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:

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

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

     34-36.1-4.09. Resale of units.

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

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

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

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

and a certificate containing:

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

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

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

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

unit owner;

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

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

and two (2) next succeeding fiscal years;

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

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

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

if any, of the association;

     (7) The current operating budget of the association;

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

pending suits in which the association is a defendant;

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

owners;

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

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

provision of the declaration;

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

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

thereto, or any other portion of the condominium; and

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

condominium and the provisions governing any extension or renewal thereof.

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

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

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

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

certificate.

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

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

version of the resale certificate.

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

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

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

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

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

the certificate.

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

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

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

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

(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

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

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

     This act would take effect upon passage.

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