A Wisconsin bank acquires a single-family home through judicial foreclosure and lists it for sale. The listing agent asks whether a Real Estate Condition Report must be provided to potential buyers. Which of the following correctly describes the bank's obligation?
Correct Answer
C) The bank is exempt from the RECR requirement because the sale results from a foreclosure proceeding
Wisconsin Statutes § 709.01(2) lists specific exemptions from the RECR requirement, and sales resulting from foreclosure proceedings are explicitly among them. Because the bank acquired the property through judicial foreclosure, it qualifies for this statutory exemption and is not required to provide a Real Estate Condition Report to prospective buyers.
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