LRB-4498/1
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2017 - 2018 LEGISLATURE
December 29, 2017 - Introduced by Representatives Horlacher, R. Brooks,
Jacque, Jagler, Katsma, Kremer, Murphy, Wichgers and Spiros,
cosponsored by Senators Olsen, Cowles, Marklein and Bewley. Referred to
Committee on Housing and Real Estate.
AB812,1,4 1An Act to repeal 440.975 (3) (c); to repeal and recreate 709.03 and 709.033;
2and to create 440.97 (2m) and 440.975 (3) (cm) of the statutes; relating to: real
3estate disclosure reports, the written reports of home inspectors, and providing
4an exemption from emergency rule procedures.
Analysis by the Legislative Reference Bureau
This bill updates the real estate disclosure report forms and changes the
requirements for a report submitted to a client by a registered home inspector.
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 of which the owner is aware. This bill
makes various technical changes to these forms, including grouping questions into
substantive categories, providing examples of different types of defects, and
providing additional instructions and explanatory material. The updated forms
include the disclosures required under current law. In addition to making technical
changes, the bill requires additional disclosures regarding the owner's awareness of
certain conditions related to the property, including 1) defects related to smoke
detectors or carbon monoxide detectors or violations of state or local smoke detector
or carbon monoxide detector laws; 2) unsafe levels of mold or other moisture
intrusions or conditions; 3) defects in, as opposed to just the presence of,
underground or aboveground fuel storage tanks; and 4) burial sites on the property.

The bill also adjusts the contents that a report submitted by a registered home
inspector to a client is required to contain. Under the bill, a report by a home
inspector must describe each defect detected during a home inspection. The bill
defines a “defect” as a condition of any component of an improvement that would
significantly impair the health or safety of future occupants or that, if not repaired,
removed, or replaced, would significantly shorten or adversely affect the expected
normal life of the component of the improvement. The bill also provides that a home
inspector may use the term “defect” in a written home inspection report only if the
use is consistent with the bill's definition of “defect.”
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB812,1 1Section 1. 440.97 (2m) of the statutes is created to read:
AB812,2,52 440.97 (2m) “Defect” means a condition of any component of an improvement
3that would significantly impair the health or safety of future occupants of a property
4or that, if not repaired, removed, or replaced, would significantly shorten or
5adversely affect the expected normal life of the component of the improvement.
AB812,2 6Section 2. 440.975 (3) (c) of the statutes is repealed.
AB812,3 7Section 3. 440.975 (3) (cm) of the statutes is created to read:
AB812,2,128 440.975 (3) (cm) Describes any defect that is detected by the home inspector
9during his or her home inspection. A home inspector is not required to use the term
10“defect” in describing a defect in the written report required under this subsection.
11A home inspector may not use the term “defect” in a written report required under
12this subsection unless that use is consistent with s. 440.97 (2m).
AB812,4 13Section 4. 709.03 of the statutes is repealed and recreated to read:
AB812,2,17 14709.03 Residential real estate condition report form. The report
15required under s. 709.02 with respect to real property, as defined in s. 709.001 (5) (a),
16shall be in substantially the following form and shall include at least all of the
17following information:
AB812,3,1
1REAL ESTATE CONDITION REPORT
AB812,3,33 DISCLAIMER
AB812,3,10 4This condition report concerns the real property located at .... in the .... (city)
5(village) (town) of ...., county of ...., state of Wisconsin. This report is a disclosure
6of the condition of that property in compliance with section 709.02 of the
7Wisconsin Statutes as of .... (month), .... (day), .... (year). It is not a warranty of any
8kind by the owner or any agents representing any party in this transaction and
9is not a substitute for any inspections or warranties that the parties may wish to
10obtain.
AB812,3,1411 A buyer who does not receive a fully completed copy of this report within 10 days after
12the acceptance of the contract of sale or option contract for the above-described real
13property has the right to rescind that contract (Wis. Stat. s. 709.02), provided the
14owner is required to provide this report under Wisconsin Statutes chapter 709.
AB812,3,16
16 NOTICE TO PARTIES REGARDING ADVICE OR INSPECTIONS
AB812,3,2217 Real estate licensees may not provide advice or opinions concerning whether or not
18an item is a defect for the purposes of this report or concerning the legal rights or
19obligations of parties to a transaction. The parties may wish to obtain professional
20advice or inspections of the property and to include appropriate provisions in a
21contract between them with respect to any advice, inspections, defects, or
22warranties.
AB812,3,24
24 A. OWNER'S INFORMATION
AB812,3,2525 A1. In this form, “aware” means the “owner(s)” have notice or knowledge.
AB812,4,5
1A2. In this form, “defect” means a condition that would have a significant adverse
2effect on the value of the property; that would significantly impair the health or
3safety of future occupants of the property; or that if not repaired, removed, or
4replaced would significantly shorten or adversely affect the expected normal life of
5the premises.
AB812,4,76 A3. In this form, “owner" means the person or persons, entity, or organization that
7owns the above-described real property.
AB812,4,108 An “owner" who transfers real estate containing one to four dwelling units, including
9a condominium unit and time-share property, by sale, exchange, or land contract is
10required to complete this report.
AB812,4,1611 Exceptions: An “owner” who is a personal representative, trustee, conservator, or
12fiduciary appointed by or subject to supervision by a court, and who has never
13occupied the property transferred is not required to complete this report. An “owner”
14who transfers property that has not been inhabited or who transfers property in a
15manner that is exempt from the real estate transfer fee is not required to complete
16this report. (Wis. Stat. s. 709.01)
AB812,4,2117 A4. The owner represents that to the best of the owner's knowledge, the responses
18to the following questions have been accurately checked as “yes,” “ no,” or “not
19applicable (N/A)” to the property being sold. If the owner responds to any question
20with “yes,” the owner shall provide, in the additional information area of this form,
21an explanation of the reason why the response to the question is “yes.”
AB812,4,2522 A5. If the transfer is of a condominium unit, the property to which this form applies
23is the condominium unit, the common elements of the condominium, and any limited
24common elements that may be used only by the owner of the condominium unit being
25transferred.
AB812,5,6
1A6. The owner discloses the following information with the knowledge that, even
2though this is not a warranty, prospective buyers may rely on this information in
3deciding whether and on what terms to purchase the property. The owner hereby
4authorizes the owner's agents and the agents of any prospective buyer to provide a
5copy of this report, and to disclose any information in the report, to any person in
6connection with any actual or anticipated sale of the property.
AB812,5,108 CAUTION: The lists of defects following each question below are examples only and
9are not the only defects that may properly be disclosed in response to each respective
10question.
AB812,6,5012 B. STRUCTURAL AND MECHANICAL - See PDF for table PDF
AB812,7,23
55 C. ENVIRONMENTAL - See PDF for table PDF
AB812,8,9
28 D. WELLS, SEPTIC SYSTEMS, STORAGE TANKS - See PDF for table PDF
AB812,8,83
14 E. TAXES, SPECIAL ASSESSMENTS, PERMITS, ETC. - See PDF for table PDF
AB812,9,127
88 F. LAND USE - See PDF for table PDF
AB812,10,105
50 G. ADDITIONAL INFORMATION - See PDF for table PDF
AB812,10,110
110 OWNER'S CERTIFICATION
AB812,11,3111 NOTE: Wisconsin Statute section 709.035 requires owners who, prior to acceptance
112of a purchase contract or an option to purchase, obtain information that would

1change a response on this report to submit a complete amended report or an
2amendment to the previously completed report to the prospective buyer within 10
3days of acceptance.
AB812,11,54 The owner certifies that the information in this report is true and correct to the best
5of the owner's knowledge as of the date on which the owner signs this report.
AB812,11,66 Owner ................................................ Date ..............
AB812,11,77 Owner ................................................ Date ..............
AB812,11,88 Owner ................................................ Date ..............
AB812,11,10
10 CERTIFICATION BY PERSON SUPPLYING INFORMATION
AB812,11,1411 A person other than the owner certifies that the person supplied information on
12which the owner relied for this report and that the information is true and correct
13to the best of the person's knowledge as of the date on which the person signs this
14report.
AB812,11,1515 Person ..................................... Items ....................................... Date .................
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