Under Rhode Island's seller disclosure law, which of the following transfers is exempt from the disclosure requirement?
Correct Answer
A) 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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Related Concepts
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
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More Mandated Disclosures Questions
A buyer asks a Georgia licensee to interpret a FEMA flood zone map and determine whether the property is at risk of flooding. The licensee has no specialized training in flood mapping or hydrology. How should the licensee handle this request?
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