Amendment 4998 to House Bill 2232 P.N. 2986, Regular Session 2023-2024

H2232B2986A04998 SFL:AAS 06/14/24 #90 A04998

AMENDMENTS TO HOUSE BILL NO. 2232

Sponsor: REPRESENTATIVE N. NELSON

Printer's No. 2986

Amend Bill, page 1, by inserting between lines 9 and 10

Sec.

Amend Bill, page 1, by inserting between lines 12 and 13

21A23.1. Right of first refusal required.

Amend Bill, page 1, by inserting between lines 13 and 14

21A24.1. Settlement conference.

Amend Bill, page 2, by inserting between lines 19 and 20

"Cotenant." One of two or more individuals who together hold

an ownership interest in real property as tenants in common.

Amend Bill, page 3, line 3, by inserting after "acquired"

an equitable interest in the property via testate or

intestate succession or acquired

Amend Bill, page 4, by inserting between lines 6 and 7

§ 21A23.1. Right of first refusal required.

When a cotenant receives a bona fide offer from a noncotenant

to purchase a share or shares of an heir's property and the

cotenant intends to accept or respond with a counteroffer, the

cotenants who inherited their share or shares of the property or

the cotenants who are relatives to those cotenants who inherited

their share or shares of the property shall have the right to

purchase the shares for the identical price, terms and

conditions of the offer or counteroffer, with first priority to

a cotenant who is in possession of the heir's property as their

primary residence and second priority to a cotenant who

otherwise utilizes the property.

Amend Bill, page 4, by inserting between lines 21 and 22

§ 21A24.1. Settlement conference.

(a) General rule.--In a partition action of heirs property,

after service and notice under section 21A24 (relating to

service and notice by posting) and before additional action is

taken, the court shall hold a mandatory settlement conference

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within 60 days after the date of determination of heirs property

under section 21A23(b) (relating to applicability and relation

to other law), or on a date agreed to by the parties, for the

purpose of holding settlement discussions.

(b) Notice.--After an heirs property determination is made

under section 21A23(b), the court shall promptly send a notice

to parties advising them of the time and place of the settlement

conference, the purpose of the conference and the requirements

of this section. The notice shall be in a form prescribed by the

Administrative Office of Pennsylvania Courts or, at the

discretion of the Administrative Office of Pennsylvania Courts,

the administrative judge of the judicial district in which the

action is pending. The plaintiff in the partition action shall

post a copy of the settlement conference notice in a conspicuous

place on the property within 20 days of the date of the notice.

adjourned or reconvened during the pendency of the partition

action. At a conference held under this section, if the

defendant is appearing pro se, the court shall advise the

defendant of the nature of the action and the defendant's rights

and responsibilities as a defendant.

(d) Notice after failure to answer.--The following shall

apply:

(1) At the first settlement conference held under this

section, if the defendant has not filed a responsive

pleading, the court shall:

(i) advise the defendant of the requirement to

respond to the complaint;

(ii) explain what is required to respond to a

complaint in court;

(iii) advise the defendant that the ability to

contest the partition action and assert defenses may be

lost if a response is not filed;

(iv) set a deadline for any cotenants requesting

partition by sale; and

(v) provide information about available resources

for legal assistance.

(2) A defendant who appears at the settlement conference

but fails to file a timely responsive pleading shall be

presumed to have a reasonable excuse for the default and

shall be permitted to serve and file a responsive pleading,

without any substantive defenses deemed to have been waived,

within 30 days of initial appearance at the settlement

conference. The default shall be deemed vacated upon service

and filing of an answer or other responsive pleading.

(e) Good faith negotiation required.--The plaintiffs and

defendants shall negotiate in good faith to reach a mutually

agreeable resolution, including, but not limited to, a tenancy

in common agreement, a cotenant buyout and the allocation,

mechanics and financing thereof or any other agreement or loss

mitigation that is fair and reasonable considering the totality

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of factors.

(f) Failure to reach resolution.--If the parties do not

reach a mutually agreeable resolution, a judicial hearing

officer or other staff designated by the court to oversee the

settlement conference process shall make a report of findings of

fact, conclusions of law and recommendations for relief to the

court concerning any party's failure to negotiate in good faith

under subsection (e). If the court determines a plaintiff has

failed to negotiate in good faith, the court shall dismiss the

partition action.

(g) Abeyance allowed.--Motions submitted by a party to the

action may be held in abeyance while the settlement conference

process is ongoing, except for motions concerning:

(1) a determination of the percentage interests, if any,

owned by any alleged cotenant if the interests are in

dispute; and

(2) compliance with this section, including applications

to extend deadlines specified in this section.

Amend Bill, page 7, line 23, by inserting after "court."

In determining an appropriate date by which electing

cotenants must pay their apportioned price into the court, the

court shall consider the time necessary to obtain financing and

may extend the deadline upon request.

Amend Bill, page 10, line 4, by inserting after "in" where it

occurs the second time

great

Amend Bill, page 10, line 30, by inserting after "in"

great

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