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An Act amending title 28 Virgin Islands Code, chapter 21 enacting the Virgin Islands
Uniform Partition of Heirs Property Act
3 designating the existing provisions as subchapter I and adding a subchapter II that reads
4 as follows:
6 PROPERTY ACT
7 § 501. This chapter may be cited as “The Virgin Islands Uniform Partition of Heirs
8 Property Act”.
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4 under the law of intestate succession of this Territory, but who is not the other
8 (4) “Determination of value” means a court order determining the fair market
9 value of heirs property under section 506 or 510 or adopting the valuation of the property
11 (5) “Heirs property” means real property held in tenancy in common which
13 (A) There is no agreement in a record binding all the cotenants which governs
15 (B) One or more of the cotenants acquired title from a relative, whether living
16 or deceased; and
18 (i) 20 percent or more of the interests are held by cotenants who are
19 relatives;
23 (6) “Other law” means law of the Virgin Islands other than the provisions of
24 this subchapter.
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1 (7) “Partition by sale” means a court-ordered sale of the entire heirs property,
2 whether by auction, sealed bids, or open-market sale conducted under section 510.
3 (8) “Partition in kind” means the division of heirs property into physically
9 (11) “Territory” means the Virgin Islands, as described in section 2(a) of the
15 the court shall determine whether the property is heirs property. If the court determines
16 that the property is heirs property, the property must be partitioned under this subchapter
19 this subchapter, replaces provisions of subchapter 1 which are inconsistent with this
20 subchapter.
22 (a) This subchapter does not limit or affect the method by which service of a
25 and the court determines that the property may be heirs property, the plaintiff, not later
26 than 10 days after the court’s determination, shall post and maintain while the action is
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1 pending a conspicuous sign on the property that is the subject of the action. The sign
2 must state that the action has commenced and identify the name and address of the court
3 and the common designation by which the property is known. The court may require the
4 plaintiff to publish on the sign the name of the plaintiff and the known defendants.
5 §505. [Referees]
6 If the court appoints referees pursuant section 458, each referee, in addition to the
10 (a) Except as otherwise provided in subsections (b) and (c), if the court
11 determines that the property that is the subject of a partition action is heirs property, the
12 court shall determine the fair market value of the property by ordering an appraisal
14 (b) If all cotenants have agreed to the value of the property or to another
15 method of valuation, the court shall adopt that value or the value produced by the agreed
16 method of valuation.
18 outweighed by the cost of the appraisal, the court, after an evidentiary hearing, shall
19 determine the fair market value of the property and send notice to the parties of the value.
20 (d) If the court orders an appraisal, the court shall appoint a disinterested real
21 estate appraiser licensed in the Territory to determine the fair market value of the
22 property assuming sole ownership of the fee simple estate. On completion of the
23 appraisal, the appraiser shall file a sworn or verified appraisal with the court.
25 days after the appraisal is filed, the court shall send notice to each party with a known
26 address, stating:
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3 (3) that a party may file with the court an objection to the appraisal not later
4 than 30 days after the notice is sent, stating the grounds for the objection.
5 (f) If an appraisal is filed with the court pursuant to subsection (d), the court
6 shall conduct a hearing to determine the fair market value of the property not sooner than
7 30 days after a copy of the notice of the appraisal is sent to each party under subsection
8 (e), whether or not an objection to the appraisal is filed under subsection (e) (3). In
9 addition to the court-ordered appraisal, the court may consider any other evidence of
11 (g) After a hearing under subsection (f), but before considering the merits of
12 the partition action, the court shall determine the fair market value of the property and
15 (a) If any cotenant requested partition by sale, after the determination of value
16 under section 506, the court shall send notice to the parties that any cotenant except a
17 cotenant that requested partition by sale may buy all the interests of the cotenants that
19 (b) Not later than 45 days after the notice is sent under subsection (a), any
20 cotenant except a cotenant that requested partition by sale may give notice to the court
21 that it elects to buy all the interests of the cotenants that requested partition by sale.
22 (c) The purchase price for each of the interests of a cotenant that requested
23 partition by sale is the value of the entire parcel determined under Section 6 multiplied by
25 (d) After expiration of the period in subsection (b), the following rules apply:
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1 (1) If only one cotenant elects to buy all the interests of the cotenants that
2 requested partition by sale, the court shall notify all the parties of that fact.
3 (2) If more than one cotenant elects to buy all the interests of the cotenants
4 that requested partition by sale, the court shall allocate the right to buy those interests
5 among the electing cotenants based on each electing cotenant’s existing fractional
6 ownership of the entire parcel divided by the total existing fractional ownership of all
7 cotenants electing to buy and send notice to all the parties of that fact and of the price to
9 (3) If no cotenant elects to buy all the interests of the cotenants that requested
10 partition by sale, the court shall send notice to all the parties of that fact and resolve the
12 (e) If the court sends notice to the parties under subsection (d) (1) or (2), the
13 court shall set a date, not sooner than 90 days after the date the notice was sent, by which
14 electing cotenants must pay their apportioned price into the court. After this date, the
16 (1) If all electing cotenants timely pay their apportioned price into court, the
17 court shall issue an order reallocating all the interests of the cotenants and disburse the
19 (2) If no electing cotenant timely pays its apportioned price, the court shall
20 resolve the partition action under section 508(a) and (b) as if the interests of the cotenants
22 (3) If one or more but not all of the electing cotenants fail to pay their
23 apportioned price on time, the court shall give notice to the electing cotenants that paid
24 their apportioned price of the interest remaining and the price for all that interest.
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1 (f) Not later than 30 days after the court gives notice pursuant to subsection
2 (e) (3), any cotenant that paid may elect to purchase all of the remaining interest by
3 paying the entire price into the court. After the 30-day period, the following rules apply:
4 (1) If only one cotenant pays the entire price for the remaining interest, the
5 court shall issue an order reallocating the remaining interest to that cotenant. The court
6 shall issue promptly an order reallocating the interests of all of the cotenants and disburse
8 (2) If no cotenant pays the entire price for the remaining interest, the court
9 shall resolve the partition action under section 508(a) and (b) as if the interests of the
11 (3) If more than one cotenant pays the entire price for the remaining interest,
12 the court shall reapportion the remaining interest among those paying cotenants, based on
13 each paying cotenant’s original fractional ownership of the entire parcel divided by the
14 total original fractional ownership of all cotenants that paid the entire price for the
15 remaining interest. The court shall issue promptly an order reallocating all of the
16 cotenants’ interests, disburse the amounts held by it to the persons entitled to them, and
18 (g) Not later than 45 days after the court sends notice to the parties pursuant to
19 subsection (a), any cotenant entitled to buy an interest under this section may request the
20 court to authorize the sale as part of the pending action of the interests of cotenants
21 named as defendants and served with the complaint but that did not appear in the action.
22 (h) If the court receives a timely request under subsection (g), the court, after
23 hearing, may deny the request or authorize the requested additional sale on such terms as
24 the court determines are fair and reasonable, subject to the following limitations:
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1 (1) A sale authorized under this subsection may occur only after the purchase
2 prices for all interests subject to sale under subsections (a) through (f) have been paid into
3 court and those interests have been reallocated among the cotenants as provided in those
4 subsections; and
5 (2) The purchase price for the interest of a nonappearing cotenant is based on
8 (a) If all the interests of all cotenants that requested partition by sale are not
9 purchased by other cotenants pursuant to section 507, or if after conclusion of the buyout
10 under section 507, there remains a cotenant who has requested partition in kind, the court
11 shall order partition in kind unless the court, after consideration of the factors listed in
12 section 509, finds that partition in kind will result in great prejudice to the cotenants as a
13 group. In considering whether to order partition in kind, the court shall approve a request
15 (b) If the court does not order partition in kind under subsection (a), the court
16 shall order partition by sale pursuant to section 510 or, if no cotenant requested partition
18 (c) If the court orders partition in kind pursuant to subsection (a), the court
19 may require that one or more cotenants pay one or more other cotenants amounts so that
20 the payments, taken together with the value of the in-kind distributions to the cotenants,
21 will make the partition in kind just and proportionate in value to the fractional interests
22 held.
23 (d) If the court orders partition in kind, the court shall allocate to the cotenants
24 that are unknown, unlocatable, or the subject of a default judgment if their interests were
25 not bought out pursuant to section 507, a part of the property representing the combined
26 interests of these cotenants as determined by the court and shall order that this part of the
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3 (a) In determining under section 508(a) whether partition in kind would result in
4 great prejudice to the cotenants as a group, the court shall consider the following:
5 (1) whether the heirs property practicably can be divided among the
6 cotenants;
7 (2) whether partition in kind would apportion the property in such a way that
8 the aggregate fair market value of the parcels resulting from the division would be
9 materially less than the value of the property if it were sold as a whole, taking into
10 account the condition under which a court-ordered sale likely would occur;
13 to the cotenant who are or were relatives of the cotenant or each other;
15 attachment arising because the property has ancestral or other unique or special value to
16 the cotenant;
17 (5) the lawful use being made of the property by a cotenant and the degree to
18 which the cotenant would be harmed if the cotenant could not continue the same use of
19 the property;
20 (6) the degree to which the cotenants have contributed their pro rata share of
21 the property taxes, insurance, and other expenses associated with maintaining ownership
25 (b) The court may not consider any one factor in subsection (a) to be
26 dispositive without weighing the totality of all relevant factors and circumstances
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2 (a) If the court orders a sale of heirs property, notwithstanding section 476 of
3 this chapter, the sale must be an open-market sale, unless the court finds that a sale by
4 sealed bids or an auction would be more economically advantageous and in the best
6 (b) If the court orders an open-market sale and the parties, not later than 10
7 days after the entry of the order, agree on a real estate broker licensed in the Territory to
8 offer the property for sale, the court shall appoint the broker and establish a reasonable
9 commission. If the parties do not agree on a broker, the court shall appoint a
10 disinterested real estate broker licensed in this Territory to offer the property for sale and
11 shall establish a reasonable commission. The broker shall offer the property for sale in a
12 commercially reasonable manner at a price no lower than the determination of value and
14 (c) If the broker appointed under subsection (b) obtains within a reasonable
15 time an offer to purchase the property for at least the determination of value:
16 (1) The broker shall comply with the reporting requirements in section 511;
17 and
19 (d) If the broker appointed under subsection (b) does not obtain within a
20 reasonable time an offer to purchase the property for at least the determination of value,
23 (2) redetermine the value of the property and order that the property continue
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1 (e) If the court orders a sale by sealed bids or an auction, the court shall set
2 terms and conditions of the sale. If the court orders an auction, the auction must be
5 purchaser is entitled to a credit against the price in an amount equal to the purchaser’s
8 (a) A broker appointed under section 510(b) to offer heirs property for open-
9 market sale shall file a report with the court not later than seven days after receiving an
10 offer to purchase the property for at least the value determined under section 506 or 510.
11 (b) The report required by subsection (a) must contain the following
12 information:
16 (4) The terms and conditions of the proposed sale, including the terms of any
17 owner financing;
24 need to promote uniformity of the law with respect to its subject matter among
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3 Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify,
4 limit, or supersede section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize
5 electronic delivery of any of the notices described in section 103(b) of that act, 15 U.S.C.
6 Section 7003(b).
8 This bill enacts Uniform Partition of Heirs Property Act. Under the Uniform
9 Partition of Heirs Property Act, family-owned, ancestral property owned under a tenancy
10 in common is referred to as “heirs property.” Most family land is owned under a
11 structure know a tenancy in common, in which two or more people who inherit or are
12 conveyed a parcel of property and acquire undivided interests in the property as tenants
13 in common.
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15 The tenant- in-common form of ownership is generally considered a risky form of
16 ownership, and that risk is often greater for many families who own heirs property. If a
17 cotenant conveys, whether for compensation or as gift, or devises his or her interest in
18 tenancy-in-common property to an outside party, the acquiring party – no matter how
19 small that cotenant’s undivided interest may be – can exercise the right any cotenant
20 possesses to file a partition action and request the court to order the property be sold at a
21 forced partition sale against the express wishes of the other cotenants.
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23 This proposed act establishes a hierarchy of remedies for use in those partition
24 actions involving heirs property. The remedies are designed to help those who own heirs
25 property to maintain ownership of their property when possible or to insure at the very
26 least that any court-ordered sale of the property is conducted under commercially
27 reasonable circumstances that will protect the owners from losing substantial wealth upon
28 the sale of their property. Often in response to a petition from heirs of a deceased co-
29 tenant, the court orders the sale of the property. Often the sale does not meet market
30 value. Under existing partition of real property law, the sale of the property must be
31 conducted by public auction to the highest bidder.
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33 Under this proposed Uniform Law, the court is required order an open-market
34 sale, unless the court finds that a sale by sealed bids or an auction would be more
35 economically advantageous and in the best interest of the cotenants as a group. Under the
36 open-market sale, the court appoints a licensed broker and sets a reasonable commission
37 for the broker, who must offer the property for sale in a commercially reasonable manner
38 at a price no lower than the determination of value and on the terms and conditions
39 established by the court.
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41 Under this bill, courts will use the Act’s provisions to determine if tenancy in
42 common property is heirs property that must be partitioned in accordance with the act.
43 The bill provides the procedures by which notice is provided to cotenants and appraisers
44 and brokers are hired. The bill also mandates that any commissioners, referees that are
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43 BR11-0547/February 16, 2011/YLT
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