§ 5-20.6-8. Mandatory relationship disclosure.
(a) The Rhode Island real estate commission shall approve a mandatory relationship 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 mandatory relationship disclosure and shall
obtain a signed acknowledgement of receipt from the buyer, seller, tenant, or landlord
prior to the disclosure of any confidential information. 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 the following information:
(1) A list of the types of representation or assistance available to a prospective buyer,
seller, tenant, or landlord consistent with § 5-20.6-3;
(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 timely give a prospective buyer, seller,
tenant, or landlord the mandatory relationship disclosure, or the failure of a licensee
to obtain any other written consent required by this chapter, shall be a violation
of Rhode Island 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) In 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.