2012 -- S 2499 AS AMENDED

=======

LC01275

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - REAL ESTATE SALES

DISCLOSURES

     Introduced By: Senator Michael J. McCaffrey

     Date Introduced: February 16, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 5-20.8-4 of the General Laws in Chapter 5-20.8 entitled "Real

1-2

Estate Sales Disclosures" is hereby amended to read as follows:

1-3

     5-20.8-4. Buyer's rights. -- Buyer's rights to inspection. -- (a) Every contract for the

1-4

purchase and sale of real estate shall provide that a potential purchaser or potential purchasers

1-5

shall be permitted a ten (10) day period, exclusive of Saturdays, Sundays and holidays to conduct

1-6

inspections of the property and any structures thereon before the purchaser(s) becomes obligated

1-7

under the contract to purchase. The parties have the right to mutually agree upon a different

1-8

period of time; provided, a potential purchaser may waive this right to inspection in writing.

1-9

     (b) Failure to include the provision required in subsection (a) of this section in the

1-10

purchase and sale agreement for real estate does not create any defect in title.

1-11

     (c) Failure to include in the purchase and sale agreement the provision required in

1-12

subsection (a) of this section shall entitle the purchaser to void the purchase and sale agreement

1-13

by providing notice, in writing, to the seller prior to the transfer of the title at a closing.

1-14

     (a) If prior to the execution of an agreement to transfer, but after the seller has agreed to

1-15

the buyer's offer, the buyer discovers that a materially deficient condition exists which has not

1-16

been disclosed to the buyer, then the seller's response to the buyer's offer is deemed to be a

1-17

counter offer which the buyer may either accept or reject.

1-18

      (b) If prior to closing but after execution of an agreement to transfer, the buyer discovers

1-19

that a materially deficient condition exists which has not been disclosed to the buyer, then the

2-1

buyer may either elect to:

2-2

      (1) Terminate the agreement to transfer in which case the buyer shall receive all deposits

2-3

paid by the buyer to the seller or his or her agent pursuant to the agreement; or

2-4

      (2) Allow the seller the opportunity to cure such deficient condition, in which case the

2-5

buyer must provide the seller with a report of inspection performed by a recognized and reputable

2-6

inspector or inspection company, within seven (7) calendar days after the buyer has obtained a

2-7

copy of the inspection report, and the seller shall be given seven (7) calendar days after receipt of

2-8

the report to notify the buyer, in writing, that the seller agrees, at the seller's own expense, to

2-9

correct the defective condition. If the seller does not so agree, the buyer may terminate the

2-10

agreement to transfer and the buyer shall receive all deposits paid by the buyer to the seller or his

2-11

or her agent pursuant to the agreement.

2-12

      (c) Where the inspection set forth in subsection (b) of this section is performed in

2-13

accordance with a provision in the agreement to transfer, and there is a delay in the receipt of the

2-14

inspection report due solely to the inspector's inability to complete the inspection, the inspection

2-15

completion date set forth in the agreement shall be extended for a reasonable time not to exceed

2-16

seven (7) calendar days. The inspector shall provide the buyer with an explanation of the delay,

2-17

which shall be made available to the seller.

2-18

     SECTION 2. This act shall take effect on January 1, 2013.

=======

LC01275

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - REAL ESTATE SALES

DISCLOSURES

***

3-1

     This act would provide that contracts for the purchase and sale of real estate would have

3-2

to provide that potential purchaser(s) would be permitted a ten (10) day period to conduct an

3-3

inspection of the property before the purchaser becomes obligated under the contract to purchase.

3-4

     This act would take effect on January 1, 2013.

=======

LC01275

=======