Chapter 04-600

2004 -- S 2081 SUBSTITUTE B

Enacted 08/05/04

A N A C T

RELATING TO REAL ESTATE SALES DISCLOSURES

Introduced By: Senator V. Susan Sosnowski

Date Introduced: January 14, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Section 5-20.8-2 of the General Laws in Chapter 5-20.8 entitled "Real

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

5-20.8-2. Disclosure requirements. -- (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 buyer and to each agent with whom seller knows he or she or 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. Agent shall not communicate the offer of buyer until buyer has received a

copy of the written disclosure and signed a written receipt of same. If 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 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 may approve a form of written

disclosure 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), seller is providing buyer with this written

disclosure of all deficient conditions of which seller has knowledge. This is not a warranty by

seller that no other defective conditions exist, which there may or may not be. Buyer should

estimate the cost of repair or replacement of deficient conditions prior to submitting an offer on

this real estate. Buyer is advised however not to rely solely upon the representation of seller made

in this disclosure, but to conduct any inspections or investigations which 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.

(2) The disclosure form shall include the following information:

(i) Seller Occupancy -- (Length of Occupancy)

(ii) Year Built

(iii) Basement -- (Seepage, Leaks, Cracks, etc. Defects)

(iv) Sump Pump -- (Operational, Location, and Defects)

(v) Roof (Layers, Age and Defects)

(vi) Fireplaces -- (Number, Working and Maintenance, Defects)

(vii) Chimney -- (Maintenance History, Defects)

(viii) Woodburning Stove -- (Installation Date, Permit Received, Defects)

(ix) Structural Conditions -- (Defects)

(x) Insulation -- (Wall, Ceiling, Floor, UFFI)

(xi) Termites or other Pests -- (Treatment Company)

(xii) Radon -- (Test, Company) "Radon has been determined to exist in the State of

Rhode Island. Testing for the presence of radon in residential real estate prior to purchase is

advisable."

(xiii) Electrical Service -- (Imp. & Repairs, Electrical Service, Amps, Defects)

(xiv) Heating System -- (Type, Imp. & Repairs, Underground Tanks, Zones,

Supplemental Heating, Defects)

(xv) Air Conditioning -- (Imp. & Repairs, Type, Defects)

(xvi) Plumbing -- (Imp. & Repairs, Defects)

(xvii) Sewage System -- (Assessment, Annual Fees, Type, Cesspool/Septic Location,

Last Pumped, Maintenance History, Defects)

(xviii) Water System -- (Imp. & Repairs, Type, Defects) Private water supply (well).

"Buyer understands that this property is, or will be served, by a private water supply (well) which

may be susceptible to contamination and potentially harmful to health. If a public water supply is

not available, the private water supply must be tested in accordance with regulations established

by the Rhode Island department of health pursuant to section 23-1-5.3. The seller of that property

is required to provide the buyer with a copy of any previous private water supply (well) testing

results in the seller's possession and notify the buyer of any known problems with the private

water supply (well)."

(xix) Domestic Hot Water -- (Imp. & Repairs, Type, Defects, Capacity of Tank)

(xx) Property Tax

(xxi) Easements and Encroachments – The seller of that real estate is required to provide

the buyer with a copy of any previous surveys of the real estate that are in the seller’s possession

and notify the buyer of any known easements, encroachments, covenants or restrictions of the

seller’s real estate. A buyer may wish to have a boundary or other survey independently

performed at his or her own expense.

(xxii) Deed -- (Type, Number of Parcels)

(xxiii) Zoning -- (Permitted use, Classification) "Buyers of real estate in the state of

Rhode Island are legally obligated to comply with all local real estate ordinances; including, but

not limited to, ordinances on the number of unrelated persons who may legally reside in a

dwelling, as well as ordinances on the number of dwelling units permitted under the local zoning

ordinances." If the subject property is located in a historic district, that fact must be disclosed to

the buyer, together with the notification that "property located in a historic district may be subject

to construction, expansion or renovation limitations. Contact the local building inspection official

for details."

(xxiv) Restrictions -- (Plat or Other)

(xxv) Building Permits

(xxvi) Minimum Housing -- (Violations)

(xxvii) Flood Plain -- (Flood Insurance)

(xxviii) Wetlands -- The location of coastal wetlands, bay, fresh water wetlands, pond,

marsh, river bank or swamp, as those terms are defined in chapter 1 of title 2 and the associated

buffer areas may impact future property development. Seller must disclose to the buyer any such

determination on all or part of the land made by the department of environmental management.

(xxix) Multi-family or other Rental Property -- (Rental Income)

(xxx) Pools & Equipment -- (Type, Defects)

(xxxi) Lead Paint -- (Inspection) Every buyer of residential real estate built prior to 1978

is hereby notified that those properties may have lead exposures that may place young children at

risk of developing lead poisoning. Lead poisoning in young children may produce permanent

neurological damage, including learning disabilities, reduced IQ behavioral problems, and

impaired memory. The seller of that property is required to provide the buyer with a copy of any

lead inspection report in the seller's possession and notify the buyer of any known lead poisoning

problem. Environmental lead inspection is recommended prior to purchase.

(xxxii) Fire

(xxxiii) Hazardous Waste -- (Asbestos and Other Contaminants)

(xxxiv) Miscellaneous

completed real estate disclosure form has been provided to the buyer by the seller in accordance

with the provisions of this section.

(d) The Rhode Island real estate commission has the right to amend the seller disclosure

requirements by adding or deleting requirements when there is a determination that health, safety,

or legal needs require a change. Any change to requirements shall be a rule change, subject to the

administrative procedures act. The power of the commission to amend the written disclosure

requirements are liberally construed so as to allow additional information to be provided as to the

structural components, housing systems, and other property information as required by this

chapter.

SECTION 2. This act shall take effect upon passage.

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LC00277/SUB B

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