Wisconsin Disclosure Statement

CHAPTER 709 DISCLOSURES BY OWNERS OF RESIDENTIAL REAL ESTATE

    709.01 Requirements for transfer.
    709.02 Disclosure.
    709.03 Report form.
    709.035 Amendments to report.
    709.04 Indication of compliance.
    709.05 Right to rescind.
    709.06 Good faith.
    709.07 Liability precluded.
    709.08 Waiver.

709.01 Requirements for transfer.

                 (1) Except as provided in sub. (2), all persons who transfer  real property located in this state, including a condominium unit, as defined in s. 703.02 (15), and time-share property, as defined in s. 707.02 (32), but excluding property that has not been inhabited, that includes 1 to 4 dwelling units, as defined in s. 101.61 (1), by sale, exchange or land contract, unless the transfer is exempt from the real estate transfer fee under s.77.25, shall comply with ss. 709.02 to 709.04 and 709.06.

                 (2) 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.

                 History: 1991 a. 162; 1995 a. 180.
 

709.02 Disclosure.

                 In regard to transfers described in s. 709.01, the owner of the property shall furnish, not later than 10 days after acceptance of a contract of sale or option contract, to the prospective buyer of the property a completed copy of the report under s.709.03, subject to s. 709.035, except that the owner may substitute for any entry information supplied by a licensed engineer, land surveyor or structural pest control operator or by an individual who is a qualified 3rd party, as defined in s. 452.23 (2) (b), or by a contractor about matters within the scope of the contractor's occupation if the information is in writing and is furnished on time and if the entry to which it relates is identified and except that the owner may substitute for any entry information supplied by a public agency, as defined in s. 66.0825 (3) (h). Information that substitutes for an entry on the report under s. 709.03 and that is supplied by a person specified in this section may be submitted and certified on a supplemental report prepared by the person, as long as the information otherwise satisfies the requirements under this section. A prospective buyer who does not receive a report within the 10 days may, within 2 business days after the end of that 10-day period, rescind the contract of sale or option contract by delivering a written notice of recision to the owner or to the owner's agent.

                 History: 1991 a. 162; 1995 a. 180; 1999 a. 150 s. 672.
 

709.03 Report form.

          The report required under s. 709.02 shall be in substantially the following form and shall include at least all of the following information:

[See USLF form WI-37014]

709.035 Amendments to report.

                 If at any time after completing a report, whether the original or an amended report, but before acceptance of a contract of sale or option contract an owner obtains information or becomes aware of any condition that would change a response on the completed report, the owner shall submit to a prospective buyer, within the time required under s. 709.02, a complete amended report or an amendment to the previously completed report, along with a copy of the previously completed report if not already submitted to the prospective buyer, that states all of the following:

                 (1) The address of the property.

                 (2) The owner's name.

                 (3) The date of the report being amended.

                 (4) The number of any statement on the report that is affected by the new information.

                 (5) How the owner's original response to the statement is changed and, if the response is changed to "yes", an explanation of the reason why the response to the statement is "yes".

                 History: 1995 a. 180.
 

709.04 Indication of compliance.

                 An owner shall indicate compliance with this chapter on the contract of sale or option contract, on the closing statement or in an addendum to one of those documents.

                 History: 1991 a. 162; 1995 a. 180.
 

709.05 Right to rescind.

                 (1) Except as provided in sub. (2) (b), if a buyer receives a report after submission of a contract of sale or option contract to the owner or the owner's agent, the buyer may, after receipt of that report by the prospective buyer and before the applicable deadline, rescind in writing a contract of sale or option contract if a defect, as defined in the report, is disclosed, without any liability on his or her part, and a buyer is entitled to the return of any deposits or option fees paid in the transaction. A prospective buyer who receives a report that is incomplete or that contains an inaccurate assertion that an item is not applicable and who is not aware of the defects that the owner failed to disclose may, within 2 business days after receipt of that report, rescind in writing a contract of sale or option contract without any liability on his or her part and is entitled to the return of any deposits or option fees paid in the transaction.

                 (2)(a) 1. Except as provided in subd. 2., a buyer may not rescind a contract of sale or option contract under this section if he or she receives a complete report before submitting the contract of sale or option contract to the owner or the owner's agent.

                 2. Unless par. (b) applies, a buyer under subd. 1. who, after submitting the contract of sale or option contract to the owner or the owner's agent, receives an amended report, or an amendment to the report previously received, that discloses a defect that was not disclosed in the report previously received may, after receipt of the amended report or amendment to the report and before the applicable deadline, rescind in writing the contract of sale or option contract and is entitled to the return of any deposits or option fees paid in the transaction.

                (b) A buyer may not rescind a contract of sale or option contract under this section on the basis of a defect disclosed in a report, amended report or amendment to a report if the buyer was aware, or had written notice, of the nature and extent of the defect at the time the contract of sale or option contract was submitted to the owner or the owner's agent.

                 (3) Rescissions under this section are timely if they are delivered to the owner or the owner's agent within 2 business days after the prospective buyer or the prospective buyer's agent receives the report, amended report or amendment to the report.

                 (4) The right to rescind under this section is the only remedy under this chapter.

                 History: 1991 a. 162; 1995 a. 180.
 

709.06 Good faith.

                 The owner shall perform each act, and make each disclosure, required by this chapter with honesty in fact.

                 History: 1991 a. 162.
 

709.07 Liability precluded.

                 An owner is not liable for an error or omission in a report under s. 709.03 if the owner had no knowledge of that error or omission, if the error or omission was based on information provided by a public agency, as defined in s. 66.0825 (3) (h), or by a licensed engineer, land surveyor, structural pest control operator or qualified 3rd party, as defined in s. 452.23 (2) (b), or by a contractor about matters within the scope of the contractor's occupation.

                 History: 1991 a. 162; 1999 a. 150 s. 672.
 

709.08 Waiver.

                 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.

                 History: 1991 a. 162.