Chapter 121
2016 -- H 7904
Enacted 06/22/2016

A N   A C T
RELATING TO TAXATION -- TAX SALES

Introduced By: Representatives Messier, Barros, Johnston, and Coughlin
Date Introduced: March 10, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. Section 44-9-12 of the General Laws in Chapter 44-9 entitled "Tax Sales" is
hereby amended to read as follows:
     44-9-12. Collector's deed -- Rights conveyed to purchaser -- Recording. -- (a) The
collector shall execute and deliver to the purchaser a deed of the land stating the cause of sale; the
price for which the land was sold; the places where the notices were posted; the name of the
newspaper in which the advertisement of the sale was published; the names and addresses of all
parties who were sent notice in accordance with the provisions of § 44-9-10 and 44-9-11; the
residence of the grantee; and if notice of the sale was given to the Rhode Island Housing and
Mortgage Finance Corporation and/or to the department of elderly affairs under the provisions of
§ 44-9-10. The deed shall convey the land to the purchaser, subject to the right of redemption.
The conveyed title shall, until redemption or until the right of redemption is foreclosed, be held as
security for the repayment of the purchase price with all intervening costs, terms imposed for
redemption, and charges, with interest,; and the premises conveyed, both before and after either
redemption or foreclosure, shall also be subject to, and have the benefit of, all easements and
restrictions lawfully existing in, upon, or over the land or appurtenant to the land. The deed is not
valid unless recorded within sixty (60) days after the sale. If the deed is recorded, it is prima facie
evidence of all facts essential to the validity of the title conveyed by the deed. It shall be the duty
of the collector to record the deed within sixty (60) days of the sale and to forward said deed
promptly to the tax sale purchaser. The applicable recording fee shall be paid by the redeeming
party purchaser. The purchaser shall be reimbursed for said fee upon redemption by the
redeeming party, if any. Except as provided, no sale shall give to the purchaser any right to either
the possession, or the rents, or profits of the land until the expiration of one year after the date of
the sale, nor shall any sale obviate or transfer any responsibility of an owner of property to
comply with any statute of this state or ordinance of any municipality governing the use,
occupancy, or maintenance or conveyance of property until the right of redemption is foreclosed.
      (b) The rents to which the purchaser shall be entitled after the expiration of one year and
prior to redemption shall be those net rents actually collected by the former fee holder or a
mortgagee under an assignment of rents. Rents shall not include mere rental value of the land, nor
shall the purchaser be entitled to any rent for owner-occupied, single-unit residential property.
For purposes of redemption, net rents shall be computed by deducting from gross rents actually
collected any sums expended directly or on behalf of the tenant from whom the rent was
collected. Such expenditure shall include utilities furnished, repairs made to the tenanted unit, and
services provided for the benefit of the tenant. However, mortgagee payments, taxes, and sums
expended for general repair and renovation (i.e. capital improvements) shall not be deductible
expenses in the computation of the rent.
      (c) This tax title purchaser shall not be liable for any enforcement or penalties arising
from violations of environmental or minimum-housing standards prior to the expiration of one
year from the date of the tax sale, except for violations that are the result of intentional acts by the
tax sale purchaser or his or her agents.
      (d) Upon the expiration of one year after the date of the sale, the tax title holder shall be
jointly and severally liable with the owner for all responsibility and liability for the property and
shall be responsible to comply with any statute of this state or ordinance of any municipality
governing the use, occupancy, or maintenance or conveyance of the property even prior to the
right of redemption being foreclosed. Nothing in this section shall be construed to confer any
liability upon a city or town that receives tax title as a result of any bids being made for the land
offered for sale at an amount equal to the tax and charges.
      (e) In the event that the tax lien is acquired by the Rhode Island Hhousing and
Mmortgage Ffinance Ccorporation, and said corporation has paid the taxes due, title shall remain
with the owner of the property, subject to the right of the corporation to take the property in its
own name, pursuant to applicable statutes and any regulations duly adopted by the corporation.
Upon such notice by the corporation, the collector shall execute and deliver a deed to the
corporation as herein provided.
     SECTION 2. This act shall take effect upon passage.
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LC005355
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