Rhode Island Real Estate Pitfalls: Problems That Can Turn a Routine Closing Into Litigation

Rhode Island Real Estate Pitfalls: Problems That Can Turn a Routine Closing Into Litigation

Buying or selling real estate in Rhode Island is often the largest financial decision a person will ever make. Most transactions close without difficulty. When problems arise, they usually result from issues that could have been identified before closing with proper preparation.

After more than five decades practicing Rhode Island real estate law, one conclusion stands out:

Most real estate disputes are preventable.

They usually arise when:

• Buyers assume instead of verify

• Sellers underestimate disclosure obligations

• Due diligence is rushed

• Legal review happens too late

• Parties rely on informal representations

Rhode Island’s historic property system makes careful review especially important. Colonial land records, local zoning regulations, environmental rules, and aging housing stock all create risks that may not be obvious during a showing.

Here are five of the most common problems we see — and how they can often be avoided.

What Are the Most Common Rhode Island Real Estate Problems?

The most common Rhode Island real estate problems include:

• Title defects

• Boundary disputes

• Seller disclosure failures

• Zoning restrictions

• Environmental issues

Any one of these can delay a closing or lead to legal disputes after purchase.

Pitfall #1: Title Problems That May Not Appear Until After Closing

Title problems remain one of the most common legal risks in Rhode Island real estate transactions.

Examples include:

• Old mortgages never discharged

• Unknown easements

• Probate ownership claims

• Tax liens

• Breaks in chain of title

Because Rhode Island is one of the oldest states, property records often extend back hundreds of years. Early deeds sometimes relied on landmarks like stone walls or trees that no longer exist.

How buyers protect themselves

Two protections are essential:

A legal title examination

Rhode Island considers determining marketable title the practice of law.

Owner’s title insurance

This protects buyers against claims that surface after closing.

In practice, the one-time premium for title insurance is minimal compared to the risk of ownership litigation.

Pitfall #2: Boundary Disputes

Boundary disputes often arise when buyers rely on assumptions rather than documentation.

Common causes include:

• Fence placement

• Landscaping

• Shared driveways

• Waterfront access misunderstandings

• Outdated surveys

A Rhode Island Supreme Court case demonstrates the issue.

In Clark v. Buttonwoods Beach Association (2020), homeowners believed they owned waterfront land they had used for years. The Court ruled they did not.

The takeaway:

Use does not establish ownership. Only the deed controls.

Understanding adverse possession risk

Rhode Island law allows adverse possession claims after ten years under R.I. Gen. Laws §34-7.

This creates risk for both buyers and property owners.

Prevention

The best protection is often simple:

Order a current independent survey.

This is especially important for:

• Waterfront property

• Older neighborhoods

• Irregular parcels

• Properties with shared access

Pitfall #3: Seller Disclosure Problems

Rhode Island requires residential sellers to complete a disclosure form under R.I. Gen. Laws §5-20.8-2.

This includes disclosure of:

• Structural conditions

• Mechanical systems

• Oil tanks

• Sewer systems

• Environmental hazards

• Easements

• Zoning classification

Where disputes happen

Most disputes arise from misunderstandings about what must be disclosed.

Courts may consider whether a seller reasonably should have known about a defect.

Practical guidance

For sellers:

If unsure whether something should be disclosed, disclosure is usually safer.

For buyers:

Disclosure forms do not replace inspections.

Sellers disclose what they know.

Inspectors identify what exists.

Pitfall #4: Zoning Surprises

Zoning determines how property may legally be used. Buyers sometimes rely on marketing descriptions rather than verifying municipal regulations.

Rhode Island zoning is governed locally under Chapter 45-24.

Common problems include:

• Nonconforming properties

• Setback limitations

• Density restrictions

• Accessory dwelling rules

• Home business limitations

A mistake often seen

Buyers assume an existing structure can always be modified.

But demolition, major renovation, or vacancy can sometimes eliminate grandfathered rights.

Best practice

Before purchasing:

Confirm zoning directly with the local planning department.

Pitfall #5: Environmental and Infrastructure Issues

Certain issues appear frequently in Rhode Island.

Cesspools

Rhode Island continues to phase out substandard cesspools under the Cesspool Act. Replacement costs can be significant.

Underground oil tanks

Older homes may contain abandoned tanks. Cleanup costs from leaks can be substantial.

Coastal property regulations

Properties near the shoreline may fall under CRMC jurisdiction affecting development rights and alterations.

These restrictions can affect property value and intended use.

Smart Due Diligence Checklist Before Buying Rhode Island Property

Before purchasing, buyers should consider:

✔ Hiring a Rhode Island real estate attorney

✔ Ordering a survey where appropriate

✔ Getting a thorough inspection

✔ Reviewing disclosures carefully

✔ Verifying zoning independently

✔ Purchasing owner’s title insurance

Many disputes occur when one of these steps is skipped.

Guidance for Rhode Island Sellers

Sellers can reduce risk by:

✔ Completing disclosures carefully

✔ Addressing known defects

✔ Providing available reports

✔ Reviewing contracts before signing

Minimizing issues during disclosure often creates more liability than addressing them directly.

Lessons From Practice

One lesson from decades of Rhode Island real estate practice:

Real estate disputes rarely begin at closing. They begin when preparation is incomplete.

The most valuable legal work often prevents disputes rather than resolves them.

Frequently Asked Questions

Do I need a real estate attorney in Rhode Island?

Rhode Island is considered an attorney-state for title review. An experienced real estate attorney can identify risks before closing and help prevent disputes.

Should I always get title insurance?

In most cases, yes. Title insurance protects against ownership claims that may arise after closing.

Are seller disclosures reliable?

They are important but should never replace inspections or independent verification.

Should I get a survey before buying?

If the property has boundary risks, waterfront access, shared driveways, or irregular lines, a survey is strongly advisable.

The Bottom Line

Rhode Island remains one of New England’s most desirable real estate markets. Its history and coastal character also create legal complexity.

The difference between smooth transactions and disputes usually comes down to preparation.

Questions asked before closing often prevent disputes after closing.

About the Author

Alfred R. Rego Jr. is a Rhode Island attorney with more than 50 years of experience representing buyers, sellers, developers, and property owners in real estate transactions and disputes. His practice is based in Bristol, Rhode Island.

Contact Information

Rego & Rego

Attorneys at Law

Bristol, Rhode Island

401-253-2500

https://www.rego-law.com

Disclaimer

This article is provided for general informational purposes only and does not constitute legal advice. Readers should consult a qualified Rhode Island attorney regarding their specific situation.

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#Real Estate Attorney

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The Importance of Health Care Directives- an Estate Planning Tool.

The Importance of Health Care Directives- an Estate Planning Tool.

We often find ourselves planning for the future, whether it's our education, career, or retirement. But there's one aspect of planning that may overlooked, and that's how we want to be treated in various medical situations, especially at the end of our lives.

The Importance of Health Care Directives

Health care directives, also known as living wills, medical directives, health care proxies, or advance health care directives, allow us to express our preferences about medical treatment in extreme situations when we cannot communicate. These documents are not just legal formalities; they are expressions of our values, our beliefs, and our desires.

Living Wills

A living will is your written expression of how you want to be treated in certain medical circumstances. It may permit you to express whether you wish to be given life-sustaining treatments if you are terminally ill or injured, or whether you wish to be provided food and water via intravenous devices ("tube feeding"). It's a document that speaks for you when you cannot speak for yourself.

Health Care Proxy

A health care proxy, sometimes called a "health care surrogate" or "durable medical power of attorney," allows you to appoint a person to make medical decisions for you if you are unable to express your preferences. This person becomes your voice, carrying out your wishes as you have outlined them.

Why Have Health Directives?

The purpose of these documents is to ensure that your preferences are made known. Physicians prefer these documents because they provide a written expression from you as to your medical care. They also designate the person the physician should consult concerning unanswered medical questions.

But it's not just about the medical professionals. These documents express your wishes to your family so that they don't have to guess what you would want. Making your wishes known in advance prevents family members from making hard choices at what likely will be one of the most stressful times in their lives.

Organ and Tissue Donation

In many states, including Rhode Island, you can include in your advance directive your preference to become an organ or tissue donor at the time of death. This decision can be a tremendous help to those in need, and it's one more way you can make your values and wishes known.

Communication is the Key

Many people prefer to keep their legal documents private. But with end-of-life issues, communicating your wishes is essential. Talk to your physician, your family, and the person you appoint as your health care proxy. The more these individuals know, the easier it will be for them to fulfill your wishes.

Conclusion

Planning for our future is a responsibility we all share. And that includes planning for the unexpected. Health care directives are not just legal documents; they are a reflection of who we are and what we believe. They are a way for us to speak when we cannot speak for ourselves.

I encourage you to take the time to consider these directives, to discuss them with your loved ones, and to put them in place. It's a decision that reflects not just our individual values but our collective responsibility to one another.

Things to Know Before Declaring Bankruptcy

Things to Know Before Declaring Bankruptcy.

Declaring bankruptcy is a legal process that can help people who are struggling with overwhelming debt get a fresh start. However, it is important to understand what bankruptcy entails before you file. This blog post will discuss the basics of bankruptcy, including the different types of bankruptcy, what debts can be discharged in bankruptcy, and the impact of bankruptcy on your credit score.

What is Bankruptcy?

Bankruptcy is a legal process that allows individuals or businesses to get a fresh start by discharging, or eliminating, certain debts. This can help people who are struggling with overwhelming debt to stop debt collectors from contacting them, get rid of their legal obligation to pay off their debts, and prevent the termination of their utility services.

Types of Bankruptcy for individuals

There are two main types of bankruptcy: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy is the most common type of bankruptcy. It is a liquidation bankruptcy, which means that you will sell off most of your assets in order to pay off your creditors. If you have enough equity in your home or other assets, you may be able to keep them, but you will have to pay off the debt that is secured by those assets.

Chapter 13 bankruptcy is a reorganization bankruptcy. This means that you will create a repayment plan that allows you to pay off your debts over a period of time. You will be able to keep your assets, and you will not have to pay off as much of your debt as you would in a Chapter 7 bankruptcy.

Chapter 13 bankruptcy can be a good option for people who have a steady income and who are able to make regular payments. It can also be a good option for people who want to keep their assets.

Debts That Can Be Discharged in Bankruptcy

Not all debts can be discharged in bankruptcy. Some of the debts that cannot be discharged include:

* Tax debt
* Child support
* Alimony
* Student loans
* Debts that were incurred through fraud or intentional injury

Impact of Bankruptcy on Credit Score

Bankruptcy can have a negative impact on your credit score. The length of time that the bankruptcy will stay on your credit report will depend on the type of bankruptcy you file. A Chapter 7 bankruptcy will stay on your credit report for 10 years, while a Chapter 13 bankruptcy will stay on your credit report for 7 years.

When to Consider Bankruptcy

Bankruptcy is a serious decision, and it should not be taken lightly. If you are considering bankruptcy, it is important to speak with an experienced bankruptcy attorney to determine if it is the right option for you.

Conclusion

Declaring bankruptcy can be a helpful tool for people who are struggling with overwhelming debt. However, it is important to understand the implications of bankruptcy before you file. This blog post has provided you with some basic information about bankruptcy, but it is not a substitute for legal advice. If you are considering bankruptcy, you should speak with an experienced bankruptcy attorney to get the best possible advice.

Here are some additional things to keep in mind when considering bankruptcy:

* Bankruptcy will stay on your credit report for up to 10 years.
* You may have difficulty getting a loan or a job after filing for bankruptcy.
* You may have to pay taxes on any debt that is discharged in bankruptcy.

#declaring bankruptcy, #bankruptcy, #regolaw, #Alfred R Rego Jr, #Rego & Rego

Landlord's Return Of Security Deposits.

Landlord's return of security deposits.

In Rhode Island, a landlord who fails to comply with the law concerning the return of a security deposit within twenty days can be be assessed a damage payment of twice the amount illegally withheld plus attorneys fees. R.I.G.L. 34-18-19.requires the security deposits be returned within twenty days "after" the tenant gives proper notice, moves out, returns the key and provides a forwarding address.

When returning the deposit, the landlord must send the tenant an itemized notice listing any legal deductions withheld. These deductions can be for unpaid - outstanding rent and physical damages other than ordinary wear and tear.

A tenant's failure to provide a forwarding address or providing notice that he or she is vacating will be argued by the landlord in defense of punitive damages. When does the twenty day notice period begin? When did the landlord become aware that the tenant vacated? Written notice is important!

Regardless, the security deposit after deducting for damage and back rent, has to be returned.

In short, if a tenant fails to provide notice or a forwarding address, he or she will forfeit any right to recover statutory damages and attorneys fees from their landlord.

Estate Planning Mistakes

To ignore estate planning for small estates can be a huge mistake. A small estate may not incur estate taxes, but we all will incur funeral costs, medical expenses, loan and credit card debt obligations, state and local taxes and administration fees that are applied during estate settlement.

Debt concerns can include a mortgage, car loans, unpaid school loans and recurring bills. Failure to plan can result in liquidation of assets, sometimes at a discount to cover obligations. Modest estates can pose planning challenges because liquidity may not be there.

Some planning tools to consider:

• joint ownership
• beneficiary designation
• Will
• Living Trust
• Durable Power of Attorney
• Life Insurance
• Long Term Care Insurance
• Reverse Mortgage (if over age 62)

Some issues everyone should address:

• avoid family disputes - Will and/or trust considerations
• plan of succession - who gets what and when
• election of executor and/or guardian for minor children
• update beneficiary designations on policies and joint accounts or accounts of convenience
• life, disability and long term insurance considerations


Making sure all family members understand your wishes can go a long way in preventing post-death battles and hurt feelings. Just as important, you should review your estate plan every few years or when significant changes occur. Just as important the above considerations have to be coordinated in order to void inconsistencies.