LRBs0262/2
PJK:skg:ch
1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
To 1995 ASSEMBLY BILL 391
October 11, 1995 - Offered by Representatives Vrakas, Wood, Hanson and Foti.
AB391-ASA1,1,4 1An Act to renumber and amend 709.01 and 709.05; to amend 709.02 and
2709.04; to repeal and recreate 709.03 and 709.03 (form) C. 8.; and to create
3709.01 (2), 709.035, 709.05 (2) (a) 2., 709.05 (2) (b) and 709.05 (3) of the statutes;
4relating to: disclosure of conditions of residential real estate.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB391-ASA1, s. 1 5Section 1. 709.01 of the statutes is renumbered 709.01 (1) and amended to
6read:
AB391-ASA1,2,27 709.01 (1) All Except as provided in sub. (2), all persons; except personal
8representatives, trustees and conservators and except fiduciaries who are appointed
9by, or subject to supervision by, a court if those persons have never occupied the
10property transferred;
who transfer real property located in this state, including a
11condominium unit, as defined in s. 703.02 (15), and time-share property, as defined
12in s. 707.02 (32), but excluding property that has not been inhabited, that includes
131 to 4 dwelling units, as defined in s. 101.61 (1), by sale, exchange or land contract,

1unless the transfer is exempt from the real estate transfer fee under s. 77.25, shall
2comply with ss. 709.02 to 709.04 and 709.06.
AB391-ASA1, s. 2 3Section 2. 709.01 (2) of the statutes is created to read:
AB391-ASA1,2,54 709.01 (2) Subsection (1) does not apply to any of the following persons, if those
5persons have never occupied the property transferred:
AB391-ASA1,2,66 (a) Personal representatives.
AB391-ASA1,2,77 (b) Trustees.
AB391-ASA1,2,88 (c) Conservators.
AB391-ASA1,2,99 (d) Fiduciaries who are appointed by, or subject to the supervision of, a court.
AB391-ASA1, s. 3 10Section 3. 709.02 of the statutes is amended to read:
AB391-ASA1,3,2 11709.02 Disclosure. In regard to transfers described in s. 709.01, the owner
12of the property shall furnish, not later than 10 days after acceptance of the a contract
13of sale or option contract, to the prospective buyer of the property a completed copy
14of the report under s. 709.03, subject to s. 709.035, except that the owner may
15substitute for any entry information supplied by a licensed engineer, land surveyor
16or structural pest control operator or by an individual who is a qualified 3rd party,
17as defined in s. 452.23 (2) (b), or by a contractor about matters within the scope of the
18contractor's occupation if the information is in writing and is furnished on time and
19if the entry to which it relates is identified and except that the owner may substitute
20for any entry information supplied by a public agency, as defined in s. 66.073 (3) (h).
21Information that substitutes for an entry on the report under s. 709.03 and that is
22supplied by a person specified in this section may be submitted and certified on a
23supplemental report prepared by the person, as long as the information otherwise
24satisfies the requirements under this section.
A prospective buyer who does not
25receive a report within the 10 days may, within 2 business days after the end of that

110-day period, rescind the contract of sale or option contract by delivering a written
2notice of recision to the seller owner or to the seller's owner's agent.
AB391-ASA1, s. 4 3Section 4. 709.03 of the statutes is repealed and recreated to read:
AB391-ASA1,3,6 4709.03 Report form. The report required under s. 709.02 shall be in
5substantially the following form and shall include at least all of the following
6information:
AB391-ASA1,3,77 REAL ESTATE CONDITION REPORT
AB391-ASA1,3,88 Disclaimer
AB391-ASA1,3,179 A. THIS CONDITION REPORT CONCERNS THE REAL PROPERTY
10LOCATED AT .... IN THE .... (CITY) (VILLAGE) (TOWN) OF ...., COUNTY OF ....,
11STATE OF WISCONSIN. THIS REPORT IS A DISCLOSURE OF THE
12CONDITION OF THAT PROPERTY IN COMPLIANCE WITH SECTION 709.02 OF
13THE WISCONSIN STATUTES AS OF .... (MONTH), .... (DAY), .... (YEAR). IT IS
14NOT A WARRANTY OF ANY KIND BY THE OWNER OR ANY AGENTS
15REPRESENTING ANY PRINCIPAL IN THIS TRANSACTION AND IS NOT A
16SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THAT THE
17PRINCIPALS MAY WISH TO OBTAIN.
AB391-ASA1,3,1818 OWNER'S INFORMATION
AB391-ASA1,3,2319 B. 1. In this form, "am aware" means have notice or knowledge. In this form,
20"defect" means a condition that would have a significant adverse effect on the value
21of the property; that would significantly impair the health or safety of future
22occupants of the property; or that if not repaired, removed or replaced would
23significantly shorten or adversely affect the expected normal life of the premises.
AB391-ASA1,4,424 B. 2. The owner discloses the following information with the knowledge that,
25even though this is not a warranty, prospective buyers may rely on this information

1in deciding whether and on what terms to purchase the property. The owner hereby
2authorizes any agent representing any principal in this transaction to provide a copy
3of this statement, and to disclose any information in the statement, to any person in
4connection with any actual or anticipated sale of the property.
AB391-ASA1,4,95 B. 3. The owner represents that to the best of his or her knowledge the
6responses to the following statements have been accurately noted as "yes", "no" or
7"not applicable" to the property being sold. If the owner responds to any statement
8with "yes", the owner shall provide, in the additional information area of this form,
9an explanation of the reason why the response to the statement is "yes".
AB391-ASA1,4,1310 B. 4. If the transfer is of a condominium unit, the property to which this form
11applies is the condominium unit, the common elements of the condominium and any
12limited common elements that may be used only by the owner of the condominium
13unit being transferred. - See PDF for table PDF
AB391-ASA1,8,1
1Additional information - See PDF for table PDF
AB391-ASA1,8,22 D.  2. The owner has lived on the property for .... years.
AB391-ASA1,8,33 D.  3. Explanation of "yes" responses. (See B. 3.)
AB391-ASA1,8,77 Owner's certification
AB391-ASA1,8,98 E. The owner certifies that the information in this report is true and correct to
9the best of the owner's knowledge as of the date on which the owner signs this report.
AB391-ASA1,8,1010 Owner .... Date ....
AB391-ASA1,8,1111 Owner .... Date ....
AB391-ASA1,8,1312 Certification by person
13 supplying information
AB391-ASA1,8,1714 F. A person other than the owner certifies that he or she has supplied
15information on which the owner relied for this report and that that information is
16true and correct to the best of that person's knowledge as of the date on which the
17person signs this report.
AB391-ASA1,8,1818 Person .... Items .... Date ....
AB391-ASA1,8,1919 Person .... Items .... Date ....
AB391-ASA1,8,2020 Person .... Items .... Date ....
AB391-ASA1,9,2
1Notice regarding advice
2 or inspections
AB391-ASA1,9,73 G. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN
4PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO
5PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN
6THEM WITH RESPECT TO ANY ADVICE, INSPECTIONS, DEFECTS OR
7WARRANTIES.
AB391-ASA1,9,88 Buyer's acknowledgement
AB391-ASA1,9,119 H. 1. The prospective buyer acknowledges that technical knowledge such as
10that acquired by professional inspectors may be required to detect certain defects
11such as the presence of asbestos, building code violations and floodplain status.
AB391-ASA1,9,1212 H. 2. I acknowledge receipt of a copy of this statement.
AB391-ASA1,9,1313 Prospective buyer .... Date ....
AB391-ASA1,9,1414 Prospective buyer .... Date ....
AB391-ASA1,9,1515 Prospective buyer .... Date ....
AB391-ASA1, s. 5 16Section 5 . 709.03 (form) C. 8. of the statutes, as affected by 1995 Wisconsin
17Acts 27, section 7067, and .... (this act), is repealed and recreated to read: - See PDF for table PDF
AB391-ASA1, s. 6 1Section 6. 709.035 of the statutes is created to read:
AB391-ASA1,10,9 2709.035 Amendments to report. If at any time after completing a report,
3whether the original or an amended report, but before the expiration of the 10-day
4period specified in s. 709.02 an owner obtains information or becomes aware of any
5condition that would change a response on the completed report, the owner shall
6submit to a prospective buyer, within the time required under s. 709.02, a complete
7amended report or an amendment to the previously completed report, along with a
8copy of the previously completed report if not already submitted to the prospective
9buyer, that states all of the following:
AB391-ASA1,10,10 10(1) The address of the property.
AB391-ASA1,10,11 11(2) The owner's name.
AB391-ASA1,10,12 12(3) The date of the report being amended.
AB391-ASA1,10,14 13(4) The number of any statement on the report that is affected by the new
14information.
AB391-ASA1,11,3
1(5) How the owner's original response to the statement is changed and, if the
2response is changed to "yes", an explanation of the reason why the response to the
3statement is "yes".
AB391-ASA1, s. 7 4Section 7. 709.04 of the statutes is amended to read:
AB391-ASA1,11,7 5709.04 Indication of compliance. An owner shall indicate compliance with
6this chapter on the contract of sale or option contract, on the closing statement or in
7an addendum to one of those documents.
AB391-ASA1, s. 8 8Section 8. 709.05 of the statutes is renumbered 709.05 (1) and amended to
9read:
AB391-ASA1,11,2310 709.05 (1) If Except as provided in sub. (2) (b), if a buyer receives a report after
11submission of a contract of sale or option contract to the seller owner or the seller's
12owner's agent, the buyer may, after receipt of that report by the prospective buyer
13and before the applicable deadline, rescind in writing a contract of sale or option
14contract
if a defect, as defined in the report, is disclosed, without any liability on his
15or her part, and a buyer is entitled to the return of any deposits or option fees paid
16in the transaction. A prospective buyer who receives a report that is incomplete or
17that contains an inaccurate assertion that an item is not applicable and who is not
18aware of the defects that the seller owner failed to disclose may, within 2 business
19days after receipt of that report, rescind in writing a contract of sale or option
20contract
without any liability on his or her part and is entitled to the return of any
21deposits or option fees paid in the transaction. Rescissions under this section are
22timely if they are delivered to the owner or the owner's agent within 2 business days
23after the prospective buyer or the prospective buyer's agent receives the report. A
AB391-ASA1,12,2 24(2) (a) 1. Except as provided in subd. 2., a buyer may not rescind a contract of
25sale or option contract under this section if he or she receives a complete report before

1submitting the contract of sale or option contract to the seller owner or the seller's
2owner's agent.
AB391-ASA1,12,4 3(4) The right to rescind under this section is the only remedy under this
4chapter.
AB391-ASA1, s. 9 5Section 9. 709.05 (2) (a) 2. of the statutes is created to read:
AB391-ASA1,12,126 709.05 (2) (a) 2. Unless par. (b) applies, a buyer under subd. 1. who, after
7submitting the contract of sale or option contract to the owner or the owner's agent,
8receives an amended report, or an amendment to the report previously received, that
9discloses a defect that was not disclosed in the report previously received may, after
10receipt of the amended report or amendment to the report and before the applicable
11deadline, rescind in writing the contract of sale or option contract and is entitled to
12the return of any deposits or option fees paid in the transaction.
AB391-ASA1, s. 10 13Section 10. 709.05 (2) (b) of the statutes is created to read:
AB391-ASA1,12,1814 709.05 (2) (b) A buyer may not rescind a contract of sale or option contract
15under this section on the basis of a defect disclosed in a report, amended report or
16amendment to a report if the buyer was aware, or had written notice, of the nature
17and extent of the defect at the time the contract of sale or option contract was
18submitted to the owner or the owner's agent.
Loading...
Loading...