The Rhode Island Home-Buying Process: Your Step-by-Step Checklist

Most Rhode Island residential offers are written on the standard Rhode Island Association of Realtors (RIAR) Purchase and Sale Agreement. It already includes the legal language Rhode Island expects — deposit handling, seller disclosure cross-reference, attorney-led closing terms, and contingencies. Read it cover to cover with your agent and ask about anything you don't understand before signing.

Cost: $0

Your agent will write your offer on the standard Rhode Island form and attach an earnest money check (often 1-3% of the purchase price) that shows you're serious. Include your financing terms, inspection contingency, and any closing-cost help you want from the seller. The deposit is held in escrow until closing — it is not paid to the seller directly.

Cost: 1-3% of purchase price (held in escrow)

The seller may accept, reject, or counter your offer. Counters usually focus on price, closing date, repairs, or closing-cost credits. Stay calm, stick to your numbers, and lean on your agent for comparable sales data so you know whether a counter is reasonable. Every change goes in writing and gets initialed by both sides.

Cost: $0

Since the 2024 NAR settlement, Rhode Island MLS listings no longer advertise a buyer-broker commission. Your buyer representation agreement sets what your agent earns, and you can ask the seller to cover some or all of that fee through a seller concession written into the purchase and sale agreement. Talk through the math with your agent so you know what comes out of pocket at closing.

Cost: Varies by negotiated commission

Rhode Island law requires sellers of most residential property to complete the state Seller Real Estate Property Disclosure form under §5-20.8. The form covers the roof, foundation, electrical, plumbing, septic, lead paint, cesspool status, underground oil tanks, flood history, and coastal zone status. Ask for this disclosure with your offer and read every line before you go under contract.

Cost: $0

Rhode Island brokers are required to hold earnest money in a separate, clearly labeled trust account at a federally insured bank with a Rhode Island branch. The deposit must usually be made by the close of the next business day after the broker receives it. Ask for written confirmation that your funds were deposited and which brokerage is holding them.

Cost: $0

Rhode Island is an attorney-state — the actual closing, title work, and deed transfer must be handled by a licensed Rhode Island attorney, not a title company alone. Hire your attorney as soon as your offer is accepted so they have time to run title, review the contract, and coordinate with the lender. Ask about flat-fee pricing and what is included.

Cost: $800-1,500 typical

Rhode Island's Seller Real Estate Property Disclosure under §5-20.8 is one of the most detailed in the country. Look closely at structural issues, water intrusion, environmental hazards, neighborhood disputes, and any Rhode Island-specific items like cesspool, oil tank, lead, coastal zone, and known sex-offender notices. Anything checked "yes" should drive an inspector question or a follow-up request for records.

Cost: $0

Rhode Island's Coastal Resources Management Council (CRMC) regulates properties near the shore, salt ponds, and coastal wetlands under §46-23, and state law requires the seller to disclose coastal jurisdiction. Cesspools are being phased out under §23-19.15 and trigger mandatory replacement when properties change hands in some areas. Ask your agent and attorney to confirm whether the home sits in CRMC jurisdiction or has a cesspool that must be replaced.

Cost: $0

Hire a licensed home inspector to spend 2-4 hours checking the roof, foundation, electrical, plumbing, HVAC, appliances, and visible water damage. Plan to attend so the inspector can show you what they find in person. Their written report is the most important document you'll get during this phase.

Cost: $400-700 typical

Federal law and Rhode Island's Lead Hazard Mitigation Act at §42-128.1 give you a ten-day window to inspect for lead-based paint hazards in homes built before 1978 (waivable in writing). Rhode Island's program is stricter than federal baseline, especially for older Providence-area housing. Ask a state-licensed lead inspector to test paint and dust, and read the EPA pamphlet your seller is required to give you.

Cost: $300-600 typical

Look up the property on the FEMA Flood Map Service Center to see if it sits in a Special Flood Hazard Area like Zone A or AE. Rhode Island's coastline, Narragansett Bay, and inland rivers put many homes in flood zones that require separate flood insurance on top of a standard homeowner's policy. Ask the seller for any prior elevation certificates or flood claims history.

Cost: $0

If the home is on private water or sewer, hire a specialist to inspect the septic system or well and run water-quality tests. Cesspools — older underground waste pits — are being phased out under Rhode Island §23-19.15 and may have to be replaced at the buyer's or seller's expense as a condition of the sale. Get any DEM (Department of Environmental Management) records about the system before closing.

Cost: $300-700 typical

Rhode Island sees high radon readings in many basements, so order a short-term radon test as part of your inspection. Many older Rhode Island homes also have buried oil tanks regulated by the DEM Underground Storage Tank program — if one exists, ask whether it has been properly closed, whether a DEM closure report is on file, and whether any soil contamination has been documented.

Cost: $150-400 typical

After you read the inspection reports, work with your agent to put any requests in writing. Common options are seller-funded repairs before closing, a credit at closing to cover the work yourself, or a price reduction. If the seller refuses to address major safety or structural issues, your inspection contingency usually lets you walk away and get your earnest money back.

Cost: $0

Pick your final lender and submit the full mortgage application with all supporting documents. Don't open new credit cards, finance a car, or change jobs while your loan is being underwritten — any of those moves can blow up your approval at the last minute.

Cost: $0-500 application fee typical

Your lender hires an independent appraiser to confirm the home is worth at least what you agreed to pay. The buyer pays the appraisal fee, usually $500-700, and the report goes to your lender first. If the appraisal comes in low, you can renegotiate, bring extra cash, or in some cases walk away under your appraisal contingency.

Cost: $500-700 typical

Talk with your loan officer about when to lock your rate. A lock guarantees your interest rate for 30, 45, or 60 days while underwriting finishes. Lock too early and you might owe an extension fee; lock too late and rates may rise. Get the lock confirmation in writing.

Cost: $0 (extension fees may apply)

The underwriter is the person at the lender who decides whether your loan gets final approval. They will ask for updated pay stubs, letters explaining deposits, or proof of insurance. Respond within 24 hours every time — slow responses are the number one reason closings get delayed.

Cost: $0

Your Rhode Island attorney searches public records to make sure the seller actually owns the home free and clear, and that no unpaid taxes, liens, or judgments will follow you onto the deed. Because Rhode Island requires an attorney for closing, this work is done by your lawyer rather than a title company alone. They will let you know if any title issues need to be cleared before closing.

Cost: Included in attorney fee

Title insurance protects you (owner's policy) and the lender (lender's policy) against problems with the title that didn't show up in the search — like a forgotten heir, an old lien, or a recording mistake. The lender's policy is required; the owner's policy is optional but strongly recommended. You usually pay both as a one-time premium at closing.

Cost: $1,500-3,500 typical (one-time)

Lenders require proof of homeowner's insurance for the first year before closing. If the home is in a FEMA Special Flood Hazard Area, you'll also need a separate flood insurance policy — standard homeowner's insurance does not cover flooding. Shop several insurers; coastal Rhode Island and storm-exposed inland areas can have big premium swings.

Cost: $800-2,500 per year typical for homeowner's; flood policies extra

Federal law requires your lender to give you a Closing Disclosure at least 3 business days before signing. It lists your loan terms, monthly payment, all closing costs, and the exact amount of cash you owe. Compare every line to your Loan Estimate. Flag anything that looks off to your lender and attorney right away — changes after this point can delay closing.

Cost: $0

Within 24 hours of closing, walk through the property with your agent. Confirm that any repairs the seller agreed to were completed, included appliances are still there, and the home is empty and broom-clean. Run the faucets, flush the toilets, test the heat or AC, and look for new damage from moving day.

Cost: $0

Rhode Island's Condominium Act at §34-36.1 requires the seller of a condo to obtain a resale certificate from the homeowners' association and provide the declaration, bylaws, current budget, latest financial statement, any pending litigation, and a statement of unpaid assessments. Read these closely — they tell you the monthly dues, what the building's reserves look like, and whether any special assessments are coming.

Cost: $100-300 typical (seller usually pays)

Rhode Island requires a licensed Rhode Island attorney to handle the deed, the note, the mortgage, and the disbursement of funds. Closings usually happen at the buyer's or lender's attorney's office and take 60-90 minutes. Bring a government-issued photo ID and any required documents your attorney asks for.

Cost: Attorney fee included in closing costs

Your Closing Disclosure shows the exact "cash to close" amount you need to bring. Most attorneys require a wire transfer or cashier's check — personal checks are usually not accepted. Confirm wire instructions by phone with someone you trust at the attorney's office; wire fraud is a real risk in Rhode Island real estate closings. In Rhode Island the real estate conveyance tax under §44-25 is customarily paid by the seller, so you should not see it on your side of the settlement unless the contract says otherwise.

Cost: Varies by purchase price and loan terms

Your attorney walks you through the closing package: the promissory note (your promise to repay the loan), the mortgage (which gives the lender a claim on the home), and the deed (which transfers ownership to you). Take your time, ask questions, and don't sign anything you don't understand. Once you sign, your attorney records the deed and mortgage with the city or town clerk.

Cost: $0

Once funds are disbursed and the deed is recorded with the local land evidence records, the home is officially yours. Collect every set of keys, garage remotes, and access codes. Your attorney will send you a recorded copy of the deed and title insurance policy within a few weeks — keep them in a safe place along with the closing package.

Cost: $0