Articles Posted in Real Estate

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When a city or municipality assesses an unfairly high tax on your property, you may be unsure what to do next. Instead of ignoring the problem, it is important to act as soon as possible. In Rhode Island, a plaintiff must challenge tax assessment claims within the time specified under a statute of limitations. This term refers to a legally imposed time limit to file a claim. Recently, the Rhode Island Supreme Court determined whether the appropriate statute of limitations in a tax assessment challenge was three months or ten years, only one of which would allow the plaintiff’s claim to go forward.

The corporate plaintiff in the case, Newport and New Road, LLC (“Newport”) filed a petition in the Rhode Island Superior Court against the tax assessor of the City of East Providence. The petition alleged that the defendant conducted an illegal property-tax assessment in 2012 and an excessive tax assessment in 2013. The City argued that Newport’s claim fell beyond the required three-month statute of limitations. Conversely, Newport claimed it could sue within ten years of the defendant’s assessments based on a separate statute from the one that carried a three-month time limit. The Superior Court agreed with the City, holding that the three-month statute of limitations barred Newport from suit. On appeal, Newport argued that the lower court erred in applying the three-year statute of limitations. Instead, Newport asserted that the proper statute of limitations for its tax assessment claim is ten years, the time limit that generally applies to civil actions in Rhode Island. Additionally, Newport argued that the statute did not reference the three-month statute of limitations, meaning the court should have interpreted the “silent” statute as imposing the standard ten-year limit.

Based on its own statutory interpretation, the Rhode Island Supreme Court affirmed the lower court’s decision in favor of the City. While the specific section of the statute at issue did not specify a time limit, it unambiguously referenced other sections that imposed three-month filing deadlines. The court explained that Newport’s interpretation would ignore the general requirement to interpret a statute in its entirety rather than reading each section in isolation. Additionally, the three-month statute of limitations reflected legislative intent to resolve tax assessment disputes as quickly as possible. Based on the entire statute and the clear language of the section at issue, the court found that Newport’s challenges to its tax assessments were untimely due to the three-month statute of limitations that applied. This case illustrates that people or businesses that believe they have received an unfair tax assessment should file their case as soon as possible. An experienced Rhode Island real estate and tax lawyer can help you understand the applicable statute of limitations and file your case far ahead of the time limit.

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Adverse possession is a legal doctrine that can be used in Rhode Island to allow a trespasser or squatter to take legal title to a piece of real property after openly possessing and using the land for a certain period of time. Claims of adverse possession are often used to resolve disputes between neighboring property owners who may not have been complying with the officially surveyed property boundaries. The Rhode Island Supreme Court recently ruled in favor of a man who owned property adjacent to a cemetery and had been using portions of the cemetery’s land for his own purposes for several decades.

The appellant in the recently decided appeal is a man who owned property adjacent to the plaintiff’s land since inheriting it from his father. According to the facts discussed in the appellate opinion, the appellant had witnessed and been involved in the use of two parcels of land adjacent to his family’s plot, which was technically owned by the cemetery. Since the appellant could remember, his family used and maintained the two plots of land as if they were the rightful owners. Specifically, one of the land plots had been used for storing scrap metal and vehicles for nearly 30 years. The other portion of land had been maintained and landscaped by the appellant and his family for over ten years.

The owners of the cemetery filed an action in Rhode Island state court against the appellant in 2018, alleging that his use of the two plots of land was an unlawful trespass and requesting that the Court order the appellant to cease use of the property and remove the trespassing structures and other items. The appellant responded to the lawsuit, alleging that he and his family are entitled to ownership of the disputed parcels under the doctrine of adverse possession.

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The unique and evolving needs of a robust industrial economy may lead to disputes over land use between neighboring property owners. Rhode Island zoning laws, and their application by state administrative and judicial bodies, are designed to fairly and effectively balance these competing interests to support local economies while preserving property owners’ rights to the enjoyment and use of their property. The Rhode Island Superior court recently affirmed a local zoning board’s decision to permit the expansion of a building within a shipyard and enable the owners to more efficiently construct large vessels needed to service offshore wind farms.

The defendants in the recently decided case include a shipyard owner, as well as the members of the local zoning board of the town of Warren, Rhode Island. According to the facts discussed in the court’s written ruling, the shipyard owner had applied to the town zoning board for a dimensional use variance, which would permit the shipyard to expand an existing building to increase the yard’s ability to fulfill new contracts for large industrial vessels. The town zoning board held public hearings on the shipyard owner’s request, where a neighboring property owner objected to the proposal. The neighboring property owner argued that the expansion was unnecessary, and would lead to increased traffic and noise around their own property.

The town council unanimously approved the shipyard owner’s application, finding that the requested permits were necessary for the owner’s business and that the objecting property owner’s contentions lacked merit. The adjacent property owner appealed the administrative ruling to the Superior Court, arguing that the zoning board’s decision was not made in accordance with the law. On appeal, the court described the factors that are used to justify the type of variance requested by the shipyard owner and found that the factors were properly considered by the zoning board. Based on the ruling by the Superior Court, the proposed building expansion will be allowed to proceed.

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If a Rhode Island property owner fails to pay their bills (mortgage, tax, utility, etc.), they may be subject to the foreclosure of the property, and they may lose title and ownership permanently. In the event of a foreclosure, the original owner does have a right to redeem their nonpayment by asking the court to set a fair price for the redemption to occur and the foreclosure to be vacated. Although it is generally cheaper for a property owner to simply pay their bills rather than wait for an opportunity to redeem a property, the right of redemption exists to protect owners who may have been negligent in the past from losing their property entirely. The Rhode Island Supreme Court recently reversed a trial court decision that permitted the owner to redeem ownership of the property.

The Respondent in the recently decided case purchased a property in Providence in 2009. As a result of unpaid taxes, the city of Providence took possession of the property and sold it at auction to the Petitioner. Acting within the standard procedure, the Petitioner filed an action to foreclose on the Respondent’s property rights in the Superior Court. Under state law, the Respondent had 20 days to answer the petition and make an offer to redeem the property. The Respondent filed an answer to the petition within the 20-day period, however, the answer contained no offer or request to redeem the property. Because the Respondent’s answer contained no offer to redeem the property, the Petitioner requested that the court enter a final order foreclosing on the Respondent’s right to redeem the property.

The state court rejected the petitioner’s request, instead allowing the Respondent to amend their answer to include a redemption offer. As a result of the ruling, a redemption figure was set, the Respondent began to take action to redeem the property, and the Petitioner appealed the ruling to the state Supreme Court. On Appeal, the Petitioner argued that the statute setting the 20 day deadline for making an offer to redeem a property establishes a mandatory deadline, which cannot be extended by allowing a party to amend their court pleadings. The Supreme Court agreed with the Petitioner, ruling that the redemption statute must be strictly construed, and absolutely requires any person seeking to redeem the property to make an offer to redeem the property within the statutory timeframe. Because the Respondent failed to timely make an offer to redeem the property, the law must be applied as written, and the Respondent will not be able to regain ownership of the property.

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Bilodeau Capalbo was engaged to handle an appeal of the decision from a RI Superior Court Adverse Possession trial. Bilodeau Capalbo was not trial counsel in this matter and were engaged to handle the appeal only.  Bilodeau Capalbo partner Ryanna Capalbo successfully argued the RI Supreme Court appeal on behalf of the Defendants. Contact Bilodeau Capalbo for all of your Real Estate needs in RI, MA & CT. Reads the Supreme Court Opinion by clicking the link – Union Cemetery v Foisy Supreme Ct Opinion #adversepossession #rirealestate

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Most buyers of real estate in Rhode Island are well aware of the risks involved in purchasing property in the state. The seller of property does have obligations to notify a buyer of known defects, as well as to not defraud a buyer by knowingly misrepresenting the characteristics or conditions of a property, but the primary risk lies with the buyer. Title insurance helps to alleviate the risks of a dispute over ownership or property boundaries, and buyers are encouraged to have thorough property inspections prior to entering into a purchase contract. Even when all precautions are taken, the purchaser of a property may learn that there are significant problems or defects with the property, which sometimes leads them to pursue legal action against the seller. The Rhode Island Supreme Court recently addressed a case that was filed by the buyer of commercial property in Rhode Island, which alleged that the seller failed to disclose the presence of harmful asbestos roofing tiles, which were time-consuming and expensive to remove.

The plaintiff in the recently decided case purchased a commercial property from the defendant in 2012. Shortly after completing the purchase, the plaintiff discovered that the property contained a significant amount of asbestos, which would need to be removed before he could continue using the property. The plaintiff sued the defendant in an attempt to recover damages. As part of the lawsuit, the plaintiff was required to disclose any experts that he would call to testify about the issues in the case. The plaintiff’s attorney failed to meet the deadline set by the court for expert disclosure, and the defendant attempted to have the case dismissed. The court allowed the plaintiff one more chance to disclose the experts he would use, after which the plaintiff only successfully disclosed one witness. The witness disclosed by the plaintiff was a general contractor who did not claim to be an expert at asbestos or asbestos abatement. On the defense’s motion, the court entered judgment in favor of the defendant on all of the asbestos-related claims.

The plaintiff appealed the lower court ruling to the Rhode Island Supreme Court, arguing that the proposed witness had sufficient knowledge of the relevant areas of expertise to offer an opinion on the issue. The high court rejected the plaintiff’s arguments, ruling that the basic knowledge held by the plaintiff’s expert was not sufficient to meet the bar for the required expert testimony. The court found that the plaintiff’s witness was not a qualified expert, and the lower court had properly disposed of the plaintiff’s claims relating to the existence or removal of asbestos. As a result of the high court ruling, the plaintiff will be unable to recover any damages he has suffered b y addressing the undisclosed asbestos in the property he had purchased.

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Perhaps you have heard the story of a person moving into an abandoned property and living there for a certain time, and being able to take legal ownership of the property from the previous owner. This may sound like either a fantasy or a nightmare, depending on whose perspective we are seeing the situation from. Is it really possible for a trespasser to become a legal owner simply by refusing to leave the property? Squatter’s rights, stemming from a legal doctrine known as adverse possession, involve a legal concept that allows a person to claim ownership of a property that they have used and possessed without the owner’s permission for a certain period of time.

In Rhode Island, adverse possession is recognized under state law. To claim adverse possession in Rhode Island, the squatter must prove that they have continuously possessed the property openly, notoriously, and adversely for at least ten years and that they have paid all property taxes during that time. These requirements are designed to allow for a person who started off as a trespasser to demonstrate their ability and desire to productively possess and use a property that had been abandoned. The state has an interest in allowing squatter’s rights because the adverse possessor must pay taxes on the property, and often a property is improved significantly by an adverse possessor taking ownership.

In some situations, a property that appears abandoned may not be, and a rightful owner will be required to fight an adverse possession claim. A common example of this involves inherited property. When a large estate is divided, investment properties may be willed to heirs by a deceased benefactor. Properties that have fallen into disrepair can be easily ignored by the new owner, who may not have an immediate interest in addressing the maintenance or tax issues. Furthermore, an inherited property may be geographically distant from the new owner. If squatters move into a forgotten or ignored property, the owner may be risking losing the title to the property based on an adverse possession claim. There are methods to prevent an adverse possession claim from being viable.

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All residential, commercial, and industrial properties in the state of Rhode Island are subject to zoning and permit requirements. From homeowners seeking to renovate their homes to large industrial developers planning a project worth tens of millions of dollars, anybody seeking to break ground on a construction project may be subject to cumbersome zoning and permit issues. Knowing the basics of Rhode Island construction permits and RI zoning law can help residents of the state know when a possible issue could arise and when to seek compensation advice and representation when proposing development or construction.

Rhode Island’s zoning laws are relatively decentralized, giving towns and cities the ability to set their own requirements for certain types of construction in accordance with the municipalities’ general plans for development and preservation. There are several types of zoning classifications used by municipalities to encourage districts that include the desired type of development based on geography and other factors. Some of the types of zoning in the state include residential, commercial, downtown, waterfront, institutional, industrial, and public recreational properties.

Each of the zoning types may contain additional incentives and restrictions based on further subclassifications. A multi-family townhome may not be permitted on a property zoned for single-family occupancy. If a block is zoned for commercial use, that does not necessarily mean that a ten-story office building can be constructed. Rhode Island residents with questions about the zoning requirements of a certain piece of property can seek out legal advice from a qualified Rhode Island zoning attorney to answer their questions.

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The real estate market in Rhode Island can be volatile. Changes in supply or demand, investors’ speculation, and broader economic factors can result in sudden changes in the market. Because the real estate market is always in flux, real estate agents often have the incentive to publish the most desirable listings in order to secure customer interest and the highly sought-after sale. Like any advertiser, real estate agents have a responsibility to be honest in what they publish. Real estate agents who intentionally misrepresent the products they are advertising can be held both civilly and criminally accountable for fraud. In some instances, a real estate agent may share untrue information without knowing, and the consequences may not be as clear.

The Rhode Island Supreme Court has addressed the question of how real estate agents and brokers should be held to account for false or misleading information that a buyer relied on to make a purchase. A unique factor in the Rhode Island real estate market involves the use of MLS systems to organize listings among brokers. MLSs, or Multiple Listing Services, are databases prepared and managed by one or more real estate brokers to conveniently organize listings. The information obtained from an MLS may have been entered incorrectly, and real estate agents have a duty to confirm that the information they are using from an MLS is accurate.

If an agent fails to disclose a known defect in a home or even fails to confirm that the information in an MLS listing is accurate, the agent could be held accountable in state courts for negligence or even fraud. Rhode Island General Laws Title 5, Section 20.8 details the rights and duties of licensed real estate agents in the state. Provisions of the code permit both sellers and their agents to be held financially responsible for information that was not disclosed to the buyer under the requirements of the section. Determining whether an agent had “actual knowledge” of a defect can be a difficult task. If a seller misleads their agent into publishing inaccurate information, the agent may be able to avoid liability for the mistruth; however, the seller may be on the hook for the fraudulent misrepresentation.

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Generally speaking, the addition or construction of improvements on real property will change the value of the property and the resulting property tax burden to the owner of said property. State lawmakers and regulators have sometimes modified this general rule to encourage specific types of development by offering tax discounts or incentives. Considering the environmental and economic favorability of renewable energy projects, Rhode Island lawmakers have recently enacted changes to the state tax law as it applies to renewable energy projects, helping ensure that such projects are treated favorably by the tax code. The Rhode Island Supreme Court recently addressed a claim by a property owner which alleged that the plaintiff was overtaxed on their energy development in contravention of the recently passed laws.

The plaintiff in the recently decided case is a landowner who leased 10 acres of his Lincoln, RI property to a solar energy company for the construction of a solar energy project. After the project was completed, the assessed value of the plaintiff’s property increased by nearly $400,000, and the plaintiff’s tax burden increased significantly as a result. The plaintiff appealed the increased valuation to the municipal tax assessor and board of appeals, claiming that solar energy projects were tax-exempt under state law. The municipal defendants denied the plaintiff’s appeals, and the plaintiff brought the case to the Superior Court. The superior court affirmed the lower boards’ denial of the plaintiff’s claim. The court found that while the tax laws exempted solar energy projects from municipal taxation, the exemption does not apply to the property taxes for the land that the development was constructed upon.

The plaintiff appealed the Superior court ruling to the Rhode Island Supreme Court, where the lower court’s reasoning was upheld. The high court found that the law relied on by the plaintiff unambiguously mandated that only the tangible assets that form a renewable energy development are exempt from taxes. The plaintiff then pointed to a 2022 law that reclassified some real property containing renewable energy development as tax-exempt, however, the court was unable to apply the newer law, as the plaintiff’s claims arose under the law existing in 2019.

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