PRINTER'S NO. 2986
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2232
Session of
2024
INTRODUCED BY RABB, N. NELSON, SANCHEZ, MADDEN, HILL-EVANS,
McNEILL, KINKEAD AND PARKER, APRIL 24, 2024
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
APRIL 24, 2024
AN ACT
Amending Title 20 (Decedents, Estates and Fiduciaries) of the
Pennsylvania Consolidated Statutes, providing for uniform
partition of heirs property.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 20 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 21A
UNIFORM PARTITION OF HEIRS PROPERTY ACT
21A21. Short title of chapter.
21A22. Definitions.
21A23. Applicability and relation to other law.
21A24. Service and notice by posting.
21A25. Hearing officers.
21A26. Determination of value.
21A27. Cotenant buyout.
21A28. Partition alternatives.
21A29. Considerations for partition in kind.
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21A30. Open-market sale, sealed bids or auction.
21A31. Report of open-market sale.
21A32. Uniformity of application and construction.
21A33. Relation to Electronic Signature in Global and National
Commerce Act.
§ 21A21. Short title of chapter.
This chapter may be referred to as the Uniform Partition of
Heirs Property Act.
§ 21A22. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Ascendant." An individual who precedes another individual
in lineage, in the direct line of ascent from the other
individual.
"Collateral." An individual who is related to another
individual under the law of intestate succession of this
Commonwealth but who is not the other individual's ascendant or
descendant.
"Descendant." An individual who follows another individual
in lineage, in the direct line of descent from the other
individual.
"Determination of value." A court order determining the fair
market value of heirs property under section 21A26 (relating to
determination of value) or 21A30 (relating to open-market sale,
sealed bids or auction) or adopting the valuation of the
property agreed to by all cotenants.
"Heirs property." Real property held in tenancy in common
which satisfies all of the following requirements as of the
filing of a partition action:
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(1) There is no agreement in a record binding all the
cotenants which governs the partition of the property.
(2) One or more of the cotenants acquired the title from
a relative, whether living or deceased.
(3) Any of the following applies:
(i) twenty percent or more of the interests are held
by cotenants who are relatives;
(ii) twenty percent or more of the interests are
held by an individual who acquired title from a relative,
whether living or deceased; or
(iii) twenty percent or more of the cotenants are
relatives.
"Partition by sale." A court-ordered sale of the entire
heirs property, whether by auction, sealed bids or open-market
sale conducted under section 21A30.
"Partition in kind." The division of heirs property into
physically separated titled parcels.
"Record." Information that is inscribed on a tangible medium
or that is stored in an electronic or other medium and is
retrievable in perceivable form.
"Relative." An ascendant, descendant or collateral or an
individual otherwise related to another individual by blood,
marriage, adoption or law of this Commonwealth other than this
chapter.
§ 21A23. Applicability and relation to other law.
(a) General rule.--This chapter applies to partition actions
filed on or after the effective date of this section.
(b) Determination.--In an action to partition real property,
the court shall determine whether the property is heirs
property. If the court determines that the property is heirs
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property, the property must be partitioned under this chapter
unless all the cotenants otherwise agree in a record.
(c) Supplementation.--This chapter supplements section 3534
(relating to distribution in kind) and, if an action is governed
by this chapter, it replaces the provisions of section 3534 that
are inconsistent with this chapter.
§ 21A24. Service and notice by posting.
(a) General rule.--This chapter does not limit or affect the
method by which services of a complaint in a partition action
may be made.
(b) Notice and posting.--If the plaintiff in a partition
action seeks an order of notice by publication and the court
determines that the property may be heirs property, the
plaintiff, not later than 10 days after the court's
determination, shall post and maintain while the action is
pending a conspicuous sign on the property that is the subject
of the action. The sign shall state that the action has
commenced and identify the name and address of the court and the
common designation by which the property is known. The court may
require the plaintiff to publish on the sign the name of the
plaintiff and the known defendants.
§ 21A25. Hearing officers.
If the court appoints hearing officers under Pa.R.C.P. No.
1558 (relating to preliminary conference. appointment of hearing
officer), each hearing officer, in addition to the requirements
and disqualifications applicable to hearing officers, must be
disinterested and impartial and not a party to or a participant
in the action.
§ 21A26. Determination of value.
(a) General rule.--Except as otherwise provided in
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subsections (b) and (c), if the court determines that the
property that is the subject of a partition action is heirs
property, the court shall determine the fair market value of the
property by ordering an appraisal under subsection (d).
(b) Agreement by cotenants.--If all cotenants have agreed to
the value of the property or to another method of valuation, the
court shall adopt that value or the value produced by the agreed
method of valuation.
(c) When determined by court.--If the court determines that
the evidentiary value of an appraisal is outweighed by the cost
of the appraisal, the court, after an evidentiary hearing, shall
determine the fair market value of the property and send notice
to the parties of the value.
(d) Appointment of appraiser.--If the court orders an
appraisal, the court shall appoint a disinterested real estate
appraiser licensed in this Commonwealth to determine the fair
market value of the property assuming sole ownership of the fee
simple estate. On completion of the appraisal, the appraiser
shall file a sworn or verified appraisal with the court.
(e) Notice.--If an appraisal is conducted under subsection
(d), not later than 10 days after the appraisal is filed, the
court shall send notice to each party with a known address,
stating:
(1) The appraised fair market value of the property.
(2) That the appraisal is available at the clerk's
office.
(3) That a party may file with the court an objection to
the appraisal not later than 30 days after the notice is
sent, stating the grounds for the objection.
(f) Hearing.--If an appraisal is filed with the court under
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subsection (d), the court shall conduct a hearing to determine
the fair market value of the property not sooner than 30 days
after a copy of the notice of the appraisal is sent to each
party under subsection (e), whether or not an objection to the
appraisal is filed under subsection (e)(3). In addition to the
court-ordered appraisal, the court may consider any other
evidence of value offered by a party.
(g) Posthearing determination and notice.--After a hearing
under subsection (f), but before considering the merits of the
partition action, the court shall determine the fair market
value of the property and send notice to the parties of the
value.
§ 21A27. Cotenant buyout.
(a) Initial notice to parties.--If a cotenant requested
partition by sale, after the determination of value under
section 21A26 (relating to determination of value), the court
shall send notice to the parties that any cotenant except a
cotenant that requested partition by sale may buy all the
interests of the cotenants that requested partition by sale.
(b) Cotenant notice to court.--Not later than 45 days after
the notice is sent under subsection (a), any cotenant except a
cotenant that requested partition by sale may give notice to the
court that it elects to buy all the interests of the cotenants
that requested partition by sale.
(c) Purchase price.--The purchase price for each of the
interests of a cotenant that requested partition by sale is the
value of the entire parcel determined under section 21A26
multiplied by the cotenant's fractional ownership of the entire
parcel.
(d) Subsequent court notice to parties.--After expiration of
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the period in subsection (b), the following rules apply:
(1) If only one cotenant elects to buy all the interests
of the cotenants that requested partition by sale, the court
shall notify all the parties of that fact.
(2) If more than one cotenant elects to buy all the
interests of the cotenants that requested partition by sale,
the court shall allocate the right to buy those interests
among the electing cotenants based on each electing
cotenant's existing fractional ownership of the entire parcel
divided by the total existing fractional ownership of all
cotenants electing to buy and send notice to all the parties
of that fact and of the price to be paid by each electing
cotenant.
(3) If no cotenant elects to buy all the interests of
the cotenants that requested partition by sale, the court
shall send notice to all the parties of that fact and resolve
the partition action under section 21A28(a) and (b) (relating
to partition alternatives).
(e) Payment and effect.--If the court sends notice to the
parties under subsection (d)(1) or (2), the court shall set a
date, not sooner than 60 days after the date the notice was
sent, by which electing cotenants must pay their apportioned
price into the court. After this date, the following rules
apply:
(1) If all electing cotenants timely pay their
apportioned price into court, the court shall issue an order
reallocating all the interests of the cotenants and disburse
the amounts held by the court to the persons entitled to
them.
(2) If no electing cotenant timely pays its apportioned
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price, the court shall resolve the partition action under
section 21A28(a) and (b) as if the interests of the cotenants
that requested partition by sale were not purchased.
(3) If one or more but not all of the electing cotenants
fail to pay their apportioned price on time, the court shall
give notice to the electing cotenants that paid their
apportioned price of the interest remaining and the price for
all that interest.
(f) Purchase of remaining interest.--Not later than 20 days
after the court gives notice under subsection (e)(3), a cotenant
that paid may elect to purchase all of the remaining interest by
paying the entire price into the court. After the 20-day period,
the following rules apply:
(1) If only one cotenant pays the entire price for the
remaining interest, the court shall issue an order
reallocating the remaining interest to that cotenant. The
court shall issue promptly an order reallocating the
interests of all of the cotenants and disburse the amounts
held by it to the persons entitled to them.
(2) If no cotenant pays the entire price for the
remaining interest, the court shall resolve the partition
action under section 21A28(a) and (b) as if the interests of
the cotenants that requested partition by sale were not
purchased.
(3) If more than one cotenant pays the entire price for
the remaining interest, the court shall reapportion the
remaining interest among those paying cotenants, based on
each paying cotenant's original fractional ownership of the
entire parcel divided by the total original fractional
ownership of all cotenants that paid the entire price for the
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remaining interest. The court shall issue promptly an order
reallocating all of the cotenants' interests, disburse the
amounts held by it to the persons entitled to them and
promptly refund any excess payment held by the court.
(g) Request to authorize sale.--Not later than 45 days after
the court sends notice to the parties under subsection (a), a
cotenant entitled to buy an interest under this section may
request the court to authorize the sale as part of the pending
action of the interests of cotenants named as defendants and
served with the complaint but that did not appear in the action.
(h) Denial of request or authorization of sale.--If the
court receives a timely request under subsection (g), the court,
after hearing, may deny the request or authorize the requested
additional sale on such terms as the court determines are fair
and reasonable, subject to the following limitations:
(1) A sale authorized under this subsection may occur
only after the purchase prices for all interests subject to
sale under subsections (a), (b), (c), (d), (e) and (f) have
been paid into court and those interests have been
reallocated among the cotenants as provided in those
subsections.
(2) The purchase price for the interest of a non-
appearing cotenant is based on the court's determination of
value under section 21A26.
§ 21A28. Partition alternatives.
(a) Partition in kind.--If all the interests of all
cotenants that requested partition by sale are not purchased by
other cotenants under section 21A27 (relating to cotenant
buyout), or if after conclusion of the buyout under section
21A27, a cotenant remains that has requested partition in kind,
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the court shall order partition in kind unless the court, after
consideration of the factors listed in section 21A29 (relating
to considerations for partition in kind), finds that partition
in kind will result in prejudice to the cotenants as a group. In
considering whether to order partition in kind, the court shall
approve a request by two or more parties to have their
individual interests aggregated.
(b) Partition by sale or dismissal of action.--If the court
does not order partition in kind under subsection (a), the court
shall order partition by sale under section 21A30 (relating to
open-market sale, sealed bids or auction) or, if no cotenant
requested partition by sale, the court shall dismiss the action.
(c) Payments.--If the court orders partition in kind under
subsection (a), the court may require that one or more cotenants
pay one or more other cotenants amounts so that the payments,
taken together with the value of the in-kind distributions to
the cotenants, will make the partition in kind just and
proportionate in value to the fractional interests held.
(d) Allocation of interests among unknown, unlocatable or
defaulting cotenants.--If the court orders partition in kind,
the court shall allocate to the cotenants that are unknown,
unlocatable or the subject of a default judgment, if their
interests were not bought out under section 21A27, a part of the
property representing the combined interests of these cotenants
as determined by the court and this part of the property shall
remain undivided.
§ 21A29. Considerations for partition in kind.
(a) General rule.--In determining under section 21A28(a)
(relating to partition alternatives) whether partition in kind
would result in prejudice to the cotenants as a group, the court
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shall consider the following:
(1) whether the heirs property practicably can be
divided among the cotenants;
(2) whether partition in kind would apportion the
property in such a way that the aggregate fair market value
of the parcels resulting from the division would be
materially less than the value of the property if it were
sold as a whole, taking into account the condition under
which a court-ordered sale likely would occur;
(3) evidence of the collective duration of ownership or
possession of the property by a cotenant and one or more
predecessors in title or predecessors in possession to the
cotenant who are or were relatives of the cotenant or each
other;
(4) a cotenant's sentimental attachment to the property,
including any attachment arising because the property has
ancestral or other unique or special value to the cotenant;
(5) the lawful use being made of the property by a
cotenant and the degree to which the cotenant would be harmed
if the cotenant could not continue the same use of the
property;
(6) the degree to which the cotenants have contributed
their pro rata share of the property taxes, insurance and
other expenses associated with maintaining ownership of the
property or have contributed to the physical improvement,
maintenance or upkeep of the property; and
(7) any other relevant factor.
(b) Weighing totality of considerations.--The court may not
consider any one factor in subsection (a) to be dispositive
without weighing the totality of all relevant factors and
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circumstances.
§ 21A30. Open-market sale, sealed bids or auction.
(a) General rule.--If the court orders a sale of heirs
property, the sale must be an open-market sale unless the court
finds that a sale by sealed bids or an auction would be more
economically advantageous and in the best interest of the
cotenants as a group.
(b) Appointment of broker.--If the court orders an open-
market sale and the parties, not later than 10 days after the
entry of the order, agree on a real estate broker licensed in
this Commonwealth to offer the property for sale, the court
shall appoint the broker and establish a reasonable commission.
If the parties do not agree on a broker, the court shall appoint
a disinterested real estate broker licensed in this Commonwealth
to offer the property for sale and shall establish a reasonable
commission. The broker shall offer the property for sale in a
commercially reasonable manner at a price no lower than the
determination of value and on the terms and conditions
established by the court.
(c) Offer to purchase obtained.--If the broker appointed
under subsection (b) obtains within a reasonable time an offer
to purchase the property for at least the determination of
value:
(1) The broker shall comply with the reporting
requirements in section 21A31 (relating to report of open-
market sale).
(2) The sale may be completed in accordance with the
laws of this Commonwealth.
(d) Options to court when no offer obtained.--If the broker
appointed under subsection (b) does not obtain within a
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reasonable time an offer to purchase the property for at least
the determination of value, the court, after hearing, may:
(1) approve the highest outstanding offer, if any;
(2) redetermine the value of the property and order that
the property continue to be offered for an additional time;
or
(3) order that the property be sold by sealed bids or at
an auction.
(e) Sale by sealed bid or auction.--If the court orders a
sale by sealed bids or an auction, the court shall set terms and
conditions of the sale. If the court orders an auction, the
auction must be conducted under 68 Pa.C.S. § 2306(c) (relating
to effect of certification of vacancy and abandonment).
(f) Purchaser credit authorized.--If a purchaser is entitled
to a share of the proceeds of the sale, the purchaser is
entitled to a credit against the price in an amount equal to the
purchaser's share of the proceeds.
§ 21A31. Report of open-market sale.
(a) Duty of broker.--Unless required to do so within a
shorter time, a broker appointed under section 21A30(b)
(relating to open-market sale, sealed bids or auction) to offer
heirs property for open-market sale shall file a report with the
court not later than seven days after receiving an offer to
purchase the property for at least the value determined under
section 21A26 (relating to determination of value) or 21A30.
(b) Content of report.--The report required by subsection
(a) shall contain the following information:
(1) A description of the property to be sold to each
buyer.
(2) The name of each buyer.
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(3) The proposed purchase price.
(4) The terms and conditions of the proposed sale,
including the terms of any owner financing.
(5) The amount to be paid to lienholders.
(6) A statement of contractual or other arrangements or
conditions of the broker's commission.
(7) Other material facts relevant to the sale.
§ 21A32. Uniformity of application and construction.
In applying and construing this uniform act, consideration
shall be given to the need to promote uniformity of the law with
respect to its subject matter among states that enact it.
§ 21A33. Relation to Electronic Signature in Global and
National Commerce Act.
(a) General rule.--Except as provided for in subsection (b),
this chapter modifies, limits or supersedes the Electronic
Signatures in Global and National Commerce Act (Public Law 106-
229, 15 U.S.C. § 7001 et seq.).
(b) Exceptions.--
(1) This chapter does not modify, limit or supersede
section 101(c) of the Electronic Signatures in Global and
National Commerce Act (15 U.S.C. § 7001(c)).
(2) This chapter does not authorize electronic delivery
of any of the notices described in section 103(b) of the
Electronic Signatures in Global and National Commerce Act (15
U.S.C. § 7003(b)).
Section 2. This act shall take effect in 60 days.
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