Chapter 252
2008 -- H 7439
SUBSTITUTE A AS AMENDED
Enacted 07/05/08
A N A C T
RELATING
TO BUSINESSES AND PROFESSIONS - REAL ESTATE SALES
DISCLOSURES
Introduced
By: Representatives Rice, Shanley, and Walsh
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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LC01468/SUB A
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