What is a RECR?
June 21, 2024
Under Wisconsin Statute Section 709.01, sellers of residential real estate containing one to four dwelling units (including condominiums and time-share properties) are required to provide a Real Estate Condition Report (RECR) to prospective buyers. This applies to most residential property transfers, whether the seller is working with a real estate agent or selling the property themselves.
Exemptions to the RECR Requirement (per Wis. Stat. 709.01):
- Transfers by Fiduciaries: Personal representatives, trustees, conservators, and other court-appointed or supervised fiduciaries are exempt, but only if they haven’t occupied the property. This exemption does not apply to powers of attorney.
- Uninhabited Real Estate: New construction properties or real estate that has never been inhabited are exempt.
- Transfers Exempt from Real Estate Transfer Fee: This includes certain transfers between spouses, foreclosure sales, and probate transfers.
Considerations for Sellers (per Wis. Stat. 709.02):
- Timely Disclosure: Sellers must provide the RECR to the buyer within 10 days of accepting an offer to purchase.
- Buyer’s Right to Rescind: Buyers who do not receive a completed RECR within the 10-day timeframe have the right to rescind the offer, as long as the property transfer isn’t exempt from the RECR requirement.
Disclosure of Material Defects:
While the above exemptions exist, it’s important to note that sellers still have a legal obligation to disclose any known material defects in the property, even if they are exempt from providing the RECR. A “material defect” is a condition that could significantly affect the property’s value, the health or safety of future occupants, or the property’s expected lifespan.
Disclaimer: This information is based on Wisconsin Statute Section 709.01 and is intended for informational purposes only. This is not legal advice. Consult with a qualified professional for legal guidance specific to your situation.
