SB 600 — Relating to the partition or voluntary sale of real property owned by certain cotenants; amending the Uniform Partition of Heirs' Property Act.

Summary

Relating to the partition or voluntary sale of real property owned by certain cotenants; amending the Uniform Partition of Heirs' Property Act.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 2 section(s) of the Texas statutes: Section 23, Property Code, Section 72.040, Government Code.

• Sec. 23.0014. DEFINITIONS. In this chapter, "heir cotenant," "heirs' property," "non-heir cotenant" and "relative" have the meanings assigned by Section 23A.002. Sec. 23.0015. REQUIREMENTS OF PETITION. (a) A petition to partition property must: (1) meet the requirements in the Texas Rules of Civil Procedure; (2) include a statement certifying whether the property is heirs' property; (3) include the date that the plaintiff acquired their interest in the property; and (4) include the plaintiff's percentage interest in the property. (b) If a non-heir cotenant brings a partition action for heirs' property after December 31, 2025, and the non-heir cotenant acquired their interest in said property after December 31, 2025, the petition must also include: (1) a statement certifying whether the right of first refusal and notice of sale requirements in Section 5.254 have been met; (2) the steps taken to exercise the due diligence required under Section 5.254; and (3) the full name of the persons who received the notice required under Section 5.254. Sec. 23.0016. CITATION; NOTICE OF HEIR'S BILL OF RIGHTS; FORM. (a) Citation of an action to partition real property must be served by personal service or certified mail with return receipt requested on each of the following persons: (1) each joint owner of the property who is 16 years of age or older; (2) the parent, managing conservator, or guardian of each joint owner who is younger than 16 years of age; (3) each person who has paid any part of the property taxes on the property in any of the five years prior to the filing of the suit; and (4) each person residing on the property. (b) The plaintiff or plaintiff's attorney or agent must exercise due diligence to identify the name and residence of each person listed in Subsection (a) and notify the clerk of the court of the identified names and residences; (c) The citation is not required to be served on a person listed in Subsection (a) if: (1) the person entered a court appearance in the action; (2) the person is 16 years of age or older and waived citation; or (3) the person is younger than 16 years of age and the party's parent, managing conservator, guardian, attorney ad litem, or guardian ad litem waived citation. (d) If the name or residence of a person listed in Subsection (a) cannot be ascertained through the exercise of due diligence, the service of the citation shall be made by publication in accordance with the Texas Rules of Civil Procedures. (e) The citation must include a notice of heir's property rights utilizing the standardized form created by the Office of Court Administration under Section 72.040, Government Code. Sec. 23.0017. AFFIDAVIT. (a) A plaintiff who files an action to partition real property shall file with the court, no later than 20 days after the service of citation in the action is completed: (1) a copy of any citation required by this chapter and the proof of delivery of service of the citation; and (2) an affidavit sworn to by the plaintiff or a certificate signed by the plaintiff's attorney stating: (A) that the citation was served as required by this chapter; (B) the name and address of each person to whom the citation was served, if the person's name and address are not shown on the proof of delivery; and (C) if service of citation is waived. (b) If the name or location of a person required to be served the citation under Section 23.0016 has not been ascertained: (1) the affidavit must confirm that due diligence was taken to ascertain the person's name and residence and contain a statement of the actions taken to identify the name and residence of the person; and (2) the court shall inquire into the sufficiency of the diligence taken to identify the person's name and residence and require any corrective actions needed to comply with this section. Sec. 23.0018. ATTORNEY AD LITEM. (a) The court shall appoint an attorney ad litem in a partition action to represent the interests of any joint owners whose name

  amended

• Section 23, Property Code

  or → (4-a) "Heir cotenant" means an individual who: (A) acquired a tenancy in common interest in real property from a relative by will, intestacy, or transfer on death deed; or (B) acquired a tenancy in common interest in real property from a relative who previously acquired the interest from a relative by will, intestacy, or transfer on death deed. ; or (iv) any heir cotenant resides on the property (5-a) "Non-heir cotenant" means an owner of heirs' property who is not an heir cotenant.

  amended

• Section 23, Property Code

  APPLICABILITY;

  amended

• Section 23, Property Code

  Sec. 23A.0041. SETTLEMENT CONFERENCE. (a) If the court in a partition action determines that the property is heirs' property, a party may file a written request that the court hold a conference for the parties to engage in settlement discussions with respect to the parties' interests in the property. (b) On the filing of a request for a settlement conference under this section the court shall: (1) order the parties to participate in a settlement conference under this section; and (2) send notice to the parties of the time and place at which the settlement conference will be held, the purpose of the settlement conference, and the requirements of this section. (c) The Office of Court Administration of the Texas Judicial System shall prescribe a form to be used to provide the notice required by Subsection (b). Notice provided under Subsection (b) must be in the form prescribed. (d) The plaintiff, not later than the 20th day after the date the court sends notice under Subsection (b)(2), shall post a copy of that notice on the sign required under Section 23A.0041. (e) The court: (1) shall hold a settlement conference under this section: (A) not later than the 60th day after the date the request for the settlement conference is filed; or (B) on a date agreed to by all parties; and (2) may adjourn or reconvene the settlement conference as necessary during the pendency of the partition action. (f) Each party to the action shall appear at the settlement conference in person, by videoconference if allowed by the court, or by counsel. Each party's representative at the settlement conference must be authorized to dispose of any portion of the case. If a defendant appears pro se, the court shall advise the defendant of the nature of the action and the defendant's rights and responsibilities as a defendant. (g) If at the time the court first holds a settlement conference under this section a defendant has not filed an answer to or motion to dismiss the partition action, the court shall: (1) advise the defendant of the requirement to answer the petition and that the ability to contest the partition action and assert defenses may be lost if an answer is not filed; (2) explain what is required to answer the petition in court; (3) provide information about available resources for legal assistance; and (4) set a deadline for any cotenant to request partition by sale. (h) The court shall presume that a defendant who appears at a settlement conference but who did not timely file an answer in the partition action has a reasonable excuse for the default and shall allow the defendant to serve and file an answer not later than the 30th day after the date of the defendant's initial appearance at the settlement conference, without deeming the defendant to have waived any substantive defenses to the partition action. On service and filing of the defendant's answer in accordance with this subsection, the court shall vacate any default judgment that has issued against the defendant in the action. (i) Each party to the action shall negotiate in good faith to reach a mutually agreeable resolution regarding the property, which may include: (1) a tenancy in common agreement; (2) a cotenant buyout and the allocation, mechanics, and financing for a cotenant buyout under Section 23A.007; (3) partition in kind as provided under Sections 23A.008 and 23A.009; (4) an open-market sale as provided under Section 23A.010; or (5) any other agreement or loss mitigation that is fair and reasonable in consideration of the factors listed in Section 23A.009(a). (j) If the parties do not reach a mutually agreeable resolution, the court may refer the case to an alternative dispute resolution procedure under Chapter 154, Civil Practice and Remedies Code. (k) The court may hold in abeyance any motion by any party to a partition action while a settlement conference process under this section is ongoing, except for a motion concerning: (1) a determination of the percentage interest,

  amended

• Section 23, Property Code

  or (c) → in writing (d-1) An appraiser appointed under Subsection (d) must be certified as a certified general appraiser under Chapter 1103, Occupations Code, unless the parties agree otherwise in writing or the court requires an appraiser with higher or additional certifications, licensing, or qualifications. Notwithstanding the foregoing, if the court determines that a certified general appraiser is unavailable to appraise the property within a ninety-day time period, the court may appoint an appraiser licensed as a certified residential appraiser to perform the appraisal provided that the appraiser's license is adequate for the type of property being appraised.

  amended

• Section 23, Property Code

  60th → 90th 23A.008

  amended

• be sold by sealed bids or at an auction orders a , the → appoint a substitute broker under Subsection (b) and continue to be offered for sale a substitute broker appointed under Subsection (d)(3) does not obtain within a reasonable time a reasonable offer to purchase the property, may order the of the property . The SECTION 10 . Chapter 23A, Property Code, is amended by adding Section 23A.0115 to read as follows Sec. 23A.0115. PROHIBITION ON INITIATION OF PARTITION. (a) No partition action related to an heirs' property may be initiated by a non-heir cotenant holding less than 50 percent of the interest in said property for a period of ten years from the date the non-heir cotenant first acquired a co-ownership interest in said property. (b) This section does not apply to an interest in heirs' property acquired by a non-heir cotenant prior to January 1, 2026.

  amended

• SUBCHAPTER H. NON-PARTITION SALE OF HEIR COTENANT'S INTEREST IN HEIRS' PROPERTY Sec. 5.251. DEFINITIONS. In this subchapter: "heir cotenant," heirs' property," "non-heir cotenant," and "relative" have the meanings assigned by Section 23A.002. Sec. 5.252. APPLICABILITY OF SUBCHAPTER. This subchapter applies to the sale of an heir cotenant's interest in heirs' property if: an heir cotenant is in possession of the property; and the sale does not result from an action to partition the property under Chapter 23 or 23A. Sec. 5.253. RIGHT OF FIRST REFUSAL AND NOTICE OF SALE. (a) If a cotenant decides to sell all or part of their interest in heirs' property to a non-heir cotenant who is not a relative of an heir cotenant, any heir cotenants who reside on the property have a right of first refusal to purchase the interest in accordance with this subchapter. (b) Before selling an interest in heirs' property covered by this subchapter, the selling cotenant must have a contract with the third-party purchaser that sets forth the terms of the sale and is subject to the right of first refusal in this subchapter. (c) Any heir cotenants who reside on the property are entitled to buy the interest for the same price in the contract for a period of 90 days from the date the notice under Section 5.254 is sent. (d) If multiple heir cotenants who reside on the property offer to purchase the interest, priority is given to heir cotenants who: (1) have occupied the property as their primary residence for at least the past five years; and (2) paid all or part of the ad valorem taxes imposed on the property for at least three of the five most recent tax years. (e) If a non-heir cotenant who acquired an interest in heirs' property after December 31, 2025, brings a partition action under Chapter 23 and the acquisition was not made in compliance with the right of first refusal requirements in this section, the heir cotenants who reside on the property have a right to buy the non-heir cotenant's interest in the property for the lesser of (1) the fair market value of the non-heir cotenant's interest in the property and (2) the price paid by the non-heir cotenant to acquire the interests in the property. Sec. 5.254. NOTICE TO HEIR COTENANTS. (a) Within 30 days of a cotenant entering into a contract for the sale of heirs' property to a non-heir cotenant, the selling cotenant shall give notice of the proposed sale to all persons in possession of the property and all known heir cotenants of the property. The notice shall include the identity of the proposed purchaser, the sales price of the proposed transaction, and a copy of the contract. (b) Notice shall be sent to the heir cotenants' last known address by certified mail with return receipt requested. (c) The selling cotenant has a duty to exercise due diligence to identify the names and locations of all the heir cotenants and provide the notice required under this subchapter.

  amended

• Section 72.040, Government Code

  Sec. 72.040 HEIR'S BILL OF RIGHTS FORM. (a) The Office of Court Administration of the Texas Judicial System shall promulgate an heir's bill of rights form required to be included in a citation for a partition action under Chapter 23, Property Code. (b) The standardized form developed under Subsection (a) must: (1) be written in English that can be easily understood by the general public and include a Spanish translation; (2) provide information for accessing free or low-cost legal assistance; (3) inform cotenant heirs of their rights and duties under Chapters 23 and 23A, Property Code, including their buyout rights and right to request a settlement conference; and (4) include such other information as the office determines is appropriate to adequately inform heirs of their rights and duties under Chapters 23 and 23A, Property Code.

  added

Action History

1. April 03, 2025

   Left pending in committee

2. April 03, 2025

   Testimony taken in committee

3. April 03, 2025

   Considered in public hearing

4. April 03, 2025

   Scheduled for public hearing on . . .

5. February 03, 2025

   Referred to Business & Commerce

6. February 03, 2025

   Read first time

7. December 13, 2024

   Filed

8. December 13, 2024

   Received by the Secretary of the Senate

Sponsors

• Royce West · Primary

Subjects