A Rhode Island salesperson is working with a buyer client who is purchasing a condominium unit in a complex built in 1972. The buyer is obtaining financing, and the lender requires confirmation that the property complies with Rhode Island's lead hazard mitigation requirements. The seller is the current owner-occupant of the unit. Which statement most accurately describes the applicable Rhode Island lead hazard requirements for this transaction?
Correct Answer
B) Rhode Island's Lead Hazard Mitigation Act applies only to rental properties, so the seller as an owner-occupant has no Certificate of Conformance obligation for this sale
Rhode Island's Lead Hazard Mitigation Act (R.I. Gen. Laws § 42-128.1) applies specifically to pre-1978 RENTAL properties. The Certificate of Conformance requirement obligates landlords renting out pre-1978 housing to comply with lead hazard mitigation standards — it does not apply to owner-occupied properties being sold. For this sale transaction, the seller as owner-occupant is not subject to the Certificate of Conformance requirement under Rhode Island's Lead Hazard Mitigation Act. However, federal law (Residential Lead-Based Paint Hazard Reduction Act) does require a lead paint disclosure for the sale of pre-1978 housing.
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Related Topics & Key Terms
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Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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