An Rhode Island residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Rhode Island Have To Disclose Property Defects?
Rhode Island does require real estate sellers to disclose any material defects with a property. In most cases, this is through a standardized disclosure form provided by statute, but any disclosure which provides the required information is valid.
By mutual agreement, it may be possible to waive the use of a standard form and handle required disclosures another way. However, the seller always has a duty to disclose all material defects that are not obvious on a casual inspection of the property, even if the buyer agrees to take the property “as-is.”
The basic duty to disclose cannot be waived under any circumstances, unless the sale falls under a recognized legal exemption. Rhode Island exempts the following common transfers, among others, from the disclosure form requirement:
- Court-ordered sales and transfers
- Sales by foreclosure or other debt default
- Transfer as part of the execution of a will or estate
- Transfer to a spouse, parent, or child
- Transfers to or from a government entity
Required Seller Disclosures in Rhode Island
Rhode Island sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Real Estate Sales Disclosure Form: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property. A seller must disclose ALL the information mentioned in the statute.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
- Mandatory Real Estate Relationship Disclosure: Used in sales involving the services of a licensed real estate specialist, this disclosure covers the specialist’s nature and qualifications.
Sources
- 1 R.I. Gen. Laws § 5-20.8-2(a) & (b)(1)
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(a) As soon as practicable, but in any event no later than prior to signing any agreement to transfer real estate, the seller of the real estate shall deliver a written disclosure to the buyer and to each agent with whom the seller knows he or she or the buyer has dealt in connection with the real estate. The written disclosure shall comply with the requirements set forth in subsection (b) and shall state all deficient conditions of which the seller has actual knowledge. The agent shall not communicate the offer of the buyer until the buyer has received a copy of the written disclosure and signed a written receipt of the disclosure. If the buyer refuses to sign a receipt pursuant to this section, the seller or agent shall immediately sign and date a written account of the refusal. The agent is not liable for the accuracy or thoroughness of representations made by the seller in the written disclosure or for deficient conditions not disclosed to the agent by the seller.
(b)(1) The Rhode Island real estate commission shall approve a form of written disclosure for vacant land and a form of written disclosure for the sale of real property and improvements consisting of a house or building containing one to four (4) dwelling units as required under this chapter or the seller may use a disclosure form substantially conforming to the requirements of this section. The following provisions shall appear conspicuously at the top of any written disclosure form: “Prior to the signing of an agreement to transfer real estate (vacant land or real property and improvements consisting of a house or building containing one to four (4) dwelling units), the seller is providing the buyer with this written disclosure of all deficient conditions of which the seller has knowledge. This is not a warranty by the seller that no other defective conditions exist, which there may or may not be. The buyer should estimate the cost of repair or replacement of deficient conditions prior to submitting an offer on this real estate. The buyer is advised not to rely solely upon the representation of the seller made in this disclosure, but to conduct any inspections or investigations the buyer deems to be necessary to protect his or her best interest.” Nothing contained in this section shall be construed to impose an affirmative duty on the seller to conduct inspections as to the condition of this real estate.
Source Link - 2 R.I. Gen. Laws § 5-20.8-3
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The following transfers are exempt from the provisions of this chapter:
(1) Transfer pursuant to a court order, including, but not limited to, transfer ordered by a probate court in administration of an estate, transfer pursuant to a writ of execution, transfer by a trustee in bankruptcy, transfer by eminent domain, and transfer resulting from a decree for specific performance;
(2) Transfer to a mortgagee by a mortgagor or pursuant to a foreclosure sale, or transfer by a mortgagee who has so acquired the real estate;
(3) Transfer by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust;
(4) Transfer from one co-owner to one or more other co-owners;
(5) Transfer made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
(6) Transfer between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to that decree;
(7) Transfer from any governmental entity;
(8) Transfer of any new unoccupied dwelling unit from a builder or developer;
(9) Transfer by a relocation company; and
(10) Transfer of title with no consideration.
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