AB827: Bill Text

Analysis by the Legislative Reference Bureau

Under current law, with certain exceptions, an owner of residential real property with one to four dwelling units (residential real property) must give a prospective buyer a form, known as a real estate condition report form, on which the owner discloses certain conditions of, and other information about, the residential real property of which the owner is aware. The bill requires an owner to disclose on the report whether the owner has notice or knowledge of the presence of radon on the residential real property, tests for radon conducted on the residential real property, or the presence of radon mitigation systems serving the residential real property.

The bill also requires that, in addition to the report, the owner must provide to the prospective buyer a pamphlet developed by the Department of Health Services that describes the risks of, testing for, and mitigation of indoor radon. Under current law, DHS must develop and disseminate current radon information to the news media, builders, realtors, and the general public, and the bill specifies that DHS must develop and disseminate the pamphlet.

Finally, the bill requires that the owner of residential real property must include in a contract of sale or option contract a statement explaining potential risks from dangerous levels of indoor radon gas.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB827,1 Section 1. 254.34 (1) (h) 1. of the statutes is amended to read:

AB827,2,5 254.34 (1) (h) 1. Develop and disseminate current radon information to the news media, builders, realtors, and the general public, including a pamphlet for home buyers and sellers that describes the risks of, testing for, and mitigation of indoor radon.

AB827,2 Section 2. 709.01 (1) of the statutes is amended to read:

AB827,2,11 709.01 (1) Except as provided in sub. (2), all persons who transfer real property located in this state, including a condominium unit and time-share property, 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, and 709.09.

AB827,3 Section 3. 709.02 (1) of the statutes is renumbered 709.02 (1) (a) and amended to read:

AB827,2,21 709.02 (1) (a) In Subject to par. (b), in regard to transfers a transfer described in s. 709.01, the owner of the real property shall furnish, not later than 10 days after acceptance of a contract of sale or option contract, to the prospective buyer of the real property a completed copy of the a report under s. 709.03 or 709.033, whichever is applicable, subject to s. 709.035, except that and, for real property, as defined in s. 709.001 (5) (a), a copy of the pamphlet developed by the department of health services under s. 254.34 (1) (h) 1. that describes the risks of, testing for, and mitigation of indoor radon.

AB827,3,12 (b) For any entry in a report furnished under par. (a), the owner of the real property may substitute for any entry information supplied by a licensed engineer, professional land surveyor, as defined in s. 443.01 (7m), or structural pest control operator, by an individual who is a qualified 3rd party, 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. For any entry in a report furnished under par. (a), the owner may substitute for any entry information supplied by a public agency. Information that substitutes for an entry on the report under s. 709.03 or 709.033 and that is supplied by a person specified in this section paragraph 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.

AB827,3,17 (c) A prospective buyer who does not receive a report or, if applicable, the pamphlet within the 10 days 10-day period described in par. (a) 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.

AB827,4 Section 4 . 709.03 (form) C2m. of the statutes is created to read:

AB827,4,18 709.03 (form) - See PDF for table

AB827,5 Section 5. 709.03 (form) C2. of the statutes is amended to read:

AB827,5,18 709.03 (form) - See PDF for table

AB827,6 Section 6. 709.08 of the statutes is amended to read:

AB827,5,23 709.08 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 or pamphlet required under s. 709.02.

AB827,7 Section 7. 709.09 of the statutes is created to read:

AB827,6,4 709.09 Additional disclosure; risks from indoor radon. In regard to a transfer described in s. 709.01, the owner of real property, as defined in s. 709.001 (5) (a), shall include in the contract of sale or option contract a statement explaining potential risks from dangerous levels of indoor radon gas in substantially the following form: “The Department of Health Services recommends testing for radon during real estate transactions to better understand radon levels and lung cancer risk. Radon is a naturally occurring, odorless, colorless, radioactive gas that can cause lung cancer. Radon can leak into your home and is common in Wisconsin. Behind smoking, radon is the 2nd leading cause of lung cancer in the United States.”

AB827,8 Section 8 . Nonstatutory provisions.

AB827,6,10 (1) Real estate condition report. Notwithstanding s. 709.035, the treatment of s. 709.03 (form) C2. and C2m. does not require a property owner that has furnished to a prospective buyer of the property an original or amended report before the effective date of this subsection to submit an amended report with respect to the information required by s. 709.03 (form) C2. and C2m.

AB827,9 Section 9 . Initial applicability.

AB827,6,13 (1) Real estate condition report. The treatment of s. 709.03 (form) C2. and C2m. first applies to a report that is furnished on the effective date of this subsection.

AB827,10 Section 10 . Effective date.

AB827,6,16 (1) This act takes effect on the first day of the 7th month beginning after publication.

AB827,6,17 (End)