Sellers are often required to list out all the physical aspects of their property to prospective home buyers. This increases clarity and facilitates a better sale. That is exactly where a seller disclosure statement comes into the picture.
Sometimes, to make a quick home sale, sellers tend to disguise the defects in the house. However, if the buyer finds material defects later, the seller may face legal consequences. To avoid these, our guide will take you through seller disclosure Rhode Island.
» How To Sell My House Rhode Island: Know the process to sell your home in Rhode Island.
What are Seller Disclosures?
The Seller Disclosure form is a standard checklist form containing material defects and features of the property. It specifically provides information about the property that may negatively affect the value of the house.
If there are material defects in a property that may impact the value of the property and the seller is aware of them, then the seller must disclose them. However, sellers should report these defects to the best of their knowledge and understanding.
The aim of Seller Disclosure is to maintain transparency in the real – estate transaction to keep the buyer aware of any defects present in the house.
» How Do I Sell My House As Is Rhode Island: Here is Houzeo’s guide on how to sell your home as-is in Rhode Island.
Importance of Seller Disclosures
Seller’s disclosures serve the following purpose in real estate transactions:
|🔎||Give Complete Information About The Property||Disclosures help communicate the defects present on the property. They ensure that all the stakeholders involved in the transaction are well aware of the property's history.|
|⚖️||Protects Sellers Against Legal Liabilities||Once you disclose all the known defects present in the house or which come to light during the inspection, you may be exempted from any future liability against those defects.|
|👍||Develops Credibility||Honesty, accuracy and transparency are of utmost importance when selling your house. Disclosures are a way of achieving all of these and thereby enhancing your credibility.|
» Sell My House For Cash Now: Check out the best options to sell your home fast for cash
Rhode Island Seller Disclosure Law
The sellers on Rhode Island are bound by specific federal and state laws in relation to the sale of their property. Set out below are a few pointers revolving around Rhode Island seller disclosure laws.
Statute on Seller Disclosure Rhode Island
On Rhode Island, sellers are required by law to make property disclosures to prospective buyers. The sellers must make disclosures regarding water supply, heating/ AC systems, sewage disposal systems, etc in the Disclosure form. The Disclosure form also states questions regarding tax rate of the home. The Disclosure form is provided by Rhode Island Association of Realtors.
Disclosure of Material Defects
Apart from stating various characteristics and important aspects of the property and structure, the real estate agents representing the sellers must disclose the latent material defects of the house to the prospective buyer.
- ✍️ Editor’s Note: Latent material defects are the ones which are not apparent or visibly recognizable defects, but they significantly affect the value of the property. Generally, these defects pose a threat to the safety or health of the occupants.
» Need To Sell My House Faster Rhode Island: Read our blog if you’re in dire need to sell your house fast in Rhode Island.
Lead-Based Paint Disclosure Rhode Island
Additionally, as mandated under Federal Law, the sellers must disclose if their property (if built prior to 1978) has been coated by lead-based paints. The Lead-based paint disclosure form for the seller should be filled out by the seller.
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Most Common Mistakes By FSBO Home Sellers in Disclosures
The main object of disclosures in any area is to give clarity and perspective to a buyer. Buyers who are looking for a home usually have certain criteria in mind before searching for a home. A seller disclosure acts as a bridge to close these doubts, giving buyers a reason to have faith in you and your deal.
- One of the biggest mistakes a seller can make is not giving disclosures at all. The lack of trust between a buyer and seller can demotivate a buyer from considering your property altogether. Hence, it is suggested that sellers complete all disclosure formalities as soon as possible, even though it may not be legally required in your state.
- Likewise, sellers also get an option to mark a point as ‘unknown’ in disclosures. This gives you ample opportunity to be honest in your disclosures. Also, marking a certain disclosure clause as ‘unknown’ shifts the burden on a buyer to inspect that particular problem. Hence, don’t make the mistake of lying on your disclosures, as that would count as fraudulent misrepresentation and attract a lawsuit.
- Most state laws prescribe that the disclosures should be provided before closing. As an FSBO seller, it is your duty to provide disclosures as soon as possible, since you do not have a real estate agent to do these things for you.
- ✍️ Pro Tip: Sellers who are selling their house the FSBO way are advised to keep their Disclosure Statement ready before listing on the MLS. It increases your credibility and reliability from a buyer’s perspective, as they get an idea of the property’s condition early on.
» Can I Sell My House By Myself Rhode Island: Are you considering selling your house without a realtor? Here are our tips for a smooth selling process.
Tips to Minimize Issues on Rhode Island Disclosure Documents
|Review And Verify||There’s a time allowance (some permit 10 days) to review and verify everything about your Purchase and Sales Agreement—also the square footage, home usage, and marketing.|
|Ask Questions||Ask questions when in doubt. This would help you in avoiding future troubles.|
|Hire A Professional Inspector||A professional inspector can help you gather backup information about the property’s condition. You can also opt for a pre-inspection before listing.|
»Find out the best home inspectors in Rhode Island.
|Disclose Everything||To avoid problems in your home disclosure statement disclose everything you know honestly. Even though it’s a minor issue, you must disclose it.|
|Get A Licensed Agent Involved||The best way to avoid disclosure issues is to get a licensed real estate agents in Rhode Island. Agents can help you manage and assist you in the process along the way.|
- ✍️ Pro Tip: List Your Property With Houzeo
One of the best ways to minimize problems in your seller’s disclosure is to Purchase the “Contract to Close Upgrade Package”. A Licensed broker will review your paperwork to make sure it is appropriate. In addition, you should also have the settlement agent review the paperwork so you cover all bases.
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Final Word: Complexity of Seller’s Disclosure on Rhode Island
|Level of Complexity||Average|
|Is Rhode Island a Caveat Emptor State?||No|
|Is Rhode Island a Non-Disclosure State?||No|
Disclosure laws on Rhode Island do not follow the rule of ‘caveat emptor,’ i.e. let the buyer beware. Thus, it is the seller’s duty to disclose all material defects or additional disclosures that may affect the monetary value of the house to the prospective buyer.
Rhode Island Seller’s Disclosures Statements are a little complicated. Selling your house FSBO is usually good, but then you would have to deal with all the disclosures on your own. This demands that you be aware of all the disclosure requirements and that any mistake can cost you dearly. Houzeo can help you with this.
- ✍️ Editor’s Note: Though selling your home yourself on a For Sale By Owner website can save you thousands in commission, we highly recommend you add a Flat Fee MLS listing to your marketing strategy. Check out the best Rhode Island Flat Fee MLS.
» RI Flat Fee MLS – Discover The Best Flat Fee MLS Service in Rhode Island
By listing your property with Houzeo, you get access to all forms in electronic format. And that too, for FREE! Houzeo has segregated all the disclosures state-wise so that you don’t have to hunt for New Hampshire seller disclosures separately.
Check out some of the Houzeo reviews and how it has helped customers around the US.
*Seller disclosures are primarily the responsibility of a home seller. Regardless of the service, you engage in, you are required to ensure seller disclosures provided by you are complete and accurate to your best knowledge. Houzeo is not a brokerage or a licensed agent. It is a tech platform, and the tips presented here should not be construed as advice for which a real estate or attorney license is required.
Frequently Asked Questions
Are seller required to make disclosures of material defects on Rhode Island?
Yes, Rhode Island laws mandate sellers to make disclosures to the prospective buyer.
Do sellers have to disclose if the house was a site of death or suicide ?
No, sellers are not required by law to make these disclosures.
What happens if seller lies on the Disclosure form?
The buyer can take legal action and claim damages against such a seller to cover repair costs.
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