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.
*sb0092*
SENATE BILL 92
N1, N2 2lr0801
(PRE–FILED) CF HB 777
By: Senator Augustine Senators Augustine, Hettleman, Sydnor, and West
Requested: October 18, 2021
Introduced and read first time: January 12, 2022
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 3, 2022
CHAPTER ______
AN ACT concerning 1
Maryland Uniform Partition of Heirs Property Act 2
Real Property – Partition of Property 3
FOR the purpose of requiring the court in an action to partition real property to determine 4
whether the property is heirs property for the purpose of partition of the property 5
among certain cotenants and if so, to determine the market value of the property 6
unless the court makes certain determinations; establishing procedures for the 7
purchase of interests in heirs real property by cotenants, for the partition in kind of 8
heirs real property among cotenants, and for the partition by sale of heirs real 9
property on the open market by a real estate broker licensed in this State; and 10
generally relating to the partition of heirs real property. 11
BY repealing and reenacting, with amendments, 12
Article – Estates and Trusts 13
Section 9–107 14
Annotated Code of Maryland 15
(2017 Replacement Volume and 2021 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Real Property 18
Section 14–107 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2021 Supplement) 21
2 SENATE BILL 92
BY adding to 1
Article – Real Property 2
Section 14–701 through 14–713 to be under the new subtitle “Subtitle 7. Maryland 3
Uniform Partition of Heirs Property Act Partition of Real Property” 4
Annotated Code of Maryland 5
(2015 Replacement Volume and 2021 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Estates and Trusts 9
9–107. 10
(a) (1) When two or more heirs or legatees are entitled to distribution of 11
undivided interests in property of the estate, the personal representative or one or more of 12
the heirs or legatees may petition the court before the formal or informal closing of the 13
estate, to make partition. 14
(2) After notice to the interested heirs or legatees AND SUBJECT TO THE 15
REQUIREMENTS OF TITLE 14, SUBTITLE 7 OF THE REAL PROPERTY ARTICLE, the 16
court shall partition the property in the same manner as provided by law for civil actions 17
of partition. 18
(b) The court may direct the personal representative to sell property which cannot 19
be partitioned without prejudice to the owners and cannot conveniently be allotted to one 20
party. 21
Article – Real Property 22
14–107. 23
(a) (1) [A] SUBJECT TO THE REQUIR EMENTS OF SUBTITLE 7 OF THIS 24
TITLE, A circuit court may decree a partition of any property, either legal or equitable, on 25
the bill or petition of any joint tenant, tenant in common, parcener, or concurrent owner, 26
whether claiming by descent or purchase. 27
(2) If [it appears that] the property cannot be divided without loss or injury 28
to the parties [interested], the court may decree its sale and divide the money resulting 29
from the sale among the parties according to their respective rights. 30
(3) The right to a partition or sale includes the right to a partition or sale 31
of any separate lot or tract of property, and the bill or petition need not pray for a partition 32
of all the lots or tracts. 33
SENATE BILL 92 3
(b) This section applies regardless of whether any party, plaintiff, or defendant is 1
a minor, disabled, or a nonresident. 2
(c) (1) A sale and deed made [pursuant to] UNDER an order of the court in the 3
exercise of the power provided in this section is good and sufficient at law to transfer 4
property of the person. 5
(2) A deed executed [in exercise of the above power provided in] UNDER 6
this section shall be executed by the person the court appoints for the purpose. 7
(d) (1) If any bill or petition is filed under the provisions of this section for the 8
sale of property, any person holding a mortgage, other encumbrance on the property, or an 9
undivided interest in the property may be made a party to the bill, and the property shall 10
be sold free and clear of the mortgage or other encumbrance. [However] 11
(2) NOTWITHSTANDING THE R EQUIREMENTS OF PARAGRAPH (1) OF 12
THIS SUBSECTION , the rights of a lienor shall be protected in the distribution of the 13
proceeds of the sale. 14
SUBTITLE 7. MARYLAND UNIFORM PARTITION OF HEIRS PROPERTY ACT. 15
14–701. 16
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(B) “ASCENDANT” MEANS AN INDIVIDUAL WHO PRECEDES ANOTHER 19
INDIVIDUAL IN LINEAG E, IN THE DIRECT LINE O F ASCENT FROM THE OT HER 20
INDIVIDUAL. 21
(C) “COLLATERAL” MEANS AN INDIVIDUAL WHO IS RELATED TO AN OTHER 22
INDIVIDUAL UNDER THE LAW OF INTESTATE SUCCESSION OF THIS STATE BUT WHO 23
IS NOT THE OTHER IND IVIDUAL’S ASCENDANT OR DESCE NDANT. 24
(D) “DESCENDANT” MEANS AN INDIVIDUAL WHO FOLLOWS ANOTHER 25
INDIVIDUAL IN LINEAG E, IN THE DIRECT LINE O F DESCENT FROM THE O THER 26
INDIVIDUAL. 27
(E) “DETERMINATION OF VALUE” MEANS A COURT ORDER DETERMINING 28
THE FAIR MARKET VALU E OF HEIRS PROPERTY UNDER § 14–705 OR § 14–709 OF THIS 29
SUBTITLE OR ADOPTING THE VALUATION OF THE PROPERTY AGREED TO B Y ALL 30
COTENANTS. 31
4 SENATE BILL 92
(F) “HEIRS PROPERTY ” MEANS REAL PROPERTY HELD IN TENANCY IN 1
COMMON THAT SATISFIE S THE FOLLOWING REQU IREMENTS AS OF THE F ILING OF A 2
PARTITION ACTION : 3
(1) THERE IS NO AGREEMENT IN A RECORD BINDING ALL THE 4
COTENANTS THAT GOVER NS THE PARTITION OF THE PROPERTY ; 5
(2) ONE OR MORE OF THE CO TENANTS ACQUIRED TIT LE FROM A 6
RELATIVE, WHETHER LIVING OR DE CEASED; AND 7
(3) ANY OF THE FOLLOWING APPLIES: 8
(I) 20% OR MORE OF THE INTER ESTS ARE HELD BY COT ENANTS 9
WHO ARE RELATIVES ; 10
(II) 20% OR MORE OF THE INTER ESTS ARE HELD BY AN 11
INDIVIDUAL WHO ACQUI RED TITLE FROM A REL ATIVE, WHETHER LIVING OR 12
DECEASED; OR 13
(III) 20% OR MORE OF THE COTEN ANTS ARE RELATIVES . 14
(G) “PARTITION BY SALE ” MEANS A COURT –ORDERED SALE OF THE ENTIRE 15
HEIRS PROPERTY , WHETHER BY AUCTION , SEALED BIDS, OR OPEN–MARKET SALE 16
CONDUCTED UNDER § 14–709 OF THIS SUBTITLE. 17
(H) “PARTITION IN KIND” MEANS THE DIVISION O F HEIRS PROPERTY INT O 18
PHYSICALLY DISTINCT AND SEPARATELY TITLE D PARCELS. 19
(I) “RECORD” MEANS INFORMATION TH AT IS INSCRIBED ON A TANGIBLE 20
MEDIUM OR THAT IS ST ORED IN AN ELECTRONI C OR OTHER MEDIUM AN D IS 21
RETRIEVABLE IN PERCE IVABLE FORM. 22
(J) “RELATIVE” MEANS AN ASCENDANT , A DESCENDANT , OR A COLLATERAL 23
OR AN INDIVIDUAL OTH ERWISE RELATED TO AN OTHER INDIVIDUAL BY BLOOD, 24
MARRIAGE, ADOPTION, OR LAW OF THIS STATE OTHER THAN THIS SUBTITLE. 25
14–702. 26
(A) (1) IN AN ACTION TO PARTI TION REAL PROPERTY U NDER § 14–107 OF 27
THIS TITLE, THE COURT SHALL DETE RMINE WHETHER THE PR OPERTY IS HEIRS 28
PROPERTY. 29
SENATE BILL 92 5
(2) IF THE COURT DETERMIN ES THAT THE PROPERTY IS HEIRS 1
PROPERTY, THE PROPERTY SHALL B E PARTITIONED UNDER THIS SUBTITLE UNLESS 2
ALL OF THE COTENANTS AGREE OTHERWISE IN A RECORD. 3
(B) THIS SUBTITLE SUPPLEM ENTS § 14–107 OF THIS TITLE AND , IF AN 4
ACTION IS GOVERNED B Y THIS SUBTITLE, REPLACES PROVISIONS OF § 14–107 OF 5
THIS TITLE THAT ARE INCONSISTENT WITH TH IS SUBTITLE. 6
14–703. 7
(A) THIS SUBTITLE DOES NO T LIMIT OR AFFECT TH E METHOD BY WHICH 8
SERVICE OF A COMPLAI NT IN A PARTITION AC TION MAY BE MADE . 9
(B) (1) IF THE PLAINTIFF IN A PARTITION ACTION SEE KS NOTICE BY 10
PUBLICATION AND THE COURT DETERMINES THA T THE PROPERTY MAY BE HEIRS 11
PROPERTY, THE PLAINTIFF , NOT LATER THAN 10 DAYS AFTER THE COURT ’S 12
DETERMINATION , SHALL POST AND MAINT AIN WHILE THE ACTION IS PENDING A 13
CONSPICUOUS SIGN ON THE PROPERTY THAT IS THE SUBJECT OF THE A CTION. 14
(2) THE SIGN SHALL STATE THAT THE ACTIO N HAS COMMENCED AND 15
IDENTIFY THE NAME AN D ADDRESS OF THE COU RT AND THE COMMON DE SIGNATION 16
BY WHICH THE PROPERT Y IS KNOWN. 17
(3) THE COURT MAY REQUIRE THE PLAINTIFF TO PUB LISH ON THE 18
SIGN THE NAME OF THE PLAINTIFF AND THE KN OWN DEFENDANTS . 19
14–704. 20
IF THE COURT APPOINTS CO MMISSIONERS UNDER TH E MARYLAND RULES, 21
EACH COMMISSIONER , IN ADDITION TO THE R EQUIREMENTS AND 22
DISQUALIFICATIONS AP PLICABLE TO COMMISSI ONERS UNDER THE MARYLAND 23
RULES, MUST BE DISINTERESTE D AND IMPARTIAL AND NOT A PARTY TO OR A 24
PARTICIPANT IN THE ACTION. 25
14–705. 26
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B) AND (C) OF THIS SECTION, IF 27
THE COURT DETERMINES THAT THE PROPERTY TH AT IS THE SUBJECT OF A 28
PARTITION ACTION IS HEIRS PROPERTY , THE COURT SHALL DETE RMINE THE FAIR 29
MARKET VALUE OF THE PROPERTY BY ORDERING AN APPRAISAL IN ACCO RDANCE 30
WITH SUBSECTION (D) OF THIS SECTION. 31
6 SENATE BILL 92
(B) IF ALL COTENANTS HAVE AGREED TO THE VALUE OF THE PROPERTY OR 1
TO ANOTHER METHOD OF VALUATION, THE COURT SHALL ADOP T THAT VALUE OR 2
THE VALUE PRODUCED B Y THE AGREED MET HOD OF VALUATION . 3
(C) IF THE COURT DETERMIN ES THAT THE EVIDENTI ARY VALUE OF AN 4
APPRAISAL IS OUTWEIG HED BY THE COST OF T HE APPRAISAL, THE COURT, AFTER 5
AN EVIDENTIARY HEARI NG, SHALL DETERMINE THE FAIR MARKET VALUE OF THE 6
PROPERTY AND SEND NO TICE TO THE PAR TIES OF THE VALUE . 7
(D) (1) IF THE COURT ORDERS A N APPRAISAL , THE COURT SHALL 8
APPOINT A DISINTERES TED REAL ESTATE APPR AISER LICENSED IN TH E STATE TO 9
DETERMINE THE FAIR M ARKET VALUE OF THE P ROPERTY ASSUMING SOL E 10
OWNERSHIP OF THE FEE SIMPLE ESTATE . 11
(2) ON COMPLETION OF THE APPRAISAL, THE APPRAISER SHALL FILE 12
A SWORN OR VERIFIED APPRAISAL WITH THE C OURT. 13
(E) IF AN APPRAISAL IS CO NDUCTED UNDER SUBSEC TION (D) OF THIS 14
SECTION, NOT LATER THAN 10 DAYS AFTER THE APPRA ISAL IS FILED, THE COURT 15
SHALL SEND NOTICE TO EACH PARTY WITH A KNOWN ADDRESS , STATING: 16
(1) THE APPRAISED FAIR MA RKET VALUE OF THE PR OPERTY; 17
(2) THAT THE APPRAISAL IS AVAILABLE AT THE OFF ICE OF THE 18
CLERK; AND 19
(3) THAT A PARTY MAY FILE WITH THE COURT AN OB JECTION TO THE 20
APPRAISAL NOT LATER THAN 30 DAYS AFTER THE NOTIC E IS SENT, STATING THE 21
GROUNDS FOR THE OBJE CTION. 22
(F) (1) IF AN APPRAISAL IS FI LED WITH THE COURT U NDER SUBSECTION 23
(D) OF THIS SECTION, THE COURT SHALL COND UCT A HEARING TO DET ERMINE THE 24
FAIR MARKET VALUE OF THE PROPERTY NOT SOONER THAN 30 DAYS AFTER A COPY 25
OF THE NOTICE OF THE APPRAISAL IS SENT TO EACH PARTY UNDER SUB SECTION (E) 26
OF THIS SECTION , WHETHER OR NOT AN OB JECTION TO THE APPRA ISAL IS FILED 27
UNDER SUBSECTION (E)(3) OF THIS SECTION. 28
(2) IN ADDITION TO THE CO URT–ORDERED APPRAISAL , THE COURT 29
MAY CONSIDER ANY OTH ER EVIDENCE OF VALUE OFFERED BY A PARTY . 30
(G) AFTER A HEARING UNDER SUBSECTION (F) 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 SEN D NOTICE TO THE 33
PARTIES OF THE VALUE . 34 SENATE BILL 92 7
14–706. 1
(A) IF ANY COTENANT REQUE STED PARTITION BY SA LE, AFTER THE 2
DETERMINATION OF VAL UE UNDER § 14–705 OF THIS SUBTITLE , THE COURT SHALL 3
SEND NOTICE TO THE P ARTIES THAT ANY COTE NANT, EXCEPT A COTENANT THAT 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 B UY ALL THE INTERESTS OF THE COTENANTS THA T 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 § 14–705 OF THIS SUBTITLE MUL TIPLIED BY THE COTEN ANT’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 COTENANT S ELECTING TO BUY ; 27
(II) NOTIFY ALL THE PARTIE S THAT 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 SENATE BILL 92
(3) IF NO COTENANT ELECTS TO BUY ALL THE INTEREST S 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
14–709(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 PARA GRAPH (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 A MOUNTS HELD BY THE 13
COURT TO THE PERSONS ENTITLED TO THE FUND S; 14
(II) IF NO ELECTING COTENA NT PAYS THE COTENANT ’S 15
APPORTIONED PRICE ON TIME, THE COURT SHALL RESO LVE THE PARTITION AC TION 16
UNDER § 14–707(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 REMAINI NG AND THE PRICE FOR 21
THAT INTEREST TO THE ELECTING COTENANTS T HAT PAID THEIR APPOR TIONED 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 PA ID THE 25
COTENANT’S APPORTIONED PRICE MAY ELECT TO PURCHASE 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
SENATE BILL 92 9
2. PROMPTLY ISSUE AN ORD ER REALLOCATING THE 1
INTERESTS OF ALL OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE 2
COURT TO THE PERSO NS 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
§ 14–707(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE COTENANTS 6
THAT REQUESTED PARTI TION BY SALE WE RE NOT PURCHASED ; 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 ORD ER REALLOCATING ALL OF 15
THE COTENANTS ’ INTERESTS, DISBURSE THE AMOUNTS 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 SUBSEC TION (A) OF THIS SECTION , ANY COTENANT ENTITLE D TO 20
BUY AN INTEREST UND ER THIS SECTION MAY 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 UN DER 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 FOLLO WING LIMITATIONS : 28
(1) A SALE AUTHORIZED UNDE R THIS SUBSECTION MAY OCCUR 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 SUBSECTI ONS (A) THROUGH (F) OF THIS SECTION; AND 33
(2) THE PURCHASE PRICE FO R THE INTEREST OF A NONAPPEARING 34
COTENANT IS BASED ON THE COURT’S DETERMINATION OF V ALUE UNDER § 14–705 35
OF THIS SUBTITLE. 36 10 SENATE BILL 92
14–707. 1
(A) (1) IF UNDER § 14–706 OF THIS SUBTITLE ALL THE INTERESTS OF ALL 2
COTENANTS THAT REQUE STED PARTITION BY SA LE ARE NOT PURCHASED BY OTHER 3
COTENANTS, OR IF AFTER THE CONC LUSION OF THE BUYOUT A COTENANT REMAINS 4
THAT HAS REQUESTED P ARTITION IN KIND, THE COURT SHALL ORDE R PARTITION IN 5
KIND UNLESS THE COUR T, AFTER CONSI DERATION OF THE FACT ORS LISTED IN § 6
14–708 OF THIS SUBTITLE , FINDS THAT PARTITION IN KIND WILL RESULT IN GREAT 7
PREJUDICE TO THE COT ENANTS AS A GROUP . 8
(2) IN CONSIDERING WHETHE R TO ORDER PARTITION IN KIND, THE 9
COURT SHALL APPROVE A REQUEST BY TWO OR MORE PARTIES TO HAVE TH EIR 10
INDIVIDUAL INTERESTS AGGREGATED . 11
(B) IF THE COURT DOES NOT ORDER PARTITION IN K IND UNDER 12
SUBSECTION (A) OF THIS SECTION , THE COURT SHALL ORDE R PARTITION BY SALE 13
UNDER § 14–709 OF THIS SUBTITLE OR , IF NO COTENANT REQUE STED PARTITION BY 14
SALE, THE COURT SHALL DISM ISS THE ACTION. 15
(C) IF THE COURT ORDERS P ARTITION IN KIND IN ACCORDANCE WITH 16
SUBSECTION (A) OF THIS SECTION , THE COURT MAY REQUIR E THAT ONE OR MORE 17
COTENANTS PAY ONE OR MORE OTHER COTENANTS AMOUNTS SO THAT THE 18
PAYMENTS, TAKEN TOGETHER WITH THE VALUE OF THE IN –KIND DISTRIBUTIONS T O 19
THE COTENANTS , WILL MAKE THE PARTIT ION IN KIND JUST AND PROPORTIONATE 20
IN VALUE TO THE FRAC TIONAL INTERESTS HEL D. 21
(D) IF THE COURT ORDERS P ARTITION IN KIND , THE COURT SHALL 22
ALLOCATE T O THE COTENANTS THAT ARE UNKNOWN , UNLOCATABLE , OR THE 23
SUBJECT OF A DEFAULT JUDGMENT, IF THEIR INTERESTS W ERE NOT BOUGHT OUT 24
UNDER § 14–706 OF THIS SUBTITLE, A PART OF THE PROPER TY REPRESENTING THE 25
COMBINED INTERESTS O F THESE COTENANTS AS DETERMINED BY THE COURT AND 26
THIS PART OF THE PRO PERTY SHALL REMAIN U NDIVIDED. 27
14–708. 28
(A) IN DETERMINING WHETHE R PARTITION IN KIND UNDER § 14–707(A) OF 29
THIS SUBTITLE WOULD RESULT IN GREAT PREJ UDICE TO THE COTENAN TS AS A 30
GROUP, THE COURT SHALL CONS IDER THE FOLLOWING : 31
(1) WHETHER THE HEIRS PRO PERTY PRACTICABLY CA N BE DIVIDED 32
AMONG THE COTENANTS ; 33
SENATE BILL 92 11
(2) WHETHER PARTITION IN KIND WOULD APPORTION THE 1
PROPERTY IN SUCH A W AY THAT THE AGGREGAT E FAIR MARKET VALUE OF THE 2
PARCELS RESULTING FR OM THE DIVISION WOUL D BE MATERIALLY L ESS THAN THE 3
VALUE OF THE PROPERT Y IF IT WERE SOLD AS A WHOLE, TAKING INTO ACCOUNT THE 4
CONDITION UNDER WHIC H A COURT–ORDERED SALE LIKELY WOULD OCCUR ; 5
(3) EVIDENCE OF THE COLLE CTIVE DURATION OF OW NERSHIP OR 6
POSSESSION OF THE PR OPERTY BY A COTENANT AND ONE OR MORE PREDECES SORS 7
IN TITLE OR PREDECES SORS IN POSSESSION T O THE COTENANT WHO A RE OR WERE 8
RELATIVES OF THE COT ENANT OR EACH OTHER ; 9
(4) THE SENTIMENTAL ATTAC HMENT OF A COTENANT TO THE 10
PROPERTY, INCLUDING ANY ATTACH MENT ARISING BECAUSE THE PROPERTY HAS 11
ANCESTRAL OR OTHER U NIQUE OR SPECIAL VAL UE TO THE COTENANT ; 12
(5) THE LAWFUL USE BEING MADE OF THE PROPERTY BY A COTENANT 13
AND THE DEGREE TO WH ICH THE COTENANT WOU LD BE HARMED IF THE COTENANT 14
COULD NOT CONTINUE T HE SAME USE OF THE P ROPERTY; 15
(6) THE DEGREE TO WHICH THE COTENANTS HAVE CONTR IBUTED 16
THEIR PRO RATA SHARE OF THE PROPERTY TAXE S, INSURANCE, AND OTHER 17
EXPENSES ASSOCIATED WITH MAINTAINING OWN ERSHIP OF THE PROPER TY OR 18
HAVE CONTRIBUTED TO THE PHYSICAL IMPROVE MENT, MAINTENANCE , OR UPKEEP 19
OF THE PROPERTY; AND 20
(7) ANY OTHER RELEVANT FA CTOR. 21
(B) THE COURT MAY NOT CON SIDER ANY ONE FACTOR IN SUBSECTION (A) 22
OF THIS SECTION TO B E DISPOSITIVE WITHOU T WEIGHING THE TOTAL ITY OF ALL 23
RELEVANT FACTORS AND CIRCUMSTANCES . 24
14–709. 25
(A) IF THE COURT ORDERS A SALE OF HEIRS PROPER TY, THE SALE SHALL 26
BE AN OPEN–MARKET SALE UNLESS T HE COURT FINDS THAT A SALE BY SEALED BID S 27
OR AN AUCTION WOULD BE MORE ECONOMICALLY ADVANTAGEOUS AND IN THE BEST 28
INTEREST OF THE COTE NANTS AS A GROUP . 29
(B) (1) IF THE COURT ORDERS A N OPEN–MARKET SALE AND THE 30
PARTIES, NOT LATER THAN 10 DAYS AFTER THE ENTRY OF THE ORDER , AGREE ON A 31
REAL ESTATE BROKER L ICENSED IN THE STATE TO OFFER THE PR OPERTY FOR SALE , 32
THE COURT SHALL APPO INT THE BROKER AND E STABLISH A REASONABL E 33
COMMISSION. 34
12 SENATE BILL 92
(2) IF THE PARTIES DO NOT AGR EE ON A BROKER , THE COURT SHALL 1
APPOINT A DISINTERES TED REAL ESTATE BROK ER LICENSED IN THE STATE TO 2
OFFER THE PROPERTY F OR SALE AND SHALL ES TABLISH A REASONABLE 3
COMMISSION. 4
(3) A BROKER APPOINTED UND ER THIS SUBSECTION S HALL OFFER 5
THE PROPERTY FOR SALE IN A COMMERCIALLY RE ASONABLE MANNER AT A PRICE 6
NOT LOWER THAN THE D ETERMINATION OF VALU E AND ON THE TERMS A ND 7
CONDITIONS ESTABLISH ED BY THE COURT . 8
(C) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 9
OBTAINS WITHIN A REA SONABLE TIME AN OFFER TO PURCHASE THE PROP ERTY FOR 10
AT LEAST THE DETERMI NATION OF VALUE : 11
(1) THE BROKER SHALL COMP LY WITH THE REPORTIN G 12
REQUIREMENTS IN § 14–710 OF THIS SUBTITLE ; AND 13
(2) THE SALE MAY BE COMPL ETED IN ACCORDANCE W ITH STATE LAW 14
OTHER THAN THIS SUBTITLE. 15
(D) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 16
DOES NOT OBTAIN WITH IN A REASONABLE TIME AN OFFER TO PURCHASE THE 17
PROPERTY FOR AT LEAS T THE DETERMINATION OF VALUE, THE COURT, AFTER 18
HEARING, MAY: 19
(1) APPROVE THE HIGHEST OUTSTANDING OFFER , IF ANY; 20
(2) REDETERMINE THE VALUE OF THE PROPERTY AND ORDER THAT 21
THE PROPERTY CONTINU E TO BE OFFERED FOR AN ADDITIONAL TIME ; OR 22
(3) ORDER THAT THE PROPER TY BE SOLD BY SEALED BIDS OR AT AN 23
AUCTION. 24
(E) (1) IF THE COURT ORDERS A SALE BY SEALED BIDS OR AN AUCTION , 25
THE COURT SHALL SET TERMS AND CONDITIONS OF THE SALE. 26
(2) IF THE COURT ORDERS A N AUCTION, THE AUCTION SHALL BE 27
CONDUCTED UNDER § 14–107 OF THIS TITLE. 28
(F) IF A PURCHASER IS ENT ITLED TO A SHARE OF THE PROCEEDS OF THE 29
SALE, THE PURCHASER IS ALS O ENTITLED TO A CRED IT AGAINST THE PRICE IN AN 30
AMOUNT EQUAL TO THE PURCHASER ’S SHARE OF THE PROCE EDS. 31
14–710. 32 SENATE BILL 92 13
(A) UNLESS REQUIRED TO DO SO WITHIN A SHORTER PERIOD OF TIME 1
UNDER § 14–107 OF THIS TITLE, A BROKER APPOINTED U NDER § 14–709(B) OF THIS 2
SUBTITLE TO OFFER HE IRS PROPERTY FOR OPE N–MARKET SALE SHALL FI LE A 3
REPORT WITH THE COUR T NOT LATER THAN 7 DAYS AFTER RECEIVING AN OFFER TO 4
PURCHASE THE PROPERT Y FOR AT LEAST THE V ALUE DETERMINED UNDE R § 14–705 5
OR § 14–709 OF THIS SUBTITLE. 6
(B) A REPORT REQUIRED UNDE R SUBSECTION (A) OF THIS SECTION SHAL L 7
CONTAIN THE FOLLOWIN G INFORMATION : 8
(1) A DESCRIPTION OF THE P ROPERTY TO BE SOLD T O EACH BUYER; 9
(2) THE NAME OF EACH BUYE R; 10
(3) THE PROPOSED PURCHASE PRICE; 11
(4) THE TERMS AND CONDITIONS OF THE PROPOSED SALE , 12
INCLUDING THE TERMS OF ANY OWNER FINANCI NG; 13
(5) THE AMOUNTS TO BE PAI D TO LIENHOLDERS ; 14
(6) A STATEMENT OF CONTRAC TUAL OR OTHER ARRANG EMENTS OR 15
CONDITIONS OF THE BR OKER’S COMMISSION; AND 16
(7) OTHER MATERIAL FACTS RELEVANT TO TH E SALE. 17
14–711. 18
IN APPLYING AND CONST RUING THIS SUBTITLE , WHICH IS A UNIFORM A CT, 19
CONSIDERATION SHALL BE GIVEN TO THE NEED TO PROMOTE UNIFORMIT Y OF THE 20
LAW WITH RESPECT TO THE SUBJECT MATTER O F THE LAW AMONG THE STATES 21
THAT ENACT IT. 22
14–712. 23
THIS SUBTITLE MODIFIE S, LIMITS, AND SUPERSEDES THE ELECTRONIC 24
SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT, 15 U.S.C. § 7001 ET SEQ., 25
BUT DOES NOT MODIFY , LIMIT, OR SUPERSEDE § 101(C) OF THAT ACT, 15 U.S.C. § 26
7001(C), OR AUTHORIZE ELECTRONIC DELIVERY OF ANY OF THE NOTICE S 27
DESCRIBED IN § 103(B) OF THAT ACT, 15 U.S.C. § 7003(B). 28
14–713. 29
14 SENATE BILL 92
THIS SUBTITLE MAY BE CITED AS THE MARYLAND UNIFORM PARTITION OF 1
HEIRS PROPERTY ACT. 2
Article – Real Property 3
[14–107. 4
(a) A circuit court may decree a partition of any property, either legal or equitable, 5
on the bill or petition of any joint tenant, tenant in common, parcener, or concurrent owner, 6
whether claiming by descent or purchase. If it appears that the property cannot be divided 7
without loss or injury to the parties interested, the court may decree its sale and divide the 8
money resulting from the sale among the parties according to their respective rights. The 9
right to a partition or sale includes the right to a partition or sale of any separate lot or 10
tract of property, and the bill or petition need not pray for a partition of all the lots or tracts. 11
(b) This section applies regardless of whether any party, plaintiff, or defendant is 12
a minor, disabled, or a nonresident. 13
(c) A sale and deed made pursuant to an order of the court in the exercise of the 14
power provided in this section is good and sufficient at law to transfer property of the 15
person. A deed executed in exercise of the above power provided in this section shall be 16
executed by the person the court appoints for the purpose. 17
(d) If any bill or petition is filed under the provisions of this section for the sale of 18
property, any person holding a mortgage, other encumbrance on the property, or an 19
undivided interest in the property may be made a party to the bill, and the property shall 20
be sold free and clear of the mortgage or other encumbrance. However, the rights of a lienor 21
shall be protected in the distribution of the proceeds of the sale.] 22
SUBTITLE 7. PARTITION OF REAL PROPERTY. 23
14–701. 24
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 25
INDICATED. 26
(B) “DETERMINATION OF VALU E” MEANS A COURT ORDER DETERMINING 27
THE FAIR MARKET VALU E OF PROPERTY UNDER § 14–707 OR § 14–711 OF THIS 28
SUBTITLE OR ADOPTING THE VALUATION OF PRO PERTY AGREED TO BY A LL 29
COTENANTS. 30
(C) “PARTITION BY SALE ” MEANS A COURT –ORDERED SALE OF PROP ERTY, 31
WHETHER BY AU CTION, SEALED BIDS, OR OPEN–MARKET SALE CONDUCTE D UNDER 32
§ 14–711 OF THIS SUBTITLE. 33
SENATE BILL 92 15
(D) “PARTITION IN KIND ” MEANS THE DIVISION O F PROPERTY INTO 1
PHYSICALLY DISTINCT AND SEPARATELY TITLE D PARCELS. 2
(E) “RECORD” MEANS INFORMATION TH AT IS INSCRIBED ON A TANGIBLE 3
MEDIUM OR THAT IS ST ORED IN AN ELECTRONI C OR OTHER MEDIUM AN D IS 4
RETRIEVABLE IN PERCE IVABLE FORM. 5
14–702. 6
(A) REAL PROPERTY SHALL B E PARTITIONED UNDER THIS SUBTITLE 7
UNLESS ALL OF THE CO TENANTS AGREE OTHERW ISE IN A RECORD. 8
(B) THE MARYLAND RULES APPLY TO ACTIONS UND ER THIS SUBTITLE , 9
EXCEPT TO THE EXTENT THEY ARE INCONSISTEN T WITH THE PROVISION S OF THIS 10
SUBTITLE. 11
14–703. 12
IN AN ACTION UNDER TH IS SUBTITLE, THE COURT ON ITS OWN MOTION OR ON 13
MOTION OF ANY PARTY MAY ISSUE AN ORDER : 14
(1) FOR THE AP POINTMENT OF AN ATTO RNEY TO PROTECT THE 15
INTEREST OF ANY PART Y TO THE SAME EXTENT AND EFFECT AS PROVID ED UNDER 16
RULE 2–203 OF THE MARYLAND RULES WITH RESPECT TO INDIVIDUALS NOT IN 17
BEING; 18
(2) TO REQUIRE JOINDER OF ANY ADDITIONAL PARTI ES THAT ARE 19
NECESSARY OR PROPER; AND 20
(3) TO REQUIRE THAT THE P LAINTIFF: 21
(I) PROCURE A TITLE REPOR T SUPPORTED BY AN AF FIDAVIT 22
BY THE PERSON MAKING THE TITLE SEARCH THA T A COMPLETE SEARCH OF THE 23
PUBLIC RECORDS HAS B EEN PERFORMED IN ACC ORDANCE WITH GENERAL LY 24
ACCEPTED STANDA RDS OF TITLE EXAMINA TION FOR THE APPROPR IATE PERIOD AS 25
DETERMINED BY THE CO URT, BUT NOT LESS THAN 60 YEARS; AND 26
(II) DESIGNATE A PLACE WHE RE THE TITLE REPORT SHALL BE 27
KEPT FOR INSPECTION , USE, AND COPYING BY THE P ARTIES. 28
14–704. 29
IN ADDITION TO ANY PE RSONS REQUIRED TO BE NAMED AS DEFENDANTS IN 30
AN ACTION UNDER THIS SUBTITLE, THE PLAINTIFF MAY NA ME AS DEFENDANTS ALL 31 16 SENATE BILL 92
PERSONS UNKNOWN , CLAIMING ANY LEGAL O R EQUITABLE RIGHT , TITLE, ESTATE, 1
LIEN, OR INTEREST IN THE P ROPERTY DESCRIBED IN THE COMPLAINT ADVERSE TO 2
THE PLAINTIFF ’S TITLE, OR ANY CLOUD ON THE PLAINTIFF’S TITLE TO THE 3
PROPERTY. 4
14–705. 5
(A) (1) IF, ON AFFIDAVIT OF THE PLAINTIFF, IT APPEARS TO THE 6
SATISFACTION OF THE COURT THAT THE PLAIN TIFF HAS USED REASON ABLE 7
DILIGENCE TO ASCE RTAIN THE IDENTITY A ND RESIDENCE OF AND TO SERVE A 8
SUMMONS ON THE PERSO NS NAMED AS UNKNOWN DEFENDANTS AND PERSO NS 9
JOINED AS TESTATE OR INTESTATE SUCCESSORS OF A PERSON KNOWN OR BELIEVED 10
TO BE DEAD, THE COURT SHALL ORDE R SERVICE BY PUBLICA TION IN ACCORDANCE 11
WITH RULE 2–122 OF THE MARYLAND RULES AND THE PROVISI ONS OF THIS 12
SUBTITLE. 13
(2) THE ORDER SHALL DIREC T THAT A COPY OF THE SUMMONS, THE 14
COMPLAINT, AND THE ORDER FOR PU BLICATION BE MAILED IMMEDIATELY TO THE 15
PARTY IF THE PARTY ’S ADDRESS IS ASCERTA INED BEFORE EXPIRATION OF THE TIME 16
PRESCRIBED FOR PUBLI CATION OF THE SUMMON S. 17
(B) THIS SECTION DOES NOT AUTHORIZE SERVICE BY PUBLICATION ON ANY 18
PERSON NAMED AS AN U NKNOWN DEFENDANT WHO IS IN OPEN AND ACTUA L 19
POSSESSION OF THE PR OPERTY. 20
14–706. 21
(A) IF THE COURT ORDERS SERVICE BY PU BLICATION, THE PLAINTIFF 22
SHALL: 23
(1) POST, NOT LATER THAN 10 DAYS AFTER THE DATE THE ORDER IS 24
ISSUED, A COPY OF THE SUMMON S AND COMPLAINT IN A CONSPICUOUS PLACE ON 25
THE PROPERTY THAT IS THE SUBJECT OF THE A CTION; AND 26
(2) FILE PROOF THAT THE SUMMONS HAS BEEN SERVED , POSTED, 27
AND PUBLISHED AS REQ UIRED IN THE ORDER . 28
(B) IF THE COURT ORDERS S ERVICE BY PUBLICATIO N, THE PUBLICATION 29
SHALL USE THE LEGAL DESCRIPTION OF THE P ROPERTY ALONG WITH I TS STREET 30
ADDRESS, OR OTHER COMMON DESI GNATION, IF ANY. 31
14–707. 32
SENATE BILL 92 17
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B) THROUGH (D) OF THIS 1
SECTION, THE COURT SHALL DETE RMINE THE FAIR MARKE T VALUE OF THE 2
PROPERTY BY ORDERING AN APPRAISAL IN ACCO RDANCE WITH SUBSECTI ON (E) OF 3
THIS SECTION. 4
(B) THE COURT MAY ACCEPT A PREVIOUSLY COMPLET ED APPRAISAL FILED 5
WITH THE COURT AS EV IDENCE OF VALUE PROV IDED THAT: 6
(1) THE APPRAISAL IS DATE D NOT EARLIER THAN 6 MONTHS BEFORE 7
THE FILING OF THE PA RTITION ACTION; 8
(2) THE APPRAISAL WAS COM PLETED BY A DISIN TERESTED REAL 9
ESTATE APPRAISER LIC ENSED IN THE STATE; AND 10
(3) NO PARTY OBJECTS TO T HE APPRAISED VALUE . 11
(C) IF ALL COTENANTS HAVE AGREED TO THE VALUE OF THE PROPERTY OR 12
TO ANOTHER METHOD OF VALUATION, THE COURT SHALL ADOP T THAT VALUE OR 13
THE VALUE PROD UCED BY THE AGREED M ETHOD OF VALUATION . 14
(D) IF THE COURT DETERMIN ES THAT THE EVIDENTI ARY VALUE OF AN 15
APPRAISAL IS OUTWEIG HED BY THE COST OF T HE APPRAISAL AND NO PREVIOUSLY 16
COMPLETED APPRAISAL WAS FILED UNDER SUBS ECTION (B) OF THIS SECTION, THE 17
COURT, AFTER AN EVIDENTIARY HE ARING, SHALL DETERMINE THE FAIR MARKET 18
VALUE OF THE PROPERT Y AND SEND NOTICE TO THE PARTIES OF THE V ALUE. 19
(E) (1) IF THE COURT ORDERS A N APPRAISAL UNDER SU BSECTION (A) OF 20
THIS SECTION , THE COURT SHALL APPO INT A DISINTERESTED REAL ESTATE 21
APPRAISER LICENSED I N THE STATE TO DETERMINE TH E FAIR MARKET VALUE OF 22
THE PROPERTY ASSUMIN G SOLE OWNERSHIP OF THE FEE SIMPLE ESTAT E. 23
(2) ON COMPLETION OF THE APPRAISAL, THE APPRAISER SHALL FILE 24
A SWORN OR VERIFIED APPRAISAL WITH THE C OURT. 25
(F) IF AN APPRAISAL IS CO NDUCTED UNDER SUBSEC TION (A) OF THIS 26
SECTION OR FILED WIT H THE COURT UNDER SU BSECTION (B) OF THIS SECTION, NOT 27
LATER THAN 10 DAYS AFTER THE APPRA ISAL IS FILED, THE COURT SHALL SEND 28
NOTICE TO EACH PARTY WITH A KNOWN ADDRESS , STATING: 29
(1) THE APPRAISED FAIR MA RKET VALUE OF THE PR OPERTY; 30
(2) THAT THE APPRAISAL IS AVAILABLE AT THE OFF ICE OF THE 31
CLERK; AND 32
18 SENATE BILL 92
(3) THAT A PARTY MAY FILE WITH THE COURT AN OBJECTI ON TO THE 1
APPRAISAL NOT LATER THAN 30 DAYS AFTER THE NOTIC E IS SENT, STATING THE 2
GROUNDS FOR THE OBJE CTION. 3
(G) (1) IF AN APPRAISAL IS FI LED WITH THE COURT U NDER SUBSECTION 4
(E) OF THIS SECTION, THE COURT SHALL COND UCT A HEARING TO DET ERMINE THE 5
FAIR MARKET VALUE OF THE PROPERTY NOT SOO NER THAN 30 DAYS AFTER A COPY 6
OF THE NOTICE OF THE APPRAISAL IS SENT TO EACH PARTY UNDER SUB SECTION (F) 7
OF THIS SECTION , WHETHER OR NOT AN OB JECTION TO THE APPRA ISAL IS FILED 8
UNDER SUB SECTION (F)(3) OF THIS SECTION. 9
(2) IN ADDITION TO AN APP RAISAL DESCRIBED UND ER SUBSECTION 10
(A) OR (B) OF THIS SECTION, THE COURT MAY CONSID ER ANY OTHER EVIDENC E OF 11
VALUE OFFERED BY A P ARTY. 12
(H) AFTER A HEARING UNDER SUBSECTION (G) OF THIS SECTION , BUT 13
BEFORE CONSIDERING T HE MERITS OF THE PAR TITION ACTION, THE COURT SHALL 14
DETERMINE THE FAIR M ARKET VALUE OF THE P ROPERTY AND SEND NOT ICE TO THE 15
PARTIES OF THE VALUE . 16
14–708. 17
(A) IF ANY COTENANT REQUE STED PARTITION BY SA LE, AFTER THE 18
DETERMINATION OF V ALUE UNDER § 14–707 OF THIS SUBTITLE , THE COURT SHALL 19
SEND NOTICE TO THE P ARTIES THAT ANY COTE NANT, EXCEPT A COTENANT TH AT 20
REQUESTED PARTITION BY SALE, MAY BUY ALL THE INTE RESTS OF THE COTENAN TS 21
THAT REQUESTED PARTI TION BY SALE. 22
(B) NOT LATER THAN 45 DAYS AFTER THE NOTICE I S SENT UNDER 23
SUBSECTION (A) OF THIS SECTION , ANY COTENANT , EXCEPT A COTENANT TH AT 24
REQUESTED PARTITION BY SALE, MAY GIVE NOTICE TO T HE COURT THAT THE 25
COTENANT ELECTS TO B UY ALL THE INTERESTS OF THE COTENANTS THA T 26
REQUESTED PARTITION BY SALE. 27
(C) THE PURCHASE PRICE FO R EACH OF THE INTERE STS OF A COTENANT 28
THAT REQUESTED PARTI TION BY SALE IS THE VALUE OF THE ENTIRE PARCEL 29
DETERMINED UNDER § 14–707 OF THIS SUBTITLE MUL TIPLIED BY THE COTEN ANT’S 30
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL . 31
(D) AFTER EXPIRATION OF T HE PERIOD DESCRIBED IN SUBSECTION (B) OF 32
THIS SECTION, THE FOLLOWING RULES APPLY: 33
SENATE BILL 92 19
(1) IF ONLY ONE COTENANT ELECTS TO BUY ALL TH E INTERESTS OF 1
THE COTENANTS THAT R EQUESTED PARTITION B Y SALE, THE COURT SHALL NOTI FY 2
ALL THE PARTIES ; 3
(2) IF MORE THAN ONE COTE NANT ELECTS TO BUY A LL THE 4
INTERESTS OF THE COT ENANTS THAT REQUESTE D PARTITION BY SALE , THE COURT 5
SHALL: 6
(I) ALLOCATE THE RIGHT TO BUY THOSE INTERESTS AMONG 7
THE ELECTING COTENAN TS BASED ON EACH ELE CTING COTENANT ’S EXISTING 8
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL DIVIDED BY THE TOTAL EXISTING 9
FRACTIONAL OWNERSHIP OF ALL COTENANTS ELE CTING TO BUY; 10
(II) NOTIFY ALL THE PARTIE S THAT MORE THAN ONE 11
COTENANT ELECTED TO BUY ALL THE INTEREST S OF THE COTENANTS T HAT 12
REQUESTED P ARTITION BY SALE ; AND 13
(III) SEND NOTICE OF THE PR ICE TO BE PAID BY EA CH ELECTING 14
COTENANT; OR 15
(3) IF NO COTENANT ELECTS TO BUY ALL THE INTER ESTS OF THE 16
COTENANTS THAT REQUE STED PARTITION BY SA LE, THE COURT SHALL SEND 17
NOTICE TO ALL THE PA RTIES AND R ESOLVE THE PARTITION ACTION UNDER § 18
14–711(A) AND (B) OF THIS SUBTITLE. 19
(E) (1) IF THE COURT SENDS NO TICE TO THE PARTIES UNDER 20
SUBSECTION (D)(1) OR (2) OF THIS SECTION , THE COURT SHALL SET A DATE NOT 21
SOONER THAN 60 DAYS AFTER THE DATE THE NOTICE WAS SEN T BY WHICH 22
ELECTING COTENANTS M UST PAY THEIR APPORT IONED PRICE INTO THE COURT. 23
(2) AFTER THE DATE SET BY THE COURT UNDER PARA GRAPH (1) OF 24
THIS SUBSECTION , THE FOLLOWING RULES APPLY: 25
(I) IF ALL ELECTING COTEN ANTS PAY THEIR APPOR TIONED 26
PRICE INTO COURT ON TIME , THE COURT SHALL ISSU E AN ORDER REALLOCAT ING 27
ALL THE INTERESTS OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE 28
COURT TO THE PERSONS ENTITLED TO THE FUND S; 29
(II) IF NO ELECTING COTENA NT PAYS THE COTENANT ’S 30
APPORTIONED PRICE ON TIME, THE COURT SHALL RESOL VE THE PARTITION ACT ION 31
UNDER § 14–709(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE 32
COTENANTS THAT REQUE STED PARTITION BY SA LE WERE NOT PURCHASE D; OR 33
20 SENATE BILL 92
(III) IF ONE OR MORE BUT NO T ALL OF THE ELECTIN G 1
COTENANTS FAIL TO PA Y THEIR APPORTIONED PRICE ON TIME , THE COURT, ON 2
MOTION, SHALL GIVE NOTICE OF THE INTEREST REMAINI NG AND THE PRICE FOR 3
THAT INTEREST TO THE ELECTING COTENANTS T HAT PAID THEIR APPOR TIONED 4
PRICE. 5
(F) (1) NOT LATER THAN 20 DAYS AFTER THE COURT GIVES NOTICE 6
UNDER SUBSECTION (E)(2)(III) OF THIS SECTION , ANY COTENANT THAT PA ID THE 7
COTENANT’S APPORTIONED PRICE MAY ELECT TO PURCHAS E ALL OF THE 8
REMAINING INTEREST B Y PAYING THE ENTIRE PRICE INTO THE CO URT. 9
(2) AFTER THE 20–DAY PERIOD DESCRIBED IN PARAGRAPH (1) OF 10
THIS SUBSECTION , THE FOLLOWING RULES APPLY: 11
(I) IF ONLY ONE COTENANT PAYS THE ENTIRE PRIC E FOR THE 12
REMAINING INTEREST , THE COURT SHALL : 13
1. ISSUE AN ORDER REALLO CATING THE REMAINING 14
INTEREST TO THAT COT ENANT; AND 15
2. PROMPTLY ISSUE AN ORD ER REALLOCATING THE 16
INTERESTS OF ALL OF THE COTENANTS AND DI SBURSE THE AMOUNTS H ELD BY THE 17
COURT TO THE PERSONS ENTITLED TO THEM ; 18
(II) IF NO COTENANT PAYS T HE ENTIRE PRICE FOR THE 19
REMAINING INTEREST, THE COURT SHALL RESO LVE THE PARTITION AC TION UNDER 20
§ 14–709(A) AND (B) OF THIS SUBTITLE AS IF THE INTERESTS OF THE COTENANTS 21
THAT REQUESTED PARTI TION BY SALE WERE NO T PURCHASED ; AND 22
(III) IF MORE THAN ONE COTE NANT PAYS THE ENTIRE PRICE 23
FOR THE REMAINING INTEREST , THE COURT SHALL : 24
1. REAPPORTION THE REMAI NING INTEREST AMONG 25
THOSE PAYING COTENAN TS, BASED ON EACH PAYING COTENANT’S ORIGINAL 26
FRACTIONAL OWNERSHIP OF THE ENTIRE PARCEL DIVIDED BY THE TOTAL ORIGINAL 27
FRACTIONAL OWNERSHIP OF ALL COTENANTS THAT PAID THE ENTIRE PRICE FOR 28
THE REMAINING INTERE ST; AND 29
2. PROMPTLY ISSUE AN ORD ER REALLOCATING ALL OF 30
THE COTENANTS ’ INTERESTS, DISBURSE THE AMOUNTS HELD BY THE COURT TO THE 31
PERSONS ENTITLED TO THEM, AND REFUND ANY EXCES S PAYMENT HELD BY TH E 32
COURT. 33
SENATE BILL 92 21
(G) NOT LATER THAN 45 DAYS AFTER THE COURT SENDS NOTICE TO THE 1
PARTIES UNDER SUBSEC TION (A) OF THIS SECTION , ANY COTENANT ENTITLE D TO 2
BUY AN INTEREST UNDE R THIS SECTION MAY R EQUEST THE COURT TO AUTHORIZE 3
THE SALE AS PART OF THE PENDING ACTION O F THE INTERESTS OF COT ENANTS 4
NAMED AS DEFENDANTS AND SERVED WITH THE COMPLAINT BUT THAT D ID NOT 5
APPEAR IN THE ACTION . 6
(H) IF THE COURT RECEIVES A TIMELY REQUEST UND ER SUBSECTION (G) OF 7
THIS SECTION, THE COURT , AFTER A HEARING , MAY DENY THE REQUEST OR 8
AUTHORIZE THE REQUESTED ADDITIONAL SALE ON T ERMS THE COURT DETER MINES 9
ARE FAIR AND REASONA BLE, SUBJECT TO THE FOLLO WING LIMITATIONS : 10
(1) A SALE AUTHORIZED UNDE R THIS SUBSECTION MA Y OCCUR ONLY 11
AFTER THE PURCHASE P RICES FOR ALL INTERE STS SUBJECT TO SALE UNDER 12
SUBSECTIONS (A) THROUGH (F) OF THIS SECTION HAVE BEEN PAID INTO COURT AND 13
THOSE INTERESTS HAVE BEEN REALLOCATED AMO NG THE COTENANTS AS 14
PROVIDED IN SUBSECTI ONS (A) THROUGH (F) OF THIS SECTION; AND 15
(2) THE PURCHASE PRICE FO R THE INTEREST OF A NONAPPEARING 16
COTENANT IS BASED ON THE COURT’S DETERMINATION OF V ALUE UNDER § 14–707 17
OF THIS SUBTITLE. 18
14–709. 19
(A) (1) IF UNDER § 14–708 OF THIS SUBTITLE ALL THE INTERESTS OF ALL 20
COTENANTS THAT REQUE STED PARTITION BY SA LE ARE NOT PURCHASED BY OTHER 21
COTENANTS, OR IF AFTER THE CONC LUSION OF THE BUYOUT A COTENANT REMAINS 22
THAT HAS REQUESTED P ARTITION IN KIND, THE COURT SHALL ORDE R PARTITION IN 23
KIND UNLESS THE COUR T, AFTER CONSIDERATION OF THE FACTORS LISTE D IN § 24
14–710 OF THIS SUBTITLE , FINDS THAT PARTITION IN KIND WILL RESULT IN GREAT 25
PREJUDICE TO THE COT ENANTS AS A GROUP . 26
(2) IN CONSIDERING WHETHE R TO ORDER PARTITION IN KIND, THE 27
COURT SHALL APPROVE A REQUEST BY TWO OR MORE PARTIES TO HAVE THEIR 28
INDIVIDUAL INTERESTS AGGREGATED . 29
(B) IF THE COURT DOES N OT ORDER PARTITION I N KIND UNDER 30
SUBSECTION (A) OF THIS SECTION , THE COURT SHALL ORDE R PARTITION BY SALE 31
UNDER § 14–711 OF THIS SUBTITLE OR , IF NO COTENANT REQUE STED PARTITION BY 32
SALE, THE COURT SHALL DISM ISS THE ACTION. 33
(C) IF THE COURT ORDERS P ARTITION IN KIND IN ACCORDANC E WITH 34
SUBSECTION (A) OF THIS SECTION , THE COURT MAY REQUIR E THAT ONE OR MORE 35
COTENANTS PAY ONE OR MORE OTHER COTENANTS AMOUNTS SO THAT THE 36 22 SENATE BILL 92
PAYMENTS, TAKEN TOGETHER WITH THE VALUE OF THE IN –KIND DISTRIBUTIONS T O 1
THE COTENANTS , WILL MAKE THE PARTITION IN K IND JUST AND PROPORT IONATE 2
IN VALUE TO THE FRAC TIONAL INTERESTS HEL D. 3
(D) IF THE COURT ORDERS P ARTITION IN KIND , THE COURT SHALL 4
ALLOCATE TO THE COTE NANTS THAT ARE UNKNO WN, UNLOCATABLE , OR THE 5
SUBJECT OF A DEFAULT JUDGMENT, IF THEIR INTERESTS WERE NOT BO UGHT OUT 6
UNDER § 14–708 OF THIS SUBTITLE, A PART OF THE PROPER TY REPRESENTING THE 7
COMBINED INTERESTS O F THESE COTENANTS AS DETERMINED BY THE CO URT AND 8
THIS PART OF THE PRO PERTY SHALL REMAIN U NDIVIDED. 9
14–710. 10
(A) IN DETERMINING WHET HER PARTITION IN KIN D UNDER § 14–709(A) OF 11
THIS SUBTITLE WOULD RESULT IN GREAT PREJ UDICE TO THE COTENAN TS AS A 12
GROUP, THE COURT SHALL CONS IDER THE FOLLOWING : 13
(1) WHETHER THE PROPERTY PRACTICABLY CAN BE D IVIDED AMONG 14
THE COTENANTS ; 15
(2) WHETHER PARTITI ON IN KIND WOULD APP ORTION THE 16
PROPERTY IN SUCH A W AY THAT THE AGGREGAT E FAIR MARKET VALUE OF THE 17
PARCELS RESULTING FR OM THE DIVISION WOUL D BE MATERIALLY LESS THAN THE 18
VALUE OF THE PROPERT Y IF IT WERE SOLD AS A WHOLE, TAKING INTO ACCOUNT THE 19
CONDITION UNDE R WHICH A COURT –ORDERED SALE LIKELY WOULD OCCUR ; 20
(3) EVIDENCE OF THE COLLE CTIVE DURATION OF OW NERSHIP OR 21
POSSESSION OF THE PR OPERTY BY A COTENANT AND ONE OR MORE PRED ECESSORS 22
IN TITLE OR PREDECES SORS IN POSSESSION T O THE COTENANT WHO A RE OR WERE 23
RELATIVES OF THE COT ENANT OR EACH OTHER ; 24
(4) THE SENTIMENTAL ATTAC HMENT OF A COTENANT TO THE 25
PROPERTY, INCLUDING ANY ATTACH MENT ARISING BECAUSE THE PROPERTY HAS 26
ANCESTRAL OR OTHER U NIQUE OR SPECIAL VAL UE TO THE COTENANT ; 27
(5) THE LAWFUL USE BEING MADE OF THE PROPERTY BY A COTENANT 28
AND THE DEGREE TO WH ICH THE COTENANT WOU LD BE HARMED IF THE COTENANT 29
COULD NOT CONTINUE T HE SAME USE OF THE P ROPERTY; 30
(6) THE DEGREE TO WHICH T HE COTENANTS HAVE CO NTRIBUTED 31
THEIR PRO RATA SHARE OF THE PROPERTY TAXE S, INSURANCE, AND OTHER 32
EXPENSES ASSOCIATED WITH MAINTAINING OWN ERSHIP OF THE PROPER TY OR 33
HAVE CONTRIBUTED TO THE PHYSICAL IMPROVE MENT, MAINTENANCE , OR UPKEEP 34
OF THE PROPERTY ; AND 35 SENATE BILL 92 23
(7) ANY OTHER RELEVANT FA CTOR. 1
(B) THE COURT MAY NOT CON SIDER ANY ONE FACTOR IN SUBSECTION (A) 2
OF THIS SECTION TO B E DISPOSITIVE WITHOU T WEIGHING THE TOTAL ITY OF ALL 3
RELEVANT FACTORS AND CIRCUMSTANCES . 4
14–711. 5
(A) IF THE COURT ORDERS A SALE OF PROPERTY , THE SALE SHALL BE AN 6
OPEN–MARKET SALE UNLESS T HE COURT FINDS THAT A SALE BY SEALED BIDS OR AN 7
AUCTION WOULD BE MOR E ECONOMICALLY ADVAN TAGEOUS AND IN THE B EST 8
INTEREST OF THE COTE NANTS AS A GROUP . 9
(B) (1) IF THE COURT ORDERS A N OPEN–MARKET SALE AND THE 10
PARTIES, NOT LATER THAN 10 DAYS AFTER THE ENTRY OF THE ORDER , AGREE ON A 11
REAL ESTATE BROKER LICENSE D IN THE STATE TO OFFER THE PR OPERTY FOR SALE , 12
THE COURT SHALL APPO INT THE BROKER AND E STABLISH A REASONABL E 13
COMMISSION. 14
(2) IF THE PARTIES DO NOT AGREE ON A BROKER , THE COURT SHALL 15
APPOINT A DISINTERES TED REAL ESTATE BROK ER LICENSE D IN THE STATE TO 16
OFFER THE PROPERTY F OR SALE AND SHALL ES TABLISH A REASONABLE 17
COMMISSION. 18
(3) A BROKER APPOINTED UND ER THIS SUBSECTION S HALL OFFER 19
THE PROPERTY FOR SAL E IN A COMMERCIALLY REASONABLE MANNER AT A PRICE 20
NOT LOWER THAN THE D ETERMINATION OF VALUE AND ON THE TER MS AND 21
CONDITIONS ESTABLISH ED BY THE COURT . 22
(C) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 23
OBTAINS WITHIN A REA SONABLE TIME AN OFFE R TO PURCHASE THE PR OPERTY FOR 24
AT LEAST THE DETERMI NATION OF VALUE : 25
(1) THE BROK ER SHALL COMPLY WITH THE REPORTING 26
REQUIREMENTS IN § 14–712 OF THIS SUBTITLE ; AND 27
(2) THE SALE MAY BE COMPL ETED IN ACCORDANCE W ITH STATE LAW 28
OTHER THAN THIS SUBT ITLE. 29
(D) IF THE BROKER APPOINT ED UNDER SUBSECTION (B) OF THIS SECTION 30
DOES NOT OBTAIN WITHIN A REASONABLE TIME AN OFFER TO PUR CHASE THE 31
PROPERTY FOR AT LEAS T THE DETERMINATION OF VALUE, THE COURT, AFTER 32
HEARING, MAY: 33 24 SENATE BILL 92
(1) APPROVE THE HIGHEST O UTSTANDING OFFER , IF ANY; 1
(2) REDETERMINE THE VALUE OF THE PROPERTY AND ORDER THAT 2
THE PROPERT Y CONTINUE TO BE OFF ERED FOR AN ADDITION AL TIME; OR 3
(3) ORDER THAT THE PROPER TY BE SOLD BY SEALED BIDS OR AT AN 4
AUCTION. 5
(E) IF THE COURT ORDERS A SALE BY SEALED BIDS OR AN AUCTION , THE 6
COURT SHALL SET TERM S AND CONDITIONS OF THE SALE. 7
(F) IF A PURCHASER IS ENTITLED TO A SHARE OF THE PR OCEEDS OF THE 8
SALE, THE PURCHASER IS ALS O ENTITLED TO A CRED IT AGAINST THE PRICE IN AN 9
AMOUNT EQUAL TO THE PURCHASER ’S SHARE OF THE PROCE EDS. 10
14–712. 11
(A) A BROKER APPOINTED UND ER § 14–711(B) OF THIS SUBTITLE TO OFFER 12
PROPERTY FOR OPEN –MARKET SALE SHALL FI LE A REPORT WITH THE COURT NOT 13
LATER THAN 7 DAYS AFTER RECEIVING AN OFFER TO PURCHASE THE PROPERTY FOR 14
AT LEAST THE VALUE D ETERMINED UNDER § 14–707 OR § 14–711 OF THIS SUBTITLE. 15
(B) A REPORT REQUIRED UNDE R SUBSECTION (A) OF THIS SECTION SHAL L 16
CONTAIN THE FOLLOWIN G INFORMATION : 17
(1) A DESCRIPTION OF THE P ROPERTY TO BE SOLD T O EACH BUYER; 18
(2) THE NAME OF EACH BUYE R; 19
(3) THE PROPOSED PURCHASE PRICE; 20
(4) THE TERMS AND CONDITI ONS OF THE PROPOSED SALE, 21
INCLUDING THE TERMS OF ANY OWNER FINANCI NG; 22
(5) THE AMOUNTS TO BE PAI D TO LIENHOLDERS ; 23
(6) A STATEMENT OF CONTRAC TUAL OR OTHER ARRANG EMENTS OR 24
CONDITIONS OF THE BR OKER’S COMMISSION; AND 25
(7) OTHER MATERIAL FACTS RELEVANT TO THE SALE . 26
14–713. 27
SENATE BILL 92 25
THIS SUBTITLE MODIFIE S, LIMITS, AND SUPERSEDES THE ELECTRONIC 1
SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT, 15 U.S.C. § 7001 ET SEQ., 2
BUT DOES NOT MODIFY , LIMIT, OR SUPERSEDE § 101(C) OF THAT ACT, 15 U.S.C. § 3
7001(C), OR AUTHORIZE ELECTRO NIC DELIVERY OF ANY OF THE NOTICES 4
DESCRIBED IN § 103(B) OF THAT ACT, 15 U.S.C. § 7003(B). 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 6
apply only prospectively and may not be applied or interpreted to have any effect on or 7
application to any partition action filed before the effective date of this Act. 8
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
October 1, 2022. 10
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.