710.13 Disclosures regarding real property wholesalers.

484 words·~2 min read·/wi/chapter-710/710-13-3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions.

(a)“Purchase agreement” means a contract for the sale, exchange, option, rental, or purchase of residential real property.

(b)“Real property wholesaler” means a person that enters into a purchase agreement as a buyer and intends to assign the person’s rights as buyer under the purchase agreement to a 3rd party for consideration.

(c)“Residential real property” means real property in this state that includes one to 4 dwelling units, as defined in s. 101.61

(1).

(2)Required disclosures. A real property wholesaler shall provide all of the following disclosures:

(a)No later than entering into a purchase agreement as a buyer, written notice to the seller of the residential real property that the buyer is a real property wholesaler.

(b)No later than entering into a contract with a 3rd party to assign the real property wholesaler’s rights as buyer under a purchase agreement to the 3rd party, written notice to the 3rd party that the assignor is a real property wholesaler that holds an equitable interest in the residential real property as a buyer under the purchase agreement and that the assignor is conveying the assignor’s interest in the purchase agreement, not title to the residential real property.

(3)Rights to rescind; disbursement of deposits.

(a)If a real property wholesaler fails to timely provide the disclosure to a seller as required under sub.

(a), the seller may rescind the purchase agreement at any time before the closing, without any liability on the seller’s part, by providing written notice of rescission to the real property wholesaler, and the seller is entitled to retain any deposits or option fees paid by the real property wholesaler in connection with the transaction.

(b)If a real property wholesaler fails to timely provide the disclosure to a 3rd party assignee as required under sub.

(b), the assignee may rescind the assignment of the purchase agreement at any time before the closing, without any liability on the assignee’s part, by providing written notice of rescission to the real property wholesaler, and the assignee is entitled to the return of any deposits or option fees paid by the assignee in connection with the transaction.

(c)Upon receipt of a written notice of rescission described under par.

(a)or

(b), a person holding deposits or option fees described under par.

(a)or

(b)may disburse the deposits or option fees, without any liability on the person’s part, to the following persons:

1. If a seller exercises its right to rescind under par.

(a), to the seller.

2. If a 3rd party assignee exercises its right to rescind under par.

(b), to the assignee.

(4)Waiver prohibited. A person may not waive the person’s rights under this section. If the person proceeds to closing, the person’s right to rescind under sub.

(3)is terminated.