2013 -- H 5232

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PROPERTY - CONDOMINIUM LAW

     Introduced By: Representatives Shekarchi, Lombardi, Serpa, Dickinson, and Naughton

     Date Introduced: January 31, 2013

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-36.1-3.21 of the General Laws in Chapter 34-36.1 entitled

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"Condominium Law" is hereby amended to read as follows:

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     34-36.1-3.21. Foreclosure of condominium lien. -- (a) (1) If a condominium unit owner

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shall default in the payment of any assessment, fine, or any other charge which is a lien on the

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unit in favor of the association or its assigns, then it shall be lawful for the association or its

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assigns, through its executive board, to sell the unit of any defaulting unit owner and the benefit

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and equity of redemption of the defaulting unit owner and his or her heirs, executors,

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administrators, and assigns therein, at public auction upon the premises or at such other place, if

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any, as may be designated for that purpose by the association or its assigns.

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      (2) The association must first mail written notice of the time and place of sale to the

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defaulting unit owner, at his or her last known address and the holder of the first mortgage or

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deed of trust of record at the address for service required by subdivision 34-36.1-3.16(b)(4), both

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by certified mail, return receipt requested, at least twenty (20) days prior to publishing said

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notice; second, the association must publish the same at least once each week for two (2)

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successive weeks in a public newspaper. The time of sale shall be at least fifteen (15) days after

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the publication of the first notice in a public newspaper. Publication shall be as follows: in a

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public newspaper published daily in the city or town in which the condominium is situated, but if

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there is no such newspaper so published, then in a public newspaper published daily anywhere in

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the county in which the condominium is situated. If there is no public newspaper published daily

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in the county in which the condominium is situated, publication shall be in a public newspaper

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published daily in the city of Providence.

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      (i) If the condominium is situated in the city of Central Falls, in a public newspaper

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published daily in the city of Pawtucket;

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      (ii) If the condominium is situated in the town of North Providence, in a public

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newspaper published daily in the city of Providence;

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      (iii) If the condominium is situated in any of the towns of Cumberland, Lincoln,

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Smithfield or North Smithfield, in a public newspaper published daily in either the city of

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Pawtucket, Woonsocket, or Providence;

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      (iv) If the condominium is situated in the county of Providence elsewhere than in the

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above last named cities and towns, in a public newspaper published daily in the city of

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Providence;

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      (v) If the condominium is situated in the county of Newport, in a public newspaper

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published daily in the city of Newport; but if there be no such newspaper so published, then in

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some public newspaper published anywhere in the county of Newport;

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      (vi) If the condominium is situated in any of the counties of Bristol, Kent, or

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Washington, in a public newspaper published daily in the city or town in which the condominium

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is situated; or in some public newspaper published daily in the county in which the condominium

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is situated or in a public newspaper published daily in the city of Providence.

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      (3) The sale may be adjourned from time to time, provided that publishing of the notice

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shall be continued, together with a notice of the adjournment or adjournments, at least once each

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week in the same newspaper; and third, the association must mail written notice of the same to

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any person or entity having an interest of record in the unit, recorded not later than thirty (30)

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days prior to the date originally scheduled for the sale, including without limitation, the holder of

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any mortgage or deed of trust with respect to the unit, to the address of the person or entity may

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have provided for that purpose in the land evidence records or at any other address the person or

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entity may have provided the association in writing, such notice to be given by regular or certified

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mail, return receipt requested, at least ten (10) days prior to the date originally scheduled for such

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sale; and in his or her or their own name or names, or as the attorney or attorneys of the

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defaulting unit owner (for that purpose by these presents duly authorized and appointed with full

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power of substitution and revocation) to make, execute, and deliver to the purchaser or purchasers

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at the sale a good and sufficient deed or deeds of the defaulted condominium unit, in fee simple,

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and to receive the proceeds of the sale or sales, and from the proceeds to retain all sums secured

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by the lien in favor of the association as of the date of such sale together with all expenses

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incident to such sale or sales, or for making deeds hereunder, and for fees of counsel and

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attorneys, and all costs or expenses incurred in the exercise of such powers, and all taxes,

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assessments, and premiums for insurance, if any, either theretofore paid by the association, or its

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assigns, or then remaining unpaid upon the defaulted condominium unit, rendering and paying the

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surplus of the proceeds of sale, if any there be, over and above the amounts to be retained, and

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paid to other encumbrances of record, together with a true and particular account of such sale or

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sales, expenses, and charges, to the defaulting unit owner, or his or her heirs, executors,

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administrators or assigns. The sale or sales shall forever be a perpetual bar against the defaulting

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unit owner and his or her heirs, executors, administrators and assigns, and all persons claiming

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the defaulted condominium unit, so sold, by, through or under him, her, them or any of them

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subject to rights of redemption referenced herein.

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      (4) Within seven (7) days after the foreclosure sale, the association shall send an

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additional written notice to the defaulting unit owner, at his or her last known address and the

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holder of the first mortgage or deed of trust of record as appears in the land evidence records on

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the day of the foreclosure sale, as provided in subdivision 34-36.1-3.16(b)(4) by certified mail,

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return receipt requested, and first class mail, identifying the name of the highest bidder and the

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amount of the bid.

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      (b) Any foreclosure sale held by the association pursuant to subsection (a) above, and the

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title conveyed to any purchaser or purchasers pursuant to such sale, shall be subject to any lien or

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encumbrance entitled to a priority over the lien of the association pursuant to section 34-36.1-

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3.16(b).

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      (c) Any foreclosure sale held by the association pursuant to subsection (a) above, shall

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be subject to a thirty (30) day right of redemption running in favor of the defaulting unit owner

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and the holder of the first mortgage or deed of trust of record. The right of redemption shall be

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exercised by tendering payment to the association in full of all assessments due on the unit

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together with all attorney's fees and costs incurred by the association in connection with the

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collection and foreclosure process within thirty (30) days of the date of the post-foreclosure sale

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notice sent by the association pursuant to subdivision (a)(4) above. Otherwise, the right of

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redemption shall terminate thirty (30) days from the date of the post-foreclosure sale notice sent

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by the association pursuant to subdivision (a)(4) above.

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      (d) Upon request the association shall provide to any person or entity having an interest

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of record in the unit: (1) an itemized statement of the amounts owed the association by the

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defaulting unit owner, separating common expense assessments referred to in section 34-36.1-

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3.16(b)(2) from interest, attorney's fees, fines and other charges secured by the lien of the

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association; and (2) a copy of the most recent periodic budget adopted by the association pursuant

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to section 34-36.1-3.15(a).

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY - CONDOMINIUM LAW

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     This act would amend the condominium lien foreclosure law to allow for publication of

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legal advertisements in any public newspaper published in the municipality where the

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condominium unit is located, and, if no such newspaper exists, then in any public newspaper

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published daily in the county where the condominium is located.

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     This act would also extend the right of redemption to the defaulting unit owner of the

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condominium.

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     This act would take effect upon passage.

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LC00427

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