USA Foreclosure Wiki

Rhode Island

47 min read

Rhode Island — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Rhode Island is a municipal tax-title / redeemable-deed state. Cities and towns (not counties) conduct the sale; the collector issues a collector’s deed that is held only as security until the one-year right of redemption is either exercised or foreclosed by decree of the Superior Court. The redemption-foreclosure step — not the auction itself — is where ownership becomes absolute, and it is where Rhode Island’s structure raises tyler-v-hennepin-county equity-retention questions.

0. Identity & Classification

1. Tax Sale Mechanics

2. Right of Redemption → see right-of-redemption

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

▸ For Investors / Operators — Rhode Island is a municipal redeemable-deed / tax-title state: the collector’s deed (§ 44-9-12) is held only as security until redemption runs or the Superior Court forecloses all redemption by decree (§§ 44-9-25, 44-9-30), at which point title becomes absolute (§ 44-9-24). Because bidding is for the smallest undivided part of the land (§ 44-9-8), an auction surplus under § 44-9-37 rarely arises. Before committing capital, weigh the redemption risk (§2/2b — at least one year from sale and until a foreclosure petition is filed; the tax title itself is assignable under § 44-9-18, but the naked redemption right is limited to the enumerated parties of §§ 44-9-19/21), the path to marketable/insurable title (§5b — the § 44-9-30 decree is the quiet-title mechanism, then the 6-month § 44-9-24 vacatur window, with the 40-year MRTA at ch. 34-13.1 for pre-lien clouds), and the notice landmines that void a sale (§6/§7 — a missing § 44-9-10 manifest to RI Housing nullifies the sale, plus § 44-9-11 mortgagee notice and the IRS § 7425 120-day redemption).

▸ For Former Owners — A § 44-9-37 surplus belongs to the former owner only in the narrow case where the collector’s auction yields more than the debt and expenses; far more often the owner’s residual equity in the whole parcel is extinguished by the § 44-9-30 strict-foreclosure decree with no statutory payout (the open tyler-v-hennepin-county question — Module 11). Where a surplus does exist, the statute imposes no affirmative municipal notice — the owner must demand it from the city or town treasurer within five years, or it enures to the municipality (§ 44-9-37). Redemption (§2) is available by paying the purchase price + intervening taxes + 1%/month interest + the § 44-9-19 penalty until a foreclosure petition is filed.

4. Mortgage Foreclosure

  • Process: both — Rhode Island predominantly uses non-judicial foreclosure by statutory power of sale under the mortgage’s power-of-sale clause (Title 34, ch. 34-11/34-27); judicial foreclosure is also available. 140 Reservoir Ave. Assocs. v. Sepe Invs., LLC, 941 A.2d 805 (R.I. 2007) (a “foreclosure conducted by statutory power of sale was a bar against the mortgagor”). — official RI tax case index, http://www.municipalfinance.ri.gov/documents/resources/lawschrono.pdf
  • Timeline: statutory power-of-sale foreclosure requires mailed notice to the mortgagor and publication before sale; see module 11 needs_verification for the exact day-counts under R.I. Gen. Laws § 34-27-4 (not retrieved this pass).
  • Reinstatement / redemption after sale: unverified this pass — Rhode Island generally has no statutory post-sale redemption for power-of-sale mortgage foreclosure (equitable redemption is cut off at the sale), but the precise § 34-27 citation was not retrieved; flagged in module 11.
  • Deficiency judgment: unverified this pass — see module 11.
  • Surplus distribution: mortgage-sale surplus is distributed to junior lienholders by priority and then the mortgagor; precise citation flagged in module 11.
  • Sale officer: the mortgagee (or its attorney/auctioneer) under the power of sale; in judicial cases, a court-appointed officer.

5. Sale Procedure Playbooks

6. Due Process & Notice → see due-process-notice

7. Title & Marketability

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
westconnaug-recovery-v-us-bank2023redemptionA party answering a foreclosure petition must make a statutory offer to redeem under § 44-9-29 on or before the return day; merely contesting tax-title validity under § 44-9-31 does not preserve redemption. Cited 290 A.3d 364 (R.I. 2023).https://www.hinshawcfs.com/rhode-island-supreme-court-redemptions-tax-sale-proceedings
amy-realty-v-gomes2004due_process / sale_procedureWhere notice of delinquency and impending sale was given by certified mail to the owner’s last-known address (returned unclaimed) and by publication, the sale complied with the statute and should not have been set aside. 839 A.2d 1232 (R.I. 2004).http://www.municipalfinance.ri.gov/documents/resources/lawschrono.pdf
harvey-realty-v-killingly-manor2001due_processA condominium association was not a “taxpayer” entitled to statutory notice, but as an interested party it was entitled, under due-process principles, to some form of notice of the tax sale. 787 A.2d 465 (R.I. 2001).http://www.municipalfinance.ri.gov/documents/resources/lawschrono.pdf
united-lending-v-providence2003sale_procedure / titleWhen the city took absolute title upon foreclosure of the right of redemption, prior tax liens were extinguished and later-accruing liens terminated — illustrating the strict-foreclosure title effect. 827 A.2d 626 (R.I. 2003).http://www.municipalfinance.ri.gov/documents/resources/lawschrono.pdf
140-reservoir-ave-v-sepe2007sale_procedure (mortgage)A mortgage foreclosure conducted by statutory power of sale was a bar against the mortgagor and interests reposing in the record owner. 941 A.2d 805 (R.I. 2007).http://www.municipalfinance.ri.gov/documents/resources/lawschrono.pdf
tyler-v-hennepin-county2023surplusA government that keeps a former owner’s surplus equity beyond the tax debt effects an unconstitutional taking (Fifth Amendment). Rhode Island’s strict-foreclosure decree (§ 44-9-30) returns no residual equity — Tyler reconciliation is unsettled (module 11).https://www.naco.org/news/supreme-court-case-could-impact-county-property-tax-revenue-21-states

Note: Johnson v. QBar Assocs. (R.I. 2013) (decree-vacatur limited to due-process infirmity) is referenced in the official RI case index but a verified reporter citation was not located this pass — see module 11.

9. Edge Cases (state-specific notes)

10. Operations

Local pages

County deep dives: providence-ri Unclaimed funds agency: unclaimed-property-rhode-island

Who this page is for

▸ For Investors / Operators — Start with §0/§1 (municipal redeemable-deed structure, bid-down for the smallest undivided part under § 44-9-8, collector’s deed held as security per § 44-9-12), §2/2b (redemption runs at least one year and until a § 44-9-25 foreclosure petition is filed; the tax title is assignable under § 44-9-18 while the naked redemption right is confined to the §§ 44-9-19/21 enumerated parties), §5b (path to absolute title — the § 44-9-25/30 petition to foreclose redemption is the quiet-title action, the 6-month § 44-9-24 vacatur window, and the 40-year ch. 34-13.1 MRTA), §7b (liens that survive — federal tax liens absent § 7425 notice and the IRS 120-day redemption), and §11b (broad entity eligibility, the § 44-9-13 delinquent-taxpayer bidder bar, and RI Housing’s § 44-9-8.3 right of first refusal on owner-occupied residential property).

▸ For Former Owners — Start with §3 (a § 44-9-37 surplus — narrow, because of fractional bidding — belongs to the former owner, but only if demanded from the city or town treasurer within five years, with no affirmative municipal notice; otherwise it enures to the municipality), §2 (redemption — paying purchase price + intervening taxes + 1%/month + the § 44-9-19 penalty before a foreclosure petition is filed, exercised through the treasurer as the purchaser’s agent until one year from sale), and §5c (grounds and procedure, including the Super. Ct. R. Civ. P. 65 bond, for an emergency action to halt a sale).

11. Meta

2b. Redemption Advanced

Assignability of the Statutory Redemption Right

  • Who may redeem: § 44-9-21 limits the right of redemption to persons “entitled to notice of the sale pursuant to §§ 44-9-10 and 44-9-11” — i.e., the taxpayer of record, present owner, mortgagees/assignees of record, former fee holders, tax-title holders, recorded federal lienholders, and life tenants/vested remaindermen. § 44-9-21 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-21.htm
  • Is the redemption right assignable? The statute does not expressly authorize a recorded-interest-holder to assign the redemption right to a third party who holds no independent interest. Rhode Island’s enumerated list of redeemers in §§ 44-9-19 and 44-9-21 is exclusive — an assignee who acquires a mortgagee’s position of record would step into the mortgagee’s shoes, but a bare assignment of the naked redemption right to an uninterested third party is not addressed in ch. 44-9 and would be subject to the rule that only holders of enumerated interests may redeem. needs_verification — no case on point located.
  • Heirs and assigns: § 44-9-19 expressly includes “heirs and assigns” of an interest holder among those who may exercise the redemption right. § 44-9-19 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-19.htm
  • Equitable redemption distinct from statutory: The § 44-9-25 / 44-9-30 strict-foreclosure regime is itself an equitable proceeding in the Superior Court (§ 44-9-33 applies equity practice). Pre-sale equitable redemption (the right to pay and stop the sale) exists by statute through the payment mechanism under § 44-9-9 notice and is not a separate common-law equitable right — it is the same statutory right. No distinct “equitable redemption” doctrine operating independently of ch. 44-9 has been identified in Rhode Island case law for tax sales. needs_verification.
  • Installment redemption: Not addressed in ch. 44-9. No installment-redemption statute located. needs_verification.
  • Assignment of the tax title (purchaser’s certificate/deed): The purchaser may assign the tax title at any time. § 44-9-18 provides the statutory mechanism for a city/town to assign its tax title to a private party; by analogy and by the “all applicable provisions shall apply as though the assignee had been the original purchaser” language in § 44-9-18, private tax-title holders may also assign. The treasurer must give 10-day registered/certified notice to the record owner of an intended city/town assignment; private assignments have no such requirement stated in ch. 44-9, but the instrument must be recorded within 60 days. Once assigned, all redemption rights run against the assignee. § 44-9-18 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-18.htm
  • Restrictions on assignment of tax title mid-period: None found in ch. 44-9. The municipality-to-private assignment is explicitly authorized; private-to-private assignment is not separately restricted. The assignee steps into the original purchaser’s shoes (§ 44-9-18). § 44-9-18 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-18.htm

3b. Surplus Advanced

Claim Assignability

  • Full assignment permitted: Rhode Island ch. 44-9 contains no provision expressly authorizing or prohibiting outright assignment of a § 44-9-37 auction surplus claim (as opposed to a contingent-fee agreement). Tax titles are assignable (§ 44-9-18), but the surplus claim is a distinct chose in action against the municipal treasurer. Whether a former owner may sell the claim outright — rather than enter a contingency-fee agreement with a recovery agent — is not addressed in the statute. needs_verification — no dedicated RI surplus-assignment statute or case located.
  • Fee cap: No statutory fee cap on surplus-recovery-agent fees in Rhode Island. Ch. 44-9 contains no licensing or fee-cap regime for surplus finders. needs_verification — possibility of coverage under general consumer-protection law (R.I. Gen. Laws ch. 6-13.1) not confirmed this pass.
  • Fee cap applies to assignments: needs_verification (depends on whether assignment is permissible at all; no specific rule located).
  • Citation: § 44-9-37 (surplus) — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-37.htm

Statute of Limitations on Surplus Claims

  • Period: 5 years — if the surplus is not demanded within five (5) years, “it shall enure to the city or town.” § 44-9-37 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-37.htm
  • Trigger date: The five-year period runs from the date of the collector’s sale (the event that generates the surplus). § 44-9-37 does not expressly state a trigger; because the surplus is deposited with the treasurer at the time of sale (“any surplus remaining”), the most defensible reading is the date of sale or, at the latest, the date of deposit. needs_verification — no case interpreting the trigger date located.
  • Escheat: to the municipality (not the state’s general unclaimed-property fund). § 44-9-37 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-37.htm

Competing Claimant Procedure

  • Priority / equity rule: When multiple parties assert a right to the same surplus, Rhode Island’s tax-sale statutes direct courts to “follow the course of equity so far as equity is applicable” under § 44-9-33. § 44-9-33 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-33.htm
  • Interpleader: the treasurer may deposit competing-claim surplus into court via interpleader under general RI equity practice (§ 44-9-33). No dedicated tax-surplus interpleader statute found.
  • First-to-file: No filing-race rule identified; priority follows lien priority and equitable interests, not filing order. needs_verification.
  • Lump-sale multi-parcel surplus: allocated among owners “in proportion to the prices at which the several parcels were originally assessed.” § 44-9-37 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-37.htm

Deceased Owner Procedure

  • Probate first: Rhode Island ch. 44-9 does not address the deceased-owner surplus scenario directly. Under general RI probate and property law, a decedent’s claim to surplus would pass through the estate; the personal representative (executor/ administrator) would have standing to demand the surplus on behalf of the estate. Direct claims by heirs without probate are not sanctioned by ch. 44-9. needs_verification — no specific RI case on point located.
  • Heirs of an interest holder: § 44-9-19 includes “heirs and assigns” among those entitled to redeem, suggesting heirs are recognized interest holders; by analogy the heirs’ estate representative could claim surplus. § 44-9-19 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-19.htm

Fraudulent Conveyance Exposure on Surplus Claim Assignments

  • UVTA applies: Rhode Island has adopted the Uniform Voidable Transactions Act at R.I. Gen. Laws ch. 6-16 (short title: § 6-16-12). § 6-16-4 makes a transfer voidable when made (a) with actual intent to hinder, delay, or defraud creditors, or (b) without reasonably equivalent value while the debtor is insolvent. § 6-16-4 — http://webserver.rilegislature.gov/Statutes/TITLE6/6-16/6-16-4.htm
  • SOL for UVTA claim: 4 years from the transfer date, or 1 year after discovery if actual fraud; 4 years (no discovery tolling) for constructive fraud (§§ 6-16-4(a)(2), 6-16-5(a)). § 6-16-9 — http://webserver.rilegislature.gov/Statutes/TITLE6/6-16/6-16-9.htm
  • Application to surplus assignments: If an insolvent former owner assigns a surplus claim for inadequate consideration (e.g., a below-market sale to a recovery agent rather than a market-rate contingency fee), a creditor or bankruptcy trustee could seek to void the assignment under § 6-16-4(a)(2). The UVTA’s “transfer” definition is broad and would encompass assignment of a claim. Whether insider status (§ 6-16-4(b) factor list) applies depends on the relationship. Note: a standard contingency-fee agreement (no sale of the claim, just a fee arrangement) does not constitute a transfer of property and would not trigger UVTA exposure.
  • Citation: R.I. Gen. Laws §§ 6-16-4, 6-16-9 — http://webserver.rilegislature.gov/Statutes/TITLE6/6-16/6-16-4.htm ; http://webserver.rilegislature.gov/Statutes/TITLE6/6-16/6-16-9.htm

Surplus Claimant Notice

5b. Title Advanced

Quiet Title

Rhode Island’s “quiet title” for tax sales operates exclusively through the petition to foreclose right of redemption under §§ 44-9-25 to 44-9-30. There is no separate quiet title statute for tax titles; the petition IS the required mechanism.

Deed Seasoning

  • Insurers require seasoning: Title insurers typically require that the § 44-9-30 decree be final and that the 6-month vacatur window (§ 44-9-24) has closed before insuring the fee simple as marketable. After the 6-month window expires, the decree is unassailable except in a separate action. Many underwriters also want to see that RI Housing’s § 44-9-10 notice was given and that the § 44-9-11 mortgagee-notice record is complete. § 44-9-24 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-24.htm
  • Typical seasoning window: 6 months post-decree (the vacatur period). Some underwriters add additional time depending on the notice record. needs_verification for specific underwriter requirements.

Title Insurance

  • Immediate availability: No — title insurance is generally not available on the basis of the collector’s deed alone; the deed conveys only a security interest (§ 44-9-12). Title insurance becomes available only after the § 44-9-30 decree and expiry of the 6-month vacatur window.
  • Conditions for immediate coverage: needs_verification — some underwriters may issue a policy with exceptions pending decree; no confirmed RI underwriter offering immediate post-deed coverage located this pass.
  • Known active underwriters: needs_verification — no specific underwriter list for RI tax titles confirmed this pass.
  • Deed type: Collector’s deed conveys no warranty (§ 44-9-12); title post-decree is absolute but the deed itself carries no covenant. § 44-9-12 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-12.htm

Marketable Record Title Act

Judicial Confirmation

  • Required before deed issues: No. The collector’s deed issues at the time of sale (recorded within 60 days per § 44-9-12) without any prior judicial confirmation. The subsequent § 44-9-25 petition to foreclose is required to make title absolute, but the deed itself is not conditioned on court confirmation. §§ 44-9-12, 44-9-25 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-12.htm

Chain-of-Title Cure Depth

  • The § 44-9-30 decree bars all redemption rights of parties properly noticed under §§ 44-9-27 and 44-9-28. It does not cure defects that made the underlying sale void (§ 44-9-35 — errors that are “substantial” or “misleading” may survive). Pre-lien defects in the underlying fee-simple title remain; the decree only extinguishes the redemption layer. Prudent practitioners search title back at least 40 years under the Marketable Record Title Act (ch. 34-13.1) to address pre-lien defects.

5c. TRO & Injunctive Relief

Recognized Grounds for TRO/Injunction to Halt a Tax or Mortgage Foreclosure Sale

Tax sale (pre-petition / pre-decree):

  1. Notice defect — taxpayer did not receive the § 44-9-9 / 44-9-10 / 44-9-11 constitutionally-required notice; voidability claim under § 44-9-35. §§ 44-9-10, 44-9-35 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-10.htm
  2. Payment dispute — taxes were paid, were not legally owed, or the property was tax-exempt; these are also grounds to vacate a § 44-9-30 decree under § 44-9-24. § 44-9-24 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-24.htm
  3. Constitutional challenge — Tyler-based taking argument where the collector’s deed or subsequent strict-foreclosure decree would result in government retention of equity beyond the tax debt without compensation. Tyler v. Hennepin County, 598 U.S. 631 (2023) — see module 8.
  4. SCRA / active military — mortgagee-side statutory bar under § 34-27-4(d) for servicemembers; by analogy, a servicemember-taxpayer could seek equitable relief under § 44-9-33. § 34-27-4 — http://webserver.rilegislature.gov/Statutes/TITLE34/34-27/34-27-4.htm
  5. Bankruptcy automatic stay — federal automatic stay under 11 U.S.C. § 362(a) halts any act to collect a pre-petition debt or enforce a lien; applicable to any stage of the § 44-9 process. See bankruptcy-automatic-stay.
  6. Homestead / constitutional infirmity — Rhode Island does not have a separate homestead exemption relevant to tax sales, but due-process (constitutional) attacks on the sale may support emergency relief under § 44-9-33 equitable principles.

Mortgage foreclosure (power-of-sale):

  1. Notice defect — failure to comply with § 34-27-4 publication/mailing timeline.
  2. SCRA protection — § 34-27-4(d) expressly bars execution during/9 months after active military service without court order.
  3. RESPA / statutory violations — federal or state consumer-mortgage law violations.
  4. Mediation bypass — failure to comply with § 34-27-9 mediation-conference requirement for owner-occupied residential mortgages.
  • Rhode Island Superior Court applies the traditional four-part equity test for preliminary injunctions and TROs (the RI equivalent of the federal Winter test): (1) likelihood of success on the merits; (2) irreparable harm if relief denied; (3) balance of equities (harm to plaintiff vs. harm to defendant); (4) public interest. Under RI case law, courts have found real property losses presumptively irreparable. Standard derived from RI equitable practice and R.I. Super. Ct. R. Civ. P. 65 (which mirrors Fed. R. Civ. P. 65). needs_verification — specific RI foreclosure-TRO case confirming the 4-part standard not retrieved this pass (no primary decision URL obtained).

Court with Jurisdiction

  • Tax foreclosure: Superior Court has exclusive jurisdiction (§ 44-9-24). A TRO to halt a tax sale before the petition is filed would be sought in Superior Court exercising general equity jurisdiction. § 44-9-24 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-24.htm
  • Mortgage foreclosure: Superior Court (equity) for judicial actions; for non-judicial power-of-sale foreclosures, the Superior Court also has jurisdiction to enjoin an unlawful sale.

Bond Required

  • Yes — required by R.I. Super. Ct. R. Civ. P. 65. Rhode Island Rule 65 mirrors Federal Rule 65(c): no restraining order or preliminary injunction shall issue except upon the giving of security by the applicant in an amount fixed by the court. needs_verification — the rule text was not directly retrieved; this derives from the structure of RI court rules and common practice. Court has discretion on amount.
  • Typical bond amount: needs_verification — varies by property value and judge; commonly set at the value of outstanding taxes plus carrying costs for the injunction period.

Emergency Timeline

  • Superior Court has 24-hour on-call duty judges and can issue an ex parte TRO on the same day or within 24–48 hours of a properly filed emergency motion, if the applicant demonstrates immediate/imminent irreparable harm and satisfies the four-part test. Under R.I. Super. Ct. R. Civ. P. 65, an ex parte TRO expires after 10 days unless extended or converted to a preliminary injunction. needs_verification — the 10-day rule applies under the federal analog; direct RI rule text not retrieved.

Effect on a Completed Sale

  • Tax sale: once a tax collector’s sale has occurred and the deed has been recorded (§ 44-9-12), a TRO cannot “undo” the deed retroactively; the purchaser’s rights can be challenged only in the § 44-9-25 foreclosure proceeding (by denying the decree) or by vacating the § 44-9-30 decree within 6 months (§ 44-9-24) on due-process or invalidity grounds. A TRO issued after the gavel falls on the tax sale has limited practical effect on the completed auction; its primary effect would be to stay any subsequent recording or foreclosure petition.
  • Mortgage power-of-sale: For non-judicial foreclosures, Rhode Island courts have limited authority to unwind a completed power-of-sale after the deed is delivered to a bona fide purchaser. Relief is generally damages, not rescission, absent fraud or jurisdictional defect. needs_verification — specific RI case on post-sale reversal not retrieved this pass.

Non-Judicial Foreclosure Notes

  • Rhode Island mortgage foreclosure is predominantly non-judicial (statutory power of sale under § 34-11-22). Because there is no court confirmation step in a power-of- sale mortgage foreclosure, obtaining injunctive relief before the sale is the only practical avenue; post-sale challenges face the bona-fide-purchaser defense. Tax sales similarly require pre-petition challenge; after the § 44-9-30 decree is entered, the 6-month window is the only avenue for relief. § 34-11-22 — http://webserver.rilegislature.gov/Statutes/TITLE34/34-11/34-11-22.htm

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption Right (26 U.S.C. § 7425)

  • Applies: Yes. 26 U.S.C. § 7425(d) applies nationally whenever real property is sold at a non-judicial sale to satisfy a lien prior to a federal tax lien. When the IRS has a recorded lien, the seller (municipal collector) must give the IRS 25-day advance written notice (§ 7425(c)(1)) via registered/certified mail. If proper notice is given, the IRS has 120 days from the sale date to redeem the property by paying the amount specified in 28 U.S.C. § 2410(d).
  • RI mechanism: Rhode Island’s § 44-9-11 already requires notice to “federal agencies having a recorded lien on the subject property” not less than 20 days before the sale date. This satisfies the § 7425(c) notice requirement for tax lien purposes. § 44-9-11 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-11.htm
  • Structural note: Because RI uses a redeemable-deed / strict-foreclosure model (not a tax lien certificate), the “sale” triggering the 120-day window is the collector’s public auction. The IRS redemption right runs from that date. If the IRS redeems before the § 44-9-30 decree is entered, the tax-title holder’s investment is recouped but the foreclosure proceeding is mooted.
  • Citation: 26 U.S.C. § 7425(d) — https://www.law.cornell.edu/uscode/text/26/7425 ; R.I. Gen. Laws § 44-9-11 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-11.htm

HOA Super-Priority

  • Super-priority exists: Yes — for condominiums. R.I. Gen. Laws § 34-36.1-3.16 establishes a limited super-priority for the condominium association’s lien over first mortgages, capped at 6 months of common expense assessments plus up to $2,500 in attorney fees and$5,000 in foreclosure costs (a $7,500 non-assessment cap). Special assessments, late charges, fines, penalties, and interest are excluded from the super-priority amount. § 34-36.1-3.16 — http://webserver.rilegislature.gov/Statutes/TITLE34/34-36.1/34-36.1-3.16.htm
  • Survives mortgage foreclosure: The super-priority lien (up to 6 months assessments
  • Survives tax sale: Not explicitly addressed in § 34-36.1-3.16. Tax liens (R.I. Gen. Laws § 44-9-1) are senior to most encumbrances and the § 44-9-30 decree makes title absolute — in principle, the strict-foreclosure decree would extinguish the HOA lien along with other junior liens. However, the § 34-36.1-3.16 super-priority vis-à-vis the tax lien itself has not been confirmed by retrieved case law. needs_verification — no RI Supreme Court or Superior Court decision squarely addressing HOA-lien survival through a § 44-9-30 decree located this pass.
  • HOA lien expiration: The association’s enforcement proceedings must be instituted within 6 years after assessments become due or the lien expires (§ 34-36.1-3.16(e)). § 34-36.1-3.16 — http://webserver.rilegislature.gov/Statutes/TITLE34/34-36.1/34-36.1-3.16.htm
  • Planned community (non-condo) HOA: No equivalent super-priority statute found for non-condominium planned communities in Rhode Island. needs_verification.

Environmental Liens

  • CERCLA federal lien survives tax sale: Under 42 U.S.C. § 9607(l), EPA may impose a federal CERCLA lien on contaminated property; because it is a federal lien, it is not extinguished by a state tax sale or strict-foreclosure decree. The § 44-9-30 decree bars state-law redemption rights but cannot extinguish federal statutory liens. needs_verification — no RI-specific case confirming CERCLA lien survival post-decree located this pass; the federal rule is generally applicable.
  • State superfund super-lien: Rhode Island has a state hazardous waste remediation program (R.I. Gen. Laws Title 23 / RIDEM). Whether RI imposes a state super-lien that survives tax sales is needs_verification — no primary citation confirming a RI state-law superfund super-lien located this pass.
  • Practical note: A tax-sale purchaser should conduct a Phase I environmental assessment before bidding on industrial or commercial parcels, as CERCLA successor liability can attach regardless of the state-law title mechanism.

Municipal Code and Blight Liens

  • Survive tax sale: Under § 44-9-35, the § 44-9-30 decree bars all rights of redemption of parties with notice but the decree’s effect on municipal code liens (non-tax) is not expressly addressed. In general, RI tax-sale doctrine holds that junior liens of private parties are extinguished by the decree, but municipal code enforcement liens — which are themselves a form of governmental assessment — may survive if they arise under a separate statutory framework. needs_verification — no specific RI case on municipal code-lien survival post-decree retrieved this pass.
  • Subsequent taxes: All taxes assessed after the original sale date are added to the redemption amount (§§ 44-9-17, 44-9-21) and are NOT separately extinguished; if the owner fails to redeem, these taxes are folded into the foreclosure proceeding. §§ 44-9-17, 44-9-21 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-17.htm ; http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-21.htm

Mechanic Liens

  • Survive tax sale if noticed: needs_verification — ch. 34-28 (Mechanics’ Liens) priority relative to a § 44-9-30 decree not confirmed this pass. General RI lien priority rules suggest that a mechanic lien recorded before the tax sale date may be extinguished by the strict-foreclosure decree if the lienor was a properly noticed respondent; one recorded after the tax sale would have lower priority than the tax title. The prudent purchaser should search for any recorded mechanic liens.

Junior Mortgage Exposure

  • At tax sale: The § 44-9-11 notice requirement ensures mortgagees of record receive 20-day certified-mail notice. A properly noticed mortgagee’s lien is extinguished by the § 44-9-30 decree if the mortgagee does not appear and redeem. A mortgagee who does not receive constitutionally adequate notice has 6 months post-decree to challenge (§ 44-9-24). § 44-9-11 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-11.htm
  • Common mistake: Purchasers who obtain the collector’s deed without petitioning to foreclose may mistakenly believe they hold marketable title. The deed is only a security interest; all mortgages and junior liens remain until the § 44-9-30 decree is entered. This is the most significant single error in RI tax-title investing.

Due-Diligence Checklist for Prudent Purchasers

  1. IRS lien search (PACER / IRS FOIA) — verify 120-day redemption exposure.
  2. Full title search back ≥ 40 years (Marketable Record Title Act; ch. 34-13.1).
  3. UCC search against property owner (RI Secretary of State).
  4. Condominium status — if condo, check HOA super-priority (§ 34-36.1-3.16) and outstanding assessments.
  5. Environmental search — Phase I ESA for any non-residential or industrial parcel; RIDEM CERCLIS equivalent.
  6. Municipal code violations / blight liens search at the local building/code enforcement office.
  7. RI Housing & Mortgage Finance Corporation notice confirmation (§ 44-9-10 manifest).
  8. Office of Healthy Aging notice confirmation (§ 44-9-10(d)).
  9. Mechanic lien search in the municipal land-records office.
  10. Verify no SCRA / active military protection applicable to the property owner.
  11. Confirm no competing § 44-9-25 foreclosure petition already filed.
  12. Check for § 44-9-8.3 RI Housing right-of-first-refusal on owner-occupied residential.

10b. Purchaser Obligations During the Redemption Period

Subsequent Taxes

Notice to Owner Before Expiration

  • Required certified-letter notice: Rhode Island ch. 44-9 does not impose a statutory duty on the tax-title holder to send pre-expiration notice to the owner before filing the § 44-9-25 petition. The petition process itself requires notice to all interested parties (§ 44-9-27), but that is notice of the petition, not a pre-petition warning. needs_verification — no ch. 44-9 section creating a pre-petition certified-letter obligation located.
  • Consequence: Because no statutory warning obligation exists, the only notice the owner receives is the § 44-9-27 petition notice after the petition is filed — at which point the owner must answer and make an offer to redeem by the return date (§ 44-9-29) or be defaulted (§ 44-9-28). §§ 44-9-27, 44-9-28, 44-9-29 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-27.htm

Owner Occupancy Right During Redemption Period

  • Owner may remain: Rhode Island ch. 44-9 does not expressly address the owner’s right to remain in possession during the redemption period. No ejectment provision in ch. 44-9 grants the purchaser the right to take possession before the § 44-9-30 decree. The collector’s deed conveys only a security interest (§ 44-9-12), which is consistent with the owner retaining possessory rights until foreclosure. needs_verification — no ch. 44-9 possession/ejectment provision located; inference from the security-interest characterization of the deed.
  • Purchaser may enter for inspection / municipal taking: § 44-9-8.1(c) authorizes the municipality (not a private purchaser) to take immediate possession and collect rents when it takes property for tax and redevelopment purposes, but this power is specific to municipal takings under § 44-9-8.1 and does not extend to private tax-title holders. § 44-9-8.1 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-8.1.htm

Costs Collectible Upon Redemption

  • Items included in redemption amount (§§ 44-9-19, 44-9-21, 44-9-29):
    • Original purchase price paid at sale.
    • Subsequent taxes paid by the purchaser, plus 1%/month interest.
    • The § 44-9-19 penalty (10% of purchase price if redeemed within 6 months of the sale, +1%/month of the purchase price thereafter for city/town purchases; private purchaser penalty: the same schedule applies to the extent § 44-9-21 incorporates § 44-9-19 by reference).
    • Costs of the § 44-9-25 foreclosure proceeding and a reasonable attorney’s fee (at court’s discretion under § 44-9-29, when redemption occurs within the foreclosure case). §§ 44-9-19, 44-9-21, 44-9-29 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-29.htm
  • Documented improvements: No statutory provision in ch. 44-9 authorizes the purchaser to add improvement costs to the redemption amount. needs_verification.
  • Citation: §§ 44-9-19, 44-9-21, 44-9-29 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-21.htm

Property Maintenance Obligation

  • Statutory obligation: No explicit property maintenance obligation is imposed on the tax-title holder under ch. 44-9. The tax-title deed is a security interest (§ 44-9-12); the original owner retains possessory rights and obligations. The municipality’s power to take possession under § 44-9-8.1 is separately structured. needs_verification — no ch. 44-9 maintenance-obligation provision found.
  • Practical note: If the property is vacant/abandoned, the § 44-9-25.3 expedited foreclosure path requires the petitioner to commence substantial rehabilitation within 6 months of the final foreclosure decree (§ 44-9-25.3). This is a post-decree obligation, not a during-redemption-period obligation. § 44-9-25.3 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-25.3.htm

11b. Restrictions & Special Rules

Entity Purchase Restrictions

  • Natural persons only: No — Rhode Island ch. 44-9 does not restrict tax-sale purchases to natural persons. Entities (corporations, LLCs, partnerships) may purchase. No such restriction found in §§ 44-9-8, 44-9-12, or 44-9-46. § 44-9-8 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-8.htm
  • LLCs permitted: Yes — no prohibition found.
  • Foreign entities permitted: Yes — no prohibition found. needs_verification for any federal or state foreign-ownership (e.g., CFIUS-adjacent) restrictions that could apply to certain property types.

Insider Prohibition (Delinquent-Taxpayer Bidder Bar)

  • Who is prohibited: Under § 44-9-13(b), the following persons may not purchase at a tax sale in the municipality:
    1. Any person who is delinquent in paying taxes assessed on property located in the same city or town where the sale is held.
    2. Any officer, more than 10% shareholder or owner of a partnership, corporation, or LLC that is delinquent in paying taxes on property in that municipality. § 44-9-13 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-13.htm
  • Exception: A prohibited person may participate if they have a written payment plan approved by the collector and are current on all plan payments. § 44-9-13 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-13.htm
  • Additional exception: A bidder is not considered delinquent solely because they owe taxes on properties where the right of redemption has not yet been foreclosed (i.e., where they are already a tax-title holder). § 44-9-13 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-13.htm
  • Verification mechanism: The collector may require bidders to execute an affidavit of qualification. § 44-9-13 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-13.htm
  • Scope: Municipal-level only (applies within the municipality holding the sale). The restriction does not apply across municipalities (no cross-municipality delinquency bar stated in § 44-9-13).

Right of First Refusal

  • RI Housing (statutory ROFR on owner-occupied residential): Yes. Under § 44-9-8.3, the Rhode Island Housing and Mortgage Finance Corporation has a right of first refusal to acquire the tax lien at any tax sale involving owner-occupied residential property. RI Housing must exercise this right by notifying the collector by the later of 30 days after receiving § 44-9-10 certified-mail notice or 10 days before the sale. Failure to timely notify extinguishes the ROFR. § 44-9-8.3 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-8.3.htm
  • Match window: 30 days after certified-mail notice or 10 days before sale, whichever is later. § 44-9-8.3 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-8.3.htm
  • Municipalities / general ROFR: No general municipal ROFR found in ch. 44-9 beyond the RI Housing right. Municipalities become purchasers only by default (§§ 44-9-14, 44-9-38) when no adequate bid is received.
  • CDCs / nonprofits: No general ROFR for community development corporations or nonprofits found in ch. 44-9. Specific municipal land trusts (Barrington, Tiverton, Westerly) can receive assignments of existing municipal tax titles by the treasurer (§§ 44-9-18.1, 44-9-18.3, 44-9-18.4) — these are post-acquisition assignment mechanisms, not pre-sale ROFR rights. §§ 44-9-18.1, 44-9-18.3, 44-9-18.4 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-18.1.htm

Land Bank Program

  • Statewide program: No comprehensive statewide Rhode Island Land Bank Act was located in the statutes reviewed. needs_verification — possibility of a more recent enactment or municipal-level programs not covered by ch. 44-9 not confirmed this pass.
  • Municipal-level mechanisms: Rhode Island has narrowly-scoped municipal land-trust transfer provisions:
    • Barrington: treasurer may assign municipal tax titles to Barrington Land Conservation Trust, Inc. (§ 44-9-18.1).
    • Tiverton: same, to Tiverton Land Trust, Inc. (§ 44-9-18.3).
    • Westerly: same, to Westerly Municipal Land Trust (§ 44-9-18.4).
    • Redevelopment agencies: any city/town treasurer may assign tax titles to its redevelopment agency (§ 44-9-18.2).
    • These are not a land bank in the traditional sense (no acquisition, holding, and disposition authority over distressed properties generally); they are targeted assignment paths for conservation or redevelopment purposes.
  • Receives unsold properties: Municipalities hold unsold-at-auction properties as the default purchaser under §§ 44-9-14 and 44-9-38, and may thereafter dispose of them “like any land belonging to it” under § 44-9-34. §§ 44-9-14, 44-9-34, 44-9-38 — http://webserver.rilegislature.gov/Statutes/TITLE44/44-9/44-9-38.htm

Deficiency Judgment

After tax sale:

  • Rhode Island’s tax-sale structure produces no deficiency judgment against the former property owner. The tax-sale mechanism is an in rem remedy that extinguishes the tax debt from the property; once the § 44-9-30 decree is entered and the municipality collects the proceeds, the former owner has no remaining personal liability on the extinguished tax debt. No ch. 44-9 provision authorizes a personal deficiency against the taxpayer after tax-sale foreclosure.

After mortgage foreclosure (power of sale):

  • Rhode Island does permit deficiency judgments after non-judicial mortgage foreclosure under the statutory power of sale. The mortgagee conducting the sale (§ 34-11-22) retains proceeds equal to the debt; if sale proceeds are insufficient, the mortgagee may pursue a personal deficiency. No anti-deficiency statute located in Title 34. needs_verification — specific Title 34 deficiency-judgment statute text not retrieved this pass; statement based on absence of anti-deficiency language in §§ 34-27-1 through 34-27-9 and § 34-11-22.
  • Fair value defense: needs_verification — no RI fair-value credit statute confirmed this pass (some states require crediting the property’s fair market value against the deficiency; no such RI provision located).

Anti-Deficiency Statute

  • Exists: No general anti-deficiency statute found in Rhode Island for purchase-money or refinance mortgages. needs_verification — Title 34 sections not fully reviewed; specific sections may address purchase-money mortgages.
  • Scope: needs_verification.

One-Action Rule

  • Exists: No one-action rule found in Rhode Island statutes. needs_verification — no Title 34 provision requiring the mortgagee to proceed either by foreclosure or personal action, but not both, located this pass. Rhode Island is not listed among states that have adopted a formal one-action rule.
  • Citation: needs_verification.

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