Property ownership is a key source of wealth building and intergenerational wealth transfer for many families. But these outcomes can be undermined because of heirs’ property. Heirs’ property occurs when a home is passed down to multiple people without a clear title. The lack of clear ownership of the home increases the risk of legal challenges for its owners because of family disagreements or because of outside investors aiming to acquire the home. And it can result in a forced sale of the property and the loss of property wealth. The Uniform Partition of Heirs’ Property Act (UPHPA) provides due process protections for heirs’ property owners facing partition actions, reducing the likelihood of a forced property sale and broader wealth extraction.

Why This Matters

Heirs’ property is an unstable form of property ownership that can result in property loss. For example, an investor or family member can obtain fractional ownership of an heirs’ property and force a sale, often at a price below its market value. The UPHPA added protections for heirs’ property owners by providing additional time for owners to challenge the partition action, encouraging lawyers and judges to consider the nonmarket value of a home when determining outcomes in partition cases, and requiring the home to be sold at its market value.

What We Found

We focused our analysis on Georgia—Atlanta in particular, which enacted the UPHPA in 2012. Georgia was an early adopter of the UPHPA, giving more time for its impact to be observed. Our qualitative study suggests that the UPHPA in Georgia has provided protections to heirs’ property owners in partition actions and reduced the incentives for outside investors to attempt partition actions. But we find that the legal and economic landscape that the UPHPA operates can still undermine heirs’ property owners:

• Cost barriers for heirs: The UPHPA allows heirs’ property owners to buy out the interest of opposing heirs to avoid partition or sale of the property. But heirs’ property owners do not often have the liquid resources to take advantage of this provision, particularly within the law’s 45-day window.
• Lack of knowledge and awareness of the UPHPA among some lawyers and judges: Many law students, practicing attorneys, and judges are not aware of the UPHPA and how it affects the partition process. This reduces the likelihood that the law is applied in a case where it should. And it limits the number of lawyers with the knowledge to take on partition cases and provide legal representation to heirs’ property owners.
• Addressing emerging challenges for heirs’ property owners: The UPHPA has likely reduced the incentives for outside investors to use partitions to acquire heirs’ properties, but heirs’ property owners may still encounter these investors through other processes, such as property tax foreclosures.

How We Did It

First, we provide an overview of the UPHPA by citing the literature and outcomes under the law. Second, we highlight takeaways from seven interviews with Atlanta-based stakeholders that have supported the UPHPA’s implementation. Third, we synthesize our interview findings with property records data to illustrate heirs’ property trends in Atlanta.