Upon recommendation from the Real Estate Contractual Forms Advisory Committee, the Real Estate Examining Board (REEB) promulgates standard forms for use in Wisconsin real estate transactions. These forms are identifiable by the “WB” label in the top left corner. WB forms are required for use by Wisconsin real estate licensees and may be used as well by unrepresented parties and attorneys in Wisconsin real estate transactions. 

Although the WB forms address many of the basic needs in a transaction, if there are unique requirements for the parties, the transaction or the property, the parties may need to enhance the terms of the offer by including needed provisions in the Additional Provisions section of a WB form, or the parties may need to incorporate an addendum. Modifications to the WB contracts may be made on a case-by-case basis, or if repetitive, may be addressed in a pre-prepared addendum. Keep in mind that although there may be area customs, the use of pre-prepared addenda is not mandatory; an addendum should be used to reflect the intent and unique interests of a party on a transaction-by-transaction basis. 

As Wisconsin REALTORS^®, you have access to a library of forms and addenda in your Zipform account. The consistent themes of WRA-drafted addenda or local association addenda include education, information gathering for successful transactions, referral to third-party resources or state agencies, and contingencies for recurrent situations such as testing. 

Addendum A

There are multiple variations of an Addendum A. The WRA Addendum A was primarily created to include a radon testing contingency and a fill-in-the-blank testing contingency. The secondary focus of this addendum is educational, containing resource materials and links to raise parties’ awareness of hazardous substances, underground storage tanks, insurance issues, or zoning and building restrictions, to name a few. 

Addendum B

Known as the well water, well and septic (POWTS) addendum, the WRA Addendum B was created for use when properties have wells or septic systems or are not served by municipal water supplies or sewer services. More information about this addendum is available in the October 2014 Legal Update, “WRA Addendum A and Addendum B Revisions October 2014,” online at www.wra.org/LU1410.

Addendum L and Addendum S

These addenda address lead-based paint in the rental or sale of real property. Designed for use for properties built prior to 1978, each of these addenda follow the education theme and assure compliance with federal lead-based paint law. More information about lead-based paint is available on the WRA lead-based paint resource page at www.wra.org/LBP. 

Addendum D

The language contained in the updated WB offers now makes the use of the WRA Addendum D obsolete as far as use with the offer. Addendum D was never the electronic consent addendum; Addendum D just authorized email as a form of delivery.
Brokers, prior to using the email lines in the offer, must still obtain electronic consent from the parties in consumer transactions. Addendum D will still be used with agency agreements — both the listing contract and buyer agency — and any contract that has not yet been updated by the REEB. For more information on obtaining electronic consent, see the LegalTalks two-part video series regarding electronic consent and email delivery at www.wra.org/LegalTalks/ElectronicDisclosure. 

Addendum O

The WRA Addendum O may be used to manage the relationship between the buyer and seller when either a seller will remain in the property post-closing or a buyer occupies the property pre-closing. Historically the WB offers included brief occupancy provisions for early or late occupancy, however the latest versions of the WB offers no longer contain such provisions. The WRA Addendum O has been updated to authorize occupancy and gives flexibility to negotiate occupancy charges, security deposits, maintenance, utilities and keys, just to name a few of the myriad considerations between the buyer and seller. More information about Addendum O is available in the January 2010 Legal Update, “Updating Addendum A, Addendum O and Property Condition Report,” at www.wra.org/LU1001. 

Addendum W 

The WRA Addendum W — Wetlands was developed in conjunction with the Wisconsin Department of Natural Resources and may be used in transactions where the subject property contains or may contain wetlands. In addition to many resources and DNR contact information, the form includes a wetland evaluation contingency. The contingency allows the buyer to obtain a report from a wetlands delineation professional and address a potential remedy if wetlands are identified. In addition to being available in Zipform, Addendum W can also be found on the DNR website at www.dnr.wi.gov/topic/wetlands/documents/addendumw_2008final.pdf. 

Addendum Lead/Arsenic Pesticide 

The WRA worked with the Department of Agriculture Trade and Consumer Protection (DATCP) to create the WRA Lead/Arsenic Pesticide Addendum. Throughout Wisconsin, pesticides once used to control pests in fruit orchards left contamination. For properties previously or currently with orchards, the addendum can be used to address seller disclosure as well as negotiate for a soil evaluation contingency. 

Addendum R 

The WRA Addendum R to the Offer to Purchase was designed for use in the sale of residential rental properties regardless of the number of units involved. Addendum R tries to contemplate many of the problems that may arise when tenants do not pay their rent, abandon their units, damage the property or terminate their tenancies between the date of the offer and closing. Addendum R also addresses other concerns regarding leases, rent, security deposits, personal property, eviction and vacancies. See pages 10-11 of the November 2003 Legal Update, “Overcoming Residential Transaction Obstacles,” at www.wra.org/LU0311 for further discussion of Addendum R. 

Addendum TR 

The newest addition to WRA addenda is the Addendum TR, designed for facilitating TRID-covered transactions. The Addendum TR provides lines for contact and license information of the agents and brokerage companies in the transaction for the lender’s completion of the new Closing Disclosure. The completion of these provisions is designed to facilitate closing and is optional. The goal for the agent drafting the offer by completing the grid is to enhance the ability of all concerned to orchestrate a smooth and timely closing process with the lender. Agent and company license numbers can be found at app.wi.gov/licensesearch. 

To assure the buyer is proceeding in a timely manner to apply for financing, the Addendum TR may include the buyer’s agreement to provide financing pre-approval within seven days of acceptance. The seller then has the choice to terminate the offer or, similar to the financing contingency, give the buyer additional time to provide evidence. 

The Addendum TR also includes optional provisions relating to closing postponements in the event a TRID delay might occur. In the event a closing is delayed because of the waiting period for a revised Closing Disclosure, the parties in advance should agree to amend the closing.

The addendum also includes provisions for domino transactions, which are multiple closings set for the same day. In the event any of the domino closings are delayed due to revised Closing Disclosures, the affected transactions will be delayed if all include this provision. See the WRA’s TRID resource page online at www.wra.org/TRID for more information about the implications of the new Consumer Financial Protection Bureau TRID rules and links to many WRA educational resources on this topic. 

Conclusion

Pre-prepared addenda, like the WB forms, are designed to address repetitive issues. When more specific provisions are needed, brokers may refer to the Wisconsin Real Estate Clauses for more sample contingencies. The clause manual includes a collection of clauses or contingencies that may be used or adapted for a specific transaction. Finally it may be necessary for the parties to engage legal counsel for unique or complex situations. More information about contract drafting is available in the September 2006 Legal Update, “Contract Law Basics,” online at www.wra.org/LU0609.

Tracy Rucka is Director of Professional Standards and Practices for the WRA.