Following the foreclosure of two mortgages, the bank which purchased at the sale sought to evict the former homeowner from the premises by bringing a possessory action in the local Circuit Court. The bank proved it had a right to relief by entering a certified copy of the foreclosure deed. The former owner objected, arguing that there were problems in the record title which would defeat the bank’s ownership. The Circuit Court refused to rule on the former owner’s arguments, reasoning that it had no jurisdiction to deal with real estate title issues, and granted possession of the property to the bank. This appeal followed.
The Supreme Court affirmed, finding that the Circuit Court did not, in fact, have the statutory jurisdiction to adjudicate title to real estate. The statute governing possessory actions contains a procedure under which a defendant may remove the case to the Superior Court, which does have jurisdiction to deal with these questions.
While this case dealt with a private mortgage, the same principles apply after the recording of a tax collector’s deed of real estate to the municipality. If the Board of Selectmen (or other governing body) wishes to evict the former homeowner from the premises by a possessory action in the Circuit Court, the law requires the municipality to:
1) Enter a certified copy of the deed conveying the premises to the municipality into evidence at the court hearing; and
2) Object if a defendant attempts to defend the action by claiming that the title to the real estate is defective, since that issue may only be litigated in the Superior Court after the procedure contained in RSA 540:17 is followed.