HLS 21RS-791 REENGROSSED 2021 Regular Session HOUSE BILL NO. 400 BY REPRESENTATIVE COUSSAN Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. PROPERTY: Provides relative to the partition of property 1 AN ACT 2To amend and reenact Civil Code Article 811 and Code of Civil Procedure Articles 4607, 3 4622, 4624, and 4625, relative to property; to provide for partitions by private sale; 4 to provide relative to absentee or non-consenting co-owners; to provide for petition 5 requirements; to provide for sale requirements; to provide for an effective date; and 6 to provide for related matters. 7Be it enacted by the Legislature of Louisiana: 8 Section 1. Civil Code Article 811 is hereby amended and reenacted to read as 9follows: 10 Art. 811. Partition by licitation or by private sale 11 A. When the thing held in indivision is not susceptible to partition in kind, 12 the court shall decree a partition by licitation or, as provided in Paragraph B of this 13 Article, by private sale and the proceeds shall be distributed to the co-owners in 14 proportion to their shares. 15 B. In the event that one or more of the co-owners are absentees or have not 16 consented to a partition by private sale, the court may set the terms of the sale and 17 shall order a partition by private sale and shall give first priority to the private sale 18 between the existing co-owners, over the sale by partition by licitation or private sale 19 to third parties. The court shall order the partition by private sale between the 20 existing co-owners as identified in the conveyance records as of the date of filing for Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-791 REENGROSSED HB NO. 400 1 the petition for partition by private sale. The petition for partition by private sale 2 shall be granted first priority, and the sale shall be executed under Title IX of Book 3 VII of the Code of Civil Procedure. 4 Section 2. Code of Civil Procedure Articles 4607, 4622, 4624, and 4625 are hereby 5amended and reenacted to read as follows: 6 Art. 4607. Partition by licitation or by private sale 7 When a partition is to be made by licitation, the sale shall be conducted at 8 public auction and after the advertisements required for judicial sales under 9 execution. When a partition is to be made at private sale without the consent of all 10 co-owners, the sale shall be for not less than two-thirds of the appraised value of the 11 property, and documents required pursuant to a court order shall be made executed 12 on behalf of the absentee or non-consenting co-owner by a court-appointed 13 representative, who may be a co-owner, after the advertisements required for judicial 14 sales under execution are made. All counsel of record, including curators appointed 15 to represent absentee defendants, and persons appearing in proper person shall be 16 given notice of the sale date. At any time prior to the sale, the parties may agree 17 upon a nonjudicial partition. 18 * * * 19 Art. 4622. Petition 20 A. The petition for the partition of property in which an absentee owns an 21 interest, under the articles of this Chapter, shall allege the facts showing that the 22 absent and unrepresented defendant is an absentee, as defined in Article 5251, shall 23 describe the property sought to be partitioned and allege the ownership interests 24 thereof, and shall be supported by an affidavit of the petitioner or of his counsel that 25 the facts alleged in the petition are true. 26 B.(1) If the partition is to be made by private sale, the petition for partition 27 between the co-owners shall have first priority status by the court and shall describe 28 include all of the following: 29 (a) the The primary terms of the proposed sale,. Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-791 REENGROSSED HB NO. 400 1 (b) The name of the proposed purchaser and whether the proposed purchaser 2 is a co-owner or third party in accordance with Civil Code Article 811(B). identify 3 the proposed purchaser, if any, disclose whether the proposed purchaser is related to 4 any co-owner, 5 (c) The source or location of funds to be used in the sale. 6 (d) If the proposed purchaser is a juridical entity, including but not limited 7 to corporations, limited liability companies, partnerships, and sole proprietorships, 8 and whether that entity has a relationship with any co-owner. and disclose to the 9 petitioning co-owners 10 (e) whether Whether any costs associated with the sale will be paid to any 11 person related to the petitioning co-owners within the fourth degree or a juridical 12 entity in which the co-owner has a direct or indirect financial interest. 13 (2) Upon judgment of the court ordering the sale, payment shall be made 14 within twenty-four hours using cash or certified funds. 15 * * * 16 Art. 4624. Publication of notice 17 Notice of the institution of the proceeding shall be published at least once in 18 the parish where the partition proceeding is instituted, in the manner provided by 19 law. This notice shall set forth the title and docket number of the proceeding, the 20 name and address of the court, a description of the property sought to be partitioned, 21 and the primary terms of the private sale and shall notify the absent defendant that 22 the plaintiff is seeking to have the property partitioned by licitation or by private sale 23 under Civil Code Article 811 and Chapters 1 and 2 of this Title, and that the absent 24 defendant has fifteen days from the date of the publication of notice, or of the initial 25 publication of notice if there is more than one publication, to answer the plaintiff's 26 petition. 27 Art. 4625. Trial; judgment ordering sale 28 A. Except as otherwise provided in Article 4630, if the petitioner proves on 29 the trial of the proceeding that he is a co-owner of the property and entitled to the 30 partition thereof and that the defendant is an absentee who owns an interest therein, Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-791 REENGROSSED HB NO. 400 1 the court shall render judgment ordering either the public sale of the property for 2 cash by the sheriff to effect a partition, after the advertisement required by law for 3 a sale under execution or the private sale of the property for cash by the court- 4 appointed representative to effect a partition, executed on behalf of the absentee or 5 non-consenting co-owner by a court-appointed representative, who may be a co- 6 owner, under Chapters 1 and 2 of this Title, and after the advertisement required by 7 law for a sale under execution. 8 B. The judgment shall determine the absentee's share in the proceeds of the 9 sale, and award a reasonable fee to the attorney appointed to represent him to be paid 10 from the absentee's share of the proceeds of the sale. 11 Section 3. This Act shall become effective upon signature by the governor or, if not 12signed by the governor, upon expiration of the time for bills to become law without signature 13by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 14vetoed by the governor and subsequently approved by the legislature, this Act shall become 15effective on the day following such approval. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 400 Reengrossed 2021 Regular Session Coussan Abstract: Provides relative to requirements for partitions of co-owned property. Present law (C.C. Art. 811) provides for partitions by licitation and private sale. Proposed law (C.C. Art. 811) retains present law but provides that partitions for private sales among co-owners as petitioned by a co-owner shall be prioritized. Present law (C.C.P. Art. 4607) provides that private sales without the consent of all co- owners shall not be for less than two-thirds of the appraised value of the property. Proposed law (C.C.P. Art. 4607) provides that the sale shall not be for less than the appraised value of the property and clarifies that the private sale shall be executed with a court- appointed representative on behalf of the absentee or non-consenting co-owner. Present law (C.C.P. Art. 4622) provides for the petition requirements for partition of property owned by an absentee. The petition requirements shall describe the property and be supported by an affidavit of the petitioner or petitioner's counsel. Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-791 REENGROSSED HB NO. 400 Present law (C.C.P. Art. 4622) provides for petition requirements for private sale. The petition for private sale shall describe the primary terms of the proposed sale, identify the proposed purchaser, including whether the proposed purchaser is related to any co-owner, and disclose to the petitioning co-owners whether there are any costs associated with the sale that will be paid to any person related to the petitioning co-owners within the fourth degree or a juridical entity in which he co-owner has a direct or indirect financial interest. Proposed law (C.C.P. Art. 4622) provides that the partition petition among co-owners shall have priority status for consideration by the court. The petition shall describe the primary terms of the proposed sale, identify the proposed purchaser and whether the proposed purchaser is a co-owner or third party, declare the source of funds to be used in the sale, and if the proposed purchaser is a juridical entity, disclose whether any co-owner has a relationship with that entity. Proposed law (C.C.P. Art. 4622) provides that upon judgment ordering the sale, payment shall be made using certified funds within 24 hours. Present law (C.C.P. Art. 4624) provides for the publication of the notice of partition proceeding. The notice shall notify the absent defendant that the plaintiff is seeking to have the property partitioned and that the absent defendant has 15 days from the date of the publication of initial notice to answer the plaintiff's petition. Proposed law (C.C.P. Art. 4624) retains present law but clarifies the partition by licitation or by private sale are to be governed by Chapters 1 and 2 of Title IX of Book VII of the Code of Civil Procedure. Present law (C.C.P. Art. 4625) provides for trial and judgments related to the partition of co- owned property. Proposed law (C.C.P. Art. 4625) retains present law but clarifies that the absentee or non- consenting co-owner shall be represented by a court-appointed representative, who may also be a co-owner. Effective upon signature of governor or lapse of time for gubernatorial action. (Amends C.C. Art. 811 and C.C.P. Arts. 4607, 4622, 4624, and 4625) Summary of Amendments Adopted by House The House Floor Amendments to the engrossed bill: 1. Require that for partitions by private sale without the consent of all co-owners, the sale shall be for the appraised value. 2. Add that the petition shall disclose the name of the proposed purchaser, whether the proposed purchaser is a co-owner or third party, and if the proposed purchaser is a juridical entity, whether that entity has a relationship with any co- owner. Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions.