HB 1498 — An Act amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, providing for uniform partition of heirs property.

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1750 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

18321498 THE2025 GENERALINTRODUCED ASSEMBLYBY OFRABB, PENNSYLVANIABONNER, HOUSESANCHEZ, BILLCEPEDA-FREYTIZ, SessionJAMES, ofRADER, No.KHAN AND D.

1498WILLIAMS, MAY 22, 2025 INTRODUCEDREFERRED BYTO RABB,COMMITTEE BONNER,ON SANCHEZ,HOUSING CEPEDA-FREYTIZ,AND JAMES,COMMUNITY RADER,DEVELOPMENT, KHAN,MAY D.22, 2025 AN ACT Amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, providing for uniform partition of heirs property.

WILLIAMS, DOUGHERTY, HOWARD AND ZIMMERMAN, MAY 22, 2025 AS REPORTED FROM COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 4, 2025 AN ACT Amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, providing for uniform partition of heirs property.

<-- 21A24.

"Determination of value." A court order determining the fair market value of heirs property under section 21A26 (relating to 20250HB1498PN1832 - 2 - determination of value) or 21A30 (relating to open-market sale, 20250HB1498PN1750 - 2 - sealed bids or auction) or adopting the valuation of the property agreed to by all cotenants.

"Relative." An ascendant, descendant or collateral or an individual otherwise related to another individual by blood, 20250HB1498PN1832 - 3 - marriage, adoption or law of this Commonwealth other than this 20250HB1498PN1750 - 3 - chapter.

<-- When a cotenant receives a bona fide offer from a noncotenant to purchase a share or shares of an heir's property and the cotenant intends to accept or respond with a counteroffer, the cotenants who inherited their share or shares of the property or the cotenants who are relatives to those cotenants who inherited their share or shares of the property shall have the right to purchase the shares for the identical price, terms and conditions of the offer or counteroffer, with first priority to a cotenant who is in possession of the heir's property as their primary residence and second priority to a cotenant who otherwise utilizes the property.

20250HB1498PN1832 - 4 - (b) Notice and posting.--If the plaintiff in a partition 20250HB1498PN1750 - 4 - action seeks an order of notice by publication and the court determines that the property may be heirs property, the plaintiff, not later than 10 days after the court's determination, shall post and maintain while the action is pending a conspicuous sign on the property that is the subject of the action.

The plaintiff in the partition action shall post a copy of the settlement conference notice in a conspicuous 20250HB1498PN1832 - 5 - place on the property within 20 days of the date of the notice.

20250HB1498PN1750 - 5 - (c) Settlement conference.--The settlement conference may be adjourned or reconvened during the pendency of the partition action.

The default shall be deemed vacated upon service 20250HB1498PN1832 - 6 - and filing of an answer or other responsive pleading.

20250HB1498PN1750 - 6 - (e) Good faith negotiation required.--The plaintiffs and defendants shall negotiate in good faith to reach a mutually agreeable resolution, including, but not limited to, a tenancy in common agreement, a cotenant buyout and the allocation, mechanics and financing thereof or any other agreement or loss mitigation that is fair and reasonable considering the totality of factors.

1558 (relating to preliminary conference appointment of hearing officer), each hearing officer, in addition to the requirements and disqualifications applicable to hearing officers, must be 20250HB1498PN1832 - 7 - disinterested and impartial and not a party to or a participant 20250HB1498PN1750 - 7 - in the action.

20250HB1498PN1832 - 8 - (3) That a party may file with the court an objection to 20250HB1498PN1750 - 8 - the appraisal not later than 30 days after the notice is sent, stating the grounds for the objection.

(c) Purchase price.--The purchase price for each of the interests of a cotenant that requested partition by sale is the 20250HB1498PN1832 - 9 - value of the entire parcel determined under section 21A26 20250HB1498PN1750 - 9 - multiplied by the cotenant's fractional ownership of the entire parcel.

After this 20250HB1498PN1832 - 10 - date, the following rules apply:

20250HB1498PN1750 - 10 - (1) If all electing cotenants timely pay their apportioned price into court, the court shall issue an order reallocating all the interests of the cotenants and disburse the amounts held by the court to the persons entitled to them.

(2) If no cotenant pays the entire price for the remaining interest, the court shall resolve the partition action under section 21A28(a) and (b) as if the interests of the cotenants that requested partition by sale were not 20250HB1498PN1832 - 11 - purchased.

20250HB1498PN1750 - 11 - (3) If more than one cotenant pays the entire price for the remaining interest, the court shall reapportion the remaining interest among those paying cotenants, based on each paying cotenant's original fractional ownership of the entire parcel divided by the total original fractional ownership of all cotenants that paid the entire price for the remaining interest.

(2) The purchase price for the interest of a nonappearing cotenant is based on the court's determination 20250HB1498PN1832 - 12 - of value under section 21A2821A28. 21A26.

<--20250HB1498PN1750 - 12 - § 21A28.

(d) Allocation of interests among unknown, unlocatable or defaulting cotenants.--If the court orders partition in kind, the court shall allocate to the cotenants that are unknown, unlocatable or the subject of a default judgment, if their interests were not bought out under section 21A27, a part of the 20250HB1498PN1832 - 13 - property representing the combined interests of these cotenants 20250HB1498PN1750 - 13 - as determined by the court and this part of the property shall remain undivided.

(6) the degree to which the cotenants have contributed their pro rata share of the property taxes, insurance and 20250HB1498PN1832 - 14 - other expenses associated with maintaining ownership of the 20250HB1498PN1750 - 14 - property or have contributed to the physical improvement, maintenance or upkeep of the property;

20250HB1498PN1832 - 15 - (1) The broker shall comply with the reporting 20250HB1498PN1750 - 15 - requirements in section 21A31 (relating to report of open- market sale).

(a) Duty of broker.--Unless required to do so within a shorter time, a broker appointed under section 21A30(b) (relating to open-market sale, sealed bids or auction) to offer heirs property for open-market sale shall file a report with the court not later than seven days after receiving an offer to 20250HB1498PN1832 - 16 - purchase the property for at least the value determined under 20250HB1498PN1750 - 16 - section 21A26 (relating to determination of value) or 21A30.

(2) This chapter does not authorize electronic delivery of any of the notices described in section 103(b) of the 20250HB1498PN1832 - 17 - Electronic Signatures in Global and National Commerce Act (15 20250HB1498PN1750 - 17 - U.S.C.

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