North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S317 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 317
	3	+	S D
	4	+	SENATE BILL DRS15088-NO-19A
	5	+
5	6
6	7
7	8		Short Title: Uniform Partition of Heirs Property Act. (Public)
8	9		Sponsors: Senators Sawrey, Lowe, and Settle (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 18, 2025~~
11		-	~~S317 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS15088 -NO-19A
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO ENACT THE UNIFORM PARTITION OF HEIRS PROPERTY ACT. 2
14	15		The General Assembly of North Carolina enacts: 3
15	16		SECTION 1. Article 2 of Chapter 46A of the General Statutes is amended by adding 4
16	17		a new Part to read: 5
17	18		"Part 4. Uniform Partition of Heirs Property Act. 6
18	19		"§ 46A-87. Short title. 7
19	20		This Part shall be known and may be cited as the "Uniform Partition of Heirs Property Act." 8
20	21		"§ 46A-88. Definitions. 9
21	22		As used in this Part, the following definitions apply: 10
22	23		(1) Ascendant. – An individual who precedes another individual in lineage, in the 11
23	24		direct line of ascent from the other individual. 12
24	25		(2) Collateral. – An individual who is related to another individual under the 13
25	26		operation of the intestate succession provisions of Chapter 29 of the General 14
26	27		Statutes but who is not the other individual's ascendant or descendant. 15
27	28		(3) Descendant. – An individual who follows another individual in lineage, in the 16
28	29		direct line of descent from the other individual. 17
29	30		(4) Determination of value. – A court order determining the fair market value of 18
30	31		heirs property under this Part or adopting the valuation of the property agreed 19
31	32		to by all cotenants. 20
32	33		(5) Heirs property. – Real property held in tenancy in common which satisfies all 21
33	34		of the following requirements as of the filing of a partition proceeding: 22
34	35		a. There is no agreement in a record binding all of the cotenants which 23
35	36		governs the partition of the property. 24
36	37		b. One or more of the cotenants acquired title from a relative, whether 25
37	38		living or deceased. 26
38	39		c. Any of the following apply: 27
39	40		1. Twenty percent (20%) or more of the interests are held by 28
40	41		cotenants who are relatives. 29
41	42		2. Twenty percent (20%) or more of the interests are held by an 30
42	43		individual who acquired title from a relative, whether living or 31
43	44		deceased. 32
44	45		3. Twenty percent (20%) or more of the cotenants are relatives. 33
45	46		(6) Partition by sale. – A court-ordered sale of the entire heirs property, whether 34
46		-	by auction, sealed bids, or open-market sale conducted under G.S. 46A-96. 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 317-First Edition
	47	+	by auction, sealed bids, or open-market sale conducted under G.S. 46A-96. 35
	48	+	FILED SENATE
	49	+	Mar 17, 2025
	50	+	S.B. 317
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS15088-NO-19A
48	53		(7) Partition in kind. – The division of heirs property into physically distinct and 1
49	54		separately titled parcels. 2
50	55		(8) Record. – Information that is inscribed on a tangible medium or that is stored 3
51	56		in an electronic or other medium and is retrievable in perceivable form. 4
52	57		(9) Relative. – An ascendant, descendant, or collateral or an individual otherwise 5
53	58		related to another individual by blood, marriage, adoption, or law of this State 6
54	59		other than this Part. 7
55	60		"§ 46A-89. Applicability; relation to other law. 8
56	61		(a) In a proceeding to partition real property under Article 2 of this Chapter, the court 9
57	62		shall determine whether the property is heirs property. If the court determines that the property 10
58	63		is heirs property, the property shall be partitioned under this Part unless all of the cotenants 11
59	64		otherwise agree in a record. 12
60	65		(b) This Part supplements Article 1 of this Chapter and the other Parts of this Article and, 13
61	66		if a proceeding is governed by this Part, replaces provisions of this Chapter that are inconsistent 14
62	67		with this Part. 15
63	68		"§ 46A-90. Service; notice by posting. 16
64	69		(a) This Part does not limit or affect the method by which service of a summons and 17
65	70		notice in a partition proceeding may be made. 18
66	71		(b) If the petitioner in a partition proceeding seeks authorization for notice by publication 19
67	72		and the court determines that the property may be heirs property, the petitioner, not later than 10 20
68	73		days after the court's determination, shall post a conspicuous sign on the property that is the 21
69	74		subject of the proceeding. The sign must state that the proceeding has commenced and identify 22
70	75		the name and address of the court and the common designation by which the property is known. 23
71	76		The court may require the petitioner to publish on the sign the name of the petitioner and the 24
72	77		known respondents. 25
73	78		"§ 46A-91. Commissioners. 26
74	79		If the court appoints commissioners pursuant to G.S. 46A-50 or G.S. 46A-76, each 27
75	80		commissioner, in addition to the requirements and disqualifications applicable to commissioners 28
76	81		in G.S. 46A-50, must be disinterested and impartial and not a party to or a participant in the 29
77	82		proceeding. 30
78	83		"§ 46A-92. Determination of value. 31
79	84		(a) Except as otherwise provided in subsections (b) and (c) of this section, if the court 32
80	85		determines that the property that is the subject of a partition proceeding is heirs property, the 33
81	86		court shall determine the fair market value of the property by ordering an appraisal pursuant to 34
82	87		subsection (d) of this section. 35
83	88		(b) If all cotenants have agreed to the value of the property or to another method of 36
84	89		valuation, the court shall adopt that value or the value produced by the agreed method of 37
85	90		valuation. 38
86	91		(c) If the court determines that the evidentiary value of an appraisal is outweighed by the 39
87	92		cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value 40
88	93		of the property and send notice to the parties of the value. 41
89	94		(d) If the court orders an appraisal, the court shall appoint a disinterested real estate 42
90	95		appraiser licensed in this State to determine the fair market value of the property assuming sole 43
91	96		ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn 44
92	97		or verified appraisal with the court. 45
93	98		(e) If an appraisal is conducted pursuant to subsection (d) of this section, not later than 46
94	99		10 days after the appraisal is filed, the court shall send notice to each party with a known address, 47
95	100		stating the following: 48
96	101		(1) The appraised fair market value of the property. 49
97	102		(2) That the appraisal is available at the office of the clerk of superior court. 50 General Assembly Of North Carolina Session 2025
98		-	~~Senate Bill 317-First Edition~~ Page 3
	103	+	DRS15088-NO-19A Page 3
99	104		(3) That a party may file with the court an objection to the appraisal not later than 1
100	105		30 days after the notice is sent, stating the grounds for the objection. 2
101	106		(f) If an appraisal is filed with the court pursuant to subsection (d) of this section, the 3
102	107		court shall conduct a hearing to determine the fair market value of the property no sooner than 4
103	108		30 days after a copy of the notice of the appraisal is sent to each party under subsection (e) of 5
104	109		this section, whether or not an objection to the appraisal is filed under subdivision (3) of 6
105	110		subsection (e) of this section. In addition to the court-ordered appraisal, the court may consider 7
106	111		any other evidence of value offered by a party. 8
107	112		(g) After a hearing under subsection (f) of this section, but before considering the merits 9
108	113		of the partition proceeding, the court shall determine the fair market value of the property and 10
109	114		send notice to the parties of the value. 11
110	115		"§ 46A-93. Cotenant buyout. 12
111	116		(a) If any cotenant requested partition by sale, after the determination of value under 13
112	117		G.S. 46A-92, the court shall send notice to the parties that any cotenant except a cotenant that 14
113	118		requested partition by sale may buy all the interests of the cotenants that requested partition by 15
114	119		sale. 16
115	120		(b) No later than 45 days after the notice is sent under subsection (a) of this section, any 17
116	121		cotenant except a cotenant that requested partition by sale may give notice to the court that the 18
117	122		cotenant elects to buy all the interests of the cotenants that requested partition by sale. 19
118	123		(c) The purchase price for each of the interests of a cotenant that requested partition by 20
119	124		sale is the value of the entire parcel determined under G.S. 46A-92 multiplied by the cotenant's 21
120	125		fractional ownership of the entire parcel. 22
121	126		(d) After expiration of the period in subsection (b) of this section, the following rules 23
122	127		apply: 24
123	128		(1) If only one cotenant elects to buy all the interests of the cotenants that 25
124	129		requested partition by sale, the court shall notify all the parties of that fact. 26
125	130		(2) If more than one cotenant elects to buy all the interests of the cotenants that 27
126	131		requested partition by sale, the court shall allocate the right to buy those 28
127	132		interests among the electing cotenants based on each electing cotenant's 29
128	133		existing fractional ownership of the entire parcel divided by the total existing 30
129	134		fractional ownership of all cotenants electing to buy and send notice to all the 31
130	135		parties of that fact and of the price to be paid by each electing cotenant. 32
131	136		(3) If no cotenant elects to buy all the interests of the cotenants that requested 33
132	137		partition by sale, the court shall send notice to all the parties of that fact and 34
133	138		resolve the partition proceeding under G.S. 46A-94(a) and (b). 35
134	139		(e) If the court sends notice to the parties under subdivision (1) or (2) of subsection (d) 36
135	140		of this section, the court shall set a date, no sooner than 60 days after the date the notice was sent, 37
136	141		by which electing cotenants must pay their apportioned price into the court. After the date set by 38
137	142		the court, the following rules apply: 39
138	143		(1) If all electing cotenants timely pay their apportioned price into court, the court 40
139	144		shall issue an order reallocating all the interests of the cotenants and disburse 41
140	145		the amounts held by the court to the persons entitled to them. 42
141	146		(2) If no electing cotenant timely pays that cotenant's apportioned price, the court 43
142	147		shall resolve the partition proceeding under G.S. 46A-94(a) and (b) as if the 44
143	148		interests of the cotenants that requested partition by sale were not purchased. 45
144	149		(3) If one or more but not all of the electing cotenants fail to pay their apportioned 46
145	150		price on time, the court shall give notice to the electing cotenants that paid 47
146	151		their apportioned price of the interest remaining and the price for all that 48
147	152		interest. 49
148	153		(f) No later than 20 days after the court gives notice pursuant to subdivision (3) of 50
149	154		subsection (e) of this section, any cotenant that paid may elect to purchase all of the remaining 51 General Assembly Of North Carolina Session 2025
150		-	Page 4 ~~Senate Bill 317-First Edition~~
	155	+	Page 4 DRS15088-NO-19A
151	156		interest by paying the entire price into the court. After the 20-day period, the following rules 1
152	157		apply: 2
153	158		(1) If only one cotenant pays the entire price for the remaining interest, the court 3
154	159		shall issue an order reallocating the remaining interest to that cotenant. The 4
155	160		court shall promptly issue an order reallocating the interests of all of the 5
156	161		cotenants and disburse the amounts held by the court to the persons entitled to 6
157	162		them. 7
158	163		(2) If no cotenant pays the entire price for the remaining interest, the court shall 8
159	164		resolve the partition proceeding under G.S. 46A-94(a) and (b) as if the 9
160	165		interests of the cotenants that requested partition by sale were not purchased. 10
161	166		(3) If more than one cotenant pays the entire price for the remaining interest, the 11
162	167		court shall reapportion the remaining interest among those paying cotenants, 12
163	168		based on each paying cotenant's original fractional ownership of the entire 13
164	169		parcel divided by the total original fractional ownership of all cotenants that 14
165	170		paid the entire price for the remaining interest. The court shall promptly issue 15
166	171		an order reallocating all of the cotenants' interests, disburse the amounts held 16
167	172		by the court to the persons entitled to them, and promptly refund any excess 17
168	173		payment held by the court. 18
169	174		(g) No later than 45 days after the court sends notice to the parties pursuant to subsection 19
170	175		(a) of this section, any cotenant entitled to buy an interest under this section may request the court 20
171	176		to authorize the sale as part of the pending proceeding of the interests of cotenants named as 21
172	177		respondents and served with the complaint but that did not appear in the proceeding. 22
173	178		(h) If the court receives a timely request under subsection (g) of this section, the court, 23
174	179		after hearing, may deny the request or authorize the requested additional sale on such terms as 24
175	180		the court determines are fair and reasonable, subject to all of the following limitations: 25
176	181		(1) A sale authorized under this subsection may occur only after the purchase 26
177	182		prices for all interests subject to sale under subsections (a) through (f) of this 27
178	183		section have been paid into the court and those interests have been reallocated 28
179	184		among the cotenants as provided in those subsections. 29
180	185		(2) The purchase price for the interest of a non-appearing cotenant is based on the 30
181	186		court's determination of value under G.S. 46A-92. 31
182	187		"§ 46A-94. Partition alternatives. 32
183	188		(a) If all the interests of all cotenants that requested partition by sale are not purchased 33
184	189		by other cotenants pursuant to G.S. 46A-93, or if, after conclusion of the buyout under 34
185	190		G.S. 46A-93, a cotenant remains that has requested partition in kind, the court shall order 35
186	191		partition in kind unless the court, after consideration of the factors listed in G.S. 46A-95, finds 36
187	192		that partition in kind will result in substantial injury to the cotenants as a group. In considering 37
188	193		whether to order partition in kind, the court shall approve a request by two or more parties to 38
189	194		have their individual interests aggregated. 39
190	195		(b) If the court does not order partition in kind under subsection (a) of this section, the 40
191	196		court shall order partition by sale pursuant to G.S. 46A-96 or, if no cotenant requested partition 41
192	197		by sale, the court shall dismiss the proceeding. 42
193	198		(c) If the court orders partition in kind pursuant to subsection (a) of this section, the court 43
194	199		may require that one or more cotenants pay one or more other cotenants' amounts so that the 44
195	200		payments, taken together with the value of the in-kind distributions to the cotenants, will make 45
196	201		the partition in kind just and proportionate in value to the fractional interests held. 46
197	202		(d) If the court orders partition in kind, the court shall allocate to the cotenants that are 47
198	203		unknown, unlocatable, or the subject of a default judgment, if their interests were not bought out 48
199	204		pursuant to G.S. 46A-93, a part of the property representing the combined interests of these 49
200	205		cotenants as determined by the court and the shares of these cotenants shall be apportioned 50
201	206		together as one parcel. 51 General Assembly Of North Carolina Session 2025
202		-	~~Senate Bill 317-First Edition~~ Page 5
	207	+	DRS15088-NO-19A Page 5
203	208		"§ 46A-95. Considerations for partition in kind. 1
204	209		(a) In determining under G.S. 46A-94(a) whether partition in kind would result in 2
205	210		substantial injury to the cotenants as a group, the court shall consider the following: 3
206	211		(1) Whether the heirs property practicably can be divided among the cotenants. 4
207	212		(2) Whether partition in kind would apportion the property in such a way that the 5
208	213		aggregate fair market value of the parcels resulting from the division would 6
209	214		be materially less than the value of the property if it were sold as a whole, 7
210	215		taking into account the condition under which a court-ordered sale likely 8
211	216		would occur. 9
212	217		(3) Evidence of the collective duration of ownership or possession of the property 10
213	218		by a cotenant and one or more predecessors in title or predecessors in 11
214	219		possession to the cotenant who are or were relatives of the cotenant or each 12
215	220		other. 13
216	221		(4) A cotenant's sentimental attachment to the property, including any attachment 14
217	222		arising because the property has ancestral or other unique or special value to 15
218	223		the cotenant. 16
219	224		(5) The lawful use being made of the property by a cotenant and the degree to 17
220	225		which the cotenant would be harmed if the cotenant could not continue the 18
221	226		same use of the property. 19
222	227		(6) The degree to which the cotenants have contributed their pro rata share of the 20
223	228		property taxes, insurance, and other expenses associated with maintaining 21
224	229		ownership of the property or have contributed to the physical improvement, 22
225	230		maintenance, or upkeep of the property. 23
226	231		(7) Any other relevant factor. 24
227	232		(b) The court may not consider any one factor in subsection (a) of this section to be 25
228	233		dispositive without weighing the totality of all relevant factors and circumstances. 26
229	234		"§ 46A-96. Open-market sale; sealed bids; auction. 27
230	235		(a) If the court orders a sale of heirs property, the sale must be an open-market sale unless 28
231	236		the court finds that a sale by sealed bids or an auction would be more economically advantageous 29
232	237		and in the best interest of the cotenants as a group. 30
233	238		(b) If the court orders an open-market sale and the parties, not later than 10 days after the 31
234	239		entry of the order, agree on a real estate broker licensed in this State to offer the property for sale, 32
235	240		the court shall appoint the broker and establish a reasonable commission. If the parties do not 33
236	241		agree on a broker, the court shall appoint a disinterested real estate broker licensed in this State 34
237	242		to offer the property for sale and shall establish a reasonable commission. The broker shall offer 35
238	243		the property for sale in a commercially reasonable manner at a price no lower than the 36
239	244		determination of value and on the terms and conditions established by the court. 37
240	245		(c) If the broker appointed under subsection (b) of this section obtains within a reasonable 38
241	246		time an offer to purchase the property for at least the determination of value, then the following 39
242	247		apply: 40
243	248		(1) The broker shall comply with the reporting requirements in G.S. 46A-97. 41
244	249		(2) The sale may be completed in accordance with State law other than this Part. 42
245	250		(d) If the broker appointed under subsection (b) of this section does not obtain within a 43
246	251		reasonable time an offer to purchase the property for at least the determination of value, the court, 44
247	252		after hearing, may do any of the following: 45
248	253		(1) Approve the highest outstanding offer, if any. 46
249	254		(2) Redetermine the value of the property and order that the property continue to 47
250	255		be offered for an additional time. 48
251	256		(3) Order that the property be sold by sealed bids or at an auction. 49 General Assembly Of North Carolina Session 2025
252		-	Page 6 ~~Senate Bill 317-First Edition~~
	257	+	Page 6 DRS15088-NO-19A
253	258		(e) If the court orders a sale by sealed bids or an auction, the court shall set terms and 1
254	259		conditions of the sale. If the court orders an auction, the auction must be conducted under 2
255	260		G.S. 46A-76. 3
256	261		(f) If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled 4
257	262		to a credit against the price in an amount equal to the purchaser's share of the proceeds. 5
258	263		"§ 46A-97. Report of open-market sale. 6
259	264		(a) A broker appointed under G.S. 46A-96(b) to offer heirs property for open-market sale 7
260	265		shall file a report with the court not later than seven days after receiving an offer to purchase the 8
261	266		property for at least the value determined under G.S. 46A-92 or G.S. 46A-96. 9
262	267		(b) The report required by subsection (a) of this section must contain all of the following 10
263	268		information: 11
264	269		(1) A description of the property to be sold to each buyer. 12
265	270		(2) The name of each buyer. 13
266	271		(3) The proposed purchase price. 14
267	272		(4) The terms and conditions of the proposed sale, including the terms of any 15
268	273		owner financing. 16
269	274		(5) The amounts to be paid to lienholders, if any. 17
270	275		(6) A statement of contractual or other arrangements or conditions of the broker's 18
271	276		commission. 19
272	277		(7) Any other material facts relevant to the sale. 20
273	278		"§ 46A-98. Uniformity of application and construction. 21
274	279		In applying and construing this uniform act, consideration must be given to the need to 22
275	280		promote uniformity of the law with respect to its subject matter among states that enact it. 23
276	281		"§ 46A-99. Relation to the Electronic Signatures in Global and National Commerce Act. 24
277	282		This Part modifies, limits, and supersedes the Electronic Signatures in Global and National 25
278	283		Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede § 101(c) of 26
279	284		that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in 27
280	285		§ 103(b) of that act, 15 U.S.C. § 7003(b)." 28
281	286		SECTION 2. G.S. 46A-26 reads as rewritten: 29
282	287		"§ 46A-26. Methods of partition. 30
283	288		In a partition proceeding under this Article, the court shall order one of the following methods 31
284	289		of partitioning the real property: 32
285	290		(1) Actual partition under Part 2 of this Article. 33
286	291		(2) Partition sale under Part 3 of this Article so long as the requirements of that 34
287	292		Part are satisfied. 35
288	293		(3) Actual partition of part of the property and a partition sale of the remaining 36
289	294		part. 37
290	295		(4) Partition of part of the property, whether by actual partition or by partition 38
291	296		sale, and order that the remaining part continue to be held in cotenancy. The 39
292	297		court, however, shall not order a cotenant to continue to hold property in 40
293	298		cotenancy over the cotenant's objection. 41
294	299		(5) If the property is determined to be heirs property, as defined in G.S. 46A-88, 42
295	300		then partition under Part 4 of this Article as a partition of heirs property." 43
296	301		SECTION 3. This act becomes effective January 1, 2026, and applies to petitions 44
297	302		for partition filed on or after that date. 45