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5 | 5 | | 2025 -- S 0536 |
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6 | 6 | | ======== |
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7 | 7 | | LC001956 |
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8 | 8 | | ======== |
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9 | 9 | | S T A T E O F R H O D E I S L A N D |
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10 | 10 | | IN GENERAL ASSEMBLY |
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11 | 11 | | JANUARY SESSION, A.D. 2025 |
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12 | 12 | | ____________ |
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13 | 13 | | |
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14 | 14 | | A N A C T |
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15 | 15 | | RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES |
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16 | 16 | | DISCLOSURES |
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17 | 17 | | Introduced By: Senators Gu, DiMario, Burke, Kallman, Bissaillon, Britto, Vargas, Zurier, |
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18 | 18 | | and Bell |
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19 | 19 | | Date Introduced: February 26, 2025 |
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20 | 20 | | Referred To: Senate Judiciary |
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21 | 21 | | |
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22 | 22 | | |
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23 | 23 | | It is enacted by the General Assembly as follows: |
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24 | 24 | | SECTION 1. Section 5-20.8-2 of the General Laws in Chapter 5-20.8 entitled "Real Estate 1 |
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25 | 25 | | Sales Disclosures" is hereby amended to read as follows: 2 |
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26 | 26 | | 5-20.8-2. Disclosure requirements. 3 |
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27 | 27 | | (a) As soon as practicable, but in any event no later than prior to signing any agreement to 4 |
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28 | 28 | | transfer real estate, the seller of the real estate shall deliver a written disclosure to the buyer and to 5 |
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29 | 29 | | each agent with whom the seller knows he or she or the buyer has dealt in connection with the real 6 |
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30 | 30 | | estate. The written disclosure shall comply with the requirements set forth in subsection (b) and 7 |
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31 | 31 | | shall state all deficient conditions of which the seller has actual knowledge. The agent shall not 8 |
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32 | 32 | | communicate the offer of the buyer until the buyer has received a copy of the written disclosure 9 |
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33 | 33 | | and signed a written receipt of the disclosure. If the buyer refuses to sign a receipt pursuant to this 10 |
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34 | 34 | | section, the seller or agent shall immediately sign and date a written account of the refusal. The 11 |
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35 | 35 | | agent is not liable for the accuracy or thoroughness of representations made by the seller in the 12 |
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36 | 36 | | written disclosure or for deficient conditions not disclosed to the agent by the seller. 13 |
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37 | 37 | | (b)(1) The Rhode Island real estate commission shall approve a form of written disclosure 14 |
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38 | 38 | | for vacant land and a form of written disclosure for the sale of real property and improvements 15 |
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39 | 39 | | consisting of a house or building containing one to four (4) dwelling units as required under this 16 |
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40 | 40 | | chapter or the seller may use a disclosure form substantially conforming to the requirements of this 17 |
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41 | 41 | | section. The following provisions shall appear conspicuously at the top of any written disclosure 18 |
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42 | 42 | | |
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43 | 43 | | |
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44 | 44 | | LC001956 - Page 2 of 8 |
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45 | 45 | | form: “Prior to the signing of an agreement to transfer real estate (vacant land or real property and 1 |
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46 | 46 | | improvements consisting of a house or building containing one to four (4) dwelling units), the seller 2 |
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47 | 47 | | is providing the buyer with this written disclosure of all deficient conditions of which the seller has 3 |
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48 | 48 | | knowledge. This is not a warranty by the seller that no other defective conditions exist, which there 4 |
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49 | 49 | | may or may not be. The buyer should estimate the cost of repair or replacement of deficient 5 |
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50 | 50 | | conditions prior to submitting an offer on this real estate. The buyer is advised not to rely solely 6 |
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51 | 51 | | upon the representation of the seller made in this disclosure, but to conduct any inspections or 7 |
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52 | 52 | | investigations the buyer deems to be necessary to protect his or her best interest.” Nothing 8 |
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53 | 53 | | contained in this section shall be construed to impose an affirmative duty on the seller to conduct 9 |
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54 | 54 | | inspections as to the condition of this real estate. 10 |
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55 | 55 | | (2) The disclosure form for vacant land shall include the following information: 11 |
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56 | 56 | | (i) Sewage System — (Assessment, Annual Fees, Type, Cesspool/Septic Location, Last 12 |
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57 | 57 | | Pumped, Maintenance History, Defects) 13 |
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58 | 58 | | “Potential purchasers of real estate in the State of Rhode Island are hereby notified that 14 |
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59 | 59 | | many properties in the state are still serviced by cesspools as defined in chapter 19.15 of title 23 15 |
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60 | 60 | | (the “Rhode Island Cesspool Act of 2007”). Cesspools are a substandard and inadequate means of 16 |
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61 | 61 | | sewage treatment and disposal, and cesspools often contribute to groundwater and surface water 17 |
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62 | 62 | | contamination. Requirements for abandonment and replacement of high-risk cesspools as 18 |
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63 | 63 | | established in chapter 19.15 of title 23 are primarily based upon a cesspool’s nontreatment of 19 |
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64 | 64 | | wastewater and the inherent risks to public health and the environment due to a cesspool’s distance 20 |
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65 | 65 | | from a tidal water area, or a public drinking water resource. Purchasers should consult chapter 21 |
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66 | 66 | | 19.15 of title 23 for specific cesspool abandonment or replacement requirements. An inspection of 22 |
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67 | 67 | | property served by an on-site sewage system by a qualified professional is recommended prior to 23 |
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68 | 68 | | purchase. Pursuant to § 5-20.8-13, potential purchasers shall be permitted a ten-day (10) period to 24 |
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69 | 69 | | conduct an inspection of a property’s sewage system to determine if a cesspool exists, and if so, 25 |
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70 | 70 | | whether it will be subject to the phase-out requirements as established in chapter 19.15 of title 23.” 26 |
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71 | 71 | | (ii) Water System — (Imp. & Repairs, Type, Defects) Private water supply (well). “The 27 |
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72 | 72 | | buyer understands that this property is, or will be served, by a private water supply (well) that may 28 |
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73 | 73 | | be susceptible to contamination and potentially harmful to health. If a public water supply is not 29 |
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74 | 74 | | available, the private water supply must be tested in accordance with regulations established by the 30 |
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75 | 75 | | Rhode Island department of health pursuant to § 23-1-5.3. The seller of that property is required to 31 |
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76 | 76 | | provide the buyer with a copy of any previous private water supply (well) testing results in the 32 |
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77 | 77 | | seller’s possession and notify the buyer of any known problems with the private water supply 33 |
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78 | 78 | | (well).” 34 |
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79 | 79 | | |
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80 | 80 | | |
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81 | 81 | | LC001956 - Page 3 of 8 |
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82 | 82 | | (iii) Property Tax 1 |
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83 | 83 | | (iv) Easements and Encroachments — The seller of the real estate is required to provide 2 |
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84 | 84 | | the buyer with a copy of any previous surveys of the real estate that are in the seller’s possession 3 |
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85 | 85 | | and notify the buyer of any known easements, encroachments, covenants, or restrictions of the 4 |
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86 | 86 | | seller’s real estate. If the seller knows that the real estate has a conservation easement or other 5 |
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87 | 87 | | conservation or preservation restriction as defined in § 34-39-2, the seller is required to disclose 6 |
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88 | 88 | | that information and provide the buyer with a copy of any documentation in the seller’s possession 7 |
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89 | 89 | | regarding the conservation and preservation restrictions. A buyer may wish to have a boundary or 8 |
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90 | 90 | | other survey independently performed at the buyer’s own expense. 9 |
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91 | 91 | | (v) Deed — (Type, Number of Parcels) 10 |
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92 | 92 | | (vi) Zoning — (Permitted use, Classification). “Buyers of real estate in the State of Rhode 11 |
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93 | 93 | | Island are legally obligated to comply with all local real estate ordinances; including, but not limited 12 |
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94 | 94 | | to, ordinances on the number of unrelated persons who may legally reside in a dwelling, as well as 13 |
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95 | 95 | | ordinances on the number of dwelling units permitted under the local zoning ordinances.” If the 14 |
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96 | 96 | | subject property is located in a historic district, that fact must be disclosed to the buyer, together 15 |
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97 | 97 | | with the notification that “property located in a historic district may be subject to construction, 16 |
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98 | 98 | | expansion, or renovation limitations. Contact the local building inspection official for details.” 17 |
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99 | 99 | | (vii) Restrictions — (Plat or Other) 18 |
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100 | 100 | | (viii) Building Permits 19 |
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101 | 101 | | (ix) Flood Plain — (Flood Insurance) 20 |
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102 | 102 | | (x) Wetlands — The location of coastal wetlands, bay, freshwater wetlands, pond, marsh, 21 |
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103 | 103 | | river bank, or swamp, as those terms are defined in chapter 1 of title 2, and the associated buffer 22 |
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104 | 104 | | areas may impact future property development. The seller must disclose to the buyer any such 23 |
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105 | 105 | | determination on all or part of the land made by the department of environmental management. 24 |
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106 | 106 | | (xi) Hazardous Waste — (Asbestos and Other Contaminants) 25 |
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107 | 107 | | (xii) Miscellaneous 26 |
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108 | 108 | | (xiii) Farms — The disclosure shall inform the buyer that any farm(s) that may be in the 27 |
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109 | 109 | | municipality are protected by the right to farm law. 28 |
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110 | 110 | | (3) The disclosure form for the sale of real property and improvements consisting of a 29 |
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111 | 111 | | house or building containing one to four (4) dwelling units shall include the following information: 30 |
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112 | 112 | | (i) Seller Occupancy — (Length of Occupancy) 31 |
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113 | 113 | | (ii) Year Built 32 |
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114 | 114 | | (iii) Basement — (Seepage, Leaks, Cracks, etc. Defects) 33 |
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115 | 115 | | (iv) Sump Pump — (Operational, Location, and Defects) 34 |
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116 | 116 | | |
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117 | 117 | | |
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118 | 118 | | LC001956 - Page 4 of 8 |
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119 | 119 | | (v) Roof (Layers, Age, and Defects) 1 |
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120 | 120 | | (vi) Fireplaces — (Number, Working and Maintenance, Defects) 2 |
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121 | 121 | | (vii) Chimney — (Maintenance History, Defects) 3 |
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122 | 122 | | (viii) Woodburning Stove — (Installation Date, Permit Received, Defects) 4 |
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123 | 123 | | (ix) Structural Conditions — (Defects) 5 |
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124 | 124 | | (x) Insulation — (Wall, Ceiling, Floor, UFFI) 6 |
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125 | 125 | | (xi) Termites or other Pests — (Treatment Company) 7 |
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126 | 126 | | (xii) Radon — (Test, Company). “Radon has been determined to exist in the State of Rhode 8 |
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127 | 127 | | Island. Testing for the presence of radon in residential real estate prior to purchase is advisable.” 9 |
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128 | 128 | | (xiii) Electrical Service — (Imp. & Repairs, Electrical Service, Amps, Defects, 10 |
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129 | 129 | | Modifications) 11 |
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130 | 130 | | (xiv) Heating System — (Type, Imp. & Repairs, Underground Tanks, Zones, Supplemental 12 |
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131 | 131 | | Heating, Defects, Modifications) 13 |
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132 | 132 | | (xv) Air Conditioning — (Imp. & Repairs, Type, Defects) 14 |
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133 | 133 | | (xvi) Plumbing — (Imp. & Repairs, Defects, Modifications) 15 |
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134 | 134 | | (xvii) Sewage System — (Assessment, Annual Fees, Type, Cesspool/Septic Location, Last 16 |
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135 | 135 | | Pumped, Maintenance History, Defects) 17 |
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136 | 136 | | “Potential purchasers of real estate in the state of Rhode Island are hereby notified that 18 |
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137 | 137 | | many properties in the state are still serviced by cesspools as defined in Rhode Island general law 19 |
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138 | 138 | | chapter 19.15 of title 23 (the Rhode Island Cesspool Act of 2007). Cesspools are a substandard and 20 |
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139 | 139 | | inadequate means of sewage treatment and disposal, and cesspools often contribute to groundwater 21 |
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140 | 140 | | and surface water contamination. Requirements for abandonment and replacement of high-risk 22 |
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141 | 141 | | cesspools as established in chapter 19.15 of title 23 are primarily based upon a cesspool’s 23 |
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142 | 142 | | nontreatment of wastewater and the inherent risks to public health and the environment due to a 24 |
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143 | 143 | | cesspool’s distance from a tidal water area, or a public drinking water resource. Purchasers should 25 |
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144 | 144 | | consult chapter 19.15 of title 23 for specific cesspool abandonment or replacement requirements. 26 |
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145 | 145 | | An inspection of property served by an on-site sewage system by a qualified professional is 27 |
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146 | 146 | | recommended prior to purchase. Pursuant to § 5-20.8-13, potential purchasers shall be permitted a 28 |
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147 | 147 | | ten-day (10) period to conduct an inspection of a property’s sewage system to determine if a 29 |
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148 | 148 | | cesspool exists, and if so, whether it will be subject to the phase-out requirements as established in 30 |
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149 | 149 | | chapter 19.15 of title 23.” 31 |
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150 | 150 | | (xviii) Water System — (Imp. & Repairs, Type, Defects) Private water supply (well). “The 32 |
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151 | 151 | | buyer understands that this property is, or will be served, by a private water supply (well) that may 33 |
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152 | 152 | | be susceptible to contamination and potentially harmful to health. If a public water supply is not 34 |
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153 | 153 | | |
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154 | 154 | | |
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155 | 155 | | LC001956 - Page 5 of 8 |
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156 | 156 | | available, the private water supply must be tested in accordance with regulations established by the 1 |
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157 | 157 | | Rhode Island department of health pursuant to § 23-1-5.3. The seller of that property is required to 2 |
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158 | 158 | | provide the buyer with a copy of any previous private water supply (well) testing results in the 3 |
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159 | 159 | | seller’s possession and notify the buyer of any known problems with the private water supply 4 |
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160 | 160 | | (well).” 5 |
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161 | 161 | | (xix) Domestic Hot Water — (Imp. & Repairs, Type, Defects, Capacity of Tank) 6 |
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162 | 162 | | (xx) Property Tax 7 |
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163 | 163 | | (xxi) Easements and Encroachments — The seller of the real estate is required to provide 8 |
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164 | 164 | | the buyer with a copy of any previous surveys of the real estate that are in the seller’s possession 9 |
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165 | 165 | | and notify the buyer of any known easements, encroachments, covenants, or restrictions of the 10 |
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166 | 166 | | seller’s real estate. If the seller knows that the real estate has a conservation easement or other 11 |
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167 | 167 | | conservation or preservation restriction as defined in § 34-39-1, the seller is required to disclose 12 |
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168 | 168 | | that information and provide the buyer with a copy of any documentation in the seller’s possession 13 |
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169 | 169 | | regarding the conservation and preservation restrictions. A buyer may wish to have a boundary or 14 |
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170 | 170 | | other survey independently performed at his or her own expense. 15 |
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171 | 171 | | (xxii) Deed — (Type, Number of Parcels) 16 |
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172 | 172 | | (xxiii) Zoning — (Permitted use, Classification). “Buyers of real estate in the state of 17 |
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173 | 173 | | Rhode Island are legally obligated to comply with all local real estate ordinances; including, but 18 |
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174 | 174 | | not limited to, ordinances on the number of unrelated persons who may legally reside in a dwelling, 19 |
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175 | 175 | | as well as ordinances on the number of dwelling units permitted under the local zoning ordinances.” 20 |
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176 | 176 | | If the subject property is located in a historic district, that fact must be disclosed to the buyer, 21 |
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177 | 177 | | together with the notification that “property located in a historic district may be subject to 22 |
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178 | 178 | | construction, expansion, or renovation limitations. Contact the local building inspection official for 23 |
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179 | 179 | | details.” 24 |
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180 | 180 | | (xxiv) Restrictions — (Plat or Other) 25 |
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181 | 181 | | (xxv) Building Permits 26 |
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182 | 182 | | (xxvi) Minimum Housing — (Violations) 27 |
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183 | 183 | | (xxvii) Flood Plain — (Flood Insurance) 28 |
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184 | 184 | | (xxviii) Wetlands — The location of coastal wetlands, bay, freshwater wetlands, pond, 29 |
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185 | 185 | | marsh, river bank, or swamp, as those terms are defined in chapter 1 of title 2, and the associated 30 |
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186 | 186 | | buffer areas may impact future property development. The seller must disclose to the buyer any 31 |
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187 | 187 | | such determination on all or part of the land made by the department of environmental management. 32 |
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188 | 188 | | (xxix) Multi-family or other Rental Property — (Rental Income) 33 |
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189 | 189 | | (xxx) Pools & Equipment — (Type, Defects) 34 |
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190 | 190 | | |
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191 | 191 | | |
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192 | 192 | | LC001956 - Page 6 of 8 |
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193 | 193 | | (xxxi) Lead Paint — (Inspection) Every buyer of residential real estate built prior to 1978 1 |
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194 | 194 | | is hereby notified that those properties may have lead exposures that may place young children at 2 |
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195 | 195 | | risk of developing lead poisoning. Lead poisoning in young children may produce permanent 3 |
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196 | 196 | | neurological damage, including learning disabilities, reduced IQ behavioral problems, and 4 |
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197 | 197 | | impaired memory. The seller of that property is required to provide the buyer with a copy of any 5 |
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198 | 198 | | lead inspection report in the seller’s possession and notify the buyer of any known lead poisoning 6 |
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199 | 199 | | problem. Environmental lead inspection is recommended prior to purchase. 7 |
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200 | 200 | | (xxxii) Fire 8 |
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201 | 201 | | (xxxiii) Hazardous Waste — (Asbestos and Other Contaminants) 9 |
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202 | 202 | | (xxxiv) Miscellaneous 10 |
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203 | 203 | | (xxxv) Farms — The disclosure shall inform the buyer that any farm(s) that may be in the 11 |
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204 | 204 | | municipality are protected by the right to farm law. 12 |
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205 | 205 | | (xxxvi) Mold — (Type, repairs, alterations, modifications). 13 |
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206 | 206 | | (xxxvii) Ventilation system modifications. 14 |
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207 | 207 | | (xxxviii) Moisture penetration and damage. 15 |
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208 | 208 | | (xxxix) Blower door diagnostic air leakage testing – home energy audit results – (test, 16 |
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209 | 209 | | company). Air leakage testing and home energy audits are advisable for residential real estate prior 17 |
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210 | 210 | | to purchase in order to assess the energy efficiency of the property. Real estate buyers shall be 18 |
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211 | 211 | | provided with information related to availability of energy efficiency audits and energy efficiency 19 |
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212 | 212 | | programs as identified by the Rhode Island office of energy resources to reduce utility bills, reduce 20 |
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213 | 213 | | energy consumption, improve financial security, reduce carbon emissions, and increase comfort, 21 |
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214 | 214 | | safety and health for building occupants and owners. 22 |
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215 | 215 | | (c) Any agreement to transfer real estate shall contain an acknowledgement that a 23 |
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216 | 216 | | completed real estate disclosure form has been provided to the buyer by the seller in accordance 24 |
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217 | 217 | | with the provisions of this section. 25 |
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218 | 218 | | (d) The Rhode Island real estate commission has the right to amend the seller disclosure 26 |
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219 | 219 | | requirements by adding or deleting requirements when there is a determination that health, safety, 27 |
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220 | 220 | | or legal needs require a change. Any change to requirements shall be a rule change, subject to the 28 |
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221 | 221 | | administrative procedures act, chapter 35 of title 42. The power of the commission to amend the 29 |
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222 | 222 | | written disclosure requirements shall be liberally construed so as to allow additional information to 30 |
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223 | 223 | | be provided as to the structural components, housing systems, and other property information as 31 |
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224 | 224 | | required by this chapter. 32 |
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225 | 225 | | (e) The disclosure form for the sale of vacant land or real property and improvements in 33 |
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226 | 226 | | subsections (b)(2) and (b)(3) of this section shall also include the following information: 34 |
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227 | 227 | | |
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228 | 228 | | |
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229 | 229 | | LC001956 - Page 7 of 8 |
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230 | 230 | | “Shoreline Access — Members of the public shall have the right to access shoreline 1 |
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231 | 231 | | property as defined in § 5-20.8-1. The public’s rights and privileges of the shore may be exercised, 2 |
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232 | 232 | | where shore exists, on wet sand or dry sand or rocky beach, up to ten feet (10′) landward of the 3 |
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233 | 233 | | ‘recognizable high tide line’ subject to the restrictions governed by § 46-23-26 and any general 4 |
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234 | 234 | | laws to the contrary. 5 |
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235 | 235 | | The seller of the real estate is required to notify the buyer of any public rights of way on 6 |
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236 | 236 | | the real estate that are known to the seller. The seller shall provide the buyer with a copy of any 7 |
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237 | 237 | | documentation evidencing such rights of way or conditions of public access that is in the seller’s 8 |
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238 | 238 | | possession. 9 |
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239 | 239 | | The buyer is advised to contact the coastal resources management council, the 10 |
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240 | 240 | | municipality, or applicable nonprofit organizations to determine whether any public rights of way 11 |
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241 | 241 | | exist. 12 |
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242 | 242 | | The seller shall provide the buyer with a copy of any permits relating to the real estate that 13 |
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243 | 243 | | were issued by the coastal resources management council and that are in the seller’s possession.” 14 |
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244 | 244 | | SECTION 2. This act shall take effect upon passage. 15 |
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246 | 246 | | LC001956 |
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249 | 249 | | |
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250 | 250 | | LC001956 - Page 8 of 8 |
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251 | 251 | | EXPLANATION |
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252 | 252 | | BY THE LEGISLATIVE COUNCIL |
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253 | 253 | | OF |
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254 | 254 | | A N A C T |
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255 | 255 | | RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES |
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256 | 256 | | DISCLOSURES |
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257 | 257 | | *** |
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258 | 258 | | This act would modify the real estate sales disclosure form to include the disclosure of 1 |
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259 | 259 | | “blower door diagnostic air leakage testing” and advise that air leakage testing is recommended 2 |
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260 | 260 | | prior to purchasing a residential unit. 3 |
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261 | 261 | | This act would take effect upon passage. 4 |
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263 | 263 | | LC001956 |
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