Summary: For partition actions filed on or after September 14, 2024, Arizona’s Uniform Partition of Heirs Property Act (A.R.S. §§ 12-3401 to 12-3412) adds protections when the co-owners are family members who inherited the property. It requires a court-ordered appraisal, gives family members a right to buy out a co-owner who wants to sell, and favors keeping the land in the family.
When a parent or grandparent dies without a detailed estate plan, the family home or land often passes to several heirs as tenants in common. Over time the ownership splinters. Some heirs live on the property, some live out of state, and some just want their share in cash. Under ordinary partition law, any one co-owner could force a sale of the entire property, sometimes at a price well below what it’s worth.
Arizona’s Heirs Property Act was passed to change that for families.
What Counts as “Heirs Property”?
Under A.R.S. § 12-3402, real property is “heirs property” if, when the partition action is filed, all of the following are true:
- It is held as a tenancy in common.
- There is no binding written agreement among the co-owners that governs partition.
- At least one co-owner got title from a relative.
- One of these is true:
- 20% or more of the ownership interests belong to relatives, or
- 20% or more of the interests belong to people who got title from a relative, or
- 20% or more of the co-owners are relatives.
“Relative” is defined broadly. It includes ancestors, descendants and collateral relatives such as siblings, nieces, nephews and cousins, as well as anyone related by blood, marriage or adoption.
If the court finds the property qualifies, the case must proceed under the Heirs Property Act unless every co-owner agrees otherwise (§ 12-3404).
When Does the Act Apply?
The act applies only to partition actions filed on or after September 14, 2024 (§ 12-3403). Cases filed before that date follow Arizona’s standard partition statutes.
Key Protections Under the Act
1. Notice Posted on the Property
If a co-owner is served by publication, the plaintiff must also post a conspicuous sign on the property within 10 days of the court’s finding that it may be heirs property. The sign must stay up while the case is pending (§ 12-3404). The goal is that relatives who live far away, or whose addresses are unknown, actually find out about the case.
2. Court-Ordered Appraisal
The court generally orders an appraisal by a disinterested, Arizona-licensed appraiser to set the property’s fair market value (§ 12-3405). There are two exceptions. The co-owners can all agree on a value or a way to set it, or the court can decide an appraisal would cost more than it’s worth and hold an evidentiary hearing instead. Any party can object to the appraisal within 30 days, and the court then sets the value.
3. The Right to Buy Out the Co-Owner Who Wants to Sell
This is the most important change. Under A.R.S. § 12-3406, if any co-owner asks the court to sell the property:
- The other co-owners have 45 days after notice of the court’s valuation to elect to buy out the co-owner(s) who want to sell.
- The price is fair market value times the seller’s ownership percentage. For example, if the court values the property at $400,000 and the seller owns 25%, the buyout price is $100,000.
- If more than one family member elects to buy, the interest is split among them according to the shares they already own.
- The court sets a payment deadline of at least 90 days after notice.
- If some buyers pay and others don’t, the ones who paid get 20 days to buy the rest.
A family member who wants to keep the property can buy out a relative at a fair price, instead of watching the whole property go to auction.
4. A Preference for Dividing the Land Instead of Selling It
If no buyout happens, the court must order partition in kind, meaning a physical division, unless that would cause “manifest prejudice to the cotenants as a group” (§ 12-3407). When deciding, the court weighs factors under § 12-3408, including:
- Whether the property can practically be divided
- Whether the divided parcels would be worth materially less than the whole
- How long the family has owned or lived on the property
- Sentimental or ancestral attachment to the land
- The current lawful use of the property and the harm of losing it
- Who has paid taxes, insurance, maintenance and upkeep
- Any other relevant factor
No single factor decides the case. And if no co-owner asked for a sale, the court can’t order one. It dismisses the case instead.
5. If There’s a Sale, It Must Be a Fair One
If the court does order a sale, § 12-3409 makes the default an open-market sale through a licensed real estate broker, not a courthouse auction. The parties can agree on a broker within 10 days, or the court appoints a disinterested one. The property can’t be offered for less than the court-determined fair market value. The court can order sealed bids or an auction only if it finds that would bring more money and serve the co-owners’ best interests.
6. Impartial Commissioners
If the court appoints commissioners to divide the property, each one must be disinterested and impartial and can’t be a party to or participant in the case (§ 12-3410).
Probate Cases
If the property is still in an open estate, A.R.S. § 14-3911 lets the personal representative or an heir ask the probate court to partition the property before the estate closes. For property that qualifies as heirs property, the court can apply the Heirs Property Act.
What This Means for You
If you want to keep the family property, the act gives you real tools: an independent appraisal, a right to buy out relatives who want to sell, and a court that has to consider your family’s history with the land.
If you want to sell your share, you can still get fair value for it. The process may take longer, though, and a relative may end up buying your interest rather than the property going on the open market.
Either way, the deadlines are short and strict. Missing the 45-day election window or the payment deadline can mean losing your buyout rights.
Related: What are the requirements for a partition action in Arizona? · Can I force the sale of inherited property in Arizona? · What information should a co-owner gather for a partition action
For an overview of how partition works in Arizona, see the Arizona partition actions guide.
Talk to an Arizona Inherited Property Attorney
Inherited property disputes are about more than money. They involve family history and relationships. Scott Resnick Law helps Arizona families work through co-ownership disputes over inherited homes and land, whether the goal is keeping the property or getting a fair price for your share. Contact us today to schedule a consultation.
This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Partition law depends on the facts, and statutes can change, so consult an Arizona attorney about your situation.