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HB 5560

AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES

2025 Regular Session Introduced by Jennifer Boylan and 9 co-sponsors

Rhode Island HB 5560 standardizes seller disclosures for vacant land and 1-4 family homes, adds a 10-day cesspool/well inspection window, standardized forms, and buyer notice.

03/13/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5560

Summary — HB 5560

Title: AN ACT RELATING TO BUSINESSES AND PROFESSIONS — REAL ESTATE SALES DISCLOSURES
Bill No.: HB 5560 (companion: SB 2661)
Introduced: February 26, 2025 (filed March 14, 2025)
Sponsor(s): Reps. McGaw, Carson, Boylan, Speakman, Kislak, Tanzi, Handy, Cotter, Cortvriend, Spears
Final actions: Enacted — signed by Governor 6/20/2025; effective 9/1/2025

Purpose / Intent

To revise and standardize seller disclosure requirements for sales of vacant land and residential property (one- to four-family dwellings) in Rhode Island. The bill prescribes required disclosure categories, sets form-approval duties for the Real Estate Commission, strengthens buyer notification about environmental and infrastructure conditions (notably cesspools and private wells), and clarifies agent and seller responsibilities and liabilities.

Key provisions

  • Timing and recipients:
    • Seller must deliver a written disclosure to the buyer and any known agents “as soon as practicable” and, in any event, prior to signing an agreement to transfer real estate.
    • An agent may not communicate a buyer’s offer until the buyer receives the disclosure and signs a receipt; if buyer refuses, the seller/agent must record the refusal.
  • Seller obligations and agent liability:
    • Disclosure must state all deficient conditions of which the seller has actual knowledge.
    • Agents are not liable for the accuracy of seller-made statements or for conditions unknown to the agent.
  • Standardized forms:
    • The Rhode Island Real Estate Commission must approve separate disclosure forms for vacant land and for 1–4 unit residential sales (or sellers may use substantially conforming forms).
    • A conspicuous notice must advise buyers that the disclosure is not a warranty and encourage inspections.
  • Required content (selected highlights):
    • Vacant land: detailed items including sewage system (assessment, type, cesspool location, maintenance, defects) with an explicit cesspool warning and a 10‑day inspection period to determine cesspool status under RI Cesspool Act (chapter 19.15 of title 23); private water supply (well) disclosure with reference to Department of Health testing rules; taxes; easements/encroachments; zoning (including historic district limitations); floodplain, wetlands, hazardous waste, and farm-protection notice.
    • Residential (1–4 units): enumerated items including seller occupancy, year built, basement, sump pump, roof, fireplaces/chimney, etc. (full list in statute).
  • No affirmative inspection duty: the statute states it does not impose an affirmative duty on sellers to conduct inspections.

Who is affected

  • Sellers of vacant land and 1–4 unit residential property in Rhode Island (expanded disclosure content and formalities).
  • Buyers, who receive standardized, environment- and infrastructure-focused disclosures and a 10‑day inspection right for sewage/cesspools.
  • Real estate agents/brokers (procedural duties; limited liability for seller disclosures).
  • Rhode Island Real Estate Commission (responsible for approving forms).
  • State agencies referenced: RI Department of Health (well testing standards) and agencies administering the Cesspool Act and wetlands/floodplain determinations.

Procedural / timeline notes

  • Committee action: initially recommended held for further study (3/13/2025); subsequently proceeded through both chambers.
  • Enactment: Signed by the Governor 6/20/2025; statutory effective date 9/1/2025.

Potential impacts

  • Increases standardized transparency for purchasers, particularly on cesspools and private wells—areas with public-health and environmental implications.
  • May impose additional documentation and disclosure burdens on sellers and agents (use/approval of specified forms).
  • Limits agent liability for seller-provided information while requiring agents to withhold offer communication until buyers acknowledge receipt.

Compiled from official sources — confirm details with the bill’s official record.

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