Skip to main content
S 2391Cities & Towns

Property - Public Auctions of Real Estate

Cities and towns must hold real estate auctions in person, not online, unless a court specifically allows otherwise.

Introduced25 Yea9 Nay4 Not voting
Population
Affected
15
Email Legislator
Introduced Jan 30, 2026Committee Senate Judiciary

Plain-English Summary

This legislation mandates that when Rhode Island cities or towns conduct public auctions for real estate, such as tax sales, the auction must be held in person. It explicitly prohibits the use of electronic or remote procedures for these sales. The only exception allows for a remote auction if the Rhode Island Superior Court grants a specific order after a hearing, determining that an in-person auction is not feasible for that particular case. The stated purpose is to increase public scrutiny of these transactions.

For younger readers

Sometimes, a town needs to sell a house or piece of land, usually because the owner didn't pay their taxes. This sale is called an auction, where people offer money to buy it. This new law says these auctions must happen with people standing together in the same room, not on a computer or over the internet. The town can only do the sale online if a judge decides it is absolutely necessary because they can't meet in person. This helps make sure everyone can see exactly what is happening during the sale.

Who & Where It Applies

Impacted groups
Municipal GovernmentsReal Estate InvestorsDelinquent TaxpayersAuctioneersJudiciary
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Increases transparency and public oversight of government property sales, ensuring that community assets are not sold off in secret or obscure online forums.
  • May level the playing field for local buyers and community members against large, out-of-state investment firms and algorithms that often dominate online auctions, helping to keep property ownership local.
  • Provides a procedural step that emphasizes community presence, potentially slowing down the rapid liquidation of properties and giving distressed homeowners slightly more visibility into the process.
  • Restricting auctions to in-person events creates a barrier for working-class individuals who cannot take time off work to attend, potentially favoring those with flexible schedules or professional investors.
  • Could result in fewer bidders and lower sale prices for public assets, reducing the revenue available to cities and towns for funding essential social services and public education.
  • The requirement for a court order to hold remote auctions adds legal costs and administrative burdens to the judicial system, diverting resources from other justice-related priorities.
For Conservatives
  • Promotes transparency and accountability in local government by requiring public sales to occur in the open, preventing potential backroom deals or obscure digital transactions.
  • Supports local stakeholders and traditional business practices by prioritizing physical presence over remote, impersonal technology often exploited by outside interests.
  • Reinforces the rule of law by strictly defining how municipal property transfers must occur, ensuring established statutes are followed without technological workarounds.
  • Imposes unnecessary government regulations on municipalities, restricting their freedom to choose the most efficient and cost-effective method for selling property.
  • Limits the free market by artificially shrinking the pool of potential buyers to those physically present, potentially preventing taxpayers from getting the best return on public assets.
  • Creates bureaucratic red tape by requiring a Superior Court order just to utilize modern technology, wasting judicial resources and taxpayer money on administrative hurdles.

Votes

Loading votes...

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.