law16112

Chapter 112

2016 -- S 2315
Enacted 06/22/2016

A N A C T

RELATING TO TAXATION -- TAX SALES

Introduced By: Senators Nesselbush, Crowley, Doyle, and Conley

Date Introduced: February 09, 2016

It is enacted by the General Assembly as follows:

SECTION 1. Section 44-9-12 of the General Laws in Chapter 44-9 entitled "Tax Sales" is

hereby amended to read as follows:

44-9-12. Collector's deed -- Rights conveyed to purchaser -- Recording. -- (a) The

collector shall execute and deliver to the purchaser a deed of the land stating the cause of sale; the

price for which the land was sold; the places where the notices were posted; the name of the

newspaper in which the advertisement of the sale was published; the names and addresses of all

parties who were sent notice in accordance with the provisions of § 44-9-10 and 44-9-11; the

residence of the grantee; and if notice of the sale was given to the Rhode Island Housing and

Mortgage Finance Corporation and/or to the department of elderly affairs under the provisions of

§ 44-9-10. The deed shall convey the land to the purchaser, subject to the right of redemption.

The conveyed title shall, until redemption or until the right of redemption is foreclosed, be held as

security for the repayment of the purchase price with all intervening costs, terms imposed for

redemption, and charges, with interest,; and the premises conveyed, both before and after either

redemption or foreclosure, shall also be subject to, and have the benefit of, all easements and

restrictions lawfully existing in, upon, or over the land or appurtenant to the land. The deed is not

valid unless recorded within sixty (60) days after the sale. If the deed is recorded, it is prima facie

evidence of all facts essential to the validity of the title conveyed by the deed. It shall be the duty

of the collector to record the deed within sixty (60) days of the sale and to forward said deed

promptly to the tax sale purchaser. The applicable recording fee shall be paid by the redeeming

party purchaser. The purchaser shall be reimbursed for said fee upon redemption by the

redeeming party, if any. Except as provided, no sale shall give to the purchaser any right to either

the possession, or the rents, or profits of the land until the expiration of one year after the date of

the sale, nor shall any sale obviate or transfer any responsibility of an owner of property to

comply with any statute of this state or ordinance of any municipality governing the use,

occupancy, or maintenance or conveyance of property until the right of redemption is foreclosed.

(b) The rents to which the purchaser shall be entitled after the expiration of one year and

prior to redemption shall be those net rents actually collected by the former fee holder or a

mortgagee under an assignment of rents. Rents shall not include mere rental value of the land, nor

shall the purchaser be entitled to any rent for owner-occupied, single-unit residential property.

For purposes of redemption, net rents shall be computed by deducting from gross rents actually

collected any sums expended directly or on behalf of the tenant from whom the rent was

collected. Such expenditure shall include utilities furnished, repairs made to the tenanted unit, and

services provided for the benefit of the tenant. However, mortgagee payments, taxes, and sums

expended for general repair and renovation (i.e. capital improvements) shall not be deductible

expenses in the computation of the rent.

from violations of environmental or minimum-housing standards prior to the expiration of one

year from the date of the tax sale, except for violations that are the result of intentional acts by the

tax sale purchaser or his or her agents.

(d) Upon the expiration of one year after the date of the sale, the tax title holder shall be

jointly and severally liable with the owner for all responsibility and liability for the property and

shall be responsible to comply with any statute of this state or ordinance of any municipality

governing the use, occupancy, or maintenance or conveyance of the property even prior to the

right of redemption being foreclosed. Nothing in this section shall be construed to confer any

liability upon a city or town that receives tax title as a result of any bids being made for the land

offered for sale at an amount equal to the tax and charges.

(e) In the event that the tax lien is acquired by the Rhode Island Hhousing and

Mmortgage Ffinance Ccorporation, and said corporation has paid the taxes due, title shall remain

with the owner of the property, subject to the right of the corporation to take the property in its

own name, pursuant to applicable statutes and any regulations duly adopted by the corporation.

Upon such notice by the corporation, the collector shall execute and deliver a deed to the

corporation as herein provided.

SECTION 2. This act shall take effect upon passage.

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LC004417

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