2012 -- S 2658

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LC00980

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PROPERTY - FORM AND EFFECT OF CONVEYANCES

     Introduced By: Senator Erin P. Lynch

     Date Introduced: March 01, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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assigns.

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

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

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

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

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

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

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date of execution;

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

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recording;

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

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

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

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

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

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

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

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described in the instrument is located:

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

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

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

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

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individual who executes and acknowledges the instrument:

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

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

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

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

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

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

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

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

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

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

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

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recorded after the instrument is recorded.

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

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

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

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

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

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

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

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

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date of recording of such instrument.

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

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

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

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

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

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

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without the defect:

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

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

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

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

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of approval and acceptance no appeal has been taken; or

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

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

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

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

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was not given, provided either:

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

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

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of approval and acceptance no appeal has been taken; or

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

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

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

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

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

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

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

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

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

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

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

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

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

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after the instrument is recorded.

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     SECTION 2. This act shall take effect upon passage.

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LC00980

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY - FORM AND EFFECT OF CONVEYANCES

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

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conveyance contains a minor defect.

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     This act would take effect upon passage.

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LC00980

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