The bill amends Section 5-20.8-2 of the General Laws in Chapter 5-20.8, "Real Estate Sales Disclosures," to enhance the disclosure obligations of real estate sellers. It requires sellers to provide a written disclosure to buyers and their agents before any agreement to transfer real estate is signed, detailing all known deficient conditions. The Rhode Island real estate commission will approve standardized disclosure forms for both vacant land and properties with one to four dwelling units. While sellers are not mandated to conduct inspections, they must inform buyers of known issues, including the condition of sewage systems, water supplies, property taxes, easements, zoning, and potential environmental hazards.

Significantly, the bill introduces new requirements for sellers to disclose any water damage resulting from natural events or mechanical failures, including details about flooding, water seepage, or pooled water, as well as any claims filed for flood damage with insurance providers. The bill retains existing provisions while adding these new elements to ensure buyers are fully informed about the properties they are considering. The act is set to take effect on January 1, 2026, and empowers the Rhode Island real estate commission to amend disclosure requirements as needed to address health, safety, or legal concerns.

Statutes affected:
5827: 5-20.8-2