A Wisconsin seller completes and delivers a Real Estate Condition Report to the buyer before the offer is accepted. After closing, the buyer discovers a significant foundation crack that the seller knew about but did not disclose on the RECR. Under Wisconsin law, which statement best describes the seller's potential liability?
Correct Answer
B) The seller may be liable for misrepresentation or fraud because the RECR requires disclosure of known defects, and knowingly omitting a material defect violates that obligation
Wisconsin Statutes § 709.02 requires sellers to disclose all known defects affecting the property on the RECR. Knowingly omitting a material defect such as a foundation crack constitutes a false or misleading statement on the report, which can expose the seller to claims of misrepresentation or fraud under Wisconsin law. Timely delivery of the form does not shield a seller who intentionally conceals known defects.
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Related Concepts
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