STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Uniform Partition of Heirs Property Act; provides alternative process for handling partition actions filed in court concerning real property with multiple owners, at least one of whom had acquired title from relative.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning partition actions involving certain real property and supplementing chapter 56 of Title 2A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the Uniform Partition of Heirs Property Act.
2. As used in this act:
Ascendant means an individual who precedes another individual in lineage, in the direct line of ascent from the other individual.
Collateral means an individual who is related to another individual under the law of intestate succession of this state but who is not the other individuals ascendant or descendant.
Descendant means an individual who follows another individual in lineage, in the direct line of descent from the other individual.
Determination of value means a court order determining the fair market value of heirs property under section 6 or 10 of this act or adopting the valuation of the property agreed to by all cotenants.
Heirs property means real property held in tenancy in common which satisfies all of the following requirements as of the filing of a partition action: (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 title from a relative, whether living or deceased; and (3) any of the following applies: (a) 20 percent or more of the interests are held by cotenants who are relatives; (b) 20 percent or more of the interests are held by an individual who acquired title from a relative, whether living or deceased; or (c) 20 percent or more of the cotenants are relatives.
Partition by sale means a court-ordered sale of the entire heirs property, whether by auction, sealed bids, or open-market sale conducted under section 10 of this act.
Partition in kind means the division of heirs property into physically distinct and separately titled parcels.
Record means 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 means an ascendant, descendant, or collateral or an individual otherwise related to another individual by blood, marriage, adoption, or law of this State other than this act.
3. a. In an action to partition real property under N.J.S.2A:56-1 et seq., the court shall determine whether the property is heirs property. In making this determination, the court shall rely on information contained in the pleadings, or any other information provided to the court pursuant to the Rules of Court. If the court determines that the property is heirs property, pursuant to the Rules of Court, the court shall appoint a special master and may, when appropriate, appoint a commissioner or commissioners to partition the property under the partition process set forth in this act unless all of the cotenants otherwise agree in writing.
b. This act is a supplement to N.J.S.2A:56-1 et seq. and if a partition action is governed by this act, it preempts the provisions of N.J.S.2A:56-1 et seq. that are inconsistent with this act.
4. 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 court shall order the plaintiff to post and maintain while the action is pending a conspicuous notice on the property that is the subject of the action in accordance with the Rules of Court. The notice shall state that a partition 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 notice the name of the plaintiff and the known defendants.
5. If the court appoints a commissioner or commissioners pursuant to N.J.S.2A:56-1 et seq. and the Rules of Court, each commissioner shall be disinterested, impartial, and not a party to or a participant in the partition action.
6. a. (1) Except as otherwise provided in subsection b. of this section, if the court determines that the property involved in a partition action is heirs property, the special master shall direct a determination of the propertys fair market value, assuming sole ownership of the fee simple estate, be made by a disinterested real estate appraiser licensed in this State. On completion of the appraisal, the appraiser shall distribute the appraisal to the parties and file a sworn or verified appraisal with the special master.
(2) Within 30 days after an appraisal is filed, the parties may file objections with the special master.
(3) Following notice in accordance with the Rules of Court, the special master may conduct an appraisal hearing to determine the fair market value of the property. In addition to the appraisal, the special master may consider any other evidence offered by a party.
b. If all cotenants have agreed to the value of the property or to another method of valuation, the special master may accept that value or the value produced by the agreed method of valuation.
7. a. If any cotenant requests partition by sale, after the determination of value under section 6 of this act, the party filing the partition action shall send written notice to the parties and the special master within 30 days that any cotenant, except a cotenant that requested partition by sale, may buy all of the interests of the cotenants that requested partition by sale.
b. Not later than 45 days after the written notice is sent under subsection a. of this section, any cotenant except a cotenant that requested partition by sale may give written notice to the parties and the special master that it elects to buy all of the interests of the cotenants that requested partition by sale.
c. 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 6 of this act multiplied by the cotenants fractional ownership of the entire parcel.
d. After expiration of the buyout notice period set in subsection b. of this section, the following shall apply:
(1) If only one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the cotenant shall notify all the parties and the special master in writing of that fact.
(2) If more than one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the special master shall allocate the right to buy those interests among the electing cotenants based on each electing cotenants existing fractional ownership of the entire parcel divided by the total existing fractional ownership of all cotenants electing to buy, and send written notice to all the parties of that fact and of t