Bill > H976

This bill introduces the Uniform Partition of Heirs Property Act, which provides a comprehensive framework for resolving property disputes among co-owners, particularly for properties inherited through family lines. The legislation establishes specific definitions for heirs property, which includes real estate held in common ownership where at least 20% of the interests are owned by relatives or inherited from relatives. The bill creates a detailed process for partitioning such property, prioritizing fairness and keeping families together when possible. Key provisions include requiring a court-ordered appraisal to determine the property's fair market value, giving co-owners the first opportunity to buy out other owners who want to sell, and establishing a preference for partition in kind (physically dividing the property) over a forced sale. If partition in kind is not feasible, the court must consider multiple factors before ordering a sale, such as sentimental attachment, duration of ownership, and potential economic impact. The bill mandates that any property sale be conducted through an open-market sale, sealed bids, or auction, with the goal of obtaining the best possible price. The legislation aims to protect the interests of all co-owners, particularly those who may have limited resources or emotional connections to family-inherited property, by providing a structured and equitable approach to resolving property ownership disputes. The act will become effective on January 1, 2026, and will apply to partition petitions filed on or after that date.

Government Affairs, Justice

https://www.ncleg.gov/BillLookUp/2025/H976