The Rhode Island Association of REALTORS® has approved the following forms changes, which were sent to authorized forms vendors.  Please keep in mind that some vendors update at different times.

REVISIONS TO EXISTING FORMS: 

• Escalation Addendum – include a definition of “net.”
• New Construction Single Family/Multi-Unit Purchase and Sales Agreement and
• New Construction Condominium Purchase and Sales Agreement.
  • Section 13 Additional Obligations – removes subsection (b) Smoke/Carbon Monoxide Detectors because it’s redundant.  A certificate of occupancy would not be issued without one.

New construction is exempt from the R.I.G.L.  § 5-20.8-4, which gives buyers a legal right to have a home inspection conducted.  

Section 15 Inspection, Possession, and Condition of Property - Adds “Inspection” to the title.

• Clarifies that buyers may have the property inspected after the seller notifies the buyer that the property is substantially complete.
• Streamlines this section.

Condominium Resale Purchase and Sales Agreement

Section 12. Condominium Documents -  eliminates subsection (d) because insurance is already included in the resale certificate.

Section 13 Condominium Resale Certificate

• Removes the reference to attorney review.   All purchase and sales agreement already include a warning statement that states “If not understood, consult an attorney.”
• Changes “received” to “delivered” to make this form more consistent with other agreements.

Condominium Resale Documents Addendum

• Removes the reference to insurance because it is already included in the resale certificate.
• Changes “received” to “delivered” to make this form more consistent with other agreements.

Rhode Island Real Estate Sales Disclosure

• Lengthened Buyer’s and Seller’s Initial line at bottom of pages.
• Revised Section 32 Radon.   
• Removed #80-Landfill from the Conditions Section.  Because the term was not defined, there was confusion as to what qualified as a landfill.
• Reorganized the Buyer/Seller signature lines in the Acknowledgment Section.   
• Removed the change section.  The buyers’ initials were auto-populating even when there were no changes to the disclosure, which meant that buyers were initialing a blank section.  If conditions change after the seller signs the disclosure but prior to closing, the seller can disclose those changes on a separate addendum that the buyer and seller would sign.

REALTORS®: for more information, please contact the RIAR Legal Department at 401-432-6945 or email [email protected]