§ 5-79-3 - Contract.
SECTION 5-79-3
§ 5-79-3 Contract. – (a) Every contract must be in writing and must fully disclose the exact natureof the foreclosure consultant's services and the total amount and terms ofcompensation.
(b) The following notice, printed in at least fourteen (14)point boldface type and completed with the name of the foreclosure consultant,must be printed immediately above the statement required by paragraph (c):
"NOTICE REQUIRED BY RHODE ISLAND LAW
(Name or anyone working for him or her CANNOT):
(1) Take any money from you or ask you for money until. . . . . (Name) has completely finished doingeverything he or she said he or she would do; and
(2) Ask you to sign or have you sign any lien, mortgage ordeed."
(c) The contract must be written in the same language asprincipally used by the foreclosure consultant to describe his or her servicesor to negotiate the contract, must be dated and signed by the owner, and mustcontain in immediate proximity to the space reserved for the owner's signaturea conspicuous statement in a size equal to at least ten (10) point boldfacetype, as follows:
"You, the owner, may cancel this transaction at any timeprior to midnight of the third (3rd) business day after the date of thistransaction. See the attached notice of cancellation form for an explanation ofthis right."
(d) The contract must contain on the first (1st) page, in atype size no smaller than that generally used in the body of the document, eachof the following:
(1) The name and address of the foreclosure consultant towhich the notice of cancellation is to be mailed; and
(2) The date the owner signed the contract.
(e) The contract must be accompanied by a completed form induplicate, captioned "notice of cancellation," which must be attached to thecontract, must be easily detachable, and must contain in at least ten (10)point type the following statement written in the same language as used in thecontract:
"NOTICE OF CANCELLATION
. . . . . (Enter date oftransaction)
You may cancel this transaction, without any penalty orobligation, until midnight of the third (3rd) business day from the above date.
To cancel this transaction, mail or deliver a signed anddated copy of this cancellation notice, or any other written notice to. . . . . . . . . (Name offoreclosure consultant) at. . . . . . . . . (Address offoreclosure consultant's place of business) NOT LATER THAN MIDNIGHT OF. . . . . . . . . (Date)
I hereby cancel this transaction. . . . . . . . . (Date)
. . . . . . . . . (Owner's signature)"
(f) The foreclosure consultant shall provide the owner with acopy of the contract and the attached notice of cancellation immediately uponexecution of the contract.
(g) The three (3) business days during which the owner maycancel the contract shall not begin to run until the foreclosure consultant hascomplied with this section.