Last session, the legislature passed into law more user-friendly disclosure reports for real estate sellers to complete when selling residential or vacant land. The same legislation provided for definitional consistency in the transaction between home inspector reports and the offer to purchase. The WRA is seeking legislation to make small modifications to the condition reports.

Background: 

Since the implementation on July 1, 2018, of the revised Real Estate Condition Report (RECR) and Vacant Land Disclosure Report (VLDR) forms, the WRA discovered the need to correct one inconsistency in the statute, clarify a practice issue, address one minor technical modification and add a new disclosure. These are the four recommended changes:

1. Authorize the buyer to receive the earnest money back if the buyer has the right to rescind the offer.
2. Clarify that the RECR or VLDR with strikethroughs or unanswered questions is considered to be incomplete.
3. Modify the items in the land use disclosure section of both forms to specify that the disclosure applies to private, not public, rights of way.
4. Add Foreign Investment in Real Property Tax Act (FIRPTA) as a disclosure to both the RECR and VLDR forms. 

What’s in play: Legislation to address all four points will be introduced in the Wisconsin legislature soon. Watch for more details in future issues of Wisconsin Real Estate Magazine. 

Legislation status: This legislation is awaiting introduction.