(a) Definitions. The following definitions apply in the interpretation of the provisions of this section unless the context requires another meaning: (1) 'Mortgage loan' means a loan to a natural person made primarily for personal, family, or household purposes secured wholly or partially by a mortgage on residential property. (2) 'Residential property' means real property on which there is a dwelling house with accommodations for no more than four (4) dwelling units and occupied, or to be occupied, in whole or in part, by the obligor of the mortgage debt; provided, however, that residential property shall be limited to the principal residence of a person; provided, further, that residential property shall not include an investment property or residence other than a primary residence; and provided, further, that residential property shall not include residential property taken in whole or in part as collateral for a commercial loan. (b) In all circumstances in which an offer to purchase either a mortgage loan or residential property is made by an entity with a tax-exempt filing status under section 501(c)(3) of commercial loan. (b) In all circumstances in which an offer to purchase either a mortgage loan or residential property is made by an entity with a tax-exempt filing status under section 501(c)(3) of the Internal Revenue Code, or an entity controlled by an entity with such tax-exempt filing status, no mortgagee shall require, as a condition of sale or transfer to any such entity, any affidavit, statement, agreement, or addendum limiting ownership or occupancy of the residential property in question and, if obtained, such affidavit, statement, agreement, or addendum shall not provide a basis to avoid a sale or transfer, nor shall it be enforceable against such acquiring entity or any real estate broker, mortgagor, or settlement agent named in such affidavit, statement, or addendum. History of Section.P.L. 2016, ch. 345, § 1; P.L. 2016, ch. 359, § 1.
Rhode Island Legal Code