Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 40 - Division of Municipal Finance
Subchapter 00 - N/A
Part 2 - Rules and Regulations for the Implementation of the Triennial Updates and Revaluations to Commence in the Year 2000 (280-RICR-40-00-2)
Section 280-RICR-40-00-2.8 - Monitoring Sales Activity

A. It is necessary for the validity of the assessment/sales ratio that all sales be analyzed carefully. Therefore, the assessor should first obtain as much information as possible about the circumstances of each sale. They need to ascertain if the sale was a true "arms-length" transaction, and that the price paid was the true price. If the price included anything such as discounted and/or non-market financing arrangements, personal property or other items; then the sales price should be adjusted to take these things into account. Local real estate brokers and detailed questionnaires sent to buyers and/or sellers are useful tools to help determine the true market value for a property. Whenever possible, all sold properties should be inspected. This will enable the assessor to verify existing data, monitor property renovations and identify market trends within the community.

B. Once the arms-length sales have been identified and verified, the assessor should perform a statistical analysis to determine both the assessment/sales ratio and the uniformity of assessments. During the triennial property update, all sales that have occurred since the last revaluation and/or property valuation update should be analyzed.