§ 9-26-4.1. Homestead estate exemption.
(a) In addition to the property exempt from attachment as set forth in § 9-26-4, an estate of homestead to the extent of five hundred thousand dollars ($500,000)
in the land and buildings, or personal property that the owner uses as a residence,
may be acquired pursuant to this section by an owner of a home or an individual who
rightfully possesses the premises by lease, as a life tenant, as a beneficiary of
a revocable or irrevocable trust or otherwise, and who occupies or intends to occupy
the home as his or her principal residence. The estate of homestead provided pursuant
to this section shall be automatic by operation of law, and without any requirement
or necessity for the filing of a declaration, a statement in a deed, or any other
documentation. The estate shall be exempt from the laws of attachment, levy on execution,
and sale for payment of debts or legacies, except in the following cases:
(1) Sale for taxes, sewer liens, water liens, lighting district assessments, and fire
district assessments;
(2) For a debt contracted prior to the acquisition of the estate of homestead;
(3) For a debt contracted for the purchase of the home;
(4) Upon an order issued by the family court to enforce its judgment that a spouse pay
a certain amount weekly or otherwise for the support of a spouse or minor children;
(5) Where a building or buildings are situated on land not owned by the owner of a homestead
estate are attached, levied upon or sold for the ground rent of the lot upon which
the building or buildings are situated;
(6) For a debt due to, or a lien in favor of, the department of human services and/or
the state of Rhode Island for reimbursement of medical assistance, as provided for
in § 40-8-15;
(7) For a debt heretofore or hereafter owing to a federally insured deposit-taking institution
or a person regulated or licensed under title 19.
(b) For the purposes of this section, "owner of a home� includes a sole owner, lessee
(but only a lessee who or that was the owner of a home prior to a transfer to the
lessor), joint tenant, tenant by the entirety, or tenant in common; provided, that
only one individual may acquire an estate of homestead in the home for the benefit
of his or her family; and provided further, that an estate of homestead may be acquired
on only one principal residence for the benefit of a family. For the purposes of this
section, "family� includes either a parent and child or children, a husband and wife
and their children, if any, or a sole owner. The provisions of this section shall
not apply to any debt owing to a regulated institution, a debt secured by a mortgage
or other voluntary lien on a home, or a mechanics' lien on the property comprising
the estate as provided for under chapter 28 of title 34. Notwithstanding any other provisions of law, it shall not be necessary to record
a declaration of homestead in order to take advantage of the homestead estate exemption.
(c) An estate of homestead shall be subordinate to a mortgage encumbering the home that
was signed by all the owners of the home at the time of execution of said mortgage.
A mortgage executed by fewer than all of the owners of a home that is subject to an
estate of homestead shall be superior only to the homestead estate of the owners who
are parties to the mortgage and their non-titled spouses and minor children, if any.
(d) For purposes of this chapter, a mortgage shall include an instrument granting a security
interest in a manufactured home or cooperative housing unit. The subordination shall
not require the signature of a spouse who is not an owner. No statement that a homestead
estate shall be subordinate to the mortgage shall be required in the mortgage instrument
and nothing contained in a mortgage or any document executed in connection with the
mortgage shall affect or be construed to create, modify, or terminate a homestead
estate, other than to subordinate it to the mortgage as aforesaid. A mortgage lender
shall not require or record a release of homestead in connection with the making and
recording of a mortgage.