Chapter 249
2009 -- H 5657 SUBSTITUTE B
Enacted 11/10/09
A N A C T
RELATING TO
BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES
DISCLOSURES
Introduced By: Representatives Ruggiero, Gallison, M Rice, Pacheco, and Ajello
Date Introduced: February 25, 2009
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 January 1, 2009]--
(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
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
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
many properties in the state are still serviced by
cesspools as defined in
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
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
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
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
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. If the seller knows that the real
estate has a conservation easement or other
conservation or preservation restriction as defined in section
34-39-1 of the general laws, the
seller is required to disclose said information and provide
the buyer with a copy of any
documentation in the seller’s possession regarding the conservation
and preservation restrictions.
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
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
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 upon passage.
=======
LC01571/SUB B
=======