Misrepresentation in Wisconsin Real Estate Sales: Post-Closing FAQ

Buying a home is often the biggest investment most Wisconsinites make. Unfortunately, disputes sometimes arise after closing when buyers discover property defects they believe were concealed or misrepresented by the seller. In Wisconsin, real estate misrepresentation claims can be based on the seller’s Real Estate Condition Report (RECR), statutory deceptive trade practices under Wis. Stat. § 100.18, or even civil theft by fraud under Wis. Stat. §§ 895.446 and 943.20. Buyers may also pursue claims against brokers or agents who fail to disclose material adverse facts.

This FAQ explains the most common legal issues surrounding post-closing property condition disputes in Wisconsin real estate transactions, including seller liability, broker obligations, and the remedies available to buyers.

What Buyers Need to Know About Misrepresentation in Wisconsin

Misrepresentation in Wisconsin real estate transactions occurs when a seller or broker provides false, incomplete, or misleading information that induces a buyer to purchase. Claims may arise under common-law misrepresentation, statutory deceptive trade practices, or civil theft statutes.

Real Estate Condition Report (RECR) Requirements

What is the RECR in Wisconsin?

For most 1–4 family residential property sales, the seller must provide a completed RECR within 10 days after acceptance. The report must be made in good faith and updated if new information comes to light. See Wis. Stat. ch. 709.

What counts as a false statement or omission?

A misrepresentation may be:

• A false statement of fact,

• An omission where disclosure was required, or

• A half-truth that creates a misleading impression.

Wisconsin recognizes intentional, negligent, and strict-responsibility misrepresentation. See Kailin v. Armstrong, 2002 WI App 70; Grube v. Daun, 173 Wis. 2d 30 (Ct. App. 1992).

Do “as-is” clauses protect sellers?

No. “As-is” and merger clauses do not shield sellers from liability for fraud or statutory deceptive practices. See Kailin; Peterson v. Cornerstone Prop. Dev., LLC, 2006 WI App 132.

Common Misrepresentation Claims in Real Estate

Wisconsin courts allow buyers to bring:

• Intentional misrepresentation – knowingly false statements.

• Negligent misrepresentation – careless or reckless statements.

• Strict-responsibility misrepresentation – false statements made even without knowledge of falsity.

The key is whether the statement was about a present material fact and whether it induced the buyer’s decision.

Wisconsin Statutory Remedies for Misrepresentation

Deceptive Trade Practices – Wis. Stat. § 100.18

• Prohibits untrue, deceptive, or misleading representations made “to the public.”

• Applies in real estate when sellers, brokers, or ads make false claims.

• Elements: (1) representation to the public, (2) untrue or misleading, (3) causation, (4) pecuniary loss.

• Reasonable reliance is not required, though courts may consider it when analyzing causation.

• Remedy: actual damages, plus attorney’s fees and costs.

👉 Key cases: Novell v. Migliaccio, 2008 WI 44; Tietsworth v. Harley-Davidson, Inc., 2004 WI 32.

Theft by Fraud – Wis. Stat. §§ 895.446 & 943.20

• Criminal: Theft by false representation (§ 943.20(1)(d)).

• Civil: § 895.446 allows buyers to sue for losses caused by fraudulent misrepresentation.

• Remedies: actual damages, attorney’s fees, and up to treble damages.

👉 Case: K&S Tool & Die Corp. v. Perfection Mach. Sales, Inc., 2007 WI 70.

Broker and Agent Liability for Misrepresentation

Wisconsin real estate brokers and agents must:

• Conduct a reasonably competent and diligent inspection of accessible areas.

• Disclose in writing any material adverse facts known to them.

A “material adverse fact” is one that a reasonable buyer would consider important and that negatively affects the property’s value, structural integrity, or safety.

👉 Authority: Wis. Stat. §§ 452.133, 452.135; Wis. Admin. Code REEB 24.07.

Remedies Available to Buyers After Closing

Depending on the circumstances, buyers may seek:

• Rescission (canceling the deal) in equity.

• Benefit-of-the-bargain damages (difference between value as represented and actual value).

• Repair or diminution-in-value damages.

• Actual damages + attorney’s fees under § 100.18.

• Actual damages + attorney’s fees + treble damages under § 895.446.

Practical Steps for Buyers Who Suspect Misrepresentation

1. Document the defect with photos, videos, and contractor estimates.

2. Preserve all paperwork: RECR, inspection reports, emails, and texts.

3. Avoid repairs until issues are documented.

4. Track dates—timelines matter for statutes of limitation.

5. Consult an attorney early to preserve claims and evaluate remedies.

Conclusion: Protecting Your Rights in Wisconsin Real Estate

Wisconsin law provides strong remedies for buyers misled in real estate sales. From RECR misstatements to statutory fraud and broker nondisclosure, buyers may recover damages, attorney’s fees, and in some cases treble damages. However, deadlines are strict, and claims are fact-specific. If you suspect misrepresentation after closing, consult an experienced Wisconsin real estate attorney promptly.

🏠 Suspect Misrepresentation After Closing?

Client Checklist – Wisconsin Real Estate Buyers

If you believe the seller or broker misled you about the property’s condition, here are the key steps to protect your rights:

✅ 1. Document Everything

• Take photos and videos of the defect.

• Save inspection reports, RECR forms, and emails/texts with the seller, agent, or broker.

• Get written repair estimates from contractors.

  
  

✅ 2. Preserve Evidence

• Do not make repairs until you’ve documented the problem.

• Keep invoices and receipts for all repair costs.

• Note the date you discovered the defect — it may affect deadlines.

✅ 3. Know Your Rights Under Wisconsin Law

You may have claims for:

• Misrepresentation (fraud, negligent, or strict responsibility).

• Deceptive trade practices (§ 100.18) – actual damages + attorney’s fees.

• Civil theft (§ 895.446 tied to § 943.20) – damages, attorney’s fees, and up to treble damages.

• Broker/agent nondisclosure of material adverse facts.

✅ 4. Act Quickly

• Common-law misrepresentation: 6 years (discovery rule applies).

• § 100.18 claims: 3 years.

• Civil theft (§ 895.446): 6 years.

• Rescission must be sought promptly.

✅ 5. Contact an Attorney

• An attorney can evaluate whether your case fits under contract, tort, or statutory claims.

• Early legal advice can prevent mistakes that weaken your case.