The Rhode Island residential real estate purchase agreement (“purchase and sale agreement”) allows a buyer and seller to enter into a legally binding contract for real property. The main terms of the agreement consist of a purchase price, down payment, and the financing terms (if any).
The parties may also enable the agreement to be subject to contingencies, for any agreed-upon terms. Once the form has been signed by both parties, each shall have the duty of specific performance to complete their end of the deal in order to facilitate a closing.
Required Seller Disclosures in Rhode Island
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In Rhode Island, sellers are required to complete a real estate purchase agreement and are urged to complete the following disclosure statement for an agreement to be considered legally binding: