How does the Uniform Partition of Heirs Property Act work?
The Uniform Partition of Heirs Property Act preserves the right of a tenant in common to sell their interest in inherited real estate.
The Uniform Partition of Heirs Property Act preserves the right of a tenant in common to sell their interest in inherited real estate while ensuring that the other tenants in common will have the necessary due process to prevent a forced sale. Due process includes notice, appraisal and right of first refusal.
- Notice
The tenant in common requesting the partition must give notice to all the other tenants in common.
- Appraisal
A court orders an independent appraisal to determine the property’s fair market value as a single parcel.
- Right of first refusal
The remaining tenants in common can buy the interest of the person seeking partition for a proportional share of the court-determined fair market value. There is a 45-day window to exercise this right, and then a 60-day window to secure financing.
If the other tenants in common do not exercise their right to purchase property from the seller, the court must order a partition-in-kind if feasible, and if not, a commercially reasonable sale for fair market value.