Under Rhode Island's seller disclosure law, which of the following transfers is exempt from the disclosure requirement?
Correct Answer
B) Foreclosure sale or other involuntary transfer ordered by a court
Under RIGL § 5-20.8-2, certain transfers are exempt from Rhode Island's seller disclosure requirements, including involuntary transfers such as foreclosure sales. Because the transferring party (e.g., a lender or court-appointed trustee) typically has no personal knowledge of the property's condition, the disclosure obligation does not apply. Voluntary sales of residential property — whether owner-occupied, newly built, or brokered — are generally subject to disclosure requirements.
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