Detailed answer — how Rhode Island law treats a co-tenant’s refinancing or home equity loan

When you inherit real property in Rhode Island with one or more other people, you typically hold the property as co-owners. The most common arrangement for inherited property is tenancy in common (each person owns an undivided fractional interest). The deed or probate paperwork will show whether ownership is joint tenancy or tenancy in common — check the recorded deed or probate documents first.

Key legal principles that apply in Rhode Island:

• Each co-owner controls only their own interest. A co-tenant can generally mortgage or pledge their own fractional interest, but they cannot unilaterally encumber the entire property or the other owners’ interests without those owners’ signatures. A mortgage signed by only one co-tenant creates a lien on that co-tenant’s share, not a clear lien on the whole title.
• Lenders often require all owners to sign. In practice, most responsible lenders require every person with record title to sign a mortgage or deed of trust covering the property before making a home-equity loan or a refinance. If a lender fails to obtain all required signatures, the lender’s remedies may be limited to the borrowing owner’s interest, and the loan can create a cloud on title that you must clear.
• Foreclosure or forced sale risks. A lender that validly obtains a mortgage on a co-tenant’s fractional interest may be able to foreclose on that interest. In some circumstances a foreclosure sale can result in sale of the whole property or lead to a market buyer who becomes sole owner subject to equitable interests — which can effectively force the other co-owners to take a cash buyout or be displaced. You can respond by asserting your rights in court.
• Partition and other remedies under Rhode Island law. Rhode Island law provides procedures for co-owners to divide or sell property through a partition action. If a co-tenant’s borrowing creates a dispute that cannot be resolved, you can ask the court for partition or other relief. See the Rhode Island statutes on partition: RI Gen. Laws, Title 34, Chapter 7 (example: partition actions) — https://webserver.rilegislature.gov/statutes/title34/34-7/34-7-1.htm and the Title 34 index: https://webserver.rilegislature.gov/statutes/title34/

Typical Rhode Island outcomes depending on facts:

• If the co-tenant properly signed a mortgage that included only their share, the lender may only be able to foreclose on that share. You would keep whatever legal protections apply to your undisturbed interest, but the mortgage could still cloud title and make selling or refinancing harder.
• If the co-tenant somehow forged or misstated ownership to obtain a mortgage covering the whole property (rare, because lenders usually require title insurance and title searches), you can sue to cancel the instrument, seek a quiet-title action, and demand damages. That is an actionable fraud or quiet-title claim in court.
• If the dispute cannot be resolved, a Rhode Island court can order partition (division of the land if feasible) or a sale with division of proceeds after paying liens and expenses. See partition statute: https://webserver.rilegislature.gov/statutes/title34/34-7/34-7-1.htm

Because outcomes depend heavily on the exact documents and recordings, get a title search and a lawyer’s review immediately if you suspect a co-tenant has borrowed against the property without your consent.

Relevant Rhode Island statute (example)

For partition remedies in Rhode Island, see the partition statute: RI Gen. Laws, Title 34, Chapter 7 — https://webserver.rilegislature.gov/statutes/title34/34-7/34-7-1.htm. For the general organization of property law in Rhode Island, see Title 34 index: https://webserver.rilegislature.gov/statutes/title34/

Practical steps to protect your rights

1. Check the recorded documents. Look up the deed, any recorded mortgage, and the chain of title at the county registry of deeds (online or in person). A recorded mortgage will show who signed and what interest was encumbered.
2. Request copies from the lender and co-tenant. Ask for the loan documents and closing statements in writing. A reputable lender will provide documents to a co-owner shown on title or upon legal demand.
3. Freeze or stop a pending sale or foreclosure. If a foreclosure sale is scheduled, contact an attorney immediately about emergency relief (a temporary restraining order or lis pendens) to protect your interest.
4. Consider a partition or quiet-title action. If you cannot resolve the matter by agreement, Rhode Island courts allow partition or quiet-title actions to clear the dispute and distribute proceeds after liens are resolved.
5. Document communications. Keep written records of all communications with the co-tenant and the lender. Send a written demand that the co-tenant produce loan documents and explain the transaction.
6. Talk to a Rhode Island real-estate attorney. Title problems, alleged fraud, and foreclosure timing require an attorney familiar with Rhode Island property law and local registries.

Helpful hints

• Before you agree to co-own anything, get a written co-ownership agreement that sets rules for encumbrances, sales, and expense sharing.
• Obtain title insurance when you inherit or buy out co-owners; it helps against certain title defects and fraudulent claims.
• Monitor the land records for your property periodically so you quickly catch any recorded mortgages or liens.
• If a co-tenant claims the lender obtained all necessary signatures, compare the lender’s recorded mortgage with the deed and signatures on file; mismatches may prove improper conduct.
• Act fast. Once a foreclosure sale occurs, remedies and recoveries change significantly and become more complicated.