§ 18-60-1007 — Cotenant buyout

Arkansas § 18-60-1007

• Jurisdiction: Arkansas
• Title: 18

Text

(a) If any cotenant requested partition by sale, after the determination of value under § 18-60-1006 , the court shall 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. (b) Not later than 45 days after the notice is sent under subsection (a), any cotenant except a cotenant that requested partition by sale may give notice to the court that it elects to buy all the interests of the cotenants that requested partition by sale. (c) The purchase price for each of the interests of a cotenant that requested partition by sale is the value of the entire parcel determined under § 18-60-1006 multiplied by the cotenant's fractional ownership of the entire parcel. (d) After expiration of the period in subsection (b), the following rules apply: (1) If only one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court shall 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 shall 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. (3) If no cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court shall send notice to all the parties of that fact and resolve the partition action under § 18-60-1008(a) and (b) . (e) If the court sends notice to the parties under subdivision (d)(1) or (2), the court shall set a date, not sooner than 60 days after the date the notice was sent, by which electing cotenants must pay their apportioned price into the court. After this date, the following rules apply: (1) If all electing cotenants timely pay their apportioned price into court, the court shall issue an order reallocating all the interests of the cotenants and disburse the amounts held by the court to the persons entitled to them. (2) If no electing cotenant timely pays its apportioned price, the court shall resolve the partition action under § 18-60-1008(a) and (b) as if the interests of the cotenants that requested partition by sale were not purchased. (3) If one or more but not all of the electing cotenants fail to pay their apportioned price on time, the court shall give notice to the electing cotenants that paid their apportioned price of the interest remaining and the price for all that interest. (f) Not later than 20 days after the court gives notice pursuant to subdivision (e)(3), any cotenant that paid may elect to purchase all of the remaining interest by paying the entire price into the court. After the 20-day period, the following rules apply: (1) If only one cotenant pays the entire price for the remaining interest, the court shall issue an order reallocating the remaining interest to that cotenant. The court shall issue promptly an order reallocating the interests of all of the cotenants and disburse the amounts held by it to the persons entitled to them. (2) If no cotenant pays the entire price for the remaining interest, the court shall resolve the partition action under § 18-60-1008(a) and (b) as if the interests of the cotenants that requested partition by sale were not purchased. (3) If more than one cotenant pays the entire price for the remaining interest, the court shall reapportion the remaining interest among those paying cotenants, based on each paying cotenant's original fractional ownership of the entire parcel divided by the total original fractional ownership of all cotenants that paid the entire price for the remaining interest. The court shall issue promptly an order reallocating all of the cotenants' interests, disburse the amounts held by it to the persons entitled to them, and promptly refund any excess payment held by the court. (g) Not later than 45 days after the court sends notice to the parties pursuant to subsection (a), any cotenant entitled to buy an interest under this section 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. (h) If the court receives a timely request under subsection (g), the court, after hearing, may deny the request or authorize the requested additional sale on such terms as the court determines are fair and reasonable, subject to the following limitations: (1) a sale authorized under this subsection may occur only after the purchase prices for all interests subject to sale under subsections (a) through (f) have been paid into court and those interests have been reallocated among the cotenants as provided in those subsections; and (2) the purchase price for the interest of a nonappearing cotenant is based on the court's determination of value under § 18-60-1006 .

Legislative History

Added by Act 2015, No. 107,§ 1, eff. 1/1/2016.