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.
Do Sellers in Rhode Island Have to Disclose Property Defects?
Rhode Island does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Rhode Island
Along with any material defects with the property, sellers in Rhode Island will also need to provide the following:
- Real Estate Sales Disclosure Form. All sellers must complete this document and give it to the buyer before agreeing to sell the property.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
- Mandatory Real Estate Relationship Disclosure. For sales involving the services of a licensed real estate specialist, the real estate specialist must be clarified.
