LAWRENCE J. HOGAN, JR., Governor Ch. 401
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Chapter 401
(House Bill 777)
AN ACT concerning
Real Property – Partition of Property
FOR the purpose of requiring the court in an action to partition real property to determine
the market value of the property unless the court makes certain determinations;
establishing procedures for the purchase of interests in real property by cotenants,
for the partition in kind of real property among cotenants, and for the partition by
sale of real property on the open market by a real estate broker licensed in this State;
and generally relating to the partition of real property.
BY repealing and reenacting, with amendments,
Article – Estates and Trusts
Section 9–107
Annotated Code of Maryland
(2017 Replacement Volume and 2021 Supplement)
BY repealing
Article – Real Property
Section 14–107
Annotated Code of Maryland
(2015 Replacement Volume and 2021 Supplement)
BY adding to
Article – Real Property
Section 14–701 through 14–713 to be under the new subtitle “Subtitle 7. Partition of
Real Property”
Annotated Code of Maryland
(2015 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Estates and Trusts
9–107.
(a) (1) When two or more heirs or legatees are entitled to distribution of
undivided interests in property of the estate, the personal representative or one or more of
the heirs or legatees may petition the court before the formal or informal closing of the
estate, to make partition.
Ch. 401 2022 LAWS OF MARYLAND
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(2) After notice to the interested heirs or legatees AND SUBJECT TO THE
REQUIREMENTS OF TITLE 14, SUBTITLE 7 OF THE REAL PROPERTY ARTICLE, the
court shall partition the property in the same manner as provided by law for civil actions
of partition.
(b) The court may direct the personal representative to sell property which cannot
be partitioned without prejudice to the owners and cannot conveniently be allotted to one
party.
Article – Real Property
[14–107.
(a) A circuit court may decree a partition of any property, either legal or equitable,
on the bill or petition of any joint tenant, tenant in common, parcener, or concurrent owner,
whether claiming by descent or purchase. If it appears that the property cannot be divided
without loss or injury to the parties interested, the court may decree its sale and divide the
money resulting from the sale among the parties according to their respective rights. The
right to a partition or sale includes the right to a partition or sale of any separate lot or
tract of property, and the bill or petition need not pray for a partition of all the lots or tracts.
(b) This section applies regardless of whether any party, plaintiff, or defendant is
a minor, disabled, or a nonresident.
(c) A sale and deed made pursuant to an order of the court in the exercise of the
power provided in this section is good and sufficient at law to transfer property of the
person. A deed executed in exercise of the above power provided in this section shall be
executed by the person the court appoints for the purpose.
(d) If any bill or petition is filed under the provisions of this section for the sale of
property, any person holding a mortgage, other encumbrance on the property, or an
undivided interest in the property may be made a party to the bill, and the property shall
be sold free and clear of the mortgage or other encumbrance. However, the rights of a lienor
shall be protected in the distribution of the proceeds of the sale.]
SUBTITLE 7. PARTITION OF REAL PROPERTY.
14–701.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “DETERMINATION OF VALU E” MEANS A COURT ORDER DETERMINING
THE FAIR MARKET VALU E OF PROPERTY UNDER § 14–707 OR § 14–711 OF THIS LAWRENCE J. HOGAN, JR., Governor Ch. 401
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SUBTITLE OR ADOPTING THE VALU ATION OF PROPERTY AG REED TO BY ALL
COTENANTS.
(C) “PARTITION BY SALE ” MEANS A COURT –ORDERED SALE OF PROP ERTY,
WHETHER BY AUCTION , SEALED BIDS, OR OPEN–MARKET SALE CONDUCTE D UNDER
§ 14–711 OF THIS SUBTITLE.
(D) “PARTITION IN KIND ” MEANS THE DIVISION O F PROPERTY INTO
PHYSICALLY DISTINCT AND SEPARATELY TITLE D PARCELS.
(E) “RECORD” MEANS INFORMATION TH AT IS INSCRIBED ON A TANGIBLE
MEDIUM OR THAT IS ST ORED IN AN ELECTRONI C OR OTHER MEDIUM AN D IS
RETRIEVABLE IN PERCEIVABLE FORM .
14–702.
(A) REAL PROPERTY SHALL BE PARTITIONED UNDER THIS SUBTITLE
UNLESS ALL OF THE CO TENANTS AGREE OTHERWISE IN A RECOR D.
(B) THE MARYLAND RULES APPLY TO ACTION S UNDER THIS SUBTITL E,
EXCEPT TO THE EXTENT THEY ARE INCONSISTEN T WITH THE PROVISIONS OF TH IS
SUBTITLE.
14–703.
IN AN ACTION UNDER TH IS SUBTITLE, THE COURT ON ITS OWN MOTION OR ON
MOTION OF ANY PARTY MAY ISSUE AN ORDER :
(1) FOR THE APPOINTMENT O F AN ATTORNEY TO PRO TECT THE
INTEREST OF ANY PART Y TO THE SAME EXTENT AND EFFECT AS PROVIDED U NDER
RULE 2–203 OF THE MARYLAND RULES WITH RESPECT TO INDIVIDUALS NOT IN
BEING;
(2) TO REQUIRE JOINDER OF ANY ADDITI ONAL PARTIES THAT AR E
NECESSARY OR PROPER ; AND
(3) TO REQUIRE THAT THE PLAINTIFF:
(I) PROCURE A TITLE REPOR T SUPPORTED BY AN AFFID AVIT
BY THE PERSON MAKING THE TITLE SEARCH THAT A COMPLE TE SEARCH OF THE
PUBLIC RECORDS HAS B EEN PERFORMED IN ACC ORDANCE WITH GENERAL LY
ACCEPTED STANDARDS O F TITLE EXAMINATION FOR THE APPROPRIATE PERIOD AS
DETERMINED BY THE CO URT, BUT NOT LESS THAN 60 YEARS; AND Ch. 401 2022 LAWS OF MARYLAND
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(II) DESIGNATE A PLACE WHE RE THE TITLE REPORT SHALL BE
KEPT FOR INSPECTION , USE, AND COPYING BY THE P ARTIES.
14–704.
IN ADDITION TO ANY PERSONS REQUIRED TO BE NAMED AS DEFENDAN TS IN
AN ACTION UNDER THIS SUBTITLE, THE PLAINTIFF MAY NAME AS DE FENDANTS ALL
PERSONS UNKNOWN , CLAIMING ANY LEGAL O R EQUITABLE RIGHT , TITLE, ESTATE,
LIEN, OR INTEREST IN THE P ROPERTY DESCRIBED IN THE COMPLAINT ADVERS E TO
THE PLAINTIFF ’S TITLE, OR ANY CLOUD ON THE PLAINTIFF’S TITLE TO THE
PROPERTY.
14–705.
(A) (1) IF, ON AFFIDAVIT OF THE PLAINTIFF, IT APPEARS TO THE
SATISFACTION OF THE COURT THAT THE PLAIN TIFF HAS USED REASON ABLE
DILIGENCE TO ASCERTA IN THE IDENTITY AND RESIDENCE OF AND TO SERVE A
SUMMONS ON THE PERSO NS NAMED AS UNKNOWN DEFENDANTS A ND PERSONS
JOINED AS TESTATE OR INTESTATE SUCCESSORS OF A PERSON KNOWN OR BELIEVED
TO BE DEAD, THE COURT SHALL ORDE R SERVICE BY PUBLICA TION IN ACCORDANCE
WITH RULE 2–122 OF THE MARYLAND RULES AND THE PROVISI ONS OF THIS
SUBTITLE.
(2) THE ORDER SHALL DIRE CT THAT A COPY OF TH E SUMMONS, THE
COMPLAINT, AND THE ORDER FOR PU BLICATION BE MAILED IMMEDIATELY TO THE
PARTY IF THE PARTY ’S ADDRESS IS ASCERTA INED BEFORE EXPIRATI ON OF THE TIME
PRESCRIBED FOR PUBLI CATION OF THE SUMMON S.
(B) THIS SECTION DOES NOT AUTHORIZE SERVICE BY PUBLI CATION ON ANY
PERSON NAMED AS AN U NKNOWN DEFENDANT WHO IS IN OPEN AND ACTUA L
POSSESSION OF THE PR OPERTY.
14–706.
(A) IF THE COURT ORDERS S ERVICE BY PUBLICATIO N, THE PLAINTIFF
SHALL:
(1) POST, NOT LATER THAN 10 DAYS AFTER THE DATE THE ORDER IS
ISSUED, A COPY OF THE SUMMON S AND COMPLAINT IN A CONSPICUOUS PLACE ON
THE PROPERTY THAT IS THE SUBJECT OF THE A CTION; AND
LAWRENCE J. HOGAN, JR., Governor Ch. 401
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(2) FILE PROOF THAT THE S UMMONS HAS BEEN SERV ED, POSTED,
AND PUBLISHED AS REQ UIRED IN THE ORDER .
(B) IF THE COURT OR DERS SERVICE BY PUBL ICATION, THE PUBLICATION
SHALL USE THE LEGAL DESCRIPTION OF THE P ROPERTY ALONG WITH I TS STREET
ADDRESS, OR OTHER COMMON DESI GNATION, IF ANY.
14–707.
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B) THROUGH (D) OF THIS
SECTION, THE COURT SHALL DETE RMINE THE FAIR MARKE T VALUE OF THE
PROPERTY BY ORDERING AN APPRAISAL IN ACCORDANCE WITH SUBSECTION (E) OF
THIS SECTION.
(B) THE COURT MAY ACCEPT A PREVIOUSLY COMPLET ED APPRAISAL FILED
WITH THE COURT AS EV IDENCE OF VALUE PROV IDED THAT:
(1) THE APPRAISAL IS DATED N OT EARLIER THAN 6 MONTHS BEFORE
THE FILING OF THE PA RTITION ACTION;
(2) THE APPRAISAL WAS COMPLE TED BY A DISINTEREST ED REAL
ESTATE APPRAISER LIC ENSED IN THE STATE; AND
(3) NO PARTY OBJECTS TO THE APPRAISED VALUE .
(C) IF ALL COTENANTS HAVE AGREED TO THE VALUE OF THE PROPERTY OR
TO ANOTHER METHOD OF VALUATION, THE COURT SHALL ADOP T THAT VALUE OR
THE VALUE PRODUCED B Y THE AGREED METHOD OF VALUATION .
(D) IF THE COURT DETERMIN ES THAT THE EVIDENTI ARY VALUE OF AN
APPRAISAL IS OUTWEIG HED BY THE COST OF T HE APPRAISAL AND NO PREVIOUSLY
COMPLETED APPRAISAL WAS FILED UNDER SUBSECTION (B) OF THIS SECTION, THE
COURT, AFTER AN EVIDENTIARY HEARING, SHALL DETERMINE THE FAIR MARKET
VALUE OF THE PROPERT Y AND SEND NOTICE TO THE PARTIES OF THE VALUE .
(E) (1) IF THE COURT ORDERS A N APPRAISAL UNDER SUBSECTION (A) OF
THIS SECTION , THE COURT SHALL APPO INT A DISINTERESTED REAL ESTATE
APPRAISER LICENSED I N THE STATE TO DETERMINE TH E FAIR MARKET VALUE OF
THE PROPERTY ASSUMIN G SOLE OWNERSHIP OF THE FEE SI MPLE ESTATE.
(2) ON COMPLETION OF THE APPRAISAL, THE APPRAISER SHALL FILE
A SWORN OR VERIFIED APPRAISAL WITH THE C OURT.
Ch. 401 2022 LAWS OF MARYLAND
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(F) IF AN APPRAISAL IS CONDUCTED UNDER SUBSECTION (A) OF THIS
SECTION OR FILED WITH THE COURT UNDER SUBSECTION (B) OF THIS SECTION, NOT
LATER THAN 10 DAYS AFTER THE APPRA ISAL IS FILED, THE COURT SHALL SEND
NOTICE TO EACH PARTY WITH A KNOWN ADDRESS , STATING:
(1) THE APPRAISED FAIR MA RKET VALUE OF THE PR OPERTY;
(2) THAT THE APPRAISAL IS AVAILABLE AT THE OFFICE OF THE
CLERK; AND
(3) THAT A PARTY MAY FILE WITH THE COURT AN OB JECTION TO THE
APPRAISAL NOT LATER THAN 30 DAYS AFTER THE NOTIC E IS SENT, STATING THE
GROUNDS FOR THE OBJE CTION.
(G) (1) IF AN APPRAISAL IS FI LED WITH THE COURT UNDER SUBSECTION
(E) OF THIS SECTION, THE COURT SHALL COND UCT A HEARING TO DET ERMINE THE
FAIR MARKET VALUE OF THE PROPERTY NOT SOONER THAN 30 DAYS AFTER A COPY
OF THE NOTICE OF THE APPRAISAL IS SENT TO EACH PARTY UND ER SUBSECTION (F)
OF THIS SECTION , WHETHER OR NOT AN OB JECTION TO THE APPRA ISAL IS FILED
UNDER SUBSECTION (F)(3) OF THIS SECTION.
(2) IN ADDITION TO AN APPRAISAL DESCRIBED UNDER SUBSECTION
(A) OR (B) OF THIS SECTION, THE COURT MAY CONSID ER ANY OTHER EVIDENCE OF
VALUE OFFERED BY A P ARTY.
(H) AFTER A HEARING UNDER SUBSECTION (G) OF THIS SECTION , BUT
BEFORE CONSIDERING T HE MERITS OF THE PAR TITION ACTION, THE COURT SHALL
DETERMINE THE FAIR M ARKET VALUE OF THE P ROPERTY AND SEND NOT ICE TO THE
PARTIES OF THE VALUE.
14–708.
(A) IF ANY COTENANT REQUE STED PARTITION BY SA LE, AFTER THE
DETERMINATION OF VAL UE UNDER § 14–707 OF THIS SUBTITLE , THE COURT SHALL
SEND NOTICE TO THE P ARTIES THAT ANY COTE NANT, EXCEPT A COTENANT TH AT
REQUESTED PARTITION BY SALE, MAY BUY ALL THE INTE RESTS OF THE COTENAN TS
THAT REQUESTED PARTI TION BY SALE.
(B) NOT LATER THAN 45 DAYS AFTER THE NOTIC E IS SENT UNDER
SUBSECTION (A) OF THIS SECTION , ANY COTENANT , EXCEPT A COTENANT TH AT
REQUESTED PARTITION BY SALE, MAY GIVE NOTICE TO T HE COURT THAT THE LAWRENCE J. HOGAN, JR., Governor Ch. 401
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COTENANT ELECTS TO BUY ALL TH E INTERESTS OF THE C OTENANTS THAT
REQUESTED PARTITION BY SALE.
(C) THE PURCHASE PRICE FO R EACH OF THE INTERE STS OF A COTENANT
THAT REQUESTED PARTI TION BY SALE IS THE VALUE OF THE ENTIRE PARCEL
DETERMINED UND ER § 14–707 OF THIS SUBTITLE MULTIPLIED BY THE CO TENANT’S
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL .
(D) AFTER EXPIRATION OF T HE PERIOD DESCRIBED IN SUBSECTION (B) OF
THIS SECTION, THE FOLLOWING RULES APPLY:
(1) IF ONLY ONE COTENANT ELECTS TO BUY ALL THE INTERESTS OF
THE COTENANTS THAT R EQUESTED PARTITION B Y SALE, THE COURT SHALL NOTI FY
ALL THE PARTIES ;
(2) IF MORE THAN ONE COTE NANT ELECTS TO BUY A LL THE
INTERESTS OF THE COT ENANTS THAT REQUESTE D PARTITION BY SALE , THE COURT
SHALL:
(I) ALLOCATE THE RIGHT TO BUY THOSE INTERESTS AMONG
THE ELECTING COTENAN TS BASED ON EACH ELE CTING COTENANT ’S EXISTING
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL DIVIDED BY THE TOTAL EXISTING
FRACTIONAL OWNERSHIP OF ALL COTENANTS ELE CTING TO BUY;
(II) NOTIFY ALL THE PARTIES TH AT MORE THAN ONE
COTENANT ELECTED TO BUY ALL THE INTEREST S OF THE COTENANTS T HAT
REQUESTED PARTITION BY SALE; AND
(III) SEND NOTICE OF THE PR ICE TO BE PAID BY EA CH ELECTING
COTENANT; OR
(3) IF NO COTENANT ELECTS TO BUY ALL THE I NTERESTS OF THE
COTENANTS THAT REQUE STED PARTITION BY SA LE, THE COURT SHALL SEND
NOTICE TO ALL THE PA RTIES AND RESOLVE TH E PARTITION ACTION U NDER §
14–711(A) AND (B) OF THIS SUBTITLE.
(E) (1) IF THE COURT SENDS NO TICE TO THE PARTIES UNDER
SUBSECTION (D)(1) OR (2) OF THIS SECTION , THE COURT SHALL SET A DATE NOT
SOONER THAN 60 DAYS AFTER THE DATE THE NOTICE WAS SENT BY WHICH
ELECTING COTENANTS M UST PAY THEIR APPORT IONED PRICE INTO THE COURT.
(2) AFTER THE DATE SET BY THE COURT UNDER PARAGRAPH (1) OF
THIS SUBSECTION , THE FOLLOWING RULES APPLY: Ch. 401 2022 LAWS OF MARYLAND
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(I) IF ALL ELECTING COTEN ANTS PAY THEIR APPOR TIONED
PRICE INTO COURT ON TIME, THE COURT SHALL ISSU E AN ORDER REALLOCAT ING
ALL THE INTERESTS OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE
COURT TO THE PERSONS ENTITLED TO THE FUNDS;
(II) IF NO ELECTING COTENA NT PAYS THE COTENANT ’S
APPORTIONED PRICE ON TIME, THE COURT SHALL RESO LVE THE PARTITION AC TION
UNDER § 14–709(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE
COTENANTS THAT REQUE STED PARTITION BY SA LE WERE NOT PURCHASE D; OR
(III) IF ONE OR MORE BUT NO T ALL OF THE ELECTIN G
COTENANTS FAIL TO PA Y THEIR APPORTIONED PRICE ON TIME , THE COURT, ON
MOTION, SHALL GIVE NOTICE OF THE INTEREST REMA INING AND THE PRICE FOR
THAT INTEREST TO THE ELECTING COTE NANTS THAT PAID THEI R APPORTIONED
PRICE.
(F) (1) NOT LATER THAN 20 DAYS AFTER THE COURT GIVES NOTICE
UNDER SUBSECTION (E)(2)(III) OF THIS SECTION , ANY COTENANT THAT PAID THE
COTENANT’S APPORTIONED PRICE MAY ELECT TO PURCHAS E ALL OF THE
REMAINING INTEREST B Y PAYING THE ENTIRE PRICE INTO THE COURT .
(2) AFTER THE 20–DAY PERIOD DESCRIBED IN PARAGRAPH (1) OF
THIS SUBSECTION , THE FOLLOWING RULES APPLY:
(I) IF ONLY ONE COTENANT PAYS THE ENTIRE PRIC E FOR THE
REMAINING INTEREST , THE COURT SHALL :
1. ISSUE AN ORDER REALLO CATING THE REMAINING
INTEREST TO THAT COT ENANT; AND
2. PROMPTLY ISSUE AN ORDER REALLOCATIN G THE
INTERESTS OF ALL OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE
COURT TO THE PERSONS ENTITLED TO THEM;
(II) IF NO COTENANT PAYS T HE ENTIRE PRICE FOR THE
REMAINING INTEREST , THE COURT SHALL RESO LVE THE PARTITION AC TION UNDER
§ 14–709(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE COTENANTS
THAT REQUESTED PARTI TION BY SALE WERE NOT PURCHA SED; AND
(III) IF MORE THAN ONE COTE NANT PAYS THE ENTIRE PRICE
FOR THE REMAINING IN TEREST, THE COURT SHALL : LAWRENCE J. HOGAN, JR., Governor Ch. 401
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1. REAPPORTION THE REMAI NING INTEREST AMONG
THOSE PAYING COTENAN TS, BASED ON EACH PAYING COTENANT’S ORIGINAL
FRACTIONAL OWNERSHIP OF THE ENT IRE PARCEL DIVIDED B Y THE TOTAL ORIGINAL
FRACTIONAL OWNERSHIP OF ALL COTENANTS THA T PAID THE ENTIRE PR ICE FOR
THE REMAINING INTERE ST; AND
2. PROMPTLY ISSUE AN ORDER REALLOCATIN G ALL OF
THE COTENANTS ’ INTERESTS, DISBURSE THE AMOUNT S HELD BY THE COURT TO THE
PERSONS ENTITLED TO THEM, AND REFUND ANY EXCES S PAYMENT HELD BY TH E
COURT.
(G) NOT LATER THAN 45 DAYS AFTER THE COURT SENDS NOTICE TO THE
PARTIES UNDER SUBSECTION (A) OF THIS SECTION , ANY COTENANT ENTITLE D TO
BUY AN INTEREST UNDER THIS SECTION M AY REQUEST THE COURT TO AUTHORIZE
THE SALE AS PART OF THE PENDING ACTION O F THE INTERESTS OF C OTENANTS
NAMED AS DEFENDANTS AND SERVED WITH THE COMPLAINT BUT THAT D ID NOT
APPEAR IN THE ACTION .
(H) IF THE COURT RECEIVES A TIMELY REQUEST UNDER SUBSECTION (G) OF
THIS SECTION, THE COURT , AFTER A HEARING, MAY DENY THE REQUEST OR
AUTHORIZE THE REQUES TED ADDITIONAL SALE ON TERMS THE COURT D ETERMINES
ARE FAIR AND REASONA BLE, SUBJECT TO THE FOLLOWING LIMITATIONS:
(1) A SALE AUTHORIZED UNDE R THIS SUBSECTION MAY O CCUR ONLY
AFTER THE PURCHASE P RICES FOR ALL INTERE STS SUBJECT TO SALE UNDER
SUBSECTIONS (A) THROUGH (F) OF THIS SECTION HAVE BEEN PAID INTO COURT AND
THOSE INTERESTS HAVE BEEN REALLOCATED AMO NG THE COTENANTS AS
PROVIDED IN SUBSECTIONS (A) THROUGH (F) OF THIS SECTION; AND
(2) THE PURCHASE PRICE FO R THE INTEREST OF A NONAPPEARING
COTENANT IS BASED ON THE COURT’S DETERMINATION OF V ALUE UNDER § 14–707
OF THIS SUBTITLE.
14–709.
(A) (1) IF UNDER § 14–708 OF THIS SUBTITLE ALL THE INTERESTS OF ALL
COTENANTS THAT REQUE STED PARTITION BY SA LE ARE NOT PURCHASED BY OTHER
COTENANTS, OR IF AFTER THE CONC LUSION OF THE BUYOUT A COTENANT REMAINS
THAT HAS REQUESTED P ARTITION IN KIND, THE COURT SHALL ORDE R PARTITION IN
KIND UNLESS THE COUR T, AFTER CONSIDERATION OF THE FACTORS LISTE D IN §
14–710 OF THIS SUBTITLE , FINDS THAT PARTITION IN KIND WILL RESULT IN GREAT
PREJUDICE TO THE COT ENANTS AS A GROUP . Ch. 401 2022 LAWS OF MARYLAND
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(2) IN CONSIDERING WHETHE R TO ORDER PARTITION IN KIND, THE
COURT SHA LL APPROVE A REQUEST BY TWO OR MORE PARTI ES TO HAVE THEIR
INDIVIDUAL INTERESTS AGGREGATED .
(B) IF THE COURT DOES NOT ORDER PARTITION IN K IND UNDER
SUBSECTION (A) OF THIS SECTION , THE COURT SHALL ORDE R PARTITION BY SALE
UNDER § 14–711 OF THIS SUBTITLE OR, IF NO COTENANT REQUE STED PARTITION BY
SALE, THE COURT SHALL DISM ISS THE ACTION.
(C) IF THE COURT ORDERS P ARTITION IN KIND IN ACCORDANCE WITH
SUBSECTION (A) OF THIS SECTION , THE COURT MAY REQUIR E THAT ONE OR MORE
COTENANTS PAY ONE OR MORE OTHER COTENANTS AMOUNTS SO THAT THE
PAYMENTS, TAKEN TOGETHER WITH THE VALUE OF THE IN –KIND DISTRIBUTIONS T O
THE COTENANTS , WILL MAKE THE PARTIT ION IN KIND JUST AND PROPORTIONATE
IN VALUE TO THE FRAC TIONAL INTERESTS HEL D.
(D) IF THE COURT ORDERS P ARTITION IN KI ND, THE COURT SHALL
ALLOCATE TO THE COTE NANTS THAT ARE UNKNO WN, UNLOCATABLE , OR THE
SUBJECT OF A DEFAULT JUDGMENT, IF THEIR INTERESTS W ERE NOT BOUGHT OUT
UNDER § 14–708 OF THIS SUBTITLE, A PART OF THE PROPER TY REPRESENTING THE
COMBINED INTERESTS O F THESE COTENANTS AS DETERMI NED BY THE COURT AND
THIS PART OF THE PRO PERTY SHALL REMAIN U NDIVIDED.
14–710.
(A) IN DETERMINING WHETHE R PARTITION IN KIND UNDER § 14–709(A) OF
THIS SUBTITLE WOULD RESULT IN GREA T PREJUDICE TO THE C OTENANTS AS A
GROUP, THE COURT SHALL CONSIDER THE F OLLOWING:
(1) WHETHER THE PROPERTY PRACTICABLY CAN BE D IVIDED AMONG
THE COTENANTS ;
(2) WHETHER PARTITION IN KIND WOULD APPORTION THE
PROPERTY IN SUCH A W AY THAT THE AGGREGAT E FAIR MARKET VALUE OF THE
PARCELS RESULTING FR OM THE DIVISION WOULD BE MATER IALLY LESS THAN THE
VALUE OF THE PROPERT Y IF IT WERE SOLD AS A WHOLE, TAKING INTO ACCOUNT THE
CONDITION UNDER WHIC H A COURT–ORDERED SALE LIKELY WOULD OCCUR ;
(3) EVIDENCE OF THE COLLE CTIVE DURATION OF OW NERSHIP OR
POSSESSION OF THE PR OPERTY BY A COTENANT AND ONE OR MORE PRED ECESSORS LAWRENCE J. HOGAN, JR., Governor Ch. 401
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IN TITLE OR PREDECES SORS IN POSSESSION T O THE COTENANT WHO A RE OR WERE
RELATIVES OF THE COT ENANT OR EACH OTHER ;
(4) THE SENTIMENTAL ATTACHME NT OF A COTENANT TO THE
PROPERTY, INCLUDING ANY ATTACH MENT ARISING BECAUSE THE PROP ERTY HAS
ANCESTRAL OR OTHER U NIQUE OR SPECIAL VAL UE TO THE COTENANT ;
(5) THE LAWFUL USE BEING MADE OF THE PROPERTY BY A COTENANT
AND THE DEGREE TO WH ICH THE COTENANT WOU LD BE HARMED IF THE COTENANT
COULD NOT CONTINUE T HE SAME USE OF THE PROPERTY ;
(6) THE DEGREE TO WHICH THE COTENANTS HAVE C ONTRIBUTED
THEIR PRO RATA SHARE OF THE PROPERTY TAXE S, INSURANCE, AND OTHER
EXPENSES ASSOCIATED WITH MAINTAINING OWN ERSHIP OF THE PROPER TY OR
HAVE CONTRIBUTED TO THE PHYSICAL IMPROVE MENT, MAINTENANCE, OR UPKEEP
OF THE PROPERTY ; AND
(7) ANY OTHER RELEVANT FA CTOR.
(B) THE COURT MAY NOT CON SIDER ANY ONE FACTOR IN SUBSECTION (A)
OF THIS SECTION TO BE DISPOSITIVE WI THOUT WEIGHING THE T OTALITY OF ALL
RELEVANT FACTORS AND CIRCUMSTANCES .
14–711.
(A) IF THE COURT ORDERS A SALE OF PROPERTY , THE SALE SHALL BE AN
OPEN–MARKET SALE UNLESS T HE COURT FINDS THAT A SALE BY SEALED BID S OR AN
AUCTION WOULD BE MOR E ECONOMICALLY ADVAN TAGEOUS AND IN THE B EST
INTEREST OF THE COTE NANTS AS A GROUP .
(B) (1) IF THE COURT ORDERS AN OPEN –MARKET SALE AND THE
PARTIES, NOT LATER THAN 10 DAYS AFTER THE ENTRY OF THE ORDER , AGREE ON A
REAL ESTATE BROKER L ICENSED IN THE STATE TO OFFER THE PR OPERTY FOR SALE ,
THE COURT SHALL APPO INT THE BROKER AND E STABLISH A REASONABL E
COMMISSION.
(2) IF THE PARTIES DO NOT AGREE ON A BROKER , THE COURT SHALL
APPOINT A DISINTERES TED REAL ESTATE BROK ER LICENSED IN THE STATE TO
OFFER THE PROPERTY F OR SALE AND SHALL ES TABLISH A REASONABLE
COMMISSION.
(3) A BROKER APPOINTED UNDER THIS SUBSECTION SHALL OFFER
THE PROPERTY FOR SAL E IN A COMMERCIALLY REASONABLE MANNER AT A PRICE Ch. 401 2022 LAWS OF MARYLAND
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NOT LOWER THAN THE DETER MINATION OF VALUE AN D ON THE TERMS AND
CONDITIONS ESTABLISH ED BY THE COURT .
(C) IF THE BROKER APPOINT ED UNDER SUBSECT ION (B) OF THIS SECTION
OBTAINS WITHIN A REA SONABLE TIME AN OFFE R TO PURCHASE THE PR OPERTY FOR
AT LEAST THE DETERMI NATION OF VALUE :
(1) THE BROKER SHALL COMP LY WITH THE REPORTIN G
REQUIREMENTS IN § 14–712 OF THIS SUBTITLE ; AND
(2) THE SALE MAY BE COMPL ETED IN ACCORDANCE W ITH STATE LAW
OTHER THAN THIS SUBTITLE.
(D) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION
DOES NOT OBTAIN WITH IN A REASONABLE TIME AN OFFER TO PURCHASE THE
PROPERTY FOR AT LEAS T THE DETERMINATION OF VALUE, THE COURT, AFTER
HEARING, MAY:
(1) APPROVE THE HIGHEST O UTSTANDING OFFER , IF ANY;
(2) REDETERMINE THE VALUE OF THE PROPERTY AND ORDER THAT
THE PROPERTY CONTINU E TO BE OFFERED FOR AN ADDITIONAL TIME ; OR
(3) ORDER THAT THE PROPER TY BE SOLD BY SEALED BIDS OR AT AN
AUCTION.
(E) IF THE COURT ORDERS A SALE BY SEALED BIDS OR AN AUCTION , THE
COURT SHALL SET TERM S AND CONDITIONS OF THE SALE.
(F) IF A PURCHASER IS ENT ITLED TO A SHARE OF THE PROCEEDS OF THE
SALE, THE PURCHASER IS ALSO ENTITLED TO A CREDIT AGAINST THE PRICE IN AN
AMOUNT EQUAL TO THE PURCHASER ’S SHARE OF THE PROCE EDS.
14–712.
(A) A BROKER APPOINTED UND ER § 14–711(B) OF THIS SUBTITLE TO OFFER
PROPERTY FOR OPEN –MARKET SALE SHALL FI LE A REPORT WITH THE COURT NOT
LATER THAN 7 DAYS AFTER RECEIVING AN OFFER TO PURCHASE THE PROPERTY FOR
AT LEAST THE VALUE D ETERMINED UNDER § 14–707 OR § 14–711 OF THIS SUBTITLE.
(B) A REPORT REQUIRED UNDER SUBSECTION (A) OF THIS SECTION SHALL
CONTAIN THE FOLLOWIN G INFORMATION : LAWRENCE J. HOGAN, JR., Governor Ch. 401
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(1) A DESCRIPTION OF THE P ROPERTY TO BE SOLD T O EACH BUYER;
(2) THE NAME OF EACH BUYE R;
(3) THE PROPOSED PURCHASE PRICE;
(4) THE TERMS AND CONDITI ONS OF THE PROPOSED SALE,
INCLUDING THE TERMS OF ANY OWNER FINANCI NG;
(5) THE AMOUNTS TO BE PAI D TO LIENHOLDERS ;
(6) A STATEMENT OF CONTRAC TUAL OR OTHER ARRANG EMENTS OR
CONDITIONS OF THE BR OKER’S COMMISSION; AND
(7) OTHER MATERIAL FACTS RELEVANT TO THE SALE .
14–713.
THIS SUBTITLE MODIFIES, LIMITS, AND SUPERSEDES THE ELECTRONIC
SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT, 15 U.S.C. § 7001 ET SEQ.,
BUT DOES NOT MODIFY , LIMIT, OR SUPERSEDE § 101(C) OF THAT ACT, 15 U.S.C. §
7001(C), OR AUTHORIZE ELECTRO NIC DELIVERY OF ANY OF THE NO TICES
DESCRIBED IN § 103(B) OF THAT ACT, 15 U.S.C. § 7003(B).
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to
apply only prospectively and may not be applied or interpreted to have any effect on or
application to any partition action filed before the effective date of this Act.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Approved by the Governor, May 16, 2022.