§ 12-3406 — Cotenant buyout

A. If any cotenant requested partition by sale after the determination of value pursuant to section 12-3405, subsection C, the court shall provide 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. Not later than forty-five days after the notice is provided, any cotenant, except a cotenant that requested partition by sale, may file notice with 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 shall be the fair market value of the entire parcel determined pursuant to section 12-3405, subsection C multiplied by the cotenant's fractional ownership of the entire parcel. After expiration of the forty-five-day period, 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 provide 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 provide notice to all the parties of that fact and resolve the partition action pursuant to section 12-3407.

B. If the court provides notice to the parties pursuant to subsection A, paragraph 1 or 2 of this section, the court shall set a date not sooner than ninety days after the date the notice was provided by which electing cotenants must pay their apportioned price to the court. After ninety days, the following rules apply:

1. If all electing cotenants timely pay their apportioned price, 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 pursuant to section 12-3407 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 fails to pay their apportioned price on time, the court, on motion, shall provide notice to the electing cotenants that paid their apportioned price of the interest remaining and the price for that interest.

C. Not later than twenty days after the court provides notice pursuant to subsection B, paragraph 3 of this section, any cotenant that paid may elect to purchase all of the remaining interest by paying the entire amount to the court. After the twenty-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 promptly issue an order reallocating the interests of all of the cotenants and disburse the amounts held by the court 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 pursuant to section 12-3407 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 promptly issue an order reallocating all of the cotenants' interests, disburse the amounts held by the court to the persons entitled to them and promptly refund any excess payment held by the court.

D. Not later than forty-five days after the court provides notice to the parties pursuant to subsection A of this section, any cotenant who is 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 respondents and served with the complaint but that did not appear in the action. If the court receives a timely request pursuant to this subsection, the court, after a hearing, may deny the request or authorize the requested additional sale on such terms as the court determines are fair and reasonable, subject to all of the following:

1. A sale authorized under this subsection may occur only after the purchase prices for all interests subject to sale pursuant to subsections A, B and C of this section have been paid to the court and those interests have been reallocated among the cotenants as provided in subsections A, B and C of this section.

2. The purchase price for the interest of a nonappearing cotenant is based on the court's determination of value pursuant to section 12-3405, subsection C.