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Preventing land loss among rural African-Americans

Preventing land loss among rural African-Americans Tuesday, April 14th, 2009 By Rob Schofield Why are vested interests blocking legal reforms that could help stop the bleeding? Quick take: Last week at the General Assembly, members of a House committee considered a bill advanced by advocates for rural African American landowners that would have improved the fairness of legal proceedings that often result in the taking of family farms. Unfortunately, as in the proceedings in question, the letter of the law and "efficiency" seem to be trumping actual justice and human decency. Here's an important issue that you probably haven't heard or thought much about lately: the loss of land by rural African Americans of modest income. For decades, the hemorrhaging of farmland has been a plague upon Black families. Here's how the folks at a North Carolina nonprofit known as the Land Loss Prevention Project describe one of the principal causes of this problem: "Like many poor people, rural African American farmers often failed to prepare wills before they died. In the absence of a proper will, state laws governed how the farmers' land was passed on to their heirs upon their death. What this usually meant was that interests in the land were passed on to a large number of people who were classified as "heirs" in the eyes of the courts, and when those heirs died themselves, their ownership interest in the land was passed on to their heirs. The result of this process is that in a relatively short period of time, ownership of small pieces of property have been split amongst hundreds (and sometimes even thousands) of people. As it stands now, any co-owner can seek the division or sale of a piece of property without regard to how much on an interest they own. What this means is that an individual who has a marginal ownership interest in a small portion of a piece of land, and who does not pay any taxes or contribute to maintaining the land in any way, can force the co-owners who are actually using the land to sell their portion as well." "Partition sales" The legal process by which some heirs can force the sale of the property in such a situation is referred to as a "partition" and the resulting sale of the land is known as a "partition sale." Occasionally, partitions can provide a service in cleaning up title to a piece of property. As the description above makes clear, however, there have been hundreds of situations in which the real world impact of the partition and subsequent sale is to end a family's historic ownership and occupation of land on which they had enjoyed a claim for a century or more. Such situations can be particularly pernicious when the real driving force behind the partition sale is developer or a lawyer (or a combination thereof) who is the main beneficiary of the whole process. In the most egregious situations, the land is actually scooped up at sale by the very same lawyer who brokered the whole transaction to begin with. In smaller rural counties in which African-Americans have always been relegated to the margins of society, one can only imagine the emotions of alienation for the family displaced from their birthright as it's snapped up by a local bigwig. Such situations conjure up disturbing images from reconstruction and the Jim Crow era. Finding solutions As a small, partial solution to the problem, advocates have proposed a package of bills this year at the General Assembly that would address some of the worst conflicts of interest and other major problems in the way partition sales are handled. One of these bills was heard for a few minutes in a House Committee last week. It deals with the situation in which the same attorney who represents one or more of the parties in the original partition action is subsequently appointed by the local clerk of court as the "commissioner" in the proceeding. The commissioner is supposed to be an unbiased, impartial person who oversees the actual land sale. As proponents of the legislation explained in the committee hearing last week, however, it's pretty darned difficult to explain to someone that's being displaced from their family plot how the same person who brought the action against them to begin with can act in their best interests when it's time to sell the land. At best, such a situation presents the appearance of an enormous conflict of interest. At worst, it reeks of the worst kind of an "inside job" - an old-fashioned fix in which simple people of modest means are run over by the local "powers-that-be" in their community. Conflicts of interest The proposed legislation make it explicitly clear that attorneys who represent any party in the partition would not be allowed to serve as a commissioner except when all parties (including the landholder) affirmatively agree to allow it. Unfortunately, although such a solution seems simple and straightforward enough, it has raised the ire of some real estate lawyers who practice in this area. Last week in committee, these attorneys argued that such a change would be "impractical." They contended that there are so few lawyers in rural counties that it would be hard to scare up a completely untainted commissioner. What they failed to acknowledge, is that there is no requirement in the law that the commissioner be an attorney. One of the most surprising moments in the meeting occurred when the House Minority Leader, Rep. Paul Stam, showed up at the meeting to address the matter (Stam is not a member of the committee and it is extremely unusual for a non-member to attend and ask to speak on their own at such a meeting.) Acting as a kind of self-appointed lobbyist and expert, Stam forcefully denounced the bill, echoing the positions of the other real estate lawyers and arguing that such a requirement would make it extremely difficult to effect such partitions. He then went on to explain that in his law practice, he had "handled 50 partitions." That this fact, in combination with his own active and vociferous participation in the debate over the bill, might itself have raised a few eyebrows did not seem to occur to the representative. At the end of the meeting, the bill was not even voted on and was instead sent to an ad hoc subcommittee, where it faces, at best, an extremely uncertain future. Going forward In the end, it seems, the rough treatment meted out to this one, modest little bill is emblematic of the whole subject of land loss by rural African-Americans. Not only are the powers-that-be indifferent to the reality facing these families, they're remarkably tin-eared when it comes to the perception of how the process (in the courts and the legislature) works. Let's hope that at some point, lawmakers come to the realization that, sometimes, there's more to justice than mere "efficiency" in the application of an old law and whether their individual consciences are clear.

SaveFreemanBeach.Com

SaveFreemanBeach.com is a new website about the history of Freeman Beach in an effort to save this beachfront property from development. Visit http://www.savefreemanbeach.com

Orange County Heirs' Property Report

From This report gives detailed information about Heirs’ Property holdings in Orange County, NC. This report gives detailed information about Heirs’ Property holdings in Orange…

Sidberry Family

Sidberry Family, New Hanover County File No. 03 SP 0726

Two of 19 Sidberry heirs filed a partition action relating to property that had been in their family since 1871. The property consisted of 8.8 acres in Wilmington, New Hanover County near Market Street. It was described as “virtually undeveloped land in an area that has been developed for both commercial and residential purposes” in the pleadings. A 1911 will devised the property to the Sidberry and the Wallace children. However, the Wallace children have not been heard of since 1911. Nevertheless, through the partition action the property was sold for $495,000 and $254,652.47 was placed in a trust account with the clerk of court for the unknown heirs of the Wallace children. Before the remaining funds were distributed among the Sidberry heirs, who have been taking care of the property for the last 90 years, $21,546 was given to the attorneys, $3,000 to the commissioner, and $49,500 for real estate commission. The Sidberrys originally sought to clarify that one of them could place a trailer on the property. Today they believe they have been dispossessed of their rightful inheritance and have retained counsel to seek to recover the amount placed in trust for the unknown heirs.

Partition Sales and Black Land Loss

Partitions come in two forms, partition in-kind or a partition sale. A partition in-kind physically divides the property among owners. The law in most states provides that this method of partition is preferred. North Carolina’s statutes, for example, states that the court shall order the sale of property only where it finds by preponderance of the evidence that an actual physical partition cannot be made without substantial injury to any interested party. N.C.G.S. 46-22(a) (emphasis added). Substantial injury is further defined as, “the fair market value of each share in an in-kind partition would be materially less than the share of each cotenant in the money equivalent …obtained from the sale of the whole, and if an in-kind division would result in material impairment of the cotenant’s rights.” N.C.G.S. 46-22(b). In practice, however, partition in-kind appears less favored by judges.

The quicker partition sale, which sends the property to the auction block, allows ownership to vest in the highest bidder. Partition sales are thought to be one of the primary causes of involuntary black land loss in recent times. The reason is that those who can afford to purchase property on the open market are more often developers with deep pockets instead of cash poor families. Individuals purchasing heirs’ property off the auction block can pay more cash for the property; but, it is those whose heritage is tied to the lands who attach the deepest value. Partition sales separate families from their heritage and their homes. If heirs’ property is purchased by an outside party for development, those tenants living on the land are displaced. At this point, heirs’ property intersects with issues of fair and affordable housing. Families, generally having limited income, may find themselves without a home and in need of affordable housing.

Partition sales can have devastating effects on heirs’ property and fair housing. It is important, therefore, that heirs’ property be identified. If those persons with an ownership interest can be identified, educated, and guided through the problems associated with heirs’ property, their heritage may be secured and ramifications effecting fair housing avoided. For these reasons the Southern Coalition for Social Justice, beginning in June 2008, conducted research to determine the extent to which heirs’ property, partition sales, and black land loss is occurring in Orange County, North Carolina.

Narrative of SCSJ's Orange County Heirs' Property Study
(Part of Appendix 1, with maps)

Freeman Beach

http://www.savefreemanbeach.com

Freeman Beach, LLC v. Freeman Heirs, New Hanover County File No. 08 SP 1038

In the 20th century, Freeman Beach was well‐known as the beach, across from Seabreeze, where African Americans could enjoy the ocean front. Present‐day Freeman family members have many memories of their ancestors fishing from the beach and enjoying the natural beauty of the area. The City of Carolina Beach has converted 143 acres of the ocean‐front beach to a Park known as Freeman Park.

In dispute in this action are approximately 180 acres of undeveloped waterfront property at the northern end of Carolina Beach. The original owner of the land was a man named Alexander Freeman. He is remembered today as a notable free black man during slavery times and an incredibly brilliant entrepreneur‐agriculturist. Unlike many of his era, Alexander Freeman created a Will in 1854. Alexander’s Will left the 185 acres he owned to his son, Robert Bruce Freeman. Upon Alexander’s death, which is believed to be sometime around the beginning or during the Civil War, Robert Bruce Freeman became the owner in fee simple at the approximate age of 24. During his life, Robert Bruce Freeman took two wives, Catherine Ann Davis and Lena Swain. In total, he fathered possibly 19 or 20 children between the two marriages. When Robert later died intestate in 1902, the property was divided between all of his children and his second wife.

The partition action is filed by a developer, who claims to own approximately 72% interest in the land through what appears to have been a judgment on a defaulted loan in the 1940’s by some of Robert Freeman’s heirs, and through very recent purchases of other heirs’ interests. The remaining family members are looking for a way to preserve something of their heritage and keep some portion of the land undeveloped.

The clerk appointed a guardian selected by the Petitioner, to represent the unknown heirs as well as known heirs, of Robert Bruce Freeman.