A Rhode Island residential purchase agreement facilitates the transfer of ownership of residential properties. This contract specifics essential details, such as the property type (condominium, single-family home, etc.) and purchase price. It also specifies if the buyer must meet any contingencies before the sale occurs, like securing financing.
Throughout negotiation, the seller retains the right to counteroffer and consider other prospective offers until both parties agree on all terms. Once the parties sign the document, the agreement finalizes the transaction, establishing the property’s transfer of ownership on the agreed-upon closing date. The agreement also records details for handling earnest money deposits.
State Laws
- Buyer’s Right to Inspection: A potential purchaser has ten days, excluding holidays and weekends, to conduct property inspections before they become obligated under the contract to follow through with the purchase [1] .
- Exemptions from Disclosures: Certain real estate sales are exempt from disclosures, including transfers pursuant to court orders and transfers from one co-owner to another [2] .
- Penalty for Failure to Disclose the Property’s Condition: The seller or their agent may be subject to a penalty of up to $1,000 if they don’t disclose the property’s condition through the proper form. This lack of a form won’t result in a defect in a title, nor will it void the purchase agreement [3] .
- “Psychologically Impacted” Property Disclosures: Any psychological impact on a property is not a material defect, so the seller doesn’t have to disclose them [4] .
- Earnest Money Deposits: Whenever a dispute arises with the earnest money deposits received by a seller, they must deposit the money with the general treasurer within 180 days of the original deposit date [5] . From there, the general treasurer will keep the funds until the parties resolve the dispute via litigation, arbitration, mediation, or another method.
Realtor Version
Single-Family Purchase and Sales Agreement
Realtors use this Rhode Island Association of Realtors form when facilitating the sale of a residential single-family home.
Multi-Unit Purchase and Sales Agreement
Use this form from the Rhode Island Association of Realtors to manage sales and purchases of residential housing with multiple units.
Required Seller Disclosures
Lead-Based Paint Disclosure
Federal law (42 U.S. Code § 4852d) mandates that sellers disclose information about lead-based paint hazards if the property was built before 1978.
Real Estate Sales Disclosure
State law (§ 5-20.8-2) explains that the seller must provide a written summary of the property's condition to the homeowner. The statute provides provisions for specific property types, including vacant land and buildings with one to four dwelling units.
Real Estate Relationship Disclosure
If a sale involves a licensed real estate specialist's assistance or services, state law (§ 5-20.6-8) says that the licensee must clarify their involvement in the relationship.
Do Sellers in Rhode Island Have to Disclose Property Defects?
Yes. Sellers in Rhode Island must disclose material defects to potential buyers. The buyer doesn’t have to conduct their own inspection, but they have the right to do so under state law. If undisclosed defects arise after the sale, the seller may have recourse to reverse the transaction and recover lost fees.
