RI Property Distinctions

Question 1

What mortgage theory does RI follow?

Answer 1

Rhode Island follows title theory of mortgages. A mortgage receives legal title to the property subject to defeasance upon payment of the debt.

Question 2

What is an open-ended mortgage?

Answer 2

It allowed the borrower to go back to the lender for more money and increase the indebtedness.

Question 3

Are open-ended mortgages allowed in RI?

Answer 3

Yes but the debtor must sign a written agreement evidencing all future advances.

Question 4

RI: what is the test for determining if a foreclosure sale should be annulled?

Answer 4

(a) The sale price alone does not invalidate a foreclosure sale.
(b) Price inadequacy coupled with other indications that the sale was unfair (mistake, surprise, etc.) may justify annulment of the sale.
(c) The test is whether the sale shocks the conscious.

Question 5

RI: if a foreclosure sale is set aside, what remedy?

Answer 5

The judge attempts to restore the parties to their former position. The mortgagor is entitled to damages suffered as a proximate result of the sale. The mortgagee is entitled to recover the principal, interest, and foreclosure expenses.

Question 6

RI: rule for creating tenancy by the entirety

Answer 6

(1) by express language
(2) requires valid marriage
(3) unity of time NOT required

Question 7

RI: what effect does a tenancy by the entirety have on creditors?

Answer 7

The property is subject to attachment but NOT levy and sale on execution.