HLS 21RS-1001 ENGROSSED 2021 Regular Session HOUSE BILL NO. 521 BY REPRESENTATIVE SEABAUGH Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. PROPERTY: Provides relative to partitions of property 1 AN ACT 2To amend and reenact Code of Civil Procedure Article 4622 and to enact Code of Civil 3 Procedure Articles 4607.1 and 4607.2, relative to property; to provide for partitions 4 of property; to provide for partitions by private sale; to provide for absentee co- 5 owners; to provide for proceedings and judgments of partitions by private sale; to 6 provide for an effective date; and to provide for related matters. 7Be it enacted by the Legislature of Louisiana: 8 Section 1. Code of Civil Procedure Article 4622 is hereby amended and reenacted 9and Code of Civil Procedure Articles 4607.1 and 4607.2 are hereby enacted to read as 10follows: 11 Art. 4607.1. Trial; judgment ordering sale 12 A. If any co-owner objects to the partition to be made at private sale for less 13 than the appraised value of the property, the court shall allow the petitioner to amend 14 its petition to plead for a sale for not less than appraised value. If the petitioning co- 15 owner amends the petition, then the court shall order partition by private sale in 16 accordance with the amended petition. Otherwise, the court may either grant the 17 original petition or order partition by licitation. Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-1001 ENGROSSED HB NO. 521 1 B. If more than one co-owner petitions the court for partition, such matters 2 shall be consolidated into one proceeding. The court shall consider the petitions 3 giving preference first to the sale to an existing co-owner, then the highest price, and 4 then to other terms and conditions of the sale. The court shall consider the best 5 interests of non-consenting co-owners. The court may grant any petition for private 6 sale or may order partition by licitation. 7 C. A judgment ordering partition by private sale shall do all of the following: 8 (1) Determine each co-owner's share of the property. 9 (2) Direct a person, who may be a co-owner, to execute an act of sale, with 10 or without warranty on behalf of all co-owners, in favor of an identified purchaser 11 or a juridical person solely owned by the identified purchaser, and all other 12 documents customarily executed in connection with a sale of immovable property 13 without the necessity to specifically identify such other documents. 14 Art. 4607.2. Judgment ordering reimbursement or payment of amounts due co- 15 owner and payment and allocation of costs of private sale out of proceeds of 16 sale 17 A. A judgment ordering the private sale of property to effect a partition 18 under the provisions of this Chapter shall order, out of the proceeds of such sale, all 19 of the following: 20 (1) The reimbursement to a co-owner of the amount proven to be due the co- 21 owner for the payment of taxes on the property and the expenses of preservation of 22 the property. 23 (2) The payment to a co-owner of the amount proven to be due the co-owner 24 by another co-owner who has received and retained the fruits and revenues of the 25 property. 26 (3)(a) The payment of reasonable costs related to the sale, including real 27 estate commissions, brokerage fees, appraisal costs, payments associated with the 28 release of encumbrances and other customary closing costs, and the allocation of 29 such costs to one or more co-owners. Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-1001 ENGROSSED HB NO. 521 1 (b) The court in rendering judgment shall consider whether the costs 2 associated with the sale will be paid to any person related to the co-owners within 3 the fourth degree or a juridical entity in which the co-owner has a direct or indirect 4 financial interest. 5 (4) The payment of the remainder of the proceeds to each co-owner in the 6 proportion determined pursuant to Article 4607.1(C)(1). 7 * * * 8 Art. 4622. Petition 9 The petition for the partition of property in which an absentee owns an 10 interest, under the articles of this Chapter, shall allege the facts showing that the 11 absent and unrepresented defendant is an absentee, as defined in Article 5251, shall 12 describe the property sought to be partitioned and allege the ownership interests 13 thereof, and shall be supported by an affidavit of the petitioner or of his the 14 petitioner's counsel that the facts alleged in the petition are true. If the partition is 15 to be made by private sale, the petition shall describe the primary terms of the 16 proposed sale, identify the proposed purchaser, if any, disclose whether the proposed 17 purchaser is related to any co-owner within the fourth degree or is a juridical entity 18 in which any co-owner has a direct or indirect financial interest, and disclose to the 19 petitioning co-owners whether any costs associated with the sale will be paid to any 20 person related to the petitioning co-owners within the fourth degree or a juridical 21 entity in which the co-owner has a direct or indirect financial interest. 22 Section 2. This Act shall become effective upon signature by the governor or, if not 23signed by the governor, upon expiration of the time for bills to become law without signature 24by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 25vetoed by the governor and subsequently approved by the legislature, this Act shall become 26effective on the day following such approval. Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-1001 ENGROSSED HB NO. 521 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 521 Engrossed 2021 Regular Session Seabaugh Abstract: Provides relative to court-ordered partitions for property. Proposed law (C.C.P. Art. 4607.1) provides that if any co-owner objects to a partition by private sale for less than the appraised value of the property, the petitioner may amend the petition. The court shall order partition by private sale in accordance with the amended petition. Otherwise the court may grant the original petition or order partition by licitation. Proposed law (C.C.P. Art. 4607.1) provides that if more than one co-owner petitions the court for partition, the matters shall be consolidated. The court shall consider petitions giving the following preferences: (1)Sale to an existing co-owner. (2)Highest price. (3)Other terms and conditions of the sale. Proposed law (C.C.P. Art. 4607.1) provides that the court consider the best interests of the non-consenting co-owners and may grant any petition for private sale or order of partition by licitation. Proposed law (C.C.P. Art. 4607.1) provides that the judgment ordering partition by private sale determine each co-owner's share of the property and direct a person to execute an act of sale with or without warranty on behalf of all co-owners. Proposed law (C.C.P. Art. 4607.2) provides for the judgment ordering reimbursement of amounts due co-owners and allocation of costs of private sale out of the proceeds of the sale. The judgment ordering the private sale shall order: (1)Reimbursement to a co-owner of amount due for payment of taxes and expenses of property preservation. (2)Payment to a co-owner due by another co-owner who has received and retained fruits and revenues of the property. (3)Payment of reasonable costs related to the sale. (4)Payment of the remainder of the proceeds to each co-owner in proportion to the co- owner's property share. Present law (C.C.P. Art. 4622) provides that a petition for partition by private sale shall describe the primary terms of the proposed sale, identify the proposed purchaser, if any, disclose whether the proposed purchaser is related to any co-owner, and disclose whether any costs associated with the sale are paid to a party related to any co-owner within the fourth degree or a juridical entity in which the co-owner has a financial interest. Proposed law provides that the petition shall disclose whether the proposed purchaser is related to any co-owner within the fourth degree or a juridical entity in which the co-owner has a financial interest. Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-1001 ENGROSSED HB NO. 521 Effective upon signature of governor or lapse of time for gubernatorial action. (Amends C.C.P. Art. 4622; Adds C.C.P. Arts. 4607.1 and 4607.2) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Civil Law and Procedure to the original bill: 1. Remove provisions regarding C.C. Art. 811 and C.C.P. Arts. 4607, 4621, 4624, 4625, 4626, 4626.1, 4627, 4629, and 4643. 2. Enact C.C.P. Arts. 4607.1 and 4607.2. 3. Add that a petition shall identify whether the proposed purchaser is related to any co-owner within the fourth degree or is a juridical entity in which any co-owner has a financial interest. Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions.