November 7, 2019 - Introduced by Representatives Horlacher, Stuck, Anderson,
Dittrich, Kuglitsch, Murphy, Spiros, Subeck and Tusler, cosponsored by
Senators Olsen and Bewley. Referred to Committee on Housing and Real
Estate.
AB596,1,4
1An Act to renumber 709.03 (form) G4., G5., G6. and G7 and 709.033 (form) F10.
2and F11.;
to amend 709.02 (1), 709.05 (1), 709.03 (form) F8. and 709.033 (form)
3E8.; and
to create 709.03 (form) G4. and 709.033 (form) F10. of the statutes;
4relating to: real estate disclosure reports.
Analysis by the Legislative Reference Bureau
Under current law, with certain exceptions, an owner selling residential real
property or vacant land must give a prospective buyer a form, known as a real estate
condition report for residential real property and known as the vacant land
disclosure report for vacant land, on which the owner discloses certain conditions of,
and other information about, the real property. Current law provides that if a
prospective buyer does not receive a real estate condition report within ten days after
a contract of sale or option contract (contract) is accepted, the prospective buyer may
rescind the contract by delivering written notice to the owner. Under the bill, a
prospective buyer who rescinds a contract under such circumstances is also entitled
to the return of any deposits or option fees the prospective buyer paid as part of the
transaction.
Under current law, a prospective buyer is entitled to a completed copy of a real
estate condition report, and if the buyer receives an incomplete report, the buyer may
rescind the contract and is entitled to any deposits or option fees the buyer has paid
as part of the transaction. The bill specifies that a real estate condition report is
considered complete only if the seller has completed or otherwise provided
information for each item on the report.
Finally, the bill adds to the real estate condition report forms a requirement
that the owner must indicate whether the owner is a foreign person for purposes of
federal taxation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB596,1
1Section
1. 709.02 (1) of the statutes is amended to read:
AB596,3,22
709.02
(1) In regard to transfers described in s. 709.01, the owner of the
3property shall furnish, not later than 10 days after acceptance of a contract of sale
4or option contract, to the prospective buyer of the property a completed copy of the
5report under s. 709.03 or 709.033, whichever is applicable, subject to s. 709.035,
6except that the owner may substitute for any entry information supplied by a
7licensed engineer, professional land surveyor, as defined in s. 443.01 (7m), or
8structural pest control operator, by an individual who is a qualified 3rd party, or by
9a contractor about matters within the scope of the contractor's occupation, if the
10information is in writing and is furnished on time and if the entry to which it relates
11is identified, and except that the owner may substitute for any entry information
12supplied by a public agency. Information that substitutes for an entry on the report
13under s. 709.03 or 709.033 and that is supplied by a person specified in this section
14may be submitted and certified on a supplemental report prepared by the person, as
15long as the information otherwise satisfies the requirements under this section.
A
16report under s. 709.03 or 709.033 is considered complete only if the owner answered
17or supplied information under s. 709.035 for each item on the report. A prospective
18buyer who does not receive a report within the 10 days may, within 2 business days
19after the end of that 10-day period, rescind the contract of sale or option contract by
1delivering a written notice of
recision
rescission to the owner or to the owner's agent
2and is entitled to the return of any deposits or option fees paid in the transaction.
AB596,2
3Section
2. 709.05 (1) of the statutes is amended to read:
AB596,3,174
709.05
(1) Except as provided in sub. (2) (b), if a buyer receives a report after
5submission of a contract of sale or option contract to the owner or the owner's agent,
6the buyer may, after receipt of that report by the prospective buyer and before the
7applicable deadline, rescind in writing a contract of sale or option contract if a defect,
8as defined in the report, is disclosed, without any liability on his or her part, and a
9buyer is entitled to the return of any deposits or option fees paid in the transaction.
10A prospective buyer who receives a report that is incomplete or that contains an
11inaccurate assertion that an item is not applicable and who is not aware of the defects
12that the owner failed to disclose may, within 2 business days after receipt of that
13report, rescind in writing a contract of sale or option contract without any liability
14on his or her part and is entitled to the return of any deposits or option fees paid in
15the transaction.
A report under s. 709.03 or 709.033 is considered complete only if
16the owner answered or supplied information under s. 709.035 for each item on the
17report.
AB596,5
38Section 5
. 709.03 (form) G4., G5., G6. and G7 of the statutes are renumbered
39709.03 (form) G5., G6., G7. and G8.
AB596,8
15Section 8
. 709.033 (form) F10. and F11. of the statutes are renumbered
16709.033 (form) F11. and F12.
AB596,9
17Section 9
.
Nonstatutory provisions.
AB596,5,2218
(1)
Real estate condition and vacant land disclosure reports. 19Notwithstanding s. 709.035, a property owner who furnished to a prospective buyer
20of the property an original or amended report before the effective date of this
21subsection need only submit an amended report with respect to the information
22required under s. 709.03 (form), 2017 stats., or by s. 709.033 (form), 2017 stats.
AB596,10
23Section 10
.
Initial applicability.
AB596,5,2524
(1)
Real estate condition and vacant land disclosure reports. This act first
25applies to reports that are furnished on the effective date of this subsection.
AB596,5,2727
(1)
This act takes effect on July 1, 2020.
