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| 5 | 5 | | 2025 -- H 5937 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001947 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PROPERTY -- UNIFORM PARTITION OF HEIRS' PROPERTY ACT |
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| 16 | 16 | | Introduced By: Representatives McEntee, Spears, Caldwell, Bennett, and Kazarian |
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| 17 | 17 | | Date Introduced: February 28, 2025 |
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| 18 | 18 | | Referred To: House Judiciary |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by 1 |
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| 23 | 23 | | adding thereto the following chapter: 2 |
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| 24 | 24 | | CHAPTER 15.1 3 |
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| 25 | 25 | | UNIFORM PARTITION OF HEIRS' PROPERTY ACT 4 |
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| 26 | 26 | | 34-15.1-1. Short title. 5 |
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| 27 | 27 | | This chapter shall be known and may be cited as the "Uniform Partition of Heirs' Property 6 |
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| 28 | 28 | | Act." 7 |
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| 29 | 29 | | 34-15.1-2. Definitions. 8 |
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| 30 | 30 | | For the purposes of this section, the following terms shall have the following meanings: 9 |
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| 31 | 31 | | (1) “Ascendant” means an individual who precedes another individual in lineage, in the 10 |
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| 32 | 32 | | direct line of ascent from the other individual. 11 |
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| 33 | 33 | | (2) “Collateral” means an individual who is related to another individual under the law of 12 |
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| 34 | 34 | | intestate succession of the state, but who is not the other individual’s ascendant or descendant. 13 |
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| 35 | 35 | | (3) “Descendant” means an individual who follows another individual in lineage, in the 14 |
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| 36 | 36 | | direct line of descent from the other individual. 15 |
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| 37 | 37 | | (4) “Determination of value” means a court order determining the fair market value of 16 |
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| 38 | 38 | | heirs' property pursuant to §§ 34-15.1-6 or 34-15.1-10 or adopting the valuation of the property 17 |
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| 39 | 39 | | agreed to by all cotenants. 18 |
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| 40 | 40 | | (5) “Heirs' property” means real property held in tenancy in common which satisfies all of 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001947 - Page 2 of 9 |
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| 44 | 44 | | the following requirements as of the filing of a partition action: 1 |
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| 45 | 45 | | (i) There is no agreement in a record binding all the cotenants which governs the partition 2 |
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| 46 | 46 | | of the property; 3 |
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| 47 | 47 | | (ii) One or more of the cotenants acquired title from a relative, whether living or deceased; 4 |
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| 48 | 48 | | and 5 |
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| 49 | 49 | | (iii) Any of the following applies: 6 |
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| 50 | 50 | | (A) Twenty percent (20%) or more of the interests are held by cotenants who are relatives; 7 |
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| 51 | 51 | | (B) Twenty percent (20%) or more of the interests are held by an individual who acquired 8 |
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| 52 | 52 | | title from a relative, whether living or deceased; or 9 |
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| 53 | 53 | | (C) Twenty percent (20%) or more of the cotenants are relatives. 10 |
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| 54 | 54 | | (6) “Partition by sale” means a court-ordered sale of the entire heirs' property, whether by 11 |
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| 55 | 55 | | open market sale, sealed bids, or auction conducted under subsection (h) of this section. 12 |
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| 56 | 56 | | (7) “Partition in kind” means the division of heirs' property into physically distinct and 13 |
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| 57 | 57 | | separately titled parcels. 14 |
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| 58 | 58 | | (8) “Record” means information that is inscribed on a tangible medium or that is stored in 15 |
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| 59 | 59 | | an electronic or other medium and is retrievable in perceivable form. 16 |
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| 60 | 60 | | (9) “Relative” means an ascendant, descendant, or collateral or an individual otherwise 17 |
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| 61 | 61 | | related to another individual by blood, marriage, adoption, or law of the state. 18 |
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| 62 | 62 | | 34-15.1-3. Applicability -- Relation to other law. 19 |
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| 63 | 63 | | (a) This chapter shall apply to partition actions filed after January 1, 2026. 20 |
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| 64 | 64 | | (b) In an action to partition real property under chapter 15 of title 34, the court shall 21 |
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| 65 | 65 | | determine whether the property is heirs' property. If the court determines that the property is heirs' 22 |
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| 66 | 66 | | property, the property shall be partitioned under this chapter unless all of the cotenants otherwise 23 |
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| 67 | 67 | | agree in a record. 24 |
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| 68 | 68 | | (c) This chapter supplements chapter 15 of title 34, and, if an action is governed by this 25 |
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| 69 | 69 | | chapter, replace provisions of said chapter 15 that are not inconsistent with this chapter. 26 |
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| 70 | 70 | | 34-15.1-4. Service -- Notice by posting. 27 |
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| 71 | 71 | | (a) This chapter does not limit or affect the method by which service of a complaint in a 28 |
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| 72 | 72 | | partition action may be made. 29 |
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| 73 | 73 | | (b) If the plaintiff in a partition action seeks an order of notice by publication and the court 30 |
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| 74 | 74 | | determines that the property may be heirs' property, the plaintiff, not later than ten (10) days after 31 |
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| 75 | 75 | | the court's determination, shall post and maintain, while the action is pending, a conspicuous sign 32 |
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| 76 | 76 | | on the property that is the subject of the action. The sign shall state that the action has commenced 33 |
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| 77 | 77 | | and identify the name and address of the court and the common designation by which the property 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC001947 - Page 3 of 9 |
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| 81 | 81 | | is known. The court may require the plaintiff to publish on the sign the name of the plaintiff and 1 |
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| 82 | 82 | | the known defendants. 2 |
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| 83 | 83 | | 34-15.1-5. Commissioners. 3 |
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| 84 | 84 | | If the court appoints commissioners under this chapter, each commissioner, in addition to 4 |
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| 85 | 85 | | the requirements and disqualifications applicable to commissioners under this chapter, shall be 5 |
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| 86 | 86 | | disinterested and impartial and not a party to or a participant in the action. 6 |
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| 87 | 87 | | 34-15.1-6. Determination of value. 7 |
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| 88 | 88 | | (a) Except as otherwise provided in subsections (b) and (c) of this section, if the court 8 |
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| 89 | 89 | | determines that the property that is the subject of an action to partition real property is heirs' 9 |
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| 90 | 90 | | property, the court shall determine the fair market value of the property by ordering an appraisal. 10 |
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| 91 | 91 | | (b) If all cotenants have agreed to the value of the property or to another method of 11 |
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| 92 | 92 | | valuation, the court shall adopt that value or the value produced by the agreed method of valuation. 12 |
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| 93 | 93 | | (c) If the court determines that the evidentiary value of an appraisal is outweighed by the 13 |
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| 94 | 94 | | cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value 14 |
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| 95 | 95 | | of the property and send notice to the parties of the value. 15 |
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| 96 | 96 | | (d) If the court orders an appraisal, the court shall appoint a disinterested real estate 16 |
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| 97 | 97 | | appraiser licensed in this state to determine the fair market value of the property assuming sole 17 |
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| 98 | 98 | | ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn 18 |
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| 99 | 99 | | or verified appraisal with the court. 19 |
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| 100 | 100 | | (e) If an appraisal is conducted, the court shall, not later than ten (10) days after the 20 |
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| 101 | 101 | | appraisal is filed, send notice to each party with a known address. The notice shall state all of the 21 |
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| 102 | 102 | | following: 22 |
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| 103 | 103 | | (1) The appraised fair market value of the property; 23 |
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| 104 | 104 | | (2) A statement that the appraisal is available at the clerk’s office; and 24 |
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| 105 | 105 | | (3) A statement that a party may file with the court an objection to the appraisal not later 25 |
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| 106 | 106 | | than thirty (30) days after the notice is sent, stating the grounds for the objection. 26 |
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| 107 | 107 | | (f) If an appraisal is filed with the court under subsection (d) of this section, the court shall 27 |
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| 108 | 108 | | conduct a hearing to determine the fair market value of the property not sooner than thirty (30) days 28 |
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| 109 | 109 | | after a copy of the notice of the appraisal is sent to each party under subsection (e) of this section, 29 |
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| 110 | 110 | | whether or not an objection to the appraisal is filed under subsection (e)(3) of this section. In 30 |
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| 111 | 111 | | addition to the court-ordered appraisal, the court may consider any other evidence of fair market 31 |
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| 112 | 112 | | value assuming sole ownership of the fee simple estate offered by a party. 32 |
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| 113 | 113 | | (g) After a hearing under subsection (f) of this section, but before considering the merits of 33 |
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| 114 | 114 | | the action to partition real property, the court shall determine the fair market value of the property 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC001947 - Page 4 of 9 |
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| 118 | 118 | | and send notice to the parties of the value. 1 |
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| 119 | 119 | | 34-15.1-7. Cotenant buyout. 2 |
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| 120 | 120 | | (a) If a cotenant requests partition by sale, the court shall, after determining the value of 3 |
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| 121 | 121 | | the property under § 34-15.1-6, send notice to the parties that any cotenant except a cotenant that 4 |
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| 122 | 122 | | requested partition by sale may buy all the interests of the cotenants that requested partition by sale. 5 |
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| 123 | 123 | | (b) Not later than forty-five (45) days after the notice is sent under subsection (a) of this 6 |
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| 124 | 124 | | section, a cotenant, except a cotenant that requested partition by sale, may give notice to the court 7 |
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| 125 | 125 | | that the cotenant elects to buy all the interests of the cotenants that requested partition by sale. 8 |
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| 126 | 126 | | (c) The purchase price for each of the interests of a cotenant that requested partition by sale 9 |
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| 127 | 127 | | is the value of the entire parcel determined under § 34-15.1-6 multiplied by the cotenant’s fractional 10 |
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| 128 | 128 | | ownership of the entire parcel. 11 |
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| 129 | 129 | | (d) After the expiration of the period in subsection (b) of this section, the following rules 12 |
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| 130 | 130 | | shall apply: 13 |
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| 131 | 131 | | (1) If only one cotenant elects to buy all the interests of the cotenants that requested 14 |
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| 132 | 132 | | partition by sale, the court shall notify all the parties of that fact. 15 |
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| 133 | 133 | | (2) If more than one cotenant elects to buy all the interests of the cotenants that requested 16 |
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| 134 | 134 | | partition by sale, the court shall allocate the right to buy those interests among the electing cotenants 17 |
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| 135 | 135 | | based on each electing cotenant’s existing fractional ownership of the entire parcel divided by the 18 |
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| 136 | 136 | | total existing fractional ownership of all cotenants electing to buy and send notice to all the parties 19 |
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| 137 | 137 | | of that fact and of the price to be paid by each electing cotenant. 20 |
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| 138 | 138 | | (3) If no cotenant elects to buy all the interests of the cotenants that requested partition by 21 |
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| 139 | 139 | | sale, the court shall send notice to all the parties of that fact and resolve the action to partition real 22 |
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| 140 | 140 | | property under §§ 34-15.1-8(a) and (b). 23 |
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| 141 | 141 | | (e) If the court sends notice to the parties under subsections (d)(1) or (d)(2) of this section, 24 |
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| 142 | 142 | | the court shall set a date, not sooner than sixty (60) days after the date the notice was sent, by which 25 |
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| 143 | 143 | | electing cotenants shall pay their apportioned price to the court. After this date, all of the following 26 |
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| 144 | 144 | | rules shall apply: 27 |
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| 145 | 145 | | (1) If all electing cotenants timely pay their apportioned price to the court, the court shall 28 |
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| 146 | 146 | | issue an order reallocating all the interests of the cotenants and disburse the amounts held by the 29 |
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| 147 | 147 | | court to the person entitled to them; 30 |
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| 148 | 148 | | (2) If no cotenant timely pays the price apportioned to the cotenant, the court shall resolve 31 |
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| 149 | 149 | | the action to partition real property under §§ 34-15.1-8(a) and (b) as if the interests of the cotenants 32 |
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| 150 | 150 | | that requested partition by sale were not purchased; and 33 |
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| 151 | 151 | | (3) If one or more but not all of the electing cotenants fail to pay the apportioned price on 34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC001947 - Page 5 of 9 |
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| 155 | 155 | | time, the court, on motion, shall give notice to the electing cotenants that paid the apportioned price 1 |
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| 156 | 156 | | of the interest remaining and the price for all the interest. 2 |
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| 157 | 157 | | (f) Not later than twenty (20) days after the court gives notice under subsection (e)(3) of 3 |
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| 158 | 158 | | this section, any cotenant that paid the price apportioned to the cotenant may elect to purchase all 4 |
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| 159 | 159 | | of the remaining interest by paying the entire price for the remaining interest to the court. After the 5 |
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| 160 | 160 | | twenty (20) day period, the following rules shall apply: 6 |
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| 161 | 161 | | (1) If only one cotenant pays the entire price for the remaining interest, the court shall issue 7 |
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| 162 | 162 | | an order reallocating the remaining interest to that cotenant. The court shall promptly issue an order 8 |
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| 163 | 163 | | reallocating the interests of all of the cotenants and disburse the amounts held by the court to the 9 |
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| 164 | 164 | | persons entitled to them; 10 |
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| 165 | 165 | | (2) If no cotenant pays the entire price for the remaining interest, the court shall resolve the 11 |
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| 166 | 166 | | action to partition real property under §§ 34-15.1-8(a) and (b) as if the interests of the cotenants 12 |
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| 167 | 167 | | that requested partition by sale were not purchased; and 13 |
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| 168 | 168 | | (3) If more than one cotenant pays the entire price for the remaining interest, the court shall 14 |
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| 169 | 169 | | reapportion the remaining interest among the paying cotenants, based on each paying the cotenant’s 15 |
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| 170 | 170 | | original fractional ownership of the entire parcel divided by the total original fractional ownership 16 |
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| 171 | 171 | | of all cotenants that paid the entire price for the remaining interest. The court shall promptly issue 17 |
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| 172 | 172 | | an order reallocating all of the cotenants’ interests, disburse the amounts held by the court to the 18 |
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| 173 | 173 | | persons entitled to them, and promptly refund any excess payment held by the court. 19 |
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| 174 | 174 | | (g) Not later than forty-five (45) days after the court sends notice to the parties, a cotenant 20 |
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| 175 | 175 | | entitled to buy an interest under this section may request that the court authorize the sale as part of 21 |
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| 176 | 176 | | the pending action of the interests of cotenants named as defendants and served with the complaint 22 |
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| 177 | 177 | | but that did not appear in the action. 23 |
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| 178 | 178 | | (h) If the court receives a timely request under subsection (g) of this section, the court, after 24 |
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| 179 | 179 | | a hearing, may deny the request or authorize the requested additional sale on those terms as the 25 |
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| 180 | 180 | | court determines are fair and reasonable, subject to both of the following limitations: 26 |
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| 181 | 181 | | (1) A sale authorized under this subsection may occur only after the purchase prices for all 27 |
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| 182 | 182 | | interests subject to sale under subsections (a) through (f) of this section have been paid to the court 28 |
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| 183 | 183 | | and those interests have been reallocated among the cotenants; and 29 |
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| 184 | 184 | | (2) The purchase price for the interest of a cotenant that did not appear is based on the 30 |
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| 185 | 185 | | court’s determination of value under § 34-15.1-6. 31 |
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| 186 | 186 | | 34-15.1-8. Partition alternatives. 32 |
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| 187 | 187 | | (a) If all the interests of all cotenants that requested partition by sale are not purchased by 33 |
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| 188 | 188 | | 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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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | LC001947 - Page 6 of 9 |
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| 192 | 192 | | remains that has requested partition in kind, the court shall order partition in kind unless the court, 1 |
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| 193 | 193 | | after consideration of the factors listed in §34-15.1-9, finds that partition in kind will result in great 2 |
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| 194 | 194 | | prejudice to the cotenants as a group. In considering whether to order partition in kind, the court 3 |
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| 195 | 195 | | shall approve a request by two (2) or more parties to have the requesting parties’ individual interests 4 |
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| 196 | 196 | | aggregated. 5 |
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| 197 | 197 | | (b) If the court does not order partition in kind under subsection (a) of this section, the court 6 |
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| 198 | 198 | | shall order partition by sale under § 34-15.1-10, or, if no cotenant requested partition by sale, the 7 |
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| 199 | 199 | | court shall dismiss the action. 8 |
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| 200 | 200 | | (c) If the court orders partition in kind under subsection (a) of this section, the court may 9 |
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| 201 | 201 | | require that one or more cotenants pay one or more other cotenants in order that the payments, 10 |
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| 202 | 202 | | taken together with the value of the in-kind distributions to the cotenants, will make the partition 11 |
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| 203 | 203 | | in kind just and proportionate in value to the fractional interests held. 12 |
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| 204 | 204 | | (d) If the court orders partition in kind, the court shall allocate to the cotenants who are 13 |
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| 205 | 205 | | unknown, cannot be located, or are the subject of a default judgment, if the cotenant’s interests 14 |
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| 206 | 206 | | were not represented under § 34-15.1-7, a part of the property representing the combined interests 15 |
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| 207 | 207 | | of these cotenants as determined by the court, and this part of the property shall remain undivided. 16 |
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| 208 | 208 | | 34-15.1-9. Consideration for partition in kind. 17 |
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| 209 | 209 | | (a) In determining whether partition in kind would result in great prejudice to the cotenants 18 |
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| 210 | 210 | | as a group under § 34-15.1-8, the court shall consider all of the following: 19 |
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| 211 | 211 | | (1) Whether it is practicable to divide the heirs' property among the cotenants; 20 |
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| 212 | 212 | | (2) Whether partition in kind would apportion the property in a way that the aggregate fair 21 |
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| 213 | 213 | | market value of the parcels resulting from the division would be materially less than the value of 22 |
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| 214 | 214 | | the property if it were sold as a whole, considering the condition under which a court-ordered sale 23 |
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| 215 | 215 | | would likely occur; 24 |
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| 216 | 216 | | (3) Evidence of the collective duration of ownership or possession of the property by a 25 |
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| 217 | 217 | | cotenant and one or more predecessors in title or predecessors in possession to the cotenant who 26 |
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| 218 | 218 | | are or were relatives of the cotenant or each other; 27 |
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| 219 | 219 | | (4) A cotenant’s sentimental attachment to the property, including any attachment arising 28 |
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| 220 | 220 | | because the property has ancestral or other unique or special value to the cotenant; 29 |
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| 221 | 221 | | (5) The lawful use being made of the property by a cotenant and the degree to which the 30 |
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| 222 | 222 | | cotenant would be harmed if the cotenant could not continue the same use of the property; 31 |
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| 223 | 223 | | (6) The degree to which the cotenants have contributed their pro rata share of the property 32 |
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| 224 | 224 | | taxes, insurance, and other expenses associated with maintaining ownership of the property or have 33 |
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| 225 | 225 | | contributed to the physical improvement, maintenance, or upkeep of the property; and 34 |
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| 226 | 226 | | |
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| 227 | 227 | | |
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| 228 | 228 | | LC001947 - Page 7 of 9 |
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| 229 | 229 | | (7) Any other relevant factor(s). 1 |
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| 230 | 230 | | (b) The court shall not consider any one factor in subsection (a) of this section to be 2 |
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| 231 | 231 | | dispositive without weighing the totality of all relevant factors and circumstances. 3 |
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| 232 | 232 | | 34-15.1-10. Open market sale, sealed bids or auction. 4 |
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| 233 | 233 | | (a) If the court orders a sale of heirs' property, the sale shall be an open-market sale unless 5 |
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| 234 | 234 | | the court finds that a sale by sealed bids or an auction would be more economically advantageous 6 |
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| 235 | 235 | | and in the best interest of the cotenants as a group. 7 |
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| 236 | 236 | | (b) If the court orders an open-market sale and the parties, not later than ten (10) days after 8 |
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| 237 | 237 | | the entry of the order, agree on a real estate broker licensed in this state to offer the property for 9 |
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| 238 | 238 | | sale, the court shall appoint the real estate broker and establish a reasonable commission. If the 10 |
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| 239 | 239 | | parties do not agree on a real estate broker, the court shall appoint a disinterested real estate broker 11 |
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| 240 | 240 | | licensed in this state to offer the property for sale and shall establish a reasonable commission. The 12 |
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| 241 | 241 | | real estate broker shall offer the property for sale in a commercially reasonable manner at a price 13 |
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| 242 | 242 | | no lower than the determination of value and on the terms and conditions established by the court. 14 |
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| 243 | 243 | | (c) If the real estate broker appointed under subsection (b) of this section obtains, within a 15 |
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| 244 | 244 | | reasonable time, an offer to purchase the property for not less than the determination of value, the 16 |
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| 245 | 245 | | real estate broker shall comply with the reporting requirements in § 34-15.1-11 and the sale may 17 |
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| 246 | 246 | | be completed in accordance with the requirements of state law other than this chapter. 18 |
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| 247 | 247 | | (d) If the real estate broker appointed under subsection (b) of this section does not obtain, 19 |
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| 248 | 248 | | within a reasonable time, an offer to purchase the property for not less than the determination of 20 |
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| 249 | 249 | | value, the court, after a hearing, may do any of the following: 21 |
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| 250 | 250 | | (1) Approve the highest outstanding offer, if any; 22 |
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| 251 | 251 | | (2) Redetermine the value of the property and order that the property continue to be offered 23 |
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| 252 | 252 | | for an additional time; 24 |
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| 253 | 253 | | (3) Order that the property be sold by sealed bids or at an auction. 25 |
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| 254 | 254 | | (e) If the court orders a sale by sealed bids or an auction, the court shall set the terms and 26 |
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| 255 | 255 | | conditions of the sale. 27 |
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| 256 | 256 | | (f) If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled 28 |
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| 257 | 257 | | to a credit against the price in an amount equal to the purchaser’s share of the proceeds. 29 |
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| 258 | 258 | | 34-15.1-11. Report of open-market sale. 30 |
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| 259 | 259 | | (a) Unless required to do so within a shorter time, a real estate broker appointed under § 31 |
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| 260 | 260 | | 34-15.1-10(b) to offer heirs' property for open-market sale shall file a report with the court not later 32 |
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| 261 | 261 | | than seven (7) days after receiving an offer to purchase the property for not less than the value 33 |
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| 262 | 262 | | determined under § 34-15.1-6. 34 |
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| 263 | 263 | | |
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| 264 | 264 | | |
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| 265 | 265 | | LC001947 - Page 8 of 9 |
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| 266 | 266 | | (b) The report required by subsection (a) of this section shall contain all of the following 1 |
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| 267 | 267 | | information: 2 |
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| 268 | 268 | | (1) A description of the property to be sold to each buyer; 3 |
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| 269 | 269 | | (2) The name of each buyer; 4 |
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| 270 | 270 | | (3) The proposed purchase price; 5 |
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| 271 | 271 | | (4) The terms and conditions of the proposed sale, including the terms of any owner 6 |
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| 272 | 272 | | financing; 7 |
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| 273 | 273 | | (5) The amounts to be paid to lienholders; 8 |
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| 274 | 274 | | (6) A statement of contractual or other arrangements or conditions of the broker’s 9 |
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| 275 | 275 | | commission; and 10 |
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| 276 | 276 | | (7) Other material facts relevant to the sale. 11 |
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| 277 | 277 | | 34-15.1-12. Uniformity of application and construction. 12 |
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| 278 | 278 | | In applying and construing this chapter, consideration shall be given to the need to promote 13 |
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| 279 | 279 | | uniformity of the law with respect to its subject matter among states that enact the uniform partition 14 |
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| 280 | 280 | | of heirs' property act. 15 |
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| 281 | 281 | | 34-15.1-13. Relation to electronic signatures in Global and National Commerce Act. 16 |
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| 282 | 282 | | This chapter modifies, limits, or supersedes the federal Electronic Signatures in Global and 17 |
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| 283 | 283 | | National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede § 18 |
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| 284 | 284 | | 7001(c), or authorize electronic delivery of any of the notices described in § 7003(b). 19 |
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| 285 | 285 | | SECTION 2. This act shall take effect on January 1, 2026. 20 |
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| 286 | 286 | | ======== |
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| 287 | 287 | | LC001947 |
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| 288 | 288 | | ======== |
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| 289 | 289 | | |
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| 290 | 290 | | |
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| 291 | 291 | | LC001947 - Page 9 of 9 |
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| 292 | 292 | | EXPLANATION |
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| 293 | 293 | | BY THE LEGISLATIVE COUNCIL |
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| 294 | 294 | | OF |
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| 295 | 295 | | A N A C T |
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| 296 | 296 | | RELATING TO PROPERTY -- UNIFORM PARTITION OF HEIRS' PROPERTY ACT |
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| 297 | 297 | | *** |
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| 298 | 298 | | This act would enact processes to partition heirs' property, which often refers to real 1 |
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| 299 | 299 | | property that is owned by multiple relatives (co-tenants) who have inherited the property's title and 2 |
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| 300 | 300 | | that does not have a written agreement on how to divide the property. Under the act, if a cotenant 3 |
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| 301 | 301 | | sought to partition the property, the court would have to notify all other co-tenants and allow them 4 |
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| 302 | 302 | | to buy out the interest of the co-tenant wishing to sell. The act would require the court to determine 5 |
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| 303 | 303 | | the fair market value of the property and specify how to do so. Also, under certain conditions, such 6 |
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| 304 | 304 | | as if a buyout did not occur, the court could require co-tenants to divide the property into physically 7 |
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| 305 | 305 | | distinct and separately titled parcels. If the court ordered a sale of the property and the co-tenants 8 |
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| 306 | 306 | | agreed, the court would have to hire a real estate broker for the sale of a property and require that 9 |
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| 307 | 307 | | broker to file a report containing information on offers for the property. 10 |
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| 308 | 308 | | This act would take effect on January 1, 2026. 11 |
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| 310 | 310 | | LC001947 |
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