WB-14 Condominium Offer to Purchase

Providing condo documents and disclosures is the obligation of the seller. Receiving them and rescinding the Offer are the buyer’s rights. We as licensees are expected to protect those obligations and rights.

Real estate licensees are required to complete forms approved by the Real Estate Examining Board of the Department of Safety and Professional Services in a manner that accomplishes the intent of the parties (Wis. Admin. Code REEB 16.06(8)) and will ordinarily be expected to complete the form in a manner that results in an enforceable contract.   WI Real Estate Law, 2014 Edition, Contract Interpretation and Remedies 10-1.

Condominium law has it’s own Chapter in Wisconsin law. After quick review of Chapter 703 Condominiums there is no doubt that public policy favors the protection of buyers over sellers in Condominium sale transactions. The buyer’s right to rescind without any reason stated is assured. The obligation of the seller to provide an extensive list of existing and contemplated rules is clearly stated, and yet the list of those items is not clear. To make matters worse, the list is a mine field of confusion. (See page 4 0f 9 of the WB-14 lines 204-246.)

Licensees may make modifications to the procedure and items required for delivery, but we do so at some peril.To be safe, consider making NO changes to the procedure. Adding additional items from the list of additional items lines 235 to 246 can be done without touching the procedures of delivery and right to rescind.  The Offer to Purchase even includes a suggestion for how to add items without upsetting the process. This is what is suggested:

Using lines 174-188 or 514-519 of the WB-14, the licensee can add additional condo docs for the seller to provide. Something as simple as this will work: Condominium Disclosure Materials, lines 204 to 234 added to the list of items (a)  through (h) lines 208-218, seller shall also provide: Condo financial statements for the previous 2 years. The minutes of the previous 2 years of unit owner’s meetings. The minutes of the condo board meetings during the 12 months prior to acceptance of this Offer. AND SO ON AND SO ON….

PRACTICE CAUTION: The contract is clear. The seller has the obligation to provide what the parties agreed would be provided. If any documents don’t exist, a  seller might  be wise to not accept the offer. A  prudent listing agent, using section 703.33 for a check list will obtain all that is available and know at the time marketing begins, what items are not available. Disclosure of unavailable documents seems like a good idea.

By the terms of the contract, the buyer and seller agree to give NOTICE and make REQUESTS. The proper forms for a licensee to use for this communication are Notice Forms, and Amendments. There is no agreement in the WB-14 for the buyer agent and seller agent to converse by email, text, phone calls or any other method. If buyer fails to make a request for missing documents, the contingency could be deemed satisfied. If Seller fails to provide documents they agreed to provide, the buyer could rescind the offer. Licensees who help the buyer and seller operate within  the terms of the contract are meeting the expectations of their license. Those who take it upon themselves to call, send emails, texts may think they are being “friendly”. How placing the the buyer and seller at risk is friendly I don’t understand. The buyer and seller agreed that the “friendly” way involves buyer and seller signed Notices and Amendments.

 

Author: Tom Meyer Real Estate Broker, Madison, WI

I believe every every Offer to Purchase can present the unique ability of the person the contract is written for. The person who is most compelled to be cooperative, most qualified, most sincere, most committed, least risk adverse, can have an Offer drafted to show their true ability and commitment. Home sellers are likely to look favorably upon those offers which give them the most comfort. Licensees who know how to craft Offers as unique as the individual buyer are worth their weight in gold.

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