A seller in Wisconsin accepts an offer to purchase but fails to provide the Real Estate Condition Report (RECR) before or at the time of acceptance. The buyer later discovers this omission. Under Wis. Stat. § 709.02, what remedy is available to the buyer?
Correct Answer
D) The buyer may rescind the contract and recover all earnest money paid.
Under Wis. Stat. § 709.02, if a seller of residential property (1-4 units) fails to deliver the Real Estate Condition Report before or at the time the offer is accepted, the buyer has the right to rescind the contract and recover all earnest money paid. This rescission right exists regardless of whether any actual defects are present — the failure to timely deliver the RECR itself triggers the remedy.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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