2020 -- S 2081 | |
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LC003895 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO PROPERTY - CONDOMINIUM LAW - RESALE OF UNITS | |
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Introduced By: Senators Lombardi, Ciccone, Conley, Lynch Prata, and McCaffrey | |
Date Introduced: January 21, 2020 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 34-36.1-4.09 of the General Laws in Chapter 34-36.1 entitled |
2 | "Condominium Law" is hereby amended to read as follows: |
3 | 34-36.1-4.09. Resale of units. |
4 | (a) Except in the case of a sale where delivery of a public offering statement is required, |
5 | or unless exempt under § 34-36.1-4.01(b), a unit owner shall furnish to a purchaser before |
6 | execution of any contract for sale of a unit, or otherwise before conveyance, a copy of the |
7 | declaration (other than the plats and plans), the bylaws, the rules or regulations of the association, |
8 | and a certificate containing: |
9 | (1) A statement disclosing the effect on the proposed disposition of any right of first |
10 | refusal or other restraint on the free alienability of the unit; |
11 | (2) A statement setting forth the amount of the monthly common expense assessment and |
12 | any unpaid common expense or special assessment currently due and payable from the selling |
13 | unit owner; |
14 | (3) A statement of any other fees payable by unit owners; |
15 | (4) A statement of any capital expenditures anticipated by the association for the current |
16 | and two (2) next succeeding fiscal years; |
17 | (5) A statement of the amount of any reserves for capital expenditures and of any |
18 | portions of those reserves designated by the association for any specified projects; |
19 | (6) The most recent regularly prepared balance sheet and income and expense statement, |
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1 | if any, of the association; |
2 | (7) The current operating budget of the association; |
3 | (8) A statement of any unsatisfied judgments against the association and the status of any |
4 | pending suits in which the association is a defendant; |
5 | (9) A statement describing any insurance coverage provided for the benefit of unit |
6 | owners; |
7 | (10) A statement as to whether the executive board has knowledge that any alterations or |
8 | improvements to the unit or to the limited common elements assigned thereto violate any |
9 | provision of the declaration; |
10 | (11) A statement as to whether the executive board has knowledge of any violations of |
11 | the health or building codes with respect to the unit, the limited common elements assigned |
12 | thereto, or any other portion of the condominium; and |
13 | (12) A statement of the remaining term of any leasehold estate affecting the |
14 | condominium and the provisions governing any extension or renewal thereof. |
15 | (b)(1) The association, within ten (10) days after a request by a unit owner, shall furnish a |
16 | certificate containing the information necessary to enable the unit owner to comply with this |
17 | section. |
18 | (2) The association may require a unit owner to pay a fee that does not exceed one |
19 | hundred twenty-five dollars ($125) to prepare and provide an electronic version or physical |
20 | version of the resale certificate. |
21 | (2)(3) In addition to those remedies as set forth in § 34-36.1-4.17, any association that |
22 | fails to provide a certificate to the unit owner within ten (10) days of a written request by the unit |
23 | owner is subject to a civil penalty of not less than one hundred dollars ($100) nor more than five |
24 | hundred dollars ($500) per occurrence. |
25 | (3)(4) A unit owner providing a certificate pursuant to subsection (a) is not liable to the |
26 | purchaser for any erroneous information provided by the association and included in the |
27 | certificate. |
28 | (c) A purchaser is not liable for any unpaid assessment or fee greater than the amount set |
29 | forth in the certificate prepared by the association. A unit owner is not liable to a purchaser for |
30 | the failure or delay of the association to provide the certificate in a timely manner, but the |
31 | purchaser contract is voidable by the purchaser until the certificate has been provided and for five |
32 | (5) days thereafter or until conveyance, whichever first occurs. |
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1 | 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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1 | This act would allow a condominium association to impose a fee of up to one hundred |
2 | twenty-five dollars ($125) for preparation of a resale certificate. |
3 | This act would take effect upon passage. |
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