SOUTHERN CITY Quarter 4 2022 30 There is a solution, even if won’t solve every problem in every community for every family. Twenty states—including Virginia, South Carolina, Georgia, Mississippi, and Alabama—have passed model legislation called the Uniform Partition of Heirs Property Act. These laws create a fairer disposition process, allowing all heirs an opportunity to buy property before an outside party. They also create an orderly and easier-to-navigate process for families to clear up titles to heirs proper, meaning that vacant properties can be put back on the market. Also, the legislation makes it more likely that families could qualify for mortgages, home improvement loans and disaster assistance. A key protection included in the bill is that an appraisal is required if there is a court disposition process, and then house must be placed on the open market at that appraised price. “So at least the family will get a fair price, even if they are forced to sell,” Su said. “This is not anti-development. Developers can still make their money.” Similar legislation was introduced on a bipartisan basis in North Carolina in 2021. While the bill cleared the state House, it was not taken up in the state Senate. The legislation is also supported by a range of advocacy groups. NCLM’s support was shown when members approved a legislative goal for the 2021–22 biennium reading, “Revitalize vacant and abandoned properties with enhanced legal tools and funding.” As noted earlier, the legislation is not a panacea. It still relies on the good faith of judges to follow the law’s intent to ensure that homes are sold in a true open market and to properly oversee any court special masters who are tasked with doing the same. It won’t fix the problem of individuals failing to create wills in the first place. And, local governments themselves may be able to help address some aspects of the problem, regardless of the passage of the law, as they influence the process in cases where tax liens are involved. But there is a clear need for reform. As the League of Municipalities’ policy process for the next biennium is taking place, municipal officials from around the state are again raising the issue of “tangled titles” and vacant properties. It is highly likely that a significant push for passage of the model legislation to create better outcomes—for individuals, families, and cities, and towns—will place again take in North Carolina in 2023. This time, the legislation may cross the finish line, and become law. continued from page 29 Addressing Vacant Properties and Tangled Titles Even as the problems associated with heirs property have existed for decades, the recent increase in housing prices seems to have caused an escalation in abuse of the current law.
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