New law to impact landlords, owners of restricted property

New law to impact landlords, owners of restricted property

If you are a landlord, or if you have a client who owns restricted property, you should to be aware of a new law under RSA 540:1-b.



If you are an owner of restricted property who resides within the state, you must file a statement with the town or city clerk of the municipality in which the property is located, providing the name, address and telephone number of a person within the state who is authorized to accept service of process for any legal proceeding brought against the owner relating to the property. The owner of the premise can be the individual authorized to accept service.


Restricted property is defined as all real property rented for residential purposes excluding owners of single-family houses if the owner of such a house does not own more than three single-family houses at any one time, rental units in an owner-occupied building containing a total of four dwelling units or fewer, or single-family houses acquired by banks or other mortgagees through foreclosure.


If the landlord is not a New Hampshire resident, he or she must file a statement with the municipality providing the name of someone who does reside in the state and who is authorized to accept service of process brought against the owner.


NHAR suggests: that you contact your municipality to confirm to whom the letter should be sent or delivered; and that any statement sent through the mail is certified to ensure a proof that notification was given.


Municipalities may begin enforcing fines of up to $1,000 for failure to comply starting Feb. 1.

TITLE LV
PROCEEDINGS IN SPECIAL CASES

CHAPTER 540
ACTIONS AGAINST TENANTS

Section 540:1-b

[RSA 540:1-b effective January 1, 2011.]    540:1-b Landlord's Agent Required. – 
    I. An owner of restricted property, as defined in RSA 540:1-a, II, who resides within the state of New Hampshire shall, within 30 days of becoming the owner or within 30 days of the effective date of this section, whichever occurs later, file a statement with the town or city clerk of the municipality in which the property is located that provides the name, address, and telephone number of a person within the state who is authorized to accept service of process for any legal proceeding brought against the owner relating to the restricted property. Such person authorized to accept service may be the owner of the premises.
    II. An owner of restricted property who resides outside the state of New Hampshire shall, within 30 days of becoming the owner or within 30 days of the effective date of this section, whichever occurs later, file a statement with the town or city clerk of the municipality in which the property is located that provides the name, address, and telephone number of a person within the state who is authorized to accept service of process for any legal proceeding brought against the owner relating to the restricted property.
    III. In any legal proceeding in which the property owner resides out of state and said owner fails to: (a) comply with paragraph II, and (b) appear in said proceeding, service of process pursuant to RSA 510:4 shall create a rebuttable presumption that such service was lawful and adequate. As used in this section the term "legal proceeding'' includes, but is not limited to, any action at law or in equity or for the enforcement of any provision of RSA 48-A:14, or any housing code adopted by a municipality pursuant to RSA 48-A, or for the enforcement of any municipal health code, building code, or fire or life safety code. A municipality may establish a reasonable filing fee to cover the cost to the town or city clerk of maintaining a record of the filings required by this section.
    IV. Any owner of restricted property who violates paragraph I or II of this section shall be subject to a $1,000 civil penalty.Source. 2010, 203:2, eff. Jan. 1, 2011.