Rhode Island Condo Due Diligence Checklist

Where Rhode Island due diligence deserves the most attention

Legal Framework

Condominiums (post-1982): Governed by the Rhode Island Condominium Act, R.I. Gen. Laws Ch. 34-36.1 (enacted P.L. 1982, ch. 329, effective July 1, 1982). It is a modified adoption of the Uniform Condominium Act (UCA) and is comprehensive, organized into four Articles: (I) General Provisions; (II) Creation, Alteration, and Termination; (III) Management of Condominium; (IV) Protection of Condominium Purchasers.

Reserve Studies and Reserve Funding

Annual budget: Under § 34-36.1-3.15, the association must adopt a budget at least annually and set common-expense assessments based on it.; Authority (not mandate) to fund reserves: § 34-36.1-3.02 gives the executive board explicit power to establish and fund reserves through the budget — but does not require a target funding level.; Developer-stage reserve disclosure: § 34-36.1-4.03 (public offering statement) requires a declarant selling a *new* condominium to provide a projected budget that includes reserves sufficient for major capital items (e.g., e…

Structural Inspections and Building Safety

Rhode Island has no statewide condominium milestone- or façade-inspection mandate (nothing like Florida SB-4D, NYC Local Law 11, or California SB-326). Building safety is handled through standard code and permitting:

Insurance Requirements and Insurance-Market Risk

Property (master) insurance on the common elements against all risks of direct physical loss (or, for a conversion building, fire and extended coverage), in an amount — net of deductibles — not less than 80% of actual cash value at purchase and each renewal (excluding land, foundations, excavation).; Liability insurance covering the common elements against bodily injury and property damage.; Insurance trustee / proceeds: Loss is adjusted with the association; proceeds are payable to an insurance trustee or the association (held in trust for owners and li…

Resale Disclosures and Buyer Cancellation Rights

Rhode Island's resale disclosure regime (§ 34-36.1-4.09, "Resale of units") is stronger than many states and includes a statutory buyer cancellation right — a key differentiator.

Assessments, Special Assessments, and Borrowing

`special_assessment_pending` — Board approved/proposed a special assessment not in current dues.; `insurance_shortfall_assessment` — Special assessment to cover post-deductible repair shortfall (2022 amendment).; `budget_increase_over_threshold` — Year-over-year budget jump beyond a set threshold.; `amendment_supermajority_gridlock` — Needed amendment blocked by 67%/unanimity bar (§ 2.17).