2025 -- H 5826
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO PROPERTY -- CONDOMINIUM LAW
Introduced By: Representatives Speakman, Serpa, Solomon, Potter, and Morales
Date Introduced: February 28, 2025
Referred To: House Corporations
It is enacted by the General Assembly as follows:
SECTION 1. Sections 34-36.1-1.02 and 34-36.1-2.19 of the General Laws in Chapter 34-1
36.1 entitled "Condominium Law" are hereby amended to read as follows: 2
34-36.1-1.02. Applicability. 3
(a)(1) This chapter applies to all condominiums created within this state after July 1, 1982, 4
except that any condominium created within this state prior to July 1, 1982, may voluntarily accept 5
the provisions of this chapter in lieu of the provisions under which it was originally organized. 6
Acceptance shall be evidenced by an agreement in writing executed by and in behalf of the 7
condominium association and by all of the owners of all of the individual condominium units within 8
the condominium, in which agreement it is clearly stated that they all accept the provisions of this 9
chapter in lieu of those in the statute under which the condominium was organized and wish to be 10
governed in the future by the provisions of this chapter. The agreement shall be recorded in the 11
land evidence records of each and every town or city where all or any part of the land in the 12
condominium concerned may be located and shall become effective when first so recorded. The 13
acceptance shall only apply to the governance of the condominium concerned as to all matters 14
which are prospective or executory in nature; and nothing herein shall be deemed to abrogate, 15
amend, limit, effect, or impair the continued effectiveness, legality, or validity of all actions 16
lawfully taken by or in behalf of the condominium prior to the effective date of the acceptance, 17
including, but without limitation, the condominium declaration and all amendments thereto, the by-18
laws of the condominium and/or of its association, all deeds, mortgages, leases, and any further 19
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documents affecting the titles or rights of unit owners, or of the condominium or the prior lawful 1
acts or deeds of any kind, of the condominium association, its officers, directors, or members. 2
(2) Sections 34-36.1-1.05 (separate titles and taxation), 34-36.1-1.06 (applicability of local 3
ordinances, regulations, and building codes), 34-36.1-1.07 (eminent domain), 34-36.1-2.03 4
(construction and validity of declaration and bylaws), 34-36.1-2.04 (description of units), 34-36.1-5
2.19(b) (mortgagee approval), 34-36.1-3.02(a)(1) — (6) and (11) — (17) (powers of unit owners’ 6
association), 34-36.1-3.06(c) — (d) (bylaws), 34-36.1-3.11 (tort and contract liability), 34-36.1-7
3.16 (lien for assessments), 34-36.1-3.18 (association records), 34-36.1-4.09 (resale of units), and 8
34-36.1-4.17 (effect of violation on rights of action; attorney’s fees), § 34-36.1-3.20 (enforcement 9
of declaration, bylaws and rules), and 34-36.1-1.03 (definitions), to the extent necessary in 10
construing any of those sections, apply to all condominiums created in this state before July 1, 11
1982; but those sections apply only with respect to events and circumstances occurring after July 12
1, 1982, and do not invalidate existing provisions of the declaration, bylaws, plats, or plans of those 13
condominiums. 14
(3) A condominium created as an additional phase by amendment of a condominium 15
created prior to July 1, 1982, if the original declaration contemplated the amendment, shall be 16
deemed to be a condominium created prior to July 1, 1982; provided, however, the provisions of 17
subdivision (a)(2) shall apply as defined therein. 18
(4) Section 34-36.1-3.21 (foreclosure of condominium lien) applies, with respect to all 19
condominiums created in this state prior to June 19, 1991, only with respect to events and 20
circumstances occurring after June 18, 1991, does not invalidate existing provisions of the 21
declarations, bylaws, plats, or plans of those condominiums, and applies in all respects to all 22
condominiums created in this state after June 18, 1991. 23
(b) The provisions of the Condominium Ownership Act, chapter 36 of this title, do not 24
apply to condominiums created after July 1, 1982, and do not invalidate any amendment to the 25
declaration, bylaws, plats, and plans of any condominium created before July 1, 1982, if the 26
amendment would be permitted by this chapter. The amendment must be adopted in conformity 27
with the procedures and requirements specified by those instruments and by chapter 36 of this title. 28
If the amendment grants to any person any rights, powers, or privileges permitted by this chapter, 29
all correlative obligations, liabilities, and restrictions in this chapter also apply to that person. 30
(c) This chapter does not apply to condominiums or units located outside this state, but the 31
public offering statement provisions (§§ 34-36.1-4.02 — 34-36.1-4.07) apply to all contracts for 32
the disposition thereof signed in this state by any party unless exempt under § 34-36.1-4.01(b). 33
34-36.1-2.19. Rights of secured lenders. 34
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(a) The declaration may require that all or a specified number or percentage of the 1
mortgagees or beneficiaries of deeds of trust encumbering the units approve specified actions of 2
the unit owners or the association as a condition to the effectiveness of those actions, but no 3
requirement for approval may operate to: 4
(1) Deny or delegate control over the general administrative affairs of the association by 5
the unit owners or the executive board, or 6
(2) Prevent the association or the executive board from commencing, intervening in, or 7
settling any litigation or proceedings, or receiving and distributing any insurance proceeds except 8
pursuant to § 34-36.1-3.13. 9
(b) When approval of any actions of the unit owners or the association is required of all or 10
a specified number or percentage of the unit mortgagees by this chapter or the declaration or bylaws 11
as a condition of the effectiveness of those actions, written requests for approval shall be mailed by 12
United States postal service, regular mail and certified mail, return receipt requested, to unit 13
mortgagees at the mailing addresses referenced on mortgage documents recorded in the land 14
evidence records. If a unit mortgagee fails to provide a written denial of approval to the party 15
requesting approval within sixty (60) days after the mailing of the request, the unit mortgagee shall 16
be deemed to have approved the request. All written requests for approval to unit mortgagees shall 17
reference this section. 18
SECTION 2. This act shall take effect upon passage. 19
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PROPERTY -- CONDOMINIUM LAW
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This act would create a process for condominium associations to give notice to and obtain 1
approval from unit mortgage holders for certain association actions. 2
This act would take effect upon passage. 3
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