REAL ESTATE-DEAR BORN AND STATE MIX DEC2021

Term
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Degree of Standardization of property price
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Terms in this set (317)
Degree of Standardization of property price
The standardization of the properties rice will not affect the rate at which supply and demand work, but rather the supply and demand affect the stability of the price
Factors that affect Supply and Demand
Geographic Location
Immobility
Uniqueness
Immobility
refers to the concept that geographic location of an given parcel can never be changed.
Scarcity
refers to the limited supply of developed land for particular uses.
Indestructibility
Implies that, despite the potential for land to be altered from both natural and human causes, the geographic location will remain the same.
Emblements
include annual plantings or crops of grain, vegetables, and fruit. Emblements are considered personal property and do not convey.
Appurtenances
A right or privilege associated with real property that is conveyed to the new owner when the property is sold.
Littoral rights
properties that adjoin lakes, oceans, and bays, Properties that deal with a shore line.
Riparian Rights
rights of a property owners access to water and property along waterfront property. Rights are passed through ownership of the property.
Doctrine of Prior Appropriation
four key elements:
Beneficial use
Intent
Diversion
Priority
Doctrine of Highest and Best UsePrincipal that is concerned with determining a property's maximum productivity. This is determined by: Legal Constraints Physical Constraints Financial ConstraintsDominant Tenementrefers to a condition in which a property has an easement over another property. The owner of the property benefits from the easement on the adjoining property. The reverse of the servient tenement.Leasehold InterestA lease in which an individual leases property for a period of time.Servient TenementThe owner of the adjoining property benefits from the easement over a owners property. Reverse of a dominant tenement.License Propertypermission, either implied or expressed, to the use of the property in a way that would otherwise be considered trespassing.Curtesy Rightsrights referred to the life estate of a husband in the real estate of his deceased wife. It provides a non-owning husband a means of support after the death of his wife.Homestead Rightsa legal life estate in real estate occupied as a family home.Dower Rightsrefers to the rights to the life estate of a wife in the real estate of her deceased husband, It provides and non-owning wife a means of support after the death of her husband.Easement by Condemnationestablished through eminent domain, the right of the government to acquire privately owned real-estate for public use.Easement by Necessitywhen an owner sells a parcel of land that has no legal access to a street or public way except over the sellers remining land.-Established by Court orderCondemnationThe actual process of the government taking property for public use.EscheatProcess by which the state may acquire privately owned real or personal property when and owner dies and their is no living heir.Easement in GrossRefers to an individual or company interested in or right to use someone else land.Easement by Prescriptionallows the use of another owners property for a defined period of time.nonassignable easementapply to personal easements in gross rather than commercial easements in gross.-Ex. A public utility company would have a commercial easement in gross.Easement AppurtenantRuns with the land. Is attached with the ownership or real estate and allows the owner of the property the use of a neighbor's land.Tenant by EntiretyReserved for Spouses, a special form of co-ownership that allows a spouse to inherit the other spouses ownership interest upon death.Joint Tenantright of survivorship, upon the death of a ________, the deceased's interest transfers directly to the surviving owner.Tenant in CommonEach tenant holds an undivided interest in the property. When one co-owner dies, the tenants undivided interest passes according to the decedent's will.Severalty OwnerSole OwnershipBeneficiaryperson who benefits from the trustTrusteethere property in conveyed to a _________, and the beneficial interests belong to the beneficiary.Trustorperson who creates the trustAttorney-in-facta person designated to act on behalf of another person with regard to personal or business matters.Joint Tenancythe intentional act conveying a deed or giving a property by will or living trust. Four Unities of this is: Possession Interest Time TitlePartnershipan association of two or more people who carry on a business for profit as co-owners.Community Propertylaws based on the idea the spouses, rather than merging into on entity, are equal partners in marriage, and property acquired during a marriage is considered to be obtained by mutual effort.Rectangular Surveyidentifies a parcel of land with reference to a principal meridian and base line. They are further divided into townships, sections, portions of sectionsMetes and Boundsspecific legal descriptions of parcels of land, useful in describing land when it is irregularly shaped. Also used IF: It is to small to be described by using quarter sections, or when it does not follow the lot or block lines of a recorded subdivision or other section lines.Lot and Blockuses lot and block numbers referenced in a plat map which is filed in the public records of the county where the land is located. a legal, specific description of a parcel of land.Junk Fax Prevention ActPrevention Act prohibits unsolicited advertisementsUETAUniform Electronic Transactions ActDual Agencysituation in which the broker, with written consent, represents both the buyer and the seller in the same transaction.Transactional Brokeragethe situation in which a broker works with a buyer and a seller, assisting one or both parties with the transaction without representing either party.Designated AgencyOccurs during an inhouse sale in which two sales associates are involved in the same transaction. Broker appoints one sales associate to represent the seller.DisclosureThe agents duty to keep the principal information of all known facts or information that might affect a transaction.LoyaltyRefers to the agents duty to place the principles interest above all others.ObedienceRefers to the agents fiduciary responsibility to act in good faith, obeying the principal's lawful instructions in accordance with the contract.CareRefers to a agents fiduciary responsibility to use skill and knowledge to discover facts related to the property in order to properly represent the principal.Exclusive Agency ListingThe seller retains the right to sell the property without obligation to the broker.Listing AgreementThe brokers contract of employment by the seller.Open Buyer Representation AgreementAgreement with the seller, not an agreement with the buyer.Exclusive Agency Buyer Representation AgreementA listing agreement with the seller not the buyerExclusive Buyer Representation AgreementEmployment contract between the the buyer and broker. Buyer is obligated to compensate the broker even if the buyer finds property without the brokers assistance.Joint Listing ClauseAllows two brokerage firms to work together to sell the same property.Multiple Listing ClauseAllows and obligates the broker to use the MLS as a marketing tool to share listing details with other brokers.Net Listing Clauseis not merely a provision in a listing agreement, but is a specific type of listing agreement that is illegal in most states.Open Listing ClauseNot merely a clause but a specific type of listing agreement in which a seller employs more than one broker. In such case, only the broker who produces a buyer is compensated.Security Agreementsa document through which a lender obtains a security interest in property. Protects the lender against possible defects on the chain of title.Associate BrokerA licensed real estate broker employed or engaged as an independent contractor by or on behalf of a licensed real estate brokerDirectorThe director of business regulation for the stateOpinion of ValueAnalysis, opinion, or conclusion prepared by a person licensed under chapter 20.5 of title 5Real Estateincludes leaseholds as well as any and every interest or estate in land, whether corporeal or incorporeal, freehold or non-freehold, and whether the property is situated in this state or elsewhere.Real Estate Salespersonany person employed or engaged as an independent contractor by or on behalf of a licensed real estate broker.Thirty (30) Days after request with a fee of not more then $25.00 for each certificate.Certificate for LicensureReal Estate Recovery Accountaccount from which any person aggrieved by an act, representation, transaction, or conduct of a licensed real estate broker or sales person from fraud or deceit.Minimum Balance for RE Recovery Account$200,000Minimum Deposit to RE Recovery Account with license renewal$25.00Person who enforces rules and regulations mandating the term of license.DirectorNo license shall remain in force for a period in excess of3 years - 5-20.5-6When a RE Brokers license is issued to any Corporation, partnership, or associationshall designate the name of the one principal active officer with whome that license is validIf in the event of the death of a licensed Principal BrokerThe director shall issue a temporary license to that legal representative (not to exceed 1 year)Warranty foreverThe grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.Quiet EnjoymentThe title will be good against any third party who might bring a court action to establish superior title to the property.Further Assurancea grantor promises to obtain and deliver any instrument needed to make good title.Seisingrantor warrants that he has both title and possession at the time of the grant and the authority to transfer propertyAdverse PossessionA person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time.Voluntary AlienationThe owner of the property would have agreed to transfer it to another person by gift or saleAffidavita written statement made either under oath or by affirmation that is issued as evidence in court.acknowledgementA formal declaration under oath that the person who signs a written document does so voluntarily and that the signature is genuine.estoppelprohibits a person from contradicting his or her position from what he or she had previously stated. Frequently used to verify terms of a lease agreement.Trust Deedmeans by which a trustor conveys real estate to a trustee for the benefit of the beneficiary.Quit Claimcan convey title as effectively as a warranty deed of the grantor has good title when the deed is delivered, but it provides none of the guarantees of a warranty deed.Special Warranty DeedA deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, "by, through, or under the grantor but not otherwise."Bargain and Sale Deeda deed that contains no covenants but does imply that the grantor owns the property being conveyedFurther assurancecovenant to obtain documentation to make the title good.Proffered offerRefers to a situation in which a landowner voluntary offers incentives to a local zoneing authority to allow rezoning of property.ProformaA report detailing the income and expenses associated with commercial or rental property which is used to project income & cash flow from the investmentPrivate OfferingWhen Broker is responsible for a chain of events that results in the sale of clients property, the broker involvement in the transaction is not considered to be a private offering.Pursuing a continued and flagrant course of misrepresentation or making of false promises through salespersons, other persons, or any medium of advertising, or otherwise will result in:Revocation, suspension of licenseAny misleading or untruthful advertising;will result in the revocation, suspension of licenseFailing to preserve for three (3) years following its consummation records relating to any real estate transaction as described in the regulations issued by the departmentRevocation, suspension of licenseActing for more than one party in a transaction without the knowledge and consent, in writing, of all parties for whom he or she acts;Revocation, suspension of licensePlacing a "for sale" or "for rent" sign on any property without the written consent of the owner, or his or her authorized agentRevocation, suspension of licenseFailing to furnish a copy of any listing, sale, lease or other contract relevant to a real estate transaction to all signatories of the contract at the time of executionRevocation, suspension of licenseFailing to specify a definite termination date that is not subject to prior notice, in any listing contractRevocation, suspension of licenseinducing any party to a contract, sale, or lease to break that contract for the purpose of substitution in lieu of that contract a new contract, where that substitution is motivated by the personal gain of the licensee;Revocation, suspension of licenseAccepting a commission or any valuable consideration by a salesperson for the performance of any acts specified in this chapter, from any person, except the licensed real estate broker with whom he or she is affiliatedRevocation, suspension of licenseFailing to disclose to an owner his or her intention or true position of a property, directly or indirectly; to purchases, intent to acquire, or any option to purchase property for his or herself; that has been listed with his or her office to sell or lease can result in:Revocation suspension of licenseBeing convicted of any criminal felony in a court of competent jurisdiction of this or any other state or federal court involving dishonesty, breach of trust, forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, fraud, false dealing or any similar offense(s) or by pleading guilty or nolo contendere to any such criminal offense or offensesRevocation, suspension of licenseViolating any rule or regulation promulgated by the department in the interest of the public and consistent with the provisions of this chapter;Revocation, suspension of licenseln the case of a broker licensee, failing to exercise adequate supervision over the activities of his or her licensed sales person within the scope of this chapterRevocation, suspension of licenseSoliciting, selling, or offering for sale real property by offering free lots, or conducting lotteries or contests or offering prizes for the purpose of influencing a purchaser or prospective purchaser of real propertyRevocation, suspension of licensePaying or accepting, giving or charging any undisclosed commission, rebate, compensation, or profit or expenditures for a principal, or in violation of this chapter;Revocation, suspension of licenseAny conduct in a real estate transaction that demonstrates bad faith, dishonesty, untrustworthiness, or incompetence;Revocation, suspension of licenseAccepting a listing based on "net price". ln cases where the owner wishes to list in this manner, the agreed-upon commission is added and listings made in the usual mannerRevocation, suspension of licenseNegotiating, or attempting to negotiate, the sale, exchange, or lease of any real property directly with an owner or lessor knowing that the owner or lessor has an outstanding exclusive listing contract with another licensee covering the same property, except when the real estate broker or salesperson is contacted by the client of another broker regarding a real estate service, and the broker or salesperson has not directly or indirectly initiated those discussions, they may discuss the terms which they might enter into future agency agreement or they may enter into an agency agreement that becomes effective upon termination of any existing exclusive agreement; or they may enter into an agreement for other real-estate service not covered by an existing agency relationshipRevocation, suspension of licenseAccepting an exclusive right to sell or lease or an exclusive agency and subsequently failing to make a diligent effort to sell or lease the listed property;Revocation, suspension of licenseAdvising against the use of the services of an attorney in any real estate transactionRevocation, suspension of licenseRepresenting to any lender or any other party in interest, either verbally or through the preparation of a false sales contract, an amount other than the true and actual sales priceRevocation, suspension of licenseSubmitting to an owner a written offer to purchase or lease unless that offer contains the essential terms and conditions of the offer including the manner in which the purchase price is to be paid, and if that offer is contingent upon certain conditions, those conditions shall be clearly stated in the offer, or unless the offer is conditioned upon the later execution of a complete agreement for sale;Revocation, suspension of licensePaying any sums of money being held in an escrow account to any person, or converting such sums of money for his or her own use, in the event of a failed real estate transaction, without having complied with the department's rules and regulations relative to the transfer of disputed deposit funds to the office of the general treasureRevocation, suspension of licenseAdvertising to sell, buy, exchange, rent, or lease the property of another in a manner indicating that the offer to sell, buy, exchange, rent, or lease that property is being made by a private party not engaged in the real estate business, nor inserting advertisements in any publication containing only a post office or other box number, telephone number, or street address. No salesperson shall advertise the property of another under his or her own name;Revocation, suspension of licenseAs a licensed salesperson, failing upon termination of his or her employment or affiliation with a real estate broker and upon demand by the broker to immediately turn over to the broker any and all information, records, or other materials obtained during his or her reemployment whether the information or records were originally given to him or herby the broker or copied from the records of that broker or affiliation or acquired by the salesperson during his or her employment;Revocation, suspension of licenseOffering, promising, giving, or paying, directly or indirectly, any part or share of his or her commission or compensation arising or accruing from any real estate transaction to any person who is not licensed as a real estate broker, but who by law should be licensed, or who is not a real estate salesperson employed by that licenseeRevocation, suspension of licenseSoliciting the sale, lease, or the listing for sale or lease, of residential property on the ground of loss of value due to the present or prospective entry in the neighborhood of a person or persons of another race, religion, or ethnic origin, nor shall he or she distribute, or cause to be distributed, material or make statements designed to induce a residential property owner to sell or lease his or her property due to such factors;Revocation, suspension of licenseFailure of the employing broker to notify the director, in writing, within ten (10) days of the termination of a salesperson's employment of contractual relationship, or failure of a salesperson to notify the director, in writing, within ten (10) days of any change in his/her broker affiliationRevocation, suspension of licenseFailure to report all written offers to the owner prior to the signing of a purchase and sale agreement by the ownerRevocation, suspension of licenseFailure of agents to provide buyers and sellers of real property with disclosure regarding real estate agency relationships as specified in chapter 20.5 of this titleRevocation, suspension of licenseFailure of an associate broker to inform the public of associate broker status by not listing associate broker on business cards and correspondence or by informing the public that his or her status in the real estate firm is that of brokerRevocation, suspension of licenseFailure of an associate broker to inform the public of associate broker status by not listing associate broker on business cards and correspondence or by informing the public that his or her status in the real estate firm is that of brokeRevocation, suspension of licenseFailure to pay sums of money being held in an escrow account, pursuant to I 5-20.5-26, within ten (10) days of receipt of a written release that has been signed by all parties to a failed real estate transaction.Revocation, suspension of licenseThe director is authorized to levy an administrative penalty not exceeding one thousand dollars (S1,000) for any violation under this section or the rules and regulations of the department of business regulationRevocation, suspension of licenseAlienation Clause(due on sale) clause in a loan document requires full payment on the sale of the property and can prevent future purchases of the property from assuming the loan.EscalationAllows for an automatic increase of a bid of a competing offer is made.Defeasance Clausewhen a mortgage is paid in full this clause requires the lender to execute a satisfaction (release) that is recorded to clear the title.Equitable Redemptionallows a defaulted property owner to recover the property before its sale by paying the appropriate fees and charges.Statory RedemptionAllows the defaulted borrower a period of time, which may ba as long as one year, to raise the necessary funds to redeem the property after a foreclosure.Before refusing to issue a license or suspending or revoking a license on its own motion, the division of professional regulation shall notify the applicant or licensee of its intended action and the grounds for the action.5-20.5-15. Hearings before revocation or suspension of licenseAny person aggrievedhas the right of appealAny person acting as a broker or as a salesperson without first obtaining a license is guilty ofa misdemeanor upon convictionAny Corporation practicing Real-estate without obtaining a license is punishable by:a fine of not less than one thousand dollars ($1,000) nor more than two thousand dollars ($2,000).Practicing Real-estate without obtaining a license is punishable by:a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment for a term not to exceed one year, or bothPracticing Real-estate without obtaining a license for a SECOND TIME is punishable by:a fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000), or by imprisonment for a term not to exceed two (2) years, or both.Any Corporation practicing Real-estate without obtaining a license for a SECOND TIME is punishable by:a fine of not less than two thousand dollars ($2000) nor more than five thousand dollars ($5,000)The Department of Business RegulationAuthorized to conduct, hold, or assist in conducting or holding real estate clinics, meetings, courses, or institutes and to incur the necessary expenses limited by connection therewith, which are open to all licensees.authorized to assist educational institutions within this state in sponsoring studies, research, and programs for the purpose of raising the standards of professional practice in real estate and the competence of licensees in the public interest.The Department of Business RegulationExcept as provided in this chapter, no person shall maintain an action in any court of this state for the recovery of a commission, fee, or compensation for any act done,unless that person was licensed under this chapter as a broker at the time of the doing of the act.All holders of real estate brokers' and salespersons' licenses issued by the state department of business regulationshall, as a condition of retaining that license, carry and maintain errors and omissions insurance covering all business activities contemplated.Each real estate firm shall maintain an escrow account underthe supervision of the broker qualified to do business in the name and on behalf of the corporate, partnership or association licensee.All those funds paid to a salesperson or paid directly to a broker shall be segregated on the broker's books and deposited in an accountin a recognized federally insured financial institution in Rhode island separate from any account containing funds owned by the broker.A broker or salesperson shall not use a customer's fundsas his or her ownA broker or salesperson shall not fail to keep:an escrow or trustee account of funds deposited with him or her relating to a real estate transaction, for a period of three (3) years.Records of an escrow account shall reflect for a period of three (3) yearsshowing to whom the money belongs, date deposited, date of withdrawal, to whom paid, and any other pertinent information that the commission requiresRecords of any escrow accountare to be available to the commission and the department or their representatives, on demand, or upon written notice given to the depository.Whenever the ownership of any deposit monies received by a broker or salesperson pursuant to this section is in dispute by the parties to a real estate transactionthe broker or salesperson shall deposit the monies with the general treasurer within one hundred eighty (180) days of the date of the original depositIf monies are in dispute and submitted to the general treasurer the money will be:held in trust until the dispute is mediated, arbitrated, litigated, or otherwise resolved by the partiesThe parties to a real estate transaction may agree in writingto extend the time period by which the monies must be deposited with the general treasurer in accordance with regulations promulgated by the department of business regulation.Escrow agents.Funds or deposits placed in escrow may be held by any person or entity legally authorized to hold funds in that capacity, e.g., the real estate broker or attorney.The department of business regulation shall have the authority to promulgate rules and regulationswith respect to such escrow accounts and the deposit of monies with the general treasurer.Dual activitiesln all real estate transactions in which a broker holds more than one title, e.g., builder, contractor, or insurance agent, all deposit monies received must be placed in the broker's real-estate escrow account, unless there is a contractual agreement between the principals to the contrary.Unlawful appropriationany licensee to whom any money or other property is entrusted as escrow funds, who intentionally appropriates to the licensee's own use that money or property, or transfers the funds from an escrow account to a company or personal account prior to a closing, is guilty of unlawful appropriation.Release of fundsAn escrow agent shall pay sums of money being held in an escrow account as instructed by the parties to a failed real estate transaction, within ten (10) days of receipt of a written release that has been signed by all the parties to the failed real estate transaction.No person, firm or corporation shall have an ownership interest in a real estate brokerage firm nor participate in the operation of the real estate brokerage firm unlessthe person, firm or corporation holds a valid real estate broker's license, issued pursuant to the provisions of this chapter.Commercial Licensing Regulation 11-Real Estate Brokers and SalespersonsThe purpose of this regulation is to promote the general welfare of the citizens of Rhode lsland by the implementation of R.l. Gen. Laws.Appraisal or real estate appraisalan analysis, opinion, or conclusion relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estateUSPAPUniform Standards of Professional Appraisal Practice(BPO) Broker price opinionan analysis, opinion, or conclusion prepared by a person licensed relating to the price of specified interests in, or aspects of, identified real estate or identified real property for the purpose of listing purchase, or sale.(CMA) Comparative Market Analysisan analysis, opinion, or conclusion prepared by a person licensed relating to the price of specified interests in or aspects of identified real estate or identified real property by comparison to other real property currently or recently sold in the marketplace for the purpose of listing, purchase, or sale.Licensea real estate salesperson or broker license issued by the Department.Net Listingan agreement in which a prospective seller lists Real Estate for sale with an authorization to a Broker to sell at a specified net dollar return to the seller and which provides that the Broker may retain as Commission the difference between the specified dollar return to the seller and the actual sales price.Promptlyshall mean not more than ten (10) calendar daysThe principal broker shall actin a supervisory capacity for every real estate transaction in which an affiliated licensee participates.The principal broker shall be responsiblefor the compliance of his or her affiliated licensees with the Rhode lsland General laws pertaining to real estate licensure and this regulation.The principal broker will be responsiblefor the compliance of his or her non-licensed employees with the Rhode lsland General Laws pertaining to real estate licensure and this regulation.The principal broker mustmaintain an escrow account for the funds of others and shall make certain that no funds of others are disbursed or utilized without his or her express authorization and knowledgeThe adequate supervision of each affiliated licensee and each office of the brokerage at which real estate activities requiring licensure are conducted and is the sole responsibility ofThe Principal Brokerprincipal broker shall assume responsibility forThe notification in writing of any change of his or her status as principal broker to the Department within ten (10) days following the changes: *The proper display of all licenses *The verification that each licensee affiliated with the brokerage *The proper retention and maintenance of records relating to transactions conducted by or on behalf of the brokerage *The preservation and safekeeping of the transaction and escrow account records upon termination of his or her status as principal brokerThe filing of any change of business address or trade name of the brokerage and the registration of any assumed business name adopted by the brokerage for its use with the Department is:The Responsibility of the Principal Brokerlf a principal broker, is authorized to place or procure insurance on the property he or she shall obtain written reaffirmation of such provision by the prospective insured withinfive (5) days prior to the closing of title.A licensed real estate salesperson must be affiliated with a licensed principal broker in order to:engage in any real estate activity requiring licensure.Applicants for a real estate salesperson's license, including former licensees whose salesperson's license has expired for more than one (1) year, mustsubmit satisfactory evidence of completion of a minimum of forty-five (45) classroom hoursApplicants for a RE Brokers License, must submit satisfactory evidence of completion of a minimum of ninty (90) Classroom Hoursand 2 years active as an agentLicenses shall be renewed every two (2) years onMay 1 of each even numbered yearLicenses shall be considered renewed uponthe payment of the renewal fee by May 1 of each even numbered yearLicensees are responsible for the timely renewal of their licenseThe Department may provide notice of the license renewal requirement as a courtesy but the absence of such notice shall not be construed as relieving licensees from their responsibility for timely license renewal.When a licensee disaffiliates from a brokerage, the principal broker mustsend written notice to the Real Estate Section of the Department of the disaffiliation of the licenseeWhen a licensee disaffiliates from a brokerage, The principal broker of the licensee's new brokerage mustsign and submit a transfer of license form to the Department.The principal broker shall notify the Department in writing of the dissolution of the brokerage and return his or her license to the Department withinten (10) days.Upon the dissolution of a brokerage, all licensees affiliated with that brokerage must transfer their license to another brokerage or return it to the Department withinten (10) days for cancellation.Any person who performs any of the acts within the meaning of "real estate broker" in the regular course of, or as an incident to, the management of another person's real propertyare required to be licensed as a real estate brokerlicensees cannot distribute material or make statements designed toinduce a residential property owner to sell or lease his or her property due to such change in the neighborhood of any protected class under Rhode island Fair Housing Practices Act, Title 34, Chapter 37.Any licensee convicted of, or otherwise pleads guilty or nolo contendere to, any felony or misdemeanor, or is disciplined by any governmental agency in connection with any other occupational license, shall file with the Department a written report of such conviction or disciplinary action withinsixty (60) days of the final judgment or final order in the case.No licensee shall solicit the sale, lease, the listing for sale, or the lease of residential property due to the presence or prospective entry into the neighborhoodof any protected class under Rhode island Fair Housing Practices Act, Title 34, Chapter 37.A licensee who fraudulently certifies to the Department completion of the continuing education requirement described in Section 30 of this regulation may besubject to the suspension of his or her license following notice.Any person may file a complaint against any licensee or any person who is required to be licensed but is not licensed by the Departmentlf instructed to do so by the Department, the respondent shall file a response to the complaint within fifteen (15) business days or such other time frame specified by the Department.The Department on its own authority may initiate an investigation and take action:(i) against a licensee (ii) against an applicant for a license or for renewal of a license (iii) against any person who is required to be licensed but is not licensed (iv) against any person who is subject to the regulatory authority of the Department.Following the revocation or suspension of a license in accordance with any disciplinary action,the Director may impose certain conditions to any future license restoration.Escrow accounts shall be so designated by the financial institution in which the account is located, and on all deposit tickets and check drawn on the account.ln addition, the monthly bank statement for the account shall bear the words, "Trust Account" or "Escrow Account."Funds held in escrow may be applied to the commission when earned by the respective licensees only at the time of, or subsequent to,the closing of the real estate transaction.A licensee shall not convert the money or property of others to his or her own use, apply such money or property to a purpose other than that for which it was paid orentrusted to him or her, or permit or assist any other person in the conversion or misapplication of such money or property.The maintenance of nominal amounts of the licensee's funds in escrow accounts solely to provide continuity in such accounts orto meet bank service charges shall not be construed to be commingling.lf a statute or regulation compels the maintenance of a fixed amount of funds in a licensee's escrow account in addition to client or consumer funds,the maintenance of such fixed amount shall not be construed to be commingling.An affiliated licensee shall turn over all deposit monies received promptly to his or her principal broker orat the direction of the principal broker, deposit the funds in the principal broke/s escrow account.A licensee may permit a buyer to draft a deposit check payable to seller only if:(a) The listing agreement so provides; and (b) The seller's designated client representative or the neutral transaction facilitator informs the buyer in writing that the seller does not have any obligation to place the deposit monies in an escrow account.(1) ln real estate transactions in which a principal broker and/or his or her affiliated licensees participate in additional capacities (e.g., seller, builder, contractor, or insurance agent), all deposit monies received by the principal broker must be placedin his or her real estate escrow account, unless there is a contractual agreement between the principals to the contrary.Any contractual agreement that provides for the deposit funds to be placed in an account other than the principal broker's escrow account must comport with the following:(a) The agreement must be in writing; (b) The agreement must include language that informs the buyer or renter that he or she forfeits the protections for monies placed in an escrow account in the event of a dispute over the real estate transaction; and (c) All parties to the real estate transaction must sign the agreement.Security Deposits Relating to o Lease or Rental Agreement. Security deposits held by a landlord following the execution of a lease are governed by R.l. Gen. Laws S 34-18-19.The requirements of this regulation apply only to deposit funds held by a licensee prior to the execution of the lease or rental agreement.A principal broker may release a deposit to a seller or landlord only after the following steps have been taken:(1) The principal broker makes a good faith determination that the buyer or renter forfeited his or her rights to the deposit's return; (2) The principal broker provides written notice to the buyer or renter by certified mail, return receipt requested, of his or her intent to release the deposit to the seller or landlord sixty (50) days from the date of receipt of the written notice; and (3) The buyer or renter fails to notify the principal broker in writing within the sixty (60) day period that he or she disputes the ownership of the deposit.A principal broker may return a deposit to a buyer or renter only after(1) The principal broker makes a good faith determination that the seller or landlord has forfeited his or her rights to the deposit; (2) The principal broker provides written notice to the seller or landlord by certified mail, return receipt requested, of his or her intent to return the deposit to the buyer or renter twenty-one (21) days from the date of receipt of the written notice; and ( 3) The buyer or renter fails to notify the principal broker in writing within the twenty-one (21) day period that he or she disputes the ownership of the deposit.Whenever the parties to a real estate transaction dispute the ownership of any deposit monies received by a principal broker the following procedures shall apply(1) The principal broker shall deposit the monies with the general treasurer no later than one hundred eighty (180) days of the date of the original deposit. The attached form, entitled "Escrow Deposit Transmittal Form," shall accompany the transmittal. (2) As soon as the principal broker determines that an unresolved dispute over ownership of the deposit funds exists, and at least thirty (30) days prior to transmittal of the funds, he/she shall by written letter inform the parties to the real estate transaction of the statutory requirements regarding disputed deposits.The Principal Brokerensures that his or her affiliated licensees keep records of all funds and property of others received by him or her for not less than three (3) years from the date of receipt of any such funds or property.All records shall be kept for a minimum ofThree (3) yearsThe licenseeshall maintain and retain records sufficient to identify the ownership of all funds belonging to others and the property associated with those funds.principal broker and his or her affiliated licenseesshall make available for inspection by the Department all records of transactionsall commissions due to a licensee from the principal brokershall be subject to an accounting and payment to the affiliated licensee and cooperating broker and referring broker no later than ten (10) calendar days from the receipt of such commission by the principal broker.commissions dueno later than 10 Calendar daysThe principal brokermust promulgate a written policy for the payment of commissions to affiliated licensees upon their termination.a licensee must disclose that he or she is licensed as a real estate broker or sales person(1) A buyer (regardless of the percentage of ownership at issue)a licensee must disclose that he or she is licensed(2) A seller (regardless of the percentage of the ownership at issue)a licensee must disclose that he or she is licensed when(3) An owner or a business entity that is a buyer or sellera licensee must disclose that he or she is licensed if(4) A representative of a family member, which includes any person who is related to the licensee,ln order to take a commission, a licensee shall, at the first point of personal contact, disclose in writing whether(1) he or she has an ownership interest in the property being soldln order to take a commission, a licensee shall, at the first point of personal contact disclose if(2) he or she is or will be purchasing any portion of the property being soldln order to take a commission, a licensee shall, at the first point of personal contact disclose when(3) he or she has a business interestln order to take a commission, a licensee shall, at the first point of personal contact disclose if they areacting on behalf of a family memberEvery licensee shall make a diligent effort to ascertain all pertinent information and facts, including but not limited tolot size, zoning, presence or absence of town water or sewer connection, and in the course of a new dwelling, municipal acceptance of the plat and certificate of occupancy, concerning every property in a real estate transaction in which he or she acts as a client representative.principal broker who charges or collects an advance fee for services to be rendered, including but not limited to, advertising costs under an advance fee agreement,shall at the time of accepting the advance fee furnish his or her buyer or seller with a list of services to be rendered.No licensee shall enter into an arrangement, either directly or indirectly,to lend his or her name or license for the benefit of another personAny arrangement where a licensee affiliates with a principal broker not actively involved in real estate activity requiring licensureshall be grounds for disciplinary actionUnless otherwise stated herein, categories of advertising include but are not limited toany publication, radio or television broadcasts, business stationary business cards, business and legal forms, electronic mail, web sites, twitter messaging, and other internet media, or documents.A licensee shall not advertisein any way that is false or misleadingAll advertising shall include the name of the brokerage or principal brokerunder which the licensee is licensed to do business.When the name of a licensee is contained in any advertising, except on business cards,it shall be in print smaller and less conspicuous than that of the brokerage.Any advertisement shall contain the words 'to a qualified buyer"if it refers to the amounts of down payment or the monthly payment carrying charges, or indicates that a mortgage is obtainableAny advertisement that sets forth amounts of down payment, monthly payment, carrying charges, taxes or mortgage money obtainable shall contain appropriate qualifying words such as"approximate" or "estimated."With the exception of magazine or newspaper advertisements published under municipality headings, any advertisement for the sale, exchange, or rental of residential real property placed by a licenseeshall designate the municipality containing the property.Any use of an insignia, emblem, logo, trade name or other form of identification in any advertising or other public utterance, either by a single licensee or group of licensees, that suggests or otherwise implies common ownership or common management among such licenseesshall be prohibited except in the case of branch offices controlled by a principal broker and duly licensed as a branch office.The use, advertising, or display of any insignia, emblem, logo, or trade name of any bona fide trade association by any licensee provided that the licensee is a member of such trade associationis permitted.Any licensee advertising the trade name of an affiliated franchisor shall include in such advertising in a conspicuous manner the operating name ofthe brokerage that owns the franchiseAny licensee, including the franchisee using the trade name of a franchisor in any advertising, shall also include in a conspicuous mannerthe statement, "Each office independently owned and operated,"except for the following categories of advertising(1) "For Sale" signs located on the premises of specific properties for sale; and (2) Small "spot" classified advertising by a single franchised licensee.Advertising by a licensee referring generally to membership in any real estate multiple listing service operation shall specify the complete name of the listing service in which membership is held, except in the following categories of advertising:(1) "For Sale" signs located on the premises of specific properties for sale; (2) Small "spot" classified advertising by a single licensee; (3) Business cards; and (4) Business signs.Any advertising that contains an offer for a home warranty contract shall specify the essential terms of the homewarranty contract offer and shall also indicate whether the warranty offer is mandatory.A licensee may not advertise or distribute promotional material offering rebates or discounts including, but not limited todiscount plans or coupons redeemable for the discounted purchase of goods or services, if such advertisement or promotional material creates a likelihood of confusion or misunderstanding, or is false, deceptive or misleading to the reasonable person.All licensees shall adhere to truth in lending requirements and shall not participate inpaying of sellers costs or any payments to reduce interest costs.Every advertisement or piece of promotional material shall clearly and completely disclose to the consumerall material terms and conditions of the offering.No listing agreement or contract for the sale of real property, or any interest therein,shall contain a pre-printed fee, commission rate or commission amount.Upon request, the principal broker shall advise the seller of the rate or amount ofany commission split or distribution.All listing agreements that list property with a real estate multiple listing service operation shall specifyhe complete name of that listing service.No licensee shall enter into a "net listing" contract forthe sale of real property, or any interest therein.Tenanta person who acquired or seeks to acquire an interest in real estate that entitles him or her to occupy or use a property that is owned by another personTransaction coordinatormeans a principal broker or his or her designee who supervises a real estate transactionTransaction facilitatora licensee who provides assistance to a buyer, seller, tenant, or landlord, or both, in a real estate transaction.lt shall be presumed that all licensees in a real estate transaction are transaction facilitatorsunless the licensee obtains the informed, written consent of a buyer, seller, tenant, or landlord with an executed mandatory relationship disclosure to represent that person as a designated client representative.Types of relationships. The following types of relationships are recognized:(1) Assistance as a transaction facilitator to assist one or more customers; and (2) Representation of a buyer, seller, tenant, or landlord as a designated client representative.A transaction facilitator owes the following duties to a customer:(1)To perform agreed-upon ministerial acts timely and competently; (2)To perform these acts with honesty, good faith, reasonable skill, and care; (3) To properly account for money or property placed in the care and responsibility of the principal broker; and (4)To protect confidential information when assisting customers as a dual facilitator.(b) A licensee acting as a transaction facilitator does not owe any fiduciary duties to a customerexcept those duties specified in subsection (a).A listing agreement that provides for the principal broke/s retention of any portion of the deposit monies upon default by the buyershall specifically state such in large type or bold print in such a manner as to inform the seller of this contingency.Licensed real estate brokers and real estate salespersons not certified or licensed as an appraiserare prohibited from describing or referring to any valuation of real estate as an appraisal.A real estate salesperson or real estate broker licensed may provide his or her client with a Broker Price Opinion (BPO) or a Comparative Market Analysis (CMA) ifhe or she discloses that the BPO or CMA is not an appraisal that conforms to the standards adopted by USPAPA BPO and CMA provided must include a disclaimerThis opinion or analysis is not a certified appraisal or on appraisal that conforms to the Uniform Standards of Professional Appraisal Practice (USPAP). lt is intended only for the benefit of the addressee for the purpose of assisting buyers or sellers or prospective buyers or sellers in deciding the listing offering, or sole price of the real property and not for any other purpose, including but not limited to, lending purposeNo person, other than persons licensed or certifiedshall assume or use a title, designation, or abbreviation likely to create the impression of certification as a real estate appraiser by this state.This section shall not apply to appraisals of real property carried out forthe purpose of municipal valuation.Department establishes the following minimum requirements for { .overage containedin a licensee's errors and omissions insurance policy:ln the case of an individual licensee, the insurance shall be in an amount for each claim of at least$5O,OOO and in an aggregate amount of at least $150,000.ln the case of a principal broker's blanket policy for his or her licensees, a brokerage, the minimum coverage shall be:(a) ln an amount for each claim of at least $50,000 multiplied by the number of individual licensees , employed by or associated with the principal broker, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees employed by or associated with the Principal broker or (b) ln an amount sufficient to provide coverage at a level of at least $300,000 for each claim with an aggregate top limit of liability for all claims of at least $1,000,000 during any one year.insurance shall covernegligence, wrongful acts, and errors and omissions committed by the licenseeInsurance requires may provide that is does not apply toany dishonest, fraudulent, criminal, or malicious act or omission of the insured licensee.Cancellation or any other interruption in required insurance coverage shall requirethe licensee to cease any real estate activities requiring licensure immediately until such time as the licensee is in complianceA licensee must notify the Department within five (5) business days if his or her insurance coverage is canceled or otherwise interrupted.Failure to provide the required notice to the Department shall subject the licensee to disciplinary actionPrior to the renewal of any license, all licensees not specifically exempted shall make a positive affirmation, either in writing or electronically,certifying under penalty of perjury to the Department that the licensee has attended and successfully completed during the preceding two (2) year period, twenty-four (24) clock hours of real estate oriented educational sessions or courses of instruction.At least six (6) of the twenty-four (24) clock hours must come from the following subject areas(1) Rhode lsland law defining relationships between licensees and consumers; (2) Rhode lsland law pertaining to realestate licensure; (3) Rhode lsland landlord-tenant law; (4) The law of contracts; (5) Federal, Rhode lsland, and local law pertaining to fair housing and the treatment of any individual in a protected class as designated in the Rhode lsland Fair Housing Practices Act, Title 34, Chapter 37 of the Rhode lsland General Laws; (6) Lead hazard mitigation or other environmental issues pertaining to real property; (7) Local ordinances and regulations pertaining to residential real estate; (8) Financing the purchase of real estate; or (9) Ethical considerations in real estate transactions.Completion of the requirements of this section is a condition precedent to the renewal of a license.A licensee's misrepresentation or false certification as to course attendance and completion shall subject the licensee to disciplinary action.Licensees who hold a valid license originally issued prior to December 12, 1984are not required to take continuing education courses for purposes of license renewal.Affiliated licenseemeans a licensed real estate salesperson or real estate brokerBrokeragemeans a principal brokerBuyermeans a person who acquires or seek to acquire an ownership interest in real estateClientmeans a buyer, seller, tenant, or landlord who has agreed to representation by a licensee in a real estate transaction, evidenced by an executed, mandatory relationship disclosure, to whom a licensee owes the duties set forthClient Representation Contractmeans an express, written contract between a principal broker or his or her affiliated licensees and a client who authorizes the principal broker or his or her affiliated licensees to act as a client representative for a buyer, seller, landlord, or tenant.Confidential information(i) A buyer's or tenant's willingness to pay more than the offered price; (ii) A seller's or landlord's willingness to accept less than the asking price; (iii) A buyer's or tenant's previous offers made to purchase or lease real estate; (iv) A seller's or landlord's previous offers received to purchase or lease real estate; (v) Any parties' motivating factors; (vi) Any parties' willingness to agree to other financing terms; (vii) Any facts or suspicions regarding circumstances, other than known, material defects of a property that a licensee must in all cases disclose, that may psychologically impact or stigmatize any real estate; or (viii) Any information about a party's assets, liabilities, income, or expenses.Customermeans a buyer, seller, tenant, or landlord who has agreed to certain assistance by a licensee in a real estate transaction, evidenced by an executed, mandatory relationship disclosure, to whom a licensee owes the dutiesDesignated client representativemeans an affiliated licensee appointed by the principal broker or his or her designee to represent a buyer, seller, tenant, or landlord in a real estate transaction.Designeemeans an associate broker whom a principal broker authorizes to act on his or her behalf.Dual Facilitatormeans a single licensee who, with the prior written consent of both parties assists a seller client and a buyer client in the same transaction subject to the limitationsLandlordmeans a person who leases or attempts to lease his or her ownership interest in real estate to another person.Leasemeans an express written or oral contract between a landlord and tenant for the use or occupancy by the tenant of real estate that is owned by another person.Licenseemeans an individual licensed by the director as a real estate broker or real estate salespersonMandatory relationship disclosuremeans a form that describes the relationship between a consumer and a principal broker and his or her affiliated licenseesMinisterial Actsmeans acts of an administrative nature that licensees perform for client or customers, including, but not limited to, showing property; preparing offers or agreements to sell, purchase, exchange, rent, or lease; conveying offers or agreements to the parties; and providing information and assistance.Principal brokermeans a real estate broker licensed by the director who is designated by the brokerage to be responsible for the supervision and activities of his or her affiliated licenseesReal estaterefers to vacant land on which a building is intended to be constructed for use as one or two (2) residential dwellings or land with physical improvements consisting of a house and/or structure comprised of four (4) or fewer residential units.Sales agreementmeans an express written contract signed by the buyer and seller for the purchase and sale of the real estate."Sell," "sale," or "sold" meansa transaction for the transfer of real estate from a seller to a buyer, including, but not limited to, exchanges of real estate between the seller and buyer and transactions involving the creation of a sales agreement.Sellermeans a person who sells or attempts to sell an ownership interest in real estate to another person.lf an affiliated licensee is appointed by the principal broker or his or her designee to represent a buyer, seller, tenant, or landlord in a real estate transaction and obtains the written consent of a buyer, seller, tenant or landlord with an executed, mandatory relationship disclosure to represent that person as a designated client representative, the licensee owes the following legal duties and obligations to his or her client:1. To perform the terms of the client representation contract, if any, with reasonable skill and care; 2. To promote the client's best interest in good faith and honesty; 3. To protect the client's confidential information during the relationship and after its termination; 4. To perform agreed-upon ministerial acts timely and competently; 5. To perform these acts with honesty, good faith, reasonable care and skill; and 6. To properly account for money or property placed in the care and responsibility of the principal broker.(c) A designated, client representative of a seller client or landlord client shall have no duty to protect the confidential information of a buyer customer or tenant customer involved in a transaction with his or her client.Conversely, a designated client representative of a buyer client or tenant client shall have no duty to protect the confidential information of a seller customer or landlord customer involved in a transaction with his or her client.(d) ln the event that one or more affiliated licensees represent a seller as a designated client representative and one or more affiliated licensees represent the buyer as a designated client representative in the same transaction, the principal broker or his or her designee shall act in a capacity asthe transaction coordinator and shall protect the confidential information of all parties to the transaction and properly account for funds.(e) No affiliated licensees of the principal broker, other than those licensee(s) specifically designated to represent the client as a designated client representative, shall represent the client or owe any other duties except that affiliatedlicensees not appointed to represent a client in a transaction shall have the duty to protect the client's confidential information.(f) All other affiliated licensees of the principal broker not appointed as a designated client representative for a party in a real estate transactionmay represent another party with conflicting interests in the same transaction.{g} A designated client representative is exclusively responsible forthe performance of any duties owed to the client.(h) An appointment of a designated, client representative by a principal broker or his or her designee to represent a client shall not limit the principal broker's liability or responsibility for any breach of dutyowed to a client by the designated client representative.A licensee may assist both the buyer client and the seller client or tenant client and landlord client in the same transaction only as aneutral dual facilitator.The dual facilitator relationship between the licensee and buyer and seller, or between the licensee and tenant client and landlord client, exists solely for the specific transaction between the parties. ln the event the transaction is not completed or fails to close, then the dual facilitator remains the designated client representative forthe respective buyer and the seller or tenant and landlord in all future, separate transactions where there is no relationship with the other party.A licensee may be a neutral dual facilitator only after he or she has obtained the informed, written consent of his or her principal broker and all parties involved in the transactionbefore presenting an offer to a seller client on behalf of a buyer client or to a landlord client on behalf of a tenant client.The dual facilitator is authorized to assist both parties in a transaction but shall be neutral as toany conflicting interests between the parties to the transaction;a dual facilitator shall owe a duty to protect the confidential information of al! partiesand a duty to account for fundsConfidential information obtained by a dual facilitator from either party may not be disclosed except:1. If disclosure is expressly authorized; 2. If such disclosure is required by law; 3. If such disclosure is intended to prevent illegal conduct; or 4. If such disclosure is necessary to prosecute a claim against a person represented or to defend a claim against the licensee. The duty to protect confidential information shall continue after the completion of the transaction;IF a comparative market analysis was prepared for a seller client or a buyer client and a dual facilitation situation subsequently arises, the dual facilitator may only provide the comparative market analysis to the other party with the prior consent of the party for whom it was initially prepared.A dual facilitator shall not be able to prepare a comparative market analysis for either party after a dual facilitation situation arises as it may adversely affect one party's bargaining position relative to the other party.ln the event that either the seller client or buyer client in the case of a sale of property, or the landlord client and the tenant client in the case of a rental of property, does not consent to dual facilitation, then the principal broker or his or her designee, may, with the consent of the party(ies)withholding consent designate another licensee to represent one of the parties as a designated client representative.ln the event that an affiliated licensee is acting as a dual facilitator, the principal broker or his or her designee shall act as a transaction coordinator in the transaction and shall protect the parties' confidential information.ln the event that the clients of a principal broker consent to his or her acting as a disclosed dual facilitator, the principal broker may also oversee the transaction as a transaction coordinator.Unless otherwise authorized, a licensee may not disclose the confidential information of:1. a client, in the case of a designated client representative; or 2. a customer, in the case of a dual facilitator or transaction coordinator; or 3. any represented party, in the case of an affiliated licensee who is not appointed a designated client representative, without the client or customer's consent.A licensee may disclose confidential information that is a matter of general knowledge or a part of a public record or file to which access is authorized, or when necessary todefend the licensee against a claim brought by the client, or is otherwise subject to disclosure by law.A principal broker shall implement reasonable procedures to protect the confidential information of all clients of designated client representatives and, as required by this chapter, to protect the confidential information of customers of transaction facilitators.A designated client representative shall have no duty to protect confidential information of a party not a client unless the confidential information of the party was previously acquired by the designated client representative as a result of a prior client or transaction facilitator relationship with the party.A licensee shall provide a prospective buyer, seller, tenant, or landlord in a real estate transaction with a copy of the mandatory relationship disclosure and shall obtain a signed acknowledgement of receipt from the buyer, seller, tenant, or landlord prior tothe disclosure of any confidential information. lf 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.The mandatory relationship disclosure shall contain the following information(1) A list of the types of representation or assistance available to a prospective buyer, seller, tenant, or landlord consistent with 5 5-20.6-3; (2) A statement that a principal broker and his or her affiliated licensees must disclose their relationship as a designated client representative, transaction facilitator, or transaction coordinator to the buyer, 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 this chapter and chapter 20.5 of this title; (4) A conspicuous notice that a licensee cannot act as a client representative for a prospective buyer, seller, tenant, or landlord unless the licensee obtains the informed written consent of a prospective buyer, seller, tenant, or landlord with a signed mandatory relationship disclosure; (5) A box for the client or customer to select the type of representation or assistance that he or she desires; (6) A box for the client or customer to acknowledge the type of representation or assistance that a real estate licensee is offering to the other party in the same transaction. (7) A statement that a principal broker may designate one or more affiliated licensees to act as the designated client representative(s) of a seller or landlord and one or more affiliated licensees to act as the designated client representative(s) of a buyer or tenant in the same transaction; provided, that the licensee obtains the consent from the client being represented; (8) A statement that, when the principal broker or his or her designee appoints designated client representatives to represent clients on different sides of a transaction, he or she shall: (i) act in a neutral capacity as a transaction coordinator; (ii) protect all parties' confidential information; and (iii) properly account for funds; (9) A statement that all affiliated licensees not appointed as a designated client representative for the client may represent another party in a transaction with conflicting interests; (10) An explanation of the potential conflicts of interest that exist if a licensee acts for more than one party in the same transaction; (11) A statement that a principal broker and his or her affiliated licensees must disclose their relationship as a designated client representative, transaction facilitator, or transaction coordinator to the buyer, seller, tenant, or landlord in any transaction; (12) A statement that the failure of a licensee to give a prospective buyer, seller, tenant, or landlord the mandatory relationship disclosure timely, or the failure of a licensee to obtain any other written consent required by this chapter, shall be a violation of Rhode lsland real estate license law and may subject the licensee to disciplinary action; (13) A statement that if a consumer desires to change the nature of a relationship with a licensee from a customer relationship to a client relationship that a licensee's relationship with a buyer, seller, tenant, or landlord as a designated client representative must be established no later than the preparation of a sales agreement, offer to purchase, or lease; and (14) Written confirmation from each party signing the mandatory relationship disclosure that he or she has received, read, and understood this mandatory relationship disclosure and has consented to the relationship confirmed above. (d) ln all instances, a licensee's relationship with a buyer, seller, tenant, or landlord as a designated client representative must be established, and the mandatory relationship disclosure executed, no later than the preparation of a sales agreement, offer to purchase, or lease.(a) lf a seller, buyer, landlord, or tenant and principal broker elect to enter into a client representation contract, the contract shall meet the following requirements:1.Be an express, written contract; (2) include terms of compensation; (3) Describe all services and limitations on services to be performed by the principal broker and his or her affiliated licensees; (4) State that a principal broker may appoint one or more affiliated licensees to act as the designated client representative(s) for a seller or landlord and one or more affiliated licensees to act as the designated client representative(s) for a buyer or tenant in the same transaction after a licensee has obtained consent from the client being represented; and (5) Be signed by all parties.The payment or promise of payment or compensation to a licensee does not createagency relationship between any licensee and buyer, seller, tenant, or landlord.The director shall issue reasonable rules and regulations with the consent of the majority of the Rhode lsland real estate commission governingthe relationships of licensed real estate brokers and salespersons. These rules and regulations shall be designed to implement the laws and policies of this state and to protect the interests of the public.Real estate-State Definitionmeans vacant land or real property and improvements consisting of a house or building containing one to four (4) dwelling units.Transfermeans the sale or conveyance, exchange of, or option to purchase any real estate.The following transfers are exempt from the provisions of this chapter:(1)Transfer pursuant to a court order, including, but not limited to, transfer ordered by a probate court in administration of an estate, transfer pursuant to a writ of execution, transfer by a trustee in bankruptcy, transfer by eminent domain, and transfer resulting from a decree for specific performance. (2) Transfer to a mortgagee by a mortgagor or pursuant to a foreclosure sale, or transfer by a mortgagee who has so acquired the real estate. (3) Transfer by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust. (4) Transfer from one co-owner to one or more other co-owners. (5) Transfer made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors. (6) Transfer between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to that decree. (7) Transfer from any governmental entity. (8)Transfer of any new unoccupied dwelling unit from a builder or developer. (9) Transfer by a relocation company. (10)Transfer of title with no consideration.Disclosure requirements(a) As soon as practicable, but in any event no later than prior to signing any agreement to transfer real estate, the seller of the real estate shall deliver a written disclosure to the buyer and to each agent with whom the seller knows he or she or the buyer has dealt in connection with the real estate. The written disclosure shall comply with the requirements set forth in subsection (b) of this section and shall state all deficient conditions of which the seller has actual knowledge. The agent shall not communicate the offer of the buyer until the buyer has received a copy of the written disclosure and signed a written receipt of the disclosure. lf the buyer refuses to sign a receipt pursuant to this section, the seller or agent shall immediately sign and date a written account of the refusal. The agent is not liable for the accuracy or thoroughness of representations made by the seller in the written disclosure or for deficient conditions not disclosed to the agent by the seller.Every contract for the purchase and sale of real estate shall provide that a potential purchaser or potential purchasers shall be permitted a___________to conduct inspections of the property and any structures thereon before the purchaser(s) becomes obligated under the contract to purchaseten (10) day period,Every agreement for the purchase and sale of residential real estate located in the state shall containan acknowledgement that a completed real estate disclosure form has been provided to the buyer by the seller.Failure to provide the seller disclosure form to the buyer does not void the agreement nor create any defect in title. Each violation of this statute by the seller and/or his or her agent is subject to a civil penalty in the amount ofone hundred dollars ($100) per occurrence.The fact or suspicion that real property may be or is psychologically impacted is not a material fact requiring disclosure in any real estate transaction. "Psychologically impacted" means an impact being the result of facts or suspicions including, but not limited to, the following:(1) That an occupant of real property is now or has been suspected to be infected or is infected or has been infected with Human lmmunodeficiency Virus or diagnosed with Acquired lmmune Deficiency Syndrome, or any other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupying of a dwelling place; or (2) That the real property was or has been, at any time, suspected of being the site of a homicide, other felony, or suicide. (b)(1) No cause of action shall arise against the seller of the real property or his or her agent for failure to disclose to the buyer that the real property was psychologically impacted as defined in this chapter.