EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0092*
SENATE BILL 92
N1, N2 2lr0801
(PRE–FILED) CF 2lr0783
By: Senator Augustine
Requested: October 18, 2021
Introduced and read first time: January 12, 2022
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Maryland Uniform Partition of Heirs Property Act 2
FOR the purpose of requiring the court in an action to partition real property to determine 3
whether the property is heirs property for the purpose of partition of the property 4
among certain cotenants and if so, to determine the market value of the property 5
unless the court makes certain determinations; establishing procedures for the 6
purchase of interests in heirs property by cotenants, for the partition in kind of heirs 7
property among cotenants, and for the partition by sale of heirs property on the open 8
market by a real estate broker licensed in this State; and generally relating to the 9
partition of heirs property. 10
BY repealing and reenacting, with amendments, 11
Article – Estates and Trusts 12
Section 9–107 13
Annotated Code of Maryland 14
(2017 Replacement Volume and 2021 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Real Property 17
Section 14–107 18
Annotated Code of Maryland 19
(2015 Replacement Volume and 2021 Supplement) 20
BY adding to 21
Article – Real Property 22
Section 14–701 through 14–713 to be under the new subtitle “Subtitle 7. Maryland 23
Uniform Partition of Heirs Property Act” 24
Annotated Code of Maryland 25
(2015 Replacement Volume and 2021 Supplement) 26
2 SENATE BILL 92
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Estates and Trusts 3
9–107. 4
(a) (1) When two or more heirs or legatees are entitled to distribution of 5
undivided interests in property of the estate, the personal representative or one or more of 6
the heirs or legatees may petition the court before the formal or informal closing of the 7
estate, to make partition. 8
(2) After notice to the interested heirs or legatees AND SUBJECT TO THE 9
REQUIREMENTS OF TITLE 14, SUBTITLE 7 OF THE REAL PROPERTY ARTICLE, the 10
court shall partition the property in the same manner as provided by law for civil actions 11
of partition. 12
(b) The court may direct the personal representative to sell property which cannot 13
be partitioned without prejudice to the owners and cannot conveniently be allotted to one 14
party. 15
Article – Real Property 16
14–107. 17
(a) (1) [A] SUBJECT TO THE REQUIR EMENTS OF SUBTITLE 7 OF THIS 18
TITLE, A circuit court may decree a partition of any property, either legal or equitable, on 19
the bill or petition of any joint tenant, tenant in common, parcener, or concurrent owner, 20
whether claiming by descent or purchase. 21
(2) If [it appears that] the property cannot be divided without loss or injury 22
to the parties [interested], the court may decree its sale and divide the money resulting 23
from the sale among the parties according to their respective rights. 24
(3) The right to a partition or sale includes the right to a partition or sale 25
of any separate lot or tract of property, and the bill or petition need not pray for a partition 26
of all the lots or tracts. 27
(b) This section applies regardless of whether any party, plaintiff, or defendant is 28
a minor, disabled, or a nonresident. 29
(c) (1) A sale and deed made [pursuant to] UNDER an order of the court in the 30
exercise of the power provided in this section is good and sufficient at law to transfer 31
property of the person. 32
SENATE BILL 92 3
(2) A deed executed [in exercise of the above power provided in] UNDER 1
this section shall be executed by the person the court appoints for the purpose. 2
(d) (1) If any bill or petition is filed under the provisions of this section for the 3
sale of property, any person holding a mortgage, other encumbrance on the property, or an 4
undivided interest in the property may be made a party to the bill, and the property shall 5
be sold free and clear of the mortgage or other encumbrance. [However] 6
(2) NOTWITHSTANDING THE R EQUIREMENTS OF PARAG RAPH (1) OF 7
THIS SUBSECTION , the rights of a lienor shall be protected in the distribution of the 8
proceeds of the sale. 9
SUBTITLE 7. MARYLAND UNIFORM PARTITION OF HEIRS PROPERTY ACT. 10
14–701. 11
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 12
INDICATED. 13
(B) “ASCENDANT” MEANS AN INDIVIDUAL WHO PRECEDES ANOTHER 14
INDIVIDUAL IN LINEAG E, IN THE DIRECT LINE O F ASCENT FROM THE OT HER 15
INDIVIDUAL. 16
(C) “COLLATERAL” MEANS AN INDIVIDUAL WHO IS RELAT ED TO ANOTHER 17
INDIVIDUAL UNDER THE LAW OF INTESTATE SUC CESSION OF THIS STATE BUT WHO 18
IS NOT THE OTHER IND IVIDUAL’S ASCENDANT OR DESCE NDANT. 19
(D) “DESCENDANT” MEANS AN INDIVIDUAL WHO FOLLOWS ANOTHER 20
INDIVIDUAL IN LINEAG E, IN THE DIRECT LINE O F DESCENT FROM THE OTHER 21
INDIVIDUAL. 22
(E) “DETERMINATION OF VALU E” MEANS A COURT ORDER DETERMINING 23
THE FAIR MARKET VALU E OF HEIRS PROPERTY UNDER § 14–705 OR § 14–709 OF THIS 24
SUBTITLE OR ADOPTING THE VALUATION OF THE PROPERTY AGREED TO B Y ALL 25
COTENANTS. 26
(F) “HEIRS PROPERTY” MEANS REAL PROPERTY HELD IN TENANCY IN 27
COMMON THAT SATISFIE S THE FOLLOWING REQU IREMENTS AS OF THE F ILING OF A 28
PARTITION ACTION : 29
(1) THERE IS NO AGREEMENT IN A RECORD BINDING ALL THE 30
COTENANTS THAT GOVER NS THE PARTITION OF THE PROPERTY ; 31
4 SENATE BILL 92
(2) ONE OR MORE OF THE COTEN ANTS ACQUIRED TITLE FROM A 1
RELATIVE, WHETHER LIVING OR DE CEASED; AND 2
(3) ANY OF THE FOLLOWING APPLIES: 3
(I) 20% OR MORE OF THE INTER ESTS ARE HELD BY COT ENANTS 4
WHO ARE RELATIVES ; 5
(II) 20% OR MORE OF THE INTER ESTS ARE HELD BY AN 6
INDIVIDUAL WHO ACQUI RED TITLE FROM A REL ATIVE, WHETHER LIVING OR 7
DECEASED; OR 8
(III) 20% OR MORE OF THE COTEN ANTS ARE RELATIVES . 9
(G) “PARTITION BY SALE ” MEANS A COURT –ORDERED SALE OF THE ENTIRE 10
HEIRS PROPERTY , WHETHER BY AUCTION , SEALED BIDS, OR OPEN–MARKET SALE 11
CONDUCTED UNDER § 14–709 OF THIS SUBTITLE. 12
(H) “PARTITION IN KIND” MEANS THE DIVISION O F HEIRS PROPERTY INT O 13
PHYSICALLY DISTINCT AND SEPARATELY TITLE D PARCELS. 14
(I) “RECORD” MEANS INFORMATION TH AT IS INSCRIBED ON A TANGIBLE 15
MEDIUM OR TH AT IS STORED IN AN E LECTRONIC OR OTHER M EDIUM AND IS 16
RETRIEVABLE IN PERCE IVABLE FORM. 17
(J) “RELATIVE” MEANS AN ASCENDANT , A DESCENDANT , OR A COLLATERAL 18
OR AN INDIVIDUAL OTH ERWISE RELATED TO AN OTHER INDIVIDUAL BY BLOOD, 19
MARRIAGE, ADOPTION, OR LAW OF THIS STATE OTHER THAN THIS SUBTITLE. 20
14–702. 21
(A) (1) IN AN ACTION TO PARTI TION REAL PROPERTY U NDER § 14–107 OF 22
THIS TITLE, THE COURT SHALL DETE RMINE WHETHER THE PR OPERTY IS HEIRS 23
PROPERTY. 24
(2) IF THE COURT DETERMIN ES THAT THE PROPERTY IS HEIRS 25
PROPERTY, THE PROPERTY SHALL BE PARTITIONED UNDER TH IS SUBTITLE UNLESS 26
ALL OF THE COTENANTS AGREE OTHERWISE IN A RECORD. 27
(B) THIS SUBTITLE SUPPLEM ENTS § 14–107 OF THIS TITLE AND , IF AN 28
ACTION IS GOVERNED B Y THIS SUBTITLE, REPLACES PROVISIONS OF § 14–107 OF 29
THIS TITLE THAT ARE INCONSIS TENT WITH THIS SUBTI TLE. 30
SENATE BILL 92 5
14–703. 1
(A) THIS SUBTITLE DOES NO T LIMIT OR AFFECT TH E METHOD BY WHICH 2
SERVICE OF A COMPLAI NT IN A PARTITION AC TION MAY BE MADE . 3
(B) (1) IF THE PLAINTIFF IN A PARTITION ACTION SEE KS NOTICE BY 4
PUBLICATION AN D THE COURT DETERMIN ES THAT THE PROPERTY MAY BE HEIRS 5
PROPERTY, THE PLAINTIFF , NOT LATER THAN 10 DAYS AFTER THE COURT ’S 6
DETERMINATION , SHALL POST AND MAINT AIN WHILE THE ACTION IS PENDING A 7
CONSPICUOUS SIGN ON THE PROPERTY THAT IS THE SUBJECT OF THE A CTION. 8
(2) THE SIGN SHALL STATE THAT THE ACTION HAS COMMENCED AND 9
IDENTIFY THE NAME AN D ADDRESS OF THE COU RT AND THE COMMON DE SIGNATION 10
BY WHICH THE PROPERT Y IS KNOWN. 11
(3) THE COURT MAY REQUIRE THE PLAINTIFF TO PUB LISH ON THE 12
SIGN THE NAME OF THE PLAINTIFF AND THE KNOWN DEF ENDANTS. 13
14–704. 14
IF THE COURT APPOINTS COMMISSIONERS UNDER THE MARYLAND RULES, 15
EACH COMMISSIONER , IN ADDITION TO THE R EQUIREMENTS AND 16
DISQUALIFICATIONS AP PLICABLE TO COMMISSI ONERS UNDER THE MARYLAND 17
RULES, MUST BE DISINTERESTE D AND IMPARTIAL AND NOT A PARTY TO OR A 18
PARTICIPANT IN THE A CTION. 19
14–705. 20
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B) AND (C) OF THIS SECTION, IF 21
THE COURT DETERMINES THAT THE PROPERTY TH AT IS THE SUBJECT OF A 22
PARTITION ACTION IS HEIRS PROPERTY , THE COURT SHAL L DETERMINE THE FAIR 23
MARKET VALUE OF THE PROPERTY BY ORDERING AN APPRAISAL IN ACCO RDANCE 24
WITH SUBSECTION (D) OF THIS SECTION. 25
(B) IF ALL COTENANTS HAVE AGREED TO THE VALUE OF THE PROPERTY OR 26
TO ANOTHER METHOD OF VALUATION, THE COURT SHALL ADOP T THAT VALU E OR 27
THE VALUE PRODUCED B Y THE AGREED METHOD OF VALUATION . 28
(C) IF THE COURT DETERMIN ES THAT THE EVIDENTI ARY VALUE OF AN 29
APPRAISAL IS OUTWEIG HED BY THE COST OF T HE APPRAISAL, THE COURT, AFTER 30
AN EVIDENTIARY HEARI NG, SHALL DETERMINE THE FAIR MARKET VALUE O F THE 31
PROPERTY AND SEND NO TICE TO THE PARTIES OF THE VALUE. 32
6 SENATE BILL 92
(D) (1) IF THE COURT ORDERS A N APPRAISAL , THE COURT SHALL 1
APPOINT A DISINTERES TED REAL ESTATE APPR AISER LICENSED IN TH E STATE TO 2
DETERMINE THE FAIR M ARKET VALUE OF THE P ROPERTY ASSUMING SOL E 3
OWNERSHIP OF THE FEE SI MPLE ESTATE. 4
(2) ON COMPLETION OF THE APPRAISAL, THE APPRAISER SHALL FILE 5
A SWORN OR VERIFIED APPRAISAL WITH THE C OURT. 6
(E) IF AN APPRAISAL IS CO NDUCTED UNDER SUBSEC TION (D) OF THIS 7
SECTION, NOT LATER THAN 10 DAYS AFTER THE APPRA ISAL IS FILED, THE COURT 8
SHALL SEND NOTICE TO EACH PARTY WITH A KN OWN ADDRESS , STATING: 9
(1) THE APPRAISED FAIR MA RKET VALUE OF THE PR OPERTY; 10
(2) THAT THE APPRAISAL IS AVAILABLE AT THE OFF ICE OF THE 11
CLERK; AND 12
(3) THAT A PARTY MAY FILE WITH THE COUR T AN OBJECTION TO TH E 13
APPRAISAL NOT LATER THAN 30 DAYS AFTER THE NOTIC E IS SENT, STATING THE 14
GROUNDS FOR THE OBJE CTION. 15
(F) (1) IF AN APPRAISAL IS FI LED WITH THE COURT U NDER SUBSECTION 16
(D) OF THIS SECTION, THE COURT SHALL COND UCT A HEARING TO DET ERMINE THE 17
FAIR MARKET VALUE OF THE PROPERTY NOT SOO NER THAN 30 DAYS AFTER A COPY 18
OF THE NOTICE OF THE APPRAISAL IS SENT TO EACH PARTY UNDER SUB SECTION (E) 19
OF THIS SECTION , WHETHER OR NOT AN OB JECTION TO THE APPRA ISAL IS FILED 20
UNDER SUBSECTION (E)(3) OF THIS SECTION. 21
(2) IN ADDITION TO THE CO URT–ORDERED APPRAISAL , THE COURT 22
MAY CONSIDER ANY OTH ER EVIDENCE OF VALUE OFFERED BY A PARTY . 23
(G) AFTER A HEARING UNDER SUBSECTION (F) OF THIS SECTION , BUT 24
BEFORE CONSIDERING T HE MERITS OF THE PAR TITION ACTION, THE COURT SHALL 25
DETERMINE THE FAIR M ARKET VALUE OF THE P ROPERTY AND SEND NOT ICE TO THE 26
PARTIES OF THE VALUE . 27
14–706. 28
(A) IF ANY COTENANT REQUE STED PARTITION BY SA LE, AFTER THE 29
DETERMINATION OF VAL UE UNDER § 14–705 OF THIS SUBTITLE , THE COURT SHALL 30
SEND NOTICE TO THE PARTIES THAT ANY COTENANT, EXCEPT A COTENANT TH AT 31
REQUESTED PARTITION BY SALE, MAY BUY ALL THE INTE RESTS OF THE COTENAN TS 32
THAT REQUESTED PARTI TION BY SALE. 33 SENATE BILL 92 7
(B) NOT LATER THAN 45 DAYS AFTER THE NOTIC E IS SENT UNDER 1
SUBSECTION (A) OF THIS SECTION , ANY COTENANT, EXCEPT A COTENANT TH AT 2
REQUESTED PARTITION BY SALE, MAY GIVE NOTICE TO T HE COURT THAT THE 3
COTENANT ELECTS TO B UY ALL THE INTERESTS OF THE COTENANTS THA T 4
REQUESTED PARTITION BY SALE. 5
(C) THE PURCHASE PRICE FO R EACH OF THE INTERE STS OF A COTENANT 6
THAT REQUESTED PARTI TION BY SALE IS THE VALUE OF THE ENTIRE PARCEL 7
DETERMINED UNDER § 14–705 OF THIS SUBTITLE MUL TIPLIED BY THE COTEN ANT’S 8
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL . 9
(D) AFTER EXPIRATION OF T HE PERIOD DESCRIBED IN SUBSECTION (B) OF 10
THIS SECTION, THE FOLLOWING RULES APPLY: 11
(1) IF ONLY ONE COTENANT ELECTS TO BUY ALL TH E INTERESTS OF 12
THE COTENANTS THAT R EQUESTED PARTITION B Y SALE, THE COURT SHALL NOTI FY 13
ALL THE PARTIES ; 14
(2) IF MORE THAN ONE COTE NANT ELECTS TO BUY A LL THE 15
INTERESTS OF THE COTENANTS THAT R EQUESTED PARTITION B Y SALE, THE COURT 16
SHALL: 17
(I) ALLOCATE THE RIGHT TO BUY THOSE INTERESTS AMONG 18
THE ELECTING COTENAN TS BASED ON EACH ELE CTING COTENANT ’S EXISTING 19
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL DIVIDED BY THE TOTAL EXISTING 20
FRACTIONAL OWNERSHIP OF ALL COTENANTS ELE CTING TO BUY; 21
(II) NOTIFY ALL THE PARTIE S THAT MORE THAN ONE 22
COTENANT ELECTED TO BUY ALL THE INTEREST S OF THE COTENANTS T HAT 23
REQUESTED PARTITION BY SALE; AND 24
(III) SEND NOTICE OF THE PR ICE TO BE PAID BY EACH ELECTING 25
COTENANT; OR 26
(3) IF NO COTENANT ELECTS TO BUY ALL THE INTER ESTS OF THE 27
COTENANTS THAT REQUE STED PARTITION BY SA LE, THE COURT SHALL SEND 28
NOTICE TO ALL THE PA RTIES AND RESOLVE TH E PARTITION ACTION U NDER § 29
14–709(A) AND (B) OF THIS SUBTITLE. 30
(E) (1) IF THE COURT SENDS NO TICE TO THE PARTIES UNDER 31
SUBSECTION (D)(1) OR (2) OF THIS SECTION , THE COURT SHALL SET A DATE NOT 32 8 SENATE BILL 92
SOONER THAN 60 DAYS AFTER THE DATE THE NOTICE WAS SENT BY WHICH 1
ELECTING COTENANTS M UST PAY THEIR APPORT IONED PRICE INTO THE COURT. 2
(2) AFTER THE DATE SET BY THE COURT UNDER PARA GRAPH (1) OF 3
THIS SUBSECTION , THE FOLLOWING RULES APPLY: 4
(I) IF ALL ELECTING COTEN ANTS PAY THEIR APPOR TIONED 5
PRICE INTO COURT ON TIME, THE COURT SHALL ISSU E AN ORDER REALLOCAT ING 6
ALL THE INTERESTS OF THE COT ENANTS AND DISBURSE THE AMOUNTS HELD BY THE 7
COURT TO THE PERSONS ENTITLED TO THE FUND S; 8
(II) IF NO ELECTING COTENA NT PAYS THE COTENANT ’S 9
APPORTIONED PRICE ON TIME, THE COURT SHALL RESO LVE THE PARTITION AC TION 10
UNDER § 14–707(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE 11
COTENANTS THAT REQUE STED PARTITION BY SA LE WERE NOT PURCHASE D; OR 12
(III) IF ONE OR MORE BUT NO T ALL OF THE ELECTIN G 13
COTENANTS FAIL TO PA Y THEIR APPORTIONED PRICE ON TIME , THE COURT, ON 14
MOTION, SHALL GIVE NO TICE OF THE INTEREST REMAINING AND THE PR ICE FOR 15
THAT INTEREST TO THE ELECTING COTENANTS T HAT PAID THEIR APPOR TIONED 16
PRICE. 17
(F) (1) NOT LATER THAN 20 DAYS AFTER THE COURT GIVES NOTICE 18
UNDER SUBSECTION (E)(2)(III) OF THIS SECTION , ANY COTENANT THAT PA ID THE 19
COTENANT’S APPORTIONED PRICE MAY ELECT TO PURCHAS E ALL OF THE 20
REMAINING INTEREST B Y PAYING THE ENTIRE PRICE INTO THE COURT . 21
(2) AFTER THE 20–DAY PERIOD DESCRIBED IN PARAGRAPH (1) OF 22
THIS SUBSECTION , THE FOLLOWING RULES APPLY: 23
(I) IF ONLY ONE CO TENANT PAYS THE ENTI RE PRICE FOR THE 24
REMAINING INTEREST , THE COURT SHALL : 25
1. ISSUE AN ORDER REALLO CATING THE REMAINING 26
INTEREST TO THAT COT ENANT; AND 27
2. PROMPTLY ISSUE AN ORD ER REALLOCATING THE 28
INTERESTS OF ALL OF THE COTENANTS AND DI SBURSE THE A MOUNTS HELD BY THE 29
COURT TO THE PERSONS ENTITLED TO THEM ; 30
(II) IF NO COTENANT PAYS T HE ENTIRE PRICE FOR THE 31
REMAINING INTEREST , THE COURT SHALL RESO LVE THE PARTITION AC TION UNDER 32 SENATE BILL 92 9
§ 14–707(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE COTENANT S 1
THAT REQUESTED PARTI TION BY SALE WERE NO T PURCHASED ; AND 2
(III) IF MORE THAN ONE COTE NANT PAYS THE ENTIRE PRICE 3
FOR THE REMAINING IN TEREST, THE COURT SHALL : 4
1. REAPPORTION THE REMAI NING INTEREST AMONG 5
THOSE PAYING COTENAN TS, BASED ON EACH PAYING COTENANT’S ORIGINAL 6
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL DIVIDED BY THE TOTAL ORIGINAL 7
FRACTIONAL OWNERSHIP OF ALL COTENANTS THA T PAID THE ENTIRE PR ICE FOR 8
THE REMAINING INTERE ST; AND 9
2. PROMPTLY ISSUE AN ORD ER REALLOCATING ALL OF 10
THE COTENANTS ’ INTERESTS, DISBURSE THE AMOUNTS HELD BY THE COURT TO THE 11
PERSONS ENTITLED TO THEM, AND REFUND ANY EXCES S PAYMENT HELD BY TH E 12
COURT. 13
(G) NOT LATER THAN 45 DAYS AFTER THE COURT SENDS NOTICE TO THE 14
PARTIES UNDER SUBSEC TION (A) OF THIS SECTION , ANY COTENANT ENTITLED TO 15
BUY AN INTEREST UNDE R THIS SECTION MAY R EQUEST THE COURT TO AUTHORIZE 16
THE SALE AS PART OF THE PENDING ACTION O F THE INTERESTS OF C OTENANTS 17
NAMED AS DEFENDANTS AND SERVED WITH THE COMPLAINT BUT THAT D ID NOT 18
APPEAR IN THE ACTION . 19
(H) IF THE COURT RECEIVES A TIM ELY REQUEST UNDER SU BSECTION (G) OF 20
THIS SECTION, THE COURT , AFTER A HEARING , MAY DENY THE REQUEST OR 21
AUTHORIZE THE REQUES TED ADDITIONAL SALE ON TERMS THE COURT D ETERMINES 22
ARE FAIR AND REASONA BLE, SUBJECT TO THE FOLLO WING LIMITATIONS : 23
(1) A SALE AUTHORIZED UNDE R THIS SUBSECTION MA Y OCCUR ONLY 24
AFTER THE PURCHASE P RICES FOR ALL INTERE STS SUBJECT TO SALE UNDER 25
SUBSECTIONS (A) THROUGH (F) OF THIS SECTION HAVE BEEN PAID INTO COURT AND 26
THOSE INTERESTS HAVE BEEN REALLOCATED AMO NG THE COTENAN TS AS 27
PROVIDED IN SUBSECTI ONS (A) THROUGH (F) OF THIS SECTION; AND 28
(2) THE PURCHASE PRICE FO R THE INTEREST OF A NONAPPEARING 29
COTENANT IS BASED ON THE COURT’S DETERMINATION OF V ALUE UNDER § 14–705 30
OF THIS SUBTITLE. 31
14–707. 32
(A) (1) IF UNDER § 14–706 OF THIS SUBTITLE ALL THE INTERESTS OF ALL 33
COTENANTS THAT REQUE STED PARTITION BY SA LE ARE NOT PURCHASED BY OTHER 34 10 SENATE BILL 92
COTENANTS, OR IF AFTER THE CONC LUSION OF THE BUYOUT A COTENANT REMAINS 1
THAT HAS REQUESTED P ARTITION IN KIND, THE COURT SHALL ORDE R PARTITION IN 2
KIND UNLESS THE COUR T, AFTER CONSIDERATION OF THE FACTORS LISTE D IN § 3
14–708 OF THIS SUBTITLE , FINDS THAT PARTITION IN KIND WILL RESULT IN GREAT 4
PREJUDICE TO THE COT ENANTS AS A GROUP . 5
(2) IN CONSIDERING WHETHE R TO ORDER PARTITION IN KIND, THE 6
COURT SHA LL APPROVE A REQUEST BY TWO OR MORE PARTI ES TO HAVE THEIR 7
INDIVIDUAL INTERESTS AGGREGATED . 8
(B) IF THE COURT DOES NOT ORDER PARTITION IN K IND UNDER 9
SUBSECTION (A) OF THIS SECTION , THE COURT SHALL ORDE R PARTITION BY SALE 10
UNDER § 14–709 OF THIS SUBTITLE OR , IF NO COTENANT REQUE STED PARTITION BY 11
SALE, THE COURT SHALL DISM ISS THE ACTION. 12
(C) IF THE COURT ORDERS P ARTITION IN KIND IN ACCORDANCE WITH 13
SUBSECTION (A) OF THIS SECTION , THE COURT MAY REQUIR E THAT ONE OR MORE 14
COTENANTS PAY ONE OR MORE OTHER COTENANTS AMOUNTS SO THAT THE 15
PAYMENTS, TAKEN TOGETHER WITH THE VALUE OF THE IN –KIND DISTRIBUTIONS T O 16
THE COTENANTS , WILL MAKE THE PARTIT ION IN KIND JUST AND PROPORTIONATE 17
IN VALUE TO THE FRAC TIONAL INTERESTS HEL D. 18
(D) IF THE COURT ORDERS P ARTITION IN KIND , THE COURT SHALL 19
ALLOCATE TO THE COTE NANTS THAT ARE UNKNO WN, UNLOCATABLE , OR THE 20
SUBJECT OF A DEFAULT JUDGMENT, IF THEIR INTERESTS W ERE NOT BOUGHT OUT 21
UNDER § 14–706 OF THIS SUBTITLE, A PART OF THE PROPER TY REPRESENTING THE 22
COMBINED INTERESTS O F THESE COTENANTS AS DETERMINED BY THE COURT AND 23
THIS PART OF THE PRO PERTY SHALL REMAIN U NDIVIDED. 24
14–708. 25
(A) IN DETERMINING WHETHE R PARTITION IN KIND UNDER § 14–707(A) OF 26
THIS SUBTITLE WOULD RESULT IN GREAT PREJ UDICE TO THE COTENAN TS AS A 27
GROUP, THE COURT SHALL CONS IDER THE FOLLOWING : 28
(1) WHETHER THE HEIRS PRO PERTY PRACTICABLY CA N BE DIVIDED 29
AMONG THE COTENANTS ; 30
(2) WHETHER PARTITION IN KIND WOULD APPORTION THE 31
PROPERTY IN SUCH A W AY THAT THE AGGREGAT E FAIR MARKET VALUE OF THE 32
PARCELS RESULTING FR OM THE DIVISION WOULD BE MATERIALLY LESS THAN THE 33
VALUE OF THE PROPERT Y IF IT WERE SOLD AS A WHOLE, TAKING INTO ACCOUNT THE 34
CONDITION UNDER WHIC H A COURT–ORDERED SALE LIKELY WOULD OCCUR ; 35 SENATE BILL 92 11
(3) EVIDENCE OF THE COLLE CTIVE DURATION OF OW NERSHIP OR 1
POSSESSION OF THE PR OPERTY BY A COTENANT AND ON E OR MORE PREDECESSO RS 2
IN TITLE OR PREDECES SORS IN POSSESSION T O THE COTENANT WHO A RE OR WERE 3
RELATIVES OF THE COT ENANT OR EACH OTHER ; 4
(4) THE SENTIMENTAL ATTAC HMENT OF A COTENANT TO THE 5
PROPERTY, INCLUDING ANY ATTACH MENT ARISING BECAUSE THE PROPERTY HAS 6
ANCESTRAL OR OTHER U NIQUE OR SPECIAL VAL UE TO THE COTENANT ; 7
(5) THE LAWFUL USE BEING MADE OF THE PROPERTY BY A COTENANT 8
AND THE DEGREE TO WH ICH THE COTENANT WOU LD BE HARMED IF THE COTENANT 9
COULD NOT CONTINUE T HE SAME USE OF THE PROPERTY; 10
(6) THE DEGREE TO WHICH T HE COTENANTS HAVE CO NTRIBUTED 11
THEIR PRO RATA SHARE OF THE PROPERTY TAXE S, INSURANCE, AND OTHER 12
EXPENSES ASSOCIATED WITH MAINTAINING OWN ERSHIP OF THE PROPER TY OR 13
HAVE CONTRIBUTED TO THE PHYSICAL IMPROVE MENT, MAINTENANCE , OR UPKEEP 14
OF THE PROPERTY ; AND 15
(7) ANY OTHER RELEVANT FA CTOR. 16
(B) THE COURT MAY NOT CON SIDER ANY ONE FACTOR IN SUBSECTION (A) 17
OF THIS SECTION TO B E DISPOSITIVE WITHOU T WEIGHING THE TOTAL ITY OF ALL 18
RELEVANT FACTORS AND CIRCUMSTANCES . 19
14–709. 20
(A) IF THE COURT ORDERS A SALE OF HEIRS PROPER TY, THE SALE SHALL 21
BE AN OPEN–MARKET SALE UNLESS T HE COURT FINDS THAT A SALE BY SEALED BID S 22
OR AN AUCTION WOULD BE MORE ECONOMICALLY ADVANTAGEOUS AND IN THE BEST 23
INTEREST OF THE COTE NANTS AS A GROUP . 24
(B) (1) IF THE COURT ORDERS AN O PEN–MARKET SALE AND THE 25
PARTIES, NOT LATER THAN 10 DAYS AFTER THE ENTRY OF THE ORDER , AGREE ON A 26
REAL ESTATE BROKER L ICENSED IN THE STATE TO OFFER THE PR OPERTY FOR SALE , 27
THE COURT SHALL APPO INT THE BROKER AND E STABLISH A REASONABL E 28
COMMISSION. 29
(2) IF THE PARTIES DO NOT AGREE ON A BROKER , THE COURT SHALL 30
APPOINT A DISINTERES TED REAL ESTATE BROK ER LICENSED IN THE STATE TO 31
OFFER THE PROPERTY F OR SALE AND SHALL ES TABLISH A REASONABLE 32
COMMISSION. 33 12 SENATE BILL 92
(3) A BROKER APPOINTED UND ER THIS SUBS ECTION SHALL OFFER 1
THE PROPERTY FOR SAL E IN A COMMERCIALLY REASONABLE MANNER AT A PRICE 2
NOT LOWER THAN THE D ETERMINATION OF VALU E AND ON THE TERMS A ND 3
CONDITIONS ESTABLISH ED BY THE COURT . 4
(C) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 5
OBTAINS WITHIN A REAS ONABLE TIME AN OFFER TO PURCHASE THE PROP ERTY FOR 6
AT LEAST THE DETERMI NATION OF VALUE : 7
(1) THE BROKER SHALL COMP LY WITH THE REPORTIN G 8
REQUIREMENTS IN § 14–710 OF THIS SUBTITLE ; AND 9
(2) THE SALE MAY BE COMPL ETED IN ACCORDANCE W ITH STATE LAW 10
OTHER THAN THIS SUBT ITLE. 11
(D) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 12
DOES NOT OBTAIN WITH IN A REASONABLE TIME AN OFFER TO PURCHASE THE 13
PROPERTY FOR AT LEAS T THE DETERMINATION OF VALUE, THE COURT, AFTER 14
HEARING, MAY: 15
(1) APPROVE THE HIGHEST O UTSTANDING OFFER , IF ANY; 16
(2) REDETERMINE THE VALUE OF THE PROPERTY AND ORDER THAT 17
THE PROPERTY CONTINU E TO BE OFFERED FOR AN ADDITIONAL TIME ; OR 18
(3) ORDER THAT THE PROPER TY BE SOLD BY SEALED BIDS OR AT AN 19
AUCTION. 20
(E) (1) IF THE COURT ORDERS A SALE BY SEALED BIDS OR AN AUCTION , 21
THE COURT SHALL SET TERMS AND CONDITIONS OF THE SALE. 22
(2) IF THE COURT ORDERS A N AUCTION, THE AUCTION SHALL BE 23
CONDUCTED UNDER § 14–107 OF THIS TITLE. 24
(F) IF A PURCHASER IS ENT ITLED TO A SHAR E OF THE PROCEEDS OF THE 25
SALE, THE PURCHASER IS ALS O ENTITLED TO A CRED IT AGAINST THE PRICE IN AN 26
AMOUNT EQUAL TO THE PURCHASER ’S SHARE OF THE PROCE EDS. 27
14–710. 28
(A) UNLESS REQUIRED TO DO SO WITHIN A SHORTER PERIOD OF TIME 29
UNDER § 14–107 OF THIS TITLE, A BROKER APPOINTED U NDER § 14–709(B) OF THIS 30 SENATE BILL 92 13
SUBTITLE TO OFFER HE IRS PROPERTY FOR OPE N–MARKET SALE SHALL FI LE A 1
REPORT WITH THE COUR T NOT LATER THAN 7 DAYS AFTER RECEIVING AN OFFER TO 2
PURCHASE THE PROPERT Y FOR AT LEAST THE V ALUE DETERMINED UNDE R § 14–705 3
OR § 14–709 OF THIS SUBTITLE. 4
(B) A REPORT REQUIRED UNDE R SUBSECTION (A) OF THIS SECTION SHAL L 5
CONTAIN THE FOLLOWIN G INFORMATION : 6
(1) A DESCRIPTION OF THE P ROPERTY TO BE SOLD T O EACH BUYER; 7
(2) THE NAME OF EACH BUYE R; 8
(3) THE PROPOSED PURCHASE PRICE; 9
(4) THE TERMS AND CONDITI ONS OF THE PROPOSED SALE, 10
INCLUDING THE TERMS OF ANY OWNER FINANCI NG; 11
(5) THE AMOUNTS TO BE PAI D TO LIENHOLDERS ; 12
(6) A STATEMENT OF CONTRAC TUAL OR OTHER ARRANG EMENTS OR 13
CONDITIONS OF THE BR OKER’S COMMISSION; AND 14
(7) OTHER MATERIAL FACTS RELEVANT TO THE SALE . 15
14–711. 16
IN APPLYING AND CONST RUING THIS SUBTITLE , WHICH IS A UNIFORM A CT, 17
CONSIDERATION SHALL BE GIVEN TO THE NEED TO PROMOTE UNIFORMIT Y OF THE 18
LAW WITH RESPECT TO THE SUBJECT MATTER O F THE LAW AMONG THE STATES 19
THAT ENACT IT. 20
14–712. 21
THIS SUBTITLE MODIFIE S, LIMITS, AND SUPERSEDES THE ELECTRONIC 22
SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT, 15 U.S.C. § 7001 ET SEQ., 23
BUT DOES NOT MODIFY , LIMIT, OR SUPERSEDE § 101(C) OF THAT ACT, 15 U.S.C. § 24
7001(C), OR AUTHORIZE ELECTRONIC DELIVERY OF ANY OF T HE NOTICES 25
DESCRIBED IN § 103(B) OF THAT ACT, 15 U.S.C. § 7003(B). 26
14–713. 27
THIS SUBTITLE MAY BE CITED AS THE MARYLAND UNIFORM PARTITION OF 28
HEIRS PROPERTY ACT. 29 14 SENATE BILL 92
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 1
apply only prospectively and may not be applied or interpreted to have any effect on or 2
application to any partition action filed before the effective date of this Act. 3
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2022. 5