Chapter 479
2008 -- H 7512
SUBSTITUTE A AS AMENDED
Enacted 07/05/08
A N A C T
RELATING
TO PROPERTY -- CONDOMINIUM LAW
Introduced
By: Representatives Serpa, Silva, Vaudreuil, Church, and Mattiello
Date
Introduced: February 26, 2008
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) of this section 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 two thousand five hundred
dollars ($2500)($2,500), incurred
in the collection of any delinquent assessment or other charges
by legal proceedings or otherwise and all
costs of foreclosure held pursuant to section 34-36.1-
3.21, including, but not limited to,
publication, advertising and auctioneer costs, said foreclosure
costs not to exceed five thousand dollars
($5,000) (for a total aggregate of attorney's fees and
costs of seven thousand five hundred dollars
($7,500)).
(3) The
priority amount under subdivision (b)(2) above shall not include any amounts
attributable to special assessments, late
charges, fines, penalties, and interest assessed by the
association.
(4) When any
portion of the unit owner's share of the common expenses has been
delinquent for at least sixty (60) days the
association shall first send a notice stating the amount of
the delinquency to the unit owner by certified
mail, return receipt requested, and first class mail.
The association shall also send a notice by
certified mail, return receipt requested, and first class
mail, stating the amount of the delinquency to
the holder of the first mortgage or deed of trust as
it appears in the land evidence records at the
address appearing in the mortgage or deed of trust or
such other address as the first mortgagee may
provide in writing to the association.
(5) The failure
of the association to send the first mortgagee the notice of sixty (60) days
delinquency of common expense assessments, as
described in subsection (b)(4) above, shall not
affect the priority of the lien for up to six
(6) months common expense assessments, but the
priority amount shall not include any costs or
attorney's fees.
(3)(6)
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, and the holder of the first mortgage or
deed of trust of record at the address for service
required by subdivision 34-36.1-3.16(b)(4), both
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 two (2)
successive weeks in a public newspaper. 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; 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, 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 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.
(4) Within
seven (7) days after the foreclosure sale, the association shall send an
additional written notice to the holder of the
first mortgage or deed of trust of record as appears in
the land evidence records, as provided in
subdivision 34-36.1-3.16(b)(4) by certified mail, return
receipt requested, and first class mail,
identifying the name of the highest bidder and the amount
of the bid.
(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) Any
foreclosure sale held by the association pursuant to subsection (a) above,
shall be
subject to a thirty (30) day right of redemption
running in favor of the holder of the first mortgage
or deed of trust of record. The right of
redemption shall be exercised by tendering payment to the
association in full of all assessments due on
the unit together with all attorney's fees and costs
incurred by the association in connection with
the collection and foreclosure process within thirty
(30) days of the date of the post-foreclosure
sale notice sent by the association pursuant to
subdivision (a)(4) above. Otherwise, the right of
redemption shall terminate thirty (30) days from
the date of the post-foreclosure sale notice
sent by the association pursuant to subdivision (a)(4)
above.
(c)(d)
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.
=======
LC01724/SUB A/2
=======