| Chapter 359 |
| 2016 -- H 7572 Enacted 07/06/2016 |
| A N A C T |
| RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE |
| Introduced By: Representatives O`Grady, Bennett, Maldonado, Ajello, and Edwards |
| Date Introduced: February 11, 2016 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Chapter 34-27 of the General Laws entitled "Mortgage Foreclosure and |
| Sale" is hereby amended by adding thereto the following section: |
| 34-27-8. Requirement of affidavit from certain tax-exempt entities. – (a) Definitions. |
| -- The following definitions apply in the interpretation of the provisions of this section unless the |
| context requires another meaning: |
| (1) "Mortgage loan" means a loan to a natural person made primarily for personal, |
| family, or household purposes secured wholly or partially by a mortgage on residential property. |
| (2) "Residential property" means real property on which there is a dwelling house with |
| accommodations for no more than four (4) dwelling units and occupied, or to be occupied, in |
| whole or in part, by the obligor of the mortgage debt; provided, however, that residential property |
| shall be limited to the principal residence of a person; provided, further, that residential property |
| shall not include an investment property or residence other than a primary residence; and |
| provided, further, that residential property shall not include residential property taken in whole or |
| in part as collateral for a commercial loan. |
| (b) In all circumstances in which an offer to purchase either a mortgage loan or |
| residential property is made by an entity with a tax-exempt filing status under section 501(c)(3) of |
| the Internal Revenue Code, or an entity controlled by an entity with such tax-exempt filing status, |
| no mortgagee shall require, as a condition of sale or transfer to any such entity, any affidavit, |
| statement, agreement, or addendum limiting ownership or occupancy of the residential property |
| in question and, if obtained, such affidavit, statement, agreement, or addendum shall not provide |
| a basis to avoid a sale or transfer, nor shall it be enforceable against such acquiring entity or any |
| real estate broker, mortgagor, or settlement agent named in such affidavit, statement, or |
| addendum. |
| SECTION 2. This act shall take effect upon passage. |
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| LC004028 |
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