EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0777*
HOUSE BILL 777
N1, N2 2lr0783
CF SB 92
By: Delegates Rosenberg and Stein
Introduced and read first time: February 3, 2022
Assigned to: Environment and Transportation and Judiciary
Committee Report: Favorable
House action: Adopted
Read second time: March 7, 2022
CHAPTER ______
AN ACT concerning 1
Real Property – Partition of Property 2
FOR the purpose of requiring the court in an action to partition real property to determine 3
the market value of the property unless the court makes certain determinations; 4
establishing procedures for the purchase of interests in real property by cotenants, 5
for the partition in kind of real property among cotenants, and for the partition by 6
sale of real property on the open market by a real estate broker licensed in this State; 7
and generally relating to the partition of real property. 8
BY repealing and reenacting, with amendments, 9
Article – Estates and Trusts 10
Section 9–107 11
Annotated Code of Maryland 12
(2017 Replacement Volume and 2021 Supplement) 13
BY repealing 14
Article – Real Property 15
Section 14–107 16
Annotated Code of Maryland 17
(2015 Replacement Volume and 2021 Supplement) 18
BY adding to 19
Article – Real Property 20
Section 14–701 through 14–713 to be under the new subtitle “Subtitle 7. Partition of 21
Real Property” 22 2 HOUSE BILL 777
Annotated Code of Maryland 1
(2015 Replacement Volume and 2021 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Estates and Trusts 5
9–107. 6
(a) (1) When two or more heirs or legatees are entitled to distribution of 7
undivided interests in property of the estate, the personal representative or one or more of 8
the heirs or legatees may petition the court before the formal or informal closing of the 9
estate, to make partition. 10
(2) After notice to the interested heirs or legatees AND SUBJECT TO THE 11
REQUIREMENTS OF TITLE 14, SUBTITLE 7 OF THE REAL PROPERTY ARTICLE, the 12
court shall partition the property in the same manner as provided by law for civil actions 13
of partition. 14
(b) The court may direct the personal representative to sell property which cannot 15
be partitioned without prejudice to the owners and cannot conveniently be allotted to one 16
party. 17
Article – Real Property 18
[14–107. 19
(a) A circuit court may decree a partition of any property, either legal or equitable, 20
on the bill or petition of any joint tenant, tenant in common, parcener, or concurrent owner, 21
whether claiming by descent or purchase. If it appears that the property cannot be divided 22
without loss or injury to the parties interested, the court may decree its sale and divide the 23
money resulting from the sale among the parties according to their respective rights. The 24
right to a partition or sale includes the right to a partition or sale of any separate lot or 25
tract of property, and the bill or petition need not pray for a partition of all the lots or tracts. 26
(b) This section applies regardless of whether any party, plaintiff, or defendant is 27
a minor, disabled, or a nonresident. 28
(c) A sale and deed made pursuant to an order of the court in the exercise of the 29
power provided in this section is good and sufficient at law to transfer property of the 30
person. A deed executed in exercise of the above power provided in this section shall be 31
executed by the person the court appoints for the purpose. 32
(d) If any bill or petition is filed under the provisions of this section for the sale of 33
property, any person holding a mortgage, other encumbrance on the property, or an 34
undivided interest in the property may be made a party to the bill, and the property shall 35 HOUSE BILL 777 3
be sold free and clear of the mortgage or other encumbrance. However, the rights of a lienor 1
shall be protected in the distribution of the proceeds of the sale.] 2
SUBTITLE 7. PARTITION OF REAL PROPERTY. 3
14–701. 4
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6
(B) “DETERMINATION OF VALU E” MEANS A COURT ORDER DETERMINING 7
THE FAIR MARKET VALU E OF PROPERTY UNDER § 14–707 OR § 14–711 OF THIS 8
SUBTITLE OR ADOPTING THE VALU ATION OF PROPERTY AG REED TO BY ALL 9
COTENANTS. 10
(C) “PARTITION BY SALE ” MEANS A COURT –ORDERED SALE OF PROPERTY, 11
WHETHER BY AUCTION , SEALED BIDS, OR OPEN–MARKET SALE CONDUCTE D UNDER 12
§ 14–711 OF THIS SUBTITLE. 13
(D) “PARTITION IN KIND ” MEANS THE DIVISION O F PROPERTY INTO 14
PHYSICALLY DISTINCT AND SEPARATELY TITLE D PARCELS. 15
(E) “RECORD” MEANS INFORMATION THAT IS INSCRIBED ON A TANGIBLE 16
MEDIUM OR THAT IS ST ORED IN AN ELECTRONI C OR OTHER MEDIUM AN D IS 17
RETRIEVABLE IN PERCE IVABLE FORM. 18
14–702. 19
(A) REAL PROPERTY SHALL BE PARTITIONED UNDER THIS SUBTITLE 20
UNLESS ALL OF THE CO TENANTS AGREE OTHERWISE IN A RECOR D. 21
(B) THE MARYLAND RULES APPLY TO ACTION S UNDER THIS SUBTITL E, 22
EXCEPT TO THE EXTENT THEY ARE INCONSISTEN T WITH THE PROVISION S OF THIS 23
SUBTITLE. 24
14–703. 25
IN AN ACTION UNDER TH IS SUBTITLE, THE COURT ON ITS OWN MOTION OR ON 26
MOTION OF ANY PARTY MAY ISSUE AN ORDER: 27
(1) FOR THE APPOINTMENT O F AN ATTORNEY TO PRO TECT THE 28
INTEREST OF ANY PART Y TO THE SAME EXTENT AND EFFECT AS PROVID ED UNDER 29 4 HOUSE BILL 777
RULE 2–203 OF THE MARYLAND RULES WITH RESPECT TO INDIVIDUALS NOT IN 1
BEING; 2
(2) TO REQUIRE JOINDER OF ANY ADDITI ONAL PARTIES THAT ARE 3
NECESSARY OR PROPER ; AND 4
(3) TO REQUIRE THAT THE PLAINTIFF: 5
(I) PROCURE A TITLE REPOR T SUPPORTED BY AN AF FIDAVIT 6
BY THE PERSON MAKING THE TITLE SEARCH THAT A COMPLE TE SEARCH OF THE 7
PUBLIC RECORDS HAS B EEN PERFORMED IN ACC ORDANCE WITH GENERALLY 8
ACCEPTED STANDARDS O F TITLE EXAMINATION FOR THE APPROPRIATE PERIOD AS 9
DETERMINED BY THE CO URT, BUT NOT LESS THAN 60 YEARS; AND 10
(II) DESIGNATE A PLACE WHE RE THE TITLE REPORT SHALL BE 11
KEPT FOR INSPECTION , USE, AND COPYING BY THE P ARTIES. 12
14–704. 13
IN ADDITION TO ANY PERSONS REQUIRED TO BE NAMED AS DEFENDAN TS IN 14
AN ACTION UNDER THIS SUBTITLE, THE PLAINTIFF MAY NA ME AS DEFENDANTS ALL 15
PERSONS UNKNOWN , CLAIMING ANY LEGAL O R EQUITABLE RIGHT , TITLE, ESTATE, 16
LIEN, OR INTEREST IN THE P ROPERTY DESCRIBE D IN THE COMPLAINT A DVERSE TO 17
THE PLAINTIFF ’S TITLE, OR ANY CLOUD ON THE PLAINTIFF’S TITLE TO THE 18
PROPERTY. 19
14–705. 20
(A) (1) IF, ON AFFIDAVIT OF THE PLAINTIFF, IT APPEARS TO THE 21
SATISFACTION OF THE COURT THAT THE PLAIN TIFF HAS USED REASON ABLE 22
DILIGENCE T O ASCERTAIN THE IDEN TITY AND RESIDENCE O F AND TO SERVE A 23
SUMMONS ON THE PERSO NS NAMED AS UNKNOWN DEFENDANTS AND PERSO NS 24
JOINED AS TESTATE OR INTESTATE SUCCESSORS OF A PERSON KNOWN OR BELIEVED 25
TO BE DEAD, THE COURT SHALL ORDE R SERVICE BY PUBLICA TION IN ACCORDANCE 26
WITH RULE 2–122 OF THE MARYLAND RULES AND THE PROVISI ONS OF THIS 27
SUBTITLE. 28
(2) THE ORDER SHALL DIREC T THAT A COPY OF THE SUMMONS, THE 29
COMPLAINT, AND THE ORDER FOR PU BLICATION BE MAILED IMMEDIATELY TO THE 30
PARTY IF THE PARTY ’S ADDRESS IS ASCERTA INED BEFORE EXPIRATION OF THE TIME 31
PRESCRIBED FOR PUBLI CATION OF THE SUMMON S. 32
HOUSE BILL 777 5
(B) THIS SECTION DOES NOT AUTHORIZE SERVICE BY PUBLICATION ON ANY 1
PERSON NAMED AS AN U NKNOWN DEFENDANT WHO IS IN OPEN AND ACTUA L 2
POSSESSION OF THE PR OPERTY. 3
14–706. 4
(A) IF THE COURT ORDERS SERVICE BY PUBLICATION , THE PLAINTIFF 5
SHALL: 6
(1) POST, NOT LATER THAN 10 DAYS AFTER THE DATE THE ORDER IS 7
ISSUED, A COPY OF THE SUMMON S AND COMPLAINT IN A CONSPICUOUS PLACE ON 8
THE PROPERTY THAT IS THE SUBJECT OF THE A CTION; AND 9
(2) FILE PROOF THAT THE SUMMO NS HAS BEEN SERVED , POSTED, 10
AND PUBLISHED AS REQ UIRED IN THE ORDER . 11
(B) IF THE COURT ORDERS S ERVICE BY PUBLICATIO N, THE PUBLICATION 12
SHALL USE THE LEGAL DESCRIPTION OF THE P ROPERTY ALONG WITH I TS STREET 13
ADDRESS, OR OTHER COMMON DESI GNATION, IF ANY. 14
14–707. 15
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B) THROUGH (D) OF THIS 16
SECTION, THE COURT SHALL DETE RMINE THE FAIR MARKE T VALUE OF THE 17
PROPERTY BY ORDERING AN APPRAISAL IN ACCORDANCE WITH SUBSECTION (E) OF 18
THIS SECTION. 19
(B) THE COURT MAY ACCEPT A PREVIOUSLY COMPLET ED APPRAISAL FILED 20
WITH THE COURT AS EV IDENCE OF VALUE PROV IDED THAT: 21
(1) THE APPRAISAL IS DATED N OT EARLIER THAN 6 MONTHS BEFORE 22
THE FILING OF THE PA RTITION ACTION; 23
(2) THE APPRAISAL WAS COMPLE TED BY A DISINTEREST ED REAL 24
ESTATE APPRAISER LIC ENSED IN THE STATE; AND 25
(3) NO PARTY OBJECTS TO THE APPRAISED VALUE . 26
(C) IF ALL COTENANTS HAVE AGREED TO THE VALUE OF THE PROPERTY OR 27
TO ANOTHER METHOD OF VALUATION, THE COURT SHALL ADOP T THAT VALUE OR 28
THE VALUE PRODUCED B Y THE AGREED METHOD OF VALU ATION. 29
6 HOUSE BILL 777
(D) IF THE COURT DETERMIN ES THAT THE EVIDENTI ARY VALUE OF AN 1
APPRAISAL IS OUTWEIG HED BY THE COST OF T HE APPRAISAL AND NO PREVIOUSLY 2
COMPLETED APPRAISAL WAS FILED UNDER SUBSECTION (B) OF THIS SECTION, THE 3
COURT, AFTER AN EVIDENTIARY HEARING , SHALL DETERMINE THE FAIR MARKET 4
VALUE OF THE PROPERT Y AND SEND NOTICE TO THE PARTIES OF THE V ALUE. 5
(E) (1) IF THE COURT ORDERS A N APPRAISAL UNDER SUBSECTION (A) OF 6
THIS SECTION , THE COURT SHALL APPO INT A DISINTERESTED REAL ESTATE 7
APPRAISER LICENSED IN THE STATE TO DETERMINE TH E FAIR MARKET VALUE OF 8
THE PROPERTY ASSUMIN G SOLE OWNERSHIP OF THE FEE SIMPLE ESTAT E. 9
(2) ON COMPLETION OF THE APPRAISAL, THE APPRAISER SHALL FILE 10
A SWORN OR VERIFIED APPRAISAL WITH THE C OURT. 11
(F) IF AN APPRAISAL IS CONDUCTED UNDER SUBSECTION (A) OF THIS 12
SECTION OR FILED WITH THE COURT UNDER SUBSECTION (B) OF THIS SECTION, NOT 13
LATER THAN 10 DAYS AFTER THE APPRA ISAL IS FILED, THE COURT SHALL SEND 14
NOTICE TO EACH PARTY WITH A KNOWN ADDRESS , STATING: 15
(1) THE APPRAISED FAIR MA RKET VALUE OF THE PR OPERTY; 16
(2) THAT THE APPRAISAL IS AVAILABLE AT THE OFFICE OF THE 17
CLERK; AND 18
(3) THAT A PARTY MAY FILE WITH THE COURT AN OB JECTION TO THE 19
APPRAISAL NOT LATER THAN 30 DAYS AFTER THE NOTIC E IS SENT, STATING THE 20
GROUNDS FOR THE OBJE CTION. 21
(G) (1) IF AN APPRAISAL IS FI LED WITH THE COURT UNDER SUBSECTION 22
(E) OF THIS SECTION, THE COURT SHALL COND UCT A HEARING TO DET ERMINE THE 23
FAIR MARKET VALUE OF THE PROPERTY NOT SOONER THAN 30 DAYS AFTER A COPY 24
OF THE NOTICE OF THE APPRAISAL IS SENT TO EACH PARTY U NDER SUBSECTION (F) 25
OF THIS SECTION , WHETHER OR NOT AN OB JECTION TO THE APPRA ISAL IS FILED 26
UNDER SUBSECTION (F)(3) OF THIS SECTION. 27
(2) IN ADDITION TO AN APPRAISAL DESCRIBED UNDER SUBSECTION 28
(A) OR (B) OF THIS SECTION, THE COURT MAY CONSID ER ANY OTHER EVIDENC E OF 29
VALUE OFFERED BY A P ARTY. 30
(H) AFTER A HEARING UNDER SUBSECTION (G) OF THIS SECTION , BUT 31
BEFORE CONSIDERING T HE MERITS OF THE PAR TITION ACTION, THE COURT SHALL 32
DETERMINE THE FAIR M ARKET VALUE OF THE PROPERTY AND SEND NOTICE TO THE 33
PARTIES OF THE VALUE . 34 HOUSE BILL 777 7
14–708. 1
(A) IF ANY COTENANT REQUE STED PARTITION BY SA LE, AFTER THE 2
DETERMINATION OF VAL UE UNDER § 14–707 OF THIS SUBTITLE , THE COURT SHALL 3
SEND NOTICE TO THE P ARTIES THAT ANY COTE NANT, EXCEPT A COTENANT TH AT 4
REQUESTED PARTITION BY SALE, MAY BUY ALL THE INTE RESTS OF THE COTENAN TS 5
THAT REQUESTED PARTI TION BY SALE. 6
(B) NOT LATER THAN 45 DAYS AFTER THE NOTIC E IS SENT UNDER 7
SUBSECTION (A) OF THIS SECTION , ANY COTENANT , EXCEPT A COTENANT TH AT 8
REQUESTED PARTITION BY SALE, MAY GIVE NOTICE TO T HE COURT THAT THE 9
COTENANT ELECTS TO BUY ALL TH E INTERESTS OF THE C OTENANTS THAT 10
REQUESTED PARTITION BY SALE. 11
(C) THE PURCHASE PRICE FO R EACH OF THE INTERE STS OF A COTENANT 12
THAT REQUESTED PARTI TION BY SALE IS THE VALUE OF THE ENTIRE PARCEL 13
DETERMINED UNDER § 14–707 OF THIS SUBTITLE MULTIPLIED BY THE CO TENANT’S 14
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL . 15
(D) AFTER EXPIRATION OF T HE PERIOD DESCRIBED IN SUBSECTION (B) OF 16
THIS SECTION, THE FOLLOWING RULES APPLY: 17
(1) IF ONLY ONE COTENANT ELECTS TO BUY ALL TH E INTERESTS OF 18
THE COTENANTS THAT R EQUESTED PARTITION B Y SALE, THE COURT SHALL NOTI FY 19
ALL THE PARTIES ; 20
(2) IF MORE THAN ONE COTE NANT ELECTS TO BUY A LL THE 21
INTERESTS OF THE COT ENANTS THAT REQUESTE D PARTITION BY SALE , THE COURT 22
SHALL: 23
(I) ALLOCATE THE RIGHT TO BUY THOSE INTERESTS AMONG 24
THE ELECTING COTENAN TS BASED ON EACH ELE CTING COTENANT ’S EXISTING 25
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL DIVIDED BY THE TOTAL EXISTING 26
FRACTIONAL OWNERSHIP OF ALL COTENANTS ELE CTING TO BUY; 27
(II) NOTIFY ALL THE PARTIES TH AT MORE THAN ONE 28
COTENANT ELECTED TO BUY ALL THE INTEREST S OF THE COTENANTS T HAT 29
REQUESTED PARTITION BY SALE; AND 30
(III) SEND NOTICE OF THE PR ICE TO BE PAID BY EA CH ELECTING 31
COTENANT; OR 32
8 HOUSE BILL 777
(3) IF NO COTENANT ELECTS TO BUY ALL THE I NTERESTS OF THE 1
COTENANTS THAT REQUE STED PARTITION BY SA LE, THE COURT SHALL SEND 2
NOTICE TO ALL THE PA RTIES AND RESOLVE TH E PARTITION ACTION U NDER § 3
14–711(A) AND (B) OF THIS SUBTITLE. 4
(E) (1) IF THE COURT SENDS NO TICE TO THE PARTIES UNDER 5
SUBSECTION (D)(1) OR (2) OF THIS SECTION , THE COURT SHALL SET A DATE NOT 6
SOONER THAN 60 DAYS AFTER THE DATE THE NOTICE WAS SENT BY WHICH 7
ELECTING COTENANTS M UST PAY THEIR APPORT IONED PRICE INTO THE COURT. 8
(2) AFTER THE DATE SET BY THE COURT UNDER PARAGRAPH (1) OF 9
THIS SUBSECTION , THE FOLLOWING RULES APPLY: 10
(I) IF ALL ELECTING COTEN ANTS PAY THEIR APPOR TIONED 11
PRICE INTO COURT ON TIME, THE COURT SHALL ISSU E AN ORDER REALLOCAT ING 12
ALL THE INTERESTS OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE 13
COURT TO THE PERSONS ENTITLED TO THE FUNDS; 14
(II) IF NO ELECTING COTENA NT PAYS THE COTENANT ’S 15
APPORTIONED PRICE ON TIME, THE COURT SHAL L RESOLVE THE PARTIT ION ACTION 16
UNDER § 14–709(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE 17
COTENANTS THAT REQUE STED PARTITION BY SA LE WERE NOT PURCHASE D; OR 18
(III) IF ONE OR MORE BUT NO T ALL OF THE ELECTIN G 19
COTENANTS FAIL TO PA Y THEIR APPORTIONED PRICE ON TIME , THE COURT, ON 20
MOTION, SHALL GIVE NOTICE OF THE INTEREST REMA INING AND THE PRICE FOR 21
THAT INTEREST TO THE ELECTING COTE NANTS THAT PAID THEI R APPORTIONED 22
PRICE. 23
(F) (1) NOT LATER THAN 20 DAYS AFTER THE COURT GIVES NOTICE 24
UNDER SUBSECTION (E)(2)(III) OF THIS SECTION , ANY COTENANT THAT PAID THE 25
COTENANT’S APPORTIONED PRICE MAY ELECT TO PURCHAS E ALL OF THE 26
REMAINING INTEREST B Y PAYING THE ENTIRE PRICE INTO THE COURT . 27
(2) AFTER THE 20–DAY PERIOD DESCRIBED IN PARAGRAPH (1) OF 28
THIS SUBSECTION , THE FOLLOWING RULES APPLY: 29
(I) IF ONLY ONE COTENANT PAYS THE ENTIRE PRIC E FOR THE 30
REMAINING INTEREST , THE COURT SHALL : 31
1. ISSUE AN ORDER REALLO CATING THE REMAINING 32
INTEREST TO THAT COT ENANT; AND 33
HOUSE BILL 777 9
2. PROMPTLY ISSUE AN ORDER REALLOCATIN G THE 1
INTERESTS OF ALL OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE 2
COURT TO THE PERSONS ENTITLED TO THEM; 3
(II) IF NO COTENANT PAYS T HE ENTIRE PRICE FOR THE 4
REMAINING INTEREST , THE COURT SHALL RESO LVE THE PARTITION AC TION UNDER 5
§ 14–709(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE COTENANTS 6
THAT REQUESTED PARTI TION BY SALE WERE NOT PURCHA SED; AND 7
(III) IF MORE THAN ONE COTE NANT PAYS THE ENTIRE PRICE 8
FOR THE REMAINING IN TEREST, THE COURT SHALL : 9
1. REAPPORTION THE REMAI NING INTEREST AMONG 10
THOSE PAYING COTENAN TS, BASED ON EACH PAYING COTENANT’S ORIGINAL 11
FRACTIONAL OWNERSHIP OF THE ENT IRE PARCEL DIVIDED B Y THE TOTAL ORIGINAL 12
FRACTIONAL OWNERSHIP OF ALL COTENANTS THA T PAID THE ENTIRE PR ICE FOR 13
THE REMAINING INTERE ST; AND 14
2. PROMPTLY ISSUE AN ORDER REALLOCATIN G ALL OF 15
THE COTENANTS ’ INTERESTS, DISBURSE THE AMOUNT S HELD BY THE COURT TO THE 16
PERSONS ENTITLED TO THEM, AND REFUND ANY EXCES S PAYMENT HELD BY TH E 17
COURT. 18
(G) NOT LATER THAN 45 DAYS AFTER THE COURT SENDS NOTICE TO THE 19
PARTIES UNDER SUBSECTION (A) OF THIS SECTION , ANY COTENANT ENTITLE D TO 20
BUY AN INTEREST UNDER THIS SECTION M AY REQUEST THE COURT TO AUTHORIZE 21
THE SALE AS PART OF THE PENDING ACTION O F THE INTERESTS OF C OTENANTS 22
NAMED AS DEFENDANTS AND SERVED WITH THE COMPLAINT BUT THAT D ID NOT 23
APPEAR IN THE ACTION . 24
(H) IF THE COURT RECEIVES A TIMELY REQUEST UNDER SUBSECTION (G) OF 25
THIS SECTION, THE COURT , AFTER A HEARING, MAY DENY THE REQUEST OR 26
AUTHORIZE THE REQUES TED ADDITIONAL SALE ON TERMS THE COURT D ETERMINES 27
ARE FAIR AND REASONA BLE, SUBJECT TO THE FOLLOWING LIMITATIONS: 28
(1) A SALE AUTHORIZED UNDE R THIS SUBSECTION MAY O CCUR ONLY 29
AFTER THE PURCHASE P RICES FOR ALL INTERE STS SUBJECT TO SALE UNDER 30
SUBSECTIONS (A) THROUGH (F) OF THIS SECTION HAVE BEEN PAID INTO COURT AND 31
THOSE INTERESTS HAVE BEEN REALLOCATED AMO NG THE COTENANTS AS 32
PROVIDED IN SUBSECTIONS (A) THROUGH (F) OF THIS SECTION; AND 33
10 HOUSE BILL 777
(2) THE PURCHASE PRICE FO R THE INTEREST OF A NONAPPEARING 1
COTENANT IS BASED ON THE COURT’S DETERMINATION OF V ALUE UNDER § 14–707 2
OF THIS SUBTITLE. 3
14–709. 4
(A) (1) IF UNDER § 14–708 OF THIS SUBTITLE ALL THE INTERESTS OF ALL 5
COTENANTS THAT REQUE STED PARTITION BY SA LE ARE NOT PURCHASED BY OTHER 6
COTENANTS, OR IF AFTER THE CONC LUSION OF THE BUYOUT A COTENANT REMAINS 7
THAT HAS REQUESTED P ARTITION IN KIND, THE COURT SHALL ORDE R PARTITION IN 8
KIND UNLESS THE COUR T, AFTER CONSIDERATION OF THE FACTORS LISTE D IN § 9
14–710 OF THIS SUBTITLE , FINDS THAT PARTITION IN KIND WILL RESULT IN GREAT 10
PREJUDICE TO THE COT ENANTS AS A GROUP . 11
(2) IN CONSIDERING WHETHE R TO ORDER PARTITION IN KIND, THE 12
COURT SHA LL APPROVE A REQUEST BY TWO OR MORE PARTI ES TO HAVE THEIR 13
INDIVIDUAL INTERESTS AGGREGATED . 14
(B) IF THE COURT DOES NOT ORDER PARTITION IN K IND UNDER 15
SUBSECTION (A) OF THIS SECTION , THE COURT SHALL ORDE R PARTITION BY SALE 16
UNDER § 14–711 OF THIS SUBTITLE OR, IF NO COTENANT REQUE STED PARTITION BY 17
SALE, THE COURT SHALL DISM ISS THE ACTION. 18
(C) IF THE COURT ORDERS P ARTITION IN KIND IN ACCORDANCE WITH 19
SUBSECTION (A) OF THIS SECTION , THE COURT MAY REQUIR E THAT ONE OR MORE 20
COTENANTS PAY ONE OR MORE OTHER COTENANTS AMOUNTS SO THAT THE 21
PAYMENTS, TAKEN TOGETHER WITH THE VALUE OF THE IN –KIND DISTRIBUTIONS T O 22
THE COTENANTS , WILL MAKE THE PARTIT ION IN KIND JUST AND PROPORTIONATE 23
IN VALUE TO THE FRAC TIONAL INTERESTS HEL D. 24
(D) IF THE COURT ORDERS P ARTITION IN KIND , THE COURT SHALL 25
ALLOCATE TO THE COTE NANTS THAT ARE UNKNO WN, UNLOCATABLE , OR THE 26
SUBJECT OF A DEFAULT JUDGMENT, IF THEIR INTERESTS W ERE NOT BOUGHT OUT 27
UNDER § 14–708 OF THIS SUBTITLE, A PART OF THE PROPER TY REPRESENTING THE 28
COMBINED INTERESTS O F THESE COTENANTS AS DETERMINED BY THE CO URT AND 29
THIS PART OF THE PRO PERTY SHALL REMAIN U NDIVIDED. 30
14–710. 31
(A) IN DETERMINING WHETHE R PARTITION IN KIND UNDER § 14–709(A) OF 32
THIS SUBTITLE WOULD RESULT IN GREA T PREJUDICE TO THE COT ENANTS AS A 33
GROUP, THE COURT SHALL CONS IDER THE FOLLOWING : 34
HOUSE BILL 777 11
(1) WHETHER THE PROPERTY PRACTICABLY CAN BE D IVIDED AMONG 1
THE COTENANTS ; 2
(2) WHETHER PARTITION IN KIND WOULD APPORTION THE 3
PROPERTY IN SUCH A W AY THAT THE AGGREGAT E FAIR MARKET VALUE OF THE 4
PARCELS RESULTING FR OM THE DIVISION WOUL D BE MATERIALLY LESS THAN THE 5
VALUE OF THE PROPERT Y IF IT WERE SOLD AS A WHOLE, TAKING INTO ACCOUNT THE 6
CONDITION UNDER WHIC H A COURT–ORDERED SALE LIKELY WOULD OCCUR ; 7
(3) EVIDENCE OF THE COLLE CTIVE DURATION OF OWNE RSHIP OR 8
POSSESSION OF THE PR OPERTY BY A COTENANT AND ONE OR MORE PRED ECESSORS 9
IN TITLE OR PREDECES SORS IN POSSESSION T O THE COTENANT WHO A RE OR WERE 10
RELATIVES OF THE COT ENANT OR EACH OTHER ; 11
(4) THE SENTIMENTAL ATTACHME NT OF A COTENA NT TO THE 12
PROPERTY, INCLUDING ANY ATTACH MENT ARISING BECAUSE THE PROPERTY HAS 13
ANCESTRAL OR OTHER U NIQUE OR SPECIAL VAL UE TO THE COTENANT ; 14
(5) THE LAWFUL USE BEING MADE OF THE PROPERTY BY A COTENANT 15
AND THE DEGREE TO WH ICH THE COTENANT WOU LD BE HARMED IF THE COTENANT 16
COULD NOT CONTINUE T HE SAME USE OF THE P ROPERTY; 17
(6) THE DEGREE TO WHICH THE COTENANTS HAVE C ONTRIBUTED 18
THEIR PRO RATA SHARE OF THE PROPERTY TAXE S, INSURANCE, AND OTHER 19
EXPENSES ASSOCIATED WITH MAINTAINING OWN ERSHIP OF THE PROPER TY OR 20
HAVE CONTRIBUTED TO THE P HYSICAL IMPROVEMENT , MAINTENANCE , OR UPKEEP 21
OF THE PROPERTY ; AND 22
(7) ANY OTHER RELEVANT FA CTOR. 23
(B) THE COURT MAY NOT CON SIDER ANY ONE FACTOR IN SUBSECTION (A) 24
OF THIS SECTION TO BE DISPOSITIVE WI THOUT WEIGHING THE T OTALITY OF ALL 25
RELEVANT FACTORS AND CIRCUMSTANCES . 26
14–711. 27
(A) IF THE COURT ORDERS A SALE OF PROPERTY , THE SALE SHALL BE AN 28
OPEN–MARKET SALE UNLESS T HE COURT FINDS THAT A SALE BY SEALED BID S OR AN 29
AUCTION WOULD BE MOR E ECONOMICALLY ADVAN TAGEOUS AND IN THE B EST 30
INTEREST OF THE COTE NANTS AS A GROUP . 31
(B) (1) IF THE COURT ORDERS A N OPEN–MARKET SALE AND THE 32
PARTIES, NOT LATER THAN 10 DAYS AFTER THE ENTRY OF THE ORDER , AGREE ON A 33 12 HOUSE BILL 777
REAL ESTATE BROKER L ICENSED IN THE STATE TO OFFER THE PR OPERTY FOR SALE , 1
THE COURT SHALL APPOINT THE BR OKER AND ESTABLISH A REASONABLE 2
COMMISSION. 3
(2) IF THE PARTIES DO NOT AGREE ON A BROKER , THE COURT SHALL 4
APPOINT A DISINTERES TED REAL ESTATE BROK ER LICENSED IN THE STATE TO 5
OFFER THE PROPERTY F OR SALE AND SHALL ES TABLISH A REASONABLE 6
COMMISSION. 7
(3) A BROKER APPOINTED UNDER THIS SUBSECTION SHALL OFFER 8
THE PROPERTY FOR SAL E IN A COMMERCIALLY REASONABLE MANNER AT A PRICE 9
NOT LOWER THAN THE DETER MINATION OF VALUE AN D ON THE TERMS AND 10
CONDITIONS ESTABLISH ED BY THE COURT . 11
(C) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 12
OBTAINS WITHIN A REA SONABLE TIME AN OFFE R TO PURCHASE THE PR OPERTY FOR 13
AT LEAST THE DETERMI NATION OF VALUE : 14
(1) THE BROKER SHALL COMP LY WITH THE REPORTIN G 15
REQUIREMENTS IN § 14–712 OF THIS SUBTITLE; AND 16
(2) THE SALE MAY BE COMPL ETED IN ACCORDANCE W ITH STATE LAW 17
OTHER THAN THIS SUBTITLE. 18
(D) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 19
DOES NOT OBTAIN WITH IN A REASONABLE TIME AN OFFER TO PURCHASE THE 20
PROPERTY FOR AT LEAS T THE DETERMINATION OF VALUE, THE COURT, AFTER 21
HEARING, MAY: 22
(1) APPROVE THE HIGHEST O UTSTANDING OFFER , IF ANY; 23
(2) REDETERMINE THE VALUE OF THE PROPERTY AND ORDER THAT 24
THE PROPERTY CONTINU E TO BE OFFERED FOR AN ADDITIONAL TIME ; OR 25
(3) ORDER THAT THE PROPERTY BE SOLD BY SEALED BIDS OR AT AN 26
AUCTION. 27
(E) IF THE COURT ORDERS A SALE BY SEALED BIDS OR AN AUCTION , THE 28
COURT SHALL SET TERM S AND CONDITIONS OF THE SALE. 29
(F) IF A PURCHASER IS ENT ITLED TO A SHARE OF THE PROCEEDS OF THE 30
SALE, THE PURCHASER IS ALSO ENTITLED TO A CREDIT AGAINST THE PRICE IN AN 31
AMOUNT EQUAL TO THE PURCHASER ’S SHARE OF THE PROCE EDS. 32 HOUSE BILL 777 13
14–712. 1
(A) A BROKER APPOINTED UND ER § 14–711(B) OF THIS SUBTITLE TO OFFER 2
PROPERTY FOR OPEN –MARKET SALE SHALL FI LE A REPORT WITH THE COURT NOT 3
LATER THAN 7 DAYS AFTER RECEIVING AN OFFER TO PURCHASE THE PROPERTY FOR 4
AT LEAST THE VALUE D ETERMINED UNDER § 14–707 OR § 14–711 OF THIS SUBTITLE. 5
(B) A REPORT REQUIRED UNDER SUBSECTION (A) OF THIS SECTION SHALL 6
CONTAIN THE FOLLOWIN G INFORMATION : 7
(1) A DESCRIPTION OF THE P ROPERTY TO BE SOLD T O EACH BUYER; 8
(2) THE NAME OF EACH BUYE R; 9
(3) THE PROPOSED PURCHASE PRICE; 10
(4) THE TERMS AND CONDITI ONS OF THE PROPOSED SALE , 11
INCLUDING THE TERMS OF ANY OWNER FINANCI NG; 12
(5) THE AMOUNTS TO BE PAI D TO LIENHOLDERS ; 13
(6) A STATEMENT OF CONTRAC TUAL OR OTHER ARRANG EMENTS OR 14
CONDITIONS OF THE BR OKER’S COMMISSION; AND 15
(7) OTHER MATERIAL FACTS RELEVANT TO TH E SALE. 16
14–713. 17
THIS SUBTITLE MODIFIES, LIMITS, AND SUPERSEDES THE ELECTRONIC 18
SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT, 15 U.S.C. § 7001 ET SEQ., 19
BUT DOES NOT MODIFY , LIMIT, OR SUPERSEDE § 101(C) OF THAT ACT, 15 U.S.C. § 20
7001(C), OR AUTHORIZE ELECTRO NIC DELIVERY OF ANY OF THE NOTICES 21
DESCRIBED IN § 103(B) OF THAT ACT, 15 U.S.C. § 7003(B). 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 23
apply only prospectively and may not be applied or interpreted to have any effect on or 24
application to any partition action filed before the effective date of this Act. 25
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2022. 27