2001 -- S 0775
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LC01574
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2001
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A N A C T
RELATING TO REAL ESTATE TRANSACTIONS - DISCLOSURES
It is enacted by the General Assembly as follows:
SECTION 1. Section 5-20.8-5 of the General Laws in Chapter 5-20.8 entitled "Real Estate Sales Disclosures" is hereby amended to read as follows:
5-20.8-5. Real estate disclosure form acknowledgement -- Inclusion in real estate sales agreements -- Penalty for violation. -- (a) Every agreement for the purchase and sale of residential real estate located in the state shall contain an acknowledgement that a completed real estate disclosure form has been provided to the buyer by the seller.
(b) Failure to provide the seller disclosure form to the buyer does not void the agreement nor create any defect in title; however, each violation of this statute by the seller and/or his or her agent is subject to a civil penalty in the amount of one hundred dollars ($100) per occurrence.
(c)(1) Every agreement for the purchase and sale of real estate located in this state shall contain in the caption of the agreement a statement in bold print as follows:
"THIS IS A LEGAL DOCUMENT IF YOU HAVE ANY QUESTION, CONSULT YOUR LAWYER BEFORE SIGNING."
(2) Every agreement for the purchase and sale of real estate shall contain a provision that, upon the execution of agreement by all parties thereto, for a period of ten (10) business days thereafter said agreement shall remain nonbinding and enforceable.
(3) Any realtor, agent or broker for any party to a real estate transaction shall advise such party or parties that should they need assistance in understanding the real estate transaction they should consult an attorney licensed to practice law in Rhode Island.
(4) In any real estate transaction, when it is determined or there is a belief that real estate or related property is or may be held in trust, any interested party, broker or agent having such information shall engage an attorney licensed to practice law in Rhode Island. The attorney shall determine and identify all trustees and persons in interest to the trust and notify in writing said persons of the pendancy of the transaction.
(5) Until the notification of persons interested in the trust is completed the real estate transaction shall be held in abeyance and shall not be concluded.
SECTION 2. This act shall take effect on July 1, 2001.
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LC01574
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO REAL ESTATE TRANSACTIONS - DISCLOSURES
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This act would in real estate transactions provide notice to parties to consult an attorney to be advised of legalities, understanding, and the identity of trustees in real estate transactions.
This act would take effect on July 1, 2001.