Amends TCA Title 29, Chapter 27 and Title 66.

Present law establishes requirements for actions to partition real property. This bill establishes requirements that will apply when the real property is heirs property. Under this bill, in an action to partition real property, the court must determine whether the property is heirs property. If the court determines that the property is heirs property, the property must be partitioned under this bill, unless all of the cotenants otherwise agree in a record. "Heirs property" means real property held in tenancy in common that satisfies all of the following requirements as of the filing of a partition action: (1) There is no agreement in a record binding all the cotenants that governs the partition of the property; (2) One or more of the cotenants acquired title from a relative, whether living or deceased; and (3) Any of the following applies: 20 percent or more of the interests are held by cotenants who are relatives; 20 percent or more of the interests are held by an individual who acquired title from a relative, whether living or deceased; or 20 percent or more of the cotenants are relatives. This bill sets out procedural requirements that apply under this bill, including certain requirements for notice/posting of the property if the court determines that the property may be heirs property. Under this bill, if the court appoints commissioners pursuant to present law provisions governing partitions, each commissioner, in addition to the requirements and disqualifications applicable to commissioners in present law, must be disinterested and impartial to the pending partition action and not a party to or a participant in the action. If the court determines that the property that is the subject of a partition action is heirs property, the court must determine the fair market value of the property by ordering an appraisal. If all cotenants have agreed to the value of the property or to another method of valuation, the court will adopt that value or the value produced by the agreed method of valuation. If the court determines that the evidentiary value of an appraisal is outweighed by the cost of the appraisal, the court, after an evidentiary hearing, will determine the fair market value of the property and send notice to the parties of the value. This bill sets out in detail applicable requirements for when the court orders an appraisal. If any cotenant requested partition by sale, after the determination of value, the court must order the plaintiff to send notice to the parties that any cotenant, except a cotenant that requested partition by sale, may buy all the interests of the cotenants that requested partition by sale. After the notice is sent, any cotenant, except a cotenant that requested partition by sale, may give notice, within a specified period of time, to the court that the cotenant elects to buy all the interests of the cotenants that requested partition by sale. The purchase price for each of the interests of a cotenant that requested partition by sale is the value of the entire parcel multiplied by the cotenant's fractional ownership of the entire parcel. After expiration of the specified time period: (1) If only one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court must notify all the parties of that fact; (2) If more than one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court must allocate the right to buy those interests among the electing cotenants based on each electing cotenant's existing fractional ownership of the entire parcel divided by the total existing fractional ownership of all cotenants electing to buy and send notice to all the parties of that fact and of the price to be paid by each electing cotenant; and (3) If no cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court must order the plaintiff to send notice to all the parties of that fact and resolve the partition action provisions set out in this bill. This bill sets out in detail other various rules that apply if the court sends notice as provided above in (1)-(3). After notice is sent regarding the right of a cotenant to buy all the interests of the cotenants that requested the partition by sale, any cotenant entitled to buy an interest may request the court to authorize the sale as part of the pending action of the interests of cotenants named as defendants and served with the complaint but that did not appear in the action. This bill sets out the requirements for such an additional sale. If all the interests of all cotenants that requested partition by sale are not purchased by other cotenants, or if after conclusion of the buyout a cotenant remains that has requested partition in kind, the court must order partition in kind unless the court finds that partition in kind will result in great prejudice to the cotenants as a group. If the court does not order partition in kind, the court must order partition by sale or, if no cotenant requested partition by sale, the court will dismiss the action. This bill sets out in detail other requirements that will apply if the court orders a sale of heirs property and requirements regarding brokers.