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60-2414. Redemption of real property. (a) Right of redemption by defendant owner. Except as stated in subsection (m) and as otherwise provided by law, the defendant owner may redeem any real property sold under execution, special execution or order of sale, at any time within 12 months from the day of sale, for the amount paid by the current holder of the certificate of purchase, including expenses incurred by the holder of the certificate of purchase in accordance with subsection (d), together with interest at the rate provided for in subsection (e)(1) of K.S.A. 16-204, and amendments thereto, costs and taxes to the date of redemption. The defendant owner in the meantime shall be entitled to the possession of the property. If the court finds after hearing, either before or after sale, upon not less than 21 days' notice to all parties, that the property has been abandoned, or is not occupied in good faith, the period of redemption for the defendant owner may be shortened or extinguished by the court. The right of redemption shall not apply to oil and gas leaseholds. Except for mortgages covering agricultural lands or for mortgages covering single or two-family dwellings owned by or held in trust for natural persons owning or holding such dwelling as their residence, the mortgagor may agree in the mortgage instrument to a shorter period of redemption than 12 months or may wholly waive the period of redemption.

(b) Redemption by lien creditor. Except as provided in subsection (m), for the first three months of the redemption period, if any, the right of the defendant owner or successors and assigns to redeem is exclusive. If no redemption is made by the defendant owner during the time in which the defendant owner has the exclusive right to redeem, any creditor referred to in subsection (c) may redeem the property during the balance of the redemption period remaining. If the defendant owner has waived the right of redemption, a creditor shall have a right to redeem the property for a period of three months from the date of the judicial sale. If the defendant owner has agreed to a period of redemption of three months or less, a creditor shall have a right to redeem for a period of three months from the date of expiration of the defendant owner's redemption period. If the court shortens or extinguishes the period of redemption because of abandonment or lack of good faith occupation as provided in subsection (a), the court shall specify in the order a time not to exceed three months during which a creditor may redeem. The first creditor redeeming must pay only the amount of the successful sale bid, the expenses incurred by the holder of the certificate in accordance with subsection (d), together with interest at the rate provided for in subsection (e)(1) of K.S.A. 16-204, and amendments thereto, costs and taxes to the date of redemption. After redemption by a creditor, no further redemption shall be allowed except by the defendant owner or such owner's successors and assigns. If a creditor redeems during the period of redemption for the defendant owner, the defendant owner shall have the balance of such period, but in no event less than 14 days from the filing of the affidavit required in subsection (f), to redeem from the creditor. When the defendant owner or such owner's successors and assigns redeem subsequent to redemption by a creditor, the defendant owner or such owner's successors and assigns shall pay an amount equal to the redemption amount paid by such creditor, plus the amount required by subsection (f), and expenses incurred by the creditor in accordance with subsection (d), together with interest at the rate provided for in subsection (e)(1) of K.S.A. 16-204, and amendments thereto, costs and taxes to the date of redemption.

(c) Creditors who may redeem. Any creditor whose claim is or becomes a lien prior to the expiration of the time allowed by law for the redemption by creditors may redeem. A mortgagee may redeem upon the terms prescribed by this section before or after the debt secured by the mortgage falls due.

(d) Terms of redemption; rights of parties. During the period allowed for redemption, the holder of the certificate of purchase or the creditor who has redeemed may pay the taxes on the lands sold, insurance premiums on the improvements thereon, other sums necessary to prevent waste, and interest or sums due, upon any prior lien or encumbrance on the real property. Upon the redemption of the property, the holder of the certificate or the creditor who has redeemed shall be entitled to repayment of all sums thus paid, together with interest at the rate provided for in subsection (e)(1) of K.S.A. 16-204, and amendments thereto. All expenses incurred by the holder of the certificate or the creditor who has redeemed shall be as shown by receipts or vouchers filed in the office of the clerk of the district court.

(e) Effect of failure of debtor to redeem; deficiency. If the defendant owner or such owner's successors or assigns fail to redeem as provided in this section, the holder of the certificate of purchase or the creditor who has redeemed prior to the expiration of the redemption period will hold the property absolutely. If it is held by a redeeming creditor, the lien and the claim out of which it arose will be held to be extinguished, unless the redeeming creditor is unwilling to hold the property and credit the defendant owner with the full amount of the redeeming creditor's lien and, at the time of redemption, files with the clerk of the district court a statement of the amount that the redeeming creditor is willing to credit on the claim. If the redeeming creditor files such a statement and the defendant owner or such owner's successors and assigns fail to redeem, the creditor's claim shall be extinguished by the amount in the statement. The sheriff, at the end of the redemption period, shall execute a deed to the current owner of the certificate of purchase or the creditor who has redeemed prior to the expiration of the redemption period.

(f) Mode of redemption. The party redeeming shall pay the money into the office of the clerk of the district court for the use of the persons entitled to it. The clerk shall give a receipt for the money, stating the purpose for which it is paid. The clerk shall also enter the transaction on the appearance docket of the case, showing the amount paid. A redeeming creditor, or agent of the creditor, shall also file an affidavit stating as nearly as practicable the amount still unpaid due on the claim of that creditor and any lesser amount the creditor is willing to credit on the claim in accordance with subsection (e). The creditor's claim, or such lesser amount as the creditor is willing to credit on the claim in accordance with subsection (e), shall be added to the redemption amount to be paid by the defendant owner or such owner's successors and assigns.

(g) Redemption of property sold in parcels, or undivided portions. Whenever the property has been sold in parcels, any distinct portion of that property may be redeemed by itself. If a creditor has redeemed, the amount of the creditor's claim or such lesser amount as the creditor is willing to credit on the claim as stated in the affidavit under subsection (f) shall be added to each parcel sold pro rata in proportion to the amount for which it was originally sold. When the interests of several tenants in common have been sold on execution the undivided portion of any or either of them may be redeemed separately.

(h) Transfer of right of redemption. The rights of the defendant owner in relation to redemption may be assigned or transferred, and the assignee or transferee shall have the same right of redemption as the defendant owner. The assigned or transferred right of redemption shall not be subject to levy or sale on execution.

(i) Holder of legal title. The holder of the legal title at the time of issuance of execution or order of sale shall have the same right of redemption upon the same terms and conditions as the defendant in execution and shall be entitled to the possession of the property the same as the defendant in execution.

(j) Injury or waste after sale. After the sheriff makes the deed to the purchaser or party entitled to a deed under sale as provided in this section, the purchaser or party may assert a claim for damages against any person committing or permitting any injury or waste upon the property purchased after the sale and before possession is delivered under the conveyance.

(k) Second sale not permitted. Real estate once sold upon order of sale, special execution or general execution shall not again be liable for sale for any balance due upon the judgment or decree under which it is sold, or any judgment or lien inferior thereto, including unadjudicated junior liens filed after the petition is filed in the district court to foreclose the senior lien against the real estate.

(l) Injunction or receiver to protect property. The holder of the certificate of purchase shall be entitled to prevent any waste or destruction of the premises purchased. For that purpose the court, on proper showing, may issue an injunction or, when required to protect the premises against waste, appoint a receiver who shall hold the premises until the purchaser is entitled to a deed. The receiver may rent, control and manage the premises but the income during that time, except the fees and expenses of the receiver and the amount that is necessary to keep up repairs, prevent waste and pay real estate taxes and insurance premiums, shall go to the person who otherwise would be entitled to possession during the period of redemption.

(m) Owners reduced redemption period. In the event a default occurs in the conditions of the mortgage or instrument of the most senior lien foreclosed before ⅓ of the original indebtedness secured by the mortgage or lien has been paid, the court shall order a redemption period of three months. If, after proper showing, the court finds that the total outstanding amount of all mortgages or liens is less than ⅓ of the market value of the property, the court shall order a redemption period of 12 months. If the court finds after a hearing with not less than 21 days' notice to all parties, that the defendant owner has involuntarily lost such owner's primary source of income after the date of the foreclosure sale and prior to expiration of a three-month period of redemption, the court may extend the three-month period of redemption an additional three months. If the court orders a redemption period of six months or less, the right of the defendant owner or successors and assigns to redeem is exclusive for the first two months of the redemption period. This subsection shall not apply in the event redemption rights have been shortened, waived or terminated pursuant to subsection (a).

History: L. 1963, ch. 303, 60-2414; L. 1970, ch. 221, § 1; L. 1972, ch. 225, § 1; L. 1977, ch. 207, § 1; L. 1983, ch. 200, § 2; L. 1992, ch. 320, § 1; L. 1994, ch. 230, § 1; L. 2010, ch. 135, § 183; L. 2013, ch. 123, § 3; July 1.

Source or prior law:

(a). L. 1893, ch. 109, § 2; L. 1909, ch. 182, § 476; L. 1923, ch. 163, § 1; R.S. 1923, 60-3439; L. 1929, ch. 212, § 1.

(b). L. 1893, ch. 109, § 3; L. 1909, ch. 182, § 477; R.S. 1923, 60-3440.

(c). L. 1893, ch. 109, § 4; L. 1909, ch. 182, § 478; R.S. 1923, 60-3441.

(d). L. 1893, ch. 109, § 6; L. 1909, ch. 182, § 480; R.S. 1923, 60-3443; L. 1925, ch. 199, § 1; L. 1929, ch. 213, § 1.

(e). L. 1893, ch. 109, §§ 7, 8; L. 1909, ch. 182, §§ 481, 482; R.S. 1923, 60-3444, 60-3445.

(f). L. 1893, ch. 109, § 9; L. 1909, ch. 182, § 483; R.S. 1923, 60-3446.

(g). L. 1893, ch. 109, § 10; L. 1909, ch. 182, § 484; R.S. 1923, 60-3447.

(h). L. 1893, ch. 109, §§ 11 through 13; L. 1909, ch. 182, §§ 485 through 487; R.S. 1923, 60-3448 through 60-3450.

(i). L. 1893, ch. 109, § 14; L. 1909, ch. 182, § 488; R.S. 1923, 60-3451.

(j). L. 1893, ch. 109, §§ 16, 17; L. 1909, ch. 182, §§ 490, 491; R.S. 1923, 60-3453, 60-3454.

(k). L. 1893, ch. 109, § 18; L. 1909, ch. 182, § 492; R.S. 1923, 60-3455.

(l). L. 1893, ch. 109, § 19; L. 1909, ch. 182, § 493; R.S. 1923, 60-3456.

(m). L. 1893, ch. 109, § 20; L. 1909, ch. 182, § 494; R.S 1923, 60-3457; L. 1947, ch. 320, § 1.

(n). L. 1893, ch. 109, § 22; L. 1909, ch. 182, § 496; R.S. 1923, 60-3459.

(o). L. 1893, ch. 109, § 23; L. 1909, ch. 182, § 497; R.S. 1923, 60-3460.

(p). L. 1893, ch. 109, § 24; L. 1909, ch. 182, § 498; R.S. 1923, 60-3461.

(q). L. 1901, ch. 259, §§ 1, 2; L. 1909, ch. 182, § 503; R.S. 1923, 60-3466.

Law Review and Bar Journal References:

"Highlights of the Kansas Code of Civil Procedure (1963)," Spencer A. Gard, 2 W.L.J. 199, 202 (1962).

Subsection (i) mentioned in "Some Comments on the New Code of Civil Procedure," Emmet A. Blaes, 12 K.L.R. 75, 81 (1963).

Paragraphs (g) and (p) mentioned in comment on 1963 Apartment Ownership Act, John M. Simpson, 13 K.L.R. 543, 546 (1965).

Paragraph (a) mentioned in 1963-65 survey of debtor-creditor law, Robert B. Morton, 14 K.L.R. 251, 257 (1965).

Distinguishing purchase-money resulting trust and equitable mortgage, William G. Zimmerman, 13 K.L.R. 585, 589 (1965).

Validity of power of sale without judicial foreclosure, Charles R. Wilson, 16 K.L.R. 611, 613 (1968).

Developments in debtor-creditor law between 1965 and 1969, Robert B. Morton, 18 K.L.R. 351, 364 (1970).

"Right of Redemption of Real Property in Kansas," Roger L. Hiatt, 10 W.L.J. 285 to 295 (1971).

Subsection (o) cited in survey of property law, Mark Corder and William J. Paprota, 15 W.L.J. 387, 395 (1976).

"Survey of Kansas Law: Real and Personal Property," Deanell R. Tacha, 27 K.L.R. 283 (1979).

"The Mortgagee's Interest in Rents: Policy and Proposals," Patrick A. Randolph, Jr., 29 K.L.R. 1, 6, 7, 9, 12, 28 (1980).

"Alternate Methods of Financing the Sale and Purchase of Single Family Residences: Representing the Buyer and the Seller," Peter M. DiGiovanni, 50 J.K.B.A. 179, 190 (1981).

"Survey of Kansas Law: Property," 29 K.L.R. 555, 562 (1981).

"Agricultural Law: FmHA Farm Foreclosures, An Analysis of Deferral Relief and the Appeals System," Karen Kubovec McIlvain, 23 W.L.J. 287, 293 (1984).

"Survey of Kansas Law: Real Property," Michael J. Davis, 32 K.L.R. 773 (1984).

"Kansas Mechanics' Lien Laws: Filing-Enforcing-Defending," Mert F. Buckley, 57 J.K.B.A. No. 5, 27, 31 (1988).

"Recent Developments in Kansas Oil and Gas Law (1983-1988)," Phillip E. DeLaTorre, 37 K.L.R. 907, 939 (1989).

"Creditor Beware: From Default Through Deficiency Judgment," Wanda M. Temm, 60 J.K.B.A. No. 8, 17, 20 (1991).

"The Kansas Foreclosure Process: Adapting the System to the Changing Real Estate Finance Market," Jason M. Zager, 53 K.L.R. 1281 (2005).

CASE ANNOTATIONS

Prior law cases, see G.S. 1949, 60-3439 to 60-3441, 60-3443, 60-3446, 60-3449, 60-3447 to 60-3451, 60-3453 to 60-3457, 60-3460, 60-3461, 60-3466 and the 1961 Supp. thereto.

1. Corporation cannot waive its rights to possession, rents and profits without expressly waiving rights of redemption. Broadhurst Foundation v. New Hope Baptist Society, 194 K. 40, 42, 43, 45, 397 P.2d 360.

2. Waiver of redemption by a corporate mortgagor does not destroy redemption rights of individual creditors or lienors. United States v. Leckinton & Sons, Inc., 237 F.Supp. 564, 565.

3. One of the most important purposes of redemption statutes is to provide mortgagor with rents and profits during redemption period. Broadhurst Foundation v. New Hope Baptist Society, 194 K. 40, 43, 397 P.2d 360.

4. Property of bankrupt corporation is subject to redemption; right of redemption of corporate mortgagor is not exempt property. Southwest State Bank v. Quinn, 198 K. 359, 360, 361, 362, 364, 424 P.2d 620.

5. Construed and applied in determining party entitled to rents and profits during period of redemption. Topeka Savings Association v. Beck, 199 K. 272, 428 P.2d 779.

6. Upon foreclosure of mortgage in federal court by small business administration, mortgagor not entitled to state statutory period of redemption. United States v. Montgomery, 268 F.Supp. 787, 790.

7. Deed adjudged to be equitable mortgage; right to redemption. Berger v. Bierschbach, 201 K. 740, 746, 443 P.2d 186.

8. Cited in discussing property owner's rights during redemption with respect to waste. First Federal Savings & Loan Ass'n v. Moulds, 202 K. 557, 561, 451 P.2d 215.

9. Right to possession, rents, and profits of property being foreclosed is in the owner. First Federal Savings & Loan Ass'n v. Moulds, 202 K. 557, 561, 451 P.2d 215.

10. Motion to set aside sale proceedings is within a reasonable time as required by 60-260(b) if filed during period of redemption set by court. Needham v. Young, 205 K. 603, 606, 470 P.2d 762.

11. Paragraph (d) applied; purchaser at sale on execution entitled to repayment of all sums paid by him for interest or sums due upon a prior lien or encumbrance when the property is redeemed. Needham v. Young, 205 K. 603, 608, 470 P.2d 762.

12. Subsections (a) and (l) applied in forcible detainer action determining entitlement to rents and profits during period of redemption. Pine v. Pittman, 211 K. 380, 385, 386, 387, 506 P.2d 1184.

13. Subsection (k) cited in discussing statutory exemption rights. Mahone v. Mahone, 213 K. 346, 351, 517 P.2d 131.

14. Proceeds from voluntary conveyance of homestead not exempt from attachment where no intent shown to invest funds in new homestead. International Harvester Credit Corp. v. Ross, 217 K. 683, 684, 685, 686, 687, 538 P.2d 655.

15. Reference to "lien inferior thereto" in subsection (o) means adjudicated lien. Lenexa State Bank & Trust Co. v. Dixon, 221 K. 238, 242, 243, 559 P.2d 776.

16. Where corporate mortgagor waived right to redemption in mortgage instrument, noncorporate assignee or purchaser bound by waiver. Kansas Savings and Loan Ass'n v. Rich Eckel Construction Co., Inc., 223 K. 502, 503, 504, 576 P.2d 212.

17. Appropriate rate of interest on redemption is rate set forth in original mortgage note; no obligation to pay interest on funds held by court. Capitol Fed'l Savings & Loan v. Youker, 4 K.A.2d 379, 380, 607 P.2d 80.

18. Period of redemption commences to run from date of sale; purchaser at sheriff's sale is indispensable party to agreement to extend redemption period. Anspacher & Assocs., Inc. v. Leslie, 5 K.A.2d 348, 349, 350, 616 P.2d 297.

19. Court has power upon equitable grounds to extend period of redemption; trial court did not abuse discretion. First Federal Savings & Loan Ass'n v. McKain, 5 K.A.2d 387, 389, 617 P.2d 583.

20. Junior lienholder of record prior to the date of judgment not joined as party in mortgage foreclosure action not barred from second sale of real estate. McGraw v. Premium Finance Co. of Missouri, 7 K.A.2d 32, 34, 36, 637 P.2d 473 (1982).

21. Income derived from property during redemption period and held by receiver is not subject to garnishment. Ropfogel v. Enegren, 7 K.A.2d 644, 645, 647, 646 P.2d 1138 (1982).

22. Redemption rights unavailable to foreclosures by federal mortgagees; common-law doctrine of equity of redemption still available. United States v. Curry, 561 F.Supp. 429, 430 (1983).

23. Cited; forfeiture and damages as inconsistent remedies examined. Rosson v. Cutshall, 11 K.A.2d 267, 719 P.2d 23 (1986).

24. Cited; disposition of partnership interests and vendor's interest in contract for deed determined. City of Arkansas City v. Anderson, 12 K.A.2d 490, 496, 749 P.2d 505 (1988).

25. Second foreclosure statute no bar to federal attempt to foreclose tax and judgment liens, though U.S. foreclosed earlier in state court. U.S. v. Jones, 699 F.Supp. 248, 250 (D. Kan. 1988).

26. Separate assignment of rents and profits, rights thereto and to possession during redemption period, "mortgage in possession" examined. Mid Kansas Fed'l Savings & Loan Ass'n v. Zimmer, 12 K.A.2d 735, 755 P.2d 1352 (1988).

27. Cited; right of defendant owner's assignee to redeem from redeeming junior lieu creditor under six-month redemption period examined. Farmers State Bank v. Ward, 13 K.A.2d 39, 761 P.2d 315 (1988).

28. Order extending statutory redemption period is final appealable order. Federal Savings & Loan Ins. Corp. v. Treaster, 13 K.A.2d 305, 308, 770 P.2d 481 (1989).

29. Mortgagor is not entitled to exercise right to possession beyond expiration of redemption period. Hermes v. Federal Crop Ins. Corp., 729 F.Supp. 1292, 1296 (1990).

30. Chapter 11 debtors' redemption rights in nonexempt real property were property of debtor's estate that could be sold to pay administrative expenses. In Re Sinker, 113 B.R. 34, 36 (1990).

31. Collateral estoppel applied where government foreclosed second time on debtor's home where ruling final and no appeal taken. In Re Jones, 116 B.R. 810, 815 (1990).

32. Mortgagee's deficiency judgment of foreclosure does not constitute a lien creating a right of redemption. Federal Land Bank of Wichita v. Brown, 15 K.A.2d 302, 304, 807 P.2d 702 (1991).

33. Cited in priority dispute between two creditors concerning surplus proceeds from foreclosure sale of real estate. Kinsley State Bank v. Waters, 18 K.A.2d 413, 416, 854 P.2d 311 (1993).

34. The three-month redemption period is not applicable to real property executed upon to satisfy deficiency judgment. Farm Credit Bank of Wichita v. Zerr, 22 K.A.2d 247, 248, 915 P.2d 137 (1996).

35. Loan document general waiver of right of redemption on residence did not constitute per se violation of KUCCC (16a-5-102 et seq.). Pilcher v. Direct Equity Lending, 189 F.Supp.2d 1198, 1209 (2002).

36. Denial of party's statutory and due process notice required set-aside of sale, not revived redemption right. Alliance Mortgage Co. v. Pastine, 281 K. 1266, 1276, 136 P.3d 457 (2006).

37. A purchaser of real property under contract may be an equitable owner of the property and entitled to the right of redemption. Smith v. Oliver Heights, 49 K.A.2d 384, 311 P.3d 1139 (2013).

38. Kansas statutory redemption periods do not apply where real property was seized and sold under federal law and no reason or authority exists to adopt a longer redemption period than federal statute allows. Hattrup v. Deng, 433 F. Supp. 3d 1246, 1275 (D. Kan. 2020).

39. Assignee of a defendant owner's redemption rights obtains all property rights of the owner upon exercise of the redemption rights, and a deed is not the only method to transfer title to real property. Bucklin Nat'l Bank v. Hayse Ranch, 58 K.A.2d 715, 475 P.3d 1 (2020).


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