3.2 Rhode Island Property Law
Key Takeaways
- Rhode Island recognizes tenancy in common (default, no survivorship), joint tenancy (equal shares, survivorship), and tenancy by the entirety (married couples only).
- Tenancy by the entirety gives married couples automatic survivorship plus protection from one spouse's individual creditors; both must sign to convey.
- Deeds are recorded with the city or town clerk where the property sits — Rhode Island has no county recorders — giving constructive notice and priority.
- Warranty deeds give full title guarantees, special warranty deeds cover only the grantor's ownership period, and quitclaim deeds guarantee nothing.
- Property tax liens are superior to all other liens; the RI real estate conveyance (transfer) tax is paid by the seller at the per-$500 statutory rate.
Forms of Co-Ownership
When two or more people hold title together, Rhode Island recognizes three concurrent estates. The exam loves to test which one carries a right of survivorship (the deceased owner's share passes automatically to the survivor, bypassing probate).
Tenancy in Common (the default)
| Feature | Detail |
|---|---|
| Shares | May be equal or unequal (e.g., 60/40) |
| Survivorship | None — a share passes to the owner's heirs/will |
| Transfer | Each co-tenant may sell or mortgage their share |
| Default | Applies when the deed does not say otherwise |
Joint Tenancy
| Feature | Detail |
|---|---|
| Shares | Must be equal |
| Survivorship | Yes — passes to surviving joint tenant(s) |
| Four unities | Time, Title, Interest, Possession (memorize TTIP) |
| Creation | Must be expressly stated in the deed |
Selling one joint tenant's interest severs that share into a tenancy in common; the remaining joint tenants keep survivorship among themselves.
Tenancy by the Entirety
| Feature | Detail |
|---|---|
| Who | Only married couples |
| Survivorship | Yes, automatic |
| Conveyance | Both spouses must sign to sell or mortgage |
| Creditor shield | Protected from a creditor of one spouse alone |
Key Point: Tenancy by the entirety is the spousal form; divorce typically converts it to a tenancy in common.
Types of Deeds and Their Warranties
A deed is the instrument that conveys title. The warranties (promises about the title) decide how much the buyer is protected.
| Deed | Warranties | Grantor liability | Typical use |
|---|---|---|---|
| General Warranty | Full — defends title against all claims, even before the grantor owned it | Greatest | Standard residential sale |
| Special Warranty | Only against defects arising during the grantor's ownership | Limited | Estates, REO/foreclosure sales |
| Quitclaim | None — conveys only whatever interest the grantor has, if any | None | Clearing clouds, transfers between family/spouses |
Worked example: A divorcing spouse signs a quitclaim deed to release any claim to the marital home. The receiving spouse gets no title guarantees — only whatever interest the signer held. To insure the title afterward, the buyer relies on a separate title-insurance policy, not the quitclaim.
Recording: Municipal, Not County
Unlike most states, Rhode Island records at the city or town level — there are no county recorders. Deeds, mortgages, liens, and easements are recorded with the city or town clerk (recorder of deeds) in the municipality where the property is located.
| Purpose of recording | Effect |
|---|---|
| Constructive notice | The public is legally presumed to know recorded facts |
| Priority | Generally first to record, first in right |
| Chain of title | Creates a searchable ownership history |
| Protection | Guards a buyer against later, secretly created claims |
To record, a document must be the original (or certified copy), properly signed by the grantor, acknowledged before a notary, and accompanied by the recording fee. Recording does not by itself make a defective deed valid — it only gives notice.
Property Taxes and the Conveyance Tax
Rhode Island has no state property tax; the city or town assesses and collects property taxes, sets the rate, and fixes due dates. A property tax lien is superior to mortgages and most other liens — it gets paid first in a foreclosure or sale.
At closing the seller pays the real estate conveyance (transfer) tax under R.I. Gen. Laws Chapter 44-25. The long-standing rate was $2.30 per $500 of price, but the FY2026 budget raised it: effective October 1, 2025 the base rate is $3.75 per $500 of the sale price (about $7.50 per $1,000), with an additional $3.75 per $500 on the portion of price above roughly $800,000 (the upper-tier threshold is indexed and is about $824,000 for 2025–2026). Because rate changes are recent, confirm the current figure on exam day.
The state exam tests the method (price ÷ 500 × rate, rounding partial $500 increments up) more than the exact rate, but know that the seller pays and the calculation works in $500 units.
Worked example: At the current $3.75 rate, a $400,000 sale = 400,000 ÷ 500 = 800 units × $3.75 = $3,000 conveyance tax, paid by the seller. (Under the older $2.30 rate the same sale was $1,840.)
Liens and Their Priority
A lien is a claim against property securing a debt. Liens are either voluntary (a mortgage the owner agrees to) or involuntary (imposed by law).
| Lien type | Voluntary? | Notes |
|---|---|---|
| Property tax | Involuntary | Superior — paid before all others |
| Mortgage | Voluntary | Priority by recording date |
| Mechanic's lien | Involuntary | For unpaid labor/materials; may relate back to when work began |
| Judgment lien | Involuntary | From a court money judgment |
Priority Order (general rule)
- Property tax and municipal assessment liens (superior)
- First-recorded mortgage
- Later-recorded mortgages and liens in date order
- Mechanic's liens (which may relate back to the start of work)
Exam Tip: When a question asks who is paid first after a foreclosure sale, unpaid property taxes come off the top before any mortgage, regardless of recording dates.
Title Insurance and Marketable Title
Because a quitclaim or even a warranty deed only states promises, Rhode Island buyers protect themselves with title insurance issued after a title search of the municipal land records. An owner's policy protects the buyer up to the purchase price; a separate lender's policy protects the mortgage lender. A seller is generally expected to deliver marketable title — title free of undisclosed liens, encroachments, or chain-of-title gaps that a reasonable buyer would object to.
Easements and Encroachments
An easement is a right to use another's land (for example, a shared driveway or a utility line). It runs with the land and should be recorded. An encroachment is a physical intrusion — a fence or shed built over the boundary — and may cloud title until resolved. Both are commonly disclosed on a survey and can become exam fact patterns about what makes title unmarketable.
Which form of co-ownership in Rhode Island is available only to married couples and shields the property from a creditor of just one spouse?
Where are deeds recorded in Rhode Island to give constructive notice?
After a foreclosure sale, which claim is paid FIRST from the proceeds?