2017 -- H 5694

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LC001422

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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 -- FORM AND EFFECT OF CONVEYANCES

     

     Introduced By: Representatives Ackerman, Craven, Marshall, Solomon, and
Marszalkowski

     Date Introduced: March 01, 2017

     Referred To: House 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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     34-11-45. Validation of conveyancing defects.

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     (a) Conveyancing defects. Notwithstanding any other provision of the general or public

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laws to the contrary, any deed, mortgage, lease, power of attorney, release, assignment or other

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instrument made for the purpose of conveying, leasing, mortgaging or affecting any interest in

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real property in this state, which instrument contains any one or more of the following defects or

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omissions, is as valid as if it had been executed without the defect or omission, unless an action

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challenging the validity of that instrument is commenced, and a notice of lis pendens is recorded

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in the land evidence records of the city or town where the instrument is recorded, within two (2)

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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 designates the entity as the grantor,

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

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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 subsection

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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) Insubstantial defects. Notwithstanding any provision of the general or public laws to

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the contrary, any deed, mortgage, lease, power of attorney, release, assignment or other

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instrument made for the purpose of conveying, leasing, mortgaging or affecting any interest in

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real property in this state, which instrument contains any one or more of the following defects or

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omissions is as 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 record does not disclose the date of recording;

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     (5) The instrument fails to state the town and state in which the real property described in

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the instrument is located; or

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     (6) 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 states, the instrument designates the 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) Defect with respect to a power of attorney. Notwithstanding any other provision of the

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general or public laws to the contrary, any deed, mortgage, lease, power of attorney, release,

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

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affecting any interest in real property in this state, if the instrument is validly recorded, is

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executed pursuant to a recorded power of attorney and contains any one or more of the following

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defects, is as valid as if the instrument had been executed without the defect unless an action

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challenging the validity of the instrument is commenced and a notice of lis pendens is recorded in

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the land evidence records of the city or town where the instrument is recorded within two (2)

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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 their 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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     (3) The power of attorney was not effective at the time the instrument was executed, but

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the grant of the power includes a ratification of all prior acts of the attorney-in-fact.

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     (d) Defect where fiduciary conveyed to self. Notwithstanding any other provision of the

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general or public laws to the contrary, any recorded deed, mortgage, lease, release, assignment or

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other instrument made for the purpose of conveying, leasing, mortgaging or affecting any interest

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in real property in this state, which instrument is executed by a fiduciary, but which instrument is

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voidable because the fiduciary is the grantee, mortgagee, lessee, releasee or assignee designated

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in such instrument, is as valid as if it had been executed without the defect unless an action is

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commenced to avoid and set aside such instrument, and a notice of lis pendens is recorded in the

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land evidence records of the city or town where the instrument is recorded within ten (10) years

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from the date of recording of such instrument.

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     (e) Defect with respect to conveyance by fiduciary. Notwithstanding any other provision

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of the general or public laws to the contrary, any deed, mortgage, lease, power of attorney,

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

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

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instrument was executed by an executor, administrator, guardian, trustee, conservator or other

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fiduciary pursuant to an order or authorization of the probate court, and which contains any one

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or more of the following defects, is as valid as if it had been executed 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 evidence records of the city or town where the instrument is

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

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     (iii) The estate is closed; and any appeal time therefrom has elapsed.

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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 evidence records of the city or town where the instrument is

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

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     (iii) The estate is closed; and any appeal time therefrom has elapsed.

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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 evidence records of the city or towns where

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

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     (f) Discharge or assignment of mortgage by out-of-state fiduciary. Notwithstanding any

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other provision of the general or public laws 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 thereof, shall have

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

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

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records of the city or towns where such release or assignment is recorded within two (2) years

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after the instrument is recorded.

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     (g) Defect with respect to mortgage foreclosure. Notwithstanding any other provision of

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the general or public laws to the contrary, a judicial or non-judicial mortgage foreclosure that is

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subject to any defect of any kind or description that could affect its validity or effectiveness will

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be deemed as valid and effective as if it had been conducted without such defect unless, within

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two (2) years from the date of recording of the foreclosure deed evidencing the mortgage

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foreclosure, or for foreclosure deeds recorded prior to the enactment of this subsection, two (2)

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years from the effective date of its enactment:

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     (1) An action contesting the validity of the foreclosure is commenced in the superior

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court for the county in which the real estate described in the mortgage is located; and

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     (2) A notice of lis pendens has been recorded in the land evidence records in each city or

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town where the foreclosed mortgage is recorded.

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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 -- FORM AND EFFECT OF CONVEYANCES

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     This act would validate certain conveyancing defects in various instruments executed by

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or affecting grantors, grantees, business entities, powers of attorney, probate fiduciaries, mortgage

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discharges and foreclosures or certain clerical defects.

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     This act would take effect upon passage.

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