Real Estate Deposit Requirements
Rhode Island General Laws 5-20.5-26 (v) reads, "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 transaction, the broker or salesperson shall deposit the monies with the general treasurer within one hundred eighty (180) days of the date of the original deposit, those monies to be held in trust by the general treasurer until the dispute is mediated, arbitrated, litigated, or otherwise resolved by the parties. The parties to a real estate transaction may agree in writing to 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."
Link to law: http://www.rilin.state.ri.us/Statutes/TITLE5/5-20.5/5-20.5-26.HTM
In accordance with the above mentioned law, the Office of the General Treasurer has provided standard forms.
*Please send all forms to: Office of the General Treasurer, 82 Smith St., State House Room 102, Providence, RI 02903
Sending Deposits to the General Treasurer:
- Escrow Deposit Transmittal Form: The real estate broker shall submit this form to the General Treasurer's Office with a copy to the Department of Business Regulation.
After Dispute is Resolved, Release of Deposits from the General Treasurer:
After the parties resolve the dispute, they may release the funds by submitting to the Office of the General Treasurer a Buyers Release, Sellers Release and Broker Affidavit:
- Buyers Release: All of the buyers must sign and have notarized a release of the funds by stating how the funds shall be disbursed and to whom.
- Sellers Release: All of the sellers must sign and have notarized a release of the funds by stating how the funds shall be disbursed and to whom.
- Broker Affidavit: The real estate broker shall sign and submit this form to the General Treasurer's Office. Note that the real estate broker acting as an agent of the brokerage is the claimant.
- Court Order: The funds may be released by the General Treasurer once the dispute is mediated, arbitrated or litigated.