RI Real Estate Law – Purchase and Sale Contracts – Single Family Home

In Rhode Island, most purchase and sale agreements (purchase and sale agreements) for single-family homes are made on a form prepared by the Rhode Island Association of Realtors. The Sales Agreement is a very important legal document that typically establishes the sale price, time, date and place of closing on residential property, contingencies based on financing, as well as many other provisions.

You may attempt to negotiate modifications to this agreement, and you are not required to sign the standard form. Before signing the Purchase and Sale Agreement, the buyer should contact a Rhode Island attorney who specializes in real estate law, residential real estate closings, and title law.

This agreement was written with the intent to be fair to both buyers and sellers of residential real estate; however, the buyer should not sign this agreement without paying close attention to all provisions, including the following provisions:

1. The contract establishes a certain number of days within which the buyer must request his mortgage. Pursuant to the terms of the Rhode Island Standard Purchase and Sale Agreement, if the buyer does not apply for the mortgage, he will lose his deposit. Be sure to allow enough days for this request to be submitted.

2. The contract establishes that if the buyer requests a mortgage greater than the amount established in the Sales Contract, the buyer will not have the right to obtain the return of his deposit if his mortgage application is denied. The buyer must be sure that the amount entered for the proposed mortgage is, in fact, the highest amount that he intends to request.

3. The agreement states that the buyer must accept the property with any recorded easements or restrictions affecting the property. The buyer must read the Rhode Island Real Estate Sales Disclosure Form before signing the Purchase and Sale Agreement. Rhode Island law requires the seller of Rhode Island residential real estate to notify the buyer of any restrictions or easements. The buyer should review the disclosure form and if the seller indicates that there are any restrictions or easements, the buyer should read them before signing the Purchase and Sale Agreement. If the buyer does not understand the legal implications of the restriction or easement, they should contact their real estate attorney.

4. Buyer’s right to a refund of their deposit in the event they are dissatisfied with home inspections, such as physical/mechanical, pest infestation, and septic system, is contingent on the inspector finding a substantially/materially deficient condition that has not been disclosed to the buyer before the execution of the Purchase and Sale Agreement. This means that the buyer must carefully read the Real Estate Disclosure provided by the seller before signing the Purchase and Sale Agreement to ensure that the seller has not disclosed any existing deficient conditions on the property on this form. If deficient conditions have been disclosed, the Sale and Purchase Agreement must be amended to indicate that the buyer may terminate the agreement based on these deficient conditions.