Anyone planning to buy or sell a property in Wisconsin should know what a real estate purchase agreement is. Fortunately, you've come to the right place! Here's everything you need to know about this important document.
Wisconsin Real Estate Purchase Agreement
Also known as a residential real estate purchase agreement in Wisconsin and other states, it's a contract that legally binds a buyer and a seller when there is a residential offer to purchase a real property.
Since this real estate contract determines the terms, conditions, and obligations that both parties involved must comply with, it should have key information about the transaction, including the following:
- Proposed purchase price
- Negotiation terms
- Purchase terms and conditions
- Closing costs and other financial details
- Closing details
- Required seller disclosures
Before the closing date, the seller can respond to the offer or make a counter-offer to set better terms. However, this contract should only be signed when both parties agree to the conditions.
Under most US states' laws, a purchase and sale agreement must include guarantees about a property's condition. Furthermore, sellers must disclose specific information about it and can be sued if they try to hide those details.
Wisconsin has similar laws. However, in this state, sellers must provide the potential buyer with a real estate condition report within ten days before accepting an offer and signing a real estate purchase agreement. Learn more about these disclosures below!
Report Estate Condition Report
It must include any physical issues or defects in the property that may reduce its value. Sellers should give this disclosure to the prospective buyer within 10 days before completing the residential real estate transaction.
There's only one exception to this rule: If the seller's title is listed in § 709.01(2) (Wisconsin Statutes on Disclosure by Owners of Real Estate and Requirement for Transfer), this report is not necessary.
Condominium Addendum to Real Estate Condition Report
If the property for sale is a condominium, sellers must attach an addendum to the real estate condition report and hand it to the potential buyer. It should include information about the unit's condition and provide additional details about common areas and auxiliary fees.
Lead-Based Paint Disclosure
Under federal and Wisconsin law, if someone sells a property built in 1978 or earlier, the potential buyer must receive information about the risks posed by exposure to lead-based paint.
Property Disclosure Statement
Additionally, Wisconsin law requires sellers to make a disclosure about the property's condition. If the buyer or transferee is a personal representative, conservator, fiduciary, or trustee, it isn't required.
This document is required for all real estate purchase agreements both in Wisconsin and in other US states. Therefore, anyone who plans to sell or buy a property should know how to draft it or where to find the best template. Are you one of them? Doorloop can lend you a hand!
We have all the free forms you need to make a residential purchase, rent your property, evict someone from your vacant unit, and more! Moreover, we have useful information on Wisconsin eviction laws and squatters' rights. You only have to check our website!
What Should I Include in a Wisconsin Residential Purchase Agreement Besides the Purchase Price?
As mentioned, this document must include key details about the purchase and the parties involved, including financial details, buyers' and sellers' names and addresses, the sale's terms and conditions, a description of the property, and the required disclosures, including the one for lead-based paint.
Can a Seller Cancel a Wisconsin Real Estate Purchase and Sale Agreement?
Yes, you're right! If the buyer fails to comply with the insurance, inspection, financial, and appraisal contingencies, sellers can exit a Wisconsin residential purchase agreement.
Can a Buyer Exit the Agreement After Making an Offer to Purchase a Property in Wisconsin?
Yes, they can! Under Wisconsin law, buyers have the right to cancel an offer after receiving the property disclosure report. However, they're required to send a written notification to the seller within two days.
What Is the Effective Date of a Purchase and Sale Agreement in Wisconsin?
As in other states, the effective date is the day the property owner and potential buyer agree to the sale's terms and execute the contract.