Rhode Island 2025 2025 Regular Session

Rhode Island House Bill H5937 Introduced / Bill

Filed 02/28/2025

                     
 
 
 
2025 -- H 5937 
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LC001947 
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S T A T E O F R H O D E I S L A N D 
IN GENERAL ASSEMBLY 
JANUARY SESSION, A.D. 2025 
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A N   A C T 
RELATING TO PROPERTY -- UNIFORM PARTITION OF HEIRS' PROPERTY ACT 
Introduced By: Representatives McEntee, Spears, Caldwell, Bennett, and Kazarian 
Date Introduced: February 28, 2025 
Referred To: House Judiciary 
 
 
It is enacted by the General Assembly as follows: 
SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by 1 
adding thereto the following chapter: 2 
CHAPTER 15.1 3 
UNIFORM PARTITION OF HEIRS' PROPERTY ACT 4 
34-15.1-1. Short title.     5 
This chapter shall be known and may be cited as the "Uniform Partition of Heirs' Property 6 
Act." 7 
34-15.1-2. Definitions.     8 
For the purposes of this section, the following terms shall have the following meanings: 9 
(1) “Ascendant” means an individual who precedes another individual in lineage, in the 10 
direct line of ascent from the other individual. 11 
(2) “Collateral” means an individual who is related to another individual under the law of 12 
intestate succession of the state, but who is not the other individual’s ascendant or descendant. 13 
(3) “Descendant” means an individual who follows another individual in lineage, in the 14 
direct line of descent from the other individual. 15 
(4) “Determination of value” means a court order determining the fair market value of 16 
heirs' property pursuant to §§ 34-15.1-6 or 34-15.1-10 or adopting the valuation of the property 17 
agreed to by all cotenants. 18 
(5) “Heirs' property” means real property held in tenancy in common which satisfies all of 19   
 
 
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the following requirements as of the filing of a partition action: 1 
(i) There is no agreement in a record binding all the cotenants which governs the partition 2 
of the property; 3 
(ii) One or more of the cotenants acquired title from a relative, whether living or deceased; 4 
and 5 
(iii) Any of the following applies:  6 
(A) Twenty percent (20%) or more of the interests are held by cotenants who are relatives;  7 
(B) Twenty percent (20%) or more of the interests are held by an individual who acquired 8 
title from a relative, whether living or deceased; or  9 
(C) Twenty percent (20%) or more of the cotenants are relatives. 10 
(6) “Partition by sale” means a court-ordered sale of the entire heirs' property, whether by 11 
open market sale, sealed bids, or auction conducted under subsection (h) of this section. 12 
(7) “Partition in kind” means the division of heirs' property into physically distinct and 13 
separately titled parcels. 14 
(8) “Record” means information that is inscribed on a tangible medium or that is stored in 15 
an electronic or other medium and is retrievable in perceivable form. 16 
(9) “Relative” means an ascendant, descendant, or collateral or an individual otherwise 17 
related to another individual by blood, marriage, adoption, or law of the state. 18 
34-15.1-3. Applicability -- Relation to other law.     19 
(a) This chapter shall apply to partition actions filed after January 1, 2026. 20 
(b) In an action to partition real property under chapter 15 of title 34, the court shall 21 
determine whether the property is heirs' property. If the court determines that the property is heirs' 22 
property, the property shall be partitioned under this chapter unless all of the cotenants otherwise 23 
agree in a record. 24 
(c) This chapter supplements chapter 15 of title 34, and, if an action is governed by this 25 
chapter, replace provisions of said chapter 15 that are not inconsistent with this chapter. 26 
34-15.1-4. Service -- Notice by posting.     27 
(a) This chapter does not limit or affect the method by which service of a complaint in a 28 
partition action may be made. 29 
(b) If the plaintiff in a partition action seeks an order of notice by publication and the court 30 
determines that the property may be heirs' property, the plaintiff, not later than ten (10) days after 31 
the court's determination, shall post and maintain, while the action is pending, a conspicuous sign 32 
on the property that is the subject of the action. The sign shall state that the action has commenced 33 
and identify the name and address of the court and the common designation by which the property 34   
 
 
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is known. The court may require the plaintiff to publish on the sign the name of the plaintiff and 1 
the known defendants. 2 
34-15.1-5. Commissioners.     3 
If the court appoints commissioners under this chapter, each commissioner, in addition to 4 
the requirements and disqualifications applicable to commissioners under this chapter, shall be 5 
disinterested and impartial and not a party to or a participant in the action. 6 
34-15.1-6. Determination of value.     7 
(a) Except as otherwise provided in subsections (b) and (c) of this section, if the court 8 
determines that the property that is the subject of an action to partition real property is heirs' 9 
property, the court shall determine the fair market value of the property by ordering an appraisal.  10 
(b) If all cotenants have agreed to the value of the property or to another method of 11 
valuation, the court shall adopt that value or the value produced by the agreed method of valuation.  12 
(c) If the court determines that the evidentiary value of an appraisal is outweighed by the 13 
cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value 14 
of the property and send notice to the parties of the value.  15 
(d) If the court orders an appraisal, the court shall appoint a disinterested real estate 16 
appraiser licensed in this state to determine the fair market value of the property assuming sole 17 
ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn 18 
or verified appraisal with the court.  19 
(e) If an appraisal is conducted, the court shall, not later than ten (10) days after the 20 
appraisal is filed, send notice to each party with a known address. The notice shall state all of the 21 
following:  22 
(1) The appraised fair market value of the property;  23 
(2) A statement that the appraisal is available at the clerk’s office; and 24 
(3) A statement that a party may file with the court an objection to the appraisal not later 25 
than thirty (30) days after the notice is sent, stating the grounds for the objection. 26 
(f) If an appraisal is filed with the court under subsection (d) of this section, the court shall 27 
conduct a hearing to determine the fair market value of the property not sooner than thirty (30) days 28 
after a copy of the notice of the appraisal is sent to each party under subsection (e) of this section, 29 
whether or not an objection to the appraisal is filed under subsection (e)(3) of this section. In 30 
addition to the court-ordered appraisal, the court may consider any other evidence of fair market 31 
value assuming sole ownership of the fee simple estate offered by a party.  32 
(g) After a hearing under subsection (f) of this section, but before considering the merits of 33 
the action to partition real property, the court shall determine the fair market value of the property 34   
 
 
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and send notice to the parties of the value. 1 
34-15.1-7. Cotenant buyout.     2 
(a) If a cotenant requests partition by sale, the court shall, after determining the value of 3 
the property under § 34-15.1-6, send notice to the parties that any cotenant except a cotenant that 4 
requested partition by sale may buy all the interests of the cotenants that requested partition by sale. 5 
(b) Not later than forty-five (45) days after the notice is sent under subsection (a) of this 6 
section, a cotenant, except a cotenant that requested partition by sale, may give notice to the court 7 
that the cotenant elects to buy all the interests of the cotenants that requested partition by sale.  8 
(c) The purchase price for each of the interests of a cotenant that requested partition by sale 9 
is the value of the entire parcel determined under § 34-15.1-6 multiplied by the cotenant’s fractional 10 
ownership of the entire parcel.  11 
(d) After the expiration of the period in subsection (b) of this section, the following rules 12 
shall apply: 13 
(1) If only one cotenant elects to buy all the interests of the cotenants that requested 14 
partition by sale, the court shall notify all the parties of that fact.  15 
(2) If more than one cotenant elects to buy all the interests of the cotenants that requested 16 
partition by sale, the court shall allocate the right to buy those interests among the electing cotenants 17 
based on each electing cotenant’s existing fractional ownership of the entire parcel divided by the 18 
total existing fractional ownership of all cotenants electing to buy and send notice to all the parties 19 
of that fact and of the price to be paid by each electing cotenant.  20 
(3) If no cotenant elects to buy all the interests of the cotenants that requested partition by 21 
sale, the court shall send notice to all the parties of that fact and resolve the action to partition real 22 
property under §§ 34-15.1-8(a) and (b).  23 
(e) If the court sends notice to the parties under subsections (d)(1) or (d)(2) of this section, 24 
the court shall set a date, not sooner than sixty (60) days after the date the notice was sent, by which 25 
electing cotenants shall pay their apportioned price to the court. After this date, all of the following 26 
rules shall apply: 27 
(1) If all electing cotenants timely pay their apportioned price to the court, the court shall 28 
issue an order reallocating all the interests of the cotenants and disburse the amounts held by the 29 
court to the person entitled to them; 30 
(2) If no cotenant timely pays the price apportioned to the cotenant, the court shall resolve 31 
the action to partition real property under §§ 34-15.1-8(a) and (b) as if the interests of the cotenants 32 
that requested partition by sale were not purchased; and  33 
(3) If one or more but not all of the electing cotenants fail to pay the apportioned price on 34   
 
 
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time, the court, on motion, shall give notice to the electing cotenants that paid the apportioned price 1 
of the interest remaining and the price for all the interest.  2 
(f) Not later than twenty (20) days after the court gives notice under subsection (e)(3) of 3 
this section, any cotenant that paid the price apportioned to the cotenant may elect to purchase all 4 
of the remaining interest by paying the entire price for the remaining interest to the court. After the 5 
twenty (20) day period, the following rules shall apply:  6 
(1) If only one cotenant pays the entire price for the remaining interest, the court shall issue 7 
an order reallocating the remaining interest to that cotenant. The court shall promptly issue an order 8 
reallocating the interests of all of the cotenants and disburse the amounts held by the court to the 9 
persons entitled to them;  10 
(2) If no cotenant pays the entire price for the remaining interest, the court shall resolve the 11 
action to partition real property under §§ 34-15.1-8(a) and (b) as if the interests of the cotenants 12 
that requested partition by sale were not purchased; and  13 
(3) If more than one cotenant pays the entire price for the remaining interest, the court shall 14 
reapportion the remaining interest among the paying cotenants, based on each paying the cotenant’s 15 
original fractional ownership of the entire parcel divided by the total original fractional ownership 16 
of all cotenants that paid the entire price for the remaining interest. The court shall promptly issue 17 
an order reallocating all of the cotenants’ interests, disburse the amounts held by the court to the 18 
persons entitled to them, and promptly refund any excess payment held by the court.  19 
(g) Not later than forty-five (45) days after the court sends notice to the parties, a cotenant 20 
entitled to buy an interest under this section may request that the court authorize the sale as part of 21 
the pending action of the interests of cotenants named as defendants and served with the complaint 22 
but that did not appear in the action.  23 
(h) If the court receives a timely request under subsection (g) of this section, the court, after 24 
a hearing, may deny the request or authorize the requested additional sale on those terms as the 25 
court determines are fair and reasonable, subject to both of the following limitations: 26 
(1) A sale authorized under this subsection may occur only after the purchase prices for all 27 
interests subject to sale under subsections (a) through (f) of this section have been paid to the court 28 
and those interests have been reallocated among the cotenants; and  29 
(2) The purchase price for the interest of a cotenant that did not appear is based on the 30 
court’s determination of value under § 34-15.1-6.  31 
34-15.1-8. Partition alternatives.     32 
(a) If all the interests of all cotenants that requested partition by sale are not purchased by 33 
other cotenants under § 34-15.1-7, or, if after conclusion of the buyout under § 34-15.1-7, a cotenant 34   
 
 
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remains that has requested partition in kind, the court shall order partition in kind unless the court, 1 
after consideration of the factors listed in §34-15.1-9, finds that partition in kind will result in great 2 
prejudice to the cotenants as a group. In considering whether to order partition in kind, the court 3 
shall approve a request by two (2) or more parties to have the requesting parties’ individual interests 4 
aggregated.  5 
(b) If the court does not order partition in kind under subsection (a) of this section, the court 6 
shall order partition by sale under § 34-15.1-10, or, if no cotenant requested partition by sale, the 7 
court shall dismiss the action. 8 
(c) If the court orders partition in kind under subsection (a) of this section, the court may 9 
require that one or more cotenants pay one or more other cotenants in order that the payments, 10 
taken together with the value of the in-kind distributions to the cotenants, will make the partition 11 
in kind just and proportionate in value to the fractional interests held.  12 
(d) If the court orders partition in kind, the court shall allocate to the cotenants who are 13 
unknown, cannot be located, or are the subject of a default judgment, if the cotenant’s interests 14 
were not represented under § 34-15.1-7, a part of the property representing the combined interests 15 
of these cotenants as determined by the court, and this part of the property shall remain undivided. 16 
34-15.1-9. Consideration for partition in kind.     17 
(a) In determining whether partition in kind would result in great prejudice to the cotenants 18 
as a group under § 34-15.1-8, the court shall consider all of the following:  19 
(1) Whether it is practicable to divide the heirs' property among the cotenants; 20 
(2) Whether partition in kind would apportion the property in a way that the aggregate fair 21 
market value of the parcels resulting from the division would be materially less than the value of 22 
the property if it were sold as a whole, considering the condition under which a court-ordered sale 23 
would likely occur;  24 
(3) Evidence of the collective duration of ownership or possession of the property by a 25 
cotenant and one or more predecessors in title or predecessors in possession to the cotenant who 26 
are or were relatives of the cotenant or each other; 27 
(4) A cotenant’s sentimental attachment to the property, including any attachment arising 28 
because the property has ancestral or other unique or special value to the cotenant; 29 
(5) The lawful use being made of the property by a cotenant and the degree to which the 30 
cotenant would be harmed if the cotenant could not continue the same use of the property; 31 
(6) The degree to which the cotenants have contributed their pro rata share of the property 32 
taxes, insurance, and other expenses associated with maintaining ownership of the property or have 33 
contributed to the physical improvement, maintenance, or upkeep of the property; and  34   
 
 
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(7) Any other relevant factor(s).  1 
(b) The court shall not consider any one factor in subsection (a) of this section to be 2 
dispositive without weighing the totality of all relevant factors and circumstances. 3 
34-15.1-10. Open market sale, sealed bids or auction.     4 
(a) If the court orders a sale of heirs' property, the sale shall be an open-market sale unless 5 
the court finds that a sale by sealed bids or an auction would be more economically advantageous 6 
and in the best interest of the cotenants as a group. 7 
 (b) If the court orders an open-market sale and the parties, not later than ten (10) days after 8 
the entry of the order, agree on a real estate broker licensed in this state to offer the property for 9 
sale, the court shall appoint the real estate broker and establish a reasonable commission. If the 10 
parties do not agree on a real estate broker, the court shall appoint a disinterested real estate broker 11 
licensed in this state to offer the property for sale and shall establish a reasonable commission. The 12 
real estate broker shall offer the property for sale in a commercially reasonable manner at a price 13 
no lower than the determination of value and on the terms and conditions established by the court.  14 
(c) If the real estate broker appointed under subsection (b) of this section obtains, within a 15 
reasonable time, an offer to purchase the property for not less than the determination of value, the 16 
real estate broker shall comply with the reporting requirements in § 34-15.1-11 and the sale may 17 
be completed in accordance with the requirements of state law other than this chapter.  18 
(d) If the real estate broker appointed under subsection (b) of this section does not obtain, 19 
within a reasonable time, an offer to purchase the property for not less than the determination of 20 
value, the court, after a hearing, may do any of the following:  21 
(1) Approve the highest outstanding offer, if any;  22 
(2) Redetermine the value of the property and order that the property continue to be offered 23 
for an additional time;  24 
(3) Order that the property be sold by sealed bids or at an auction.  25 
(e) If the court orders a sale by sealed bids or an auction, the court shall set the terms and 26 
conditions of the sale.  27 
(f) If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled 28 
to a credit against the price in an amount equal to the purchaser’s share of the proceeds. 29 
34-15.1-11. Report of open-market sale.     30 
(a) Unless required to do so within a shorter time, a real estate broker appointed under § 31 
34-15.1-10(b) to offer heirs' property for open-market sale shall file a report with the court not later 32 
than seven (7) days after receiving an offer to purchase the property for not less than the value 33 
determined under § 34-15.1-6.  34   
 
 
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(b) The report required by subsection (a) of this section shall contain all of the following 1 
information: 2 
 (1) A description of the property to be sold to each buyer;  3 
(2) The name of each buyer;  4 
(3) The proposed purchase price;  5 
(4) The terms and conditions of the proposed sale, including the terms of any owner 6 
financing; 7 
(5) The amounts to be paid to lienholders;  8 
(6) A statement of contractual or other arrangements or conditions of the broker’s 9 
commission; and  10 
(7) Other material facts relevant to the sale. 11 
34-15.1-12. Uniformity of application and construction.     12 
In applying and construing this chapter, consideration shall be given to the need to promote 13 
uniformity of the law with respect to its subject matter among states that enact the uniform partition 14 
of heirs' property act. 15 
34-15.1-13. Relation to electronic signatures in Global and National Commerce Act.   16 
This chapter modifies, limits, or supersedes the federal Electronic Signatures in Global and 17 
National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede § 18 
7001(c), or authorize electronic delivery of any of the notices described in § 7003(b). 19 
SECTION 2. This act shall take effect on January 1, 2026. 20 
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EXPLANATION 
BY THE LEGISLATIVE COUNCIL 
OF 
A N   A C T 
RELATING TO PROPERTY -- UNIFORM PARTITION OF HEIRS' PROPERTY ACT 
***
This act would enact processes to partition heirs' property, which often refers to real 1 
property that is owned by multiple relatives (co-tenants) who have inherited the property's title and 2 
that does not have a written agreement on how to divide the property. Under the act, if a cotenant 3 
sought to partition the property, the court would have to notify all other co-tenants and allow them 4 
to buy out the interest of the co-tenant wishing to sell. The act would require the court to determine 5 
the fair market value of the property and specify how to do so. Also, under certain conditions, such 6 
as if a buyout did not occur, the court could require co-tenants to divide the property into physically 7 
distinct and separately titled parcels. If the court ordered a sale of the property and the co-tenants 8 
agreed, the court would have to hire a real estate broker for the sale of a property and require that 9 
broker to file a report containing information on offers for the property. 10 
This act would take effect on January 1, 2026. 11 
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