§ 5-20.6-8 - Mandatory relations disclosure.
SECTION 5-20.6-8
§ 5-20.6-8 Mandatory relations disclosure.– (a) The Rhode Island real estate commission shall approve a mandatoryrelationship disclosure that conforms to the requirements of this section.
(b) A licensee shall provide a prospective buyer, seller,tenant, or landlord in a real estate transaction with a copy of the mandatoryrelationship disclosure and shall obtain a signed acknowledgement of receiptfrom the buyer, seller, tenant, or landlord at the first personal contact withthe prospective buyer, seller, tenant, or landlord, or prior to an offer topurchase, whichever is first to occur. If a buyer, seller, tenant, or landlord,refuses to sign an acknowledgement of receipt, the licensee shall set forth,sign and date a written declaration of the facts of the refusal.
(c) The mandatory relationship disclosure shall contain thefollowing information:
(1) A list of the types of representation or assistanceavailable to a prospective buyer, seller, tenant, or landlord consistent with§ 5-20.6-3;
(2) A statement that a principal broker and his or heraffiliated licensees must disclose their relationship as a designated clientrepresentative, transaction facilitator, or transaction coordinator to thebuyer, seller, tenant, or landlord in any transaction;
(3) The legal duties and obligations owed to the buyer,seller, tenant, or landlord in each type of relationship as set forth in thischapter and chapter 5-20.5;
(4) A conspicuous notice that a licensee cannot act as aclient representative for a prospective buyer, seller, tenant, or landlordunless the licensee obtains the informed written consent of a prospectivebuyer, seller, tenant, or landlord with a signed mandatory relationshipdisclosure;
(5) A box for the client or customer to select the type ofrepresentation or assistance that he or she desires;
(6) A statement that a principal broker may designate one ormore affiliated licensees to act as the designated client representative(s) ofa seller or landlord and one or more affiliated licensees to act as thedesignated client representative(s) of a buyer or tenant in the sametransaction; provided, that the licensee obtains the consent from the clientbeing represented;
(7) A statement that, when the principal broker or his or herdesignee appoints designated client representatives to represent clients ondifferent sides of a transaction, he or she shall: (i) act in a neutralcapacity as a transaction coordinator; (ii) protect all parties' confidentialinformation; and (iii) properly account for funds;
(8) A statement that all affiliated licensees not appointedas a designated client representative for the client may represent anotherparty in a transaction with conflicting interests;
(9) An explanation of the potential conflicts of interestthat exist if a licensee acts as a designated client representative in atransaction or a neutral transaction facilitator for more than one party in thesame transaction;
(10) A statement that a principal broker and his or heraffiliated licensees must disclose their relationship as a designated clientrepresentative, transaction facilitator, or transaction coordinator to thebuyer, seller, tenant, or landlord in any transaction;
(11) A statement that the failure of a licensee to give aprospective buyer, seller, tenant, or landlord the mandatory relationshipdisclosure timely or the failure of a licensee to obtain any other writtenconsent required by this chapter shall be a violation of Rhode Island realestate license law and may subject the licensee to disciplinary action;
(12) A statement that if a consumer desires to change thenature of a relationship with a licensee from a customer relationship to aclient relationship that a licensee's relationship with a buyer, seller,tenant, or landlord as a designated client representative must be establishedno later than the preparation of a sales agreement, offer to purchase, orlease; and
(13) Written confirmation from each party signing themandatory relationship disclosure that he or she has received, read, andunderstood this mandatory relationship disclosure and has consented to therelationship confirmed above.
(d) In all instances, a licensee's relationship with a buyer,seller, tenant, or landlord as a designated client representative must beestablished, and the mandatory relationship disclosure executed, no later thanthe preparation of a sales agreement, offer to purchase, or lease.