2012 -- S 2499

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LC01275

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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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:

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

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

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

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

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shall be permitted a ten (10) day period to conduct inspections of the property and any structures

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thereon before the purchaser(s) becomes obligated under the contract to purchase. The ten (10)

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day period commences to run the day after the purchase and sale agreement is signed by the

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potential purchaser of the real estate. The parties have the right to mutually agree upon a different

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

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

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

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

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

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

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

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

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

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counter offer which the buyer may either accept or reject.

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

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

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buyer may either elect to:

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

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

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

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

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

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

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

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

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

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or her agent pursuant to the agreement.

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

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

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

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

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

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which shall be made available to the seller.

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

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LC01275

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - REAL ESTATE SALES

DISCLOSURES

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

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

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

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     This act would take effect on January 1, 2013.

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LC01275

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