2018 -- H 7564

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LC004576

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM LAW--RESALE OF UNITS

     

     Introduced By: Representatives Marshall, Edwards, O'Brien, and Casey

     Date Introduced: February 09, 2018

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-36.1-4.09 of the General Laws in Chapter 34-36.1 entitled

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"Condominium Law" is hereby amended to read as follows:

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     34-36.1-4.09. Resale of units.

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     (a) Except in the case of a sale where delivery of a public offering statement is required,

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or unless exempt under ยง 34-36.1-4.01(b), a unit owner shall furnish to a purchaser before

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execution of any contract for sale of a unit, or otherwise before conveyance, a copy of the

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declaration (other than the plats and plans), the bylaws, the rules or regulations of the association,

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and a certificate containing:

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     (1) A statement disclosing the effect on the proposed disposition of any right of first

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refusal or other restraint on the free alienability of the unit;

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     (2) A statement setting forth the amount of the monthly common expense assessment and

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any unpaid common expense or special assessment currently due and payable from the selling

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unit owner;

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     (3) A statement of any other fees payable by unit owners;

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     (4) A statement of any capital expenditures anticipated by the association for the current

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and two (2) next succeeding fiscal years;

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     (5) A statement of the amount of any reserves for capital expenditures and of any

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portions of those reserves designated by the association for any specified projects;

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     (6) The most recent regularly prepared balance sheet and income and expense statement,

 

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if any, of the association;

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     (7) The current operating budget of the association;

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     (8) A statement of any unsatisfied judgments against the association and the status of any

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pending suits in which the association is a defendant;

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     (9) A statement describing any insurance coverage provided for the benefit of unit

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owners;

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     (10) A statement as to whether the executive board has knowledge that any alterations or

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improvements to the unit or to the limited common elements assigned thereto violate any

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provision of the declaration;

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     (11) A statement as to whether the executive board has knowledge of any violations of

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the health or building codes with respect to the unit, the limited common elements assigned

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thereto, or any other portion of the condominium; and

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     (12) A statement of the remaining term of any leasehold estate affecting the

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condominium and the provisions governing any extension or renewal thereof.

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     (b)(1) The association, within ten (10) days after a request by a unit owner, shall furnish a

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certificate containing the information necessary to enable the unit owner to comply with this

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section. A unit owner providing a certificate pursuant to subsection (a) is not liable to the

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purchaser for any erroneous information provided by the association and included in the

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certificate.

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     (2) The association may require a unit owner to pay a fee that does not exceed one

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hundred twenty-five dollars ($125) to prepare and provide an electronic version or physical

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version of the resale certificate.

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     (3) Any association that fails to provide a certificate to the unit owner within ten (10)

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days of a written request by the unit owner is subject to a civil penalty of not less than one

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hundred dollars ($100) nor more than five hundred dollars ($500) per occurrence.

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     (4) A unit owner providing a certificate pursuant to subsection (a) of this section is not

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liable to the purchaser for any erroneous information provided by the association and included in

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the certificate.

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     (c) A purchaser is not liable for any unpaid assessment or fee greater than the amount set

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forth in the certificate prepared by the association. A unit owner is not liable to a purchaser for

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the failure or delay of the association to provide the certificate in a timely manner, but the

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purchaser contract is voidable by the purchaser until the certificate has been provided and for five

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(5) days thereafter or until conveyance, whichever first occurs.

 

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM LAW--RESALE OF UNITS

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     This act would impose a penalty on a condominium association for failing to deliver a

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resale certificate within ten (10) days of a request by a unit owner, and would establish a

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maximum fee of one hundred twenty-five dollars ($125) for compiling a resale certificate.

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     This act would take effect upon passage.

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LC004576

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