Seller disclosure requirements in Rhode Island

Is a disclosure form required by law?

Yes. Chapter 5-20.8 of the Rhode Island General Laws covers vacant land and any house or building with one to four dwelling units. The seller must deliver the written disclosure “as soon as practicable, but in any event no later than prior to signing any agreement to transfer real estate.” The agent may not communicate the buyer’s offer until the buyer has received the disclosure and signed a receipt. If the buyer refuses to sign, the seller or agent must sign and date a written account of the refusal (§ 5-20.8-2(a)).

The Rhode Island Real Estate Commission approves the standard forms, one for vacant land and one for one- to four-unit homes. A seller may use another form that “substantially conforms” to the statute (§ 5-20.8-2(b)). Every purchase agreement for residential property must state that a completed disclosure form was given to the buyer (§ 5-20.8-5(a)).

What the form covers

The statute lists what a home form must include. Highlights:

• Roof, basement (seepage, leaks, cracks), sump pump, chimney, fireplaces, structural conditions and insulation
• Electrical, heating, air conditioning, plumbing and hot water systems
• Sewage system (including whether a cesspool exists) and water system (public or private well)
• Radon, termites and other pests, mold, moisture penetration and ventilation changes
• Flood plain and flood insurance, wetlands, easements and encroachments, zoning, building permits and minimum housing violations
• Lead paint, hazardous waste, pools, rental income for multi-family homes, and shoreline access

The form carries set warnings. At the top, it states that it is not a warranty and that the buyer should not rely only on the seller’s statements. The law does not make the seller inspect the home: the duty covers conditions the seller actually knows about (§ 5-20.8-2(a), (b)(1)). If an item is unknown, the seller says so and may use an approximation (§ 5-20.8-10).

One point is settled by law. Psychologically impacted property, such as a past death in the home or an occupant’s illness, is not a material fact the seller must disclose, but the seller may never make a false statement about it (§ 5-20.8-6).

Exemptions

Chapter 5-20.8 does not apply to these transfers (§ 5-20.8-3):

• Court-ordered transfers, including probate, execution, bankruptcy trustee, eminent domain and specific performance
• Transfers to a mortgagee, foreclosure sales, and resales by a mortgagee that acquired the property that way
• Transfers by a fiduciary administering an estate, guardianship, conservatorship or trust
• Transfers between co-owners, to a spouse, or to a lineal relative, and transfers between spouses in a divorce
• Transfers from a government entity, transfers of a new unoccupied unit from a builder, transfers by a relocation company, and transfers with no consideration

What buyers can do: inspection periods

Rhode Island contracts must give the buyer time to investigate. Each period is 10 days, unless the parties agree otherwise in writing:

A buyer may waive the general inspection right in writing (§ 5-20.8-4(a)). For how inspections are priced, see what a home inspection costs.

What happens if a seller does not disclose?

Missing the form does not void the agreement or create a title defect, but the seller or agent can owe up to $1,000 per occurrence (§ 5-20.8-5(b)). A seller or agent is not liable for an error that was outside their personal knowledge, was based on a timely public-agency or expert report, and was handled with ordinary care (§§ 5-20.8-7 to 5-20.8-9). Whether a buyer has other claims depends on the facts. For advice on your own case, ask a Rhode Island attorney; see our real estate attorney guide.

Federal lead-based paint rule (homes built before 1978)

For housing built before 1978, federal rules add three duties before the buyer is bound by a contract (40 CFR Part 745, Subpart F):

1. The seller gives the buyer the EPA lead hazard pamphlet (§ 745.107).
2. The seller discloses known lead-based paint and hazards, and gives the buyer any records or reports available (§ 745.107).
3. The seller allows a 10-day period for a lead inspection or risk assessment unless the parties agree in writing to another period, and the buyer may waive it in writing (§ 745.110).

The contract must also attach a lead warning statement and the seller’s lead disclosure statement (§ 745.113). A person who knowingly violates the rule is liable for three times the buyer’s damages (§ 745.118(c)). Sales at foreclosure are outside the federal rule (§ 745.101). Under state law, the rules issued for the Lead Poisoning Prevention Act must also require sellers to hand over lead inspection results, any outstanding violation notice and state educational materials (R.I. Gen. Laws § 23-24.6-16(a)).