What is a Lien in Rhode Island?
Liens are a method of debt collection in Rhode Island. They indicate a creditor's security interest in a debtor's property or assets. Liens provide security by allowing creditors to seize or sell a debtor's property or take other legal action against them to satisfy debts and obligations. In Rhode Island, a lien may be general or specific. A general lien gives the creditor authority to retain any of the debtor's property until all their debt is cleared. In contrast, specific liens arise when the creditor has the right to repossess a specific asset or property.
Depending on the transaction type and the entities involved, liens in Rhode Island can be recorded in the county courts, the recorder of deeds office, the office of the Secretary of State, and Rhode Island courts. These records are public information, and they are open and accessible to members of the public through the Rhode Island Judiciary Public Portal and the state's land record database.
Are Liens Public in Rhode Island
Yes, liens are typically considered public information in Rhode Island in accordance with the state's lien laws. When a lien is filed, it becomes part of the public record, allowing anyone to access the details within the filing. This transparency enables interested parties to conduct thorough research on properties or debtors.
Once a debtor satisfies the underlying debt in Rhode Island, the lienholder is responsible for filing a discharge of lien with the appropriate municipality's land evidence records office. Upon filing the discharge, the lien ceases to be effective, the property is no longer at risk of seizure, and the lien is considered legally terminated.
What is a Property Lien in Rhode Island?
A property lien in Rhode Island is the legal right that a creditor or lender has to retain a debtor's property, pending the discharge of a debt. Usually, debtors consent to liens when they want to secure a loan. Property liens allow creditors to claim a debtor's property as collateral to protect their interests. These liens can result from various transactions between different entities. They may also arise from contracts and statutes. Some examples of property liens include judgment liens, state or federal tax liens, mechanics' liens, mortgage liens, etc.
Property Lien Search by Address in Rhode Island
In Rhode Island, a property lien search by address can be performed at the town clerk's office or the department of land registry where the property is located in the different counties across the state. All mortgages, discharges, assignments, liens, maps, surveys, and other legal documents submitted for recording on all properties in the city are typically handled by the town clerk's offices, which are also responsible for indexing, scanning, printing, and keeping them. Some of these offices also maintain an online searchable database that interested individuals can use to find liens on specific properties in the state. For instance, the Warwick county town clerk's office in Rhode island maintains a database for searching property lien records in the county.
Record seekers can also find property liens using the Rhode Island land records website. This website offers quick access for interested parties to the municipalities whose land records are available online.
Free Property Lien Search by Address
In Rhode Island, county clerk offices maintain online public records search portals where members of the general public can perform a free property lien search by address. By going to the official recorder website, information seekers can locate a county clerk's property records search portal. These search engines frequently offer various details about liens on real estate, including lien extensions, notices of liens, releases of liens, and tax liens.
What is a Tax Lien in Rhode Island?
Rhode Island tax liens are public records filed with state and county governments. They notify residents that a taxpayer owes the government unpaid taxes. Rhode Island's Division of Taxation issues these liens on a taxpayer's property to force or encourage payment. Failure to pay despite the government's claim on properties or assets leads to tax levies. Tax levies are legal seizures of liened properties to pay delinquent taxes.
Rhode Island relies on taxes to provide citizens with essential services such as transportation, health care services, education, etc. Hence, an entity's failure to pay taxes burdens the government and honest taxpayers.
Tax liens make transactions difficult for defaulting taxpayers. They prevent debtors from purchasing or refinancing real property, leading to probable job loss and even bad credit scores. Along with 23 other US states, Rhode Island maintains a public list of defaulting taxpayers. Publishing these lists encourage tax delinquents to pay what they owe. They also keep other creditors and the general public informed. To remove tax liens, taxpayers must pay their taxes, make an offer in compromise, wait out the statute of limitations, or declare bankruptcy.
Although tax liens can be attached to all of a delinquent taxpayer's assets, including vehicles, lands, houses, etc., they are usually placed on real property. Therefore, homeowners in Rhode Island that owe property taxes can lose their properties in tax sales (RIGL § 44-9-8).
To satisfy tax debts, the county tax collector sells liened properties at tax sales (public auctions). The winning bidder gets a deed to the property or a portion of the parcel at the public auction. However, they do not become automatic owners immediately. Rhode Island gives defaulting taxpayers a redemption period of 12 months, within which they may reclaim their property. Statutes detailing Rhode Island tax laws include Title 44, Chapter 44-9, Rhode Island General Laws.
Tax Lien Lookup in Rhode Island
Tax liens lookup in Rhode Island can be carried out online on the portal hosted by the New Hampshire department of revenue administration. Interested persons can find information on how to look up tax liens for properties Under the municipal and property division section on the website. The department of revenue administration in Rhode Island has the authority to impose liens on real estate, personal property, and property interests, such as bank accounts, accounts receivable, security interests, and similar assets. Also, the property with liens may go up for tax sale.
Individuals can search their tax records and execute a tax lien lookup by physically visiting the department's office. The department's office can be found at:
New Hampshire Department of Revenue Administration
Governor Hugh Gallen State Office Park
109 Pleasant Street (Medical & Surgical Building),
Concord NH
What is a Mortgage Lien in Rhode Island?
Mortgages are loans taken from financial institutions and other lending organizations in Rhode Island to buy or refinance real property. These loans are secured against the property's value until paid off. As a result, with Rhode Island mortgage liens, creditors have the legal right to claim a debtor's property upon a failure to pay debts. With a mortgage lien, lienholders protect their interests even if the borrower fails to pay back the loan.
A Rhode Island mortgage lien is a financial claim to a property. It does not give the creditor complete property ownership unless the debtor fails to make payment. Hence, it is more of a formality because as long as the debtor can make scheduled payments on time, the lien may never be acknowledged or enforced.
What is a Mechanics Lien in Rhode Island?
Rhode Island's mechanics' lien is a legal tool employed by contractors and other construction entities to secure payment for their services. The lien provides these entities with substantial leverage during payment disputes in construction projects. Filing or recording a mechanics' lien creates a public record of debt. This informs potential buyers and financiers about the outstanding debt and negatively affects the property's market value.
Any entity that has provided services or materials to alter, build, or improve a property can file a mechanics' lien against the property. First, they must give a "notice" of a possible mechanics' lien. This notice is essential and required by law. The notice must be addressed to the property owner. It must include the following information:
- The full name of the property owner.
- The debtor's mailing address (the name and address should be located on the upper left-hand corner of the notice).
- A general description of the property, enough to identify it with reasonable certainty
- A description of the services provided or the materials furnished and their approximate value.
- The name and address of the claimant.
Furthermore, the Notice of Intention must be clearly stated. It must indicate that a construction entity will perform labor or furnish materials to the property at a specified address. It should also state the entities must receive payment after they render services and that a failure to do so will cause the undersigned entities to file a mechanics' lien against the property. However, this notice must be notarized to be valid.
Claimants must note that failure to provide this notice nullifies the right to file a mechanics' lien in Rhode Island. The property owner might seek a summary discharge and dismissal of the mechanics' lien if a contractor or claimant did not give the required notice. The Notice of Possible Mechanics' Lien must be served to the property owner by certified mail before the project starts.
If payment is still not settled after serving the preliminary notice, the claimants can go ahead to file a mechanic's lien. The lien claim is recorded with the town clerk or county recorder of deeds in the county where the property is located. Claimants must note that there are filing costs associated with recording a mechanics' lien.
If the claimants do not still receive compensation after recording a lien, they can enforce the mechanics' lien. To do this, they have to file a Notice of Lis Pendens first and then record a Complaint to Enforce the Mechanics' Lien in the Superior Court where the property in question is located. The claimants must register these documents within 40 days of filing the Rhode Island mechanics' lien. If the lien is not enforced within these 40 days, it will expire and become unenforceable.
What is a UCC Lien?
Uniform Commercial Code (UCC) liens in Rhode Island are public filings or notices of secured transactions. They are financing statements that document money lending or commercial agreements between creditors and debtors. They indicate the collateral(s) that borrowers use to secure their debts and establish priority if a debtor defaults in payment or goes bankrupt and cannot pay back the loan.
Lenders file UCC liens in the office of the Rhode Island Secretary of State. The office provides lenders with the option of filing liens online. The associated filing costs are payable by credit card. The UCC lien must contain some vital information, including the identity of the creditors and debtors. The filing party can also select the number of debtors, secured parties, and assignees. Afterward, the party can click the "File a UCC 1" button. This action will cause the system to display the UCC 1 form. The filing party must then complete the required sections in the form. First, the party must enter the accurate identity details and contact information. Furthermore, details of the debtor and secured party must be provided, including names, business names, and the collateral used to secure the loan. The filer must also enter a collateral description in the form of a collateral statement. This information could be uploaded as a pdf attachment.
After completing the online form, an acknowledgment (filing evidence) will be emailed to the secured party or creditor. Creditors can confirm their filing status by conducting a Rhode Island UCC search.
Lenders that choose to file in paper format must provide all relevant information, including the exact filing fees, and send them via mail to the following address:
Rhode Island Department of State
Business Services Division
148 West River Street
Providence, RI 02904-2615
How to Conduct a UCC Lien Search
The Uniform Commercial Code permits a creditor to file a financing statement with specific filing offices to inform other creditors of a debtor's assets that are being used as collateral for a secured transaction.
To conduct a UCC lien search that is specific to New Hampshire, individuals can visit the office of the New Hampshire secretary of state either online or in person. To initiate a search request the requestor will be required to submit the name of the debtor or the file number of the related initial financing statement. The requestor will also be required to submit their name and address which is especially useful for the search results to be delivered to the requestor. The fees for searches are $10 per search and $1 per page copied. The New Hampshire office of Uniform Commercial Code (UCC) pursuant to the state's UCC statutes on UCC filings maintains a consolidated index of certain lien-related documents affecting the personal property in the state which is made available upon a search request.
What is a Judgment Lien?
When creditors in Rhode Island file a case for unpaid debts and win the case, the court enters a judgment ordering the debtor to pay these debts within a specified period. If a debtor fails to honor this obligation, the creditor can claim the debtor's properties, wages, and assets by filing and enforcing a judgment lien. This judgment lien gives the creditor the authority to garnish the debtor's wages and seize or sell real/personal properties to satisfy debts.
Rhode Island judgment liens are attached to real estate and personal property. Hence, judgment creditors may claim homes, cars, boats, jewelry pieces, antiques, and other valuables. Creditors who want to attach judgment liens to a debtor's belongings must request execution of the attachment within 48 hours of the judgment's entry. Then, they can file the execution with the town clerk or recorder of deeds in the Rhode Island town where the debtor's property is located. According to Rhode Island state laws, judgment liens remain attached to a debtor's property for 20 years. The lien can be executed with a writ of execution to levy a judgment debtor's property.
What is a Federal Tax Lien
When a citizen ignores or refuses to pay a tax bill, the government may have a legal claim over their property in the form of a federal tax lien based on the Internal Revenue Code (IRC) § 6321. A tax defaulter's real estate, personal property, and financial assets are all covered by the lien, which safeguards the government's interest in all of those assets in accordance with IRS publication 594. A federal tax lien develops when: An individual receives a bill from the IRS detailing their debt (Notice and Demand for Payment), but neglects or refuses to pay the total amount due on schedule.
What is a Lien Title?
A lien title is one that has a lien or several liens placed against the real estate. Liens are official claims or encumbrances placed on property to ensure that a debt or obligation is paid. Until the debt or obligation is paid off, the property is subject to the legal rights of the lien holder.
A lien puts a cloud on the title of a property, making it only possible to sell or transfer ownership once the lien is paid off. As a result, a title with liens shows that the property is not free and clear and that the lien holder has a legal right to the property until the debt or obligation is settled.
Where and How to Do a Title Search in Rhode Island
In Rhode Island, the town clerk's office where the property under search is situated is the appropriate place to do title searches on real estate. For the town or city they represent, the town clerk is in charge of keeping track of land records and property information. Anyone who is interested can pay a Visit to the town clerk's office and ask for access to the property records during business hours. The town clerk's office personnel will need the property address or owner's name from the requestors in order to retrieve the property record. For instance, the office of the town clerk in Smithfield in Rhode island permits persons to use their property records to perform a title search for a small fee.
In addition, title search services are offered in Rhode Island by private businesses and agencies. It is crucial to conduct thorough research and pick a reputable and trustworthy source when deciding to employ a private corporation or title search firm.
Voluntary Lien vs. Involuntary Lien in Rhode Island?
Liens are attached to properties in different ways, depending on the transaction between the debtor and creditor. In some cases, liens may be part of the contractual agreement established to secure a loan; in these situations, the lien is placed with the debtor's consent. Other times, they are established without the debtor's knowledge or consent.
Essentially, voluntary liens exist because of any action taken by a debtor. They are common with commercial transactions where the debtor takes out loans to finance real or personal properties.
In contrast, involuntary liens are non-consensual and occur by law. They are attached to properties without the debtor's consent. Regulatory authorities usually impose them in Rhode Island, such as the state courts and the Rhode Island Division of Taxation.
