HB 5218 Summary

• Adopts the Uniform Partition of Heirs' Property Act effective October 1, 2014, establishing new procedures for partitioning real property held as tenancy in common when at least 20% of interests are held by relatives or acquired from relatives.

• Requires courts to determine fair market value of heirs' property through court-ordered appraisal by a licensed appraiser, unless all cotenants agree to a different valuation method or the court finds appraisal costs outweigh evidentiary value.

• Establishes a buyout process allowing non-selling cotenants to purchase the interests of those requesting partition by sale within 45 days of value determination, with purchase price based on proportional ownership of the appraised value.

• Prioritizes partition in kind (physical division into separate parcels) over partition by sale unless the court finds manifest prejudice to cotenants as a group, considering factors including practicability of division, loss of value, duration of family ownership, sentimental attachment, and maintenance contributions.

• Requires open-market sales for heirs' property unless the court determines sealed bids or auction would be more economically advantageous, with real estate brokers filing reports within seven days of receiving qualifying purchase offers.