How Florida’s Uniform Partition of Heirs Property Act Works

Florida’s Uniform Partition of Heirs Property Act gives co-owners of inherited real estate a set of protections before any court can force a sale. In effect since July 1, 2020, the law requires an independent appraisal, gives family members a 45-day right to buy out any co-owner who wants to sell, and directs courts to keep the property intact when possible or, if a sale must happen, to sell it on the open market rather than at a courthouse auction.¹ These protections kick in automatically once a court finds the property meets the statutory definition of heirs property.

What Qualifies as Heirs Property

Not every co-owned parcel is covered. The Act applies only to real estate held as a tenancy in common that meets all three of the following at the time a partition action is filed:²

The co-owners have not signed a written agreement that already governs how the property will be divided or sold.
At least one co-owner acquired their share from a relative, living or deceased.
At least 20 percent of the ownership interests are held by relatives, or at least 20 percent are held by someone who inherited from a relative, or at least 20 percent of the co-owners themselves are relatives.

“Relative” is defined broadly to include anyone related by blood, marriage, or adoption. When a partition lawsuit is filed, the court must decide on its own whether the property fits this definition before the case proceeds under the Act. If it does, the Act controls unless every co-owner agrees in writing to a different approach.³

There is no cap on how much any single co-owner can hold, and the law does not exclude property by type. Residential, farmland, and commercial parcels all qualify as long as the three conditions are met.

The Court-Ordered Appraisal

Once the court confirms the property qualifies, the next step is establishing fair market value. The court orders an independent appraisal unless all co-owners agree on a value or on a different valuation method.⁴ A narrow exception lets the court skip the appraisal and set value itself at an evidentiary hearing when the cost of an appraisal would outweigh its usefulness, which typically only applies to very low-value parcels.

The court appoints a disinterested Florida-licensed real estate appraiser, who values the property as though owned by a single person in fee simple. That means the appraisal reflects what the whole property would sell for on the open market, not a discounted fractional interest. The appraiser files a sworn report with the court.⁴

Within 10 days of the report being filed, the court notifies every co-owner with a known address. The notice states the appraised value, tells parties the full appraisal is available at the clerk’s office, and explains that anyone who disagrees has 30 days to file a written objection. The court then holds a hearing at least 31 days after that notice, whether or not anyone objects. Co-owners can present competing appraisals or expert testimony at the hearing. After it, the court sets the official fair market value.⁴

Getting Credit for What You’ve Paid

Alongside the valuation, any co-owner can ask the court for an equitable accounting. This is the mechanism for getting credit when you have been paying more than your share of property taxes, insurance, maintenance, or mortgage payments. If the accounting shows one co-owner has carried a disproportionate financial burden, the court adjusts any buyout price, purchase price, or final distribution to reflect those contributions.⁴ Documentation matters here. Keep tax receipts, insurance declarations, repair invoices, and loan statements. A co-owner who neglected their share of necessary expenses may see deductions from their eventual payout.

The 45-Day Buyout Right

If any co-owner has asked the court for a partition by sale, the Act gives the remaining co-owners a right of first refusal. After value is set, the court sends notice that any co-owner who did not request the sale may buy out the interests of those who did.⁵

Co-owners have 45 days from that notice to tell the court they want to buy. The math is simple: the purchase price equals the total appraised value multiplied by the selling co-owner’s fractional interest. If the property is worth $300,000 and the selling heir owns a one-quarter share, the buyout price is $75,000.⁵

When multiple co-owners want to buy, the court divides the purchase among them in proportion to their existing ownership shares. After the 45-day election period closes, buying co-owners get at least 60 more days to pay their share into the court. If everyone pays on time, the court records a new judgment reallocating ownership and disburses the funds to the selling co-owners. If nobody elects to buy, or if buyers fail to pay, the case moves forward.⁵

This is where most heirs property disputes are won or lost. A co-owner who wants to keep family land but ignores the 45-day window loses the right to buy. The timeline is strict, and the court will not extend it because someone did not read their mail.

Dividing the Land or Selling It

If the buyout does not resolve the dispute, the court decides whether the property can be physically divided among the co-owners. The Act strongly favors physical division, known as partition in kind. A court can order a sale only if appointed commissioners examine the statutory factors and conclude that dividing the property would harm the co-owners as a group.⁶

Commissioners weigh seven factors:⁷

Whether the land can practically be split into separate parcels.
Whether dividing the property would cause the combined value of the resulting parcels to be materially less than the whole.
How long the co-owners and their predecessors have owned or occupied the property.
Whether the property holds unique personal or family significance for any co-owner.
Whether a co-owner is actively using the property and would be harmed by losing that use.
Whether co-owners have paid their proportionate share of taxes, insurance, maintenance, and improvements.
Any other relevant factor.

No single factor is decisive; the commissioners must weigh them together.⁷ Sentimental value and length of family ownership represent a real departure from traditional partition law, which focused almost entirely on economics and would order a sale whenever division was inconvenient.

Local zoning can still block a physical division. If splitting a parcel would produce lots below the county’s minimum size, lots without road access, or lots that violate setback rules, the court cannot order that division regardless of how the statutory factors balance out. Check local land-use rules before assuming a property can be split.

Two or more co-owners may also ask the court to combine their shares into a single interest before division, which can make partition in kind workable when multiple family members want to stay on the same portion of the property.⁶

How the Open-Market Sale Works

If partition in kind is not feasible and a co-owner requested a sale, the court orders the property sold on the open market. This is the default. The court can substitute sealed bids or an auction only if it finds one of those alternatives would be more economically advantageous for the co-owners as a group.⁸

Within 10 days of the sale order, the co-owners can agree on a licensed Florida real estate broker. If they cannot agree, the court appoints one and sets a reasonable commission either way. The broker must list the property at no less than the court-determined fair market value and market it in a commercially reasonable manner.⁸

If an offer at or above the appraised value comes in within a reasonable time, the broker reports the buyer, price, and terms to the court, and the sale proceeds under normal Florida real estate law.⁹ If no acceptable offer arrives, the court has three options: approve the best existing offer, adjust the appraised value and extend the listing period, or switch to sealed bids or auction.⁸

Before this law took effect, courts routinely ordered courthouse-steps auctions that attracted only investors and often produced prices far below market value. Requiring a broker, a listing period, and a floor price tied to the appraisal substantially reduces the risk of a fire-sale outcome.

How the Money Gets Split

When a partition sale closes, several deductions come off the top before co-owners see any money. Court costs, attorney fees, and the broker’s commission are paid first. Outstanding property taxes owed at the time of sale come next. Florida law requires every party to share these costs in proportion to their ownership interest, regardless of who filed the lawsuit. If a co-owner who is also a buyer is entitled to a share of the proceeds, that share is credited against the purchase price.⁸

After costs, the remaining proceeds are divided according to each co-owner’s fractional interest, adjusted for the equitable accounting. A co-owner who paid five years of property taxes solo gets credit. A co-owner who made improvements that increased value can petition for reimbursement.⁴

What a Partition Case Costs

Filing a partition lawsuit in Florida involves several expenses. Court filing fees for civil actions generally run a few hundred dollars. The court-ordered appraisal typically costs between $300 and $800 for a standard single-family home, though complex or high-value properties can push that figure higher. If some co-owners are unknown or hard to locate, a title search to identify heirs adds cost, often between $75 and $350. Attorney fees are the biggest variable and depend on how contested the case becomes.

All of these costs are ultimately shared among the co-owners in proportion to their ownership interests, and the court can order them paid directly from the sale proceeds. Attorney fees on both sides can be charged against the proceeds if the court finds the legal work benefited the partition. Even a co-owner who did not want the partition contributes to the expense.

Tax Consequences of a Sale

Co-owners who inherited their share usually benefit from a stepped-up tax basis. Under federal law, property acquired from a deceased person receives a new basis equal to its fair market value on the date of death.¹⁰ If a parent bought a house for $40,000 in 1985 and it was worth $250,000 at their death, the heir’s basis is $250,000, and capital gains tax applies only to appreciation above that number.

A partition sale is reported on your federal return like any other real estate sale, using Form 8949 and Schedule D. Taxable gain equals your share of the net sale price (after court-approved selling costs like attorney fees, broker commissions, and court costs) minus your adjusted basis. If you held the property more than a year, the gain qualifies for long-term capital gains rates.

Several situations complicate the math. A share received as a gift rather than an inheritance takes the original owner’s basis instead of a step-up. Rental use with claimed depreciation triggers depreciation recapture at a higher rate. If the property was your primary residence for at least two of the five years before sale, you may exclude up to $250,000 of gain ($500,000 for married couples filing jointly). Talk to a tax professional before the sale closes, not after.

Mediation as an Alternative

Florida courts have broad authority to send civil cases to mediation, and partition actions are no exception. Any party to a civil dispute involving monetary damages can request court-ordered mediation, and the court must grant it as long as the requesting party can cover the cost or the cost can be divided fairly.¹¹ The court can also send the case to mediation on its own.

Mediation is often worth attempting before appraisal and buyout costs pile up. A mediator cannot force a result, but a neutral third party frequently produces agreements the family could not reach alone: one branch buying out another, a voluntary open-market sale without litigation, or a shared-use plan with a future sale date. Reaching an agreement in mediation avoids the rigid statutory timelines and gives the family more control.

Federal Help for Heirs Property Owners

The USDA’s Heirs’ Property Relending Program provides loans through approved intermediary lenders to help heirs resolve fractional ownership. Loan funds can cover the cost of buying out other heirs’ interests, title searches, appraisals, surveys, legal services, mediation, and closing costs. A borrower must be related to the previous owner by blood or marriage and must agree to complete a succession plan. The USDA gives preference to lenders operating in states that have adopted the Act, which includes Florida.¹² The program cannot be used for land improvements, building repairs, or operating expenses. Clearing title before a dispute or disaster arises is far easier than untangling it under pressure.

1
Florida Senate. CS/CS/SB 580 – Uniform Partition of Heirs Property Act
2
Florida Senate. Florida Code 64.202 – Definitions
3
Online Sunshine. Florida Code 64.203 – Applicability and Relation to Other Law
4
Florida Senate. Florida Code 64.206 – Determination of Value
5
Florida Senate. Florida Code 64.207 – Cotenant Buyout
6
Online Sunshine. Florida Code 64.208 – Partition Alternatives
7
Online Sunshine. Florida Code 64.209 – Considerations for Partition in Kind
8
Florida Senate. Florida Code 64.210 – Open-Market Sale, Sealed Bids, or Auction
9
Florida Senate. Florida Code 64.211 – Report of Open-Market Sale
10
Office of the Law Revision Counsel. 26 USC 1014 – Basis of Property Acquired From a Decedent
11
Online Sunshine. Florida Code 44.102 – Court-Ordered Mediation
12
Farmers.gov. Heirs’ Property Relending Program