Wisconsin Real Estate License Agency Law and Disclosures 3 — Questions and Answers
Question 1: The Wisconsin Real Estate Condition Report (RECR) is generally completed by the:
- Buyer
- Listing broker
- Seller/owner (Correct answer)
- Home inspector
Correct answer: Seller/owner
The owner completes the RECR based on their knowledge of the property's condition.
Question 2: A residential seller in Wisconsin must generally deliver the Real Estate Condition Report to a buyer within how many days of acceptance?
- Within 10 days (Correct answer)
- Within 30 days
- Before the property is listed
- Only at closing
Correct answer: Within 10 days
Wisconsin law generally requires delivery of the RECR within 10 days of acceptance of the offer.
Question 3: Which sale is typically EXEMPT from providing a Real Estate Condition Report in Wisconsin?
- A three-year-old home resale
- A transfer by a personal representative of an estate (Correct answer)
- A standard owner-occupant sale
- A duplex sale
Correct answer: A transfer by a personal representative of an estate
Transfers by personal representatives, trustees, and similar fiduciaries are exempt because they lack personal knowledge of the property.
Question 4: If a buyer receives the RECR after signing the offer and finds a disclosed defect they object to, the buyer may:
- Never rescind
- Rescind within the time allowed by the offer (Correct answer)
- Only sue after closing
- Demand a new report
Correct answer: Rescind within the time allowed by the offer
Receiving the report after acceptance can trigger a rescission right within the timeframe stated in the offer.
Question 5: A 'defect' on the Wisconsin RECR is defined as a condition that would have a significant adverse effect on:
- The seller's asking price
- The value of the property or health/safety of occupants (Correct answer)
- The broker's commission
- The neighborhood average
Correct answer: The value of the property or health/safety of occupants
The RECR defines a defect as something significantly affecting value or the health and safety of occupants.
Question 6: For vacant land sales in Wisconsin, the seller may be required to provide the:
- Real Estate Condition Report
- Vacant Land Disclosure Report (Correct answer)
- Lead-Based Paint Disclosure
- Manufactured Home Report
Correct answer: Vacant Land Disclosure Report
Vacant land transfers use the Vacant Land Disclosure Report rather than the residential RECR.
Question 7: If a seller genuinely does not know the answer to a RECR item, the correct entry is:
- Leave it blank
- Mark 'No'
- Mark 'No representation' / not applicable as provided (Correct answer)
- Guess the answer
Correct answer: Mark 'No representation' / not applicable as provided
Sellers should indicate they have no knowledge rather than guess or leave items blank.
Wisconsin Real Estate License Agency Law and Disclosures 3
The Wisconsin Real Estate Condition Report (RECR) is generally completed by the: