Question:
An agent has a seller who forgot about an insurance claim made on the property, so the seller did not indicate anything in the Real Estate Condition Report (RECR). There is an accepted offer, and the parties are moving toward closing. The buyer found the claim when the buyer was ordering insurance on the property. Does the seller need to amend the RECR or amend the offer?
The seller has a special assessment possibly where there has been a meeting with the planning department in the seller`s city, but work has not been done yet. Who is responsible?
Answer:
Disclosure of insurance claimIf, prior to accepting an offer, a seller obtains information or becomes aware of any condition that would change a response on the completed RECR, the seller shall amend that RECR. Wis. Stat. § 709.035 requires sellers to amend the RECR prior to the acceptance of a contract when they obtain new information or become aware of any condition that would change a response on their original RECR. The seller may prepare an amendment to the RECR to include the new information from the inspection or testing report, or draft a new RECR that takes account of the new information.
If there is already an accepted offer, the seller may not want to amend the RECR with regard to the ongoing transaction. If, after the acceptance of an offer, the seller amends the RECR and discloses defects, the buyer would have the right to rescind the offer per Wis. Stat. § 709.05(2)(a)(2). By delivering an amendment to the RECR, the seller gives the buyer the ability to rescind their offer within two business days of receipt....
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- - Volume: 24 - WEEK: 12 Date: 3/19/2024 3:58:21 PM -