Practice Areas

Real Estate Transactions

Important things to know regarding Real Estate transactions.

The real estate purchase contract defines the obligations between the buyer and the seller. The purchase contract includes the original offer to purchase (including any addendums or attachments), any counter-offers, and any subsequent amendments. Generally, the offer to purchase states the price the buyer is willing to pay for the property, date the sale must close, amount of a "down payment" (earnest money), specific conditions or contingencies placed on the purchase or sale (i.e., financing contingency, inspection contingency, sale of buyer's property contingency, etc.), definitions used in the transaction, provisions for default, and other important terms and provisions of the transaction. Provisions unique to your property and circumstances should be included in the purchase contract. For residential properties in Wisconsin, there is a standardized, state-approved form called a WB-11 Offer to Purchase. This document can be completed by an attorney, real estate agent, or a party to the transaction. We recommend an attorney draft or review documents for you. The services provided by a lawyer may be particularly important for a buyer or seller involved in a "for sale by owner" or "FSBO" real estate transaction.

Once the buyer submits an offer, the seller can respond by accepting, rejecting, or making a counter-offer presenting different terms for the sale. If the seller makes a counter-offer, the buyer is then presented with the same options. The counter-offer process can continue until one party rejects the deal, or the parties reach a "meeting of the minds" on the terms of the deal. It is at that point that there is a legally binding contract, subject to the contingencies.

Contingencies in an offer are those conditions which must be satisfied (or waived) before the purchase contract is enforceable. The two most common contingencies are likely the financing contingency and inspection contingency. There may be other necessary contingencies that are important to you, however. Be aware that too many contingencies can often make an offer less desirable to a seller; more contingencies can mean more potential obstacles to the sale.

In many residential transactions, the seller must furnish the buyer with a "Real Estate Condition Report" which provides details on various defects or conditions known to the owner. If you are a buyer and you do not receive a Real Estate Condition Report, ask for one. As a seller, it is important to understand just what types of details you need to disclose.

The WB-11 Offer to Purchase in Wisconsin requires that the seller of real estate provide proof of title. To satisfy this requirement, the seller of real estate will generally provide the buyer with a title insurance commitment prior to closing. The title insurance commitment is an important and complex legal document which contains both the title company's requirements to issue the policy and the exceptions from coverage. Simply receiving a title insurance commitment prior to closing does not guarantee that the seller has clean title. A lawyer should review the title insurance commitment with you to be sure that no prior title problems will later resurface during your ownership of the property or upon the sale of your property.

Do I need an attorney?

A lawyer is there to walk you through the process to protect your interests, avoid surprises, and be better equipped to deal with surprises should they occur. Real estate agents cannot provide legal advice, legal representation, or legal services other than completing the pre-printed forms.

If you have further questions about the process of buying or selling residential or commercial real estate, please contact the attorneys at W.R. Stewart & Associates, S.C., to set up an appointment.