| Chapter 210 |
| 2017 -- H 6336 Enacted 07/18/2017 |
| A N A C T |
| RELATING TO TAXATION -- TAX SALES |
| Introduced By: Representative Robert E. Craven |
| Date Introduced: June 15, 2017 |
| 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 |
| Hhousing and Mmortgage Ffinance Ccorporation 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 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. |
| (c) This tax title purchaser shall not be liable for any enforcement or penalties arising |
| from violations of environmental or minimum-housing standards prior to the expiration of one |
| year from the date of the tax sale, or five (5) years from the date of the tax sale if the Rhode |
| Island housing and mortgage finance corporation is the tax title purchaser pursuant to §44-9-8.3, |
| 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; except, however, that if the Rhode Island housing and |
| mortgage finance corporation is the tax title holder pursuant to §44-9-8.3, then joint and several |
| liability shall arise upon the expiration of five (5) years after the date of the sale. 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 housing and mortgage |
| finance corporation, 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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| LC002870 |
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