WRA Legislative Alert: Time of Sale Loophole Closed by Wisconsin Legislature


 April 06, 2016
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Under a new law that went into effect in July 2015, local units of government are prohibited from requiring inspections, property maintenance or payment of related fees at the time of sale or transfer of title. A time of sale (TOS) requirement is an obligation that must be performed prior to a closing when a property is sold. Prior to the new law, TOS requirements served as a source of frustration for sellers and others involved in real estate transactions. However, since the passage of the new law, some communities have asserted that the new law only applied to sellers ‚ÄĒ not to purchasers or new owners upon occupancy. These communities found a loophole.

Background

  • State Sen. Frank Lasee (R‚ÄďDe Pere) and state Rep. Robert Brooks (R‚ÄďSaukville) introduced AB 568/SB 445 that included a provision to close this loophole.
  • A local government may still require homeowners to maintain their property to certain standards ‚ÄĒ but not at the time of sale, purchase, occupancy or transfer of the property.

What's in play

Proposal: Legislation that closes a loophole in the 2015 time of sale law by expanding the time of sale restrictions to buyers at the time of occupancy.

Bill status

Time of sale loophole closed when Gov. Walker signed 2015 Wis. Act 176 into law.

The WRA engages in advocacy on behalf of REALTORS¬ģ and property owners through a variety of programs including the REALTORS¬ģ Political Action Committee and the Wisconsin Homeowners Alliance.

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