2012 -- H 7390

=======

LC00981

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO PROPERTY - FORM AND EFFECT OF CONVEYANCES

     Introduced By: Representatives Lally, Jackson, and Schadone

     Date Introduced: February 02, 2012

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Chapter 34-11 of the General Laws entitled “Form and Effect of

1-2

Conveyances” is hereby amended by adding thereto the following section:

1-3

     34-11-42. Conveyancing defect. -- (a) Notwithstanding any other statute to the contrary,

1-4

any deed, mortgage, lease, power of attorney, release, assignment or other instrument made for

1-5

the purpose of conveying, leasing, mortgaging or affecting any interest in real property in this

1-6

state recorded after the effective date hereof, which instrument contains any one or more of the

1-7

following defects or omissions is as valid as if it had been executed without the defect or

1-8

omission unless an action challenging the validity of that instrument is commenced, and a notice

1-9

of lis pendens is recorded in the land records of the municipality or municipalities where the

1-10

instrument is recorded, within two (2) years after the instrument is recorded:

1-11

     (1) The instrument contains a defective acknowledgment or no acknowledgment;

1-12

     (2) In the case of a conveyance by a corporation, limited liability company, partnership,

1-13

limited partnership, or limited liability partnership, or by any other entity authorized to hold and

1-14

convey title to real property within this state, the instrument designated such entity as the grantor

1-15

but was signed or acknowledged by an individual in such person’s individual capacity;

1-16

     (3) The instrument was made to any grantee not recognized by law to have the capacity to

1-17

take or hold an interest in real property. Validation of an instrument under this subdivision

1-18

confirms the conveyance to the grantee and any subsequent transfers of the interest by the grantee

1-19

to any subsequent transferees, their heirs, administrators, legal representatives, successors and

1-20

assigns.

2-1

     (b) Notwithstanding any other statute to the contrary, any deed, mortgage, lease, power of

2-2

attorney, release, assignment or other instrument made for the purpose of conveying, leasing,

2-3

mortgaging or affecting any interest in real property in this state recorded after the effective date

2-4

hereof, which instrument contains any one or more of the following defects or omissions is as

2-5

valid as if it had been executed without the defect or omission:

2-6

     (1) The instrument contains an incorrect statement of the date of execution or omits the

2-7

date of execution;

2-8

     (2) The instrument contains an execution date or other date that is later than the date of

2-9

recording;

2-10

     (3) The instrument transfers an interest in land by reference to a filed map or subdivision

2-11

plan and the map or plan does not comply as to preparation, form, certification, approval or filing

2-12

with any requirement of any special or general law, municipal ordinance or regulation

2-13

     (4) The instrument conveys an interest in a lot or parcel of land in a subdivision that was

2-14

not submitted for approval or that was submitted for approval but was not approved:

2-15

     (5) The record does not disclose the date of recording:

2-16

     (6) The instrument fails to state the city or town and state in which the real property

2-17

described in the instrument is located:

2-18

     (7) In the case of a conveyance by a corporation, limited liability company, partnership,

2-19

limited partnership or limited liability partnership, or by any other entity authorized to hold and

2-20

convey title to real property within this state, the instrument designates such entity as the grantor

2-21

but fails to disclose either the authority of or the office or status held in the entity by the

2-22

individual who executes and acknowledges the instrument:

2-23

     (c) Notwithstanding any other statute to the contrary, any deed, mortgage, lease, power of

2-24

attorney, release, assignment or other instrument made for the purpose of conveying, leasing,

2-25

mortgaging or affecting any interest in real property in this state recorded after the effective date

2-26

hereof, which instrument is executed pursuant to a recorded power of attorney and contains any

2-27

one or more of the following defects, is as valid as if it had been executed without the defect

2-28

unless an action challenging, the validity of that instrument is commenced and a notice of lis

2-29

pendens is recorded in the land records of the municipality or municipalities where the instrument

2-30

is recorded within two (2) years after the instrument is recorded:

2-31

     (1) The instrument was executed by an attorney-in-fact but was signed or acknowledged

2-32

by the attorney-in-fact without reference to his, her or its capacity;

2-33

     (2) The power of attorney was effective at the time the instrument was executed but is

2-34

recorded after the instrument is recorded.

3-1

     (d) Notwithstanding any other statute to the contrary, any recorded deed, mortgage, lease,

3-2

release, assignment or other instrument made for the purpose of conveying, leasing, mortgaging

3-3

or affecting any interest in real property in this state recorded after the effective date hereof,

3-4

which instrument is executed by a fiduciary, but which instrument is voidable because the

3-5

fiduciary is the grantee, mortgagee, lessee, releasee or assignee designated in such instrument, is

3-6

as valid as if it had been executed without the defect unless an action is commenced to avoid and

3-7

set aside such instrument and a notice of lis pendens is recorded in the land records of the

3-8

municipality or municipalities where the instrument is recorded within ten (10) years from the

3-9

date of recording of such instrument.

3-10

     (e) Notwithstanding any other statute to the contrary, any deed, mortgage, lease, power of

3-11

attorney, release, assignment or other instrument made for the purpose of conveying, leasing,

3-12

mortgaging or affecting any interest in real property in this state recorded after the effective date

3-13

hereof, which instrument was executed by an executor, administrator, guardian, trustee,

3-14

conservator or other fiduciary pursuant to an order or authorization of the probate court and

3-15

which contains any one or more of the following defects, is as valid as if it had been executed

3-16

without the defect:

3-17

     (1) The fiduciary failed to post a bond required by the court for the faithful administration

3-18

and distribution of the proceeds of the sale, provided either:

3-19

     (i) The fiduciary has accounted for the proceeds of the sale in an administration account

3-20

that has been approved and accepted by the court after notice and hearing, and from which order

3-21

of approval and acceptance no appeal has been taken; or

3-22

     (ii) No action challenging the validity of that instrument is commenced and no notice of

3-23

lis pendens is recorded in the land records of the municipality or municipalities where the

3-24

instrument is recorded within two (2) years after the instrument is recorded;

3-25

     (2) Required notice of the probate court hearing on the application for an order of sale

3-26

was not given, provided either:

3-27

     (i) The fiduciary has accounted for the proceeds of the sale in an administration account

3-28

that has been approved and accepted by the court after notice and hearing, and from which order

3-29

of approval and acceptance no appeal has been taken; or

3-30

     (ii) No action challenging the validity of the instrument is commenced and no notice of

3-31

lis pendens is recorded in the land records of the municipality or municipalities where the

3-32

instrument is recorded within two (2) years after the instrument is recorded;

3-33

     (3) The fiduciary failed to recite in the instrument the basis of the authority by which the

3-34

fiduciary acted, provided that no action challenging the validity of the instrument is commenced

4-1

and no notice of lis pendens is recorded in the land records of the municipality or municipalities

4-2

where the instrument is recorded within two (2) years after the instrument is recorded.

4-3

     (f) Notwithstanding any other statute to the contrary, a discharge or assignment of a

4-4

mortgage interest in real property in this state held by a nonresident or deceased nonresident that

4-5

is executed by an out-of-state fiduciary and recorded after the effective date hereof, shall have the

4-6

same effect as if executed by a fiduciary of this state unless an action contesting the discharge or

4-7

assignment is commenced and a notice of lis pendens has been recorded in the land records of the

4-8

municipality or municipalities where such release or assignment is recorded within two (2) years

4-9

after the instrument is recorded.

4-10

     SECTION 2. This act shall take effect upon passage.

=======

LC00981

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY - FORM AND EFFECT OF CONVEYANCES

***

5-1

     This act would validate the conveyance of real estate interests where the instrument of

5-2

conveyance contains a minor defect.

5-3

     This act would take effect upon passage.

=======

LC00981

=======