§ 64A — Sale or retention of property following judgment foreclosing right of redemption; judgment holder's election; claims for excess equity; determination of disputes

Massachusetts § 64A

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title IX: TAXATION
• Ch. 60: COLLECTION OF LOCAL TAXES

Text

[ Text of section added by 2024, 140, Sec. 93 effective November 1, 2024. See 2024, 140, Sec. 250.]Section 64A. (a) This section shall apply to the sale or retention of property by a municipality or a purchaser of tax receivables following a final judgment of the land court foreclosing the right of redemption under this chapter. Not more than 14 days after the of entry of judgment foreclosing the right of redemption becomes final, with either no appeal having been taken within the applicable time limit or any appeal taken having resulted in the entry of judgment pursuant to the rescript of the supreme judicial court or appeals court, the judgment holder shall elect to: (i) retain possession of the property; or (ii) sell the property. The judgment holder shall notify the former owners of the property and all others known to hold the right of redemption in the property at the time judgment is entered, by certified mail, to their last known address or place of business, of: (i) the judgment holder's election; and (ii) the rights and procedures for claiming excess equity set forth in this section.(b)(1) A municipality or a purchaser of tax receivables that has elected to retain the property under subsection (a), shall use reasonable best efforts to have the property appraised not later than 120 days after the final judgment of the land court; provided, however, that the judgment holder and any parties entitled to claim excess equity under this section may agree to a later date for the appraisal. The appraisal shall be: (i) for the highest and best use of the property as of the date of the final judgment of foreclosure; and (ii) conducted by an independent appraiser licensed in the commonwealth in accordance with the usual and customary professional appraisal practices.(2) The appraised value shall be used to establish the amount of excess equity, which. shall be paid to any parties who make a valid claim for excess equity as set forth in this section.(c)(1) A municipality or a purchaser of tax receivables that has elected to sell the property under subsection (a) shall, not later than 180 days after the final judgment of the land court, list the property for sale with a real estate agent or broker licensed in the commonwealth; provided, however, that the judgment holder and any parties entitled to claim excess equity under this section may agree to a later date for sale; provided further, that the real estate agent or broker shall not hold elected or appointed office or be employed by the municipality in which the property is located.(2) The judgment holder for a property listed for sale pursuant to paragraph (1) that does not sell within 12 months of the date of listing shall: (i) auction the property with an auctioneer licensed in the commonwealth; provided, however, that the auctioneer does not hold elected or appointed office or is not employed by the municipality in which the property is located; (ii) accept bids that are not less than 2/3 of the appraised value of the property consistent with the appraisal requirements of subsection (b); and (iii) not accept bids by individuals that hold elected or appointed office or are employed by the municipality in which the property is located.(3) A property shall not be considered retained by a judgment holder that has elected under subsection (a) to sell the property and has complied with the requirements of paragraph (2) but has been without success in such sale. If a property has not been sold after the auction, the judgment holder shall notify any parties entitled to claim excess equity of their intention to continue the sale to another date and not to retain the property. Such notice shall be mailed, by certified mail, to any parties entitled to claim excess equity, or their successors in interest, to their last known address or place of business.(d)(1) Upon a sale of a property or an appraisal of property where the judgment holder has elected to retain possession, the judgment holder shall prepare a written itemized accounting setting forth the disposition of the proceeds arising from the sale or a report of the appraisal including, but not limited to, the sale price, legal fees, marketing fees, auctioneer fees, advertising costs, appraisal fees and any excess equity due to any parties entitled to claim excess equity, or their successors in interest. The written itemized accounting shall be mailed, by certified mail, to any parties entitled to claim excess equity, or their successors in interest, to their last known address or place of business, not more than 30 days after the sale of the property or receipt of the appraisal of the property if such property is retained.(2) Where the judgment holder knows the identity and mailing address of the former property owner and all others known to hold the right of redemption in the property, the judgment holder shall, in addition to the written itemized accounting, provide for the provision of a proportional share of the excess equity to which such individual is entitled.(3) A judgment holder that does not know the identity and mailing address of the former property owner and all others known to hold the right of redemption in the property shall, in addition to the written itemized accounting, provide a notice that the former owners of the property and all others known to hold the right of redemption in the property at the time judgment of foreclosure entered in the land court, or their successors in interest, may claim excess equity from the sale or retention of the property and that such claims shall be submitted in writing to the judgment holder not more than 18 months after the date of the notice. The excess equity claim shall be delivered to the judgment holder by personal service, receipt of which is acknowledged by the judgment holder, or by certified mail, return receipt requested; provided, however, that a municipality shall allow a claimant to submit a claim at the local collector's office. The excess equity claim shall contain the claimant's name, telephone number, mailing address, the property address or parcel number and a description of their interest in the property and shall include any other persons or entities known to the claimant to have an interest in the property at the time of the final judgment of foreclosure, including any other former owners, mortgagees, lienholders, heirs or other individuals or entities who held a right to redeem or their successors in interests.(e) Excess equity shall be held in escrow by the judgment holder in a segregated interest-bearing account, in which all excess equity funds from all foreclosures are deposited and separately accounted for on the books and records of the municipality. Excess equity that has not been claimed within 19 months of a sale or appraisal of a property shall be disposed of pursuant to chapter 200A.(f) The superior court shall have jurisdiction to hear any disputes that arise between or among the judgment holder and any former owners, mortgagees, lienholders, heirs or other individuals or entities who, at the time of the final judgment of the land court, held an interest in the property and right to redeem, or their successors in interest, and who are claiming excess equity including, but not limited to, disputes regarding the valuation of the property, the sale process, the amount of excess equity, its distribution or any other aspect of this section. Any party may seek a determination of the dispute by filing a written complaint in the superior court not more than 12 months after the date of the notice of written itemized accounting following sale or appraisal of the property under subsection (d). Such complaint shall name all parties adversely interested who are known to the plaintiff and process shall issue and service be made consistent with the Massachusetts Rules of Civil Procedure. All matters pertaining to the litigation shall be heard by the superior court department and the parties shall be granted the right to a trial before a jury, unless all parties waive that right and file a written agreement requesting a trial without a jury.