Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0353 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0353
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7	7	LC001424
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES
16	16	DISCLOSURES
17	17	Introduced By: Senators McKenney, LaMountain, and Britto
18	18	Date Introduced: February 16, 2023
19	19	Referred To: Senate Judiciary
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 5-20.8-2 of the General Laws in Chapter 5-20.8 entitled "Real Estate 1
24	24	Sales Disclosures" is hereby amended to read as follows: 2
25	25	5-20.8-2. Disclosure requirements. 3
26	26	(a) As soon as practicable, but in any event no later than prior to signing any agreement to 4
27	27	transfer real estate, the seller of the real estate shall deliver a written disclosure to the buyer and to 5
28	28	each agent with whom the seller knows he or she or the buyer has dealt in connection with the real 6
29	29	estate. The written disclosure shall comply with the requirements set forth in subsection (b) and 7
30	30	shall state all deficient conditions of which the seller has actual knowledge. The agent shall not 8
31	31	communicate the offer of the buyer until the buyer has received a copy of the written disclosure 9
32	32	and signed a written receipt of the disclosure. If the buyer refuses to sign a receipt pursuant to this 10
33	33	section, the seller or agent shall immediately sign and date a written account of the refusal. The 11
34	34	agent is not liable for the accuracy or thoroughness of representations made by the seller in the 12
35	35	written disclosure or for deficient conditions not disclosed to the agent by the seller. 13
36	36	(b)(1) The Rhode Island real estate commission may shall approve a form of written 14
37	37	disclosure for vacant land and a form of written disclosure for the sale of real property and 15
38	38	improvements consisting of a house or building containing one to four (4) dwelling units as required 16
39	39	under this chapter or the seller may use a disclosure form substantially conforming to the 17
40	40	requirements of this section. The following provisions shall appear conspicuously at the top of any 18
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43	43	LC001424 - Page 2 of 7
44	44	written disclosure form: “Prior to the signing of an agreement to transfer real estate (vacant land or 1
45	45	real property and improvements consisting of a house or building containing one to four (4) 2
46	46	dwelling units), the seller is providing the buyer with this written disclosure of all deficient 3
47	47	conditions of which the seller has knowledge. This is not a warranty by the seller that no other 4
48	48	defective conditions exist, which there may or may not be. The buyer should estimate the cost of 5
49	49	repair or replacement of deficient conditions prior to submitting an offer on this real estate. The 6
50	50	buyer is advised not to rely solely upon the representation of the seller made in this disclosure, but 7
51	51	to conduct any inspections or investigations the buyer deems to be necessary to protect his or her 8
52	52	best interest.” Nothing contained in this section shall be construed to impose an affirmative duty 9
53	53	on the seller to conduct inspections as to the condition of this real estate. 10
54	54	(2) The disclosure form for vacant land shall include the following information: 11
55	55	(i) Sewage System — (Assessment, Annual Fees, Type, Cesspool/Septic Location, Last 12
56	56	Pumped, Maintenance History, Defects) 13
57	57	“Potential purchasers of real estate in the State of Rhode Island are hereby notified that 14
58	58	many properties in the state are still serviced by cesspools as defined in chapter 19.15 of title 23 15
59	59	("the Rhode Island cesspool act of 2007"). Cesspools are a substandard and inadequate means of 16
60	60	sewage treatment and disposal, and cesspools often contribute to groundwater and surface water 17
61	61	contamination. Requirements for abandonment and replacement of high-risk cesspools as 18
62	62	established in chapter 19.15 of title 23 are primarily based upon a cesspool’s nontreatment of 19
63	63	wastewater and the inherent risks to public health and the environment due to a cesspool’s distance 20
64	64	from a tidal water area, or a public drinking water resource. Purchasers should consult chapter 21
65	65	19.15 of title 23 for specific cesspool abandonment or replacement requirements. An inspection of 22
66	66	property served by an on-site sewage system by a qualified professional is recommended prior to 23
67	67	purchase. Pursuant to § 5-20.8-13, potential purchasers shall be permitted a ten (10) day period to 24
68	68	conduct an inspection of a property’s sewage system to determine if a cesspool exists, and if so, 25
69	69	whether it will be subject to the phase-out requirements as established in chapter 19.15 of title 23.” 26
70	70	(ii) Water System — (Imp. & Repairs, Type, Defects) Private water supply (well). “The 27
71	71	buyer understands that this property is, or will be served, by a private water supply (well) which 28
72	72	may be susceptible to contamination and potentially harmful to health. If a public water supply is 29
73	73	not available, the private water supply must be tested in accordance with regulations established by 30
74	74	the Rhode Island department of health pursuant to § 23-1-5.3. The seller of that property is required 31
75	75	to provide the buyer with a copy of any previous private water supply (well) testing results in the 32
76	76	seller’s possession and notify the buyer of any known problems with the private water supply 33
77	77	(well).” 34
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81	81	(iii) Property Tax 1
82	82	(iv) Easements and Encroachments — The seller of the real estate is required to provide 2
83	83	the buyer with a copy of any previous surveys of the real estate that are in the seller’s possession 3
84	84	and notify the buyer of any known easements, encroachments, covenants, or restrictions of the 4
85	85	seller’s real estate. If the seller knows that the real estate has a conservation easement or other 5
86	86	conservation or preservation restriction as defined in § 34-39-2, the seller is required to disclose 6
87	87	that information and provide the buyer with a copy of any documentation in the seller’s possession 7
88	88	regarding the conservation and preservation restrictions. A buyer may wish to have a boundary or 8
89	89	other survey independently performed at his or her own expense. 9
90	90	(v) Deed — (Type, Number of Parcels) 10
91	91	(vi) Zoning — (Permitted use, Classification) “Buyers of real estate in the State of Rhode 11
92	92	Island are legally obligated to comply with all local real estate ordinances; including, but not limited 12
93	93	to, ordinances on the number of unrelated persons who may legally reside in a dwelling, as well as 13
94	94	ordinances on the number of dwelling units permitted under the local zoning ordinances.” If the 14
95	95	subject property is located in a historic district, that fact must be disclosed to the buyer, together 15
96	96	with the notification that “property located in a historic district may be subject to construction, 16
97	97	expansion, or renovation limitations. Contact the local building inspection official for details.” 17
98	98	(vii) Restrictions — (Plat or Other) 18
99	99	(viii) Building Permits 19
100	100	(ix) Flood Plain — (Flood Insurance) 20
101	101	(x) Wetlands — The location of coastal wetlands, bay, freshwater wetlands, pond, marsh, 21
102	102	river bank, or swamp, as those terms are defined in chapter 1 of title 2, and the associated buffer 22
103	103	areas may impact future property development. The seller must disclose to the buyer any such 23
104	104	determination on all or part of the land made by the department of environmental management. 24
105	105	(xi) Hazardous Waste — (Asbestos and Other Contaminants) 25
106	106	(xii) Miscellaneous 26
107	107	(xiii) Farms — The disclosure shall inform the buyer that any farm(s) that may be in the 27
108	108	municipality are protected by the right to farm law. 28
109	109	(3) The disclosure form for the sale of real property and improvements consisting of a 29
110	110	house or building containing one to four (4) dwelling units shall include the following information: 30
111	111	(i) Seller Occupancy — (Length of Occupancy) 31
112	112	(ii) Year Built 32
113	113	(iii) Basement — (Seepage, Leaks, Cracks, etc. Defects) 33
114	114	(iv) Sump Pump — (Operational, Location, and Defects) 34
115	115
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118	118	(v) Roof (Layers, Age, and Defects) 1
119	119	(vi) Fireplaces — (Number, Working and Maintenance, Defects) 2
120	120	(vii) Chimney — (Maintenance History, Defects) 3
121	121	(viii) Woodburning Stove — (Installation Date, Permit Received, Defects) 4
122	122	(ix) Structural Conditions — (Defects) 5
123	123	(x) Insulation — (Wall, Ceiling, Floor, UFFI) 6
124	124	(xi) Termites or other Pests — (Treatment Company) 7
125	125	(xii) Radon — (Test, Company) “Radon has been determined to exist in the State of Rhode 8
126	126	Island. Testing for the presence of radon in residential real estate prior to purchase is advisable.” 9
127	127	(xiii) Electrical Service — (Imp. & Repairs, Electrical Service, Amps, Defects, 10
128	128	Modifications) 11
129	129	(xiv) Heating System — (Type, Imp. & Repairs, Underground Tanks, Zones, Supplemental 12
130	130	Heating, Defects, Modifications) 13
131	131	(xv) Air Conditioning — (Imp. & Repairs, Type, Defects) 14
132	132	(xvi) Plumbing — (Imp. & Repairs, Defects, Modifications) 15
133	133	(xvii) Sewage System — (Assessment, Annual Fees, Type, Cesspool/Septic Location, Last 16
134	134	Pumped, Maintenance History, Defects) 17
135	135	“Potential purchasers of real estate in the state of Rhode Island are hereby notified that 18
136	136	many properties in the state are still serviced by cesspools as defined in Rhode Island general law 19
137	137	chapter 19.15 of title 23 (The Rhode Island cesspool act of 2007). Cesspools are a substandard and 20
138	138	inadequate means of sewage treatment and disposal, and cesspools often contribute to groundwater 21
139	139	and surface water contamination. Requirements for abandonment and replacement of high-risk 22
140	140	cesspools as established in chapter 19.15 of title 23 are primarily based upon a cesspool’s 23
141	141	nontreatment of wastewater and the inherent risks to public health and the environment due to a 24
142	142	cesspool’s distance from a tidal water area, or a public drinking water resource. Purchasers should 25
143	143	consult chapter 19.15 of title 23 for specific cesspool abandonment or replacement requirements. 26
144	144	An inspection of property served by an on-site sewage system by a qualified professional is 27
145	145	recommended prior to purchase. Pursuant to § 5-20.8-13, potential purchasers shall be permitted a 28
146	146	ten-day (10) period to conduct an inspection of a property’s sewage system to determine if a 29
147	147	cesspool exists, and if so, whether it will be subject to the phase-out requirements as established in 30
148	148	chapter 19.15 of title 23.” 31
149	149	(xviii) Water System — (Imp. & Repairs, Type, Defects) Private water supply (well). “The 32
150	150	buyer understands that this property is, or will be served, by a private water supply (well) which 33
151	151	may be susceptible to contamination and potentially harmful to health. If a public water supply is 34
152	152
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154	154	LC001424 - Page 5 of 7
155	155	not available, the private water supply must be tested in accordance with regulations established by 1
156	156	the Rhode Island department of health pursuant to § 23-1-5.3. The seller of that property is required 2
157	157	to provide the buyer with a copy of any previous private water supply (well) testing results in the 3
158	158	seller’s possession and notify the buyer of any known problems with the private water supply 4
159	159	(well).” 5
160	160	(xix) Domestic Hot Water — (Imp. & Repairs, Type, Defects, Capacity of Tank) 6
161	161	(xx) Property Tax 7
162	162	(xxi) Easements and Encroachments — The seller of the real estate is required to provide 8
163	163	the buyer with a copy of any previous surveys of the real estate that are in the seller’s possession 9
164	164	and notify the buyer of any known easements, encroachments, covenants, or restrictions of the 10
165	165	seller’s real estate. If the seller knows that the real estate has a conservation easement or other 11
166	166	conservation or preservation restriction as defined in § 34-39-1, the seller is required to disclose 12
167	167	that information and provide the buyer with a copy of any documentation in the seller’s possession 13
168	168	regarding the conservation and preservation restrictions. A buyer may wish to have a boundary or 14
169	169	other survey independently performed at his or her own expense. 15
170	170	(xxii) Deed — (Type, Number of Parcels) 16
171	171	(xxiii) Zoning — (Permitted use, Classification) “Buyers of real estate in the state of Rhode 17
172	172	Island are legally obligated to comply with all local real estate ordinances; including, but not limited 18
173	173	to, ordinances on the number of unrelated persons who may legally reside in a dwelling, as well as 19
174	174	ordinances on the number of dwelling units permitted under the local zoning ordinances.” If the 20
175	175	subject property is located in a historic district, that fact must be disclosed to the buyer, together 21
176	176	with the notification that “property located in a historic district may be subject to construction, 22
177	177	expansion, or renovation limitations. Contact the local building inspection official for details.” 23
178	178	(xxiv) Restrictions — (Plat or Other) 24
179	179	(xxv) Building Permits 25
180	180	(xxvi) Minimum Housing — (Violations) 26
181	181	(xxvii) Flood Plain — (Flood Insurance) 27
182	182	(xxviii) Wetlands — The location of coastal wetlands, bay, freshwater wetlands, pond, 28
183	183	marsh, river bank, or swamp, as those terms are defined in chapter 1 of title 2, and the associated 29
184	184	buffer areas may impact future property development. The seller must disclose to the buyer any 30
185	185	such determination on all or part of the land made by the department of environmental management. 31
186	186	(xxix) Multi-family or other Rental Property — (Rental Income) 32
187	187	(xxx) Pools & Equipment — (Type, Defects) 33
188	188	(xxxi) Lead Paint — (Inspection) Every buyer of residential real estate built prior to 1978 34
189	189
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192	192	is hereby notified that those properties may have lead exposures that may place young children at 1
193	193	risk of developing lead poisoning. Lead poisoning in young children may produce permanent 2
194	194	neurological damage, including learning disabilities, reduced IQ behavioral problems, and 3
195	195	impaired memory. The seller of that property is required to provide the buyer with a copy of any 4
196	196	lead inspection report in the seller’s possession and notify the buyer of any known lead poisoning 5
197	197	problem. Environmental lead inspection is recommended prior to purchase. 6
198	198	(xxxii) Fire 7
199	199	(xxxiii) Hazardous Waste — (Asbestos and Other Contaminants) 8
200	200	(xxxiv) Miscellaneous 9
201	201	(xxxv) Farms — The disclosure shall inform the buyer that any farm(s) that may be in the 10
202	202	municipality are protected by the right to farm law. 11
203	203	(xxxvi) Mold — (Type, repairs, alterations, modifications). 12
204	204	(xxxvii) Ventilation system modifications. 13
205	205	(xxxviii) Moisture penetration and damage. 14
206	206	(c) Any agreement to transfer real estate shall contain an acknowledgement that a 15
207	207	completed real estate disclosure form has been provided to the buyer by the seller in accordance 16
208	208	with the provisions of this section. 17
209	209	(d) The Rhode Island real estate commission has the right to amend the seller disclosure 18
210	210	requirements by adding or deleting requirements when there is a determination that health, safety, 19
211	211	or legal needs require a change. Any change to requirements shall be a rule change, subject to the 20
212	212	administrative procedures act, chapter 35 of title 42. The power of the commission to amend the 21
213	213	written disclosure requirements shall be liberally construed so as to allow additional information to 22
214	214	be provided as to the structural components, housing systems, and other property information as 23
215	215	required by this chapter. 24
216	216	SECTION 2. This act shall take effect upon passage. 25
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223	223	EXPLANATION
224	224	BY THE LEGISLATIVE COUNCIL
225	225	OF
226	226	A N A C T
227	227	RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES
228	228	DISCLOSURES
229	229	***
230	230	This act would establish separate disclosure requirements for the sale of vacant land and 1
231	231	for the sale of real property and improvements consisting of a house or building containing one to 2
232	232	four (4) dwelling units. 3
233	233	This act would take effect upon passage. 4
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