Rhode Island General Laws 34-27-8. Requirement of affidavit from certain tax-exempt entities
(a) Definitions. The following definitions apply in the interpretation of the provisions of this section unless the context requires another meaning:
(1) “Mortgage loan” means a loan to a natural person made primarily for personal, family, or household purposes secured wholly or partially by a mortgage on residential property.
(2) “Residential property” means real property on which there is a dwelling house with accommodations for no more than four (4) dwelling units and occupied, or to be occupied, in whole or in part, by the obligor of the mortgage debt; provided, however, that residential property shall be limited to the principal residence of a person; provided, further, that residential property shall not include an investment property or residence other than a primary residence; and provided, further, that residential property shall not include residential property taken in whole or in part as collateral for a commercial loan.
Terms Used In Rhode Island General Laws 34-27-8
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
- real estate: may be construed to include lands, tenements, and hereditaments and rights thereto and interests therein. See Rhode Island General Laws 43-3-10
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(b) In all circumstances in which an offer to purchase either a mortgage loan or residential property is made by an entity with a tax-exempt filing status under section 501(c)(3) of the Internal Revenue Code, or an entity controlled by an entity with such tax-exempt filing status, no mortgagee shall require, as a condition of sale or transfer to any such entity, any affidavit, statement, agreement, or addendum limiting ownership or occupancy of the residential property in question and, if obtained, such affidavit, statement, agreement, or addendum shall not provide a basis to avoid a sale or transfer, nor shall it be enforceable against such acquiring entity or any real estate broker, mortgagor, or settlement agent named in such affidavit, statement, or addendum.
History of Section.
P.L. 2016, ch. 345, § 1; P.L. 2016, ch. 359, § 1.