2001 -- H 5015

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LC00229
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RELATING TO TAXATION -- TAX SALES

It is enacted by the General Assembly as follows:

SECTION 1. Sections 44-9-1, 44-9-3, 44-9-4, 44-9-5, 44-9-6, 44-9-8, 44-9-9, 44-9-10, 44-9-11, 44-9-12, 44-9-13, 44-9-18, 44-9-19, 44-9-21, 44-9-23, 44-9-24, 44-9-25, 44-9-26, 44-9-27, 44-9-28, 44-9-29, 44-9-32, 44-9-35, 44-9-43, and 44-9-46 of the General Laws in Chapter 44-9 entitled "Tax Sales" are hereby amended to read as follows:

44-9-1. Tax lien on real estate. -- (a) Taxes assessed against any person in any town for either personal property or real estate shall constitute a lien on the real estate. The lien shall arise and attach as of the date of assessment of the taxes, as defined in section 44-5-1.

(b) The lien shall terminate at the expiration of three (3) years thereafter if the estate has in the meantime been alienated and the instrument alienating the estate has been recorded; otherwise, it shall continue until a recorded alienation of the estate. The lien shall be superior to any other lien, encumbrance, or interest in the real estate whether by way of mortgage, attachment, or otherwise, except easements and restrictions. A final decree foreclosing all rights of redemption shall constitute an alienation within the meaning of this section. The tax sale itself shall not constitute an alienation.

44-9-3. Lien of fire district and lighting district taxes. -- 44-9-3. Lien of fire district, lighting district and other district taxes. -- All taxes or fees assessed against any person in any fire district, water district, sewer district, road district and in any lighting district within this state, pursuant to the act of incorporation of the district, for either real or personal estate, shall constitute a lien upon that person's real estate therein for the space of three (3) years after the assessment, and, if the real estate be not aliened alienated, then until the taxes or fees are collected.

44-9-4. Powers of fire district and lighting district collectors. -- 44-9-4. Powers of fire district, lighting district and other district collectors. -- The collector of taxes of every fire district, water district, sewer district, road district and of every lighting district shall have all the powers and privileges and be subject to all the duties and liabilities which are conferred or imposed upon collectors of taxes in towns.

44-9-5. Agreements between towns and fire districts. -- 44-9-5. Agreements between towns and fire districts, water districts, sewer districts, road districts and lighting districts. -- Towns and fire districts, water districts, sewer districts, road districts and lighting districts are hereby authorized to make agreements with respect to the parcel of property upon which they respectively own tax liens in respect to the disposition of the liens, of the parcel of property subject to the liens, and of the proceeds of a tax sale of the property. Notwithstanding such an agreement, any prior tax sale purchaser shall have a priority over subsequent tax sale purchasers such that the prior tax sale purchaser shall have a right of redemption as defined in this chapter with respect to any subsequent tax sale. Any subsequent tax sale purchaser, however, shall have the right to foreclose all rights of redemption with respect to prior tax title interests. The date of a tax sale shall be the date used to determine the priority of any tax sale purchaser. Purchasers at subsequent tax sales shall not have a right of redemption from prior tax sale purchasers.

44-9-6. Primary liability of life estate. -- In case of a life estate, the interest of the tenant for life shall first be liable for the tax. , and the assessed party entity be secondarily liable for the tax.

44-9-8. Sale of undivided part or whole of land. -- If the taxes are not paid, the collector shall, at the time and place appointed for the sale, sell by public auction for the amount of the taxes, assessments, rates, liens, interest, and necessary intervening charges, the smallest undivided part of the land which will bring the amount, but not less than one percent (1%) or the whole for the amount if no person offers to take an undivided part.

44-9-9. Notice and advertisement of sale. -- Before the sale the collector shall give notice of the time and place of sale posted in two (2) or more public places in the town at least three (3) weeks before the time of the sale. The collector shall also cause to be published in some public newspaper published in the town, if there be one, and if there be no public newspaper published in the town, then in some public newspaper published in the county, a statement concerning the time and place of sale, the real estate liable for payment of taxes, the street address of the real estate liable for payment of taxes and the name of the person against whom the real estate was assessed, with a list of the parcel or parcels to be offered for sale by the recorded plat and lot number, or by assessors' plat and lot number, or by other adequate description. The newspaper notice giving this full description shall be inserted, once, at least three (3) weeks prior to the date of the advertised sale, and thereafter a weekly formal legal notice, between the date of original advertisement and the time of sale specified therein, shall be inserted, stating that the collector will sell at public auction real estate thus advertised. The subsequent formal legal notice shall include reference to the original advertisement which gave full description. Whenever a duly advertised tax sale is continued or postponed, a formal legal notice giving the new date shall be inserted at least one week prior to the new date.

44-9-10. Notice of sale to taxpayer. -- (a) Whether or not the person to whom the estate is taxed as of December 31st prior to the tax sale be a resident of this state, the collector shall, in addition to the foregoing, notify the taxpayer of the time and place of sale either by registered or certified mail sent postpaid to the taxpayer's last and usual place of abode street address of the real estate liable for payment of taxes, and, if different, to the taxpayer's address listed with the tax assessor's office of the city or town where the real estate is located or to any other address taxpayer designates by written notice to the tax assessor, or to the address of the taxpayer stated on the deed recorded in the land evidence records of the city of or town where the real estate is located or to the last known address of the taxpayer not less than twenty (20) days before the date of sale or any adjournment thereof, or be left at the taxpayer's last and usual place of abode, known address or personally served on the taxpayer not less than twenty (20) days before the date of sale or any adjournment thereof, but no notice of adjournments shall be necessary other than the announcement made at the sale.

(b) Persons aged sixty-five (65) years and over or persons suffering from a disability may designate a third party to whom notice may be sent as required pursuant to this section by advising the tax assessor of the name and address of the person.

(c) If the estate taxed is a corporation, the notice may be sent either by registered or certified mail to its place of business or left at the business office of the corporation with some person there employed. an entity which is registered with the Rhode Island secretary of state's office and/or the state of Rhode Island department of business regulation banking division, by mailing a copy of the notice either by registered or certified mail postage prepaid not less than twenty (20) days before the date of sale or any adjournment thereof to an agent authorized to receive service of process.

(d) In the event the person to whom the estate is taxed is listed in the records of the assessor and/or collector as having applied for and been granted a property tax abatement based wholly or partially on the age of the taxpayer, then the collector shall also notify the department of elderly affairs by registered or certified mail postage prepaid not less than twenty (20) days before the date of the sale. Failure to notify the department of elderly affairs shall not affect the validity of a tax sale.

(e) If the record owner of the estate taxed as of ninety (90) days prior to the scheduled tax sale is different than the owner of the estate taxed on the December 31st prior to the scheduled tax sale, the collector shall, in addition to the foregoing, notify said record owner as of ninety (90) days prior to the scheduled tax sale in the same manner as set forth in sections 44-9-10(a) and 44-9-10(c).

44-9-11. Notice to mortgagees and other parties in interest. -- (a) In case the collector shall advertise for sale any property, real, personal, or mixed, in which any person other than the person to whom the tax is assessed has an interest, it shall not be necessary for the collector to notify the interested party, except mortgagees of record, former fee holders whose right to redeem has not been foreclosed, holders of tax title, federal agencies having a recorded lien on the subject property holders of life estates of record, and vested remainderment whose identity can be ascertained from an examination of the land or probate records of the municipality conducting the sale, and/or their assignees of record who shall be notified by the collector either by registered or certified mail sent postpaid to the last and usual place of abode or place of business of the mortgagee, not less than twenty (20) days before the date of sale or any adjournment thereof, or be left at his or her last and usual place of abode, or personally served on him or her, not less than twenty (20) days before the date of sale or any adjournment thereof, to an agent authorized by appointment or by law to receive service of process, or if there be no such agent, to the address of the mortgages or assignee set forth in the recorded mortgage document or the recorded assignment or to the last known address of the mortgagee, but no notice of adjournments shall be necessary other than the announcement made at the sale. The posting and publication of the notice of the time and place of sale in the manner provided by section 44-9-9 shall be deemed sufficient notice to all other interested parties. This provision shall apply to all taxes levied prior to and subsequent to 1896.

44-9-12. Collector's deed -- Rights conveyed to purchaser -- Recording. -- 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, and the residence of the grantee. The deed shall convey the land to the purchaser, subject to the right of redemption. The title thus conveyed 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 thereon, 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 shall not be valid against intervening interests unless recorded within sixty (60) days after the sale. If so recorded it shall be 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 as an expense of the sale chargeable to the assessed owner and to forward said deed promptly to the tax sale purchaser. Except as otherwise 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.

The 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 (1) year from the date of the tax sale, except for violations which are the result of intentional acts by the tax sale purchaser or his or her agents.

The rents to which the purchaser shall be entitled after the expiration of one (1) 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 rents from 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 on behalf of the tenant from whom the rent was collected. Such expenditures shall include utilities furnished, repairs made to the tenanted unit, and services provided for the benefit of the tenant. However, mortgage payments, taxes, and sums expended for general repair and renovation (i.e. capital improvements) shall not be deductible expenses in the computation of net rents.

In all cases where the redeeming party disputes the assessment of net rents by the tax title purchaser, the burden of proof shall be on the tax title purchaser to establish to the court the amount of the net rents. No attorneys' fees shall be awarded by the superior court at a hearing to determine net rents.

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, however, to confer any liability upon a city or town which 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.

44-9-13. Entry by collector not required -- Recording of tax sale list. -- No entry upon the land by the collector shall be deemed necessary, but the collector in all cases of sales of real estate shall deliver to the clerk's or recorder's office a list of those properties sold at tax sale which the clerk or recorder shall record or post in the land evidence records for their respective city or town within forty-eight (48) hours after the sale of real estate. The recorded or posted list shall include the assessed owner's name(s), which shall be posted in the grantor's index, within five (5) business days, the address of the property, and the assessor's plat and lot, and the recorded or posted list shall be conclusive evidence of the facts stated in the list.

No properties shall be sold at tax sale to any bidder who is delinquent in the paying of taxes or is an officer, more than ten percent (10%) shareholder or owner of a partnership or corporation or limited liability company that is delinquent in the paying of taxes on any property located within the city or town in which the tax sale is held, unless said bidder has agreed to a written payment plan approved by the collector and is current on any and all payments required by said plan. The collector may require a bidder or an authorized officer or partner thereof to execute an affidavit that the bidder is qualified under this provision.

44-9-18. Management and sale of land purchased by town -- Assignment of tax title. -- Towns may make regulations for the possession, management, and sale of land purchased or taken for taxes not inconsistent with law or with the right of redemption. The treasurer of any town holding a tax title, upon payment to the town of a sum not less or more than the amount necessary for redemption, may shall assign and transfer the tax title to any person, who makes a written request for an assignment and transfer of the tax title and tenders the amount necessary for redemption and reasonable incidental costs associated with the assignment and may shall execute and deliver on behalf of the town any instrument necessary therefor. , provided, however that prior to assignment the town may offer the subject parcel to a local land trust or redevelopment agency or nonprofit housing agency designated by the municipality, which shall submit to the treasurer within ninety (90) days of the offer of assignment a written notice of its decision of whether or not to accept such parcel for conservation or development purposes. In the event such trust or redevelopment agency fails to accept the subject parcel within such ninety (90) day period, the requested assignment shall be made by the treasurer to the person or entity requesting the assignment. It shall be further provided that the treasurer shall have discretion as to whether or not a property shall be assigned or transferred if it is property of the city or town has taken pursuant to section 44-9-8.1. The treasurer after an examination of the title to the tax sale property shall send notice of the intended assignment to the current fee holder(s) of the right of redemption. owner of record. At the owner's last known address, by registered or certified mail, at least ten (10) days prior to the assignment, but failure to receive the notice shall not affect the validity of the assignment. The instrument of assignment shall be recorded within sixty (60) days from its date and if so recorded shall be prima facie evidence of all facts essential to its validity. Except as otherwise provided, all provisions of law applicable in cases where the original purchaser at a tax sale is another other than the city or town shall thereafter apply in the case of an assignment, as if the assignee had been a purchaser for the original sum at the original sale and had paid to the town the subsequent taxes and charges included in the sum paid for the assignment (Forms 1 and 2).

Neither a city or town or any of its officers, agents or employees shall be liable or accountable to the owner or to any other person having an interest in such land for failure to collect rent or other income therefrom; and neither said city or town nor any of its officers, agents or employees shall be liable for injury or damage caused by the possession of land or to the person or property of any person.

44-9-19. Right of redemption from town. -- Any person having an interest in land sold for nonpayment of taxes, or his or her heirs or assigns, at any time prior to the filing of a petition for foreclosure under section 44-9-25, if the land has been purchased by the town and has not been assigned, may redeem the land by paying or tendering to the treasurer the sum for which the real estate was purchased, plus a penalty which shall be ten percent (10%) of the purchase price if redeemed within six (6) months after the date of the collector's sale, and an additional one percent of the purchase price for each succeeding month, together with all charges lawfully added for intervening taxes, which have been paid to the municipality, plus interest thereon at the rate of one percent (1%) per month and expenses assessed subsequently to the collector's sale. The right of redemption may be exercised only by those entitled to notice of the sale under the provisions of sections 44-9-10 and 44-9-11.

44-9-21. Redemption from purchaser other than town. -- Any person may redeem by paying or tendering to a purchaser, other than the town, his or her legal representatives, or assigns, or to the person to whom an assignment of a tax title has been made by the town, at any time prior to the filing of the petition for foreclosure, in the case of a purchaser the original sum and any intervening taxes which have been paid to the municipality plus interest thereon at the rate of one percent (1%) per month and costs paid by him or her, plus a penalty as provided in section 44-9-19, or in the case of an assignee of a tax title from a town, the amount stated in the instrument of assignment, plus the above-mentioned penalty. He or she may also redeem the land by paying or tendering to the treasurer the sum which he or she would be required to pay to the purchaser or to the assignee of a tax title, in which case the town treasurer shall be constituted the agent of the purchaser or assignee. The right of redemption may be exercised only by those entitled to notice of the sale under the provisions of sections 44-9-10 and 44-9-11.

44-9-23. Certificate of redemption money paid to treasurer. -- The treasurer shall receive any money paid to him instead of the purchaser or assignee of a tax title, and, if the period of one (1) year has not passed from the date of sale, give to the person paying it a certificate specifying the amount paid, the name of the person to whom and the real estate on which the tax was originally assessed, and the registry of deeds and the book and page of the records where the collector's deed and the instrument of assignment, if any, is recorded; and the recording of the certificate in the registry shall extinguish all right and title acquired under the collector's deed (Form 4).

In the event that the period of one year has passed from the date of sale, then the treasurer shall forthwith cause notice of the proposed redemption to be sent to the purchaser of the tax title at the address set forth in the tax deed. The purchaser of the tax title shall, within a period of thirty (30) days after the date of said notice, notify the treasurer of all other redemption costs to be collected by the treasurer. In the event that the purchaser fails to so notify the treasurer, then the treasurer shall give to the person paying a certificate as provided herein.

In the event that the tax title purchaser and the party so offering to redeem do not agree as to the proper redemption costs then, in that event, the treasurer shall not be obligated to issue a certificate of redemption.

44-9-24. Title absolute after foreclosure of redemption -- Jurisdiction of proceedings. -- The title conveyed by a tax collector's deed shall be absolute after foreclosure of the right of redemption by decree of the superior court as provided in this chapter. Notwithstanding the Rules of Civil Procedure or the provisions of chapter 9-21, no decree shall be vacated except in a separate action instituted within one (1) year following entry of the decree. Such action shall be instituted for no reason other than inadequacy of notice amounting to a denial of due process or the invalidity of the tax sale. The superior court shall have exclusive jurisdiction of the foreclosure of all rights of redemption from titles conveyed by a tax collector's deed, and the foreclosure proceedings shall follow the course of equity in a proceeding provided for in sections 44-9-25 -- 44-9-33.

44-9-25. Petition for foreclosure of redemption. -- After one year from a sale of land for taxes, except as provided in sections 44-9-19 -- 44-9-22, whoever then holds the title acquired may bring a petition in the superior court for the foreclosure of all rights of redemption thereunder. The petition shall set forth a description of the land to which it applies, with its assessed valuation, the petitioner's source of title, giving a reference to the place, book, and page of record, and such other facts as may be necessary for the information of the court. Two (2) or more parcels of land may be included in any petition brought by a town, as any purchaser of a title or titles, if the parcels are in the same record ownership at the time of bringing the petition (Form 5).

No more than one (1) foreclosure petition may be filed for each tax deed regardless of the number of tax title holders having an interest under such deed. If more than one (1) petition is filed the petitions shall be consolidated for hearing by the court. The court shall not award more than one (1) attorney's fee to the petitioners.

44-9-26. Deposit by petitioner to cover costs. -- The petitioner at the time of filing his or her petition shall deposit with the clerk of the superior court a sum sufficient to cover the costs of the proceedings as estimated by the court. Representation of unknown or unascertainable interests. -- Subsequent to filing a petition, the petitioner shall select two (2) attorneys who are members in good standing of the Rhode Island bar association, subject to the approval of the court, to act as a guardian ad litem and attorney for those persons entitled to protection pursuant to the Soldiers' and Sailors' Civil Relief Act of 1940, as amended. These attorneys, so appointed, shall only be required to make themselves available to all persons not in being or ascertainable and whose interests may be affected by the filing of the petition and also persons who may be under legal disability whose identity or whereabouts are unknown and to those persons interested in the petition who may be in the military service and entitled to protection pursuant to the Soldiers' and Sailors' Civil Relief Act of 1940, as amended. Each attorney, as appointed, shall submit the rights and interests of those persons represented by him to the protection of the court by way of answer.

44-9-27. Examination of title -- Notice to interested parties of foreclosure petition. -- (a) Upon the filing of a petition, the petitioner shall, at his or her own cost, select, with the approval of the court, a title company or an attorney familiar with the examination of land titles, which company or attorney shall make an examination of the title sufficient only to determine the persons who may be interested in the title, and the petitioner shall, upon the filing of the examiner's report, notify all persons appearing to be interested, whether as equity owners, mortgagees, lienors, attaching creditors, or otherwise, of the pendency of the petition, the notice to be sent to each either by registered or certified mail and return of receipt required. or by personal service of a copy of the petition and citation in the manner set forth herein. Such other and further notice by including publication of the citation once each week for two (2) successive weeks or otherwise shall be given as the court may at any time order.

(I) Mail or personal service to interested parties within this state shall be as follows:

(1) Upon an individual by mailing or delivering a copy of the petition and citation to him or her personally or by mailing or leaving copies thereof at his or her dwelling house or usual place of abode with some person of suitable age and discretion then residing therein or by mailing or delivering a copy of the notice to an agent authorized by appointment or by law to receive service of process, provided that if the agent is one designated by statute to receive service, such further notice as the statute requires shall be given.

(2) Upon a person for whom a guardian or conservator has been appointed by mailing or serving copies of the petition and citation upon such guardian or conservator and upon the incompetent person in the manner provided in paragraph (1) of this subsection.

(3) Upon a private corporation, domestic or foreign, limited liability company, domestic or foreign, general or limited partnership, domestic or foreign or any other entity, by mailing or delivering a copy of the petition and citation to an officer, or a partner, or a managing or general agent, or by mailing or delivering a copy of the petition or citation to an agent authorized by appointment or by law to receive service of process, provided that if the agent is one designated by statute to receive service, such further notice as the statute requires shall be given.

(4) Upon the state by mailing or delivering a copy of the petition or citation to the attorney general or an assistant attorney general.

(5) Upon a city or town by mailing or delivering a copy of the petition to the city or town clerk, the city or town solicitor and the mayor, town manager, or town administrator.

(6) Upon a public corporation, body, or authority by mailing or delivering a copy of the petition and citation to any officer, director, or manager thereof.

(II) Notice outside state; Personal jurisdiction. When an individual or a foreign corporation or other entity is subject to the jurisdiction of the courts of the state, notice may be made outside the state as follows:

(1) Upon an individual by mailing or delivering a copy of the petition or citation to the individual personally by any disinterested person, or by mailing a copy of the petition and citation to the individual by registered or certified mail, return receipt requested, or by any other method ordered by the court to give such individual notice of the action and sufficient time to prepare any defense thereto.

(2) Upon a foreign corporation or other entity by delivering a copy of the petition and citation by any disinterested person to the president, secretary, treasurer, or principal of such entity in the state of incorporation or formation, or by mailing a copy of the petition and citation to any such officer or agent or to the entity at its business address designated in the state of incorporation or formation by registered or certified mail, return receipt requested, or by any other method ordered by the court to give such corporation or other entity notice of the action and sufficient time to prepare any defense thereto.

(III) Notice by publication. Whenever in an action described herein, complete service of notice cannot with due diligence be made by another prescribed method, the court shall order service by publication of a notice of the action in one (1) or more newspapers for two (2) successive weeks in such form as the court shall direct. For the purpose of providing notice by publication, a reference to the tax assessor's plat and lot and the address of the subject parcel shall constitute a legally sufficient description.

(IV) Return. The person serving the petition and citation shall make proof of service thereof on the original citation or a paper attached thereto for that purpose, and shall, forthwith return it to the petitioner's attorney. Any return receipt received in connection therewith shall be annexed to such citation when returned. The petitioner's attorney shall, within the time during which the person served must respond to the petition, file the proof of service with the court. Failure to make proof of service does not affect the validity of the service.

(V) Amendment. At any time in its discretion and upon such terms as it deems just, the court may allow any citation or proof of service thereof to be amended, unless it clearly appears that material prejudice would result to the substantial rights of the party against whom the notice issued.

(b) The notice citation, to be addressed "To all whom it may concern," shall contain the name of the petitioner, the names of all known respondents, a description of the land, and a statement of the nature of the petition, shall fix the time within which appearance may be entered, and shall contain a statement that unless the party notified shall appear within the time fixed a default will be recorded, the petition taken as confessed, and the right of redemption forever barred (Form 6).

44-9-28. Order as to parties in default. -- After the return day fixed, to be at least twenty (20) days after the time of the actual issuance of notice, the court shall, if satisfied that the notice has been properly given, on motion of the petitioner enter an order defaulting all persons failing to appear, and decreeing that the petition as to them be taken as confessed (Form 8).

44-9-29. Redemption by party to foreclosure proceedings. -- Any person claiming an interest, on or before the return day or within such further time as may on motion be allowed by the court, shall, if he or she desires to redeem, file an answer setting forth his or her right in the land, and an offer to redeem upon such terms as may be fixed by the court. Thereupon the court shall hear the parties, and may in any case in its discretion make a finding allowing the party to redeem, within a time fixed by the court, upon payment to the petitioner of an amount sufficient to cover the original sum, costs, penalties, and all subsequent taxes, costs, and interest to which the petitioner may be entitled, together with the costs of the proceedings, insurance on the purchaser's interest, costs of governmentally mandated repairs, intervening taxes and interest which have been paid to the municipality thereon at the rate of one percent (1%) per month, net rents as provided in section 44-9-12, and such counsel fee as the court deems reasonable. The court may impose such other terms as justice and the circumstances warrant.

The redemption amount, including net rents, shall not vary regardless of the identity of the redeeming party.

Liens and executions attaching to a former fee holder's interest in property which has been sold at tax sale attach to the former fee holder's right of redemption only and shall be expunged if the former fee holder's right of redemption is foreclosed.

44-9-32. Recording of notices of foreclosure petition and final disposition. -- Notice of filing the petition for foreclosure and notice of the final disposition shall be recorded in the proper registry of deeds (Forms 7 and 10). but failure to record the notice of filing the foreclosure petition shall have no effect on the validity of the court proceedings thereon.

44-9-35. Errors and irregularities in proceedings. -- No tax title shall be held to be invalid by reason of any error or irregularity which is neither substantial nor misleading, whether the error or irregularity occurs in the proceedings of the collector or the assessors or in the proceedings of any other official or officials charged with duties in connection with the establishment of the tax title. , or in the proceedings to foreclose the rights of redemption as set forth in section 44-9-25 to 44-9-33 inclusive. Failure of notice under sections 44-9-9, 44-9-10 and 44-9-11 may only be raised by a party who failed to be sent notice, and, if failure of notice be proved the collector's sale shall be invalid only as to that party and no other.

44-9-43. Refund of purchase price when title based on sale without foreclosure adjudged invalid. -- Refund of purchase price, interest and costs when title based on collector's sale, treasurer's assignment or sale without foreclosure adjudged invalid. -- If, as the result of a petition, the petitioner's title is adjudged invalid by the court because of errors or irregularities in the tax proceedings upon which it was based, the clerk, upon request, shall issue a certificate to that effect. The treasurer of the town where the land affected by the title is situated, upon receipt of a release by the holder of the title of all interest which he or she may have under it, together with the certificate, shall refund to the holder the amount paid, but not exceeding the amount received by the city or town.

If, prior to filing a petition, a tax deed purchaser's title is found to be invalid because of errors or irregularities in the tax proceedings upon which it was based, the taxing authority shall execute a redemption deed and refund to the purchaser the amount paid for the tax deed.

If, as the result of a petition, the petitioner's title is adjudged invalid by the court because of errors or irregularities in the tax proceedings upon which it is based, including the sale, assignment, or auction thereof, the clerk upon request, shall issue a certificate to that effect. The treasurer of the taxing authority, upon receipt of the certificate and release from the petitioner of all interest which the petitioner may have under the tax deed, shall refund to the petitioner the amount paid therefor plus statutory interest at the rate of one percent (1%) per month from the date of payment until the date of refund and the following costs incurred by the petitioner: recording fees, service costs, advertising, and the court filing fee, notwithstanding the provisions of section 45-15-5. However, if the sale in error is caused by the violation of an automatic stay resulting from a bankruptcy or receivership, the taxing authority shall be liable to refund to the petitioner only the amount paid for the tax deed, plus statutory interest, if the taxing authority can demonstrate to the court that it conducted the sale without actual knowledge of the existence of the bankruptcy or receivership.

44-9-46. Forms. -- The following forms may be used in proceedings for the collection of taxes under this chapter, and, if substantially followed, they shall be deemed sufficient for the proceedings to which they respectively relate; but other suitable forms may also be used.

Form No. 1

Section 44-9-18

This notice to be sent by registered or certified mail.

NOTICE OF INTENTION TO ASSIGN TAX TITLE

State of Rhode Island

________________________

Name of City or Town

OFFICE OF THE TREASURER _____________________________________________________________, 19 20 ____

(Name of)

______________________________________________________________________

(Last known address)

You are hereby notified that after the expiration of ten (10) days from the date of this notice I, ____________, Treasurer of the City - Town of _____________, intend to assign and transfer to __________ the tax title on the hereinafter described land upon the payment by him or her of a sum not less than the amount necessary for redemption, the tax title having been acquired by the city or town under a tax collector's deed dated __________, 19 20 __________, and recorded in the Registry of Deeds, Book __________, Page ______.

DESCRIPTION OF LAND:

Tax Assessor's Plat ___________________ Lots ____________________

____________ Treasurer

of ________________________

Name of City or Town

Form No. 2

section 44-9-18

INSTRUMENT OF ASSIGNMENT OF TAX TITLE

(This instrument must be recorded within sixty (60) days from its date)

STATE OF RHODE ISLAND

________________________

Name of City or Town

OFFICE OF THE TREASURER

I, ______________, Treasurer of the City - Town of __________________, pursuant to the provisions of section 44-9-18, in consideration of __________/100 dollars to me paid, do hereby on behalf of the city - town assign and transfer to (Name of Assignee) of (No., Street, City, State), the tax title acquired by the city - town on the hereinafter described land under a tax collector's deed dated __________ 19 20 ______, and recorded in the __________ Registry of Deeds, Book __________, Page ______.

DESCRIPTION OF LAND

The above-mentioned sum is not less than the amount necessary for redemption, and includes all taxes assessed on the land subsequent to the assessment, for nonpayment of which the land was so purchased, and which have not been paid.

On __________, 19 20 ______, notice of intended assignment was sent by registered or certified mail to the owner of record as follows:

________________________________ _____________________________

(Name) (Last known address)

In Witness Whereof, I have hereunto set my hand and seal this __________ day of __________,19 20 ______.

WITNESS

__________________________________ Treasurer

STATE OF RHODE ISLAND,

County of ________________

In the ____________ of ____________ this ____________ day of ____________ 19 20 ______, personally appeared before me ____________, Treasurer of the City - Town of ____________, known to me and known by me to be the person who executed the foregoing instrument, and acknowledged the instrument, by him or her signed in that capacity to be his or her free and voluntary act and deed. ______________________________________________________________ Notary Public Form No. 3

Section 44-9-20

FORM OF DEED WHEN ESTATE IS REDEEMED

UNDER SECTION 44-9-19

KNOW ALL MEN BY THESE PRESENTS,

That the ____________ of ____________, in consideration of ____________, to it paid by ____________ of ____________, the receipt whereof is hereby acknowledged, does hereby remise, release, and forever quitclaim unto ____________ all the right, title, and interest which ____________ of ____________ acquired, by or under a deed made to it by the Collector of Taxes for said city - town of ____________, dated ____________ 19 20 ______, and recorded in Deed Book ____________ Page ____________ in and to the following parcel of real estate: (Description)

To have and to hold the above-released premises, with all the privileges and appurtenances to the premises belonging, to ____________, h ____________ heirs and assigns, to h ____________ and their use and behoof forever.

In witness whereof, etc.

___________________________

By: ___________________________

Treasurer

Acknowledgment. See Form 2.

Form 3.1

All the right, title and interest which the undersigned has acquired by or under a deed made to it by the Collector of Taxes of the dated , 19 20 and recorded in Book at Page in and to the following described parcel of real estate:

Lot(s) Numbered and on Plat as the same appears in the office of the Tax Assessor of the City/Town of _______________________.

The purpose of the within conveyance is to effect a redemption of the title conveyed by said Tax Collector's Deed; accordingly, the within transfer is a redemption and not a sale within the purview of RIGL 44-30-71.3.

The consideration for this conveyance is such that not tax stamps are required.

WITNESS my hand this day of 19 20 ,

Form No. 4

Section 44-9-23.

TREASURER'S CERTIFICATE OF RECEIPT OF

MONEY PAID FOR PURPOSE OF REDEMPTION

STATE OF RHODE ISLAND

________________________

Name of City or Town

OFFICE OF THE TREASURER

I, ____________, Treasurer of the City - Town of ____________, hereby certify that on this day of ____________, 19 20 ______, pursuant to the provisions of sections 44-9-19 - 44-9-23, (Name of person redeeming) ____________, residing at ____________ (No., Street, City or Town, and State), ____________ who claims to be the holder of an interest in - a mortgage on the land hereinafter described, which was purchased for nonpayment of the 19 20 ______ tax assessed thereon to ____________, has paid to me as Treasurer of the city - town the amount of ____________/100 dollars for the purpose of redeeming the land from the tax title thereby held by (Present holder of tax title), residing at ____________ (No., Street, City or Town, and State) ____________, under a tax collector's deed dated __________, 19 20 ______, and recorded in ____________ Registry of Deeds, Book ____________, Page ______. (If there has been no assignment, strike out the following reference) the tax title having been assigned to the above-named ____________ (present holder of tax title) ____________ by instrument of assignment dated ____________, 19 20 ______, and recorded in the registry, Book ____________, Page ____________.

The undersigned treasurer hereby certifies that notice of the pendency of the within redemption has been given to the tax title purchaser or his assignee as required by General Laws section 44-9-21.

The above-mentioned amount is computed as follows: (Strike out whichever computation is inapplicable)

TITLE HELD BY ORIGINAL TITLE HELD BY ASSIGNEE PURCHASER

Original Sum for which Land was Amount Stated in Instrument of

Sold $............ Assignment $..........

Intervening Taxes and Costs Paid Taxes and Costs Paid by Assignee

by Purchaser ............ since Assignment ...........

Interest According to Law ....... Interest According to Law ......

Recording ....... Recording ......

_______ _______

TOTAL AMOUNT PAID $.............. TOTAL AMOUNT PAID $...............

DESCRIPTION OF LAND

In Witness, etc.

_____________________________

By: ______________________________

Treasurer

Acknowledgment. See Form 2.

Form No. 5

Section 44-9-25

STATE OF RHODE ISLAND

PETITION TO FORECLOSE RIGHT OF REDEMPTION

To the Honorable Judges of the Superior Court:

The undersigned hereby represents that the land hereinafter described was sold on ____________ (Date of sale) ____________ for nonpayment of taxes by the town or city of ____________ in the County of ____________ by instrument dated ____________ and duly recorded on (Date) ____________ in Book ____________, Page ____________; that more than one year from the date of the sale has elapsed and no redemption has been made; that these proceedings have been conducted according to law; that the deed was recorded within sixty (60) days from date of sale - that the undersigned now holds title under the instrument; that the following are the names and addresses of all persons known to the undersigned who have any interest in the land, other than the petitioner ____________ to wit: (Also give name of wife or husband of the equity owner.)

Name ____________ Address ____________ Nature of Interest __________________ that the assessed value of the land and buildings is $____________; and that the land is described as follows:

(Description)

WHEREFORE your petitioner prays that the rights of all persons entitled to redeem from the proceedings may be foreclosed, that the Court enter a decree that the title of the petitioner to the land under the proceedings is absolute, and that all rights of redemption are barred, and for such other and further relief as may seem meet and proper to the Court.

Name _________________________________________________________

Address ______________________________________________________

On this ____________ day of ____________, 19 20 ______, personally appeared before me the within named, known to me to be the signer of the foregoing petition, and made oath that the statements therein contained so far as made of ____________ own knowledge are true and so far as made upon information and belief that ____________ believe them to be true.

Before me ______________________________________________________________

Notary Public

____________________________

Attorney for Petitioner

Form No. 6

Section 44-9-27

CITATION

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

OFFICE OF THE CLERK OF THE SUPERIOR COURT

PETITION TO FORECLOSE RIGHT OF REDEMPTION

No.

TO ALL WHOM IT MAY CONCERN, and to ________________________________ Whereas, a petition has been presented to the Court by ____________ of ____________ in the County of ____________ and the State to foreclose all rights of redemption from the lien proceedings described in the petition in and concerning a certain parcel of land situate in the County of ____________ and in the State, bounded and described in the petition as follows:

(Description)

If you desire to make any objection or defense to the petition, you or your attorney must file a written appearance and an answer, under oath, setting forth clearly and specifically your objections or defense to each part of the petition, in the office of the Superior Court in ____________ and a copy to petitioner's attorney on or before the ____________ day of ____________ next, that you may then and there show cause, if any, why the prayer of the petition should not be granted.

Unless your appearance is filed by or for you, your default will be entered, recorded, the petition will be taken as confessed, and you will be forever barred from contesting the petition or any decree judgment entered thereon. And in addition to the usual service of this notice as required by law, it is ordered that the foregoing citation be published once each week for three (3) two (2) successive weeks in the ____________ a newspaper published in ____________ (optional).

Witness, the Seal of our Superior Court at ____________ this ____________ day of __________, 19 20 ______.

__________________________ Clerk

CERTIFICATE OF SERVICE BY REGISTERED

OR CERTIFIED MAIL

I hereby certify that I have this day served the foregoing citation by causing to be mailed a duly attested copy thereof of each respondent named therein whose address was furnished by the petitioner or otherwise known to me, the copies being sent by ____________ mail and return receipts required. ______________________________________________________________

Attorney for Petitioner

CERTIFICATE OF SERVICE BY PUBLICATION

____________________ 19 20 __

I hereby certify that I have caused the foregoing citation to be published once each week for three (3) two (2) successive weeks in the ____________ a newspaper published in ____________, in the County of ____________, and the State, to wit: on the __________ day of __________, the __________ day of __________, and the __________ day of __________, 19 20 ____, a copy of which publication is hereto annexed. ______________________________________________________________

Attorney for Petitioner

Form No. 7

Section 44-9-32

(To be recorded in the Registry of Deeds)

NOTICE OF FILING PETITION

STATE OF RHODE ISLAND

SUPERIOR COURT

To all whom it may concern: ______________________________________________________________________ ______________________________________________________________________ hereby give notice that, on the __________ day __________ of __________, 19 20 ______ filed in the Court a petition against* to foreclose the right of redemption acquired under a certain tax deed (or deeds) from the Collector of Taxes for the City (or Town) of __________, in the County of __________ and the State, to me dated __________, and recorded with __________ Deeds in Book ____________, Page ____________ the deed (or deeds) covers a certain parcel of land situated in ____________ in the County of ____________ and the State, which is described as follows:

(Description)

_____________________________

*Name all respondents as in petition.

Form No. 8

Section 44-9-28

MOTION FOR DECREE PRO CONFESSO ENTRY OF DEFAULT

STATE OF RHODE ISLAND AND PROVIDENCE

PLANTATIONS

SUPERIOR COURT

No. ____________

In the matter of the Petition of _____________________________________

And now comes the petitioner in the above-entitled case and moves that a general default of all parties respondent, whether named in the notice or not, who have not appeared or answered, be recorded, and that the application as to them be taken for confessed. ________________________________________

Attorney for Petitioner

Form No. 9

Section 44-9-30

FINAL DECREE JUDGMENT IN TAX LIEN CASE

STATE OF RHODE ISLAND

SUPERIOR COURT

Case No.______________

vs.

DECREE JUDGMENT

This case came on to be heard and was argued by counsel, and thereupon, upon consideration thereof, it is

ORDERED, ADJUDGED AND DECREED that all rights of redemption are forever foreclosed and barred under the deed given by the Collector of Taxes for the __________ of __________ in the County of __________ and the State, dated __________ and duly recorded in Book __________, Page __________

By the Court.

Attest: ___________________________________________ Clerk

Dated

Form No. 10

Section 44-9-32

NOTICE OF DISPOSAL IN TAX LIEN CASE

STATE OF RHODE ISLAND

SUPERIOR COURT

This is to certify that the petition of

vs.

to foreclose the right of redemption under certain deed __________ for nonpayment of taxes, given by the Collector of Taxes for the __________ in the County of ____________ and the State, dated __________ and duly recorded in Book __________, Page __________ was filed in this Court on ______________

Thereafter due proceedings under the petition were instituted according to law, and finally on __________, a decree forever foreclosing and barring all rights of redemption under the deed was entered, and this notice of final disposition of the petition is directed to be recorded in the Registry of Deeds for the City of __________ in __________ County, pursuant to section 44-9-32. By the Court,

Attest: _______________________________

Clerk

Dated

Form No. 11

Section 44-9-36

NOTICE OF SALE - LAND OF LOW VALUE

STATE OF RHODE ISLAND

________________________

Name of City or Town

OFFICE OF THE TREASURER

____________________, 19 20 ____

NOTICE IS HEREBY GIVEN THAT ON ________________________ the ________ day of __________, 19 20 ____, at __________ o'clock ____ M., at __________ (Place of Sale) __________________ pursuant to the provisions of sections 44-9-36 - 44-9-45, I SHALL OFFER FOR SALE AT PUBLIC AUCTION, severally or together, certain parcels of land of low value listed below, these parcels having been purchased by the City - Town of __________ for nonpayment of the taxes due thereon.

(List of Parcels)

______________________________________________________________ Treasurer of ____________________________________________________________ (Name of City or Town)

To be posted in some convenient and public place in the city or town at least fourteen (14) days before the sale.

Form No. 12

Section 44-9-36

NOTICE OF SALE

LAND OF LOW VALUE

STATE OF RHODE ISLAND

________________________

Name of City or Town

OFFICE OF THE TREASURER

____________________, 19

20 _______

NOTICE IS HEREBY GIVEN THAT on __________, 19 20 ______, at __________ M., at __________ (Place of Sale) __________, pursuant to the provisions of sections 44-9-36 - 44-9-45, I SHALL OFFER FOR SALE AT PUBLIC AUCTION, severally or together, certain parcels of land of low value listed below, these parcels having been purchased by the City - Town of __________ for nonpayment of the taxes due thereon.

(List of parcels)

Further notice is given that the following land in which you appear to have an interest is included in the sale.

(Description as given in original notice of sale)

Amount Required for Redemption on Above Date of Sale, $________

Your attention is directed to section 44-9-39 as follows:

"Any person having a right of redemption or any other interest in the land conveyed or purporting to be conveyed under section 44-9-36 or section 44-9-38, upon whom service of the notice of sale provided in section 44-9-36 has been made by registered or certified mail, who, prior to the sale, neither redeems the land nor brings proceedings to enjoin the sale, shall, upon the recording of the deed as required by section 44-9-36 or section 44-9-38, be forever barred from raising any question concerning the validity of the title conveyed, and a statement contained in the treasurer's deed that service has been made, naming the persons who were served by registered or certified mail, shall be prima facie evidence of service." _______________________________________________________________

Treasurer of City - Town of -

Send this notice by registered or certified mail, return receipt requested, at least fourteen (14) days before the sale, to any person having a right of redemption or any other interest in any of the parcels to be sold.

Form No. 13

Section 44-9-36

This deed is not valid unless recorded in the proper registry of deeds within sixty (60) days after the sale.

TREASURER'S DEED TO A PERSON - LAND OF

LOW VALUE

STATE OF RHODE ISLAND

________________________

Name of city or town

OFFICE OF THE TREASURER

I, __________________, Treasurer of the City - Town of ______________ pursuant to the provisions of section 44-9-36, in consideration of ____________/100 dollars to me paid, hereby grant to ____________ of ____________ the parcel-parcels of land described in the tax collector's deed to which reference is made in the following schedule: ______________________________________________________________________ ______________________________________________________________________

Name of Person Assessed Names of Interested Persons

in the Year of the Tax for Recorded served by registered or

which the land was taken or certified mail with notice

sold. of sale under section 44-9-39.

___________

Location of Parcel Book Page ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

The land hereby granted was assessed for $__________ and was offered for sale at public auction on __________, 19 20 ______, in accordance with a notice of sale posted on __________, 19 20 ______, in (Specify place where notice was posted) __________; and was sold to the above-named grantee (at the original time and place appointed for the sale - at an adjournment of the sale on __________, 19 20 ______,) that grantee being the highest bidder whose bid was not rejected as inadequate.

This deed is given with the covenant that the aforesaid sale was in all particulars conducted according to law.

In Witness, etc.

_______________________________________ Treasurer of the City -- Town of

Acknowledgment. See Form 2.

Form No. 14

Section 44-9-38

This deed is not valid unless recorded in the proper registry of deeds within sixty (60) days after the sale.

TREASURER'S DEED TO MUNICIPALITY - LAND OF

LOW VALUE

STATE OF RHODE ISLAND

________________________

Name of City of Town

OFFICE OF THE TREASURER

I, __________________, Treasurer of the City - Town of ______________, pursuant to the provisions of sections 44-9-36 - 44-9-38, hereby grant to the city - town the parcel-parcels of land described in the tax collector's deed to which reference is made in the following schedule: ______________________________________________________________________ ______________________________________________________________________ Name of

Name of Person Assessed Names of Interested Persons

in the Year of the Tax for Recorded served by registered or

which the land was taken or certified mail with notice

sold. of sale under section 44-9-39.

___________

Location of Parcel Book Page ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

The land hereby granted was assessed for $__________ and was offered for sale at public auction on __________, 19 20 ______, in accordance with a notice of sale posted on __________, 19 20 ______, in (Specify place where notice of sale posted) on __________, 19 20 ______, in (Specify place where notice was posted). (Strike out Paragraph (A) or (B) as the Circumstances Require)

No bid

(A) No bid deemed adequate by me was made at the time and place appointed for the sale or at any adjournment thereof, and the city - town therefore became the purchaser at an adjournment of the sale on __________, 19 20 ______.

(B) The purchaser failed to pay the amount bid by him or her at ____ the original time and place appointed for the sale, or __________ an adjournment of the sale on __________, 19 20 ______, within ten (10) days thereafter, wherefore the sale became void and the city - town became the purchaser. In Witness, etc. ______________________________________

Treasurer of the City or Town

Acknowledgment. See Form 2.

Form No. 15

Section 44-9-40

STATE OF RHODE ISLAND

Petition to Establish Title Acquired under section 44-9-36 or section 44-9-38. To the Honorable, the Judges of the Superior Court.

The undersigned hereby represent that the land hereinafter described was sold on __________ for the nonpayment of taxes by __________, County of __________. Pursuant to sections 44-9-36 and 44-9-38, the land was conveyed to __________ by instrument dated __________ and recorded in Book __________, Page __________, that the undersigned now hold title under an instrument from __________ dated __________, and duly recorded in Book __________, Page __________, that the following are the names and addresses of all persons known to the undersigned who have any interest in the land other than the petitioner __________________ to wit: that the assessed value of the land and buildings is $__________; and that the land is described as follows:

(Description)

Wherefore your petitioner prays that all persons having an interest in the above-described premises show cause why they should not bring an action to try any claim or claims which they may have adverse to your petitioner's title. And if such persons do not appear within the time fixed or having appeared disobey the lawful Order of the Court to try their claim or claims, that the Court enter a decree judgment that they be forever barred from having or enforcing any claim or claims adversely to the petitioner, his or her heirs or assigns, in the land described.

__________________________________

__________________________________

On this __________ day of __________, 19 20 ______, personally appeared before me the within named __________, known to me to be the signers of the foregoing petition, and made oath that the statements therein contained so far as made of their own knowledge are true and so far as made upon information and belief that they believe them to be true.

Before me

_____________________________________

Notary Public

SECTION 2. This act shall take effect upon passage, and shall apply to tax sales occurring on or after December 31, 2001.

=======
LC00229
=======

EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF

***

This act would amend certain provisions of the law relating to tax sales including the taxing entities entitled to a lien and the manner of notice of tax sales.

This act would take effect upon passage, and would apply to tax sales occurring on or after December 31, 2001.