PRIOR PRINTER'S NO. 2986 PRINTER'S NO. 3463
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2232
Session of
2024
INTRODUCED BY RABB, N. NELSON, SANCHEZ, MADDEN, HILL-EVANS,
McNEILL, KINKEAD, PARKER, GREEN AND WEBSTER, APRIL 24, 2024
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JULY 1, 2024
AN ACT
1 Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2 Pennsylvania Consolidated Statutes, providing for uniform
3 partition of heirs property.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 20 of the Pennsylvania Consolidated
7 Statutes is amended by adding a chapter to read:
8 CHAPTER 21A
9 UNIFORM PARTITION OF HEIRS PROPERTY ACT
10 SEC. <--
11 21A21. Short title of chapter.
12 21A22. Definitions.
13 21A23. Applicability and relation to other law.
14 21A23.1. RIGHT OF FIRST REFUSAL REQUIRED. <--
15 21A24. Service and notice by posting.
16 21A24.1. SETTLEMENT CONFERENCE. <--
17 21A25. Hearing officers.
18 21A26. Determination of value.
 1 21A27. Cotenant buyout.
2 21A28. Partition alternatives.
3 21A29. Considerations for partition in kind.
4 21A30. Open-market sale, sealed bids or auction.
5 21A31. Report of open-market sale.
6 21A32. Uniformity of application and construction.
7 21A33. Relation to Electronic Signature in Global and National
8 Commerce Act.
9 § 21A21. Short title of chapter.
10 This chapter may be referred to as the Uniform Partition of
11 Heirs Property Act.
12 § 21A22. Definitions.
13 The following words and phrases when used in this chapter
14 shall have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Ascendant." An individual who precedes another individual
17 in lineage, in the direct line of ascent from the other
18 individual.
19 "Collateral." An individual who is related to another
20 individual under the law of intestate succession of this
21 Commonwealth but who is not the other individual's ascendant or
22 descendant.
23 "COTENANT." ONE OF TWO OR MORE INDIVIDUALS WHO TOGETHER HOLD <--
24 AN OWNERSHIP INTEREST IN REAL PROPERTY AS TENANTS IN COMMON.
25 "Descendant." An individual who follows another individual
26 in lineage, in the direct line of descent from the other
27 individual.
28 "Determination of value." A court order determining the fair
29 market value of heirs property under section 21A26 (relating to
30 determination of value) or 21A30 (relating to open-market sale,
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 1 sealed bids or auction) or adopting the valuation of the
2 property agreed to by all cotenants.
3 "Heirs property." Real property held in tenancy in common
4 which satisfies all of the following requirements as of the
5 filing of a partition action:
6 (1) There is no agreement in a record binding all the
7 cotenants which governs the partition of the property.
8 (2) One or more of the cotenants acquired AN EQUITABLE <--
9 INTEREST IN THE PROPERTY VIA TESTATE OR INTESTATE SUCCESSION
10 OR ACQUIRED the title from a relative, whether living or
11 deceased.
12 (3) Any of the following applies:
13 (i) twenty percent or more of the interests are held
14 by cotenants who are relatives;
15 (ii) twenty percent or more of the interests are
16 held by an individual who acquired title from a relative,
17 whether living or deceased; or
18 (iii) twenty percent or more of the cotenants are
19 relatives.
20 "Partition by sale." A court-ordered sale of the entire
21 heirs property, whether by auction, sealed bids or open-market
22 sale conducted under section 21A30.
23 "Partition in kind." The division of heirs property into
24 physically separated titled parcels.
25 "Record." Information that is inscribed on a tangible medium
26 or that is stored in an electronic or other medium and is
27 retrievable in perceivable form.
28 "Relative." An ascendant, descendant or collateral or an
29 individual otherwise related to another individual by blood,
30 marriage, adoption or law of this Commonwealth other than this
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 1 chapter.
2 § 21A23. Applicability and relation to other law.
3 (a) General rule.--This chapter applies to partition actions
4 filed on or after the effective date of this section.
5 (b) Determination.--In an action to partition real property,
6 the court shall determine whether the property is heirs
7 property. If the court determines that the property is heirs
8 property, the property must be partitioned under this chapter
9 unless all the cotenants otherwise agree in a record.
10 (c) Supplementation.--This chapter supplements section 3534
11 (relating to distribution in kind) and, if an action is governed
12 by this chapter, it replaces the provisions of section 3534 that
13 are inconsistent with this chapter.
14 § 21A23.1. RIGHT OF FIRST REFUSAL REQUIRED. <--
15 WHEN A COTENANT RECEIVES A BONA FIDE OFFER FROM A NONCOTENANT
16 TO PURCHASE A SHARE OR SHARES OF AN HEIR'S PROPERTY AND THE
17 COTENANT INTENDS TO ACCEPT OR RESPOND WITH A COUNTEROFFER, THE
18 COTENANTS WHO INHERITED THEIR SHARE OR SHARES OF THE PROPERTY OR
19 THE COTENANTS WHO ARE RELATIVES TO THOSE COTENANTS WHO INHERITED
20 THEIR SHARE OR SHARES OF THE PROPERTY SHALL HAVE THE RIGHT TO
21 PURCHASE THE SHARES FOR THE IDENTICAL PRICE, TERMS AND
22 CONDITIONS OF THE OFFER OR COUNTEROFFER, WITH FIRST PRIORITY TO
23 A COTENANT WHO IS IN POSSESSION OF THE HEIR'S PROPERTY AS THEIR
24 PRIMARY RESIDENCE AND SECOND PRIORITY TO A COTENANT WHO
25 OTHERWISE UTILIZES THE PROPERTY.
26 § 21A24. Service and notice by posting.
27 (a) General rule.--This chapter does not limit or affect the
28 method by which services of a complaint in a partition action
29 may be made.
30 (b) Notice and posting.--If the plaintiff in a partition
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 1 action seeks an order of notice by publication and the court
2 determines that the property may be heirs property, the
3 plaintiff, not later than 10 days after the court's
4 determination, shall post and maintain while the action is
5 pending a conspicuous sign on the property that is the subject
6 of the action. The sign shall state that the action has
7 commenced and identify the name and address of the court and the
8 common designation by which the property is known. The court may
9 require the plaintiff to publish on the sign the name of the
10 plaintiff and the known defendants.
11 § 21A24.1. SETTLEMENT CONFERENCE. <--
12 (A) GENERAL RULE.--IN A PARTITION ACTION OF HEIRS PROPERTY,
13 AFTER SERVICE AND NOTICE UNDER SECTION 21A24 (RELATING TO
14 SERVICE AND NOTICE BY POSTING) AND BEFORE ADDITIONAL ACTION IS
15 TAKEN, THE COURT SHALL HOLD A MANDATORY SETTLEMENT CONFERENCE
16 WITHIN 60 DAYS AFTER THE DATE OF DETERMINATION OF HEIRS PROPERTY
17 UNDER SECTION 21A23(B) (RELATING TO APPLICABILITY AND RELATION
18 TO OTHER LAW), OR ON A DATE AGREED TO BY THE PARTIES, FOR THE
19 PURPOSE OF HOLDING SETTLEMENT DISCUSSIONS.
20 (B) NOTICE.--AFTER AN HEIRS PROPERTY DETERMINATION IS MADE
21 UNDER SECTION 21A23(B), THE COURT SHALL PROMPTLY SEND A NOTICE
22 TO PARTIES ADVISING THEM OF THE TIME AND PLACE OF THE SETTLEMENT
23 CONFERENCE, THE PURPOSE OF THE CONFERENCE AND THE REQUIREMENTS
24 OF THIS SECTION. THE NOTICE SHALL BE IN A FORM PRESCRIBED BY THE
25 ADMINISTRATIVE OFFICE OF PENNSYLVANIA COURTS OR, AT THE
26 DISCRETION OF THE ADMINISTRATIVE OFFICE OF PENNSYLVANIA COURTS,
27 THE ADMINISTRATIVE JUDGE OF THE JUDICIAL DISTRICT IN WHICH THE
28 ACTION IS PENDING. THE PLAINTIFF IN THE PARTITION ACTION SHALL
29 POST A COPY OF THE SETTLEMENT CONFERENCE NOTICE IN A CONSPICUOUS
30 PLACE ON THE PROPERTY WITHIN 20 DAYS OF THE DATE OF THE NOTICE.
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 1 (C) SETTLEMENT CONFERENCE.--THE SETTLEMENT CONFERENCE MAY BE
2 ADJOURNED OR RECONVENED DURING THE PENDENCY OF THE PARTITION
3 ACTION. AT A CONFERENCE HELD UNDER THIS SECTION, IF THE
4 DEFENDANT IS APPEARING PRO SE, THE COURT SHALL ADVISE THE
5 DEFENDANT OF THE NATURE OF THE ACTION AND THE DEFENDANT'S RIGHTS
6 AND RESPONSIBILITIES AS A DEFENDANT.
7 (D) NOTICE AFTER FAILURE TO ANSWER.--THE FOLLOWING SHALL
8 APPLY:
9 (1) AT THE FIRST SETTLEMENT CONFERENCE HELD UNDER THIS
10 SECTION, IF THE DEFENDANT HAS NOT FILED A RESPONSIVE
11 PLEADING, THE COURT SHALL:
12 (I) ADVISE THE DEFENDANT OF THE REQUIREMENT TO
13 RESPOND TO THE COMPLAINT;
14 (II) EXPLAIN WHAT IS REQUIRED TO RESPOND TO A
15 COMPLAINT IN COURT;
16 (III) ADVISE THE DEFENDANT THAT THE ABILITY TO
17 CONTEST THE PARTITION ACTION AND ASSERT DEFENSES MAY BE
18 LOST IF A RESPONSE IS NOT FILED;
19 (IV) SET A DEADLINE FOR ANY COTENANTS REQUESTING
20 PARTITION BY SALE; AND
21 (V) PROVIDE INFORMATION ABOUT AVAILABLE RESOURCES
22 FOR LEGAL ASSISTANCE.
23 (2) A DEFENDANT WHO APPEARS AT THE SETTLEMENT CONFERENCE
24 BUT FAILS TO FILE A TIMELY RESPONSIVE PLEADING SHALL BE
25 PRESUMED TO HAVE A REASONABLE EXCUSE FOR THE DEFAULT AND
26 SHALL BE PERMITTED TO SERVE AND FILE A RESPONSIVE PLEADING,
27 WITHOUT ANY SUBSTANTIVE DEFENSES DEEMED TO HAVE BEEN WAIVED,
28 WITHIN 30 DAYS OF INITIAL APPEARANCE AT THE SETTLEMENT
29 CONFERENCE. THE DEFAULT SHALL BE DEEMED VACATED UPON SERVICE
30 AND FILING OF AN ANSWER OR OTHER RESPONSIVE PLEADING.
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 1 (E) GOOD FAITH NEGOTIATION REQUIRED.--THE PLAINTIFFS AND
2 DEFENDANTS SHALL NEGOTIATE IN GOOD FAITH TO REACH A MUTUALLY
3 AGREEABLE RESOLUTION, INCLUDING, BUT NOT LIMITED TO, A TENANCY
4 IN COMMON AGREEMENT, A COTENANT BUYOUT AND THE ALLOCATION,
5 MECHANICS AND FINANCING THEREOF OR ANY OTHER AGREEMENT OR LOSS
6 MITIGATION THAT IS FAIR AND REASONABLE CONSIDERING THE TOTALITY
7 OF FACTORS.
8 (F) FAILURE TO REACH RESOLUTION.--IF THE PARTIES DO NOT
9 REACH A MUTUALLY AGREEABLE RESOLUTION, A JUDICIAL HEARING
10 OFFICER OR OTHER STAFF DESIGNATED BY THE COURT TO OVERSEE THE
11 SETTLEMENT CONFERENCE PROCESS SHALL MAKE A REPORT OF FINDINGS OF
12 FACT, CONCLUSIONS OF LAW AND RECOMMENDATIONS FOR RELIEF TO THE
13 COURT CONCERNING ANY PARTY'S FAILURE TO NEGOTIATE IN GOOD FAITH
14 UNDER SUBSECTION (E). IF THE COURT DETERMINES A PLAINTIFF HAS
15 FAILED TO NEGOTIATE IN GOOD FAITH, THE COURT SHALL DISMISS THE
16 PARTITION ACTION.
17 (G) ABEYANCE ALLOWED.--MOTIONS SUBMITTED BY A PARTY TO THE
18 ACTION MAY BE HELD IN ABEYANCE WHILE THE SETTLEMENT CONFERENCE
19 PROCESS IS ONGOING, EXCEPT FOR MOTIONS CONCERNING:
20 (1) A DETERMINATION OF THE PERCENTAGE INTERESTS, IF ANY,
21 OWNED BY ANY ALLEGED COTENANT IF THE INTERESTS ARE IN
22 DISPUTE; AND
23 (2) COMPLIANCE WITH THIS SECTION, INCLUDING APPLICATIONS
24 TO EXTEND DEADLINES SPECIFIED IN THIS SECTION.
25 § 21A25. Hearing officers.
26 If the court appoints hearing officers under Pa.R.C.P. No.
27 1558 (relating to preliminary conference. appointment of hearing
28 officer), each hearing officer, in addition to the requirements
29 and disqualifications applicable to hearing officers, must be
30 disinterested and impartial and not a party to or a participant
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 1 in the action.
2 § 21A26. Determination of value.
3 (a) General rule.--Except as otherwise provided in
4 subsections (b) and (c), if the court determines that the
5 property that is the subject of a partition action is heirs
6 property, the court shall determine the fair market value of the
7 property by ordering an appraisal under subsection (d).
8 (b) Agreement by cotenants.--If all cotenants have agreed to
9 the value of the property or to another method of valuation, the
10 court shall adopt that value or the value produced by the agreed
11 method of valuation.
12 (c) When determined by court.--If the court determines that
13 the evidentiary value of an appraisal is outweighed by the cost
14 of the appraisal, the court, after an evidentiary hearing, shall
15 determine the fair market value of the property and send notice
16 to the parties of the value.
17 (d) Appointment of appraiser.--If the court orders an
18 appraisal, the court shall appoint a disinterested real estate
19 appraiser licensed in this Commonwealth to determine the fair
20 market value of the property assuming sole ownership of the fee
21 simple estate. On completion of the appraisal, the appraiser
22 shall file a sworn or verified appraisal with the court.
23 (e) Notice.--If an appraisal is conducted under subsection
24 (d), not later than 10 days after the appraisal is filed, the
25 court shall send notice to each party with a known address,
26 stating:
27 (1) The appraised fair market value of the property.
28 (2) That the appraisal is available at the clerk's
29 office.
30 (3) That a party may file with the court an objection to
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 1 the appraisal not later than 30 days after the notice is
2 sent, stating the grounds for the objection.
3 (f) Hearing.--If an appraisal is filed with the court under
4 subsection (d), the court shall conduct a hearing to determine
5 the fair market value of the property not sooner than 30 days
6 after a copy of the notice of the appraisal is sent to each
7 party under subsection (e), whether or not an objection to the
8 appraisal is filed under subsection (e)(3). In addition to the
9 court-ordered appraisal, the court may consider any other
10 evidence of value offered by a party.
11 (g) Posthearing determination and notice.--After a hearing
12 under subsection (f), but before considering the merits of the
13 partition action, the court shall determine the fair market
14 value of the property and send notice to the parties of the
15 value.
16 § 21A27. Cotenant buyout.
17 (a) Initial notice to parties.--If a cotenant requested
18 partition by sale, after the determination of value under
19 section 21A26 (relating to determination of value), the court
20 shall send notice to the parties that any cotenant except a
21 cotenant that requested partition by sale may buy all the
22 interests of the cotenants that requested partition by sale.
23 (b) Cotenant notice to court.--Not later than 45 days after
24 the notice is sent under subsection (a), any cotenant except a
25 cotenant that requested partition by sale may give notice to the
26 court that it elects to buy all the interests of the cotenants
27 that requested partition by sale.
28 (c) Purchase price.--The purchase price for each of the
29 interests of a cotenant that requested partition by sale is the
30 value of the entire parcel determined under section 21A26
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 1 multiplied by the cotenant's fractional ownership of the entire
2 parcel.
3 (d) Subsequent court notice to parties.--After expiration of
4 the period in subsection (b), the following rules apply:
5 (1) If only one cotenant elects to buy all the interests
6 of the cotenants that requested partition by sale, the court
7 shall notify all the parties of that fact.
8 (2) If more than one cotenant elects to buy all the
9 interests of the cotenants that requested partition by sale,
10 the court shall allocate the right to buy those interests
11 among the electing cotenants based on each electing
12 cotenant's existing fractional ownership of the entire parcel
13 divided by the total existing fractional ownership of all
14 cotenants electing to buy and send notice to all the parties
15 of that fact and of the price to be paid by each electing
16 cotenant.
17 (3) If no cotenant elects to buy all the interests of
18 the cotenants that requested partition by sale, the court
19 shall send notice to all the parties of that fact and resolve
20 the partition action under section 21A28(a) and (b) (relating
21 to partition alternatives).
22 (e) Payment and effect.--If the court sends notice to the
23 parties under subsection (d)(1) or (2), the court shall set a
24 date, not sooner than 60 days after the date the notice was
25 sent, by which electing cotenants must pay their apportioned
26 price into the court. IN DETERMINING AN APPROPRIATE DATE BY <--
27 WHICH ELECTING COTENANTS MUST PAY THEIR APPORTIONED PRICE INTO
28 THE COURT, THE COURT SHALL CONSIDER THE TIME NECESSARY TO OBTAIN
29 FINANCING AND MAY EXTEND THE DEADLINE UPON REQUEST. After this
30 date, the following rules apply:
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