Selling a House in Wisconsin

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Wisconsin, real estate agents have what's called a "fiduciary duty" to the home seller, which means they legally represent the seller, not the buyer. In Wisconsin, this means that the agents are held by law to owe specific duties to the person who they are representing, in this case the seller.

In addition to duties or obligations that are stated in a listing agreement or other contract, a fiduciary's duties include:

• Loyalty
• Obedience
• Disclosure
• Confidentiality
• Reasonable care
• Diligence
• Accounting

You must provide written disclosures, by way of a Real Estate Condition Report, regarding matters that you know about and that adversely affect the property. The report should disclose the following items:

• Defects in the roof
• Defects in the electrical, plumbing, heating or air conditioning systems
• Defects in the well
• Defects in the septic system or other sanitary disposal system
• Underground or aboveground fuel storage tanks on the property
• Defects in the basement or foundation
• Knowledge of property being located on a floodplain, wetland or shore land zoning area
• Defects in the structure of the property
• Defects in mechanical equipment included in the sale
• Boundary or lot line disputes, encroachments or encumbrances
• Defects caused by hazardous or toxic substances on neighboring properties
• Termite or other infestations
• Defects in wood burning stove or fireplace
• Remodeling affecting property's structure or mechanical systems or additions made to property without required permits
• Regulations requiring repairs, alterations or corrections of exiting condition
• Other than normal annual property tax increases or pending property reassessment
• Remodeling that may increase property's assessed value
• Proposed or pending special assessments
• Proposed construction of a public project that may affect the use of the property
• Subdivision homeowners' associations, common areas co-owned with others, zoning violations or nonconforming uses, rights-of-way, easements or another use of a part of the property by nonowners, other than the recorded utility easements
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978)
• Other defects affecting the property
• Awareness that a structure on the property is designated as a historic building or that part of the property is in a historic district

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a "residential offer to purchase" or "purchase agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Wisconsin real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Wisconsin, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation owed by the current owner of the property. A lien encumbers property as long as it exists and has been recorded in the public records.

In Wisconsin, liens on a piece of property may include:

• Mortgages
• Construction or mechanics' liens
• Judgment liens
• Tax liens

Closing Costs

In Wisconsin, you can expect to pay for some or all of the following charges - called "closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Wisconsin, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.