This bill amends Rhode Island’s Condominium Law to regulate the information and fees associated with condominium resale certificates. Before a unit is sold, the seller must provide the purchaser with the declaration, bylaws, rules, and a certificate containing specified disclosures about assessments, fees, reserves, budgets, lawsuits, insurance, code violations, and leasehold terms. The bill preserves the existing framework for resale disclosures but adds clearer fee limits and enforcement provisions.
The bill specifically allows a condominium association to charge up to $125 to prepare and provide an initial resale certificate, whether electronic or physical, and up to $25 for an updated version. It also requires the association to provide the certificate within 10 days of a unit owner’s request and creates a civil penalty of $100 to $500 per occurrence if the association fails to do so. A seller is not liable for incorrect information supplied by the association, and a purchaser’s liability for unpaid assessments is capped at the amount stated in the certificate. The bill takes effect on September 1, 2026.
Impact
The bill would amend § 34-36.1-4.09 of the Rhode Island General Laws, which governs condominium resale disclosures, by adding explicit fee caps for initial and updated resale certificates and by imposing a penalty for late issuance. It would also clarify that a unit owner is protected from liability for association-provided errors and that a purchaser’s responsibility for unpaid assessments cannot exceed the amount disclosed in the certificate. These changes affect condominium associations, unit owners, and prospective buyers by standardizing disclosure costs and strengthening the reliability and timeliness of resale documentation.
Sentiment
The available context suggests generally favorable or practical support for the bill’s consumer-protection and administrative-clarity goals, though no committee transcript or vote record is available to show debate. The bill’s caption and text indicate an effort to reduce the cost of updated resale certificates and to ensure timely disclosure in condominium sales. Overall, the measure appears aimed at balancing association administrative burdens with buyer and seller protections.
Contention
The main potential point of contention is the regulation of condominium association fees and the imposition of penalties for delayed certificate production. Associations may view the $25 cap on updated certificates and the 10-day deadline as burdensome or restrictive, while buyers and sellers are likely to support them as protections against excessive charges and transaction delays. Another possible issue is the liability shift: the bill shields unit owners from errors made by the association, which could be disputed by parties concerned about responsibility for inaccurate disclosures.
Provides that the “meetings” requirements from § 34-36.1-3.08 be applicable to condominiums created before July 1, 1982, and would permit remote participation in condominium meetings.
Provides that the “meetings” requirements from § 34-36.1-3.08 be applicable to condominiums created before July 1, 1982, and would permit remote participation in condominium meetings.
Provides that the “meetings” requirements from § 34-36.1-3.08 be applicable to condominiums created before July 1, 1982, and would permit remote participation in condominium meetings.
References both the declaration and bylaws of a condominium association as possible sources of association insurance regulation for the condominiums and require additional insurance to protect unit owners, when necessary.
Provides that amendments to §§ 34-36.1-1.03 and 34-36.1-3.08 are applicable to condominiums created before July 1, 1982, provides a definition for the term “special assessment” and allows unit owners to participate in association meetings remotely.
Voids any provision in a condominium declaration or bylaw that would limit an increase in annual assessments relative to a percentage of the prior year's assessment.
Creates process for condominium associations to give notice to and obtain approval from unit mortgage holders for certain association actions by mailing a written request for approval to the unit mortgagees via regular and certified mail.
Creates process for condominium associations to give notice to and obtain approval from unit mortgage holders for certain association actions by mailing a written request for approval to the unit mortgagees via regular and certified mail.