Sen. Rachelle Crowe

Filed: 5/1/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3677

2    AMENDMENT NO. ______. Amend House Bill 3677 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Uniform Partition of Heirs Property Act.
 
6    Section 2. Definitions. In this Act:
7    (1) "Ascendant" means an individual who precedes another
8individual in lineage, in the direct line of ascent from the
9other individual.
10    (2) "Collateral" means an individual who is related to
11another individual under the law of intestate succession of
12this State but who is not the other individual's ascendant or
13descendant.
14    (3) "Descendant" means an individual who follows another
15individual in lineage, in the direct line of descent from the
16other individual.

 

 

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1    (4) "Determination of value" means a court order
2determining the fair market value of heirs property under
3Section 6 or 10 or adopting the valuation of the property
4agreed to by all cotenants.
5    (5) "Heirs property" means real property held in tenancy in
6common which satisfies all of the following requirements as of
7the filing of a partition action:
8        (A) there is no agreement in a record binding all the
9    cotenants which governs the partition of the property;
10        (B) one or more of the cotenants acquired title from a
11    relative or, if a cotenant is an entity, from a relative of
12    a beneficiary, shareholder, partner, or member of the
13    entity, whether such relative is living or deceased; and
14        (C) Any of the following applies:
15            (i) 20 percent or more of the interests are held by
16        cotenants who are relatives;
17            (ii) 20 percent or more of the interests are held
18        by a cotenant who acquired title from a relative,
19        whether living or deceased; or
20            (iii) 20 percent or more of the cotenants are
21        relatives.
22    (6) "Fair market value" means the cash price at which the
23heirs property would change hands between a willing buyer and a
24willing seller, neither being under any compulsion to buy or
25sell and both having reasonable knowledge of the relevant
26facts.

 

 

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1    (7) "Partition by sale" means a court-ordered sale of all
2or a portion of the heirs property conducted under Section 10.
3    (8) "Partition in kind" means the division of heirs
4property into physically distinct and separately titled
5parcels.
6    (9) "Record" means information that is inscribed on a
7tangible medium or that is stored in an electronic or other
8medium and is retrievable in perceivable form.
9    (10) "Relative" means an ascendant, descendant, or
10collateral or an individual otherwise related to another
11individual by blood, marriage, adoption, or law of this State
12other than this Act.
 
13    Section 3. Applicability; relation to other law.
14    (a) This Act applies to partition actions filed on or after
15the effective date of this Act.
16    (b) In an action to partition real property under Article
17XVII of the Code of Civil Procedure the court shall determine
18whether the property is heirs property. If the court determines
19that the property is heirs property, the property must be
20partitioned under this Act unless all of the cotenants
21otherwise agree in a record.
22    (c) This Act supplements Article XVII of the Code of Civil
23Procedure and, if an action is governed by this Act, replaces
24provisions of Article XVII of the Code of Civil Procedure that
25are inconsistent with this Act.
 

 

 

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1    Section 4. Service; notice by posting.
2    (a) This Act does not limit or affect the method by which
3service of a complaint in a partition action may be made.
4    (b) If the plaintiff in a partition action seeks an order
5of notice by publication and the court determines that the
6property may be heirs property, the plaintiff, not later than
710 days after the court's determination, shall post and
8maintain while the action is pending a conspicuous sign on the
9property that is the subject of the action. The sign must state
10that the action has commenced and identify the name and address
11of the court and the common designation by which the property
12is known. The court may require the plaintiff to publish on the
13sign the name of the plaintiff and the known defendants.
 
14    Section 5. Commissioners. If the court appoints a
15commissioner pursuant to Article XVII of the Code of Civil
16Procedure, the commissioner, in addition to the requirements
17and disqualifications applicable to commissioners in Article
18XVII of the Code of Civil Procedure, must be disinterested and
19impartial and not a party to or a participant in the action.
 
20    Section 6. Determination of value.
21    (a) Except as otherwise provided in subsections (b) and
22(c), if the court determines that the property that is the
23subject of a partition action is heirs property, the court

 

 

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1shall determine the fair market value of the property by
2ordering an appraisal pursuant to subsection (d).
3    (b) If all cotenants have agreed to the value of the
4property or to another method of valuation, the court shall
5adopt that value or the value produced by the agreed method of
6valuation.
7    (c) If the court determines that the evidentiary value of
8an appraisal is outweighed by the cost of the appraisal, the
9court, after an evidentiary hearing, shall determine the fair
10market value of the property and shall order the plaintiff to
11send notice to the parties of the value.
12    (d) If the court orders an appraisal, the court shall
13appoint a disinterested real estate appraiser licensed in this
14State to determine the fair market value of the property
15assuming sole ownership of the fee simple estate. On completion
16of the appraisal, the appraiser shall file a sworn or verified
17appraisal with the court.
18    (e) If an appraisal is conducted pursuant to subsection
19(d), not later than 10 days after the appraisal is filed, the
20court shall order the plaintiff to send notice to each party
21with a known address, stating:
22        (1) the appraised fair market value of the property;
23        (2) that the appraisal is available at the clerk's
24    office; and
25        (3) that a party may file with the court an objection
26    to the appraisal not later than 30 days after the notice is

 

 

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1    sent, stating the grounds for the objection.
2    (f) If an appraisal is filed with the court pursuant to
3subsection (d), the court shall conduct a hearing to determine
4the fair market value of the property not sooner than 30 days
5after a copy of the notice of the appraisal is sent to each
6party under subsection (e), whether or not an objection to the
7appraisal is filed under subsection (e)(3). In addition to the
8court-ordered appraisal, the court may consider any other
9evidence of value offered by a party.
10    (g) After a hearing under subsection (f), but before
11considering the merits of the partition action, the court shall
12determine the fair market value of the property and order the
13plaintiff to send notice to all of the parties of the value and
14a cotenant's buyout rights as provided in Section 7.
 
15    Section 7. Cotenant buyout.
16    (a) If any cotenant requested partition by sale, after the
17determination of value under Section 6, the court shall order
18the plaintiff to send notice to the parties that any cotenant
19except a cotenant that requested partition by sale may buy all
20the interests of the cotenants that requested partition by
21sale.
22    (b) Not later than 45 days after the notice is sent under
23subsection (a), any cotenant except a cotenant that requested
24partition by sale may give notice to the court that it elects
25to buy all the interests of the cotenants that requested

 

 

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1partition by sale.
2    (c) The purchase price for each of the interests of a
3cotenant that requested partition by sale is the value of the
4entire parcel determined under Section 6 multiplied by the
5cotenant's fractional ownership of the entire parcel.
6    (d) After expiration of the period in subsection (b), the
7following rules apply:
8        (1) If only one cotenant elects to buy all the
9    interests of the cotenants that requested partition by
10    sale, the court shall notify all the parties of that fact.
11        (2) If more than one cotenant elects to buy all the
12    interests of the cotenants that requested partition by
13    sale, the court shall allocate the right to buy those
14    interests among the electing cotenants based on each
15    electing cotenant's existing fractional ownership of the
16    entire parcel divided by the total existing fractional
17    ownership of all cotenants electing to buy and send notice
18    to all the parties of that fact and of the price to be paid
19    by each electing cotenant.
20        (3) If no cotenant elects to buy all the interests of
21    the cotenants that requested partition by sale, the court
22    shall order the plaintiff to send notice to all the parties
23    of that fact and resolve the partition action under Section
24    8(a) and (b).
25    (e) If the court sends notice to the parties under
26subsection (d)(1) or (2), the court shall set a date, not

 

 

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1sooner than 60 days after the date the notice was sent, by
2which electing cotenants must pay their apportioned price to
3the clerk of court or as otherwise ordered by the court. After
4this date, the following rules apply:
5        (1) If all electing cotenants timely pay their
6    apportioned price to the clerk of court or as otherwise
7    ordered by the court, the court shall issue an order
8    reallocating all the interests of the cotenants and
9    disburse the amounts held to the persons entitled to them.
10        (2) If no electing cotenant timely pays its apportioned
11    price, the court shall resolve the partition action under
12    Section 8(a) and (b) as if the interests of the cotenants
13    that requested partition by sale were not purchased.
14        (3) If one or more but not all of the electing
15    cotenants fail to pay their apportioned price on time, the
16    court, on motion, shall order the plaintiff to give notice
17    to the electing cotenants that paid their apportioned price
18    of the interest remaining and the price for all that
19    interest.
20    (f) Not later than 20 days after the court gives notice
21pursuant to subsection (e)(3), any cotenant that paid may elect
22to purchase all of the remaining interest by paying the entire
23price into the court. After the 20-day period, the following
24rules apply:
25        (1) If only one cotenant pays the entire price for the
26    remaining interest, the court shall issue an order

 

 

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1    reallocating the remaining interest to that cotenant. The
2    court shall issue promptly an order reallocating the
3    interests of all of the cotenants and disburse the amounts
4    held to the persons entitled to them.
5        (2) If no cotenant pays the entire price for the
6    remaining interest, the court shall resolve the partition
7    action under Section 8(a) and (b) as if the interests of
8    the cotenants that requested partition by sale were not
9    purchased.
10        (3) If more than one cotenant pays the entire price for
11    the remaining interest, the court shall reapportion the
12    remaining interest among those paying cotenants, based on
13    each paying cotenant's original fractional ownership of
14    the entire parcel divided by the total original fractional
15    ownership of all cotenants that paid the entire price for
16    the remaining interest. The court shall issue promptly an
17    order reallocating all of the cotenants' interests,
18    disburse the amounts held to the persons entitled to them,
19    and promptly refund any excess payment held by the clerk of
20    court or as ordered by the court.
21    (g) Not later than 45 days after notice is sent to the
22parties pursuant to subsection (a), any cotenant entitled to
23buy an interest under this section may request the court to
24authorize the sale as part of the pending action of the
25interests of cotenants named as defendants and served with the
26complaint but that did not appear in the action.

 

 

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1    (h) If the court receives a timely request under subsection
2(g), the court, after hearing, may deny the request or
3authorize the requested additional sale on such terms as the
4court determines are fair and reasonable, subject to the
5following limitations:
6        (1) a sale authorized under this subsection may occur
7    only after the purchase prices for all interests subject to
8    sale under subsections (a) through (f) have been paid into
9    court and those interests have been reallocated among the
10    cotenants as provided in those subsections; and
11        (2) the purchase price for the interest of a
12    nonappearing cotenant is based on the court's
13    determination of value under Section 6.
 
14    Section 8. Partition alternatives.
15    (a) If all the interests of all cotenants that requested
16partition by sale are not purchased by other cotenants pursuant
17to Section 7, or if after conclusion of the buyout under
18Section 7, a cotenant remains that has requested partition in
19kind, the court shall order partition in kind unless the court,
20after consideration of the factors listed in Section 9, finds
21that partition in kind will result in manifest prejudice to the
22cotenants as a group. In considering whether to order partition
23in kind, the court shall approve a request by two or more
24parties to have their individual interests aggregated.
25    (b) If the court does not order partition in kind under

 

 

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1subsection (a), the court shall order partition by sale
2pursuant to Section 10 or, if no cotenant requested partition
3by sale, the court shall dismiss the action.
4    (c) If the court orders partition in kind pursuant to
5subsection (a), the court may require that one or more
6cotenants pay one or more other cotenants amounts so that the
7payments, taken together with the value of the in-kind
8distributions to the cotenants, will make the partition in kind
9just and proportionate in value to the fractional interests
10held.
11    (d) If the court orders partition in kind, the court shall
12allocate to the cotenants that are unknown, unlocatable, or the
13subject of a default judgment, if their interests were not
14brought pursuant to Section 7, a party of the property
15representing the combined interests of those cotenants as
16determined by the court.
 
17    Section 9. Consideration for partition in kind.
18    (a) In determining under Section 8(a) whether partition in
19kind would result in manifest prejudice to the cotenants as a
20group, the court shall consider the following:
21        (1) whether the heirs property practicably can be
22    divided among the cotenants;
23        (2) whether partition in kind would apportion the
24    property in such a way that the aggregate fair market value
25    of the parcels resulting from the division would be

 

 

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1    materially less than the value of the property if it were
2    sold as a whole, taking into account the condition under
3    which a court-ordered sale likely would occur;
4        (3) evidence of the collective duration of ownership or
5    possession of the property by a cotenant and one or more
6    predecessors in title or predecessors in possession to the
7    cotenant who are or were relatives of the cotenant or each
8    other;
9        (4) a cotenant's sentimental attachment to the
10    property, including any attachment arising because the
11    property has ancestral or other unique or special value to
12    the cotenant;
13        (5) the lawful use being made of the property by a
14    cotenant and the degree to which the cotenant would be
15    harmed if the cotenant could not continue the same use of
16    the property;
17        (6) the degree to which the cotenants have contributed
18    their pro rata share of the property taxes, insurance, and
19    other expenses associated with maintaining ownership of
20    the property or have contributed to the physical
21    improvement, maintenance, or upkeep of the property;
22        (7) the tax consequences; and
23        (8) any other relevant factor.
24    (b) The court may not consider any one factor in subsection
25(a) to be dispositive without weighing the totality of all
26relevant factors and circumstances.
 

 

 

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1    Section 10. Open-market sale, sealed bids, or auction.
2    (a) If the court orders a sale of heirs property, the sale
3must be an open-market sale unless the court finds that a sale
4by sealed bids or an auction would be more economically
5advantageous and in the best interest of the cotenants as a
6group.
7    (b) If the court orders an open-market sale and the
8parties, not later than 10 days after the entry of the order,
9agree on a real estate broker licensed in this State to offer
10the property for sale, the court shall appoint the broker and
11establish a reasonable commission. If the parties do not agree
12on a broker, the court shall appoint a disinterested real
13estate broker licensed in this State to offer the property for
14sale and shall establish a reasonable commission. The broker
15shall offer the property for sale in a commercially reasonable
16manner at a price no lower than the determination of value and
17on the terms and conditions established by the court.
18    (c) If the broker appointed under subsection (b) obtains
19within a reasonable time an offer to purchase the property for
20at least the determination of value:
21        (1) the broker shall comply with the reporting
22    requirements in Section 11; and
23        (2) the sale may be completed in accordance with state
24    law other than this Act.
25    (d) If the broker appointed under subsection (b) does not

 

 

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1obtain within a reasonable time an offer to purchase the
2property for at least the determination of value, the court,
3after hearing, may:
4        (1) approve the highest outstanding offer, if any;
5        (2) redetermine the value of the property and order
6    that the property continue to be offered for an additional
7    time; or
8        (3) order that the property be sold by sealed bids or
9    at an auction.
10    (e) If the court orders a sale by sealed bids or an
11auction, the court shall set terms and conditions of the sale.
12If the court orders an auction, the auction must be conducted
13under Article XVII of the Code of Civil Procedure.
14    (f) If a purchaser is entitled to a share of the proceeds
15of the sale, the purchaser is entitled to a credit against the
16price in an amount equal to the purchaser's share of the
17proceeds.
 
18    Section 11. Report of open-market sale.
19    (a) Unless required to do so within a shorter time by
20Article XVII of the Code of Civil Procedure, a broker appointed
21under Section 10(b) to offer heirs property for open-market
22sale shall file a report with the court not later than seven
23days after receiving an offer to purchase the property for at
24least the value determined under Section 6 or 10.
25    (b) The report required by subsection (a) must contain the

 

 

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1following information:
2        (1) a description of the property to be sold to each
3    buyer;
4        (2) the name of each buyer;
5        (3) the proposed purchase price;
6        (4) the terms and conditions of the proposed sale,
7    including the terms of any owner financing;
8        (5) the amounts to be paid to lienholders;
9        (6) a statement of contractual or other arrangements or
10    conditions of the broker's commission; and
11        (7) other material facts relevant to the sale.
 
12    Section 12. Costs. In all proceedings for the partition of
13heirs property, the court shall apportion the costs of the
14proceedings, including a reasonable fee for the plaintiff's
15attorney, among the parties in interest in the action, as the
16court deems just and equitable. In determining the just and
17equitable apportionment of the costs and attorney's fees, the
18court may consider, among other things, the good faith attempt
19of the parties to agree prior to the initiation of the
20complaint. If any defendant interposes a good and substantial
21defense to the complaint, the party or parties making such
22substantial defense shall recover their costs against the
23plaintiff according to justice and equity.
 
24    Section 60. The Code of Civil Procedure is amended by

 

 

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1changing Sections 17-101, 17-102, 17-105, and 17-106 as
2follows:
 
3    (735 ILCS 5/17-101)  (from Ch. 110, par. 17-101)
4    Sec. 17-101. Compelling partition. When lands, tenements,
5or hereditaments are held in joint tenancy or tenancy in
6common, other than in accordance with the Uniform Partition of
7Heirs Property Act, or other form of co-ownership and
8regardless of whether any or all of the claimants are minors or
9adults, any one or more of the persons interested therein may
10compel a partition thereof by a verified complaint in the
11circuit court of the county where the premises or part of the
12premises are situated. If lands, tenements or hereditaments
13held in joint tenancy or tenancy in common are situated in 2 or
14more counties, the venue may be in any one of such counties,
15and the circuit court of any such county first acquiring
16jurisdiction shall retain sole and exclusive jurisdiction.
17Ownership of an interest in the surface of lands, tenements, or
18hereditaments by a co-owner of an interest in minerals
19underlying the surface does not prevent partition of the
20mineral estate. This amendatory Act of the 92nd General
21Assembly is a declaration of existing law and is intended to
22remove any possible conflicts or ambiguities, thereby
23confirming existing law pertinent to the partition of interests
24in minerals and applies to all actions for the partition of
25minerals now pending or filed on or after the effective date of

 

 

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1this amendatory Act of the 92nd General Assembly. Nothing in
2this amendatory Act of the 92nd General Assembly shall be
3construed as allowing an owner of a mineral interest in coal to
4mine and remove the coal by the surface method of mining
5without first obtaining the consent of all of the owners of the
6surface to the mining and removal of coal by the surface method
7of mining. Ownership of an interest in minerals by a co-owner
8of an interest in the surface does not prevent partition of the
9surface. The ownership of an interest in some, but not all, of
10the mineral estate by a co-owner of an interest in other
11minerals does not prevent the partition of the co-owned mineral
12estate.
13(Source: P.A. 92-379, eff. 8-16-01; 93-925, eff. 8-12-04.)
 
14    (735 ILCS 5/17-102)  (from Ch. 110, par. 17-102)
15    Sec. 17-102. Complaint. The verified complaint shall
16particularly describe the premises sought to be divided, and
17shall set forth the interests of all parties interested
18therein, so far as the same are known to the plaintiffs,
19including tenants for years or for life, and of all persons
20entitled to the reversion, remainder or inheritance, and of
21every person who, upon any contingency, may be or become
22entitled to any beneficial interest in the premises, so far as
23the same are known to the plaintiffs, and shall ask for the
24division and partition of the premises according to the
25respective rights of the parties interested therein, or in

 

 

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1accordance with the Uniform Partition of Heirs Property Act , if
2a division and partition of the same cannot be made without
3manifest prejudice to the owners, that a sale thereof be made
4and the proceeds divided according to the respective rights of
5the parties.
6(Source: P.A. 82-280.)
 
7    (735 ILCS 5/17-105)  (from Ch. 110, par. 17-105)
8    Sec. 17-105. Judgment. The court shall ascertain and
9declare the rights, titles and interest of all the parties in
10such action, the plaintiffs as well as the defendants, and
11shall enter judgment according to the rights of the parties.
12After entry of judgment adjudicating the rights, titles, and
13interests of the parties, the court upon further hearing shall
14determine whether or not the premises or any part thereof can
15be divided among the parties without manifest prejudice to the
16parties in interest. If the court finds that a division can be
17made, then the court shall enter further judgment fairly and
18impartially dividing the premises among the parties with or
19without owelty. If the court finds that the whole or any part
20of the premises sought to be partitioned cannot be divided
21without manifest prejudice to the owners thereof and is not
22governed by the Uniform Partition of Heirs Property Act, then
23the court shall order the premises not susceptible of division
24to be sold at public sale in such manner and upon such terms
25and notice of sale as the court directs. If the court orders

 

 

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1the sale of the premises or any part thereof, the court shall
2fix the value of the premises to be sold. No sale may be
3approved for less than two-thirds of the total amount of the
4valuation of the premises to be sold. If it appears to the
5court that any of the premises will not sell for two-thirds of
6the amount of the valuation thereof, the court upon further
7hearing may either revalue the premise and approve the sale or
8order a new sale.
9(Source: P.A. 93-925, eff. 8-12-04.)
 
10    (735 ILCS 5/17-106)  (from Ch. 110, par. 17-106)
11    Sec. 17-106. Appointment of commissioner and surveyor. The
12court in its discretion, sua sponte, or on the motion of any
13interested party, must may appoint a disinterested
14commissioner who, subject to direction by the court, shall
15report to the court in writing under oath as to whether or not
16the premises are subject to division without manifest prejudice
17to the rights of the parties and, if so, report how the
18division may be made. The court may authorize the employment of
19a surveyor to carry out or assist in the division of the
20premises. The fees and expenses of the commissioner and of the
21surveyor and the person making the sale shall be taxed as costs
22in the proceedings.
23(Source: P.A. 93-925, eff. 8-12-04.)
 
24    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.".