Rhode Island House Bill H5366

Rhode Island 2023 Regular Session

• Introduced: 2/3/23
• Refer: 2/3/23
• Report Pass: 5/2/23
• Engrossed: 5/25/23
• Enrolled: 6/8/23
• Passed: 6/14/23

Caption

Real Estate Sales Disclosures

Impact

One significant change introduced by HB 5366 is the increase of the civil penalty imposed on sellers or their agents who fail to provide the required disclosure form. The bill raises the maximum penalty from $100 to $1,000 for each violation occurring during property transactions. This adjustment not only serves as a deterrent against non-compliance but also emphasizes the importance of adhering to disclosure requirements, thereby potentially increasing accountability among sellers and their representatives.

Summary

House Bill 5366 aims to amend provisions within the General Laws governing real estate transactions, specifically focusing on the disclosure requirements for sellers of residential properties. The primary function of this bill is to ensure that sellers provide a completed disclosure form to buyers as part of the sales agreement, establishing a clear and formal acknowledgment of any relevant information regarding the property. By including this requirement, the bill seeks to enhance transparency in real estate transactions and protect the interests of buyers, facilitating better-informed purchasing decisions.

Contention

While the bill primarily focuses on improving buyer protection in real estate transactions, there may be concerns from various stakeholders about the implications of the increased penalties. Some critics could argue that the heightened financial consequences might discourage potential sellers from entering the market or create burdens for small real estate agents who may struggle to meet these requirements in practice. As such, the balance between protecting consumers and ensuring that market participants can operate without undue hindrance remains a notable point of contention surrounding this legislation.