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

You can 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 / attorney who specializes in real estate law, residential real estate closings, and title law.

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

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

2. The agreement establishes that if the buyer requests a mortgage greater than the amount established in the Purchase and Sale Agreement, the buyer will not be entitled to obtain a refund of his deposit if his mortgage application is rejected. The buyer must be sure that the amount indicated for the proposed mortgage is, in fact, the highest amount that he intends to apply for.

3. The agreement states that the buyer must accept the property with any easements or recorded restrictions affecting the property. The buyer should read the Rhode Island Real Estate Sales Disclosure Form before signing the Purchase and Sale Agreement. Rhode Island law requires the seller of residential real estate in RI to notify the buyer of any restrictions or easements. The buyer should verify 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, then they should contact their real estate attorney.

4. The buyer’s right to a refund of their deposit in the event that they are not satisfied with the home inspections, such as physical / mechanical, pest infestation and septic system, is dependent on the inspector finding a substantial / material condition. deficient that has not been disclosed to the buyer prior to the execution of the Purchase and Sale Agreement. This means that the buyer should 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 the existing substandard conditions of the property on this form. If poor terms have been disclosed, the Purchase and Sale Agreement should be amended to indicate that the buyer can terminate the agreement based on these poor terms.