2017 -- H 5097

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LC000123

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM DISPUTE RESOLUTION

     

     Introduced By: Representatives Corvese, O'Brien, Coughlin, and Azzinaro

     Date Introduced: January 12, 2017

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by

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adding thereto the following chapter:

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CHAPTER 36.2

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CONDOMINIUM DISPUTE RESOLUTION

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     34-36.2-1. Definitions.

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     (a) As used in this chapter, the term "dispute" means a disagreement between two (2) or

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more parties that involves:

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     (1) The authority of the board of directors, under this chapter or association documents,

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to:

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     (i) Require any owner to take any action, or not to take any action, involving that owner's

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unit or the appurtenances thereto; or

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     (ii) Alter or add to a common area or element.

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     (2) The failure of a governing body, when required by chapter 36.1 of title 34 or an

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association document, to:

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     (i) Properly conduct elections;

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     (ii) Give adequate notice of meetings or other actions;

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     (iii) Properly conduct meetings; or

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     (iv) Allow inspection of books and records.

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     (b) "Dispute" does not include any disagreement that primarily involves: title to any unit

 

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or common element; the interpretation or enforcement of any warranty; the levy of a fee or

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assessment, or the collection of an assessment levied against a party; the eviction or other

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removal of a tenant from a unit; alleged breaches of fiduciary duty by one or more directors; or

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claims for damages to a unit based upon the alleged failure of the association to maintain the

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common elements or condominium property.

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     34-36.2-2. Arbitration.

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     Every Rhode Island condominium declaration shall contain the following provisions:

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     (1) Any person, referred to in this section as "the plaintiff" asserting a dispute, as defined

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in §34-36.2-1, may, at their election, submit the matter to arbitration pursuant to chapter 3 of title

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10.

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     (2) Selection of arbitrator. - After submission to arbitration by the plaintiff, one arbitrator

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shall be selected from the list of qualified arbitrators of the court annexed arbitration program of

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the superior court in the same manner as arbitrators are selected in accordance with the rules of

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that program. Each party shall share the expenses of arbitration in accordance with the rules of

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the court annexed arbitration program;

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     (3) Hearings. - The arbitrator shall call a hearing and provide seven (7) days' notice of the

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time and place of the hearing to the parties. The hearing shall be informal, and the rules of

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evidence prevailing in judicial proceedings shall be binding. Any and all documentary evidence

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and other data deemed relevant by the arbitrators may be received in evidence. The arbitrators

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shall have the power to administer oaths and to require by subpoena the attendance and testimony

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of witnesses, and the production of books, records, and other evidence, relative or pertinent to the

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issues presented to them for determination. The decision of the arbitrators shall be binding upon

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the parties unless:

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     (i) In the event that suit has not been instituted, either party reserves their right to a jury

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trial by giving notice of this reservation of right to the other party or parties and to the arbitrators

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within sixty (60) days of the arbitrator's award by certified mail return receipt requested; or

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     (ii) In the event that suit has been instituted, either party files a request for a jury trial

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with the court and with notice to the other party or parties within sixty (60) days of the arbitrator's

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award. If the case proceeds to trial subsequent to arbitration, the decision of the arbitrators shall

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not be admissible;

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     (4) Statute of limitations. - Notwithstanding the foregoing, a suit shall be instituted in

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order to bring the action within any applicable statute of limitations, but the suit will be stayed

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until an arbitrator's award has been made or the case reached for trial.

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     SECTION 2. Sections 34-36.1-2.05 and 34-36.1-3.06 of the General Laws in Chapter 34-

 

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36.1 entitled "Condominium Law" are hereby amended to read as follows:

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     34-36.1-2.05. Contents of declaration.

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     (a) The declaration for a condominium must contain:

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      (1) The name of the condominium, which must include the word "condominium" or be

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followed by the words "a condominium," and the association;

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      (2) The name of every municipality in which any part of the condominium is situated;

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      (3) A legally sufficient description of the real estate included in the condominium;

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      (4) A statement of the maximum number of units which the declarant reserves the right

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to create;

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      (5) A description of the boundaries of each unit created by the declaration, including the

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unit's identifying number;

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      (6) A description of any limited common elements, other than those specified in § 34-

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36.1-2.02(2) and (4), or as provided in § 34-36.1-2.09(b)(10);

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      (7) A description of any real estate (except real estate subject to development rights)

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which may be allocated subsequently as limited common elements, other than limited common

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elements specified in § 34-36.1-2.02(2) and (4), together with a statement that they may be so

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allocated;

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      (8) A description of any development rights and other special declarant rights (§ 34-

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36.1-1.03(26)) reserved by the declarant, together with a legally sufficient description of the real

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estate to which each of those rights applies, and a time limit within which each of those rights

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must be exercised;

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      (9) If any development right may be exercised with respect to different parcels of real

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estate at different times, a statement to that effect together with:

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      (i) Either a statement fixing the boundaries of those portions and regulating the order in

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which those portions may be subjected to the exercise of each development right, or a statement

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that no assurances are made in those regards, and

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      (ii) A statement as to whether, if any development right is exercised in any portion of the

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real estate subject to that development right, that development right must be exercised in all or in

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any other portion of the remainder of that real estate;

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      (10) Any other conditions or limitations under which the rights described in subdivision

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(8) of this section may be exercised or will lapse;

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      (11) An allocation to each unit of the allocated interests in the manner described in § 34-

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36.1-2.07;

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      (12) Any restrictions on use, occupancy, and alienation of the units, including any

 

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housing restrictions as set forth in § 34-39.1-3;

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      (13) The recording data for recorded easements and licenses appurtenant to or included

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in the condominium or to which any portion of the condominium is or may become subject by

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virtue of a reservation in the declaration; and

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      (14) All matters required by §§ 34-36.1-2.06, 34-36.1-2.07, 34-36.1-2.08, 34-36.1-2.09,

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34-36.1-2.15, 34-36.1-2.16, and 34-36.1-3.03(d). ; and

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     (15) A description of procedures to be utilized to resolve condominium dispute(s)

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pursuant to chapter 36.2 of title 34.

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      (b) The declaration may contain any other matters the declarant deems appropriate.

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     34-36.1-3.06. Bylaws.

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     (a) The bylaws of the association must provide for:

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      (1) The number of members of the executive board and the titles of the officers of the

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association;

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      (2) Election by the executive board of a president, treasurer, secretary, and any other

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officers of the association the bylaws specify;

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      (3) The qualifications, powers and duties, terms of office, and manner of electing and

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removing executive board members and officers and filling vacancies;

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      (4) Which, if any, of its powers the executive board or officers may delegate to other

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persons or to a managing agent;

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      (5) Which of its officers may prepare, execute, certify and record amendments to the

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declaration on behalf of the association; and

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      (6) The method of amending the bylaws. ; and

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     (7) Resolution of condominium disputes as defined by §34-36.2-1.

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      (b) Subject to the provisions of the declaration, the bylaws may provide for any other

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matters the association deems necessary and appropriate.

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     SECTION 3. This act shall take effect on January 1, 2018.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM DISPUTE RESOLUTION

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     This act would establish an arbitration process to resolve certain condominium disputes,

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in accordance with the provisions of "The Arbitration Act," chapter 3 of title 10. This act also

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would require that certain information regarding arbitration be included within Rhode Island

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condominium declarations.

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     This act would take effect on January 1, 2018.

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