AB163: Bill Text

LRB-1787/2

PJK:sbb&jld:jf

2011 - 2012 LEGISLATURE

2011 Assembly BILL 163

May 31, 2011 - Introduced by Representatives Steineke, Rivard, Bies, Kerkman, Molepske Jr, Nass, A. Ott and Staskunas, cosponsored by Senators Grothman, Olsen and Schultz. Referred to Committee on Housing.

AB163,1,3 An Act to amend chapter 709 (title), 709.01 (1), 709.02 (1), 709.02 (2) (intro.), 709.03 (intro.) and 709.07; and to create 709.001 and 709.033 of the statutes; relating to: a disclosure report for sellers of vacant land.

Analysis by the Legislative Reference Bureau

Under current law, with certain exceptions, owners selling certain residential real property must give prospective buyers a form, known as the real estate condition report, on which the owner discloses certain conditions of the real property of which the owner is aware. The property to which the report applies is property that includes one to four dwelling units and that has been inhabited. A dwelling unit is defined as a structure or part of a structure that is used as a home or residence or sleeping place by one person or by two or more persons maintaining a common household. The report must be given to a prospective buyer no later than ten days after the seller has accepted an offer to purchase, creating a contract of sale. A prospective buyer may rescind a contract of sale if he or she does not receive a report within the specified time or if he or she timely receives a report but it is incomplete or discloses a defect of which the buyer was not aware.

This bill creates a vacant land disclosure report, similar to the real estate condition report, on which the owner of the property must disclose certain conditions of the property of which the owner is aware. For example, the owner must disclose whether he or she is aware of underground storage tanks on the property; of any planned public improvements that may result in special assessments; of any significant odor, noise, water intrusion, or other irritants coming from neighboring property; of any burial sites or archeological artifacts on the property; of whether the property is connected to electricity, cable, municipal water and sewer, telephone service, or natural gas; or of whether the land is in a certified farmland preservation zoning district or subject to a farmland preservation agreement. The property to which the vacant land disclosure report applies is property that does not include any buildings. The provisions in current law that apply to the real estate condition report regarding the timing for providing a report and rescinding a contract of sale on the basis of not receiving a report on time or receiving an incomplete report or a report that discloses a defect also apply to the new vacant land disclosure report.

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

AB163, s. 1 Section 1. Chapter 709 (title) of the statutes is amended to read:

AB163,2,2 Chapter 709

AB163,2,4 Disclosures by owners of residential real estate

AB163, s. 2 Section 2. 709.001 of the statutes is created to read:

AB163,2,6 709.001 Definitions. In this chapter:

AB163,2,8 (1) "Condominium unit" or "unit" has the meaning given for "unit" in s. 703.02 (15).

AB163,2,9 (2) "Dwelling unit" has the meaning given in s. 101.61 (1).

AB163,2,10 (3) "Public agency" has the meaning given in s. 66.0825 (3) (h).

AB163,2,11 (4) "Qualified 3rd party" has the meaning given in s. 452.23 (2) (b).

AB163,2,12 (5) "Real property" means either of the following:

AB163,2,14 (a) Real property that includes 1 to 4 dwelling units, but excluding property that has not been inhabited.

AB163,2,15 (b) Real property that does not include any buildings.

AB163,2,16 (6) "Time-share property" has the meaning given in s. 707.02 (32).

AB163, s. 3 Section 3. 709.01 (1) of the statutes is amended to read:

AB163,3,6 709.01 (1) Except as provided in sub. (2), all persons who transfer real property located in this state, including a condominium unit, as defined in s. 703.02 (15), and time-share property, as defined in s. 707.02 (32), but excluding property that has not been inhabited, that includes 1 to 4 dwelling units, as defined in s. 101.61 (1), 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.

AB163, s. 4 Section 4. 709.02 (1) of the statutes is amended to read:

AB163,3,25 709.02 (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, land surveyor, or structural pest control operator or, by an individual who is a qualified 3rd party, as defined in s. 452.23 (2) (b), 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, as defined in s. 66.0825 (3) (h). 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 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 to the owner or to the owner's agent.

AB163, s. 5 Section 5. 709.02 (2) (intro.) of the statutes is amended to read:

AB163,4,5 709.02 (2) (intro.) In regard to a transfer of a condominium unit, as defined in s. 703.02 (15), the owner shall furnish, in addition to and at the same time as the information required under sub. (1), all the following information as an addendum to the real estate condition report under s. 709.03 or 709.033:

AB163, s. 6 Section 6. 709.03 (intro.) of the statutes is amended to read:

AB163,4,10 709.03 Report Residential real estate condition report form. (intro.) The report required under s. 709.02 with respect to real property as defined in s. 709.001 (5) (a) shall be in substantially the following form and shall include at least all of the following information:

AB163, s. 7 Section 7. 709.033 of the statutes is created to read:

AB163,4,15 709.033 Vacant land disclosure report form. The report required under s. 709.02 with respect to real property as defined in s. 709.001 (5) (b) shall be in substantially the following form and shall include at least all of the following information:

AB163,4,16 VACANT LAND DISCLOSURE REPORT

AB163,4,17 DISCLAIMER

AB163,5,2 A. THIS DISCLOSURE REPORT CONCERNS THE REAL PROPERTY LOCATED AT .... IN THE .... (CITY) (VILLAGE) (TOWN) OF ...., COUNTY OF ...., STATE OF WISCONSIN. THIS REPORT IS A DISCLOSURE OF THE CONDITION OF THAT PROPERTY IN COMPLIANCE WITH SECTION 709.02 OF THE WISCONSIN STATUTES AS OF .... (MONTH), .... (DAY), .... (YEAR). IT IS NOT A WARRANTY OF ANY KIND BY THE OWNER OR ANY AGENTS REPRESENTING ANY PRINCIPAL IN THIS TRANSACTION AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THAT THE PRINCIPALS MAY WISH TO OBTAIN.

AB163,5,3 OWNER'S INFORMATION

AB163,5,8 B. 1. In this form, "am aware" means have notice or knowledge. In this form, "defect" means a condition that would have a significant adverse effect on the value of the property; that would significantly impair the health or safety of future occupants of the property; or that if not repaired, removed, or replaced would adversely affect the use of the property.

AB163,5,14 B. 2. The owner discloses the following information with the knowledge that, even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the property. The owner hereby authorizes any agent representing any principal in this transaction to provide a copy of this statement, and to disclose any information in the statement, to any person in connection with any actual or anticipated sale of the property.

AB163,5,19 B. 3. The owner represents that to the best of his or her knowledge the responses to the following statements have been accurately noted as "yes," "no," or "not applicable" to the property being sold. If the owner responds to any statement with "yes," the owner shall provide, in the additional information area of this form, an explanation of the reason why the response to the statement is "yes."

AB163,5,23 B. 4. If the transfer is of a condominium unit, the property to which this form applies is the condominium unit, the common elements of the condominium, and any limited common elements that may be used only by the owner of the condominium unit being transferred. - See PDF for table - See PDF for table

AB163,10,1 ADDITIONAL INFORMATION - See PDF for table - See PDF for table - See PDF for table

AB163,11,1 NOTICE REGARDING SEX OFFENDER REGISTRY

AB163,11,5 E. The prospective buyer may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections at [phone] or by visiting http://www.widocoffenders.org.

AB163,11,6 OWNER'S CERTIFICATION

AB163,11,8 F. The owner certifies that the information in this report is true and correct to the best of the owner's knowledge as of the date on which the owner signs this report.

AB163,11,9 Owner ....                             Date ....