Chapter
058
2008 -- S 2454 SUBSTITUTE B
Enacted 06/20/08
A N A C T
RELATING TO
BUSINESSES AND PROFESSIONS - REAL ESTATE SALES
DISCLOSURES
Introduced By: Senators Sosnowski, Breene, and Blais
Date Introduced: February 13, 2008
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. [Effective June 1, 2008.] -- (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 the buyer and
to each agent with
whom the
seller knows he or she or the buyer has dealt in connection with the real
estate. The
written
disclosure shall comply with the requirements set forth in subsection (b) of
this section
and
shall state all deficient conditions of which the seller has actual knowledge.
The agent shall
not
communicate the offer of the buyer until the buyer has received a copy of the
written
disclosure
and signed a written receipt of the disclosure. If the 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
the
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), the seller is providing the buyer
with this
written
disclosure of all deficient conditions of which the seller has knowledge. This
is not a
warranty
by the seller that no other defective conditions exist, which there may or may
not be.
The
buyer should estimate the cost of repair or replacement of deficient conditions
prior to
submitting
an offer on this real estate. The buyer is advised not to rely solely upon the
representation
of the seller made in this disclosure, but to conduct any inspections or
investigations
which the 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)
"Potential purchasers of real estate in the state of Rhode Island are
hereby notified that
many
properties in the state are still serviced by cesspools as defined in Rhode
Island general law
chapter
23-19.15 (The Rhode Island Cesspool Phase-Out Act of 2007). Cesspools are a
substandard
and inadequate means of sewage treatment and disposal, and cesspools often
contribute
to groundwater and surface water contamination. Requirements for abandonment
and
replacement
of high-risk cesspools as established in Rhode Island general law Chapter
23-19.15
are
primarily based upon a cesspool's non-treatment of wastewater and the inherent
risks to public
health
and the environment due to a cesspool's distance from a tidal water area, or a
public
drinking
water resource. Purchasers should consult Rhode Island general law chapter
23-19.15 for
specific
cesspool abandonment or replacement requirements. An inspection of property
served by
an
on-site sewage system by a qualified professional is recommended prior to
purchase. Pursuant
to Rhode
Island general law section 5-20.8-13, potential purchasers shall be permitted a
ten (10)
day
period to conduct an inspection of a property's sewage system to determine if a
cesspool
exists,
and if so, whether it will be subject to the phase-out requirements as
established in Rhode
Island
general law chapter 23-19.15.
(xviii) Water System -- (Imp. & Repairs, Type, Defects) Private water
supply (well).
"The
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. The 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
(xxxv) Farms – The disclosure shall inform the buyer that any farm(s) that
may be in the
municipality
are protected by the right to farm law.
(c) Any agreement to transfer real estate shall contain an acknowledgement that
a
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, chapter 35 of title 42. The power of the commission to amend
the
written
disclosure requirements shall be 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 on January 1, 2009.
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LC01644/SUB B
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