2015 -- H 5616

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LC001437

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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 TAXATION - TAX SALES

     

     Introduced By: Representative Cale P. Keable

     Date Introduced: February 25, 2015

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-9-11 of the General Laws in Chapter 44-9 entitled "Tax Sales" is

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hereby amended to read as follows:

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     44-9-11. Notice to mortgagees and other parties in interest. -- (a) In case the collector

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shall advertise for sale any property, real, personal, or mixed, in which any person other than the

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person to whom the tax is assessed has an interest, it shall not be necessary for the collector to

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notify the interested party, except for the following interested parties, provided that their interest

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was of record at least ninety (90) days prior to the date set for the sale: the present owner of

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record, mortgagees of record and mortgage assignees of record, former fee holders whose right to

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redeem has not been foreclosed, holders of tax title, federal agencies having a recorded lien on the

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subject property, holders of life estates of record, and vested remainder whose identity can be

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ascertained from an examination of the land or probate records of the municipality conducting the

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sale, and/or their assignees of record who shall be notified by the collector either by registered or

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certified mail sent postpaid not less than twenty (20) days before the date of sale or any

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adjournment of the sale, to an agent authorized by appointment or by law to receive service of

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process, or to the address of the party in interest set forth in the recorded mortgage document or

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the recorded assignment, or to the last known address of the party in interest, but no notice of

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adjournments shall be necessary other than the announcement made at the sale. The posting and

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publication of the notice of the time and place of sale in the manner provided by § 44-9-9 shall be

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deemed sufficient notice to all other interested parties. This provision shall apply to all taxes

 

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levied prior to and subsequent to 1896. This provision shall be subject to the notice requirements

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of § 44-9-10. It shall not be necessary, however, to provide the names of the mortgagees and

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other parties in interest under this section to the Rhode Island Housing and Mortgage Finance

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Corporation or to the department of elderly affairs. In the event that the Rhode Island housing

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and mortgage finance corporation does in fact pay the tax and acquire a lien on the subject

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property, then the Rhode Island housing and mortgage finance corporation shall within thirty (30)

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days of making the tax payment notify those mortgagees of record and mortgagee assignees of

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record, whose interests in the property was of record at least ninety (90) days prior to the date set

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for the tax sale, of the fact that the taxes have been paid by the Rhode Island housing and

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mortgage finance corporation and that a tax lien has been acquired by the Rhode Island housing

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and mortgage finance corporation.

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      (b) Only a person or entity failing to receive notice in accordance with the provisions of

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this section and §§ 44-9-9 and 44-9-10 shall be entitled to raise the issue of lack of notice or

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defective notice to void the tax sale. The right to notice shall be personal to each party entitled to

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it and shall not be asserted on behalf of another party in interest. If there is a defect in notice, the

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tax sale shall be void only as to the party deprived of adequate notice, but shall be valid as to all

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other parties in interest who received proper notice of the tax sale.

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      (c) Once a petition is filed under § 44-9-25, and any party in interest entitled to notice of

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the tax sale receives actual notice of the pendency of the petition to foreclose, the party must raise

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the notice defense in accordance with the provisions of § 44-9-31 or be estopped from alleging

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lack of notice in any action to vacate a final decree entered in accordance with § 44-9-30.

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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 TAXATION - TAX SALES

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     This act would require the Rhode Island Housing and Mortgage Finance Corporation to

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notify those mortgagees and mortgage assignees of record within thirty (30) days, that the

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property tax has been paid and a tax lien has been acquired by said corporation.

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     This act would take effect upon passage.

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