2015 -- H 5612

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LC001421

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PROPERTY -- FORM AND EFFECT OF CONVEYANCES

     

     Introduced By: Representatives Ackerman, Shekarchi, Keable, Blazejewski, and Lally

     Date Introduced: February 25, 2015

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 34-11 of the General Laws entitled "Form and Effect of

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Conveyances" is hereby amended by adding thereto the following section:

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     34-11-43. Validation of conveyancing defects. – (a) Conveyancing defects.

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Notwithstanding any other statute to the contrary, any deed, mortgage, lease, power of attorney,

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release, assignment or other instrument made for the purpose of conveying, leasing, mortgaging

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or affecting any interest in real property in this state, which instrument contains any one or more

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of the following defects or omissions is as valid as if it had been executed without the defect or

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omission unless an action challenging the validity of that instrument is commenced, and a notice

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of lis pendens is recorded in the land evidence records of the city or town where the instrument is

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recorded, within two (2) years after the instrument is recorded:

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     (1) The instrument contains a defective acknowledgment or no acknowledgment;

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     (2) In the case of a conveyance by a corporation, limited liability company, partnership,

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limited partnership, or limited liability partnership, or by any other entity authorized to hold and

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convey title to real property within this state, the instrument designated such entity as the grantor

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but was signed or acknowledged by an individual in such person's individual capacity;

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     (3) The instrument was made to any grantee not recognized by law to have the capacity to

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take or hold an interest in real property. Validation of an instrument under this subsection

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confirms the conveyance to the grantee and any subsequent transfers of the interest by the grantee

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to any subsequent transferees, their heirs, administrators, legal representatives, successors and

 

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assigns.

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     (b) Insubstantial defects. Notwithstanding any other statute to the contrary, any deed,

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mortgage, lease, power of attorney, release, assignment or other instrument made for the purpose

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of conveying, leasing, mortgaging or affecting any interest in real property in this state, which

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instrument contains any one or more of the following defects or omissions is as valid as if it had

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been executed without the defect or omission:

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     (1) The instrument contains an incorrect statement of the date of execution or omits the

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date of execution;

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     (2) The instrument contains an execution date or other date that is later than the date of

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recording;

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     (3) The instrument transfers an interest in land by reference to a filed map or subdivision

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plan and the map or plan does not comply as to preparation, form, certification, approval or filing

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with any requirement of any special or general law, municipal ordinance or regulation;

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     (4) The record does not disclose the date of recording;

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     (5) The instrument fails to state the town and state in which the real property described in

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the instrument is located;

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     (6) In the case of a conveyance by a corporation, limited liability company, partnership,

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limited partnership or limited liability partnership, or by any other entity authorized to hold and

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convey title to real property within this state the instrument designates such entity as the grantor

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but fails to disclose either the authority of or the office or status held in the entity by the

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individual who executes and acknowledges the instrument.

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     (c) Defect with respect to a power of attorney. Notwithstanding any other statute to the

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contrary, any deed, mortgage, lease, power of attorney, release, assignment or other instrument

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made for the purpose of conveying, leasing, mortgaging or affecting any interest in real property

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in this state, if the instrument is validly recorded, is executed pursuant to a recorded power of

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attorney and contains any one or more of the following defects, is as valid as if the instrument had

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been executed without the defect unless an action challenging the validity of the instrument is

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commenced and a notice of lis pendens is recorded in the land evidence records of the city or

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town where the instrument is recorded within two (2) years after the instrument is recorded:

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     (1) The instrument was executed by an attorney-in-fact but was signed or acknowledged

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by the attorney-in-fact without reference to his/her or its capacity;

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     (2) The power of attorney was effective at the time the instrument was executed but is

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recorded after the instrument is recorded;

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     (3) The power of attorney was not effective at the time the instrument was executed, but

 

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the grant of the power includes a ratification of all prior acts of the attorney-in-fact.

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     (d) Defect where fiduciary conveyed to self. Notwithstanding any other statute to the

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contrary, any recorded deed, mortgage, lease, release, assignment or other instrument made for

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the purpose of conveying, leasing, mortgaging or affecting any interest in real property in this

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state, which instrument is executed by a fiduciary, but which instrument is voidable because the

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fiduciary is the grantee, mortgagee, lessee, releasee or assignee designated in such instrument is

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as valid as if it had been executed without the defect unless an action is commenced to avoid and

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set aside such instrument and a notice of lis pendens is recorded in the land evidence records of

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the city or town where the instrument is recorded within ten (10) years from the date of recording

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of such instrument.

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     (e) Defect with respect to conveyance by fiduciary. Notwithstanding any other statute to

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the contrary, any deed, mortgage, lease, power of attorney, release, assignment or other

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instrument made for the purpose of conveying, leasing, mortgaging or affecting any interest in

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real property in this state recorded after the effective date hereof, which instrument was executed

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by an executor, administrator, guardian, trustee, conservator or other fiduciary pursuant to an

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order or authorization of the probate court and which contains any one or more of the following

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defects, is as valid as if it had been executed without the defect:

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     (1) The fiduciary failed to post a bond required by the court for the faithful administration

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and distribution of the proceeds of the sale, provided either: (i) The fiduciary has accounted for

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the proceeds of the sale in an administration account that has been approved and accepted by the

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court after notice and hearing, and from which order of approval and acceptance no appeal has

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been taken; or (ii) No action challenging the validity of that instrument is commenced and no

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notice of lis pendens is recorded in the land evidence records of the city or town where the

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instrument is recorded within two (2) years after the instrument is recorded; or (iii) The estate is

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closed; and any appeal time therefrom has elapsed.

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     (2) Required notice of the probate court hearing on the application for an order of sale

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was not given; provided either: (i) The fiduciary has accounted for the proceeds of the sale in an

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administration account that has been approved and accepted by the court after notice and hearing,

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and from which order of approval and acceptance no appeal has been taken; or (ii) No action

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challenging the validity of the instrument is commenced and no notice of lis pendens is recorded

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in the land evidence records of the city or town where the instrument is recorded within two (2)

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years after the instrument is recorded; or (iii) The estate is closed; and any appeal time therefrom

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has elapsed;

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     (3) The fiduciary failed to recite in the instrument the basis of the authority by which the

 

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fiduciary acted, provided that no action challenging the validity of the instrument is commenced

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and no notice of lis pendens is recorded in the land evidence records of the city or town where the

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instrument is recorded within two (2) years after the instrument is recorded.

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     (f) Discharge or assignment of mortgage by out-of-state fiduciary. Notwithstanding any

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other statute to the contrary, a discharge or assignment of a mortgage interest in real property in

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this state held by a nonresident or deceased nonresident that is executed by an out-of-state

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fiduciary and recorded after the effective date hereof, shall have the same effect as if executed by

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a fiduciary of this state unless an action contesting the discharge or assignment is commenced and

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a notice of lis pendens has been recorded in the land evidence records of the city or town where

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such release or assignment is recorded within two (2) years after the instrument is recorded.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- FORM AND EFFECT OF CONVEYANCES

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     This act would validate the conveyance of real estate interests where the instrument of

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conveyance contains a minor defect.

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     This act would take effect upon passage.

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