SB 337 – AS INTRODUCED
2006 SESSION
08/09
SENATE BILL 337
AN ACT relative to the sale and repurchase of property acquired by tax deed.
SPONSORS: Sen. Gallus, Dist 1; Sen. Hassan, Dist 23; Sen. Odell, Dist 8; Rep. Morneau, Coos 4
COMMITTEE: Public and Municipal Affairs
This bill allows municipalities to inspect property acquired by tax deed prior to offering the property for sale. This bill also makes former owners’ title upon repurchase subject to requirements by the municipality to bring the property into compliance with state and municipal codes.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2539
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the sale and repurchase of property acquired by tax deed.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Notice to Former Owner and Opportunity for Repurchase. Amend RSA 80:89 to read as follows:
80:89 Notice to Former Owner and Opportunity for Repurchase.
I. [Between 120 and] At least 90 days prior to the offering for sale or conveyance by a municipality of property which is acquired by tax deed on or after the effective date of this section, the municipal governing body or its designee shall send notice by certified mail, address service requested, return receipt requested, to the last known post office address of the owner of the property at the time of the tax deed, if known, or to the person to whom notice of the impending tax deed was given under RSA 80:77. The notice shall set forth the terms of the offering and the right of the former owner or owners to repurchase the property, as set forth in paragraph II. Copies of any such notice shall also be sent by certified mail, return receipt requested, to any mortgagee to whom notice of the impending tax deed was sent under RSA 80:77-a. For any notice sent pursuant to this paragraph, $10 may be added to the municipality’s “costs” as defined in RSA 80:90. A municipality which has acquired a property by tax deed may inspect the property it has taken ownership of and any buildings on such property after giving 24 hours’ notice of such inspection to the occupant of the property.
II. Within 30 days after the notice required by paragraph I, or if no such notice is received, at any time within [3 years] one year after the date of recording the tax deed, any former owner of the property may give notice by certified mail, return receipt requested, of intent to repurchase the property from the municipality, and stating that such owner is ready, willing, and able to pay all back taxes, interest, costs and penalty, as defined in RSA 80:90. If all such back taxes, interest, costs and penalty have not been actually tendered within 15 days of such notice of intent to repurchase, the municipality may proceed with its offering and dispose of the property without any interest by the former owner.
III. The deed from the municipality upon such repurchase shall convey the municipality’s interest in the property, or such portion as has not been previously disposed of by the municipality, to all record former owners in the same proportional undivided interests as the former owners of record.
IV. The former owners’ title upon repurchase shall be subject to any liens of record against the property as of the time of the tax deed to the municipality, and subject to any leases, easements, or other encumbrances as may have been granted or placed on the property by the municipality, including any requirements by the municipality to bring the property into compliance with state or municipal codes within a fixed period of time. In the case of multiple former owners, any owner paying more than a proportional share of the purchase price to the municipality shall have a lien against the other owners for the amount of the excess paid, including any requirements by the municipality to bring the property into compliance with state or municipal codes within a fixed period of time.
V. A notice of intent to repurchase under this section may also be filed by the holder of any recorded mortgage interest in the property which was unredeemed as of the date of the tax deed. Upon payment the property shall be deeded as provided in paragraph III, but the mortgagee shall be entitled to add the amount paid to the municipality to the amount due under the mortgage.
VI. Conveyances to a former owner under this section shall not be subject to the real estate transfer tax under RSA 78-B.
VII. For purposes of this section, the date of sale or conveyance of the property shall mean the date the municipality enters into a binding contract to convey the property to a third party buyer, whether or not such contract is subject to any contingencies.
VIII. The duty of the municipality to notify former owners and to distribute proceeds pursuant to RSA 80:88, and the former owners’ right of repurchase under RSA 80:89, shall terminate [3 years] one year after the date of recording of the deed.
2 Effective Date. This act shall take effect 60 days after its passage.