Wisconsin Condominium Disclosure Documents and Buyer's 5 Business Day Right of Rescission
The Wisconsin Condominium Disclosure Documents are a set of legally required documents that a condominium seller or developer must provide to a prospective buyer. These documents provide important information about the condominium association, its governance, financial health, and any specific rules and restrictions that may apply to the unit being sold. The goal is to ensure that the buyer has adequate information to make an informed decision about the purchase.
According to Wisconsin Statutes Chapter 703, the Condominium Ownership Act, the seller or developer is required to provide the following disclosure documents:
Condominium Declaration: This document outlines the legal framework of the condominium association, including the allocation of ownership interests, voting rights, and assessments.
Condominium Bylaws: The bylaws govern the day-to-day operations of the condominium association, such as the election of the board of directors, meetings, and procedures for decision-making.
Condominium Plat or Map: This provides a visual representation of the entire condominium project, including the location of individual units, common areas, and any limited common elements.
Rules and Regulations: These are the specific rules and restrictions that govern the use and enjoyment of the condominium property, such as pet policies, parking restrictions, or architectural guidelines.
Annual Financial Statements: The most recent financial statements of the condominium association provide insight into its financial health and stability.
Current Budget: The current operating budget of the condominium association includes information about income, expenses, and assessments.
Any Amendments: Copies of any amendments made to the condominium documents should also be provided.
The 5 Business Day Right of Rescission is a protection granted to buyers under Wisconsin law. This means that a buyer has the right to cancel the purchase agreement for any reason within five business days after receiving the condominium disclosure documents. This rescission period allows the buyer to review the documents, consult with an attorney or other professionals, and assess whether they wish to proceed with the purchase based on the information provided.
If the buyer chooses to exercise their right of rescission, they must provide written notice of their decision to the seller within the five-business-day period. Upon rescission, the buyer is entitled to a refund of any deposit or earnest money paid.
It's essential for both buyers and sellers to understand their rights and obligations under the Wisconsin Condominium Ownership Act, including the disclosure requirements and the right of rescission. Consulting with a knowledgeable real estate attorney can help ensure a smooth and legally compliant transaction.