CHAPTER 84
2001-H 6356A
Enacted 07/06/2001


A  N     A   C   T

RELATING TO PROPERTY

Introduced By:  Reps. Menard, Cambio, Crowley, Picard and Reilly Date Introduced:  May 1, 2001

It is enacted by the General Assembly as follows:

SECTION 1. Sections 34-36.1-3.16 and 34-36.1-3.21 of the General Laws in Chapter 34-36.1 entitled "Condominium Law" are hereby amended to read as follows:

34-36.1-3.16. Lien for assessments. -- (a) The association has a lien on a unit for any assessment levied against that unit or fines imposed against its unit owner from the time the assessment or fine becomes due. The association's lien may be foreclosed in accordance with and subject to the provisions of section 34-36.1-3.21. Unless the declaration otherwise provides, attorney's fees, charges, late charges, fines, and interest charged pursuant to section 34-36.1-3.02(a)(10) -- (12) are enforceable as assessments under this section. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment thereof becomes due.

(b) (1) A lien under this section is prior to all other liens and encumbrances on a unit except:

(i) Liens and encumbrances recorded before the recordation of the declaration and not subordinated to the declaration,

(ii) A first mortgage or deed of trust on the unit recorded before the date on which the assessment sought to be enforced became delinquent, and

(iii) Liens for real estate taxes and other governmental assessments or charges against the unit.

(2) The lien is also prior to any mortgage or deed of trust described in subdivision (b)(1)(ii) above to the extent of the common expense assessments based on the periodic budget adopted by the association pursuant to section 34-36.1-3.15(a) which would have become due in the absence of acceleration during the six (6) months immediately preceding the foreclosure of the interest of the unit owner by the holder of any such mortgage or deed of trust, including any costs and reasonable attorney's fees not to exceed one two thousand five hundred dollars ($1000)($2500), incurred in the collection of any delinquent assessment or other charges by legal proceedings or otherwise.

(3) This subsection does not affect the priority of mechanics' or materialmen's liens, or the priority of liens for other assessments made by the association.

(c) Unless the declaration otherwise provides, if two (2) or more associations have liens for assessments created at any time on the same real estate, those liens have equal priority.

(d) Recording of the declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for assessment under this section is required but is permitted.

(e) A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within six (6) years after the full amount of the assessments becomes due.

(f) This section does not prohibit actions to recover sums for which subsection (a) creates a lien or prohibit an association from taking a deed in lieu of foreclosure.

(g) A judgment or decree in any action brought under this section must include costs and reasonable attorney's fees for the prevailing party.

(h) The association, upon written request shall furnish to a unit owner or the holder of a first mortgage or deed of trust granted with respect to such unit owner's unit a recordable statement setting forth the amount of unpaid assessments against his or her unit. The statement must be furnished within ten (10) business days after receipt of the request and is binding on the association, the executive board, and every unit owner.

(i) The association may take action for failure of a unit owner to pay any assessment or other charges pursuant to this section. The delinquent unit owner shall be obligated to pay all expenses of the executive board, including reasonable attorney's fees, incurred in the collection of the delinquent assessment or other charges by legal proceedings or otherwise, such attorney's fees and other charges also being a lien on the unit. The delinquent unit owner shall also be obligated to pay any amounts paid by the executive board for taxes or on account of superior liens or otherwise to protect its lien, which expenses and amounts, together with accrued interest, shall be deemed to constitute part of the delinquent assessment and shall be collectible as such.

34-36.1-3.21. Foreclosure of condominium lien. -- (a) (1) If a condominium unit owner shall default in the payment of any assessment, fine, or any other charge which is a lien on the unit in favor of the association or its assigns, then it shall be lawful for the association or its assigns, through its executive board, to sell the unit of any defaulting unit owner and the benefit and equity of redemption of the defaulting unit owner and his or her heirs, executors, administrators, and assigns therein, at public auction upon the premises or at such other place, if any, as may be designated for that purpose by the association or its assigns.

(2) The association must first mail written notice of the time and place of sale to the defaulting unit owner, at his or her last known address, by certified mail, return receipt requested, at least twenty (20) days prior to publishing said notice; second, the association must publish the same at least once each week for three (3) two (2) successive weeks in a public newspaper. published daily in the city in which the condominium is situated. If no public newspaper is published daily in the city where the condominium is situated, or if the condominium is not situated in a city, then: The time of sale shall be at least fifteen (15) days after the publication of the first notice in a public newspaper. Publication shall be as follows:

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

(ii) If the condominium is situated in the town of North Providence, in a public newspaper published daily in the city of Providence;

(iii) If the condominium is situated in any of the towns of Cumberland, Lincoln, Smithfield or North Smithfield, in a public newspaper published daily in either the city of Pawtucket, Woonsocket, or Providence;

(iv) If the condominium is situated in the county of Providence elsewhere than in the above last named cities and towns, in a public newspaper published daily in the city of Providence;

(v) If the condominium is situated in the county of Newport, in a public newspaper published daily in the city of Newport; but if there be no such newspaper so published, then in some public newspaper published anywhere in the county of Newport;

(vi) If the condominium is situated in any of the counties of Bristol, Kent, or Washington, in a public newspaper published daily in the city or town in which the condominium is situated; but if no public newspaper is so published, then in a public newspaper published in the city or town in which the condominium is situated,- or in some public newspaper published daily in the county in which the condominium is situated or in a public newspaper published daily in the city of Providence.

(3) The sale may be adjourned from time to time, provided that publishing of the notice shall be continued, together with a notice of the adjournment or adjournments, at least once each week in the same newspaper; and third, the association must mail written notice of the same to any person or entity having an interest of record in the unit, records recorded not later than thirty (30) days prior to the date originally scheduled for the sale, including without limitation, the holder of any mortgage or deed of trust with respect to the unit, to the address of the person or entity may have provided for that purpose in the land evidence records or at any other address the person or entity may have provided the association in writing, such notice to be given by regular or certified mail, return receipt requested, at least twenty (20) ten (10) days prior to the date originally scheduled for such sale; and in his or her or their own name or names, or as the attorney or attorneys of the defaulting unit owner (for that purpose by these presents duly authorized and appointed with full power of substitution and revocation) to make, execute, and deliver to the purchaser or purchasers at the sale a good and sufficient deed or deeds of the defaulted condominium unit, in fee simple, and to receive the proceeds of the sale or sales, and from the proceeds to retain all sums secured by the lien in favor of the association as of the date of such sale together with all expenses incident to such sale or sales, or for making deeds hereunder, and for fees of counsel and attorneys, and all costs or expenses incurred in the exercise of such powers, and all taxes, assessments, and premiums for insurance, if any, either theretofore paid by the association, or its assigns, or then remaining unpaid upon the defaulted condominium unit, rendering and paying the surplus of the proceeds of sale, if any there be, over and above the amounts to be retained, together with a true and particular account of such sale or sales, expenses, and charges, to the defaulting unit owner, or his or her heirs, executors, administrators or assigns. The sale or sales shall forever be a perpetual bar against the defaulting unit owner and his or her heirs, executors, administrators and assigns, and all persons claiming the defaulted condominium unit, so sold, by, through or under him, her, them or any of them.

(b) Any foreclosure sale held by the association pursuant to subsection (a) above, and the title conveyed to any purchaser or purchasers pursuant to such sale, shall be subject to any lien or encumbrance entitled to a priority over the lien of the association pursuant to section 34-36.1-3.16(b)(1) notwithstanding section 34-36.1-3.16(b)(2).

(c) Upon request the association shall provide to any person or entity having an interest of record in the unit: (1) an itemized statement of the amounts owed the association by the defaulting unit owner, separating common expense assessments referred to in section 34-36.1-3.16(b)(2) from interest, attorney's fees, fines and other charges secured by the lien of the association; and (2) a copy of the most recent periodic budget adopted by the association pursuant to section 34-36.1-3.15(a).

SECTION 2. This act shall take effect upon passage.


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