The bill amends Section 5-20.8-2 of the General Laws in Chapter 5-20.8, titled "Real Estate Sales Disclosures," to enhance the disclosure requirements for sellers of real estate. It mandates that sellers provide a written disclosure to buyers and their agents detailing all known deficient conditions of the property before any agreement to transfer real estate is signed. The bill specifically introduces new requirements for disclosing water damage caused by natural events or mechanical failures. Sellers are required to disclose: (A) if the real estate has sustained damage due to flooding, water seepage, or pooled water attributable to a natural event; (B) if a claim for flood damage to the real estate has been filed with any insurance provider, including the National Flood Insurance Program; and (C) any other disclosures required pursuant to the relevant subsections of this section.

Additionally, the bill specifies that the Rhode Island real estate commission has the authority to amend disclosure requirements as necessary to address health, safety, or legal needs. The act is set to take effect on January 1, 2026.

Statutes affected:
5827: 5-20.8-2