Chapter 207 |
2019 -- S 0334 SUBSTITUTE A AS AMENDED Enacted 07/15/2019 |
A N A C T |
RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES |
Introduced By: Senators Coyne, Seveney, DiPalma, Valverde, and Lynch Prata |
Date Introduced: February 13, 2019 |
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. |
(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, |
Modifications) |
(xiv) Heating System -- (Type, Imp. & Repairs, Underground Tanks, Zones, |
Supplemental Heating, Defects, Modifications) |
(xv) Air Conditioning -- (Imp. & Repairs, Type, Defects) |
(xvi) Plumbing -- (Imp. & Repairs, Defects, Modifications) |
(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 chapter 19.15 of title 23 (The Rhode Island Cesspool Phase-Out Act 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 chapter 19.15 of title 23 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 chapter 19.15 of |
title 23 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 § 5-20.8-13, potential purchasers shall be |
permitted a ten-(10) day (10) 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 chapter 19.15 of title 23. |
(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 § 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 the 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 § 34-39-1 of the general |
laws, the seller is required to disclose said that 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 |
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 freshwater |
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. |
(xxxvi) Mold -- (Type, repairs, alterations, modifications). |
(xxxvii) Ventilation system modifications. |
(xxxviii) Moisture penetration and damage. |
(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 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, 2020. |
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LC000511/SUB A |
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