A Wisconsin residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Wisconsin Have To Disclose Property Defects?
Wisconsin does require real estate sellers to disclose any material defects with a property. In most cases, this is through a standardized disclosure form provided by statute, but any disclosure which provides the required information is valid.
State law allows the buyer and seller to, in writing only, waive the use of a standard form and handle required disclosures another way. However, the seller always has a duty to be truthful in answering the buyer’s questions, and disclose any hidden defects with the property that may not be apparent with ordinary due diligence.
Wisconsin exempts the following common transfers, among others, from the disclosure form requirement, if the person doing the transfer has never occupied the property being transferred:
- Personal representatives
- Trustees
- Conservators
- Fiduciaries who are appointed by a court or under court supervision
Required Seller Disclosures in Wisconsin
Wisconsin sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Real Estate Condition Report: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
- Condominium Addendum to Real Estate Condition Report: A condo sale requires further documentation of the property’s condition, plus information on common areas of the building and auxiliary fees.
Sources
- 1 Wis. Stat. § 709.08
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A buyer may waive in writing the right to rescind under s. 709.05. If a buyer proceeds to closing, the buyer’s right to rescind under s. 709.05 is terminated. A buyer may waive in writing the right to receive the report required under s. 709.02.Source Link
- 2 Wis. Stat. § 709.01
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Subsection (1) does not apply to any of the following persons, if those persons have never occupied the property transferred:
(a) Personal representatives.
(b) Trustees.
(c) Conservators.
(d) Fiduciaries who are appointed by, or subject to the supervision of, a court.
Source Link
