Bill
HB 4924
Establishes Uniform Partition of Heirs Property Act (Chapter 34) to standardize valuation and buyouts, letting co-tenants buy out or sell heirs property post-Apr 2, 2025.
Title: Property: ownership interests; Uniform Partition of Heirs Property Act; create. Amends MCL 600.3304 and adds Chapter 34 to the Revised Judicature Act.
Status / Timeline
- Sponsor: Rep. Emily Dievendorf.
- Enacted as Public Act 215 of 2024; approved by the Governor 1/17/2025.
- Effective date: April 2, 2025.
- Applies to partition actions filed after the effective date.
Purpose and intent
The act creates a statutory procedure—the "Uniform Partition of Heirs Property Act" (Chapter 34)—for court actions to partition "heirs property" (tenancy-in-common interests acquired in family/inheritance contexts). Its aim is to (1) standardize valuation and sale/buyout procedures, (2) give co‑tenants opportunities to buy out selling co‑tenants at fair market value, and (3) limit inequitable forced physical divisions or immediate sales that can strip heirs of property value.
Key definitions and scope
- "Heirs property": tenancy in common where (a) no binding record agreement governs partition, (b) one or more cotenants acquired title from a relative, and (c) at least one of three 20% thresholds is met (20%+ of interests held by relatives; or 20%+ of interests held by someone who acquired title from a relative; or 20%+ of cotenants are relatives).
- Chapter 34 supplements existing Chapter 33 (Partition); where inconsistent, Chapter 34 controls. The chapter applies only to actions filed after the Act’s effective date.
Valuation procedure
- Court must determine fair market value of the parcel (by court-ordered appraisal) unless all cotenants agree to a value/method or the court finds the appraisal’s evidentiary value is outweighed by its cost and determines value after a hearing.
- Appraiser must be disinterested and Michigan‑licensed; must file a sworn/verified appraisal with the court.
- Court must notify each party within 10 days after the appraisal is filed and provide that parties may object to the appraisal within 30 days.
- The court must hold a valuation hearing no sooner than 30 days after that notice and issue a "determination of value" before resolving partition merits.
Buyout / Partition by sale
- If one or more cotenants request partition by sale, after value determination the court must notify other cotenants that they may buy all interests of the cotenants requesting sale.
- Election window: 45 days after notice. Purchase price for each interest = (determined full‑parcel value) × (selling cotenant’s fractional ownership).
- If one or more non‑requesting cotenants elect to buy, the court allocates purchase rights among electing cotenants proportionally to their existing fractional ownership; if nobody elects to buy, the court proceeds to the partition‑in‑kind or sale process described below.
Partition in kind vs open-market sale
- If buyouts do not resolve the request, the court may order a partition in kind (physically divide and separately title parcels) or order an open‑market sale.
- The Act forbids a partition in kind that would cause "great prejudice" to cotenants as a group; it directs the court to consider enumerated factors when making that determination (the bill lists specific statutory factors).
- For an open‑market sale, the court must typically engage a real estate broker; the broker is required to file a report with the court within 7 days of receiving an offer, and the Act prescribes notification and sale procedures.
Other procedural provisions
- If notice by publication is sought and the court thinks property may be heirs property, the plaintiff must post and maintain a conspicuous sign on the property within 10 days that the action has commenced (including court name/address and common property designation).
- Court‑appointed commissioners, guardians, or guardians ad litem in these actions must be disinterested and not parties to the action.
Who is affected
- Heirs/co‑tenants owning property as tenants in common (particularly family/inherited ownerships).
- Local trial courts (additional appraisal hearings, notices, and administration).
- Licensed appraisers and real estate brokers (new court duties and reporting requirements).
- Potential fiscal impact: likely additional administrative costs for local courts for notices and hearings, though a standardized statutory procedure may reduce complexity/cost in some cases.
Fiscal note (summary)
- The bill may create administrative costs for local courts (additional hearings and notices). It also could reduce courts’ costs in some cases by providing a predictable statutory partition procedure.
For more detail
- See enacted Chapter 34 (MCL 600.3401 et seq.) and the amendment to MCL 600.3304 (effective April 2, 2025) for the full statutory text, timelines, and the listed factors courts must consider regarding prejudice and partition in kind.
Compiled from official sources — confirm details with the bill’s official record.
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