New Jersey has enacted the Uniform Partition of Heirs Property Act, providing crucial protections for families who own inherited property together. This legislation, which passed the Senate with unanimous support in March 2025, addresses a significant issue affecting many families who inherit real estate from relatives.
What Constitutes Heirs Property
The Act defines “heirs property” as real estate held in tenancy in common that meets specific criteria:
- No binding agreement exists among all co-owners governing property partition
- One or more co-owners acquired their interest from a relative (living or deceased)
- At least 20% of ownership interests are held by relatives or individuals who inherited from relatives
Key Protections and Procedures
When partition actions are filed involving heirs property, the new law establishes enhanced procedural safeguards. Courts must determine whether property qualifies as heirs property and, if so, appoint a special master to oversee the partition process rather than following standard partition procedures.
The Act requires mandatory property appraisals by licensed, disinterested real estate appraisers to establish fair market value. This ensures accurate valuations that protect all parties’ interests.
Buyout Rights and Notice Requirements
A critical protection allows non-selling co-owners to purchase the interests of those seeking to force a sale. Co-owners have 30 days after receiving notice to elect to buy out those requesting partition by sale, with purchase prices based on the property’s appraised value and each owner’s fractional interest.
The legislation also mandates conspicuous notice posting on the property during pending partition actions, informing the public about ongoing legal proceedings.
Impact and Implementation
This uniform law, based on a 2010 model developed by the Uniform Law Commission, aims to prevent forced sales that often result in family land loss. By requiring appraisals, providing buyout opportunities, and establishing fair procedures, the Act helps preserve generational wealth and family property ownership in New Jersey communities.