LRB-1787/2
PJK:sbb&jld:jf
2011 - 2012 LEGISLATURE
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
1An Act to amend chapter 709 (title), 709.01 (1), 709.02 (1), 709.02 (2) (intro.),
2709.03 (intro.) and 709.07; and
to create 709.001 and 709.033 of the statutes;
3relating 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
1Section
1. Chapter 709 (title) of the statutes is amended to read:
AB163,2,43
Disclosures by owners of
4residential real estate
AB163, s. 2
5Section
2. 709.001 of the statutes is created to read:
AB163,2,6
6709.001 Definitions. In this chapter:
AB163,2,8
7(1) "Condominium unit" or "unit" has the meaning given for "unit" in s. 703.02
8(15).
AB163,2,9
9(2) "Dwelling unit" has the meaning given in s. 101.61 (1).
AB163,2,10
10(3) "Public agency" has the meaning given in s. 66.0825 (3) (h).
AB163,2,11
11(4) "Qualified 3rd party" has the meaning given in s. 452.23 (2) (b).
AB163,2,12
12(5) "Real property" means either of the following:
AB163,2,1413
(a) Real property that includes 1 to 4 dwelling units, but excluding property
14that has not been inhabited.
AB163,2,1515
(b) Real property that does not include any buildings.
AB163,2,16
16(6) "Time-share property" has the meaning given in s. 707.02 (32).
AB163, s. 3
17Section
3. 709.01 (1) of the statutes is amended to read:
AB163,3,6
1709.01
(1) Except as provided in sub. (2), all persons who transfer real property
2located in this state, including a condominium unit
, as defined in s. 703.02 (15), and
3time-share property,
as defined in s. 707.02 (32), but excluding property that has not
4been inhabited, that includes 1 to 4 dwelling units, as defined in s. 101.61 (1), by sale,
5exchange
, or land contract, unless the transfer is exempt from the real estate
6transfer fee under s. 77.25, shall comply with ss. 709.02 to 709.04 and 709.06.
AB163, s. 4
7Section
4. 709.02 (1) of the statutes is amended to read:
AB163,3,258
709.02
(1) In regard to transfers described in s. 709.01, the owner of the
9property shall furnish, not later than 10 days after acceptance of a contract of sale
10or option contract, to the prospective buyer of the property a completed copy of the
11report under s. 709.03
or 709.033, whichever is applicable, subject to s. 709.035,
12except that the owner may substitute for any entry information supplied by a
13licensed engineer, land surveyor
, or structural pest control operator
or, by an
14individual who is a qualified 3rd party,
as defined in s. 452.23 (2) (b), or by a
15contractor about matters within the scope of the contractor's occupation
, if the
16information is in writing and is furnished on time and if the entry to which it relates
17is identified
, and except that the owner may substitute for any entry information
18supplied by a public agency
, as defined in s. 66.0825 (3) (h). Information that
19substitutes for an entry on the report under s. 709.03
or 709.033 and that is supplied
20by a person specified in this section may be submitted and certified on a
21supplemental report prepared by the person, as long as the information otherwise
22satisfies the requirements under this section. A prospective buyer who does not
23receive a report within the 10 days may, within 2 business days after the end of that
2410-day period, rescind the contract of sale or option contract by delivering a written
25notice of recision to the owner or to the owner's agent.
AB163, s. 5
1Section
5. 709.02 (2) (intro.) of the statutes is amended to read:
AB163,4,52
709.02
(2) (intro.) In regard to a transfer of a condominium unit,
as defined in
3s. 703.02 (15), the owner shall furnish, in addition to and at the same time as the
4information required under sub. (1), all the following information as an addendum
5to the
real estate condition report under s. 709.03
or 709.033:
AB163, s. 6
6Section
6. 709.03 (intro.) of the statutes is amended to read:
AB163,4,10
7709.03 Report Residential real estate condition report form. (intro.)
8The report required under s. 709.02
with respect to real property as defined in s.
9709.001 (5) (a) shall be in substantially the following form and shall include at least
10all of the following information:
AB163, s. 7
11Section
7. 709.033 of the statutes is created to read:
AB163,4,15
12709.033 Vacant land disclosure report form. The report required under
13s. 709.02 with respect to real property as defined in s. 709.001 (5) (b) shall be in
14substantially the following form and shall include at least all of the following
15information:
AB163,4,1616
VACANT LAND
DISCLOSURE REPORT
AB163,5,218
A. THIS DISCLOSURE REPORT CONCERNS THE REAL PROPERTY
19LOCATED AT .... IN THE .... (CITY) (VILLAGE) (TOWN) OF ...., COUNTY OF ....,
20STATE OF WISCONSIN. THIS REPORT IS A DISCLOSURE OF THE
21CONDITION OF THAT PROPERTY IN COMPLIANCE WITH SECTION 709.02 OF
22THE WISCONSIN STATUTES AS OF .... (MONTH), .... (DAY), .... (YEAR). IT IS
23NOT A WARRANTY OF ANY KIND BY THE OWNER OR ANY AGENTS
24REPRESENTING ANY PRINCIPAL IN THIS TRANSACTION AND IS NOT A
1SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THAT THE
2PRINCIPALS MAY WISH TO OBTAIN.
AB163,5,33
OWNER'S INFORMATION
AB163,5,84
B. 1. In this form, "am aware" means have notice or knowledge. In this form,
5"defect" means a condition that would have a significant adverse effect on the value
6of the property; that would significantly impair the health or safety of future
7occupants of the property; or that if not repaired, removed, or replaced would
8adversely affect the use of the property.
AB163,5,149
B. 2. The owner discloses the following information with the knowledge that,
10even though this is not a warranty, prospective buyers may rely on this information
11in deciding whether and on what terms to purchase the property. The owner hereby
12authorizes any agent representing any principal in this transaction to provide a copy
13of this statement, and to disclose any information in the statement, to any person in
14connection with any actual or anticipated sale of the property.
AB163,5,1915
B. 3. The owner represents that to the best of his or her knowledge the
16responses to the following statements have been accurately noted as "yes," "no," or
17"not applicable" to the property being sold. If the owner responds to any statement
18with "yes," the owner shall provide, in the additional information area of this form,
19an explanation of the reason why the response to the statement is "yes."
AB163,5,2320
B. 4. If the transfer is of a condominium unit, the property to which this form
21applies is the condominium unit, the common elements of the condominium, and any
22limited common elements that may be used only by the owner of the condominium
23unit being transferred.
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AB163,11,11
NOTICE REGARDING SEX OFFENDER REGISTRY
AB163,11,52
E. The prospective buyer may obtain information about the sex offender
3registry and persons registered with the registry by contacting the Wisconsin
4Department of Corrections at (608) 240-5830 or by visiting
5http://www.widocoffenders.org.
AB163,11,66
OWNER'S CERTIFICATION
AB163,11,87
F. The owner certifies that the information in this report is true and correct to
8the best of the owner's knowledge as of the date on which the owner signs this report.
AB163,11,99
Owner ....
Date ....
AB163,11,1010
Owner ....
Date ....
AB163,11,1211
CERTIFICATION BY PERSON SUPPLYING
12
INFORMATION
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G. A person other than the owner certifies that he or she has supplied
14information on which the owner relied for this report and that that information is
15true and correct to the best of that person's knowledge as of the date on which the
16person signs this report.
AB163,11,1717
Person ....
Items ....
Date ....
AB163,12,1
1Person ....
Items ....
Date ....
AB163,12,22
Person ....
Items ....
Date ....
AB163,12,33
NOTICE REGARDING ADVICE OR INSPECTIONS
AB163,12,84
H. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN
5PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO
6PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN
7THEM WITH RESPECT TO ANY ADVICE, INSPECTIONS, DEFECTS, OR
8WARRANTIES.