brings closure to the dispute.
How the Sale Process Works
After appointment, the referee typically visits the property, gains a clear understanding of the condition and occupancy status that will occur during the listing, and then prepares a sale plan for court approval. This plan outlines how the property will be priced, marketed, shown, and sold.
The plan is mailed to the Court for review and approval.
Once approved by the court, the referee receives written confirmation from the judge, and can begin the prep / listing / marketing / and sale process.
The referee lists and markets the property the same way a “regular sale” would be marketed, including on the Multiple Listing Service and standard marketing channels.
Buyer’s brokers tour buyers through the property, feedback is collected, and if no offers are received price adjustments may be made.
When offers do arrive, they are evaluated objectively, and the referee determines acceptance of the most appropriate offer based on price, terms, and reliability.
After an offer is accepted, the referee oversees the transaction through closing and reports the final sale details back to the court. Proceeds are then distributed according to court order.
Why Experience Matters in a Referee Sale
Not all real estate professionals are equipped to serve as referees. These sales require a defensible level of understanding of both market dynamics, sale procedure AND court procedure.
An experienced referee brings several important advantages:
Neutral communication with potentially disputing parties
Accurate, defensible pricing supported by market data
Efficient coordination with attorneys, escrow, and the court
Clear communication with all parties
Proper documentation and reporting
Fewer delays and fewer disputes
Because referee sales are subject to court scrutiny, mistakes or poor judgment can create delays, objections, or even rejection of a sale. Experience helps avoid those problems before they arise.
Serving as a Court-Appointed Referee in Whatcom County
Serving as a referee is not simply listing a property. It is a fiduciary role that requires neutrality, professionalism, and judgment. Every action must be taken with the understanding that it may be reviewed by attorneys and a judge.
As a licensed Washington real estate broker with experience handling court-ordered referee sales, I bring both market knowledge and procedural awareness to this role. My approach emphasizes fairness, transparency, and results that withstand legal review.
For attorneys, co-owners, and courts, selecting an experienced referee helps ensure that a difficult situation is resolved efficiently and professionally, while protecting the interests of everyone involved.
Final Thoughts
Court-ordered referee sales exist to solve a very real problem. When people cannot agree on what to do with shared property, the court steps in to create a fair and orderly solution.
A knowledgeable referee helps transform conflict into closure by guiding the process from appointment to final sale with care and clarity. When done correctly, a referee sale allows all parties to move forward with confidence that the outcome was fair, lawful, and market-driven.
If you are in a situation where you believe a partition action and a court-appointed sale of the property may be the best (or only) solution, please reach out to me. I can speak with you about the process, and also refer you to experienced local-to-Whatcom County attorneys who know this process and have navigated it multiple times as well.
