Rhode Island Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a Rhode Island Real Estate Contract?

A Rhode Island real estate contract is a legal agreement that is negotiated between a buyer and a seller that outlines the terms and conditions of the sale of real estate. A real estate contract will cover important information like:

  • Property purchase price
  • Closing date and costs
  • Conditions to meet before the sale is finalized

Common Rhode Island Real Estate Contracts

There are several common contracts used to buy and sell land in Rhode Island. The contract varies based on the type of property and purpose of the contract.

  • Residential purchase and sale agreement. Used to buy and sell residential property zoned for housing. In Rhode Island, the most used contract by realtors is the Rhode Island Association of Realtors version.
  • Commercial purchase agreement. Used to buy and sell commercial property zoned for operating a business.
  • Lease agreement. Used to rent properties while maintaining ownership.

4 Essential Elements of a Rhode Island Real Estate Contract

The 4 essential elements that must be present in every Rhode Island real estate contract are:

  1. Valid offer from the buyer and acceptance of the offer from the seller
  2. Consideration or the promise of items of value
  3. Mutual assent or the agreement to enter the contract
  4. Legal purpose and legal capacity of the parties

In addition, all real estate contracts must be in writing.

What Makes a Real Estate Contract Invalid in Rhode Island?

In Rhode Island, a real estate contract can be deemed invalid for the following reasons:

  • The contract was not executed properly.
  • It contains illegal terms.
  • One of the parties purposefully misrepresented facts.
  • If one of the parties was under duress, undue influence, or incapacitated when the contract was signed.

If either party alleges any of these reasons, the contract could be deemed invalid and unenforceable.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in Rhode Island?

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