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7 LONG TITLE
8 General Description:
9 This bill enacts the Uniform Partition of Heirs' Property Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ provides the applicability of the Uniform Partition of Heirs' Property Act (Act) in
14 actions regarding the partition of property;
15 ▸ requires notice of an action for the partition of property that is covered by the Act;
16 ▸ provides that referees are to be impartial and not a party to an action under the Act;
17 ▸ requires the court to determine the value of property being partitioned under the
18 Act;
19 ▸ provides a process for the court to allow cotenants to buy out other cotentant's
20 interests in a property;
21 ▸ allows the court to partition the property in kind and for sale under certain
22 conditions;
23 ▸ provides factors for the court to consider when determining whether property should
24 be partitioned in kind;
25 ▸ provides that the sale of property under the Act must be an open-market sale and
26 provides the requirements for the open-market sale;
27 ▸ requires a report be submitted to the court on the open-market sale of a partitioned
28 property;
29 ▸ provides that the law should be applied and construed to promote uniformity with
30 other states that enact this uniform law; and
31 ▸ contains a provision on the Act's relation to the Electronic Signatures in Global
32 National Commerce Act.
33 Money Appropriated in this Bill:
34 None
35 Other Special Clauses:
36 None
37 Utah Code Sections Affected:
38 ENACTS:
39 78B-6-1270, Utah Code Annotated 1953
40 78B-6-1271, Utah Code Annotated 1953
41 78B-6-1272, Utah Code Annotated 1953
42 78B-6-1273, Utah Code Annotated 1953
43 78B-6-1274, Utah Code Annotated 1953
44 78B-6-1275, Utah Code Annotated 1953
45 78B-6-1276, Utah Code Annotated 1953
46 78B-6-1277, Utah Code Annotated 1953
47 78B-6-1278, Utah Code Annotated 1953
48 78B-6-1279, Utah Code Annotated 1953
49 78B-6-1280, Utah Code Annotated 1953
50 78B-6-1281, Utah Code Annotated 1953
51 78B-6-1282, Utah Code Annotated 1953
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53 Be it enacted by the Legislature of the state of Utah:
54 Section 1. Section 78B-6-1270 is enacted to read:
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56 78B-6-1270. Title.
57 This part is known as the "Uniform Partition of Heirs' Property Act."
58 Section 2. Section 78B-6-1271 is enacted to read:
59 78B-6-1271. Definitions.
60 As used in this part:
61 (1) "Ascendant" means an individual who precedes another individual in lineage, in the
62 direct line of ascent from the other individual.
63 (2) "Collateral" means an individual who is related to another individual under the law
64 of intestate succession of this state but who is not the other individual's ascendant or
65 descendant.
66 (3) "Descendant" means an individual who follows another individual in lineage, in the
67 direct line of descent from the other individual.
68 (4) "Determination of value" means:
69 (a) a court order determining the fair market value of heirs' property; or
70 (b) adopting the valuation of the property agreed to by all the cotenants.
71 (5) "Heirs' property" means real property held in tenancy in common that satisfies all of
72 the following requirements as of the filing of a partition action:
73 (a) there is no agreement in a record binding all the cotenants that governs the partition
74 of the property;
75 (b) one or more of the cotenants acquired title from a relative, whether living or
76 deceased; and
77 (c) any of the following applies:
78 (i) 20% or more of the interests are held by cotenants who are relatives;
79 (ii) 20% or more of the interests are held by an individual who acquired title from a
80 relative, whether living or deceased; or
81 (iii) 20% or more of the cotenants are relatives.
82 (6) "Partition by sale" means a court-ordered sale of the entire heirs' property, whether
83 by an auction, sealed bids, or an open-market sale conducted under Section 78B-6-1279.
84 (7) "Partition in kind" means the division of heirs' property into physically distinct and
85 separately titled parcels.
86 (8) "Record" means information that is inscribed on a tangible medium or that is stored
87 in an electronic or other medium and is retrievable in perceivable form.
88 (9) "Relative" means an ascendant, a descendant, or a collateral or an individual
89 otherwise related to another individual by blood, marriage, adoption, or a law of this state other
90 than this part.
91 Section 3. Section 78B-6-1272 is enacted to read:
92 78B-6-1272. Applicability -- Relation to other law.
93 (1) This part applies to partition actions filed on or after May 12, 2020.
94 (2) (a) In an action to partition real property under Title 78B, Chapter 6, Part 12,
95 Partition, the court shall determine whether the property is heirs' property.
96 (b) If the court determines that the property is heirs' property, the property shall be
97 partitioned under this part, unless all of the cotenants otherwise agree in a record.
98 (3) This part supplements Title 78B, Chapter 6, Part 12, Partition, and if an action is
99 governed by this part, replaces provisions of Title 78B, Chapter 6, Part 12, Partition, that are
100 inconsistent with this part.
101 Section 4. Section 78B-6-1273 is enacted to read:
102 78B-6-1273. Service -- Notice by posting.
103 (1) This part does not limit or affect the method by which service of a complaint in a
104 partition action may be made.
105 (2) (a) If the plaintiff in a partition action files a notice by publication and the court
106 determines that the property may be heirs' property, the plaintiff, no later than 10 days after the
107 day on which the court determines the property is heirs' property, shall post and maintain while
108 the action is pending a conspicuous sign on the property that is the subject of the action.
109 (b) The sign shall:
110 (i) state that the action has commenced; and
111 (ii) identify the name and address of the court and the common designation by which
112 the property is known.
113 (c) The court may require the plaintiff to publish on the sign the name of the plaintiff
114 and the known defendants.
115 Section 5. Section 78B-6-1274 is enacted to read:
116 78B-6-1274. Referees.
117 If the court appoints referees, each referee, in addition to the requirements and
118 disqualifications applicable to referees in Title 78B, Chapter 6, Part 12, Partition, shall be
119 disinterested and impartial and not a party to or a participant in the action.
120 Section 6. Section 78B-6-1275 is enacted to read:
121 78B-6-1275. Determination of value.
122 (1) Except as otherwise provided in Subsections (2) and (3), if the court determines
123 that the property that is the subject of a partition action is heirs' property, the court shall
124 determine the fair market value of the property by ordering an appraisal in accordance with
125 Subsection (4).
126 (2) If all cotenants have agreed to the value of the property or to another method of
127 valuation, the court shall adopt that value or the value produced by the agreed method of
128 valuation.
129 (3) If the court determines that the evidentiary value of an appraisal is outweighed by
130 the cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market
131 value of the property and send notice to the parties of the value.
132 (4) (a) If the court orders an appraisal, the court shall appoint a disinterested real estate
133 appraiser licensed in this state to determine the fair market value of the property assuming sole
134 ownership of the fee simple estate.
135 (b) On completion of the appraisal, the appraiser shall file a sworn or verified appraisal
136 with the court.
137 (5) If an appraisal is conducted in accordance with Subsection (4), no later than 10
138 days after the day on which the appraisal is filed, the court shall send notice to each party with
139 a known address, stating:
140 (a) the appraised fair market value of the property;
141 (b) that the appraisal is available at the court clerk's office; and
142 (c) that a party may file with the court an objection to the appraisal no later than 30
143 days after the day on which the notice is sent, stating the grounds for the objection.
144 (6) (a) If an appraisal is filed with the court in accordance with Subsection (4), the
145 court shall conduct a hearing to determine the fair market value of the property no sooner than
146 31 days after the day on which a copy of the notice of the appraisal is sent to each party under
147 Subsection (5), whether or not an objection to the appraisal is filed under Subsection (5)(c).
148 (b) In addition to the court-ordered appraisal, the court may consider any other
149 evidence of value offered by a party.
150 (7) After a hearing under Subsection (6), but before considering the merits of the
151 partition action, the court shall determine the fair market value of the property and send notice
152 to the parties of the value.
153 Section 7. Section 78B-6-1276 is enacted to read:
154 78B-6-1276. Cotenant buyout.
155 (1) If any cotenant requests a partition by sale, after the determination of value under
156 Section 78B-6-1275, the court shall send notice to the parties that any cotenant, except a
157 cotenant that requested the partition by sale, may buy all the interests of the cotenants that
158 requested partition by sale.
159 (2) No later than 45 days after on the day on which the notice is sent under Subsection
160 (1), any cotenant, except a cotenant that requested partition by sale, may give notice to the
161 court that the cotenant elects to buy all the interests of the cotenants that requested partition by
162 sale.
163 (3) The purchase price for each of the interests of a cotenant that requested partition by
164 sale is the value of the entire parcel determined under Section 78B-6-1275 multiplied by the
165 cotenant's fractional ownership of the entire parcel.
166 (4) After expiration of the 45-day period described in Subsection (2):
167 (a) if only one cotenant elects to buy all the interests of the cotenants that requested
168 partition by sale, the court shall notify all the parties of the fact that the one cotenant seeks to
169 buy all the interests of the other cotenants;
170 (b) if more than one cotenant elects to buy all the interests of the cotenants that
171 requested partition by sale, the court shall:
172 (i) allocate the right to buy all the interests of the cotenants among the electing
173 cotenants based on each electing cotenant's existing fractional ownership of the entire parcel
174 divided by the total existing fractional ownership of all cotenants electing to buy; and
175 (ii) send notice to all the parties of that fact and of the price to be paid by each electing
176 cotenant; or
177 (c) if no cotenant elects to buy all the interests of the cotenants that requested partition
178 by sale, the court shall send notice to all the parties that no cotenant elects to buy all the
179 interests of the cotenants and resolve the partition action under Subsections 78B-6-1277(1) and
180 (2).
181 (5) (a) If the court sends notice to the parties under Subsection (4)(a) or (b), the court
182 shall set a date, no sooner than 60 days after the day on which the notice was sent, by which
183 electing cotenants shall pay each cotenant's apportioned price into the court.
184 (b) After the day described in Subsection (5)(a):
185 (i) if all electing cotenants timely pay each cotenant's apportioned price to court, the
186 court shall issue an order reallocating all the interests of the cotenants and disburse the amounts
187 held by the court to the persons entitled to the amounts;
188 (ii) if no electing cotenant timely pays each cotenant's apportioned price, the court shall
189 resolve the partition action under Subsections 78B-6-1277(1) and (2) as if the interests of the
190 cotenants that requested partition by sale were not purchased; or
191 (iii) if one or more but not all of the electing cotenants fail to pay a cotenant's
192 apportioned price on time, the court, upon a motion, shall give notice to the electing cotentants
193 that paid the cotenant's apportioned price of the interest remaining and the price for all that
194 interest.
195 (6) (a) No later than 20 days after the day on which the court gives notice in accordance
196 with Subsection (5)(a), any cotenant that paid may elect to purchase all of the remaining
197 interest by paying the entire price into the court.
198 (b) After the 20-day period described in Subsection (6)(a):
199 (i) if only one cotenant pays the entire price for the remaining interest, the court shall:
200 (A) issue an order reallocating the remaining interest to that cotenant;
201 (B) issue an order promptly reallocating the interests of all of the cotenants; and
202 (C) disburse the amounts held by the court to the persons entitled to the amounts;
203 (ii) if no cotenant pays the entire price for the remaining interest, the court shall resolve
204 the partition action under Subsections 78B-6-1277(1) and (2) as if the interests of the cotenants
205 that requested partition by sale were not purchased; or
206 (iii) if more than one cotenant pays the entire price for the remaining interest, the court
207 shall:
208 (A) reapportion the remaining interest among the paying cotenants, based on each
209 paying cotenant's original fractional ownership of the entire parcel divided by the total original
210 fractional ownership of all cotenants that paid the entire price for the remaining interest;
211 (B) issue an order promptly reallocating all of the cotenants' interests;
212 (C) disburse the amounts held by the court to the persons entitled to the amounts; and
213 (D) promptly refund any excess payment held by the court.
214 (7) No later than 45 days after the day on which the court sends notice to the parties in
215 accordance with Subsection (1), any cotenant entitled to buy an interest under this section may
216 request the court to authorize the sale, as part of the pending action, of the interests of
217 cotenants named as defendants and served with the complaint but that did not appear in the
218 action.
219 (8) If the court receives a timely request under Subsection (7), the court, after a
220 hearing, may deny the request or authorize the requested additional sale on such terms as the
221 court determines are fair and reasonable if:
222 (a) a sale authorized under this Subsection (8) occurs only after the purchase prices for
223 all interests subject to sale under Subsections (1) through (6) have been paid to court and those
224 interests have been reallocated among the cotenants as provided in Subsections (1) through (6);
225 and
226 (b) the purchase price for the interest of a nonappearing cotenant is based on the court's
227 determination of value of the property under Section 78B-6-1275.
228 Section 8. Section 78B-6-1277 is enacted to read:
229 78B-6-1277. Partition alternatives.
230 (1) (a) Except as provided in Subsection (1)(b), a court shall order partition in kind if:
231 (i) all the interests of all cotenants that requested partition by sale are not purchased by
232 other cotenants in accordance with Section 78B-6-1276; or
233 (ii) after conclusion of the buyout under Section 78B-6-1276, a cotenant remains that
234 has requested partition in kind.
235 (b) A court may not order a partition in kind if the court finds that partition in kind will
236 result in great prejudice to the cotenants as a group after consideration of the factors listed in
237 Section 78B-6-1278.
238 (c) In considering whether to order partition in kind under Subsection (1)(a), the court
239 shall approve a request by two or more parties to have their individual interests aggregated.
240 (2) If the court does not order partition in kind under Subsection (1), the court shall
241 order partition by sale in accordance with Section 78B-6-1279, or the court shall dismiss the
242 action if no cotenant requested partition by sale.
243 (3) If the court orders partition in kind in accordance with Subsection (1), the court
244 may require that one or more cotenants pay one or more other cotenants amounts so that the
245 payments, taken together with the value of the in-kind distributions to the cotenants, will make
246 the partition in kind just and proportionate in value to the fractional interests held.
247 (4) (a) If the court orders partition in kind, the court shall allocate to the cotenants that
248 are unknown, unlocatable, or the subject of a default judgment, if the cotenants' interests were
249 not bought out in accordance with Section 78B-6-1276, a part of the property representing the
250 combined interests of these cotenants as determined by the court.
251 (b) The part of the property allocated in accordance with Subsection (4)(a) shall remain
252 undivided.
253 Section 9. Section 78B-6-1278 is enacted to read:
254 78B-6-1278. Considerations for partition in kind.
255 (1) In determining under Subsection 78B-6-1277(1) whether partition in kind would
256 result in great prejudice to the cotenants as a group, the court shall consider:
257 (a) whether the heirs' property practicably can be divided among the cotenants;
258 (b) whether partition in kind would apportion the property in such a way that the
259 aggregate fair market value of the parcels resulting from the division would be materially less
260 than the value of the property if it were sold as a whole, taking into account the condition under
261 which a court-ordered sale likely would occur;
262 (c) evidence of the collective duration of ownership or possession of the property by a
263 cotenant and one or more predecessors in title or predecessors in possession to the cotenant
264 who are or were relatives of the cotenant or each other;
265 (d) a cotenant's sentimental attachment to the property, including any attachment
266 arising because the property has ancestral or other unique or special value to the cotenant;
267 (e) the lawful use being made of the property by a cotenant and the degree to which the
268 cotenant would be harmed if the cotenant could not continue the same use of the property;
269 (f) the degree to which the cotenants have contributed:
270 (i) the cotenants' pro rata share of the property taxes, insurance, and other expenses
271 associated with maintaining ownership of the property; or
272 (ii) to the physical improvement, maintenance, or upkeep of the property; and
273 (g) any other relevant factor.
274 (2) The court may not consider any one factor in Subsection (1) to be dispositive
275 without weighing the totality of all relevant factors and circumstances.
276 Section 10. Section 78B-6-1279 is enacted to read:
277 78B-6-1279. Open-market sale, sealed bids, or auction.
278 (1) If the court orders a sale of heirs' property, the sale must be an open-market sale
279 unless the court finds that a sale by sealed bids or an auction would be more economically
280 advantageous and in the best interest of the cotenants as a group.
281 (2) (a) If the court orders an open-market sale and the parties agree on a real estate
282 broker licensed in this state to offer the property for sale no later than 10 days after the day on
283 which the court entered the order, the court shall appoint the broker and establish a reasonable
284 commission.
285 (b) If the parties do not agree on a broker during the 10-day period described in
286 Subsection (2)(a), the court shall appoint a disinterested real estate broker licensed in this state
287 to offer the property for sale and shall establish a reasonable commission.
288 (c) The broker shall offer the property for sale in a commercially reasonable manner at
289 a price no lower than the determination of value of the property and on the terms and
290 conditions established by the court.
291 (3) If the broker appointed under Subsection (2) obtains within a reasonable time an
292 offer to purchase the property for at least the determination of value:
293 (a) the broker shall comply with the reporting requirements in Section 78B-6-1280; and
294 (b) the sale may be completed in accordance with state law other than this part.
295 (4) If the broker appointed under Subsection (2) does not obtain within a reasonable
296 time an offer to purchase the property for at least the determination of value, the court, after a
297 hearing, may:
298 (a) approve the highest outstanding offer if there is an outstanding offer;
299 (b) redetermine the value of the property and order that the property continue to be
300 offered for an additional time; or
301 (c) order that the property be sold by sealed bids or at an auction.
302 (5) (a) If the court orders a sale by sealed bids or an auction, the court shall set terms
303 and conditions of the sale.
304 (b) If the court orders an auction, the auction shall be conducted in accordance with
305 Section 78B-6-1224.
306 (6) If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is
307 entitled to a credit against the price in an amount equal to the purchaser's share of the proceeds.
308 Section 11. Section 78B-6-1280 is enacted to read:
309 78B-6-1280. Report of open-market sale.
310 (1) Unless required to do so within a shorter time by Title 78B, Chapter 6, Part 12,
311 Partition, a broker appointed under Subsection 78B-6-1279(2) to offer heirs' property for
312 open-market sale shall file a report with the court no later than seven days after the day on
313 which the broker receives an offer to purchase the property for at least the determination of
314 value under Section 78B-6-1275 or 78B-6-1279.
315 (2) The report required by Subsection (1) shall contain the following information:
316 (a) a description of the property to be sold to each buyer;
317 (b) the name of each buyer;
318 (c) the proposed purchase price;
319 (d) the terms and conditions of the proposed sale, including the terms of any owner
320 financing;
321 (e) the amounts to be paid to lienholders;
322 (f) a statement of contractual or other arrangements or conditions of the broker's
323 commission; and
324 (g) any other material fact relevant to the sale.
325 Section 12. Section 78B-6-1281 is enacted to read:
326 78B-6-1281. Uniformity of application and construction.
327 In applying and construing this part, consideration shall be given to the need to promote
328 uniformity of this uniform law with respect to the subject matter of the uniform law among
329 states that enact this uniform law.
330 Section 13. Section 78B-6-1282 is enacted to read:
331 78B-6-1282. Relation to Electronic Signatures in Global and National Commerce
332 Act.
333 This part modifies, limits, and supersedes the Electronic Signatures in Global and
334 National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede
335 Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the
336 notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).