Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0726 Compare Versions

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99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2025
1212 ____________
1313
1414 A N A C T
1515 RELATING TO PROPERTY -- PARTITION
1616 Introduced By: Senators McKenney, Burke, Appollonio, and Euer
1717 Date Introduced: March 07, 2025
1818 Referred To: Senate Judiciary
1919
2020
2121 It is enacted by the General Assembly as follows:
2222 SECTION 1. Sections 34-15-1, 34-15-7 and 34-15-16 of the General Laws in Chapter 34-1
2323 15 entitled "Partition" are hereby amended to read as follows: 2
2424 34-15-1. Cotenants of estates of inheritance. 3
2525 (a) All joint tenants, coparceners, and tenants in common, who now are or hereafter may 4
2626 be actually seised seized or possessed of any estate of inheritance in any lands, tenements or 5
2727 hereditaments, whether in their own right or as receiver appointed by any state or federal court, or 6
2828 as trustee in bankruptcy, may be compelled to make partition between them of those lands, 7
2929 tenements, and hereditaments by civil action. 8
3030 (b) In an action for partition of real estate, the court shall make a determination if the parcel 9
3131 of real property is heirs property, as defined in § 34-3-4. If the court determines that the real 10
3232 property is heirs property, then the court shall proceed in accordance with §§ 34-15-7 and 34-15-11
3333 16. 12
3434 34-15-7. Notice to absent or unknown parties. 13
3535 (a) In actions for partition of real estate, in which it may be alleged or may appear that any 14
3636 party or person interested therein, not a party plaintiff, is not a resident of the state, or where it is 15
3737 alleged or may appear that any person interested has left the state and it is not known where that 16
3838 person is or whether alive or dead, and, if dead, whether that person has left children, or whether 17
3939 some person unknown to the plaintiff is interested therein, the court before whom the action is 18
4040 pending may order notice to be given to any such party or person, by ordering a copy of its order 19
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4444 to be published in some newspaper published in this state for such length of time as it may deem 1
4545 proper, and may also, in its discretion, order letters, postpaid and directed to the party or person, to 2
4646 be deposited in the post office; and where notice is given as ordered by the court, it may proceed 3
4747 and render judgment in the action in the same manner and with the same effect as if the party or 4
4848 person had received actual or personal notice or had appeared and answered to the action. 5
4949 (b) In actions for partition of real estate where a court has made the determination that the 6
5050 real property in question is heirs property, and the plaintiff seeks notice by publication, then the 7
5151 plaintiff, not later than ten (10) days after the court’s determination, shall post and maintain while 8
5252 the action is pending a conspicuous sign on the property that is the subject of the action. The sign 9
5353 shall state that the action has commenced and identify the name and address of the court and the 10
5454 common designation by which the property is known. The court may require the plaintiff to publish 11
5555 on the sign the name of the plaintiff and the known defendants. 12
5656 34-15-16. Order of sale. 13
5757 (a) In an action for partition for real property that is not considered heirs property, the 14
5858 superior court may, in its discretion, upon motion of any party to the action, order the whole 15
5959 premises sought to be divided, or any particular lot, portion, or tract thereof or the interest of the 16
6060 plaintiff or plaintiffs or of the defendant or defendants in the whole premises, or in any particular 17
6161 lot, portion, or tract thereof, to be sold, either at public auction or by private contract, under the 18
6262 direction of the court, by the commissioner or commissioners appointed to divide or sell the same; 19
6363 provided, that if the sale is made by private contract, it shall not be made for less than the sum fixed 20
6464 by the court in its decree authorizing the sale by private contract. 21
6565 (b) In an action to partition real property where the court has determined that the property 22
6666 is heirs property, the court shall proceed in accordance with the provisions of this section. 23
6767 (1) Except as otherwise provided in subsections (b)(2) and (b)(3) of this section, if the court 24
6868 determines that the property that is the subject of a partition action is heirs property, the court shall 25
6969 determine the fair market value of the property by ordering an appraisal pursuant to subsection 26
7070 (b)(4) of this section. 27
7171 (2) If all cotenants have agreed to the value of the property or to another method of 28
7272 valuation, the court shall adopt that value or the value produced by the agreed method of valuation. 29
7373 (3) If the court determines that the evidentiary value of an appraisal is outweighed by the 30
7474 cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value 31
7575 of the property and send notice to the parties of the value. 32
7676 (4) If the court orders an appraisal, the court shall appoint a disinterested real estate 33
7777 appraiser licensed in this state to determine the fair market value of the property assuming sole 34
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8181 ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn 1
8282 or verified appraisal with the court. 2
8383 (5) If an appraisal is conducted pursuant to subsection (b)(4) of this section, not later than 3
8484 ten (10) days after the appraisal is filed, the court shall send notice to each party with a known 4
8585 address, stating: 5
8686 (i) The appraised fair market value of the property; 6
8787 (ii) That the appraisal is available at the clerk’s office; and 7
8888 (iii) That a party may file with the court an objection to the appraisal not later than thirty 8
8989 (30) days after the notice is sent, stating the grounds for the objection. 9
9090 (6) If an appraisal is filed with the court pursuant to subsection (b)(4) of this section, the 10
9191 court shall conduct a hearing to determine the fair market value of the property not sooner than 11
9292 thirty (30) days after a copy of the notice of the appraisal is sent to each party under subsection 12
9393 (b)(5) of this section, whether or not an objection to the appraisal is filed under subsection (b)(5)(iii) 13
9494 of this section. In addition to the court-ordered appraisal, the court may consider any other evidence 14
9595 of value offered by a party. 15
9696 (7) After a hearing under subsection (b)(6) of this section, but before considering the merits 16
9797 of the partition action, the court shall determine the fair market value of the property and send 17
9898 notice to the parties of the value. 18
9999 (c) If any cotenant requested partition by sale, after the determination of value under 19
100100 subsection (b) of this section, the court shall send notice to the parties that any cotenant except a 20
101101 cotenant that requested partition by sale may buy all the interests of the cotenants that requested 21
102102 partition by sale. 22
103103 (1) Not later than forty-five (45) days after the notice is sent under this section, any 23
104104 cotenant, except a cotenant that requested partition by sale, may give notice to the court that it elects 24
105105 to buy all the interests of the cotenants that requested partition by sale. 25
106106 (2) The purchase price for each of the interests of a cotenant that requested partition by sale 26
107107 is the value of the entire parcel determined under subsection (b) of this section, multiplied by the 27
108108 cotenant’s fractional ownership of the entire parcel. 28
109109 (3) After expiration of the period in subsection (c)(1) of this section, the following rules 29
110110 apply: 30
111111 (i) If only one cotenant elects to buy all the interests of the cotenants that requested partition 31
112112 by sale, the court shall notify all the parties of that fact. 32
113113 (ii) If more than one cotenant elects to buy all the interests of the cotenants that requested 33
114114 partition by sale, the court shall allocate the right to buy those interests among the electing cotenants 34
115115
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118118 based on each electing cotenant’s existing fractional ownership of the entire parcel divided by the 1
119119 total existing fractional ownership of all cotenants electing to buy and send notice to all the parties 2
120120 of that fact and of the price to be paid by each electing cotenant. 3
121121 (iii) If no cotenant elects to buy all the interests of the cotenants that requested partition by 4
122122 sale, the court shall send notice to all the parties of that fact and resolve the partition action under 5
123123 subsection (d) of this section. 6
124124 (4) If the court sends notice to the parties under subsections (c)(3)(i) or (c)(3)(ii) of this 7
125125 section, the court shall set a date, not sooner than sixty (60) days after the date the notice was sent, 8
126126 by which electing cotenants shall pay their apportioned price into the court. After this date, the 9
127127 following rules apply: 10
128128 (i) If all electing cotenants timely pay their apportioned price into court, the court shall 11
129129 issue an order reallocating all the interests of the cotenants and disburse the amounts held by the 12
130130 court to the persons entitled to them. 13
131131 (ii) If no electing cotenant timely pays its apportioned price, the court shall resolve the 14
132132 partition action under subsection (d) of this section, as if the interests of the cotenants that requested 15
133133 partition by sale were not purchased. 16
134134 (iii) If one or more but not all of the electing cotenants fail to pay their apportioned price 17
135135 on time, the court shall give notice to the electing cotenants that paid their apportioned price of the 18
136136 interest remaining and the price for all that interest. 19
137137 (5) Not later than twenty (20) days after the court gives notice pursuant to subsection 20
138138 (c)(4)(iii) of this section, any cotenant that paid may elect to purchase all of the remaining interest 21
139139 by paying the entire price into the court. After the twenty (20) day period, the following rules apply: 22
140140 (i) If only one cotenant pays the entire price for the remaining interest, the court shall issue 23
141141 an order reallocating the remaining interest to that cotenant. The court shall issue promptly an order 24
142142 reallocating the interests of all of the cotenants and disburse the amounts held by it to the persons 25
143143 entitled to them. 26
144144 (ii) If no cotenant pays the entire price for the remaining interest, the court shall resolve 27
145145 the partition action under subsection (d) of this section, as if the interests of the cotenants that 28
146146 requested partition by sale were not purchased. 29
147147 (iii) If more than one cotenant pays the entire price for the remaining interest, the court 30
148148 shall reapportion the remaining interest among those paying cotenants, based on each paying 31
149149 cotenant’s original fractional ownership of the entire parcel divided by the total original fractional 32
150150 ownership of all cotenants that paid the entire price for the remaining interest. The court shall issue 33
151151 promptly an order reallocating all of the cotenants’ interests, disburse the amounts held by it to the 34
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155155 persons entitled to them, and promptly refund any excess payment held by the court. 1
156156 (6) Not later than forty-five (45) days after the court sends notice to the parties pursuant to 2
157157 this section, any cotenant entitled to buy an interest under this section may request the court to 3
158158 authorize the sale as part of the pending action of the interests of cotenants named as defendants 4
159159 and served with the complaint but that did not appear in the action. 5
160160 (7) If the court receives a timely request under subsection (c)(6) of this section, the court, 6
161161 after hearing, may deny the request or authorize the requested additional sale on such terms as the 7
162162 court determines are fair and reasonable, subject to the following limitations: 8
163163 (i) A sale authorized under this section may occur only after the purchase prices for all 9
164164 interests subject to sale under subsections (c)(1) through (c)(5) of this section have been paid into 10
165165 court and those interests have been reallocated among the cotenants as provided in those 11
166166 subsections; and 12
167167 (ii) The purchase price for the interest of a non-appearing cotenant is based on the court’s 13
168168 determination of value under subsection (b) of this section. 14
169169 (d) In an action to partition real property where the court has determined that the property 15
170170 is heirs property and in an action where all the interests of all cotenants that requested partition by 16
171171 sale are not purchased by other cotenants pursuant to subsection (c) of this section, or if after 17
172172 conclusion of the buyout under subsection (c) of this section, a cotenant remains that has requested 18
173173 partition in kind, the court shall order partition in kind unless the court, after consideration of the 19
174174 factors listed in subsection (e) of this section, finds that partition in kind will result in manifest 20
175175 prejudice to the cotenants as a group. In considering whether to order partition in kind, the court 21
176176 shall approve a request by two (2) or more parties to have their individual interests aggregated. If 22
177177 the court does not order partition in kind under this section, the court shall order partition by sale 23
178178 pursuant to subsection (f) of this section, or, if no cotenant requested partition by sale, the court 24
179179 shall dismiss the action. If the court orders partition in kind pursuant to this section, the court may 25
180180 require that one or more cotenants pay one or more other cotenants amounts so that the payments, 26
181181 taken together with the value of the in-kind distributions to the cotenants, will make the partition 27
182182 in kind just and proportionate in value to the fractional interests held. If the court orders partition 28
183183 in kind, the court shall allocate to the cotenants that are unknown, unlocatable, or the subject of a 29
184184 default judgment, if their interests were not bought out pursuant to subsection (c) of this section, a 30
185185 part of the property representing the combined interests of these cotenants as determined by the 31
186186 court and this part of the property shall remain undivided. 32
187187 (e) In determining under subsection (d) of this section, whether partition in kind would 33
188188 result in manifest prejudice to the cotenants as a group, the court shall consider the following factors 34
189189
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192192 but shall not consider any one factor to be dispositive without weighing the totality of all relevant 1
193193 factors and circumstances: 2
194194 (1) Whether the heirs property practicably can be divided among the cotenants; 3
195195 (2) Whether partition in kind would apportion the property in such a way that the aggregate 4
196196 fair market value of the parcels resulting from the division would be materially less than the value 5
197197 of the property if it were sold as a whole, taking into account the condition under which a court-6
198198 ordered sale likely would occur; 7
199199 (3) Evidence of the collective duration of ownership or possession of the property by a 8
200200 cotenant and one or more predecessors in title or predecessors in possession to the cotenant who 9
201201 are or were relatives of the cotenant or each other; 10
202202 (4) Cotenant’s sentimental attachment to the property, including any attachment arising 11
203203 because the property has ancestral or other unique or special value to the cotenant; 12
204204 (5) The lawful use being made of the property by a cotenant and the degree to which the 13
205205 cotenant would be harmed if the cotenant could not continue the same use of the property; 14
206206 (6) The degree to which the cotenants have contributed their pro rata share of the property 15
207207 taxes, insurance, and other expenses associated with maintaining ownership of the property or have 16
208208 contributed to the physical improvement, maintenance, or upkeep of the property; and 17
209209 (7) Any other relevant factor. 18
210210 (f) The following shall control for the partition of heirs property by partition by sale. 19
211211 (1) If the court orders a sale of heirs property, the sale shall be an open-market sale unless 20
212212 the court finds that a sale by sealed bids or an auction would be more economically advantageous 21
213213 and in the best interest of the cotenants as a group. 22
214214 (2) If the court orders an open-market sale and the parties, not later than ten (10) days after 23
215215 the entry of the order, agree on a real estate broker licensed in this state to offer the property for 24
216216 sale, the court shall appoint the broker and establish a reasonable commission. If the parties do not 25
217217 agree on a broker, the court shall appoint a disinterested real estate broker licensed in this state to 26
218218 offer the property for sale and shall establish a reasonable commission. The broker shall offer the 27
219219 property for sale in a commercially reasonable manner at a price no lower than the determination 28
220220 of value and on the terms and conditions established by the court. 29
221221 (3) If the broker appointed under subsection (f)(2) of this section, obtains within a 30
222222 reasonable time an offer to purchase the property for at least the determination of value: 31
223223 (i) The broker shall comply with the reporting requirements in subsection (g) of this 32
224224 section; and 33
225225 (ii) The sale may be completed in accordance with state law other than this section. 34
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229229 (4) If the broker appointed under subsection (f)(2) of this section does not obtain within a 1
230230 reasonable time an offer to purchase the property for at least the determination of value, the court, 2
231231 after hearing, may: 3
232232 (i) Approve the highest outstanding offer, if any; 4
233233 (ii) Redetermine the value of the property and order that the property continue to be offered 5
234234 for an additional time; or 6
235235 (iii) Order that the property be sold by sealed bids or at an auction. 7
236236 (5) If the court orders a sale by sealed bids or an auction, the court shall set terms and 8
237237 conditions of the sale. If the court orders an auction, the auction shall be conducted under subsection 9
238238 (a) of this section. 10
239239 (6) If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled 11
240240 to a credit against the price in an amount equal to the purchaser’s share of the proceeds. 12
241241 (g) A broker appointed under subsection (f)(2) of this section, to offer heirs property for 13
242242 open-market sale shall file a report with the court not later than seven (7) days after receiving an 14
243243 offer to purchase the property for at least the value determined under subsections (b) or (f) of this 15
244244 section. This report shall contain the following information: 16
245245 (1) A description of the property to be sold to each buyer; 17
246246 (2) The name of each buyer; 18
247247 (3) The proposed purchase price; 19
248248 (4) The terms and conditions of the proposed sale, including the terms of any owner 20
249249 financing; 21
250250 (5) The amounts to be paid to lienholders; 22
251251 (6) A statement of contractual or other arrangements or conditions of the broker’s 23
252252 commission; and 24
253253 (7) Other material facts relevant to the sale. 25
254254 (h) The provisions of this chapter, modifies, limits, and supersedes the Electronic 26
255255 Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, 27
256256 limit, or supersede Section 101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery 28
257257 of any of the notices described in Section 103(b) of that act, 15 U.S.C. § 7003(b). 29
258258 SECTION 2. Chapter 34-3 of the General Laws entitled "Tenancy in Common" is hereby 30
259259 amended by adding thereto the following section: 31
260260 34-3-4. Definitions. 32
261261 As used in this title, unless the context otherwise requires: 33
262262 (1) “Ascendant” means an individual who precedes another individual in lineage, in the 34
263263
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266266 direct line of ascent from the other individual. 1
267267 (2) “Collateral” means an individual who is related to another individual under the law of 2
268268 intestate succession of this state but who is not the other individual’s ascendant or descendant. 3
269269 (3) “Descendant” means an individual who follows another individual in lineage, in the 4
270270 direct line of descent from the other individual. 5
271271 (4) “Determination of value” means a court order determining the fair market value of heirs 6
272272 property under § 34-15-16 or adopting the valuation of the property agreed to by all cotenants. 7
273273 (5) “Heirs property” means real property held in tenancy in common which satisfies all of 8
274274 the following requirements as of the filing of a partition action: 9
275275 (i) There is no agreement in a record binding all the cotenants which governs the partition 10
276276 of the property; 11
277277 (ii) One or more of the cotenants acquired title from a relative, whether living or deceased; 12
278278 and 13
279279 (iii) Any of the following applies: 14
280280 (A) Twenty percent (20%) or more of the interests are held by cotenants who a relatives; 15
281281 (B) Twenty percent (20%) or more of the interests are held by an individual who acquired 16
282282 title from a relative, whether living or deceased; or 17
283283 (C) Twenty percent (20%) or more of the cotenants are relatives. 18
284284 (6) “Partition by sale” means a court-ordered sale of the entire heirs property, whether by 19
285285 auction, sealed bids, or open-market sale conducted under § 34-15-16. 20
286286 (7) “Partition in kind” means the division of heirs property into physically distinct and 21
287287 separately titled parcels. 22
288288 (8) “Record” means information that is inscribed on a tangible medium or that is stored in 23
289289 an electronic or other medium and is retrievable in perceivable form. 24
290290 (9) “Relative” means an ascendant, descendant, or collateral or an individual otherwise 25
291291 related to another individual by blood, marriage, adoption, or law of this state other than this 26
292292 section. 27
293293 SECTION 3. This act shall take effect upon passage. 28
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300300 EXPLANATION
301301 BY THE LEGISLATIVE COUNCIL
302302 OF
303303 A N A C T
304304 RELATING TO PROPERTY -- PARTITION
305305 ***
306306 This act would create a cause of action for partition of heirs property held in tenancy in 1
307307 common. 2
308308 This act would take effect upon passage. 3
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