Sandra is selling her triplex in Kenosha, Wisconsin. She provides the Real Estate Condition Report to the buyer, Tom, at the time Tom's offer is accepted. Tom reviews the RECR and notices that Sandra checked 'No' for roof leaks, but Tom's independent inspector later discovers evidence of a long-standing leak that Sandra almost certainly knew about. Tom wants to rescind the contract based on the RECR. Which statement most accurately describes Tom's legal position under Wisconsin law?

Correct Answer

D) Tom cannot rescind under Chapter 709 because the RECR was delivered at the time of acceptance, but he may pursue a misrepresentation claim based on the false disclosure

Wisconsin Statutes § 709.07 grants the buyer a right to rescind within two business days of receiving the RECR only when the RECR is delivered after the offer is accepted. Here, Sandra delivered the RECR at the time of acceptance, which satisfies the timing requirement under Chapter 709 and eliminates the § 709.07 rescission right. However, because Sandra allegedly checked 'No' for a known defect, Tom may have a viable claim for misrepresentation or fraud under common law or Wisconsin Statutes, which can support a separate legal action for damages or contract rescission through the courts.