Key Takeaways
- Wisconsin REQUIRES a mandatory Real Estate Condition Report for most residential property sales
- The seller must complete the disclosure form and provide it to the buyer
- Chapter 709 of Wisconsin Statutes governs property disclosures
- Licensees must disclose known material adverse facts that affect property value
- Lead-based paint disclosure IS required for pre-1978 homes (federal law)
Wisconsin Property Disclosures
Wisconsin requires sellers to provide detailed property disclosures under Chapter 709 of Wisconsin Statutes.
Mandatory Seller Disclosure (Real Estate Condition Report)
Wisconsin law REQUIRES sellers to provide a Real Estate Condition Report to buyers of residential property.
Key Points
| Requirement | Details |
|---|---|
| Statutory authority | Chapter 709, Wisconsin Statutes |
| Form requirement | Real Estate Condition Report |
| Who completes | Seller |
| When provided | Before acceptance of offer |
Important: Wisconsin differs from states like Alabama that do NOT require seller disclosures. Wisconsin has comprehensive disclosure requirements.
What Must Be Disclosed
The Real Estate Condition Report requires sellers to disclose:
Structural Components
| Item | Disclosure Required |
|---|---|
| Foundation | Known defects, cracks, settling |
| Roof | Age, leaks, repairs |
| Walls and ceilings | Water damage, structural issues |
| Floors | Condition, known defects |
Systems
| System | Disclosure Required |
|---|---|
| Plumbing | Leaks, repairs, well information |
| Electrical | Known issues, upgrades |
| Heating/Cooling | Type, age, condition |
| Water heater | Age, condition |
Environmental Concerns
| Issue | Disclosure Required |
|---|---|
| Flooding | History of water intrusion |
| Radon | Test results if known |
| Lead paint | Federal disclosure for pre-1978 |
| Underground tanks | Location and status |
| Mold | Known presence |
| Asbestos | Known presence |
Legal Issues
| Issue | Disclosure Required |
|---|---|
| Zoning violations | Known violations |
| Easements | Known easements affecting property |
| Boundary disputes | Known disputes |
| Assessments | Special assessments |
Exemptions from Disclosure
Certain transfers are exempt from the Real Estate Condition Report requirement:
| Exempt Transfers | Description |
|---|---|
| First sale of new construction | Builder/developer warranty applies |
| Foreclosure sales | Bank-owned property |
| Court-ordered sales | Estate sales, divorce |
| Transfer between co-owners | Family or business transfers |
| Transfer to spouse or child | Family transactions |
| Government transfers | Municipal or state properties |
Buyer's Rights
Inspection Rights
| Right | Description |
|---|---|
| Professional inspection | Buyer may hire inspector |
| Review period | Time to review condition report |
| Ask questions | May request clarification from seller |
Remedies for Non-Disclosure
If seller fails to disclose or misrepresents:
| Remedy | Description |
|---|---|
| Rescission | Cancel the contract |
| Damages | Sue for actual damages |
| Attorney fees | May recover legal costs |
Licensee Disclosure Obligations
Even with seller disclosures, licensees have their own obligations:
Material Adverse Facts
Licensees must disclose material adverse facts they know about:
| Category | Examples |
|---|---|
| Physical defects | Foundation issues, roof leaks |
| Environmental hazards | Contamination, flooding |
| Legal issues | Zoning violations, liens |
| Off-site conditions | Factors materially affecting value |
Key Duty: Licensees owe the duty to disclose material adverse facts in writing to ALL parties, unless disclosure is prohibited by law.
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Federal Law: Lead-based paint disclosure is required regardless of other Wisconsin disclosure requirements. This is federal law that applies in all states.
Which statement is TRUE about Wisconsin's property disclosure requirements?
Under Wisconsin law, which transfer is EXEMPT from the Real Estate Condition Report requirement?
What must a Wisconsin licensee disclose to ALL parties in a transaction?