H 7359Cities & Towns

Property - Public Auctions of Real Estate

Cities and towns must hold real estate auctions in person, not online, unless a court approves an exception.

Introduced

Population
Affected

Introduced Jan 28, 2026Committee House Judiciary

Plain-English Summary

This legislation mandates that when a city or town in Rhode Island holds a public auction to sell real estate, the auction must be conducted in person at a specific physical location and time. It explicitly prohibits conducting these auctions through electronic or remote means. However, the bill provides an exception: a remote auction may be allowed if the Rhode Island Superior Court grants an order after determining that holding an in-person auction is not feasible for that specific case.

For younger readers

When a town wants to sell land or a building it owns, it often uses an auction where people offer money to buy it. This new rule says that these auctions must happen with people actually standing there in person. The town is not allowed to hold the auction over the computer or internet. The only way they can use a computer for the auction is if a judge decides that they cannot meet in person for a good reason and gives them special permission.

Who & Where It Applies

Impacted groups

Municipal GovernmentsReal Estate InvestorsAuctioneersProperty BuyersRhode Island Superior Court

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Promotes community access by ensuring that local residents have a fair chance to bid on local property, rather than losing out to remote, faceless corporate investors or algorithms.
Increases transparency and public scrutiny of government asset sales, as in-person events are harder to manipulate or obscure than digital transactions.
May help slow gentrification by placing a physical barrier on out-of-state speculation, keeping property ownership more localized and accountable to the community.
Creates accessibility barriers for individuals with disabilities, lack of transportation, or rigid work schedules who could participate more easily in an online format.
Could result in lower winning bids due to decreased competition, ultimately reducing the revenue available for public services and social programs.
Adds bureaucratic hurdles and legal costs for municipalities, diverting funds and time that could be better spent on direct community aid.

For Conservatives

Ensures strict adherence to traditional methods of governance and sale, preventing technocratic shifts that may obscure the process from the public eye.
Increases accountability by forcing government officials to conduct business in the open, reducing the likelihood of backroom deals or digital fraud.
Protects local interests by prioritizing buyers who are physically present in the community over distant, perhaps foreign, investors.
Interferes with the free market by artificially limiting the pool of potential buyers, which prevents the government from getting the best possible price for taxpayers.
Increases government inefficiency and red tape by requiring a Superior Court order just to utilize modern technology for a sale.
Violates the principle of local control by forcing a state-level mandate on how cities and towns must manage their own property disposal.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 9 additions

SECTION 1. Purpose The purpose of this act is to bring greater public scrutiny to the public auction sales of real estate in Rhode Island.

SECTION 2. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by adding thereto the following chapter: 34-51-1. Public auctions of real estate.

(a) Except as provided in subsection (b) of this section, public auctions by any city or town of real estate or an interest therein shall only be done in person at the time and place specified in the legal advertisement, and in accordance with Rhode Island statutes that govern said sales, to include, but not be limited to, the provisions of chapter 9 of title 44.

(b) No public auction of real estate or an interest therein shall be done by electronic or remote procedures unless authorized by court order of the Rhode Island superior court, after hearing thereon and a finding that an in-person auction is not feasible under the circumstances of the specific case.

SECTION 3. This act shall take effect upon passage.