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H 7411Real Estate

Property - Condominium Law

Caps condominium resale certificate fees at $125 and imposes penalties on associations for failing to provide them within ten days.

Held for study
Population
Affected
15
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Introduced Jan 30, 2026Committee House Corporations

Plain-English Summary

This legislation amends the Rhode Island Condominium Law regarding the resale of units. It specifically limits the fees that a condominium association can charge a unit owner for the preparation of a resale certificate to $125, with a $25 cap for updating the certificate. Additionally, the bill mandates that associations provide these certificates within ten days of a request. Failure to meet this deadline subjects the association to a civil penalty ranging from $100 to $500 per occurrence.

For younger readers

When a person sells their condo, they need a specific paper from the group that manages the building to show the buyer. This bill makes a rule that the management group cannot charge more than $125 for this paper. It also says the group must give the paper to the seller quickly, within 10 days. If the group takes too long, they have to pay a fine. This helps people sell their homes without paying too much extra money or waiting too long.

Who & Where It Applies

Impacted groups
Condominium Unit OwnersCondominium AssociationsProperty Management CompaniesReal Estate AgentsHome Buyers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Protects consumers and homeowners from predatory pricing and junk fees charged by management companies or associations during the home selling process.
  • Ensures timely processing of necessary paperwork, which aids working-class families who may need to sell their homes quickly to access equity or relocate.
  • Increases accountability for condominium associations, ensuring they perform their duties efficiently rather than obstructing housing transfers.
  • The fixed fee cap may not adequately compensate smaller, self-managed associations for the actual labor involved, potentially straining their limited collective resources.
  • Relies on individual homeowners to enforce the law through civil penalties rather than establishing a state oversight body to systematically prevent abuse.
  • Does not address the broader structural issues of housing affordability or corporate consolidation of residential property ownership.
For Conservatives
  • Protects individual property owners from arbitrary financial barriers and bureaucratic delays imposed by condominium boards.
  • Promotes a more efficient real estate market by ensuring that administrative hurdles do not slow down property transactions.
  • Establishes clear consequences for failure to perform contractual and statutory duties, upholding the principle that organizations must honor their obligations.
  • Represents government interference in the private contracts and self-governance of condominium associations by dictating price controls on services.
  • Violates free-market principles by preventing associations from charging market rates for the administrative work required to produce certificates.
  • Imposes government-mandated penalties on private entities, expanding the regulatory burden on private organizations.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 7 additions · 1 deletion

SECTION 1. Section 34-36.1-4.9 of the General Laws in Chapter 34-36.1 entitled "Condominium Law" is hereby amended to read as follows: 34-36.1-4.09. Resale of units.

(a) Except in the case of a sale where delivery of a public offering statement is required, or unless exempt under § 34-36.1-4.01(b), a unit owner shall furnish to a purchaser before execution of any contract for sale of a unit, or otherwise before conveyance, a copy of the declaration (other than the plats and plans), the bylaws, the rules or regulations of the association, and a certificate containing:

(1) A statement disclosing the effect on the proposed disposition of any right of first refusal or other restraint on the free alienability of the unit;

(2) A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner;

(3) A statement of any other fees payable by unit owners;

(4) A statement of any capital expenditures anticipated by the association for the current and two (2) next succeeding fiscal years;

(5) A statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any specified projects;

(6) The most recent regularly prepared balance sheet and income and expense statement, if any, of the association;

(7) The current operating budget of the association;

(8) A statement of any unsatisfied judgments against the association and the status of any pending suits in which the association is a defendant;

(9) A statement describing any insurance coverage provided for the benefit of unit owners;

(10) A statement as to whether the executive board has knowledge that any alterations or improvements to the unit or to the limited common elements assigned thereto violate any provision of the declaration;

(11) A statement as to whether the executive board has knowledge of any violations of the health or building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of the condominium; and

(12) A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof. (b)(1) The association, within ten (10) days after a request by a unit owner, shall furnish a certificate containing the information necessary to enable the unit owner to comply with this section.

(2) The association may require a unit owner to pay a fee that does not exceed:

(i) one One hundred twenty-five dollars ($125) to prepare and provide an electronic version or physical version of the resale certificate; or

(ii) Twenty-five dollars ($25.00) to provide an updated electronic version or physical version of resale certification.

(3) In addition to those remedies as set forth in § 34-36.1-4.17, any association that fails to provide a certificate to the unit owner within ten (10) days of a written request by the unit owner is subject to a civil penalty of not less than one hundred dollars ($100) nor more than five hundred dollars ($500) per occurrence.

(4) A unit owner providing a certificate pursuant to subsection (a) is not liable to the purchaser for any erroneous information provided by the association and included in the certificate.

(c) A purchaser is not liable for any unpaid assessment or fee greater than the amount set forth in the certificate prepared by the association. A unit owner is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner, but the purchaser contract is voidable by the purchaser until the certificate has been provided and for five (5) days thereafter or until conveyance, whichever first occurs.

SECTION 2. This act shall take effect on September 1, 2026.