Title 34
Property

Chapter 44
Abandoned Property

§ 34-44-12. Sale of building and property by receiver.

(a) If a receiver appointed pursuant to § 34-44-4 files with the judge in the civil action described in § 34-44-4 a report indicating that the public nuisance has been abated, and if the judge confirms that the receiver has abated the public nuisance, and if the receiver or any interested party requests the judge to enter an order directing the receiver to sell the building and the property on which it is located, then the judge may enter that order after holding a hearing as described in subsection (c).

(b)(1) If the abatement of the nuisance has not yet occurred; and

(2) If the court approves the abatement plan presented by the receiver or any interested party; and

(3) The building at the subject property is unoccupied, then the court may enter an order, upon the receiver’s recommendation, directing the receiver to sell the building and property upon which it is located after holding a hearing as described in subsection (c) of this section. Any sale order and sale deed under this subsection shall include a requirement that the transfer of the property include a reverter if the abatement plan is not completed in accordance with its terms and in the timeframe established in the plan. The abatement of the property by the purchaser shall be at the purchaser’s sole cost and expense.

(c) The receiver or interested party requesting an order as described in subsection (a) or (b) of this section shall cause a notice of the date and time of a hearing on the request to be served on the owner of the building involved and all other interested parties in accordance with § 34-44-3. The judge in the civil action described in § 34-44-3 shall conduct the scheduled hearing. At the hearing, if the owner or any interested party objects to the sale of the building and the property, the burden of proof shall be upon the objecting person to establish, by a preponderance of the evidence, that the benefits of not selling the building and the property outweigh the benefits of selling them. If the judge determines that there is no objecting person, or if the judge determines that there is one or more objecting persons but no objecting person has sustained the burden of proof specified herein, the judge may enter an order directing the receiver to offer the building and the property for sale upon terms and conditions that the judge shall specify, and may further order the removal of any clouds on the title to the building and property by reason of any liens or encumbrances that are inferior to any claims of the receiver, as provided by § 34-44-6(9), or if the receivership action is pending in a court other than the superior court, the judge may order the receiver to petition the superior court to order the removal of any clouds on the title to the building or property. An order by the superior court to remove any cloud on the title to the building and property shall be binding upon all those claiming by, through, under, or by virtue of, any inferior liens or encumbrances.

(d) The court may give priority in a sale to any party willing to:

(1) Designate and deed restrict the property for low- and moderate-income housing, as defined in § 45-53-3; or

(2) Resell the property at least ten percent (10%) below an appraised market value; or

(3) Designate any residential units in the property for occupancy through any housing choice voucher program; or

(4) Restrict use of the property to owner-occupancy for a period of not less than twenty-four (24) months from the date of the issuance of a certificate of occupancy.

The waiver of any portion of the delinquent real estate taxes or zoning or minimum housing fines pursuant to subsection (e) of this section may qualify as a municipal subsidy under § 45-53-3.

(e) If a sale of a building and the property on which it is located is ordered pursuant to subsections (a) — (d) and if the sale occurs in accordance with the terms and conditions specified by the judge in the judge’s order of sale, then the receiver shall distribute the proceeds of the sale and the balance of any funds that the receiver may possess, after the payment of the costs of the sale, in the following order of priority and in the described manner:

(1) First, the amount due for delinquent taxes and assessments owed to this state or a political subdivision of this state;

(2) Second, in satisfaction of any mortgage liability incurred by the receiver pursuant to § 34-44-6, in their order of priority;

(3) Third, any unreimbursed expenses and other amounts paid in accordance with § 34-44-6 by the receiver, and the fees of the receiver assessed pursuant to § 34-44-8; and

(4) Fourth, the amount of any pre-receivership mortgages, liens, or other encumbrances, in their order of priority.

(f) Following a distribution in accordance with subsection (e), the receiver shall request the judge in the civil action described in § 34-44-3 to enter an order terminating the receivership. If the judge determines that the sale of the building and the property on which it is located occurred in accordance with the terms and conditions specified by the judge in his or her order of sale under subsection (c) and that the receiver distributed the proceeds of the sale and the balance of any funds that the receiver possessed, after the payment of the costs of the sale, in accordance with subsection (e), and if the judge approves any final accounting required of the receiver, the judge may terminate the receivership.

(g) If a judge in a civil action described in § 34-44-3 enters a declaration that a public nuisance has been abated by a receiver, and if, within three (3) days after the entry of the declaration, all costs, expenses, and approved fees of the receivership have not been paid in full, the judge may enter an order directing the receiver to sell the building involved and the property on which it is located. The order shall be entered, and the sale shall occur, only in compliance with subsections (b) — (d), as applicable.