Dispute resolution
What recourse does a buyer have when a seller fails to disclose defects in the condition of the property?
Real Estate Condition Report
Under Wisconsin law, a seller of real property and real estate brokers involved in a sale have duties to make certain disclosures about the condition of the property.
Within 10 days after accepting an offer to purchase, the seller must provide the buyer with a written Real Estate Condition Report, unless the buyer provides a written waiver of the right to receive a Condition Report.
Disclose all defects
The condition report must disclose all “defects” in the condition of the property known to the seller. A “defect” includes any condition that would significantly affect the property’s value, impair the health and safety of occupants, or shorten the expected normal life of the property.
Material adverse facts
Similarly, a real estate agent representing a party to a transaction has a duty to disclose in writing all “material adverse facts” that a party does not know or cannot discover through “reasonably vigilant observation.”
A “material adverse fact” is either:
- A fact that a party to the transaction has indicated would affect the party’s decision to purchase the property and/or the terms of the sale, or
- A fact that is generally recognized by competent licensees to be of such significance to most people that it would impact their decision whether to purchase the property and/or the terms of the sale.
Broker’s duty
A broker’s duty to disclose material adverse facts extends to all parties to the transaction (including the party on the opposite side of the transaction from the broker’s client) is entirely independent of the disclosure duties of sellers, and may not be avoided with written waivers from the parties to the transaction.
Legal recourse
If you believe you have discovered an undisclosed defect or material adverse fact after purchasing a property, you may have legal recourse against the seller, the seller’s agent, and/or your own agent.
Every situation is unique and is determined by the specific contract and facts involved.
Contact Zimmer & Rens LLC today if you are experiencing this type of situation and want to find out more about your options.
Real estate practice areas
Request a free consultation
The initial consultation is free, and we’d be happy to help you with your transaction or with resolving your legal dispute.
