SB73: Bill Text

LRB-1603/1

FFK:skw

2021 - 2022 LEGISLATURE

2021 Senate BILL 73

February 5, 2021 - Introduced by Senators Ballweg, Felzkowski, Feyen, Marklein, Nass and L. Taylor, cosponsored by Representatives Horlacher, Allen, Brandtjen, Brooks, Callahan, Dittrich, Gundrum, Jagler, Knodl, Krug, Kurtz, Moses, Murphy, Ortiz-Velez, Plumer, Ramthun, Skowronski, Wichgers and Zimmerman. Referred to Committee on Housing, Commerce and Trade.

SB73,1,4 An Act to renumber 709.03 (form) G4., G5., G6. and G7 and 709.033 (form) F10. and F11.; to amend 709.02 (1), 709.05 (1), 709.03 (form) F8. and 709.033 (form) E8.; and to create 709.03 (form) G4. and 709.033 (form) F10. of the statutes; relating 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 (real estate condition report), 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:

SB73,1 Section 1. 709.02 (1) of the statutes is amended to read:

SB73,3,2 709.02 (1) 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 or 709.033, whichever is applicable, subject to s. 709.035, except that the owner 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 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 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 report under s. 709.03 or 709.033 is considered complete only if the owner answered, or supplied information under s. 709.035 for, each item on the report. 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 rescission to the owner or to the owner's agent and is entitled to the return of any deposits or option fees paid in the transaction.

SB73,2 Section 2. 709.05 (1) of the statutes is amended to read:

SB73,3,17 709.05 (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. A report under s. 709.03 or 709.033 is considered complete only if the owner answered, or supplied information under s. 709.035 for, each item on the report.

SB73,3 Section 3. 709.03 (form) F8. of the statutes is amended to read: - See PDF for table

SB73,4 Section 4. 709.03 (form) G4. of the statutes is created to read: - See PDF for table - See PDF for table

SB73,5 Section 5 . 709.03 (form) G4., G5., G6. and G7 of the statutes are renumbered 709.03 (form) G5., G6., G7. and G8.

SB73,6 Section 6. 709.033 (form) E8. of the statutes is amended to read: - See PDF for table

SB73,7 Section 7. 709.033 (form) F10. of the statutes is created to read: - See PDF for table - See PDF for table

SB73,8 Section 8 . 709.033 (form) F10. and F11. of the statutes are renumbered 709.033 (form) F11. and F12.

SB73,9 Section 9 . Nonstatutory provisions.

SB73,5,22 (1) Real estate condition and vacant land disclosure reports. Notwithstanding s. 709.035, a property owner who furnished to a prospective buyer of the property an original or amended report before the effective date of this subsection need only submit an amended report with respect to the information required under s. 709.03 (form), 2019 stats., or by s. 709.033 (form), 2019 stats.

SB73,10 Section 10 . Initial applicability.

SB73,5,25 (1) Real estate condition and vacant land disclosure reports. This act first applies to reports that are furnished on the effective date of this subsection.

SB73,11 Section 11 . Effective date.

SB73,5,28 (1) This act takes effect on the first day of the 4th month beginning after publication.

SB73,5,29 (End)