§ 29-27-307 — Cotenant buyout

Tennessee § 29-27-307

• Jurisdiction: Tennessee
• Title: 29

Text

(a) If any cotenant requested partition by sale, then the plaintiff shall send notice to the parties after the determination of value under § 29-27-306 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) No later than forty-five (45) days, or a time period as set in the court's discretion, after the notice is sent under subsection (a), any cotenant, except a cotenant that requested partition by sale, may file notice with the court and serve notice to all parties that the cotenant 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 § 29-27-306 multiplied by the cotenant's fractional ownership of the entire parcel. (d) After expiration of the period in subsection (b), a party may move the court to set a hearing to determine the allocation of the interests, subject to the following rules: (1) If only one (1) cotenant elects to buy all the interests of the cotenants that requested partition by sale, then the court shall notify all the parties of that fact at the hearing; (2) If more than one (1) cotenant elects to buy all the interests of the cotenants that requested partition by sale, then 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; and (3) If no cotenant elects to buy all the interests of the cotenants that requested partition by sale, then, at the hearing, the court shall order the plaintiff to send notice to all the parties of that fact and resolve the partition action under § 29-27-308(a) and (b) . (e) If the notice is sent to the parties under subdivision (d)(1) or (d)(2), then the court shall set a date, no sooner than sixty (60) days after the date the notice was sent, by which electing cotenants must appear and pay their apportioned price to the court. At this hearing, the following rules apply: (1) If all electing cotenants appear before the court and timely pay their apportioned price into court, then 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 the amounts; (2) If no electing cotenant appears before the court and timely pays its apportioned price, then the court shall resolve the partition action under § 29-27-308(a) and (b) , as if the interests of the cotenants that requested partition by sale were not purchased; and (3) If one (1) or more but not all of the electing cotenants appears before the court and fails to pay their apportioned price on time, then the court shall order the plaintiff to give notice to the electing cotenants that paid their apportioned price of the interest remaining and the price for all remaining interest. (f) At a hearing no later than twenty (20) days after the notice is given pursuant to subdivision (e)(3), or a time period as set in the court's discretion, any cotenant that paid may elect to purchase all of the remaining interest by paying the entire price to the court. At the hearing, the following rules apply: (1) If only one (1) cotenant pays the entire price for the remaining interest, then the court shall issue an order reallocating the remaining interest to that cotenant. The court shall issue an order reallocating the interests of all of the cotenants and disburse the amounts held by the court to the persons entitled to the amounts; (2) If no cotenant pays the entire price for the remaining interest, then the court shall resolve the partition action under § 29-27-308(a) and (b) , as if the interests of the cotenants that requested partition by sale were not purchased; and (3) If more than one (1) cotenant pays the entire price for the remaining interest, then 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 an order reallocating all of the cotenants' interests, disburse the amounts held by the court to the persons entitled to the amounts, and refund any excess payment held by the court. (g) No later than forty-five (45) days, or a time period as set in the court's discretion, after the notice is sent to the parties pursuant to subsection (a), any cotenant entitled to buy an interest under this section may move the court to set a hearing 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 motion under subsection (g), then the court, after a hearing, may deny the motion or authorize the requested additional sale on terms as the court determines are fair and reasonable, subject to the following limitations: (1) A sale authorized under this subsection (h) may occur only after the purchase prices for all interests subject to sale under subsections (a)-(f) have been paid to the court and those interests have been reallocated among the cotenants as provided in subsections (a)-(f); and (2) The purchase price for the interest of a nonappearing cotenant is based on the court's determination of value under § 29-27-306 .

Legislative History

Added by 2022 Tenn. Acts, ch. 1109, s 1, eff. 7/1/2022.