It is expected that potential buyers of residential real estate will rely on the disclosures provided by the seller in the Wisconsin residential real estate condition report.  Among other things, in this report the seller discloses “defects” affecting the property.  However, potential buyers should be aware of what is meant by a “defect” for purposes of this report.  In Wisconsin, under the standard residential real estate condition report, a “defect” is defined as “a condition that would have a significant adverse effect on the value of the property; that would significantly impair the health or safety of future occupants of the property; or that if not repaired, removed or replaced would significantly shorten or adversely effect the expected normal life of the premises.”  As a result, there may be many conditions affecting the property which the seller is not obligated to disclose to the buyer as these conditions do not rise to the level of “defect” as defined in the report.  If there are certain conditions of the property (for example, no basement water issues) which are deal breakers for the buyer but do not rise to the level of a “defect” under the Wisconsin residential real estate condition report, the buyer may wish to modify the offer to purchase initially submitted to the seller to require the disclosure of these conditions and to specify the remedy for buyer if such conditions are disclosed.

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