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REAL ESTATE TAXES EXPLAINED

Sellers of Real Estate

Selling a home is often a very stressful time and understanding your rights and responsibilities as outlined in the Purchase & Sales Agreement is critical to ensuring a smooth transaction.  Pursuant to the standard Rhode Island Purchase & Sales Agreement all transactions must be conveyed with clear and marketable title.  This conveyancing standard means that the sellers must cooperate with all parties in a closing to provide a deed and residency affidavit at closing.  Hiring an attorney as soon as you decide to sell your home will ensure that you are fully prepared with an understanding of the selling process.  The costs of representation can range from $375.00 - $950.00; depending on the circumstances.  For a free, no obligation quote, contact us today.

 

 

Frequently Asked Questions

 

Can a Power of Attorney be used?

 

Yes, in the event that a one or all Sellers are unable to attend the closing, then usually a properly appointed Power of Attorney can sign on their behalf at closing.   It will be expected however that the actual owners sign the Deed conveying ownership, as the appointed person is not generally allowed to sign that document, unless there are extenuating circumstances.

 

What are Tax Stamps?

 

When selling real estate in Rhode Island, all transaction have a real estate conveyance tax, pursuant to RIGL 44-25-1.  This payment is collected at closing and a portion of these funds are remitted to the State of Rhode Island and a portion is remitted to the local city or township.  The tax stamps are reflected on the face of the deed at the time of recording.

 

The rate of tax stamps as of 2017 is Two Dollars and Thirty cents per five hundred ($2.30/$500.00).  This cost is subject to change; so be sure to contact our office for the most current rates.

 

Out of State Seller Considerations:

 

When there is a sale of real estate by a non-resident then there is a withholding tax imposed by the State of Rhode Island,
pursuant to RIGL 44-30-71.3.


The imposed tax rate is 6% for individuals and 7% for corporations.  The law imposes an automatic lien on the property which impacts the title for the buyer therefore the closing attorney is responsible for confirming residency at closing, and remitting the withholding tax to the State, as may be applicable.

 

There are tax exemption opportunities that will allow out of state sellers to minimize and in some cases avoid the tax altogether, provided that the Rhode Island Division of Taxation has confirmed said exemptions, in advance of the closing.  Contact us today so that we can discuss your eligibility and prepare a tax filing for the Division of Taxation to review and approve, prior to your closing.

 

City/Town Tax Schedule
(Calendar/Fiscal)
Quarterly Due Dates
Barrington Calendar (Jan 1 - Dec 31) Sept./Dec./Mar./June 30th
Bristol Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 15th
Burriville Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Central Falls Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Charlestown Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 1st
Coventry Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 1st
Cranston Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Cumberland Calendar (Jan 1 - Dec 31) May/Aug./Nov./Feb. 15th
East Greenwich Calendar (Jan 1 - Dec 31) Sept./Dec./Mar./June 1st
East Providence Calendar (Jan 1 - Dec 31) May/Sept./Dec./Mar. 1st
Exeter Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 1st
Foster Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 15th
Glocester Calendar (Jan 1 - Dec 31) Sept./Nov./Feb./Apr. 15th
Hopkinton Calendar (Jan 1 - Dec 31) Sept./Dec./Mar./June 15th
Jamestown Fiscal (March 1 - Feb 28) May/Aug./Nov./Feb. 15th
Johnston Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Lincoln Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Little Compton Calendar (Jan 1 - Dec 31) Sept./Dec./Mar./June 15th
Middletown Fiscal (July 1 - June 30) Sept./Dec./Mar./June 15th
Narragansett Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1s
New Shoreham Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 15th
Newport Fiscal (July 1 - June 30) Aug./Nov./Feb./May 15th
North Kingstown Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
North Providence Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 15th
North Smithfield Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 15th
Pawtucket Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Portsmouth Fiscal (July 1 - June 30) Sept./Dec./Mar./June 15th
Providence Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Richmond Calendar (Jan 1 - Dec 31) Sept./Dec./Mar./June 15th
Scituate Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 1st
Smithfield Calendar (Jan 1 - Dec 31) Sept./Dec./Mar./June 15th
South Kingstown Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 1st
Tiverton Fiscal (July 1 - June 30 July/Oct./Jan./Apr. 1st
Warren Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 1st
Warwick Calendar (Jan 1 - Dec 31) July/Oct./Jan./Apr. 15th
West Greenwich Calendar (Jan 1 - Dec 31) Aug./Nov./Feb./May 15th
West Warwick Calendar (Jan 1 - Dec 31) July/Oct./Jan/Apr. 15th
Westerly Calendar (Jan 1 - Dec 31) July/Oct./Jan/Apr. 15th
Woonsocket Fiscal (July 1 - June 30 July/Oct./Jan/Apr. 15th

 

CONTACT US

Our staff is dedicated to completing your transaction,

contact us anytime.

 

Phone: 401-885-3800  •  Fax: 401-885-7122

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Attorneys:

Carmine D'Ellena, Esq.

Melissa D'Ellena, Esq.

Ralph Cuculo, Esq.

 

Pre-Closer:

Kerin Melton

 

Legal Assistant

Kia Quinn

Closing Paralegals:

Kristen Rathbun

 

 

Post Closing:

Tabitha Martineau

 

Accountant:

Peter Monti

 

The Rhode Island Supreme Court licenses all lawyers in the general practice of law, but does not license or certify any lawyer as an expert or specialist in any field of practice.  This web site is designed for general information only.  The information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer client relationship.

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