H. B. 2485


(By Mr. Speaker, Mr. Kiss)
[Introduced March 11, 1997; referred to the
Committee on the Judiciary.]




A BILL to amend and reenact sections twenty-three and twenty-five, article three, chapter eleven-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to title searches on real estate purchased at sheriff's sale for delinquent taxes; no charge or interest for title examination if property redeemed within seven months; no payment to purchaser.

Be it enacted by the Legislature of West Virginia:
That sections twenty-three and twenty-five, article three, chapter eleven-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:
ARTICLE 3. COLLECTION AND ENFORCEMENT OF PROPERTY TAXES.
§11A-3-23. Redemption from purchase; receipt; list of redemptions;
lien
; lien of person redeeming interest of another; record.
(a) After the sale of any tax lien on any real estate pursuant to section five of this article, the owner of, or any other person who was entitled to pay the taxes on, any real estate for which a tax lien thereon was purchased by an individual may redeem at any time before a tax deed is issued therefor. In order to redeem, he must pay to the clerk of the county commission the following amounts: (1) An amount equal to the taxes, interest and charges due on the date of the sale, with interest thereon at the rate of one percent per month from the date of sale; (2) all other taxes thereon, which have since been paid by the purchaser, his or her heirs or assigns, with interest at the rate of one percent per month from the date of payment; (3) such the additional expenses as may have been incurred in preparing the list of those to be served with notice to redeem and any title examination incident thereto, with interest at the rate of one percent per month from the date of payment, but the amount he or she shall be required to pay, excluding said interest, for such the expenses incurred for the preparation of the list of those to be served with notice to redeem required by section nineteen of this article and any title examination incident thereto, shall may not exceed two hundred dollars; and (4) all additional statutory costs paid by the purchaser. Where the clerk has not received from the purchaser satisfactory proof of the expenses incurred in preparing the notice to redeem, and any examination of title incident thereto, in the form of receipts or other evidence thereof, the person redeeming shall pay the clerk the sum of two hundred dollars plus interest thereon at the rate of one percent per month from the date of the sale for disposition by the sheriff pursuant to the provisions of sections ten, twenty-four, twenty-five and thirty-two of this article. The person redeeming shall be given a receipt for the payment. Notwithstanding any provision to the contrary in this subsection, effective the first day of July, one thousand nine hundred ninety-seven, no charge or interest may be assessed for a title examination of real estate sold pursuant to this article if that real estate is redeemed within seven months of the sale.
(b) Any person who, by reason of the fact that no provision is made for partial redemption of the tax lien on real estate purchased by an individual, is compelled in order to protect himself or herself to redeem the tax lien on all of such the real estate when it belongs, in whole or in part, to some other person, shall have a lien on the interest of such the other person for the amount paid to redeem such the interest. He or she shall lose his or her right to the lien, however, unless within thirty days after payment he or she shall file with the clerk of the county commission his or her claim in writing against the owner of such the interest, together with the receipt provided for in this section. The clerk shall docket the claim on the judgment lien docket in his or her office and properly index the same. Such The lien may be enforced as other judgment liens are enforced.
§11A-3-25. Distribution of surplus to purchaser.
(a) Where the land has been redeemed in the manner set forth in section twenty-three of this article, and the clerk has delivered the redemption money to the sheriff pursuant to section twenty-four of this article, the sheriff shall, upon delivery of the sum necessary to redeem, promptly notify the purchaser, his or her heirs or assigns, by mail, of the fact of the redemption and pay to the purchaser, his or her heirs or assigns the following amounts: (1) From the sale of tax lien surplus fund provided by section ten of this article: (A) The surplus of money paid in excess of the amount of the taxes, interest and charges due and paid to the sheriff at the sale; and (B) the amount of taxes, interest and charges due on the date of the sale, plus the interest at the rate of one percent per month from the date of sale to the date of redemption; (2) all other taxes thereon, which have since been paid by the purchaser, his or her heirs or assigns, with interest at the rate of one percent per month from the date of payment; (3) such the additional expenses as may have been incurred in preparing the list of those to be served with notice to redeem and any title examination incident thereto, with interest at the rate of one percent per month from the date of payment, but the amount which shall be paid, excluding said the interest, for such the expenses incurred for the preparation of the list of those to be served with notice to redeem required by section nineteen of this article, and any title examination incident thereto, shall may not exceed two hundred dollars; and (4) all additional statutory costs paid by the purchaser. Notwithstanding any provision to the contrary in this subsection, effective the first day of July, one thousand nine hundred ninety-seven, no payment may be made to the purchaser for expenses incurred conducting a title examination of real estate sold pursuant to this article if that real estate is redeemed within seven months of the sale;
(b) (1) The notice shall include:
(A) A copy of the redemption certificate issued by the county clerk;
(B) An itemized statement of the redemption money to which the purchaser is entitled pursuant to the provisions of this section; and
(C) Where, at the time of the redemption, the clerk has not received from the purchaser satisfactory proof of the expenses incurred in preparing the list of those to be served with notice to redeem and any title examination incident thereto, the clerk shall also include instructions to the purchaser as to how these expenses may be claimed.
(2) Subject to the limitations of this section, the purchaser is entitled to recover any expenses incurred in preparing the list of those to be served with notice to redeem and any title examination incident thereto from the date of the sale to the date of the redemption.
(c) Where, pursuant to section twenty-three of this article, the clerk has not received from the purchaser satisfactory proof of the expenses incurred in preparing the list of those to be served with notice to redeem, and any title examination incident thereto, in the form of receipts or other evidence thereof, and therefore received from the purchaser as required by said the section and delivered to the sheriff the sum of two hundred dollars plus interest thereon at the rate of one percent per month from the date of the sale to the date of redemption, and the sheriff has not received from the purchaser such satisfactory proof of such the expenses within thirty days from the date of notification, the sheriff shall refund such the amount to the person redeeming and the purchaser is barred from any claim thereto. Where, pursuant to said the section, the clerk has received from the purchaser and therefore delivered to the sheriff said the sum of two hundred dollars plus interest thereon at the rate of one percent per month from the date of the sale to the date of redemption, and the purchaser provides the sheriff within thirty days from the date of notification such satisfactory proof of such the expenses, and the amount of such the expenses is less than the amount paid by the person redeeming, the sheriff shall refund the difference to the person redeeming.


NOTE: The purpose of this bill is provide that if property is sold for delinquent taxes at a sheriff's sale and is redeemed within seven months, then no charge or interest may be assessed for a title search of that property.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.