- March 07, 2012
- All Rhode Island Issuing Offices
- Rhode Island Withholding Lien
One of the biggest hazards in
If a seller is a
"This transfer is such that no R.I.G.L. 44-30-71.3 withholding is required as sellers are residents of
Where a conveyance is a gift, the language would read:
"This transfer is by gift so that no documentary stamps are required and no R.I.G.L. 44-30-71.3 withholding is required."
Where a seller is a non-resident, the prescribed percentage of the seller’s net proceeds is withheld and remitted to the R.I. Division of Taxation within three banking days along with the prescribed remittance form. The buyer must then obtain an Acknowledgment of Discharge of Lien from the R.I. Division of Taxation and record the same in the appropriate Land Evidence Records located in the thirty-nine cities and towns. Otherwise, the lien expires ten years from the date of the deed and is subordinate to any purchase money mortgage executed by the buyer. Consequently, the lien is extinguished by any foreclosure of the purchase money mortgage.
There are various withholding situations dependent on the type of seller or grantor involved in a
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