Rhode Island Lien: A Complete Guide to Liens in the State

A lien is a claim filed against property to secure repayment of a debt or obligation. This proceeds from a judgment in a court in favor of a creditor. They afford a creditor an opportunity to recover their funds through a debtor’s property. So the debtor may not sell, refinance, or transfer ownership of the property until the lien is fulfilled.

What Is a Lien in Rhode Island?

In Rhode Island, a lien is a creditor’s legal right to claim an interest in a debtor’s property until the debts are fully paid. Liens may be applied to a debtor’s property, which includes homes, land, commercial buildings, vehicles, equipment, or business assets. The liens are usually recorded with the registry of deeds or Clerk of Courts for the county where the property is located.

Liens are part of public records once they are recorded in the county. These records are available to the public, property buyers, lenders, financial institutions, tax agencies, and title companies. Through lien documents, buyers may conduct lien checks, which are a vital step in ensuring a clear title.

Types of Liens in Rhode Island

In Rhode Island, there are several types of liens that are commonly filed by individuals. These liens may affect property ownership and transactions, with the common ones including:

1. Tax Liens - These are filed by governmental agencies for unpaid property taxes. Section 44.9.1 of the Rhode Island General Laws states that federal tax liens are handled by the Internal Revenue Service (IRS). While the State of Rhode Island’s Department of Revenue makes sure all residents pay their taxes in the state. These liens have high priority and may result in tax sales.
2. Child Support Liens - The Child Support Lien Act is filed by the Office of Child Support on the property of the non-custodial parent for past-due child support.
3. Mechanic’s Liens - If licensed contractors, subcontractors, or suppliers are not paid for their labor, services, or materials used in a construction project, they may file a mechanic’s lien. Rhode Island laws require strict adherence to statutory notice, priority, and filing deadlines.
4. Judgment Liens - These are secured in court when a creditor wins a lawsuit and records the judgment against the debtor’s property. These liens are attached to personal and real estate statewide once entered in the court system.
5. Mortgage Liens - These liens give a creditor rights over a property placed by the debtor as security during a mortgage loan. They remain active on the property until the mortgage is paid off and discharged.
6. HOA Liens - Under the Condominium Law, homeowners’ associations may file an HOA lien on a unit for unpaid dues or assessment bills.

How to Search for Liens in Rhode Island

Per Rhode Island’s Access to Public Records Act, lien records are accessible to the public. Individuals or corporations may search for them in several ways:

• Municipal Land Evidence Records: Rhode Island does not use a county system; instead, every municipality maintains its own property and lien filings through the town or city clerk’s office.
• Online Access (US Land Records System): Many municipalities, including Providence, Warwick, and Cranston, use the statewide US Land Records Portal for lien and property record searches.
• Rhode Island Judiciary Public Portal: The state judicial branch provides a statewide portal that enables individuals to search for court case information, including liens.
• Title Companies and Third-Party Services: There are private companies that offer paid lien searches to the public. They are frequently used in real estate closings, and although they display property titles, users must be careful. They are listed as an unofficial source of records.

Lien Records in Major Rhode Island Cities

When individuals request lien records, they may find information containing the lienholder’s name, debt amount, filing date, and property description. Rhode Island’s lien system is municipal-based, so searches must be conducted in the town or city where the property is located:

• Providence (Providence City): The City Clerk maintains property and lien filings, which are accessible online through the U.S. Land Records Portal.
• Warwick (Kent County, but city-managed): The Warwick City Clerk manages property and lien searches.
• Cranston (Providence County): The Cranston City Clerk maintains lien and property filings.
• Pawtucket (Providence County): The Pawtucket City Clerk provides lien and deed record searches for the public.
• East Providence (Providence County): East Providence City Clerk handles property and lien records.

How Long Does a Lien Stay on Property in Rhode Island?

The amount of time a lien lasts on a property in Rhode Island depends on the type of lien. A summary is listed below:

• Property Tax Liens: They remain active until the taxes are paid or the property is sold at a tax sale.
• Mechanic’s Liens: These liens must be enforced within 40 days of project completion, or they may expire.
• Judgment Liens: They are valid for as long as 20 years from the date of judgment.
• Mortgage Liens: They remain stuck on the property until the mortgage is fully paid and a discharge is recorded.

How to Remove a Lien in Rhode Island

To remove a lien on property in Rhode Island, an individual may take any of the following steps:

• Pay all Debts: The debtors pay all their debts and force the lienholder to file a discharge with the court clerk.
• Negotiating a Settlement: Creditors may agree to accept partial repayment from debtors. This action is later followed by recording a lien release.
• Court Petition: Debtors may challenge fraudulent, invalid, or improperly filed liens through court action.
• Recording a Discharge or Satisfaction: Upon completion of payment, property owners should ensure that the lienholder records the release or satisfaction with the municipal clerk. This document ensures that the title is cleared of all financial obligations.

Liens in Rhode Island help to recover funds for interested parties (creditors). They ensure that the debtors (property owners) comply with their court-approved financial obligations. Therefore, all parties must understand the law and intricacies of a lien in the state. They may gain knowledge by consulting a city or town clerk, a title company, or an attorney.