Real Estate Sales Course Book

Published by Wisconsin REALTORS® Association 4801 Forest Run Road, Madison, Wisconsin 53704 Copyright of course book ©2016 by Wisconsin REALTORS® Association Sixteenth Edition Credits for Course Book Jennifer Lindsley Production Assistance by: Chris Dregne, Member Products Specialist, WRA Alisha Bade, Products Coordinator, WRA About the Course Book Author Jennifer Lindsley is the Director of Training and Staff Attorney for the Wisconsin REALTORS® Association (WRA). Jennifer is a licensed broker and member of the Real Estate Educators Association. She earned her J.D. from the University of Wisconsin Law School and her B.A. from Portland State University in Portland, Oregon. 1.0

The information and materials contained in this product are provided exclusively for educational purposes and are solely intended to be statements of general legal principles. The information and materials are not to be construed, interpreted, relied upon or used as legal advice in any fashion, including but not limited to use in litigation, arbitration, ethics matters, or other administrative proceedings. Individuals seeking legal advice should obtain private legal counsel and should not rely upon the information and materials contained herein.

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Contents -1Agency Relationships

-4Disclosure Obligations

The Nature of the Agency....…...1 Agency Terminology………….…1 The Agent’s Duties ……….…..13 Agency Disclosure Obligations..16 Disclosure of Compensation and Interests…….........................…19 The Real Estate Office..…....…20

Disclosure.....................……….67 Liability…………………………68 Advertising…..…………………68 Disclosure Obligations…..….…68 Disclosure by Owners of Real Estate..........................……69 “As is” Sales…...………………71 Licensee Disclosure Obligations...............................72 Condominium Disclosure Requirements…………….…......73 Environmental Concerns …..….76

-2Agency Issues The Creation of Agency…........23 Types of Agency Contracts.....25 Termination of Agency…….....27 Remedies for Breach of an Agency Agreement....................28 Commission………………........28 Calculating Commission.………33 Payment of Listing Firm.……36 Payment of Buyer’s Firm.…..36 Procuring Cause Issues.………37

-3Agency Agreements The Real Estate Transaction......39 Agency Agreements…………..41 WB-1 Residential Listing Contract ………….....................42 WB-4 Residential Condominium Listing Contract……………......58 WB-36 Buyer Agency/Tenant Representation Agreement…....61

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-5Fair Housing Fair Housing Law……………....85 The Americans with Disabilities Act (ADA) ……………..........………90 Handling Complaints.……….…92 Establishing Office Procedures...…..…………...…93

-6Valuation Market Value Versus Appraised Value………………………..…....95 Principles of Value……………96 The Market Data Approach….97

-7Real Property Ownership Real Property Ownership…......101 Real Versus Personal Property……………....……......102 Estates in Land..……………...…103 Forms of Ownership.………….107 Wisconsin Marital Property..…..109 Management and Control..……110 Condominium Ownership..……110 Cooperative Ownership..………112 Time-share Ownership..………112

-8Title of Real Estate Transfer of Title…………..…….113 Deeds…................….….........114 Wisconsin Transfer Fee…..…...115 Encumbrances to Real Estate Title…………………………......115 Types of Liens……..……………118 Tax Calculations..………………121 Evidence of Title..………………122 Forms of Title Evidence..……...122 Standard Title Insurance Exceptions………………....…..123

-9Land Use Wisconsin Zoning Law Basics…………………....……..125 Zoning…................…………….126 Water Rights…….……………..128 Private Land Use Controls..…..130

Contents -10Offers to Purchase

-12Other Approved Forms

-14Trust Accounts

Preparing Contracts...……….131 Acceptance and Binding Acceptance………............…....131 Equitable Title.……………...131 Working with Offers: Confidentiality Issues.…….......…............…....132 Drafting and Submission of Offers..........…...........………....132 Cooperating with Other Licensees……................…......132 Presentation of Offers..….…….133 Guaranteed Sales.………....133 WB-11 Residential Offer to Purchase.…………………....…133 WB-14 Residential Condominium Offer to Purchase………...…....155 WB-13 Vacant Land Offer to Purchase……...................160

WB-44 Counter-Offer………..…183 WB-46 Multiple CounterProposal………………………...185 WB-42 Amendment to Listing Contract……………………..….187 WB-40 Amendment to Offer to Purchase…………………....….189 WB-41 Notice Relating to Offer to Purchase……………....…….191 WB-45 Cancellation Agreement and Mutual Release………........192 WB-24 Option to Purchase…...194 WB-25 Bill of Sale………..….197

Trust Accounts…………….209 REEB 18 Trust Accounts……...209 Trust Funds: Client Funds and Real Estate Funds…………....210 IBRETA………………………...210 Depositing Funds……………..211

-13Contract Law

Math Appendix …....350

-11Financing A Licensee’s Role………………169 Mortgage Law.…......................169 Foreclosure.……………........170 Some Facts About Mortgages..171 Other Types of Loans.………….173 Sources of Financing.…………..173 The Primary Market Versus the Secondary Market..………...…178 Calculating a Buyer’s Mortgage Payment….………...............….180 Financing Legislation..………..181

Forms Appendix.……213 Story Problem…….....291 Glossary ……………..325

Rules of Contract Construction…………....………201 Obligation to Furnish Copies and Maintain Records…............…...202 Approved Forms and Legal Advice………………………......202 Validity of Contracts…………..203 Conveyance of Real Property…………………….......204 Status of Contracts..…………...204 WRA Contract Drafting Tools for Licensees………………...…….206 Creation and Termination of Contracts………………...…….206

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Agency Relationships Wis. Stats. 452.01, 452.03, 452.133-138, 452.14, 452.17* REEB 17, 24.03, 24.05, 24.075, 24.17* *Citations are provided for reference only. To access the rules or statutes, go to www.wra.org, click on the Legal Tab and then click on Code Book.

Chapter Overview

This chapter introduces the concepts of agency law and how it functions in a real estate transaction. Agency law creates a real estate licensee’s legal obligations to the parties in a real estate transaction.

Important Terminology agency agent broker business sale buyer’s firm buyer’s licensee client cooperating firms customer exchange fiduciary firm licensee listing firm listing licensee material adverse fact multiple representation multiple representation with designated agency multiple representation without designated agency option to purchase principal firm salesperson selling firm selling licensee single agency subagent

THE NATURE OF THE AGENCY

A

gency is the foundation upon which real estate brokerage is practiced. Agency describes a legal and ethical relationship between a real estate licensee and a party to a transaction. A party could be a buyer, a seller, a landlord, or a tenant. The agency relationship governs the day-to-day actions of every real estate licensee. This agency relationship is complex and often creates confusion for the public. The challenge comes from understanding the role of the licensee and the party that a licensee represents in the transaction. Because the concept is complex and can be confusing, Wisconsin developed strict agency disclosure laws to protect consumers in a real estate transaction. The laws help to ensure that real estate licensees explain agency relationships and the legal obligations they create to buyers, sellers, tenants, and landlords. Wisconsin real estate licensees owe specific duties to all parties in a transaction and additional duties to the clients that licensees represent. Before learning about these duties, an overview of agency terminology will provide the basis for understanding the duties and legal obligations of the agency relationship.

AGENCY TERMINOLOGY Licensee

Licensee is any person licensed under state law to practice real estate. A licensee is any person licensed as a salesperson, an individual broker, or a broker business entity.

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Broker

The definition of broker is expansive and encompasses the many different services that make up brokerage services in Wisconsin. The definition of broker is from Real Estate Practice, which is Chapter 452 of the Wisconsin State Statutes. The four parts of the definition are negotiation, pattern of sales, shows property, or advertises property. If a person is engaging in any of the four parts of the definition of broker, the person must be a real estate licensee. Negotiation A broker is a person that, for another person, and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase or rental of, or the granting or acceptance of an option to sell, exchange, purchase or rent, an interest or estate in real estate, a time-share, or a business or its goodwill, inventory, or fixtures, whether or not the business includes real property. Negotiate has its own expansive and encompassing definition. Negotiate means to provide assistance within the scope of the knowledge, skills, and training required under Wisconsin Statutes, Chapter 452, Real Estate Practice in developing a proposal or agreement relating to a transaction, including any of the following: a) Acting as an intermediary by facilitating or participating in communications between parties related to the parties’ interests in a transaction; b) Completing, when requested by a party, appropriate board-approved forms or other writings to document the party’s proposal consistent with the party’s intent; or c) Presenting to a party the proposals of other parties to the transaction and giving the party a general explanation of the provisions of the proposal. A person is negotiating when acting as an intermediary, completing forms for parties, or presenting proposals. Just providing information or showing a property is not acting as an intermediary and does not constitute negotiations. Determining when a person moves from just providing information about a property to acting as an intermediary is not always clear. Pattern of Sales A broker is also a person who wholly or in part, is in the business of selling or exchanging interests or estates in real estate or business, including businesses’ goodwill, inventory or fixtures whether or not the business includes real property, to the extent that a pattern of sales or exchanges is established, whether or not the person owns the real estate. Five sales or exchanges in one year or ten sales or exchanges in five years is presumptive evidence of a pattern of sales or exchanges. If a builder sells seven newly constructed homes in one year, the builder creates a pattern of sales. The first four sales do not establish a pattern of sales but to sell the additional three homes, the builder must be licensed to provide brokerage services or hire a brokerage firm to represent the builder for the additional sales. Shows Property A broker is a person who for commission, money, or other thing of value, shows real estate or a business or its inventory of fixtures, whether or not the business includes real property, except that it does not include a person showing rental properties. If a property owner pays someone to show the person’s home to potential buyers, the person who is showing the home needs to be licensed. If a rental property owner hires a person to show rental properties to prospective tenants, the person showing the properties does not need to be licensed.

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Advertises Property Lastly, a broker is a person who for commission, money, or other thing of value, promotes the sale, exchange, purchase, option, rental, or leasing of real estate, a time share, or a business or its goodwill, inventory, or fixtures, whether or not the business includes real property. This does not include publishing or disseminating verbatim information provided by another person. If a property owner pays a person to advertise a property, the advertiser needs to be licensed. If a property owner writes an advertisement for property and pays a newspaper to run the advertisement, the newspaper does not need to be licensed. Sales of real property will probably make up the largest part of a licensee’s real estate practice but licensees can also assist parties in other transactions. 1. Exchange An exchange is tax planning tool for a property owner to exchange one property for another and defer payment of the tax on income earned on the transfer. The exchange must involve a transfer of the same kind or class of property such as real estate for real estate. To be eligible for an exchange, the property must be held for productive use in a trade, a business, or as an investment.

.

Jane sellers her apartment building and realizes a $400,000 gain on the sale. If she correctly plans the transfer, she can invest the sale proceeds in a new property, such as a warehouse and defer payment of the capital gains tax on the $400,000 she earned when she sold the apartment building. Exchanges can be complicated and the tax consequences for a property owner who incorrectly exchanges property could be significant. Consumers with questions about exchanges as a tax planning strategy should consult a tax professional. Licensees cannot provide legal or tax advice and cannot practice beyond the scope of their real estate license. 2. Option to Purchase An option to purchase is an agreement to keep open, for a period of time, an offer to sell or lease real property. An option gives a buyer time to resolve questions of financing, title, or zoning before committing to purchase the property. A buyer may use an option to collect several parcels of land for development. Tom wants to acquire several parcels of adjoining property to create a subdivision. He begins purchasing options from the property owners. Once he collects as many parcels as he needs for his development, he can exercise his options and the property owners must sell the parcels to him at that time. When collecting the parcels, if Tom found out that the local zoning board was not going to grant approval of his development, he would choose not to exercise his options and he is not obligated to purchase any of the optioned parcels. The seller, called the optionor, is bound by the option agreement, which means that if the buyer, called the optionee, chooses to exercise the option, the seller must sell the property to the buyer. The buyer, however, does not have to exercise the option. For an option, a buyer pays the seller an option fee for the right to purchase the property during the term of the option. The option fee is usually not refundable though the parties could negotiate other terms. The optionor can sell property subject to an option. The new owner is now bound by the terms of the option. To permit the sale of the property subject to the option, the parties would include those terms in the option agreement, which should also address other terms such as the purchase price, the length of the option and which party is responsible for recording the documents. The state-approved Option to Purchase form (WB-24) is discussed in a later chapter.

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3. Business Sale A business sale is any type of business that is for sale including the goodwill of an existing business and all the assets. A business sale does not necessarily include the building in which the business is located. Ann owns a building where she operates a restaurant. She sells the restaurant, including the restaurant’s goodwill, the name, and all the inventory but not the building. The new owner purchases the business and executes a lease with Ann for the space in the building.

Exceptions: Who Does Not Need a License?

1. R  eceivers, trustees, personal representatives, guardians, or other persons appointed by or acting under a judgment or order of the court.

A personal representative of an estate sells eight properties in one year according to the terms of the decedent’s will. By selling more than five properties in one year, the personal representative establishes a pattern of sales but does not need to have a real estate license or hire a licensee to sell the properties because the personal representative is statutorily exempt from needing a license even when engaging in activities that are part of the definition of broker. 2. Public officers while performing official duties. A sheriff often engages in the sale of real property when selling foreclosed properties. When doing so, a sheriff could quickly develop a pattern of sales by selling more than five properties in one year. Even though acting as a broker according to the definition, the sheriff does not need a license. 3. A  ny custodian, janitor, employee or agent of the owner or manager of a residential building who shows a residential unit to prospective tenants, accepts applications for leases and furnishes prospective tenants with information about the rental of the unit, lease terms and conditions, or other similar information. This exemption covers property managers who show units and provide information. If a property manager can sign leases on behalf of a landlord or can negotiate lease terms on behalf of the landlord, the property manager must have a license. 4. A  ttorneys licensed to practice in the state of Wisconsin while acting within the scope of an attorney’s license. An attorney drafting a contract for a client in a real estate transaction is acting within the scope of the attorney’s license and does not need a real estate license but if the attorney wants to act in a transaction and receive a commission from listing a property or acting as a buyer’s firm, the attorney needs to have a real estate license.

Salesperson

A salesperson is any individual who is associated with a firm, other than a broker. A salesperson holds a real estate license, provides real estate brokerage services on behalf of the salesperson’s firm, and is supervised by a supervising broker. A salesperson is a legal extension of the salesperson’s firm and acts as an agent of the firm in real estate transactions. A salesperson must be associated with a firm. A firm can limit the transactions in which the salesperson participates. If a salesperson’s firm loses its license, temporarily or permanently, the salesperson cannot engage in any real estate transactions until associated with a new firm. There is no a grace period and the salesperson must not participate in any transactions until associated with a new firm. A salesperson can only be associated with one firm at a time.

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Agent

An agent acts on behalf of a principal and carries out the directions of the principal. A seller or a buyer hires a brokerage firm to act as the seller’s or the buyer’s agent in a real estate transaction. A firm engages licensees to act as agents of the firm. A buyer hires a firm to negotiate on the buyer’s behalf in the purchase of a property. The firm is the agent of the buyer, who is the principal in the relationship. A seller hires a firm to list a property for sale. The firm is the agent of the seller and the seller is the principal. A firm engages licensees to act for the firm when working with or representing buyers and sellers. The licensees are agents of the firm.

Client

A client is a party to a transaction who has an agency agreement with a firm for brokerage services. The client is the party who hires the agent to represent the client’s interests. When a seller signs a listing contract, the seller is the client and the listing firm is the seller’s agent. A buyer who signs a buyer agency agreement is a client and the buyer’s firm is the buyer’s agent. A seller hires a real estate firm to list a property. The seller is the client and the firm is the seller’s agent. A licensee is the firm’s agent, which is why real estate licensees are commonly referred to as agents.

Principal Firm

A principal firm is a firm that engages a subagent to provide brokerage services in a transaction. In many transactions, the principal firm is the listing firm. A subagent is the agent of the principal firm.

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Subagent

A subagent means a firm that is engaged by a principal firm to provide brokerage services in a transaction, but that is not associated with the principal firm. A subagent may write an offer for a buyer-customer on a property listed with another firm. A client must consent to the client’s firm using a subagent firm to provide services in a transaction. A client gives or withholds consent in the agency agreement. Traditionally, the listing firm is the principal firm and the subagent is a cooperating firm providing brokerage services to a buyer-customer. A seller hires Firm Y to list a property. The seller is the client and Firm Y is the principal firm and the seller’s agent. A buyer asks Firm X to write an offer on the seller’s property but the buyer does not sign a buyer agency agreement with Firm X. The buyer is Firm X’s customer and Firm X is Firm Y’s subagent.

Customer

A customer is a party to a transaction who is provided brokerage services by a firm and any licensees associated with the firm but who is not a client. A customer does not enter into an agency agreement. The customer receives services given on behalf of and for the benefit of another. If a buyer asks a listing firm to write an offer but does not sign an agency agreement, the buyer is the firm’s customer, not the client, and the firm is providing brokerage services to the buyer on behalf of the seller. If a buyer asks a firm other than the listing firm to write an offer on a property and the buyer does not sign an agency agreement, the buyer is that firm’s customer and that firm is a subagent of the listing firm, which is the principal firm. The terms client and customer are not interchangeable. A buyer calls a firm and asks to look at houses. A licensee associated with that firm shows the buyer several of the firm’s listings. The buyer does not sign an agency agreement. The buyer is the firm’s customer and the firm is providing brokerage services, writing offers, and providing market information on behalf of the firm’s client.

Agency Models

When a consumer signs an agency agreement with a firm, the consumer becomes a client. Agency agreements are contracts between a client and a firm even though a licensee associated with a firm will be the person who signs the contract on behalf of the firm. Clients choose from one of three agency models that will structure the agency relationship with the firm: single agency; multiple representation without designated agency; and multiple representation with designated agency.

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Single Agency

Single agency is when a firm represents either the buyer or the seller as a client, but never both in the same transaction. A seller lists a property with the Kaye Group. A buyer-customer asks Frame Properties to write an offer on the seller’s house. The seller is a client of the Kaye Group with a single agency relationship because Kaye represents one party in this transaction. The buyer is a customer of Frame Properties, and Frame is a subagent of the principal firm, the Kaye Group.

Multiple Representation

A multiple representation relationship is when a firm represents two or more clients in the same transaction. If a buyer and a seller are both clients of the same firm and they are participating in the same transaction, the firm is representing multiple parties in the transaction and it is a multiple representation relationship. The firm is the agent of both the seller and the buyer in the transaction. Because of the potential conflicts, both parties in the transaction must consent to the relationship and receive full written disclosure from the firm that the firm is representing both parties. The disclosure to the parties must contain a statement of the duties owed to clients and to non-clients and provide the clients the opportunity to consent to the firm providing services to more than one client in the transaction. A client can withdraw consent to a multiple representation relationship at any time. There are two forms of multiple representation relationships: 1) Multiple representation without designated agency; or 2) Multiple representation with designated agency. Multiple Representation without Designated Agency In a multiple representation without designated agency relationship, a firm provides services as agreed to in the clients’ agency agreements, but the firm and all licensees associated with the firm must remain neutral in the transaction negotiations. The firm and its licensees cannot place the interests of one client ahead of the interests of another client in the transaction. A single licensee can facilitate the entire transaction. If a firm has two clients who are going to be in the same transaction but the clients have chosen different agency models, the firm cannot represent both clients in the transaction. The firm and the parties can amend existing agency agreements to address the conflict. The Adams list a house with the Kaye Group. The Lees sign buyer agency agreement with the Kaye Group. The Lees want to write an offer in the Adams’ home. Both the Adams and the Lees are clients of the same firm. The Kaye Group has multiple representation relationship with both the Adams and the Lees.

hires

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Multiple Representation with Designated Agency When two of a firm’s clients are in the same transaction and the clients choose multiple representation with designated agency, the firm is representing multiple parties in the transaction but the firm designates an agent to each client and the designated agent does not have to remain neutral in the transaction. Each client receives full negotiation services from their designated agent, both of whom are associated with the same firm, even if the negotiation services place the interests of one of the firm’s clients ahead of the other. Because the agents may place their client’s interest ahead of the other, a firm must designate separate agents for each client in the transaction. If a firm’s clients have not chosen matching agency models or if one party withdraws consent, the firm and its licensees cannot place one client’s interests ahead of the other client’s interest and must remain neutral. To remedy the mismatched agency model, the clients could amend their agency agreements or one client could terminate the agency agreement and be a customer of the firm or hire a different firm. The Adams hire the Kaye Group to list their house. The Lees hire the Kaye Group to help them find a property. The Lees want to buy the Adams’ house. Both the Lees and the Adams have consented to designated agency. The Kaye Group has multiple representation. The Lees have a designated agent. The Adams have a designated agent.

Fiduciary

A fiduciary is a person who is responsible for the property of another. When the Adams hire the Kaye Group to represent them, the Kaye Group becomes the Adams’ fiduciary. The Kaye Group becomes responsible for items such as the Adams’ earnest money payments and transaction documents; such as sales contracts and inspection reports.

Cooperating Firm

Cooperating firms are firms who cooperate in one transaction. This can be when a seller lists a property with one firm and a buyer signs a buyer agency agreement with another firm that writes the successful offer for the buyer on the other firm’s listing. There are also cooperating firms in a transaction when a seller lists a property with one firm and a buyer-customer has a different firm write a successful offer on the other firm’s listing. The Adams list their home with the Kaye Group. The buyers use Frame Properties to draft an offer. The Kaye Group and Frame Properties are cooperating firms. They are cooperating firms if the buyer signs a buyer agency agreement and becomes a client of Frame Properties. They are also cooperating firms if the buyer does not sign a buyer agency agreement and is a customer of Frame Properties. If the buyer does not sign a buyer agency agreement with Frame, Frame is a subagent of the Kaye Group. The Kaye Group is the principal firm.

Who are the People in Your Transaction?

Firms and their licensees conduct different parts of a transaction depending on whether they are working with a seller, a buyer-customer, or a buyer-client. Labels help describe the role of firms, licensees associated with firms and how any firms and licensees will be compensated for a successful transaction.

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Listing Firm

When a seller signs a listing contract with a firm, that firm is the listing firm. The seller is the client of the listing firm and the listing firm is an agent of and represents the seller. A seller lists a home with Smith Realty. Smith Realty is the listing firm and the seller is Smith Realty’s client.

Listing Licensee/Listing Agent The licensee associated with the listing firm who actually secured the listing and executes the listing contract is the listing licensee. Listing licensees are also called listing agents. Both are accurate terms - listing agent is used in every day conversation whereas listing licensee is technically more correct and is the term used on the state licensing exam. The listing agent is the agent of the listing firm and also represents the seller. When the seller contacts Smith Realty to list the home, Lucy, who is salesperson working for Smith Realty, meets with the seller and signs the listing contract. Lucy is the listing agent/listing licensee.

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Selling Firm

The selling firm is the firm that finds the buyer and writes the offer. A selling firm is a subagent of the listing firm. A buyer wants to write an offer on the property the seller listed with Kaye Group. The buyer-customer contacts Frame Properties to write the offer.

Selling Licensee/Selling Agent

The licensee associated with the selling firm that finds the buyer and writes the offer is the selling licensee. The selling licensee/selling agent is the agent of the selling firm. When the buyers contacted Frame Properties to draft an offer, Kelly, who is a salesperson with the Frame Properties, meets with the buyers and drafts the offer. Kelly is the selling agent (or selling licensee) for Frame Properties, which is the selling firm, a subagent of the listing firm, and a cooperating firm.

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Buyer’s Firm

The buyer’s firm is a firm that signs a buyer agency agreement with a buyer. The buyer is a client of the buyer’s firm and the buyer’s firm is an agent of the buyer. A seller lists a property with the Kaye Group. The Kaye Group is the listing firm. Lucy drafts the listing contract with the sellers. Lucy is the listing agent (or listing licensee). A buyer, who has signed a buyer agency agreement with the Kaye Group, wants to write an offer on the seller’s house. In this case, the Kaye Group is also the buyer’s firm and has a multiple representation relationship with the buyer and the seller because the Kaye Group is representing two clients in the same transaction.

Buyer’s Licensee/Buyer’s Agent

The licensee associated with the buyer’s firm who drafts the offer for the buyer-client is the buyer’s licensee. The buyer’s licensee/buyer’s agent is an agent of the buyer’s firm. When the buyer wants to draft an offer, Lucy, who took the listing and is the listing agent, also drafts the offer. Lucy is the listing agent and the buyer’s agent. For Lucy to participate in this transaction, both the buyer and the seller must consent to multiple representation without designated agency. If the buyer and seller want multiple representation with designated agency, the Kaye Group must assign someone other than Lucy to draft the buyer’s offer and both the seller and the buyer receive individual agents to negotiate the transaction and the agents can place their client’s interest ahead of the other.

If the buyer contacts Frame Properties rather than the Kaye Group to write the offer and signs a buyer agency agreement with Frame Properties, Frame Properties is the buyer’s firm. Kelly, who is a salesperson with Frame Properties, writes the offer for the buyer. Kelly is the buyer’s agent (buyer’s licensee). Because no firm represents both the seller and the buyer in the transaction, there are no multiple representation relationships. The seller is the Kaye Group’s client and the buyer is Frame Properties’ client. Kaye and Frame are cooperating firms.

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Seller Agency

Buyer Agency

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This diagram shows seller agency with cooperating firms.

Agency Relationships - 1

THE AGENT’S DUTIES Duties to All Persons in a Transaction

Licensees owe legal duties to all parties in a transaction, regardless of the party the licensee represents. 1. L  icensees must provide brokerage services to all parties honestly and fairly.



2. P  rovide brokerage services with reasonable skill and care. This also means that a licensee cannot discriminate against, deny equal services to, or be a party to any plan or agreement to discriminate against any person in an unlawful manner under federal, state, or local fair housing law. Reasonable skill and care also refers to a licensee’s competence to participate in a transaction. If a licensee is not competent to participate in a transaction, the licensee can engage the assistance of one who is competent, identify that person if the person works for a different firm, and describe that person’s contribution. A newly licensed salesperson might not be competent to take a listing for a strip mall that the seller wants to list for $2,000,000. The licensee probably does not yet have the knowledge or experience to properly represent the seller. The licensee could get assistance from a more experienced colleague, refuse the listing, or employ the services of outside help, such as an attorney. If the licensee hires an attorney or a licensee from a different firm, the licensee must identify that person and describe the contribution. Licensees must also protect the public against fraud, misrepresentation, and unethical practices. Licensees must be knowledgeable regarding laws, public policies, and current market conditions on real estate matters and assist, guide, and advise the buying or selling public based upon these factors.

3. D  isclose to each party all material adverse facts that the firm knows and that the party does not know or cannot discover through reasonably vigilant observation in a timely manner, unless the disclosure is prohibited by law. An adverse fact is a condition or occurrence that will fit into one or more of the following parameters: •

Has a significant adverse effect on the value of the property.

•

Significantly reduces the structural integrity of the property.

•

Presents a significant health risk to the occupants of the property.

•

Is information that indicates that a party to the transaction is not able to or does not intend to meet their obligations under the contract.

A material adverse fact is defined as an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance, that it affects or would affect the party’s decision to enter into a contract or agreement concerning a transaction or affects or would affect the party’s decision about the terms of such a contract or agreement. A licensee must disclose all information that is important to a party, such as structural defects, as well as information that a party identified as important. Licensees have an obligation to disclose known material adverse facts but licensees do not have to investigate or go searching for material adverse facts. Licensees also must disclose information that suggests a material adverse fact.

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A buyer with a severe cat allergy tells a licensee that the buyer does not want to look at or purchase a house where cats have lived. If the licensee knows that cats lived in a house or finds out that cats have lived in the house, the licensee must disclose this to the buyer. The licensee does not have a duty to investigate and determine whether there are, or have been, cats on the property. Determining whether information is a material adverse fact or suggests a material adverse fact that a licensee must disclose can be difficult. Chapter 4 addresses a licensee’s disclosure obligations, including material adverse facts.



There is information that licensees cannot disclose because legal prohibitions prevent disclosure. For example, if a buyer or a seller asks about information that relates to a person’s status as a member of a protected class under fair housing laws, a licensee cannot disclose this information. A licensee may not disclose information that constitutes unlawful discrimination, such as whether a particular buyer is a member of a certain ethnic or racial group. To disclose this information would be a violation of fair housing laws. Chapter 5 covers fair housing laws and a licensee’s duties and obligations related to those laws. 4. L  icensees must keep confidential any information given to the licensee, or any infor­mation obtained by the licensee that a reasonable party would want to be kept confidential, unless the information must be disclosed by law or the person whose interests may be adversely affected by the disclosure specifically authorizes the disclosure of particular information. A licensee shall continue to keep the information confidential after the transaction is complete and after the licensee is no longer providing brokerage services to the party. Confidentiality survives the transaction. Louie is an agent of XYZ and is writing an offer for a buyer on a property listed by QRS at $175,000. The buyer tells Louie that the buyer is willing to pay full price but wants to offer $165,000. Louie cannot tell the buyer that Louie thinks the property is overpriced, because the buyer is a customer and Louie is a subagent of the principal firm, QRS. However, even though the buyer is Louie’s customer and not a client, Louie cannot tell the seller or the listing agent that the buyer is willing to pay more because that information is confidential.







5. P  rovide accurate information about market conditions to any party who requests the information within a reasonable time of the request. Upon request, the licensee needs to provide information such as the sale price of properties, the list price, and how long properties have been on the market. 6. S  afeguard trust funds and other property held by the firm. Firms must hold parties’ property in compliance with state rules. A licensee might hold property such as earnest money and transaction documents. 7. W  hen negotiating on behalf of a party, licensees have the duty to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

Pre-agency Stage

A firm can provide some brokerage services before a consumer decides whether to be a client or a customer. This is pre-agency. A buyer may meet with a licensee to gather information about the marketplace or even to gather a list of available properties that might meet the buyer’s needs. The buyer may not yet know whether the buyer wants to be a client or receive brokerage services as a customer. Licensees can provide information to consumers, including showing properties, while in the pre-agency stage. Negotiations of any form cannot occur during the pre-agency stage.

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A buyer looked at a few houses with a licensee but has not written any offers. The licensee and buyer have not discussed whether the buyer will be a customer or a client and the licensee and the buyer are in pre-agency. If the buyer asks the licensee to write an offer or starts asking for the licensee’s opinions and advice on a property, before the licensee can provide those services, which constitute negotiations, the buyer and the license need to discuss agency and the buyer must decide whether to be a customer or a client. In pre-agency, the firm and the firm’s licensees owe the duties owed to all persons. A licensee may not provide any party in the transaction advice or opinions relating to the transaction that are contrary to the interests of any other party unless required by law. A licensee remains neutral and provides information to the consumer without taking an agency or advocacy role for either party. A licensee showing a listing to a buyer during the pre-agency stage cannot provide advice or opinions contrary to the seller’s interests. The licensee is not acting as an agent for either party, but is simply providing information to the consumer.

Duties Owed to a Client

In addition to the duties owed to all persons, licensees owe additional duties to their clients. The duties owed to all persons supersede the duties owed to a client. If there is ever a conflict, the licensee observes the duties owed to all parties in a transaction. A client is a party who has signed a listing contract or buyer agency agreement with a firm. 1. Represent the client’s interests loyally by placing the client’s interests ahead of the licensee’s interest. A licensee may not, unless required by law, give information or advice to other parties who are not the clients of the licensee’s firm if giving the information or advice is contrary to the client’s interests. Alfred is working with a buyer who is looking for waterfront property with 200 ft. of lake frontage with an existing home in good condition. The home must have at least 2,000 sq. ft. and the entire property cannot cost more than $150,000. Alfred knows this will be almost impossible to find and if he did find this property, he would like to purchase it. Surprisingly, Alfred finds a listing that fits the buyer’s requirements. If Alfred is a selling licensee, working with a buyer-customer, Alfred can buy the property for himself. If Alfred is the buyer’s licensee, he must put the buyer’s interest ahead of his own and tell the buyer about the property. 2. Provide, when requested by the client, information and advice to the client on matters that are material to the client’s transaction and that are within the scope of the knowledge, skills, and training of a real estate licensee. 3. Disclose all material facts affecting the transaction, not just adverse facts. Material facts are facts that a licensee knows, that are material to the transaction, and that the client does not know and could not discover through reasonably vigilant observation. Material facts do not include confidential information and information that the licensee cannot legally disclose. This disclosure duty is not the same as a licensee’s duty to disclose material adverse facts to all parties, which is disclosure of all the important and negative facts. The duty to disclose all material facts is the duty to disclose all important information that is both positive and negative. A seller is an older woman. The seller’s daughter wants to offer a selling bonus to any agent who sells the property with a closing date before July 1. The seller’s daughter does not want the listing licensee to tell the seller. The possibility of a selling bonus is a material fact that must be disclosed to the seller. 4. Fulfill any obligation required by the agency agreement and any order of the client that is within the scope of the agency agreement and is consistent with other duties. 5. Unless a client waives the duty, negotiate on behalf of the client.

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Waiver of the Duty - A client can waive the duty of negotiation in part or in full if the client waives the duty expressly and in writing. When a client wants to waive a licensee’s duty of negotiation, the licensee must provide to the client a written disclosure including: a) A copy of the text of what the client is waiving and a statement that, as a consequence of the client’s waiver, the firm and its licensees do not have a legal duty to perform the duty of negotiation; and b) A statement that as a consequence of the client’s waiver, the client may require the assistance of an attorney or another service provider to fulfill the client’s goals and contractual duties in the transaction. The written disclosure serves to ensure the client understands the significance of waiving this service and to warn the client that, because of the waiver, the client may require the assistance of an attorney or another settlement service provider during the transaction.

Duties for Subagents

A subagent is a firm engaged by a principal firm to provide brokerage services in a transaction but that is not associated with the principal firm. A subagent owes the duties to all persons as well as the duty of loyalty to the principal firm’s client. Because a subagent is not a party to the agency agreement between the principal firm and the buyer or the seller, the agent is not subject to the provisions of the agency agreement. A subagent of a listing firm drafting an offer for a buyer-customer on the listing firm’s listing, cannot put the subagent’s interest ahead of the seller’s or provide the buyer advice or opinions contrary to the interests of the seller unless required by law. The subagent cannot give the buyer an opinion that the property is overpriced or advise the buyer to offer less than the list price. If the buyer wants this type of opinion or advice, a buyer must hire a firm with a buyer agency agreement and become a client rather than a customer. A subagent may negotiate on behalf of a person who is not the principal firm’s client if the principal firm engages the subagent with the client’s consent. A subagent must provide agency disclosure that lists the licensee’s duties to the party with whom the subagent is working.

AGENCY DISCLOSURE OBLIGATIONS

Wisconsin statutes require real estate licensees to discuss agency relationships with buyers and sellers before providing brokerage services. The state requires that licensees provide disclosure using mandated plain-English language to customers and clients involved in real estate transactions. The state created the disclosure language to make sure consumers understand the agency relationship and a licensee’s duties to all parties in a transaction and the additional duties to clients. Some of the state-approved agency agreements contain the mandated disclosure language. The Wisconsin REALTORS® Association (WRA) developed agency disclosure forms for licensees to use if they are using agency agreements that do not contain agency disclosure language. Licensees must inform the consumer of the disclosure obligations and any disclosure form a licensee uses to meet the disclosure obligations must contain the state-mandated language.

Customer Agency Disclosure Obligations

A licensee may not negotiate on behalf of a customer unless the licensee provides the customer with the state-mandated disclosure statements. The written disclosure statements state that the recipient is a customer, rather than a client, of the licensee’s firm. The statement informs the customer that the firm or licensees associated with the firm may provide brokerage services to the customer.

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The agency disclosure statement also contains a plain-language summary of the licensee’s duties to a customer. The Forms Appendix of this book contains the WRA Disclosure to Customer form that a licensee can used to provide disclosure to customers. A seller hires Smith Realty to list the seller’s property. The seller is Smith Realty’s client. A buyer wants Jones Realty to write an offer on the Smith Realty listing, but does not sign a buyer agency agreement with Jones Realty. The buyer is Jones Realty’s customer; Jones Realty is a subagent of the principal firm, Smith Realty. Smith and Jones are cooperating firms. Before writing the offer, Jones Realty must make the mandated agency disclosure to the buyer-customer. The disclosure serves to inform the buyer that the buyer is a customer and not a client of Jones Realty and that Jones owes the duties owed to all parties in a transaction to the buyer. To make this disclosure, Jones could use the WRA’s Disclosure to Customer form or another similar document that contains all of the statemandated disclosure language.

Client Agency Disclosure Obligations

A firm or a licensee associated with a firm must provide the state-mandated written disclosure statements to a client no later than the time the firm enters into an agency agreement with the client. Agency disclosure statements are contained in some of the state-approved agency agreements. If a licensee on behalf of a firm is using an agency agreement that does not contain the mandated disclosure language, the licensee must provide a separate document to achieve agency disclosure. The Forms Appendix of this book contains the WRA Disclosure to Client form that a licensee can used to provide disclosure to customers. The mandated client disclosure language lists the duties that a licensee owes to all parties in a transaction and the additional duties a licensee owes to a client. Agency disclosure to clients also includes descriptions of the agency relationships and how a firm’s multiple representation of clients in a transaction will affect the firm’s role in the transaction. It also includes an explanation of multiple representation with or without designated agency and that the legal disclosure obligations require a licensee to disclose some information to all parties in a transaction even if a party does not disclose or does not want the licensee to disclose. The WB-1 Residential Listing Contract contains agency disclosure within the agreement. Agency agreements will be covered in more detail in Chapter 3. The agency disclosure in the listing contract allows the client to select an agency choice when executing the listing contract. This section of the agency agreement includes a space for the client to indicate the form of agency relationship the client wants with the firm. The client checks the box next to the form of agency relationship the client wants. There is also a statement informing the client that the client’s agency choice can be withdrawn at any time. A client must withdraw consent to the agency choice in writing. CHECK ONLY ONE OF THE THREE LINES BELOW: ______The same firm may represent me and the other party as long as the same agent is not representing us both. (multiple representation relationship with designated agency) ______The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved. (multiple representation relationship without designated agency) ______The same firm cannot represent both me and the other party in the same transaction. (I reject multiple representation relationships) Licensees must be able to explain what these choices mean to clients. A client selects one option by checking the box next to the choice. If a licensee is executing an agency agreement with more than one client, such as when representing two property owners listing a property, one “x” before an agency choice is sufficient to demonstrate all of the sellers’ agency selection.

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The disclosure language requires a licensee to disclose in the agency agreement the commission or fees the client may owe to the firm and directs a client to clarify any questions on fees or commissions before signing the agreement. It also informs a client that the firm or its licensees cannot provide legal advice. If the agency agreement is for providing brokerage services related to real estate primarily intended for use as a residential property containing one-to-four dwelling units, the licensee shall request the client’s signed acknowledgement that the client received the written disclosure statement. A client’s signature on a state-approved agency agreement or on a separate disclosure document used with agency agreements that do not contain the mandated language serves as acknowledgment of agency disclosure.

Providing Agency Disclosure

A licensee must provide agency disclosure in all transactions, not just residential transactions. This includes commercial, agricultural, business, vacant land, and property management transactions if the property manager is negotiating lease terms or signing leases on behalf of the rental property owners.

Acknowledgement of Agency Disclosure

Licensees must ask a party to acknowledge receipt of the agency disclosure in residential transactions involving one-to-four dwelling units. A customer acknowledges receipt of agency disclosure by signing an agency disclosure form and a client acknowledges by signing the agency agreement or a separate form if the agency agreement does not contain agency disclosure. Clients Some of the state-approved agency agreements contain agency disclosure so licensees do not need supplemental disclosure documents. If a license is using an agency agreement that does not contain agency disclosure, the licensee must provide the client with a separate disclosure to client form before executing an agency agreement. Customers Licensees must provide agency disclosure to customers before negotiations. The WRA’s Disclosure to Customer form has spaces for a customer to sign, date, and print the customer’s name to acknowledge receipt of the disclosure. A disclosure to a customer does not create any contractual or legal obligation for a buyer or a seller. Licensees must ask for a party’s acknowledgment of receipt of the agency disclosure in residential transactions for properties with one-to-four dwelling units. A party does not have to sign the acknowledgment but a licensee must ask for it. If a party will not sign a document acknowledging that the licensee provided agency disclosure, the licensee should document that in the party’s file.

Additional Disclosure Obligation by Buyer’s Firm

When a firm is representing a buyer and the buyer is looking for a residential property with oneto-four dwelling units, and the buyer’s licensee is negotiating directly with the seller or the listing firm or its licensees, the buyer’s licensee must disclose the buyer agency relationship to the seller or the listing firm at the earliest of: 1. The first contact with the seller or the listing firm where the parties exchange information about the transaction or the seller; 2. A showing of the property; or 3. Any other negotiations with the seller or listing firm. To ensure compliance with this disclosure obligation, a licensee’s best practice may be to disclose buyer agency at the first opportunity for disclosure.

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DISCLOSURE OF COMPENSATION AND INTERESTS Agency law prohibits an agent from competing with a principal because a licensee cannot perform services on behalf the licensee’s client with undivided loyalty if the licensee also has an interest in the transaction. Licensees can participate in transactions where the licensee also has an interest in limited situations where there is written disclosure of the licensee’s interest and written consent from the parties to the transaction. 1. A licensee acting in a real estate transaction may not accept compensation related to the transaction from anyone other than the licensee’s client, principal firm, or the licensee’s firm with without prior written consent from all parties in the transaction. A party can give consent in an agency agreement, an offer to purchase, or another written document. A buyer hires Anne with a buyer agency agreement. The buyer wants the seller or the listing firm to pay the buyer’s firm’s fee. On line 32 of the WB-36 Buyer Agency Agreement, the buyer gives permission for Anne to receive compensation from other parties. Anne drafts the buyer’s offer including a provision stating that the seller will pay Anne’s 5% success fee at closing. If the seller accepts this offer, then the seller can pay Anne directly because the buyer consented to this in the buyer agency agreement. 2. Licensees acting as agents in a transaction cannot act on the licensee’s own behalf and cannot act for a member of the licensee’s immediate family without the prior written consent of all parties. A licensee also cannot act on behalf of any firm, other organization, or business entity in which the licensee has an interest without the prior written consent of all parties to the transaction. The licensee shall obtain consent in an offer to purchase, option, lease, or other transaction document. Todd writes an offer for his father. In the offer to purchase, Todd includes “Licensee drafting this offer is the son of Buyer” in the section for Additional Provisions. Immediate family means any of the following: •

Parents, step­ parents, grandparents, foster parents, children, stepchildren, grandchildren, foster children, brothers and their spouses or domestic partners, sisters and their spouses or domestic partners, of a licensee or a licensee’s spouse or domestic partners.

•

The spouse or domestic partners of a license.

•

Aunts and uncles, sons-in-law or daughters-in-law of a licensee or a licensee’s spouse or domestic partners. 3. Licensees acting as agents in transactions may not receive referral fees from individuals or entities for a referral, unless prior to or at the time of referral, the licensee discloses to the party in writing that the licensee might receive compensation for the referral or that the licensee has an interest in the person or entity providing services. A licensee receives referral fees from a lawn maintenance company for every seller that hires the company. Before or at the time the licensee makes the referral, the licensee must disclose to the seller that the licensee may receive compensation in exchange for the referral. Licensees do not need to disclose referral fees for real estate services between licensees. Danny took a listing for sellers who are moving to Florida. He refers them to his friend Matt, who is a Florida licensee. The sellers hire Matt to help them find a house in Florida. When they purchase the house, Matt gives Danny a referral fee. Neither Matt nor Danny need to disclose the referral fee and do not need the seller’s consent to pay or receive the fee.

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4. A listing firm cannot pay compensation or an incentive to a licensee who is acting as a buyer in a transaction without prior written consent from the seller. When acting as principals, licensees cannot earn commissions. Licensees may include incentives in an offer to purchase requesting that the listing firm or the seller pay the licensee what the licensee would have earned if the licensee could earn a commission on the transaction. Ethan has a Wisconsin real estate license and is purchasing a new residence. He cannot collect any compensation or incentive from the listing firm unless the seller consents. Ethan may include an incentive in his offer such as “The listing firm will pay Buyer 3% of the purchase price at closing.” 5. A licensee acting as a principal in a real estate transaction shall disclose in writing the licensed status and intent to act in the transaction as a principal at the earliest of:  a) The first contact with the other party or an agent representing the other party where information regarding the other party or the transaction is being exchanged; b) A showing of the property; or c) Any other negotiation with the seller or the listing firm. 6. Licensees cannot enter into tie-in arrangements including: a) Selling real estate the licensee owns or controls to a buyer only if the buyer agrees to purchase another parcel of real estate; b) S  elling real estate the licensee owns or controls only if the buyer agrees to list a piece of property with the licensee; or c) S  elling vacant land the licensee owns or controls only if the buyer agrees to use one or more specific builders to develop it unless: i) The builder owns a bona fide interest in the real estate and there is full disclosure; or ii) The licensee is the builder or the builder owns the real estate, personally or by a commonly controlled corporation and whose business is selling improved property and not vacant land and there is full disclosure; or ABC Builders buys 15 acres to develop a subdivision. ABC requires all buyers to agree to use ABC to construct the home on the currently vacant lot. ABC builds the home and sells both the lot and the home to the buyer in one transaction. iii) The agreement to sell if the buyer uses one or more specific builders is a bona fide effort to maintain development quality or architectural uniformity and the licensee does not receive compensation from the contractor for the agreement. Subdivision deed restrictions require homeowners to use a certain builder for new construction and repairs to maintain architectural uniformity.

THE REAL ESTATE OFFICE A firm may engage both licensed and unlicensed individuals in a real estate office. Licensed individuals can participate in licensed real estate activities such as conducting open houses, negotiating on behalf of parties, and showing property to buyers. Unlicensed individuals can provide administrative support to licensed individuals such as managing transaction paperwork, creating marketing, or advertising materials, or filling in a contract at the direction of a licensed individual. An unlicensed individual cannot assist at an open house unless a licensee is there to provide direct on-site supervision. A person who engages in real estate practice without a license can be fined not more than $1000 or imprisoned not more than 6 months or both. This penalty also applies to any person, licensed or unlicensed, who violates a provision of the state real estate statutes, such as failing to provide agency disclosure or receiving non-real estate referral fees without written consent from the parties in the transaction. 20

Agency Relationships - 1

A licensed broker who is associated with a firm can engage in independent practice outside of the brokerage services provided on behalf of the firm. The firm must give the broker written permission to engage in independent practice and the broker must avoid conflicts of interest. A person with a sales license cannot engage in independent practice and can only be associated with one firm at a time. Adam is a licensed broker and is a property manager but wants to learn more about commercial real estate transactions. He contacts a commercial firm who agrees to engage him to provide brokerage services on behalf of the firm. Adam and the commercial firm execute an agreement stating that Adam can continue to manage property and that all earnings he receives from his property management business belong to him where fees he earns on commercial brokerage transactions belong to the commercial firm to be paid to Adam according to his independent contractor agreement.

Responsibilities of Firms and Licensees

A firm shall supervise the activities of any licensee associated with the firm. Supervision includes the review of all agency agreements, offers to purchase, leases, other documents, and trust account records prior to closing of a transaction. The review of documents consists of making sure proper agency disclosure was provided, approved forms were used and used correctly, and communicating any error discovered in the transaction documents to the licensee. The firm must provide all licensees reasonable access to a supervising broker for purposes of consultation regarding real estate practice issues. Firms shall provide all licensees associated with the firm a written statement of procedures under which the firm and licensees shall operate with respect to handling documents relating to a real estate transaction. A licensee who is notified of an error is responsible for communicating the error to the party and the party determines whether to request any changes to address the error. Licensees associated with a firm must submit transaction documents to the firm in a timely manner. A firm can delegate supervision to supervising broker. Delegation must be in writing, identify the duty delegated, and be signed by the firm and the broker to whom delegation is made. Firms must ensure all licensees associated with the firm are properly licensed. This refers to both original licenses and biennial renewals of licenses.

Personal Assistants

A real estate office may also engage or employ ­personal assistants. A personal assistant helps the firm and licensees associated with the firm real estate business. Personal assistants can be either licensed or unlicensed. Unlicensed Personal Assistant An unlicensed personal assistant does not have a real estate license or holds a real estate license but does not provide services that require a real estate license. A person with a real estate license may choose to work for a firm providing services that do not require a license. This may reduce a firm’s overhead expenses for carrying insurance or paying annual membership dues based on the number of licensees associated with the firm. The firm directly or a licensee associated with the firm can employ an unlicensed personal assistant. Unlicensed personal assistant cannot receive payment based on production, such as a commission and they must be paid either hourly or salary wages. Licensed Personal Assistant A firm can engage licensed personal assistants directly. Licensed personal assistants must be associated with the firm and not individual licensees. Licensed personal assistants can be paid based on production, hourly, or with a salary.

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Notifying the Department of Safety and Professional Services (DSPS)

Licensees must notify the DSPS if there are changes to their practice or changes affecting their license. 1. A licensee who wants to associate with a firm shall notify the DSPS of the name of the firm on forms provided by the DSPS. 2. All licensees must notify the DSPS of their licensed status and any changes to their license. 3. A licensee must notify the DSPS of the licensee’s association with a firm before the licensee provides real estate services on behalf of a firm. 4. If the licensee transfers to another firm, the licensee must notify the DSPS and pay a fee before the licensee provides real estate services on behalf of the new firm. 5. A licensee who terminates association must notify the DSPS in writing within 10 days of terminating association with the firm. 6. A firm that terminates a licensee’s association with a firm must notify the DSPS within 10 days after the termination. 7. If a licensee is convicted of a crime, the licensee must send a copy of the complaint and the judgement to the Real Estate Examining Board within 48 hours of conviction. The Real Estate Examining Board reviews complaints, issues licenses, and administers discipline under the DSPS.

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2  

Agency Issues Wis. Stats. 240.10, 452.19 REEB 24.08, 24.10

Chapter Overview Parties can create agency in several ways and can create a variety of agency relationships. This chapter explores the creation and termination of agency and how firms earn commissions or success fees in transactions.

Important Terminology buyer agency agreement damages exclusive agency listing contract exclusive right to sell listing contract express agency fee-splitting general agency implied agency in-house sale listing contract mirror image offer multiple listing service net listing contract one-party listing contract open listing contract procurement ready, willing, and able buyer rescission special agency

THE CREATION OF AGENCY

A

principal and an agent can create agency either through a formal agreement or through the actions of the parties. When parties create agency through a formal agreement, the agreement can be verbal or it can be in writing. Agency through formal agreement is express agency. Parties can also create agency without a formal agreement through the actions of one or both of the parties. Parties create implied agency when they do not have a formal agency agreement but develop an agency relationship through the actions of one or both parties. Implied agency relationships are usually unintentional and arise through the accidental actions of a party that leads the other party to believe they have an agency relationship. In Wisconsin, parties must execute express, written real estate agency agreements. A court will not enforce a verbal real estate agency agreement.

Express Agency: A seller lists a property with a firm. The seller and the firm have express agency through a formal, written agreement, which in this case, is the listing contract. A licensee associated with the firm drafts an offer for a buyer who does not sign an agency agreement. The buyer is a customer of the firm. The customer and the firm do not have an agency agreement. Implied Agency: A listing agent writes an offer for a buyer. The licensee provides the buyer with current market information, explains that the property is overpriced, has been on the market for close to one year, and that the seller will probably be willing to negotiate on price. The licensee helps the buyer develop a negotiation strategy that should help the buyer write a strong offer. The licensee, through actions rather than an intentional agreement, created an implied agency relationship with the buyer. The licensee treated the buyer as a client rather than a customer when the licensee provided opinions, advice, and a negotiation strategy. Now the firm has a multiple representation relationship with the buyer and the seller without their consent or disclosure of the relationship.

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An agency agreement is an employment agreement for personal services based on a fiduciary relationship of trust and confidence in the firm. A seller uses a listing contract to hire a firm to market property and pay the firm a commission according to the terms of the listing contract. There are five different ways to earn a commission under the listing contract. A ready, willing, and able buyer is one who has the ability to complete the buyer’s obligations in the buyer’s offer. A ready, willing, and able buyer is not under duress, is financially qualified, and of legal age. A buyer uses a buyer agency agreement to hire a firm to negotiate an ownership interest in a property. A tenant uses a tenant representation agreement to hire a firm to negotiate a rental interest. Agency agreements are contracts between a client and a firm, not the licensees associated with the firm. A licensee associated with a firm cannot terminate, shorten the term, or reduce the commission amount of an agency agreement without the supervising broker’s written permission. Agency agreements must contain all of the following elements to be valid. 1. Description of the Real Estate A listing contract uses a street address to describe the property. If the street address is not sufficient, a party can use additional information like a legal description or a tax number to identify the property. A buyer agency agreement usually includes a general description of the property rather than a street address. For example, a buyer might describe a property as “a residential property with a list price between $150,000 and $180,000.” 2. Statement of the Price A listing contract must include a list price. A seller can use range pricing as a marketing tool but should not use a range for the list price in the listing contract. A seller can address range pricing in the marketing plans of the listing contract. Stating “price to be determined” is inaccurate and not the correct way to fill out a listing contract. The price in the listing contract is the amount at which the seller wants the firm to list the property, not an estimation or statement about the eventual purchase price of a property. A buyer usually states the price as a range because, as with the description of the property, the buyer may not know the exact price of the property the buyer will purchase. For example, a buyer may state the price as $200,000-$240,000. 3. Statement of the Commission A listing contract may list the commission as a percentage of the purchase price, a flat fee, or some other method. A firm’s commission structure is set by company policy. Licensees associated with a firm typically do not have the authority to set commission structures. State law does not dictate a maximum or minimum commission. 4. Statement of the Term This is the period for which the parties contract. Parties cannot extend an expired agency agreement. 5. In Writing - Agency contracts must be in writing. 6. Signed by the Person Who Will Pay the Commission The party that signs an agency agreement is agreeing to pay the firm for successful completion of the contract terms. Usually the person signing an agency agreement is the buyer or the seller. Neither the buyer’s signature nor the seller’s signature is a legal requirement to have a valid agency agreement.

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TYPES OF AGENCY CONTRACTS

There are several types of agency contracts and each contract creates the legal obligations and rights of the parties to the contract. A special agency relationship gives an agent the authority to represent a principal in a single transaction. The principal does not authorize the agent to act in any other transaction. A listing agreement usually creates a special agency relationship. The seller gives the listing firm the right to represent the seller in one specific transaction. A listing firm lists a property for 12 months. The seller accepts an offer and the transaction closes five months into the listing. The listing firm’s special agency relationship with the seller terminated when the buyer bought the property. An agency agreement can give a firm a broader authority to represent a client. A general agency relationship gives an agent the authority to represent a principal in a range of matters. A buyer can draft an agency agreement to establish a general or a special agency relationship with the buyer’s firm. Lines 195-196 of the WB-36 Buyer Agency/Tenant Representation Agreement state, the “Broker and Buyer agree that this Agreement shall/shall not (strike one) end [if neither is struck, this Agreement shall end] when Buyer procures an interest in property.” If the parties strike shall, the sentence reads “shall not end when Buyer procures an interest in property,” then the agreement is a general agency relationship. If the parties strike shall not then the sentence reads “shall end when Buyer procures an interest in property,” then the agreement is a special agency relationship. A buyer agency agreement states that it shall not terminate when the buyer procures an interest in property and the term of the agreement is one year. Three months after entering into the agreement, the buyer purchases a property. The agreement does not terminate because the buyer created a general agency relationship with the firm. When the buyer wants to purchase another property six months later, the buyer’s firm has the right to represent the buyer in that transaction.

Listing Contracts Exclusive Right to Sell Listing Contract The exclusive right to sell listing contract is the state-approved form that a licensee must use when listing a seller’s property. There are state-approved exclusive right to sell listing contracts for different properties including farm, vacant land, commercial, business, and time-share. This course covers the topics a licensee will most likely encounter when practicing residential real estate and will focus on the WB-1 Residential Listing Contract - Exclusive Right to Sell and the WB-4 Residential Condominium Listing Contract - Exclusive Right to Sell. The state-approved listing contract is an exclusive right to sell. The seller hires one firm to represent the seller in the sale of a property. If anyone finds a buyer for the seller’s property according to the terms of the listing contract, the firm earns a commission. If there is any change in ownership or control of a ­property listed with an exclusive right to sell listing contract, the listing firm earns a commission. This means that if the seller, the firm, or any other party finds a buyer for the seller’s property, the firm earns a commission. Sellers and licensees can modify the stateapproved form to create other types of listing contracts. A seller lists a house with a firm using an exclusive right to sell listing contract. The seller is out doing yard work on a weekend afternoon. A jogger passing by notices the seller’s house is for sale and stops to ask the seller some questions. The friendly seller shows the jogger around, answers questions, and provides the jogger with the listing firm’s information. On Monday, the jogger submits an offer to the listing firm that the seller accepts. The seller found the buyer but the firm still earns a commission.

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Exclusive Agency Listing Contract A seller hires a firm to represent the seller in the sale of a home. A listing firm earns a commission unless the seller finds the buyer. A seller lists a house with a firm and the seller and the firm modify the state-approved exclusive right to sell listing contract by including a provision that says “If the seller finds a buyer, the seller does not owe the firm’s commission.” This changes the contract from an exclusive right to sell to an exclusive agency listing contract. The seller tells a friend about the house and the friend refers a buyer directly to the seller. The buyer submits an offer that the seller accepts. The seller found the buyer and according to the terms of the listing contract, the seller does not owe the firm a commission. Open Listing Contract A seller can list a property with several firms and will only owe a commission to the firm who finds a buyer. If the seller finds a buyer, the seller does not owe a commission to any of the firms. Open listing contracts are not very common. Two different firms approached the owner of a desirable property and offer to list it for the owner. The seller executes listing contracts with each firm. The parties modify the state-approved exclusive right to sell listing contract by including a provision in each contract that says “The seller will pay the listing firm a commission only if the listing firm finds the buyer. If another firm or the seller finds the buyer, the seller does not owe a commission under this listing contract.” One-Party Listing Contract A seller can change the state-approved exclusive right to sell to a one-party listing contract by restricting the firm’s ability to earn a commission only in the case that a specific buyer purchases the property. A firm is working with Betsy Buyer as a customer and Betsy expresses interest in a property that is not currently listed. Betsy’s agent contacts the property owners and asks if they are interested in selling. The property owners indicate that they might be interested. The firm and the owners can modify the state-approved exclusive right to sell and make it a one-party listing by including a provision that says “the firm will earn a commission under this listing contract only of the property sells to Betsy Buyer.” If Betsy writes an offer and the property owners do not accept it, the one-party listing contract will expire and Betsy and the firm can look for other properties. Net Listing Contract A net listing contract sets the firm’s commission at any dollar amount over a minimum sales price. Net listings are illegal in Wisconsin. The seller and listing firm agree that commission will be any dollar amount over $100,000. The property sells for $180,000. The listing firm’s commission is $80,000.

Buyer Agency Agreements

A buyer agency agreement is an agency agreement a buyer uses to hire a firm. The stateapproved buyer agency agreement is the WB-36 Buyer Agency/Tenant Representation Agreement. Both buyers and tenants can use it to hire a firm to look for properties to purchase or lease. A buyer hires a firm to act as the buyer’s agent with regard to properties that the buyer includes in the agreement. It is an exclusive right to locate and negotiate as the buyer’s agent. While uncommon, a buyer can modify a buyer agency agreement to limit or expand a firm’s authority under the agreement. Exclusive Right to Locate If a buyer needs a buyer’s agent to locate a property and the buyer or the buyer’s attorney will negotiate the purchase or lease terms, the parties may create an exclusive right to locate agreement by striking out language giving the firm authority to negotiate.

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Exclusive Right to Negotiate If a buyer needs a buyer’s agent to negotiate for property but the buyer wants to locate the property, the buyer could create an exclusive right to negotiate agency agreement. Licensees can draft state-approved forms but cannot practice law. If negotiating for a buyer will require a licensee to draft other contracts or documents, the licensee cannot do this. A buyer can draft contracts or other documents used in the negotiations or could hire an attorney to draft those documents. Exclusive Right to Locate and Negotiate If the licensee wants to offer an exclusive right to locate and negotiate business model to consumers, this means the buyer’s agent is the only person who can locate or negotiate an interest for the buyer. The buyer has restricted the buyer’s own ability to locate or negotiate for property and vested all authority to do so in the agent. Modification of any of the state-approved listing contracts in no way changes a licensee’s duties to customers and clients.

TERMINATION OF AGENCY Agency may be terminated in the following ways. 1. Death or Incapacity of a Party If a party to an agency agreement dies or becomes incapacitated, the agency relationship terminates. An agency agreement is between a firm and a client, not the firm’s licensees so the death or incapacity of a licensee does not affect the agency relationship. 2. Destruction or Condemnation of the Property by Eminent Domain A government uses eminent domain to take private land for public use. For example, the Department of Transportation can use eminent domain to condemn land to build a highway. If a government condemns a seller’s listed property, the condemnation terminates the contract. 3. Expiration of the Term of the Contract 4. Mutual Agreement Both the principal and the agent can agree to terminate the agency relationship. 5. Breach A party violates a material term of the agency agreement. Whether a party has violated a material term of a contract resulting in a breach that would permit termination of the agency contract is not always clear and parties may need the assistance of a court or other dispute resolution methods to determine whether a breach will terminate a contract. A listing licensee tells a buyer that the seller is eager to sell and will probably accept under list price. The buyer writes an offer for $10,000 below list price. The licensee violated the duty of loyalty, which is a material term of the contract. A seller should not assume that this automatically terminates the contract, however, and should seek legal counsel to determine the seller’s rights. 6. Operation of Law A court order or some other operation of law can terminate an agency agreement. For example, a judicial confirmation of the sale of a seller’s foreclosed property will terminate an agency relationship. 7. Completion The parties complete all of the terms of the agency agreement.

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REMEDIES FOR BREACH OF AN AGENCY AGREEMENT

Real estate agency agreements are personal service contracts where a client hires a firm to provide a service. If a party breaches the terms of an agency agreement, the other party cannot ask a court to award specific performance as a remedy. Specific performance is a remedy a court can grant to a party where the court orders the breaching-party to perform according to the terms of the contract. Parties to an agency contract can cancel the contract at any time but they do not have the legal right to early termination of the contract. This means that either a firm or a client could choose to terminate the agency contract early, but the terminating party could be liable for damages resulting from the early termination. Cancellation of an agency agreement must be in writing and the cancelling party must deliver it according to the terms of the agency agreement. A seller cancels a listing contract before the expiration date. A firm may be able to claim damages for the costs of advertising, reimbursement for expenses for listing and marketing the property, and the value of the firm’s services. To claim damages, a party must be able to prove the amount of damages. If a party breaches an agency agreement, remedies include: 1. R  escission. Rescission is a legal way of undoing a contract. The parties act as if the contract did not exist and go back to their status before they executed the contract. This includes forfeiting a right to sue for any obligations or rights arising from the contract. 2. F  orfeiture of Commission. If a firm breaches an agency agreement, the firm can lose a claim to any compensation due under the agreement. 3. S  ue for Damages. The non-breaching party can sue the breaching party in court and request a judgement for the amount of actual damages resulting from the breach of contract.

COMMISSION

Commission is a seller’s closing cost unless the parties agree otherwise. A seller pays a firm’s commission in addition to other closing costs out of the proceeds from the sale. Parties usually use the purchase price to determine the amount of a firm’s commission. When more than one firm participates in a transaction, the firms will often share the commission. The way firms split commission depends on the commission sharing agreement between the firms. Similarly, the way a firm shares commissions with its licensees depends on the firm’s company policy and varies from firm to firm. Parties can always negotiate commission amounts and structures and there is not a standard commission that firms charge. Leading the public to believe that there is a standardized rate can constitute price fixing, which is a violation of the antitrust laws.

Antitrust Laws The Sherman Antitrust Act of 1890 is a federal statute designed to maintain and preserve business competition. Wisconsin also has state antitrust laws. For an antitrust violation to occur, there must be proof of a conspiracy to restrain trade. A conspiracy exists when two competing companies act according to a joint agreement. A conspiracy does not occur if the action is taken independently by one firm as a result of an internal office decision. A restraint of trade occurs when the agreement between the companies has a limiting effect on competition within the real estate market in which the companies work. The limitation may affect other real estate companies, sellers, sales agents, buyers, newspapers, and title companies.

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Licensees must understand antitrust laws and acts that violate them. Group boycotts exist when a two or more firms agree to refuse cooperation or offer to work with limited guidelines with another specific firm or a type of firm that offers a certain kind of business model. Price fixing is an agreement among competing firms to set a fixed commission or fee to charge or pay. There is no such thing as an innocent agreement among competing companies to fix commissions or fees they charge or pay. These agreements are “per se” violations, which means there is no justification, excuse, or defense for the violation. Examples of Antitrust Violations 1. Firm A and Firm B agree both will charge sellers a 7% or $3,000 minimum commission on all listings taken after the date of the agreement. 2. Firm A and Firm B agree both will pay 2% of the sales price to cooperating firms on all listings published in a multiple listing service after the date of the agreement. 3. Firm A and Firm B agree both will pay listing agents 60% of the listing commission on all listings taken after the date of the agreement. 4. Firm A and Firm B agree both will only pay $50 to 123 Title Company for real estate closings. Tips for Avoiding Antitrust Violations 1. A firm should not discuss with other firms the commission rates or structures the firm uses with clients or the ways in which the firm shares commissions with cooperating firms. 2. To prevent a claim of price fixing, a firm should make all commission and fee decisions as independent business decisions made solely within the firm. Firms may conduct market focus groups or other consumer research when revising commission rates or structures. When a firm changes a commission rate or structure, the firm should document the process used for making the decision. 3. Firms should train licensees and other staff to explain the firm’s fees and commissions as independent decisions driven by competitive market forces to avoid giving the appearance of a conspiracy among competing companies. In addition to commissions, agreements concerning other terms and conditions of listing contracts could serve as the basis for an illegal conspiracy in violation of the antitrust laws. A conspiracy is treated as a price fixing if it has an effect on price, even if it does not directly involve price. A conspiracy among real estate firms to fix the term of a listing contract, the form of compensation, or even the type of listings accepted, may be illegal under antitrust laws as price fixing. 4. Firms and licensees associated with a firm should never discuss their competitive business decisions with other firms and licensees in the same market. These discussions can convert the implementation of lawful business strategies into illegal antitrust conspiracies.

Other Commission Issues

Only a person holding a real estate license can receive commissions. The payment of a real estate commission by a real estate licensee to a non-licensee is fee-splitting, which is illegal under Wisconsin law. Wisconsin law states that no licensee may pay a fee or a commission or any part thereof for performing any brokerage activity or for a referral or as a finder’s fee to any person who is not licensed practice real estate. A firm places an advertisement in a local newspaper promising to pay $200 to anyone who refers a buyer or a seller to the firm. If the firm pays the $200 to a non-licensed individual for a referral, the payment is illegal feesplitting.

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Wisconsin allows licensees to offer incentives to buyers and sellers. The incentives must be documented properly before closing. Parties must have a clear, thorough, and advance understanding of all the terms and conditions of the incentives. A firm can offer incentives in any amount to induce buyers to buy and sellers to sell. Licensees must be aware that after-closing gifts given to a party that the licensee did not document ahead of time could be fee-splitting if the gift is of more than nominal value. After-closing gifts are customary but should be of nominal value. If a licensee is associated with a firm, all fees or commissions for real estate services and all compensation for referrals and finder’s fees shall be paid to the firm. A seller gives a licensee a $100.00 gift certificate. If the licensee keeps it, the licensee will violate license law. The licensee must give it to the licensee’s firm, which will distribute it according to the firm’s company policy.

Multiple Listing Service

Real estate firms have agreements with other real estate firms that state how the firms will cooperate and share compensation if they work together on a transaction. The agreements may be compensation agreements or standing policy letters. Agreements may pertain to just one transaction or they may be standing policies between firms. When two firms who cooperate on a transaction are both members of the same multiple listing service (MLS), the MLS will often have standard compensation sharing polices for all members of that MLS. A multiple listing service is a service among firms that facilitates cooperation and compensation between listing firms, subagents, and buyer’s firms. The members of the MLS agree to share listings with other members. If a member of the MLS shows a listing with the MLS, the member knows the share of the commission the member’s firm will receive for a successful transaction. MLS membership is voluntary and licensees do not have to join. Once a licensee joins the MLS, the licensee agrees to the terms and conditions of the MLS, including placing all the licensee’s listings in the MLS, unless that would be contrary to the seller’s instructions. There is not one single MLS in Wisconsin. There are a variety throughout the state and nation, each with its own membership guidelines. MLS membership is voluntary and information about MLS membership and guidelines does not appear on the state licensing exam. For more information about MLS membership, a licensee can contact the licensee’s local MLS.

Dividing Commissions

A listing contract entitles a listing firm to a commission in a successful real estate transaction. Because other participants may be necessary for the transaction to be successful, the listing firm may end up sharing the commission with other firms. A listing firm will divide a commission according to which firm played what role in a transaction. Usually, a seller pays the listing firm the commission at closing and commission is a seller’s closing cost. The listing firm then divides the commission with other parties that participated in the transaction. There is not a standard formula used for sharing commission with other firms. The division will depend on agreements between firms and the individual details of a transaction.

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Commission in a Sale with Cooperating Firms

When a transaction involves a cooperating firm, the transaction has a listing side and a selling side. The listing firm will share a portion of the commission with the selling firm. A seller pays the whole commission amount to the listing firm, which then pays a share to the selling firm, which is subagent of the listing firm. Firms then pay the licensees according to company policy. When a cooperating firm is part of the transaction, there may be four different parties who take a part of the total commission.

In this diagram, the listing firm agrees to share 50% of the total commission with any cooperating firm. Both the listing firm and the cooperating firm have office policies to share 50% of their commissions with their salespeople.

Commission in an In-House Sale

An in-house sale is when a firm has the property listed and also finds the buyer. There is no outside firm in the transaction. A firm may have different ways for dividing commissions on in-house sales. In this example, the same licensee who took the listing on behalf of the firm also found the buyer.

An in-house sale might include the firm and two of the firm’s agents. There may be the listing licensee and the selling licensee who writes the offer for the buyer. The parties may divide the commission three ways.

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A seller lists a property with the listing firm. Jane is the licensee who executes the listing. Jane is the listing licensee. A buyer contacts Alan, a licensee with the listing firm, to draft the offer. Alan is the selling licensee. When the property closes, the seller pays the commission, which is $12,000, to the listing firm. The listing firm allocates one-half of the $12,000 commission to the listing side of the transaction ($6,000) and one-half to the selling side of the transaction ($6,000). From the listing portion of the commission ($6,000), the firm keeps 30% ($1,800) and gives 70% ($4,200) to the listing licensee. From the selling portion of the commission ($6,000), the firm keeps 40% ($2,400) and gives 60% ($3,600) to the selling licensee.

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CALCULATING COMMISSIONS

1. To calculate a firm’s commission, look at the terms of the listing contract. 2. The commission is often a percentage of the purchase price. To find the percentage, look to the listing contract. To find the purchase price, look to the offer to purchase. 3. A seller pays a firm’s commission at closing because it is a closing cost. A seller usually pays other closing costs in addition to the firm’s commission. 4. The seller pays the entire commission amount to the listing firm. The listing firm then pays a cooperating firm according to the terms of any agreement between the firms. The firms then pay their licensees according to company policy. When calculating commissions, first read the problem. What is the known information? Does the problem include the list price or the purchase price? Does it provide the firm’s total commission amount or the rate of the firm’s commission? Does it specify how much a cooperating firm receives or does it say the rate at which the listing firm shares commissions with cooperating firms? When you are solving the commission problems on the following pages, use the information provided to solve for the information that is missing.

Method 1: The algebraic formula: partial number = whole number x rate commission = sales price x %

OR Method 2: The “cover-up” formula: partial number whole number x rate commission sales price x %

=

P Wx%

=

C Sx%

Note to student: Both methods do the same thing. They allow you to plug in the information that you know to solve for the missing information. To use Method 1, plug in the numbers that you know, use a variable to represent the unknown, and then perform the necessary operations to isolate the variable and solve the equation. To use Method 2, plug in the numbers that you know and then cover up the element that is missing. If you have a number above the line and a number below the line, divide the number above the line by the number below the line to find the missing number. If you have both numbers below the line, multiply the numbers to find the number that is missing. A seller pays a firm $12,000 at closing. The commission was 6% of the purchase price. What was the purchase price of the property? Method 1 Method 2 commission = sales price x percent Commission $12,000 = sales price x 6% sales price x % $12,000/6% = (sales price x 6%)/6% $12,000 $200,000 = sales price sales price x 6% Cover up the unknown, you have one number above the line and one below, so you divide the number above, $12,000, by the one below, 6%, to arrive at the sale price of $200,000.

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The first step to solve any math problem is to read the problem. What information is the problem asking you to find? What information is given to you? Use the information given to you, substitute it in the formula, and solve for the missing information. 1. T  oni Yang sold her property for $175,000. She paid the listing firm 7% commission. The listing firm paid 40% of the total commission to the selling firm. How much ­commission did Toni Yang pay to the listing f­irm? What did the listing firm pay to the selling firm?

2. If Toni Yang’s listing firm and the selling firm each pay 50% of their commission share to their licensees, how much did the listing licensee and the selling licensee earn?

3. T  he seller of a property nets $85,500 from the sale after paying the listing firm’s 5% commission. What was the selling price of the home? How much commission did the listing firm earn?

4. A  listing firm earns $14,000 in commission. The seller agreed in the listing contract to pay the listing firm 8% commission. What was the selling price of the home?

5. T  he Millers received $130,000 from the sale of their house after paying their listing firm 7% commission and an additional $4,850 in closing costs. What was the selling price of the home and the commission paid to the firm?

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Commissions Answer Key 1. Known information: Sale price = $175,000 Commission = 7% of the sale price Selling firm commission = 40% of the total commission $175,000 x .07 = $12,250 commission paid to the listing firm The listing firm pays the selling firm 40% of the total commission. $12,250 x .40 = $4,900 commission paid to the selling firm 2. Known information: Listing firm & agent = 50% each of the listing firm’s portion of the total commission Selling firm & agent = 50% each of the selling firm’s portion of the total commission Listing firm commission = 60% of the total commission In problem #1, the listing firm paid the selling firm 40% of the total commission. The listing firm is left with 60% of the total commission to share with the listing agent. 100% - 40% = 60% $12,250 x .60 = $7,350 listing firm’s commission $7,350 x .50 = $3,675 listing firm’s commission, or divide the listing firm’s share by 2 $4,900 x .50 = $2,450 selling firm’s commission, or divide the selling firm’s share by 2 3. Known information: Seller nets = $85,500 Note to Student Commission = 5% $85,500 is not the sale price but is what When solving for the selling price on question three, remember that the seller was left with $85,500 after paying the seller keeps after paying the firm’s the listing firm a 5% commission. The sales price is 100% 5% commission, which means $85,500 of value and the seller paid 5%, which means that $85,500 is equal to 95% of the sale price. is 95% of the selling price. 100% of sale price - 5% commission = 95%, or the seller’s net of $85,500 $85,500 / .95 = $90,000 sales price $90,000 - 85,500 = $4,500 commission paid OR $90,000 x .05 = $4,500 4. Known information: Listing firm’s commission = $14,000 Commission = 8% $14,000 / .08 = $175,000 sale price 5. Known information: Seller nets = $130,000 Commission = 7% Additional closing costs = $4,850 First, add the additional closing costs back to the seller’s net. $130,000 + $4,850 = $134,850 $134,850 is the sale price minus the firm’s 7% commission, or 93% of the sales price. $134,850 / .93 = $145,000 sale price $145,000 x .07 = $10,150 commission paid

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PAYMENT OF A LISTING FIRM The listing firm earns commission when one of five events happens: the seller sells or accepts an enforceable contract for sale; seller grants an option that is later exercised; exchanges the property; a transaction occurs that causes an effective change in ownership or control; a ready, willing, and able buyer submits a “mirror image offer.” A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer’s obligations under the written offer. In other words, a listing firm earns commission when a buyer’s offer has no more contingencies to be met or a buyer writes a mirror image offer. A mirror image offer is a full price or above offer on substantially the same terms as the seller’s listing contract. Even if the seller rejects a mirror image offer, the listing firm may be able to successfully make a claim for compensation. A seller may also owe a commission to the listing firm even if the transaction does not close. This may occur if the buyer backs out of the transaction because of the actions of a seller. In the listing contract, the firm does not promise that the transaction will close, just as the seller does not promise to accept an offer. Rather, the firm promises to find a buyer and the seller promises to pay a commission. If the transaction does not close and the firm obtains a binding contract that the seller can enforce against the buyer in court, the firm earned a commission. The seller pays the firm’s commission at closing or the date set for closing in the offer to purchase. Each listing contract has preprinted terms specifically stating the various ways a listing firm earns a commission. The parties may agree to strike certain preprinted terms or modify the terms to limit the ways a listing firm can earn a commission. Chapter 3 covers the WB-1 Residential and WB-4 Condominium listing contracts.

PAYMENT OF A BUYER’S FIRM A buyer pays a buyer’s firm according to the terms of the WB-36 Buyer Agency/Tenant Representation Agreement. The WB-36 states that a buyer’s firm earns a success fee “if, during the term of the Agreement (or any extension of it), Buyer or any person acting on behalf of Buyer acquires an interest in property or enters into an enforceable written contract between owner and Buyer to acquire an interest in property, at any terms and price acceptable to owner and Buyer.” The WB-36 identifies a buyer’s firm’s compensation as a “success fee” rather than a commission but licensees commonly use “commission” to describe the compensation a buyer pays to a buyer’s firm. Depending on the terms of the WB-36, a buyer’s firm may earn a commission if a selling firm, buyer’s firm, or the seller introduces the buyer to the property. If the buyer procures an interest in a property described in the buyer agency agreement, the buyer’s firm earns a success fee. The buyer’s firm does not need to locate or negotiate for the property on behalf of the buyer. Parties can modify the buyer agency agreement to limit the way a buyer’s firm earns a commission. For example, a buyer could include a provision that limits the buyer’s obligation to pay the firm’s success fee only if the firm finds or negotiates for the property and that the buyer does not owe the firm’s success fee if the buyer or someone other than the firm locates or negotiates for the property. Chapter 3 covers the WB-36 Buyer Agency/ Tenant Representation Agreement.

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A buyer’s firm’s commission can be: 1. Percent of sale price; 2. Flat fee; 3. Retainer fee; or 4. Hourly rate. The most common method for paying a buyer’s firm is to use a percent of the sale price but when a buyer is seeking several properties, the buyer may hire the buyer’s firm using a retainer fee, hourly rate, or a flat fee for every property the firm finds that fits the buyer’s need. No matter what structure the parties use to determine compensation, the buyer might not be the party that actually pays it. In residential practice, it is common for the listing firm to pay the buyer’s firm as a cooperating firm in the transaction. A buyer can also include a provision in an offer to purchase requiring a seller to pay the buyer’s firm’s success fee. A licensee cannot receive compensation from someone other than the licensee’s client, the principal firm, or the licensee’s firm without the client’s consent. The buyer must provide consent for the listing firm or the seller to pay the buyer’s firm’s success fee. A buyer can give consent in a buyer agency agreement.

PROCURING CAUSE ISSUES A buyer sees a property with Sasha. Sometime later, he sees the property with Becky. Becky writes the offer and the transaction closes. The seller pays the listing firm a commission. Should the listing firm share the commission with Sasha or Becky? There is not one correct answer. The firms may be able to negotiate a solution but if they cannot, a firm can use available dispute resolution methods to resolve the dispute about who should receive the commission. If the firms are REALTOR® members, they must submit their dispute to the arbitration board of their local REALTOR® association. If they are not REALTOR® members and are unable to reach an agreement, they will need to seek out mediation, arbitration, or file a suit for the compensation. Whenever multiple firms are involved in a real estate transaction, there is the p ­ ossibility of a commission dispute. A listing firm will share a commission with another firm that procures cause in the transaction. Procurement is the uninterrupted chain of events that led to a sale. The firm that starts this chain of events is the firm who procured cause. There is typically not a single act that determines procuring cause. Procuring cause is an MLS performance standard and can only be answered by the full and knowledgeable con­sideration of all the facts of a situation. The discussion of determining procuring cause is outside the scope of this course and is often dictated by rules of the REALTOR® organization. It is, however, an important concept that real estate licensees will explore further in their real estate practices.

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3

Agency Agreements REEB 16

Chapter Overview Licensees use state-approved forms to create agency relationships

with clients. The agency agreement will depend on the transaction. This chapter will cover three state-approved agency agreements: the WB-1 Residential Listing Contract; the WB-4 Condominium Listing Contract; and the WB-36 Buyer Agency/Tenant Representation Agreement. Licensees must be able to competently use closing approved forms and understand the contractual excluded properties obligations and relationships parties create when protected buyer entering into agency agreements.

Important Terminology

THE REAL ESTATE TRANSACTION

R

eal estate transactions are not always a smooth, uninterrupted series of events leading to the eventual transfer of a property from a seller to a buyer. There can be both expected and unexpected complications that disrupt the transaction. Good real estate licensees can maneuver through the complications or avoid them all together with a little planning, reliance on resources, and good communication. Licensees must practice competently, which includes drafting approved forms to accomplish the intent of the parties and having a clear understanding of the laws affecting real estate practice. A real estate transaction has a beginning and an end. The transaction may begin when a seller lists a house, when a buyer writes an offer, or when a buyer begins looking for a property. If all goes well, the transaction ends at closing and the licensee receives a well-earned commission. The Buyer A buyer may make initial contact with a real estate licensee with a phone call, meeting at an open house, or through a referral. At some point in the relationship, the licensee must discuss an agency relationship with the buyer and a buyer must decide whether to be a client or a customer. Before a buyer makes a decision to be a customer or a client, the buyer and the licensee are in the pre-agency stage. During pre-agency, a licensee provides general real estate information to a buyer, such as property characteristics, and may discuss the lending and pre-approval process but does not negotiate or provide opinions and advice. Once a buyer starts asking for opinions or advice or asks the licensee to write an offer, the buyer must choose whether to be a client or a customer and the licensee must provide agency disclosure. If the buyer wants to be a client, the parties execute a buyer agency agreement and provide necessary agency disclosure. If the buyer wants to be a customer, the licensee must give written agency disclosure to the customer. When buyers start looking for property, they should consult with a lender to determine a price range for the search. Buyers also need to consult with a property insurance provider to determine whether challenges, such as a flood plain, will make it difficult to insure the property.

39

REAL ESTATE SALES

Buyers then start looking at properties that fit their specifications and eventually make an offer on a property. The process of drafting depends on the complexity of the transaction. Often in a residential transaction, the buyers include a pre-qualification letter from a lender with the offer to give the seller some assurance that the buyer will have the funds to complete the transaction. A lender provides a pre-qualification letter to a buyer after a review of the buyer’s finances. It may include an amount for which the buyer is pre-qualified or it may be property specific and include a property’s address. Sellers like pre-qualification letters because they indicate that the buyer consulted a lender and has a general idea of how much the buyer will be able to borrow to finance the transaction. A pre-qualification letter is never a guarantee from a lender that the lender will approve the loan. A buyer submits an offer to a seller and a seller accepts, rejects, or counters the offer. If a seller accepts the offer, the seller signs it and delivers it back to the buyer by the date specified in the offer. When a seller rejects an offer, the seller notes that on the offer and delivers it back to the buyer. There is not a deadline for rejecting an offer but if a seller does not act on an offer before the buyer’s deadline, the seller cannot later accept the offer and try to enforce it against the buyer. If a seller counters an offer, the seller initials the offer on the last page, completes a WB-44 Counter-Offer, and delivers both the offer and the counter-offer to the buyer. The use of counter-offers between buyers and sellers may involve several back and forth negotiations until the parties arrive at an accepted offer or a rejected offer. This process is covered in Chapter 10 with the Offer to Purchase and Chapter 12 with the Counter-Offer. The Seller A licensee’s first step in working with a seller is educating the seller about the real estate market. A licensee will usually perform a market analysis on a seller’s property and discuss listing price and marketing strategies. The seller and the licensee sign a listing contract and the firm begins to market the property. Marketing may include advertising in a multiple listing service, social networking sites, yard signs, and newspaper advertisements. The goal is to attract qualified buyers at or near a seller’s listing price. After a seller accepts an offer, the buyer and seller begin working through the contingencies in the offer and a buyer may deliver earnest money if it is part of the offer. Licensees are responsible for managing contingencies and compliance with contingencies. If a buyer or a seller is not able to satisfy a contingency, but wants to continue with the transaction, the licensee is responsible for drafting appropriate amendments to address the new circumstances of the offer. Licensees need to be able to read, understand, and help parties draft enforceable contingencies. Contingency language can seem simple but it creates legal duties, obligations, and standards that parties can ask a court to enforce against another party. The Closing Once parties remove contingencies, the parties are ready for closing. Closing is the end of the real estate transaction. The buyer exchanges the payment of the purchase price in exchange for legal title to the property. The parties execute necessary additional documents such as deeds, mortgage contracts, and insurance provisions and the parties record the deed evidencing the transfer in the public records. Licensees do not have to attend closing but many do. A licensee’s role at closing depends on the customs of the local real estate market. In Wisconsin, parties generally have a closing meeting, which is also called a face-to-face closing. The parties meet at one location and pass all the closing documents around for the necessary signatures. Attendees may include the real estate licensees, parties’ attorneys, the buyer’s lender, and a representative of the title company.

40

Agency Agreements - 3

Regardless of the closing process, buyers and sellers need to resolve certain closing issues either at closing or prior to the closing. Sellers need to receive payment for the property at closing and buyers have other concerns including: 1. Receiving clear, unencumbered title; 2. Receiving the seller’s deed; 3. Inspecting the property to make sure the seller repaired any conditions agreed to in the offer; and 4. Receiving leases and agreed upon rent proration, if any, for the property. If there are no unsolvable issues at closing, the buyers and sellers sign the closing statement, buyers sign the mortgage documents, and sellers sign the deed. The buyers give the sellers a check for the property and the sellers give the buyers the keys.

AGENCY AGREEMENTS

When buyers or sellers have valid agency agreements with licensees, property negotiations should usually be conducted with the licensee, not the buyer or seller directly. Sellers If a seller has a valid listing contract, other licensees should address all property negotiations to the listing firm unless the listing firm consents to direct contact with the seller, the listing firm and its licensees are unavailable, or other similar circumstances compel direct negotiation with the seller. For example, if a seller lists a property with a limited service firm, the limited services might not include negotiations and the listing firm may consent to direct negotiation with the seller. Buyers When buyers have a buyer agency agreement, negotiations can go through the buyer’s agent but buyers can also negotiate without the agent’s assistance. The WB-36 Buyer Agency/Tenant Representation Agreement is exclusive because it prohibits a buyer from entering into another buyer agency agreement with another firm for the same properties but it does not prohibit a buyer from seeking out and negotiating independently for properties. When a buyer has an unmodified WB-36 with a firm, the buyer can directly negotiate with property owners or other firms. Licensees should not negotiate directly with buyers who have modified buyer agency agreements to give the firm the exclusive right to negotiate on behalf of the buyer. If a buyer modifies a buyer agency agreement to give a firm an exclusive right to negotiate on behalf of the buyer, the buyer has agreed to not independently negotiate for properties without the assistance of the firm. If a buyer with a WB-36 agreement tries to negotiate directly with a listing or selling agent, the licensee should caution the buyer to check the agreement provisions to determine any restrictions on direct negotiation with other firms. If the buyer has not modified the WB-36, the buyer will owe the buyer’s firm’s success fee if the buyer purchases or acquires a property covered by the agreement, even if the buyer purchased or acquired property without the assistance of the firm. Licensees do not have to ask a buyer if the buyer has an agency agreement or whether the buyer modified the agreement to give a firm an exclusive right to negotiate but common practice and professional courtesy usually guide licensees to decline to work with a buyer with an agency agreement and refer the buyer back to the buyer’s firm for assistance.

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REAL ESTATE SALES

WB-1 RESIDENTIAL LISTING CONTRACT-EXCLUSIVE RIGHT TO SELL

A listing contract is the contract that a seller, as a principal, uses to employ a firm, as an agent, to market the seller’s property. It is a personal service contract based upon a fiduciary relationship of trust and confidence. With an exclusive right to sell listing contract, the listing firm earns a commission regardless of who finds the buyer for the listed property. A seller can modify an exclusive right to sell to create other kinds of listing contracts such as exclusive agency, open listing, and one-party listings. A licensee must know which form to use for a transaction and there may not be a form that fits the specifics of a particular transaction. For example, if a licensee is listing a mixed-use property, the licensee will have to decide whether the residential listing contract or a business listing contract best fits the transaction and use the form that requires the least amount of modification. Licensees use the WB-1 Residential Listing Contract when listing a residential property. Line 1 Introduction Approved by the Wisconsin Real Estate Examining Board 7-1-16 (Mandatory Use Date)

Page 1 of 6, WB-1

WB-1 RESIDENTIAL LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 1 SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 2 ■ PROPERTY DESCRIPTION: Street address is: ______________________________________________________ This line identifies the form as an exclusive right to sell listing contract. The top of the form states that 3 Approved _______________________________________________________________________________________________ by the Wisconsin Real Estate Examining Board WB-1 the4 form is a state-approved form. All of the state-approved forms have a prefix of WB Page and1 ofa6, number 7-1-16 Use Date) in the(Mandatory _________________ of ________________________________, County of _____________________________, identifying theInsert form. All forms haveif aany, mandatory useordate. must use309-310. the form as of the 5 Wisconsin. additional description, at lines 303-308 attach A as licensee an addendum per lines WB-1 RESIDENTIAL LISTING CONTRACT EXCLUSIVE RIGHT TO SELL mandatory use date. 6 ■ INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, 7 and the following items: ___________________________________________________________________________ Lines 2-5 Property 18 SELLER GIVES THEDescription FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: _______________________________________________________________________________________________ 29 ■ PROPERTY DESCRIPTION: Street address is: ______________________________________________________ _______________________________________________________________________________________________ 3 _______________________________________________________________________________________________ 10 _______________________________________________________________________________________________ the _________________ of ________________________________, County of _____________________________, 114 in ______________________________________________________________________________________________. Insert additional if any, at lines 303-308 or attach as an addendum per lines 309-310. 125 Wisconsin. ■ NOT INCLUDED IN LIST description, PRICE: __________________________________________________________________ 6 ■ INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, 13 _______________________________________________________________________________________________ A licensee fills in the blanks with the street address for the property. A street address is usually a the following items: ___________________________________________________________________________ 147 and ______________________________________________________________________________________________. sufficient description and a legal description is not necessary unless the street address does not 158 _______________________________________________________________________________________________ CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the adequately describe the property. _______________________________________________________________________________________________ the Wisconsin Real Estate Examining Board Page 1 of 6, WB-1 169 Approved lessor.by(See lines 181-194). 7-1-16 (Mandatory Use Date) 10 _______________________________________________________________________________________________ 17 ■ LIST PRICE:“123 _____________________________________________________ For example, Any Street in the City of Here, County of Now, Wisconsin.” Dollars ($____________________). 11 ______________________________________________________________________________________________. WB-1 RESIDENTIAL EXCLUSIVE RIGHT TO SELL 18 MARKETING Seller authorizes and the FirmLISTING and its CONTRACT agents agree- to use reasonable efforts to market the Property. ■ NOT INCLUDED IN LIST PRICE: __________________________________________________________________ A 12 licensee should not fill out this section with “legal description to follow” because thatthedoes 19 agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during term not 13 Seller _______________________________________________________________________________________________ sufficiently describe the real estate, which means the contract is not valid according to Wis. Stat. § 1 SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 20 this Listing. The marketing may include: _____________________________________________________________ 14 of ______________________________________________________________________________________________. 2 ■ PROPERTY DESCRIPTION: Street address is: ______________________________________________________ 240.10(1) and if the contract is not valid, the seller might not have to pay a commission, even 21 CAUTION: ______________________________________________________________________________________________. 15 Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by theif the 3 _______________________________________________________________________________________________ 22 lessor. The Firm(See andlines itsaagents may the following special financing and incentives offered by Seller: _____________ listing firm found buyer foradvertise the property. 16 181-194). the _________________ of ________________________________, County of _____________________________, 234 in ______________________________________________________________________________________________. 17 ■ LIST PRICE: _____________________________________________________ Dollars ($____________________). Lines 6-11 Included Items description, any, at lines 303-308 attach asits anagents. addendum lines 309-310. 245 Wisconsin. Seller has aInsert duty additional to cooperate with the ifmarketing efforts of theorFirm and Seeper lines 246-252 regarding the 186 ■MARKETING and istheincluding Firm and its agree Property, to use reasonable efforts to market the Property. INCLUDED INSeller LISTauthorizes PRICE: Seller theagents list all Fixtures not excluded lines 12-14, 25 Firm’s role as marketing agent and Seller’s duty toinnotify theprice Firmthe of any potential buyer known to Seller.onSeller agrees 7 and the following items: ___________________________________________________________________________ 19 Seller agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term 26 that the Firm and its agents may market other properties during the term of this Listing. 208 _______________________________________________________________________________________________ of this Listing. The marketing may include: _____________________________________________________________ 27 COMMISSION The Firm's commission shall be _________________________________________________________ 219 _______________________________________________________________________________________________ ______________________________________________________________________________________________. 28 10 _______________________________________________________________________________________________ 22 _________________________________________________________________________________________________. The Firm and its agents may advertise the following special financing and incentives offered by Seller: _____________ 29 EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: 11 ______________________________________________________________________________________________. 23 ■ 30 1) Seller accepts offer creates an efforts enforceable for its theagents. sale of all or any of the Property; 12 NOT INCLUDED INcooperate LISTanPRICE: __________________________________________________________________ 24 ■ Seller has asells dutyor to withwhich the marketing of thecontract Firm and See linespart 246-252 regarding the In 31 this section, the licensee lists what a seller wants to include in the purchase price theagrees property. 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 13 25 _______________________________________________________________________________________________ Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. of Seller The Definitions section on page 4 defines “Property” as the real estate described in the Property 32 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 14 26 ______________________________________________________________________________________________. that the Firm and its agents may market other properties during the term of this Listing. 33 CAUTION: 4) A transaction occurs which causes an effective change inproperty. ownership orThe control of allcontinue or any part ofbethe Property; or and Description section, which does not include personal list price includes the Property 15 Identify Fixtures to be excluded by Seller or which are rented and will to owned by the 27 COMMISSION The Firm's commission shall be _________________________________________________________ 34 personal 5) A ready, willing181-194). and able buyer submits fide written offer to7-11. Seller A or seller Firm formight the Property at, oritems above,such the listas a 16 lessor. (See lines the property items that a sellera bona includes on lines include 28 35 _________________________________________________________________________________________________. price and on_____________________________________________________ substantially the same terms forth in this Listing and the current WB-11 Offer to Purchase, 17 ■ blower, LIST PRICE: Dollars Residential ($____________________). snow lawn mower, furniture, or asettelevision. 29 Firm'sthe commission, which shall be if, during termwhen of thisthe Listing: 36 ■ EARNED: even if Seller Sellershall doespay notthe accept buyer's offer. A buyer is earned, ready, willing andtheable buyer submitting the 18 MARKETING Seller authorizes and thecreates Firm and its agents agree to for usethe reasonable efforts to market the Property. 30 accepts an offer which an enforceable saleoffer. of all or any part of the Property; 37 1) Seller writtensells offerorhas the ability to complete the buyer’s obligationscontract under the written 19 Seller agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term 31 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 38 The Firm’s commission shall be earned if, during the term of the Listing, one seller of the Property sells, conveys, 32 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 20 of this Listing. The marketing may include: _____________________________________________________________ 39 exchanges or options, as described above, an interest in all or any part of the Property to another owner, except by divorce 42 21 33 4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or 40 ______________________________________________________________________________________________. judgment. 22 The andPAYABLE: its agents may theFirm’s following special financing incentives offered by Seller: _____________ 34 5) Firm A ready, willing andOnce able advertise buyer submits a bona fide written to and Seller or Firm or above, thedate list 41 ■ DUE AND earned, the commission is offer due and payable in fullfor atthe theProperty earlier ofat,closing or the 35 price and on substantially the same terms set forth in this Listing and the current WB-11 Residential Offer to Purchase, 23 ______________________________________________________________________________________________. 42 set for closing, even if the transaction does not close, unless otherwise agreed in writing.

4 in the _________________ of ________________________________, County of _____________________________, 5 Wisconsin. Insert additional description, if any, at lines 303-308 or attach as an addendum per lines 309-310. 6 ■ INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, Agency Agreements - 3 7 and the following items: ___________________________________________________________________________ 8 _______________________________________________________________________________________________ 9 _______________________________________________________________________________________________ 10 _______________________________________________________________________________________________ Lines 12-16 Not Included in List Price 11 ______________________________________________________________________________________________. 12 ■ NOT INCLUDED IN LIST PRICE: __________________________________________________________________ 13 _______________________________________________________________________________________________ 14 ______________________________________________________________________________________________. 15 CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the 16 lessor. (See lines 181-194). 17 ■ LIST PRICE: _____________________________________________________ Dollars ($____________________).

On lines 12-14, a licensee lists all the property that a seller does not want to include in the list price. This 18 MARKETING Seller authorizes and the Firm and its agents agree to use reasonable efforts to market Page the 4Property. of 6, WB-1 is where a seller lists fixtures the seller wants to remove from the property. 19 agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term 167 Seller DEFINITIONS The that aThe buyer includes in the_____________________________________________________________ offer to purchase dictate the final details of the property that is 20 terms of this Listing. marketing may include: 168 ■ ADVERSE FACT: An "Adverse Fact" means anyproperty of the following: included or excluded. A fixture is an item of that, under certain circumstances may be treated 21 ______________________________________________________________________________________________. 169 (a) Firm A condition or occurrence that isbecome generally recognized by atocompetent licensee as doingbyany of the following: as22 personal property butmay thatadvertise has so attached the or buildings, or is used in such close The and its agents the following special financing andland incentives offered Seller: _____________ 170 1) Significantly and adversely affecting the value of the Property; 23 ______________________________________________________________________________________________. association with the land or buildings, that it is treated as a part of the land. A licensee must make sure 171 Seller 2) reducing the structural integrity of improvements to real or hasSignificantly a duty to cooperate theterms marketing efforts of the Firmofand its estate; agents. lines 246-252 theitems a 24 seller understands that the with offer dictate the items property a See seller can leaveregarding and the 172 3) Presenting a significant health risk to occupants of the Property. 25 Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. Seller agrees that seller can remove. Listing and in the help a 173the (b) the Information indicates that aproperty party properties to ainclusions transaction is term notexclusions able to Listing. or does notlisting intend contract to meet hiscan or her 26 that Firm and itsthat agents may market other during the of this seller determine what property is available to include in the list price. 174 obligations under a contract or agreement made concerning the transaction. 27 COMMISSION The Firm's commission shall be _________________________________________________________ “Fixtures” are defined onDeadlines page 4expressed of the WB-1 on lines 181-194. Following the general description 175 ■ DEADLINES – DAYS: as a number of "days" from an event are calculated by excluding the day theof a 28 _________________________________________________________________________________________________. 176 event occurred and byinclude counting subsequent calendar days. fixture, lines 184-191 a non-exhaustive list of items that are fixtures. The definition of fixtures 29 ■ EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: may be readily buyers and sellers a licensee the parties understand 177 not ■1)DEFECT: “Defect” means atocondition that would have and a significant adverse effect value theProperty; Property; that the 30 Seller sells or apparent accepts an offer which creates an enforceable contract for the must sale of help allonorthe any part ofofthe 178 would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or definition of fixture. 31 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 179 replaced would significantly shorten or adversely affect the expected normal life of the premises.

32 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; Lines 181-194 Fixtures

180 ■4)FIRM: “Firm” means a licensed sole proprietor broker or ainlicensed broker business entity. 33 A transaction occurs which causes an effective change ownership or control of all or any part of the Property; or 34 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for Property at, or above, 181 ■ FIXTURES: A "Fixture" is an item of property which is physically attached to or sothe closely associated with the landlistor 35 price and on substantially the same terms set forth in this Listing and the current WB-11 Residential Offer to Purchase, 182 buildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily 36 even if without Seller does not accept the buyer'sitems offer.specifically A buyer isadapted ready, willing able when buyer submitting the 183 removable damage to the premises, to theand premises, and the items customarily treated 37 written offer has the ability to complete the buyer’s obligations under the written offer. 184 as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and 38 Firm’s electric commission shall be earned if, shades; during the term and of the Listing, oneblinds sellerand of the Property sells,heating conveys, 185 The windows; lighting fixtures; window curtain traverse rods; shutters; central and 39 or options, as described above, an interest all or any part ofand the treatment Property tosystems; another owner, except attached by divorceor 186 exchanges cooling units and attached equipment; water heaters,inwater softeners sump pumps; 40 187 judgment. fitted floor coverings; awnings; attached antennas and satellite dishes, audio/visual wall mounting brackets (but not the 41 DUE AND PAYABLE: Once earned, Firm’s and commission is due and payablesecurity in full atsystems; the earlier of closing or the date 188 ■audio/visual equipment), garage doorthe openers remote controls; installed central vacuum systems 42 foraccessories; closing, evenin-ground if the transaction does not close, otherwise in appliances; writing. 189 set and sprinkler systems and unless component parts;agreed built-in ceiling fans; fences; in-ground 43 CALCULATION: percentage shall be storage calculatedbuildings based onon thepermanent following, if foundations earned above:and docks/piers on 190 ■pet containment Asystems (butcommission not the collars); 44  Under 1) or 2) the total consideration between the parties in the transaction. 191 permanent foundations. 45  UnderExclude 3) or 4) any the list price if the entire Property involved. 192 CAUTION: Fixtures to be retained by isSeller or which are rented (e.g., water softener or other water 46  Under 3) if the home exchange involves lessand thansatellite the entiredish Property or under 4) if the effective in ownership 193 treatment systems, entertainment components, L.P. tanks, etc.)change on lines 12-14 andorin 47 control involves less than the entire Property, the fair market value of the portion of the Property exchanged or for 194 the offer to purchase. 48 which there was an FACT: effectiveAchange in ownership or control. 195 ■ MATERIAL ADVERSE "Material Adverse Fact" means an Adverse Fact that a party indicates is of such The CAUTION on lines 192-194 warns a seller to consider rented fixtures such as a water 49  Under 5) the total offered purchase price. 196 significance, or that is generally recognized by a competent licensee as being of such significance to a softener. reasonable The seller does not own these fixtures and does not have the authority to include them in the purchase price 50 NOTE: If a commission is earned for a portion of the Property it does not terminate the Listing as to any remaining 197 party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or Property. so51 the seller should list them as excluded from the purchase price. Rented fixtures might also include 198 affects or would affect the party's decision about the terms of such a contract or agreement.

theater systems, satellite dish components, or for A seller should property 52 TOON OTHERS The offers thetanks following commission cooperating firms:any _____________________ 199 COMPENSATION ■ PERSON ACTING BEHALF OF Firm BUYER: "Person Acting onliquid Behalfpropane. oftoBuyer" shall mean personconsider joined in interest that several components pieces might seem like fixtures others more like 200 has with buyer, or otherwise acting onwhere behalf ofsome buyer, including but not limited to buyer's immediateand family, agents,are employees, 53 ____________________________________. (Exceptions if any):_______________________________________________. 201 BUYER directors, managers, officers, owners, partners, incorporators and organizers, as welllike asstatutes any andorallregulations corporations, personal property. Formembers, example, aThe theater system may installed a projector and screen 54 FINANCIAL CAPABILITY Firm and its agents areinclude not responsible underitems Wisconsin to 202moveable partnerships,items limitedlike liability companies,Atrusts or other entities createdwhether or controlled by, affiliated with or owned by buyer, in and speakers. seller should specify the seller will include all components 55 qualify a buyer’s financial capability. If Seller wishes to confirm a buyer’s financial capability, Seller may negotiate inclusion of 203 whole or part whether created before or after expiration of this Listing. as56 fixtures orinremove them as personal property. a contingency for financing, proof of funds, qualification from a lender, sale of buyer’s property, or other confirmation in any 204 ■ PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines price, 2-5 57 offer to purchase or contract. After the seller lists the property that a seller wants to include and exclude from the listing the 205 ■ PROTECTED BUYER: Means a buyeroffers who personally, through any Person Acting on Behalf Buyer, the term seller’s listing agent should check againstorthe seller’s listing contract toofsee if during the documents 206 of this Listing: agree. The listing contract lists the property that a seller is willing to have included or excluded from an 207 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; offer that is acceptable to the seller. MLS or office data sheets will list what property is available but the 208 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential offer the the parties’ finalacquire agreement about items 209 to purchase terms uponiswhich buyer might an interest in thewhat Property; or are included in the purchase price and what are not parts ofshowing the purchase price. 210 items 3) Attends an individual of the Property or communicates with agents of the Firm or cooperating firms regarding 211 212 213 214 215 216

any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the individuals in the Listing; or, b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm

43

REAL ESTATE SALES

When a licensee is helping a seller to decide what items the seller wants to include or exclude from the listing, the licensee should use these practice tips: 1) Ask the seller to make an itemized list; 2) Walk through property with the seller and ask about detachable or questionable items; 3) Mark the excluded items with tags and check offers and counter-offers with the seller’s list of Approved the Wisconsinand Real included Estate Examining Board Page 1 of 6, WB-1 byexcluded items; 7-1-16 (Mandatory Use Date) 4) Suggest the seller remove the item and show the house with items that will go with the house; and RESIDENTIAL LISTING CONTRACT EXCLUSIVE RIGHT TO SELL 5) Address rentedWB-1 fixtures such as water softeners, satellite- dishes, LP tanks, satellite receiver boxes, and security systems.

1 SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 2 ■ PROPERTY DESCRIPTION: Street address is: ______________________________________________________ Approved by the Wisconsin Real Estate Examiningfixtures Board Page 1 a of 6,licensee WB-1 When educating a seller about and included or excluded items in the transaction, 3 _______________________________________________________________________________________________ 7-1-16 (Mandatory Use Date) can4 ask the seller for additional information about the title to the listed property and order a “search in the _________________ of ________________________________, County of _____________________________, and5 hold” or title report from the titleifcompany haveorthe complete title issues questionnaire. WB-1 RESIDENTIAL CONTRACT - seller EXCLUSIVE RIGHTaper TO SELL Wisconsin. Insert additional description, any,LISTING at linesor 303-308 attach as an addendum lines 309-310. The6 person ordering title report from a title company or Property, a “search and hold” on theon title will pay for ■ INCLUDED IN LISTaPRICE: Seller is including in the list price the all Fixtures not excluded lines 12-14, and the following items: SELLER GIVES THE FIRM___________________________________________________________________________ THE EXCLUSIVE RIGHT TOissue SELL THE PROPERTY ONfor THEsellers. FOLLOWING this17 service. Firms often have a standard title questionnaire The TERMS: title questionnaire _______________________________________________________________________________________________ ■ PROPERTY Street address ______________________________________________________ will28 ask sellers toDESCRIPTION: answer questions about is: recent modifications to the property, easements, boundary _______________________________________________________________________________________________ line93 disputes, or other issues that have an impact on title. Chapter 8 covers title conditions. By asking 104 in _______________________________________________________________________________________________ the _________________ of ________________________________, County of _____________________________, a seller about title issues, the licensee can begin the process of making sure that the seller will provide 115 Wisconsin. ______________________________________________________________________________________________. Insert additional description, if any, at lines 303-308 or attach as an addendum per lines 309-310. marketable title IN at LIST closing. Marketable title in gives buyer rightalltoFixtures enjoynot theexcluded property without 126 ■ NOT INCLUDED IN LIST PRICE: INCLUDED PRICE: Seller__________________________________________________________________ is including the lista price the the Property, on lines 12-14,legal challenges and the ability to sell the property later. A licensee must be aware of title issues but should 137 and _______________________________________________________________________________________________ the following items: ___________________________________________________________________________ not advise sellers or buyers about the condition of title. A licensee cannot give legal advice to parties. 148 _______________________________________________________________________________________________ ______________________________________________________________________________________________. 159 _______________________________________________________________________________________________ Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the Line CAUTION: 17 List Price 16 _______________________________________________________________________________________________ lessor. (See lines 181-194). 10 17 LIST PRICE: _____________________________________________________ Dollars ($____________________). 11 ■ ______________________________________________________________________________________________. 12 ■ NOT INCLUDED IN authorizes LIST PRICE: MARKETING Seller and__________________________________________________________________ the Firm its agents agree to use reasonable efforts to marketThe the Property. A 18 licensee includes the specific price at and which the seller wants to list the property. list price is 13 _______________________________________________________________________________________________ 19 Seller agrees that the Firmand and then its agents may market Seller’sthe personal propertydepiction identified oninlines 7-11 during the term written out in words first a licensee places numerical the parenthesis. 14 ______________________________________________________________________________________________.In the 20 of this Listing. The marketing may include: _____________________________________________________________ 15 CAUTION: Fixtures to be excluded Seller amount or which are and will continue to be owned by the event that the Identify amounts do not match, the by written willrented determine the list price. 21 ______________________________________________________________________________________________. 16 lessor. (See lines 181-194). Lines 18-26 Marketing 22 The Firm and its agents may advertise the following special financing and incentives offered by Seller: _____________ 17 ■ LIST PRICE: _____________________________________________________ Dollars ($____________________). 23 ______________________________________________________________________________________________. 18 MARKETING Seller authorizeswith andthe themarketing Firm and efforts its agents agree useitsreasonable efforts market regarding the Property. 24 Seller has a duty to cooperate of the Firmtoand agents. See linesto246-252 the 25 Seller Firm’s agrees role as that marketing agent Seller’smay dutymarket to notify the Firm of anyproperty potentialidentified buyer known to Seller. Sellerthe agrees 19 the Firm andand its agents Seller’s personal on lines 7-11 during term 26 of thatthis theListing. Firm and agents may other properties during the term of this Listing. 20 Theitsmarketing maymarket include: _____________________________________________________________ 21 27 ______________________________________________________________________________________________. COMMISSION The Firm's commission shall be _________________________________________________________ 22 The Firm and its agents may advertise the following special financing and incentives offered by Seller: _____________ 28 _________________________________________________________________________________________________. 23 ______________________________________________________________________________________________. 29 ■ EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: 24 Seller has a duty to cooperate with the marketing efforts of the Firm and its agents. See lines 246-252 regarding the 30 1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property; 25 Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. Seller agrees 31 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 26 that the Firm and its agents may market other properties during the term of this Listing. 32 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; The Firm'swhich commission shall be _________________________________________________________ 33 4) A transaction occurs causesauthorizes an effective change in ownership or control of allefforts or any part of theaProperty; or the In 27 theCOMMISSION Marketing section, the seller the firm to use reasonable to find buyer for 34 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the 28 _________________________________________________________________________________________________. property and to market any personal property included in the list price. A firm’s marketing planlist might 35 ■ EARNED: price and on substantially same terms set forth in shall this Listing and the currentthe WB-11 Residential Offer to Purchase, 29 Seller shall pay thethe Firm's commission, which be earned, if, during term of this Listing: include advertising in a multiple listing service, holding open houses, or placing yard signs. On lines 36 1) Seller even ifsells Seller does notanaccept the buyer's A buyer iscontract ready, for willing and of able when 30 or accepts offer which createsoffer. an enforceable the sale all or any the partbuyer of the submitting Property; the 22-23, the firmoffer listshas any special financing or incentives that awhich seller wants as part of the firm’s 37 2) written ability to complete buyer’s under the written offer. to include 31 Seller grants an the option to purchase allthe or any partobligations of the Property is subsequently exercised; marketing strategy. A seller might want to advertise home carpet allowance, or seller 38 The commission be earned if, during the term ofathe Listing, sellerofaof the Property sells, conveys, 32 3) Firm’s Seller exchanges orshall enters into a binding exchange agreement on all warranty, or one any part the Property; financing. 39 exchanges or options, as described above, interestchange in all or inany part of theorProperty another by divorce 33 4) A transaction occurs which causes anan effective ownership control oftoall or anyowner, part ofexcept the Property; or 40 judgment. 34 5) A ready, willing and able buyer submits ashould bona fidenot written offer to information Seller or Firm for the Propertylotat,lines, or above, list or When marketing properties, a licensee provide regarding lotthe sizes, 41 ■dimensions DUE AND PAYABLE: Once refer earned, theterms Firm’s due and payable in can full at be theResidential earlier ofliable closing orPurchase, the date 35 price and onbut substantially the same set forth in sources. this is Listing and the current WB-11 Offer to room rather buyers tocommission other A licensee found for inaccurate 42 set foreven closing, evendoes if the transaction does not close, unless otherwise agreed in writing. 36 if Seller accept the offer. A buyer is ready, willing and able when the buyer submitting the statements made to the not parties in a buyer's transaction. 43 ■ CALCULATION: A percentage shall be calculated based thewritten following, 37 written offer has the ability tocommission complete the buyer’s obligations underonthe offer.if earned above: 38 commission earned if, between during the of inthe one seller of the Property sells, conveys, 44 The Firm’s Under 1) or 2) theshall total be consideration the term parties theListing, transaction. 39 or options, an interest or any part of the Property to another owner, except by divorce 45 exchanges  Under 3) or 4) as thedescribed list price ifabove, the entire Propertyinisallinvolved. 40 46 judgment.  Under 3) if the exchange involves less than the entire Property or under 4) if the effective change in ownership or 41 PAYABLE: Oncethan earned, the Firm’s commission is due and payable full atofthe of closing or theordate 47 ■ DUE AND control involves less the entire Property, the fair market value of the in portion theearlier Property exchanged for 42 even was if thean transaction does notinclose, unlessorotherwise 48 which there effective change ownership control. agreed in writing. 44set for closing, 43 A percentage shall be calculated based on the following, if earned above: 49 ■ CALCULATION:  Under 5) the total offeredcommission purchase price. 44  IfUnder 1) or 2) theistotal consideration between theProperty parties initthe transaction. 50 NOTE: a commission earned for a portion of the does not terminate the Listing as to any remaining

1 SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 2 ■ PROPERTY DESCRIPTION: Street address is: ______________________________________________________ 3 _______________________________________________________________________________________________ 4 in the _________________ of ________________________________, County of _____________________________, Agency Agreements - 3 5 Wisconsin. Insert additional description, if any, at lines 303-308 or attach as an addendum per lines 309-310. 6 ■ INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, 7 and the following items: ___________________________________________________________________________ Wisconsin law provides that an inexperienced buyer should be able to rely on factual statements made 8 _______________________________________________________________________________________________ by 9a _______________________________________________________________________________________________ professional. A licensee should use disclaimers on all advertisements including information data sheets to avoid buyers assuming that a licensee has verified the accuracy of statements about the 10 _______________________________________________________________________________________________ 11 ______________________________________________________________________________________________. property. Disclaimers may not provide absolute protection in all cases and mistakes by a licensee could 12 ■ NOT INCLUDED IN LIST PRICE: __________________________________________________________________ lead to lawsuits for damages, rescission of the transaction, or disciplinary action from the Department 13 _______________________________________________________________________________________________ of Safety and Professional Services. 14 ______________________________________________________________________________________________. 15 CAUTION: Identify Fixtures be excluded To minimize liability, the to licensee should:by Seller or which are rented and will continue to be owned by the 16 lessor. (See lines 181-194). 1. Never walk the parcel or lot lines with a buyer and caution a seller about potential liability if the seller 17 ■ LIST PRICE: _____________________________________________________ Dollars ($____________________).

inaccurately represents boundary or lot lines; 2. Encourage a buyer to order a survey or map if property dimensions are material to the transaction; Seller agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term and of this Listing. The marketing may include: _____________________________________________________________ 3.  Include the source of data used in advertisements. ______________________________________________________________________________________________. The For Firmexample, and its agents the is following special financing and acreage incentivesasoffered by assessor, Seller: _____________ statemay thatadvertise the lot size per seller measurements, per city or square ______________________________________________________________________________________________. feet as per tax record.

18 MARKETING Seller authorizes and the Firm and its agents agree to use reasonable efforts to market the Property.

19 20 21 22 23 24 Seller has a duty to cooperate with the marketing efforts of the Firm and its agents. See lines 246-252 regarding the 25 Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. Seller agrees Lines 27-51 Commission 26 that the Firm and its agents may market other properties during the term of this Listing. 27 COMMISSION The Firm's commission shall be _________________________________________________________

_________________________________________________________________________________________________. ■ EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: 1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property; 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the list price and on substantially the same terms set forth in this Listing and the current WB-11 Residential Offer to Purchase, even if Seller does not accept the buyer's offer. A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer’s obligations under the written offer. The Firm’s commission shall be earned if, during the term of the Listing, one seller of the Property sells, conveys, exchanges or options, as described above, an interest in all or any part of the Property to another owner, except by divorce judgment. ■ DUE AND PAYABLE: Once earned, the Firm’s commission is due and payable in full at the earlier of closing or the date set for closing, even if the transaction does not close, unless otherwise agreed in writing. ■ CALCULATION: A percentage commission shall be calculated based on the following, if earned above:  Under 1) or 2) the total consideration between the parties in the transaction.  Under 3) or 4) the list price if the entire Property is involved.  Under 3) if the exchange involves less than the entire Property or under 4) if the effective change in ownership or control involves less than the entire Property, the fair market value of the portion of the Property exchanged or for which there was an effective change in ownership or control.  Under 5) the total offered purchase price. NOTE: If a commission is earned for a portion of the Property it does not terminate the Listing as to any remaining Property. 52 COMPENSATION TO OTHERS The Firm offers the following commission to cooperating firms: _____________________ This section describes the different ways in which a firm can earn a commission and how to calculate 53 amount ____________________________________. (Exceptions if any):_______________________________________________. the of the commission. Commission is not a requirement of an agency relationship and a firm 54 BUYER Firm andfee. its agents Wisconsinservices, statutes or regulations could donateFINANCIAL servicesCAPABILITY or charge aThe reduced If a are firmnotisresponsible donatingunder brokerage the firm to would qualify a buyer’s financial capability. Seller27-28 wishes to a buyer’s financial capability, Seller may negotiate inclusion of list55the commission as $0.00 on Iflines ofconfirm the listing. 56 parties a contingency financing, proof form of funds, from astructure lender, salethat of buyer’s property, other confirmation in anyfirm’s The canfor agree to any of qualification commission is legal and orpermissible by the 57 offer to purchase or contract. company policy. A firm can use line 27-28 to state whether commission is a percentage of the purchase 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

price, a set amount, or other compensation. Sellers and firms may agree to a commission as a percentage of the purchase price, a retainer fee, a flat fee, hourly range, or variable rates.

45

REAL ESTATE SALES

Firms establish their own commission rates and policies though commissions are always negotiable with the seller. Commonly, firms base commissions on a percentage of the purchase price and there is not a specific maximum or minimum commission amount. A firm earns a commission if one of the events listed on lines 30-37 occurs but a seller does not pay a commission until closing or the date set for closing, unless the parties agree to another arrangement in writing. The listing firm earns a commission (lines 30-37) if any of the five listed events occur during the term of the listing. 1. Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property. An enforceable contract means that a party to the contract could go to court and obtain a remedy for breach. An easy example would be an offer to purchase with all the contingencies have been removed, and the parties are just waiting for the closing date to arrive. 2. Seller grants an option to purchase all or any part of the Property which is subsequently exercised. A firm does not earn a commission when a seller grants an option but if the option is later exercised, the firm earns a commission. 3. Seller exchanges or enters into a binding exchange agreement on all or any part of the Property. When a seller exchanges property according to the tax rules governing exchanges, there is not a traditional sale of the property but the successful exchange results in a change in ownership for which the firm earns a commission. 4. A transaction occurs which causes an effective change in ownership or control of all or any part of the Property. A firm may earn a commission under this option if a seller decides to transfer property to an LLC in which the seller is a principal or an LLC owns property and the sole member sells to another person causing an effective change in ownership. 5. A ready, willing and able buyer submits an offer at or above full price; on substantially the same terms as in the WB-11 Residential Offer to Purchase and the seller does not accept it. A firm may earn a commission under this section if a buyer writes what is called a “mirror image offer.” That means an offer that mirrors the specifications for list price, included and excluded property, and any other provision a seller included in a listing contract. For example, a buyer writes an offer for the listing price or higher with no contingencies and a seller rejects it. Even though the seller rejected it, the firm earned a commission under this section. Lines 43-49 address how to calculate a commission depending on the way the firm earned it. If the firm earned a commission under 1) or 2), the parties use the total consideration to calculate the commission amount. If the firm earns a commission under 3), 4), the parties calculate the commission using the list price. If a seller exchanges less than the whole property under 3) or the seller changes ownership or control of less than the whole property under 4), the parties calculate the commission using the fair market value of the portion of the property that the seller exchanged or transferred to the new owner. If the commission is earned under 5), it is based on the total offered purchase price. When a property has more than one owner, if any owner sells, conveys, exchanges, or options an interest in all or any part of the property to another owner, the listing firm earns a commission, unless the transfer is due to a divorce judgment. If a seller decides to sell, option, or exchange part of a listed property, the remaining property stays listed under the terms of the listing contract.

46

44  Under 1) or 2) the total consideration between the parties in the transaction. 3245 3) Seller exchanges intoifathe binding  Under 3) or 4)or theenters list price entireexchange Property isagreement involved. on all or any part of the Property; 3346 4) A transaction occurs which causes an effective change in Property ownership control all effective or any part of theinProperty; or or Under 3) if the exchange involves less than the entire oror under 4) ifofthe change ownership 3447 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the control involves less than the entire Property, the fair market value of the portion of the Property exchanged orlistfor Agency Agreements -3 3548 pricewhich and on substantially the same termsinset forth in this Listing and the current WB-11 Residential Offer to Purchase, there was an effective change ownership or control. 3649 even if Seller does notoffered acceptpurchase the buyer's  Under 5) the total price.offer. A buyer is ready, willing and able when the buyer submitting the 3750 NOTE: written has the ability to complete the buyer’s obligations thenot written offer. the Listing as to any remaining If aoffer commission is earned for a portion of the Propertyunder it does terminate 3851The Firm’s commission shall be to earned if, during the term of the Listing, one seller of the Property sells, conveys, Lines 52-52 Compensation Others Property. 39 exchanges or options, as described above, an interest in all or any part of the Property to another owner, except by divorce 52 COMPENSATION TO OTHERS The Firm offers the following commission to cooperating firms: _____________________ 40 judgment. (Exceptions if any):_______________________________________________. 4153■____________________________________. DUE AND PAYABLE: Once earned, the Firm’s commission is due and payable in full at the earlier of closing or the date

setBUYER for closing, even if theCAPABILITY transaction does close, otherwise writing. Thenot Firm and unless its agents are not agreed responsible under statutes and or regulations A4254 listing firmFINANCIAL discloses compensation agreements with other infirms onWisconsin lines 52-53 if thereto are 4355■qualify CALCULATION: A percentage commission shall be calculated based on the following, if earned above: If Seller wishes to confirm a buyer’s financial capability, Sellerthose may negotiate inclusionpart of of exceptionsa buyer’s to thefinancial listingcapability. firm’s compensation agreements, the firm includes on second 4456 a contingency  Under 1) orfinancing, 2) the totalproof consideration between thefrom parties in the transaction. of will funds, qualification a lender, sale of buyer’s property, or other confirmation intoany line 53. A firm’s for company policy dictate how listing agents address offers of compensation other 4557 offer  toUnder 3) oror4)contract. the list price if the entire Property is involved. purchase firms. The listing shouldinvolves disclose if they policyorletter 46  Under 3) iffirm the exchange less MLS than thecompensation entire Property or splits, under 4) disclose if the effective changehave in ownership compensation agreements with any firms, and share copies of agreements if a seller requests 47 control involves less than the entire Property, the fair market value of the portion of the Property exchanged or details. for was an effective in ownership or control. questions and policies to avoid an appearance A48licenseewhich mustthere be careful whenchange addressing commission  Under 5)Firm the total offered purchase price. of49 price-fixing. decisions concerning commissions and fees must be unilateral, independent 50 NOTE: Ifdecisions, a commission is earned for awithin portionthe of the Property it does terminateconsultation the Listing as to remaining with business made solely firm’s office andnotwithout orany discussion 51 Property. anyone from another real estate firm. 52 COMPENSATION TO OTHERS The Firm offers the following commission to cooperating firms: _____________________

Lines 54-57 Buyer’s Financial Capability 53 ____________________________________. (Exceptions if any):_______________________________________________.

54 BUYER FINANCIAL CAPABILITY The Firm and its agents are not responsible under Wisconsin statutes or regulations to 55 qualify a buyer’s financial capability. If Seller wishes to confirm a buyer’s financial capability, Seller may negotiate inclusion of 56 a contingency for financing, proof of funds, qualification from a lender, sale of buyer’s property, or other confirmation in any 57 offer to purchase or contract.

A licensee is not responsible for determining the buyer’s financial capability. A seller has a number of ways to address concerns about the buyer’s financial capability such as requiring a pre-qualification letter, a pre-approval letter, verification of funds or working through the financing contingency in the offer to purchase. Lines 58-62 Dispute Resolution

Page 2 of 6, WB-1

58 DISPUTE RESOLUTION The Parties understand that if there is a dispute about this Listing or an alleged breach, and 59 60 61 62

the parties cannot resolve the dispute by mutual agreement, the parties may consider judicial resolution in court or may consider alternative dispute resolution. Alternative dispute resolution may include mediation and binding arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended that the parties add such in Additional Provisions or in an Addendum.

Page 2 of 6, WB-1 63 FAIR Seller and the andcontract its agents that be theyresolved will not by discriminate against any the If there is aHOUSING dispute regarding the Firm listing thatagree cannot mutual agreement, 64 prospective buyeralternate on account of race, color, sex, defined in Wisconsin Statutes, Section 58 DISPUTE RESOLUTION The dispute Parties understand thatsexual if thereorientation is a such disputeas about this Listing or anarbitration. alleged breach, andseller seller can consider resolution methods as mediation and If a 65 111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, family wanted make thatresolve binding on thebyparticular listing,the heparties or she have to resolution write something into the 59 the to parties cannot the dispute mutual agreement, maywould consider judicial in court or may 66 consider status, as lines a victim domestic abuse, sexual assault, stalking, or in any other mediation unlawful manner. 60 alternative dispute resolution. Alternative dispute or resolution may include and binding WB-1 on thestatus blank orofwith an addendum.

61 arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended

67 DISCLOSURE CLIENTS Lines 63-66 Fair TO Housing 62 that the parties add such in Additional Provisions or in an Addendum.

68 Under Wisconsin law, a brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe 63 FAIR HOUSING and the Firm and its agents agree that they will not discriminate against any 69 certain duties to all Seller parties to a transaction: 70 prospective (a) The dutybuyer to provide brokerage to you fairly and honestly. 64 on account of services race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 71 111.32(13m), (b) The duty to exercise religion, reasonable skill andorigin, care inmarital providing brokerage 65 disability, national status, lawfulservices sourcetoofyou. income, age, ancestry, family 72 status, (c) Thestatus duty toasprovide you accurate information market conditions within reasonable time if you request 66 a victim of with domestic abuse, sexual about assault, or stalking, or in any aother unlawful manner. 73 it, unless disclosure of the information is prohibited by law. 67 DISCLOSURE CLIENTS 74listing (d) Thecontract duty toTO disclose tothe youagreement in writing certain Material Adverse Factsfirm aboutand a property, unlessdodisclosure of the The states of the seller and the its agents not discriminate 75 information is prohibited by law. (See(hereinafter lines 195-198.) 68 Under law, a buyer brokerage firm firm) and its sexual brokers and salespersons (hereinafter agents) national owe against anyWisconsin prospective based on race, color, sex, orientation, disability, religion, 76 certain (e)marital Theduties duty your Unless theage, law requires it, the and itsstatus, agents will not disclose your of 69 totoallprotect parties to a confidentiality. transaction: origin, status, lawful source of income, ancestry or firm familial status as a victim 77 confidential information or the confidential information of other parties. (See lines 135-150.) 70 (a) The duty to sexual provide brokerage to you fairly honestly. domestic abuse, assault services or stalking, or inand any unlawful manner. 78 (b) (f) The Theduty dutytotoexercise safeguard trust fundsskill andand other property the firm or its agents holds. 71 reasonable care in providing brokerage services to you. 79 (c) (g) The The duty duty,towhen negotiating, presentinformation contract proposals in an objective and unbiased manner and the 72 provide you withtoaccurate about market conditions within a reasonable timedisclose if you request 80 advantages and disadvantages of the proposals. 73 it, unless disclosure of the information is prohibited by law. 74 (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the 81 BECAUSE YOUisHAVE ENTERED 75 information prohibited by law.INTO (See AN linesAGENCY 195-198.)AGREEMENT WITH A FIRM, YOU ARE THE FIRM'S CLIENT. 82 (e) The duty to protect A FIRM ADDITIONAL YOU AS OFitsTHE FIRM: 76 yourOWES confidentiality. UnlessDUTIES the lawTO requires it, A theCLIENT firm and agents will not disclose your 77 confidential information or the confidential information of other parties. (See lines 135-150.) (a) The The duty firm to or safeguard one of its agents will and provide, your request, andholds. advice on real estate matters that affect 83 (f) 78 trust funds otheratproperty the firminformation or its agents 84 your transaction, unless you release the firm from this duty. 47 79 (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the 85 (b) advantages The firm or and onedisadvantages of its agents must you with all material facts affecting the transaction, not just Adverse 80 of theprovide proposals. 86 Facts.

60 consider alternative dispute resolution. Alternative dispute resolution may include mediation and binding 61 arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended Page 2 of 6, WB-1 62 that the parties add such in Additional Provisions or in an Addendum. 58 DISPUTE RESOLUTION The Parties understand that if there is a dispute about this Listing or an alleged breach, and REAL ESTATE SALES 63 FAIR HOUSING Seller and the Firm and its agents agree that they will not discriminate against any 59 the parties cannot resolve the dispute by mutual agreement, the parties may consider judicial resolution in court or may 64 prospective buyer on account of race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 60 consider alternative dispute resolution. Alternative dispute resolution may include mediation and binding 65 111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, family 61 arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended Lines 67-80status Duties All ofParties 66 status, as a to victim domestic abuse, sexual assault, or stalking, or in any other unlawful manner. 62 that the parties add such in Additional Provisions or in an Addendum. 67 63 68 64 69 65 70 66 71 72 67 73 68 74 69 75 70 76 71 77 72 78 73 79 74 80 75

DISCLOSURE TO CLIENTS FAIR HOUSING Seller and the Firm and its agents agree that they will not discriminate against any Under Wisconsin law, brokerage firm (hereinafter andorientation its brokersasand salespersons (hereinafter agents) owe prospective buyer on aaccount of race, color, sex, firm) sexual defined in Wisconsin Statutes, Section certain duties to all parties to a transaction: 111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, family (a) Thestatus duty toas provide brokerage services to you fairly assault, and honestly. status, a victim of domestic abuse, sexual or stalking, or in any other unlawful manner. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to TO provide you with accurate information about market conditions within a reasonable time if you request DISCLOSURE CLIENTS it, unless disclosure the information is prohibited by law. Under Wisconsin law, a of brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe (d) Theduties duty to to all disclose in writing certain Material Adverse Facts about a property, unless disclosure of the certain partiestoto you a transaction: information is prohibited by law.services (See lines 195-198.) (a) The duty to provide brokerage to you fairly and honestly. (e) The duty to protect your confidentiality. Unless the law requires it, the firm and its agents will not disclose your (b) The duty to exercise reasonable skill and care in providing brokerage services to you. confidential information or the confidential information of other parties. (See lines 135-150.) (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request (f) The duty to safeguard funds and other propertybythe firm or its agents holds. it, unless disclosure of trust the information is prohibited law. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner anddisclosure disclose the (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless of the advantages and disadvantages of the proposals. information is prohibited by law. (See lines 195-198.)

76 (e) The duty to protect your confidentiality. Unless the law requires it, the firm and its agents will not disclose your

The77 thatYOU a information firm to all parties in a transaction were Chapter 1. This section 81 duties BECAUSE HAVEowes ENTERED INTO AN AGENCY AGREEMENT WITH Acovered FIRM, YOUinARE THE FIRM'S CLIENT. confidential or the confidential information of other parties. (See lines 135-150.) 82 A FIRM OWES ADDITIONAL DUTIES TO YOU AS A CLIENT OF THE FIRM: discussing the duties to all parties is part of the mandatory agency disclosure to a client. It gives the 78 (f) The duty to safeguard trust funds and other property the firm or its agents holds. seller an The overview of negotiating, the dutiesto that you owe proposals to all parties in a transaction. 79 (g) duty, when present contract in an objective and unbiased manner and disclose the 83 (a) The firm or one of its agents will provide, at your request, information and advice on real estate matters that affect

80 81-94 advantages andto disadvantages of the proposals. Lines Duties a Client 84 your transaction, unless you release the firm from this duty. 85 81 86 82 87 88 83 89 84 90 85 91 86 92 87 93 88 94 89

(b) The firmYOU or one of its agents must you with all material WITH facts affecting not just CLIENT. Adverse BECAUSE HAVE ENTERED INTOprovide AN AGENCY AGREEMENT A FIRM, the YOUtransaction, ARE THE FIRM'S Facts. A FIRM OWES ADDITIONAL DUTIES TO YOU AS A CLIENT OF THE FIRM: (c) The firm and its agents will fulfill the firm’s obligations under the agency agreement and fulfill your lawful requests of thewill agency agreement. (a) that The are firmwithin or onetheofscope its agents provide, at your request, information and advice on real estate matters that affect (d) your The firm and its agents for firm you, from unless release them from this duty. transaction, unlesswill younegotiate release the thisyou duty. (e) The firm and its agents will not place their interests ahead of your facts interests. The firm its agentsnotwilljust not,Adverse unless (b) The firm or one of its agents must provide you with all material affecting the and transaction, required by law, give information or advice to other parties who are not the firm’s clients, if giving the information or Facts. advice is contrary to your interests. (c) The firm and its agents will fulfill the firm’s obligations under the agency agreement and fulfill your lawful requests If you involved in aoftransaction which another party is also the firm’s client (a "multiple representation thatbecome are within the scope the agency inagreement. relationship"), different duties may apply. (d) The firm and its agents will negotiate for you, unless you release them from this duty.

107 108 109 110 111

more than one client in a transaction but neither the firm nor any of its agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same agent may represent more than one client in a transaction. ■ If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.

90 (e) The firm and its agents will not place their interests ahead of your interests. The firm and its agents will not, unless 95 MULTIPLE REPRESENTATION RELATIONSHIPS DESIGNATED 91 required by law, give information or advice to other parties who areAND not the firm’s clients,AGENCY if giving the information or 96 multiple representation 92 ■ A advice is contrary to your relationship interests. exists if a firm has an agency agreement with more than one client who is a 97 the same transaction. If you andinthe firm’s other party clientsisinalso the the transaction consent, the firmrepresentation may provide 93 party If you inbecome involved in a transaction which another firm’s client (a "multiple 98 services through designated agency, which is one type of multiple representation relationship. 94 relationship"), different duties may apply. 99 ■ Designated agency means that different agents with the firm will negotiate on behalf of you and the other client or 100 andREPRESENTATION the firm’s duties toRELATIONSHIPS you as a client AND will remain the same. Each agent will provide 95 clients in the transaction, MULTIPLE DESIGNATED AGENCY The additional duties aand firm owes toclient a client were covered in Chapter 1. This is another part of the 101 information, opinions, advice to the for whom the agent is negotiating, to assist the client in the negotiations. 96 ■ A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a mandatory agency disclosure. It gives the seller an overview of the additional duties that the firm owes 102 be able to receive information, andclients adviceinthat assist theconsent, client, even themay information, 97 Each party client in thewill same transaction. If you and the opinions, firm’s other thewill transaction the iffirm provide to 103 the seller through as a client. opinions, or advice gives the agency, client advantages in the over the firm’s relationship. other clients. An agent will not reveal 98 services designated which is one typenegotiations of multiple representation 104 of your confidential information to another partywith unless do so byon law.behalf of you and the other client or 99 any ■ Designated agency means that different agents therequired firm willtonegotiate 105 If a designated agency relationship is notduties authorized by as youaorclient otherwill clients in thethetransaction you agent may still 100 ■ clients in the transaction, and the firm’s to you remain same. Each willauthorize provide 106 or reject a different type of multiple representation relationship in which the firm may provide brokerage services to 101 information, opinions, and advice to the client for whom the agent is negotiating, to assist the client in the negotiations. 107 in atotransaction but neitheropinions, the firm and nor advice any of its may the assist anyeven clientifwith 102 more Each than clientone will client be able receive information, thatagents will assist client, the information, information, 108 opinions, and advice which may favor the interests of one client over any other client. Under this neutral the 103 opinions, or advice gives the client advantages in the negotiations over the firm’s other clients. An agent approach, will not reveal 109 same agent may represent more than one client in a transaction. 104 any of your confidential information to another party unless required to do so by law. 110 do not consent to a multipleis representation relationship the clients firm will not transaction be allowedyou to provide 105 ■ ■ IfIf ayou designated agency relationship not authorized by you or other in the may stillbrokerage authorize 111 services thantype oneofclient in therepresentation transaction. relationship in which the firm may provide brokerage services to 106 or reject to a more different multiple

48

88 that are within the scope of the agency agreement. 89 (d) The firm and its agents will negotiate for you, unless you release them from this duty. 90 (e) The firm and its agents will not place their interests ahead of your interests. The firm and its agents will not, unless Agency Agreements - 3 91 required by law, give information or advice to other parties who are not the firm’s clients, if giving the information or 92 advice is contrary to your interests. 93 If you become involved in a transaction in which another party is also the firm’s client (a "multiple representation 94 relationship"), different duties may apply. Lines 95-111 Multiple Representation Relationship 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111

MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY ■ A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a party in the same transaction. If you and the firm’s other clients in the transaction consent, the firm may provide services through designated agency, which is one type of multiple representation relationship. ■ Designated agency means that different agents with the firm will negotiate on behalf of you and the other client or clients in the transaction, and the firm’s duties to you as a client will remain the same. Each agent will provide information, opinions, and advice to the client for whom the agent is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the firm’s other clients. An agent will not reveal any of your confidential information to another party unless required to do so by law. ■ If a designated agency relationship is not authorized by you or other clients in the transaction you may still authorize or reject a different type of multiple representation relationship in which the firm may provide brokerage services to more than one client in a transaction but neither the firm nor any of its agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same agent may represent more than one client in a transaction. ■ If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.

These relationships were reviewed in Chapter 1. The firm represents both the seller and the buyer as clients in the same transaction. This section describes multiple representation relationships generally and then distinguishes between multiple representation with designated agency and multiple representation without designated agency. This is another section of the mandatory agency disclosure to a client. This can be difficult to explain to a party. Lines 112-124 Agency Choices Property Address: _________________________________________________________________________________________________________Page 3 of 6, WB-1

112

CHECK ONLY ONE OF THE THREE BELOW:

113 114

The same firm may represent me and the other party as long as the same agent is not representing us both (multiple representation relationship with designated agency).

115 116 117

The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved (multiple representation relationship without designated agency).

118 119

The same firm cannot represent both me and the other party in the same transaction (I reject multiple representation relationships).

120 121 122 123 124

NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.

125

SUBAGENCY

Each agency choice is preceded by a check box, followed by a short explanation of what the choice 126 Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by is,127 and followed by the parenthetical description seller firm checks providing brokerage services for your benefit. A subagentof firmthe andagency the agentsrelationship. associated with The the subagent will notthe put box for128 thetheir seller’s agency choice. If there are multiple sellers, just one checked box will demonstrate own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to the agency choice all the sellers.toThis is another part of the mandatory agency disclosure to a client. 129 other parties ifofdoing so is contrary your interests. The seller can modify the agency choice with a written notice to the firm at any time. 130 PLEASE REVIEW THIS INFORMATION CAREFULLY. An agent can answer your questions about brokerage 131 services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax 132 advisor, or home inspector. 133 This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language 134 summary of the duties owed to you under section 452.133 (2) of the Wisconsin statutes. 135 136 137 138 139 140

■ CONFIDENTIALITY NOTICE TO CLIENTS: The Firm and its agents will keep confidential any information given to the Firm or its agents in confidence, or any information obtained by the Firm and its agents that a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to disclose particular information. The Firm and its agents shall continue to keep the information confidential after the Firm is no longer providing brokerage services to you. The following information is required to be disclosed by law:

49

118 119

The same firm cannot represent both me and the other party in the same transaction (I reject multiple representation relationships).

120 NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may REAL ESTATE SALES 121 modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your 122 Property agency agreement the commission or fees that you may owe to your firm. If you have any questions about the Address: _________________________________________________________________________________________________________Page 3 of 6, WB-1 123 commission or fees that you may owe based upon the type of agency relationship you select with your firm, Lines 125-129 Subagency 112 CHECKthe ONLY ONEagreement. OF THE THREE BELOW: 124 you should ask your firm before signing agency 113 The same firm may represent me andSUBAGENCY the other party as long as the same agent is not 125 114 representing us both (multiple relationship designated agency). 126 Your firm may, with your authorization in therepresentation agency agreement, engagewith other firms (subagent firms) to assist your firm by 127 providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put 115 The same firm may represent me and the other party, but the firm must remain neutral 128 their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to 116 regardless if one or more different agents are involved (multiple representation relationship 129 other parties if doing so is contrary to your interests. 117 without designated agency). Property Address: _________________________________________________________________________________________________________Page 3 of 6, WB-1 130 PLEASE REVIEW THIS INFORMATION CAREFULLY. An agentincan answer your questions about brokerage This seller gives the firm permission engage subagency. Subagency 118 is where aThe same firm cannot represent both ONE metoand the other party in the same transaction (Imeans reject a licensee 112 CHECK ONLY OF THE THREE BELOW: 131 services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax from a firm other than the listing firm is providing brokerage services to a buyer-customer. The subagent 119 multiple representation relationships). 132 advisor, or home inspector. does an agency with butparty is only ableastotheprovide brokerage 113 not have The same firmagreement may represent me any and party the other as long same agent is not services in 120 NOTE: All clients who are parties to this agency agreement consent toisthe selection checked above. may 133 This disclosure is required by section 452.135 of the Wisconsin statutes and for information only. It is plain You language 114 representing us both (multiple representation relationship with designated agency). a transaction because a seller granted permission to the listing firm to engage in asubagency. The 121 modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your 134 summary of the duties owed tolisting you under section 452.133to (2) provide of the Wisconsin statutes. subagent is “borrowing” the firm’s agency services to the buyer-customer. 122 agency agreement thefirm commission or feesme thatand youthe may oweparty, to your you must have remain any questions 115 The same may represent other butfirm. the Iffirm neutral about the 135 ■ CONFIDENTIALITY NOTICE TO CLIENTS: The Firmthe andtype its agents will keep confidential any information given to 123 buyer commission or feesthere that you may owe based upon ofbuyer’s agency relationship youown select with your firm, if one more different agents are involved (multiple representation relationship If 116 the is aregardless client, isorno subagency because the firm has their agency agreement 136 the Firm or its agents in confidence, or any information obtained by the Firm and its agents that a reasonable person 124 youdo should ask your before signing the agency designated agency). so117 they notwithout need tofirm “borrow” the listing firm’sagreement. agency relationship. Subagency means a buyer is 137 would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to receiving brokerage services from a firm both other than theother listing firm and thetransaction buyer is(Inot a client of that 125 SUBAGENCY 118 The same firm cannot me and in the same reject 138 disclose particular information. The represent Firm and its agents shallthe continueparty to keep the information confidential after the Firm firm. Buyer agency means that a buyer is receiving brokerage services from a firm other than listing 126 Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your the firm by 119 multiple representation relationships). 139 is no longer providing brokerage services to you. 127 providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put firm and the buyer is a client of that firm. 140 The following information is required to be disclosed by law: 120 NOTE: Allinterests clients ahead who are parties to thisAagency agreement consent the selection checked above. You may 128 own of as your interests. subagent not, unless to required law,lines provide advice or opinions to 141 their 1)130-134 Material Adverse Facts, defined in section 452.01firm (5g)will of the Wisconsin statutesby(see 195-198). Lines End of Agency Disclosure 121 modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your 129 other parties if doing so is contrary to your interests. 142 2) Any facts known by the Firm and its agents that contradict any information included in a written inspection report on 122 agency agreement the commission or fees that you may owe to your firm. If you have any questions about the 143 the property or real estate that is the subject of the transaction. 130 commission PLEASE REVIEW CAREFULLY. agent can answer your questions brokerage 123 or feesTHIS that INFORMATION you may owe based upon theAntype of agency relationship you selectabout with your firm, 144 To ensure that the Firm and its agents are aware of what specific information you consider contact confidential, you may tax list 131 services, but if you need legal advice, tax advice, or a professional home inspection, an attorney, 124 you should ask your firm before signing the agency agreement. 145 that information below (see lines 147-148). At a later time, you may also provide the Firm with other information you 132 advisor, or home inspector. 125 SUBAGENCY 146 consider to be confidential. 133 This disclosure is INFORMATION: required by section 452.135 of theagreement, Wisconsin engage statutes other and isfirms for information only. to It isassist a plain 126 firm may, with your authorization in the agency (subagent firms) yourlanguage firm by 147 Your CONFIDENTIAL ___________________________________________________________________ 134 summary of the duties owed to you under section 452.133 (2) of the Wisconsin statutes. 127 brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put 148 providing ______________________________________________________________________________________________. 128 own interests aheadNOTICE of your TO interests. A subagent firmmay will its not, unless required by Firm law, provide or opinions 149 NON-CONFIDENTIAL INFORMATION (The following be disclosed by the andany itsadvice agents):_________ 135 their ■ CONFIDENTIALITY The Firm and keep confidential information given to to This anparties information to aCLIENTS: seller reminding the agents sellerwill that the agent can provide answers to 129 other if doing so section is contrary to your interests. 150 is ______________________________________________________________________________________________. 136 the Firm or its agents in confidence, or any information obtained by the Firm and its agents that a reasonable person

questions services but the cannot provide legaldisclosed advice,bytax or information about 137 PLEASE would about want tobrokerage be kept unless information must lawadvice, or you authorize the Firm to REVIEW THISconfidential, INFORMATION CAREFULLY. AnPRESENTATION agentbecan answer your questions about brokerage 151 COOPERATION, ACCESS TO PROPERTY OR OFFER The parties agree that the Firm and its a 130 home inspection. If a seller has questions related to those topics, the seller should contact the 138 services, disclose particular information. The Firm and agentsorshall continue to keep theinspection, informationcontact confidential after the Firm 131 but if you need legal advice, tax its advice, a professional home an attorney, tax 152 agents will work and cooperate with other firms and agents in marketing the Property, including firms acting as seller’s attorney, tax advisor, or a home inspector. Lines 133-134 explain that this agency disclosure 139 advisor, is no longer providing brokerage services to you. 132 or home inspector. subagents firms engaged by the Firm - see lines 125-129) and firms representing buyers. Cooperation includes 140 The following information is required to be disclosed by law: is 153 required by (other law.

This disclosure is required byassection ofpurposes the Wisconsin statutes and isstatutes for information only. It from is a plain providing access to the Property for 452.135 showing andofpresenting offers and other proposals theselanguage firms to 1) Material Adverse Facts, defined in section 452.01 (5g) the Wisconsin (see lines 195-198). 2) Any facts known by the Firm and its agents that contradict any information included in a written inspection report on to attend showings, andestate the specificis terms of offers which should not be submitted to Seller: _____________________ the property or real the subject of the transaction. ■ CONFIDENTIALITY NOTICEthat TO CLIENTS: The Firm and its agents will keep confidential any information given to ______________________________________________________________________________________________. To ensure that the Firm and its agents are aware of what specific youitsconsider confidential, you may list the Firm or its agents in confidence, or any information obtained by information the Firm and agents that a reasonable person CAUTION: Limiting the(see Firm's cooperation with other firmsyou maymay reduce the marketability of theother Property. that information below lines 147-148). At a later time, also provide the Firm with information you would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to consider to be confidential. EXCLUSIONS Allinformation. persons who interest in the Property who the are information Protected Buyers underafter a prior disclose particular Themay Firmacquire and itsanagents shall continue to keep confidential thelisting Firm CONFIDENTIAL INFORMATION: ___________________________________________________________________ iscontract no longer services areproviding excluded brokerage from this Listing to to theyou. extent of the prior firm's legal rights, unless otherwise agreed to in writing. ______________________________________________________________________________________________. The following information is required be disclosed by law: Within seven days of the date of this to Listing, Seller agrees to deliver to the Firm a written list of all such Protected Buyers. NON-CONFIDENTIAL INFORMATION (The may bemay disclosed bytothe Firm and its agents):_________ 1) Material Adverse as defined section 452.01 (5g) of the Wisconsin statutes (see lines NOTE: If Seller fails Facts, to timely deliver in this list tofollowing the Firm, Seller be liable the Firm for195-198). damages and costs. ______________________________________________________________________________________________. 2) facts known by the____________________________________________________________________________ Firm and its agents that contradict any information included in a written inspection report on TheAny following other buyers 143 the property or real estate that is the subjectfrom of the 164 ____________________________are excluded thistransaction. Listing until ____________________________ [INSERT DATE]. 151 COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION The parties agree that the Firm and its 144 ensure the Firm its agents arefrom aware whatafter specific information consider you maydate, list 165 To These otherthat buyers are noand longer excluded thisofListing the specified dateyou unless, on orconfidential, before the specified 152 agents willeither workbelow and (see cooperate with otherAt firms and agents in marketing Property, including firms actingyou as 145 information lines 147-148). abuyer later time, you alsotoprovide the Firm with other information 166 that Seller has accepted a written offer from the or sold the may Property thethe buyer. 153 subagents (other firms engaged by the Firm see lines 125-129) and firms representing buyers. Cooperation includes 146 consider to be confidential. 154 CONFIDENTIAL providing accessINFORMATION: to the Property for showing purposes and presenting offers and other proposals from these firms to 147 ___________________________________________________________________ 155 Seller. Note any firms with whom the Firm shall not cooperate, any firms or agents or buyers who shall not be allowed 148 ______________________________________________________________________________________________. 156 NON-CONFIDENTIAL to attend showings, andINFORMATION the specific terms of offers whichmay should be submitted Seller: _____________________ 149 (The following be not disclosed by thetoFirm and its agents):_________ 157 ______________________________________________________________________________________________. ______________________________________________________________________________________________. 150 158 CAUTION: Limiting the Firm's cooperation with other firms may reduce the marketability of the Property. 151 TO PROPERTY OR OFFERinPRESENTATION TheProtected parties agree thatunder the facts Firm its if a Confidentiality survives the who transaction. have to disclose material adverse even 159 COOPERATION, EXCLUSIONS AllACCESS persons may acquireLicensees an interest the Property who are Buyers a priorand listing 152 work andkeep cooperate with other firms and agents inalso marketing the unless Property, including firmsto acting as is party wouldwill prefer to them confidential. The seller has the opportunity toagreed indicate if there 160 agents contract are excluded from this Listing to the extent of the prior firm's legal rights, otherwise in writing. 153 subagents (other firms engaged by the Firm see lines 125-129) and firms representing buyers. Cooperation includes information that is not confidential or information that should be kept confidential. 161 Within seven days of the date of this Listing, Seller agrees to deliver to the Firm a written list of all such Protected Buyers. 154 accessfails to the Property for showing andSeller presenting other proposals from these firms to 162 providing NOTE: If Seller to timely deliver this list purposes to the Firm, may beoffers liableand to the Firm for damages and costs. 155 Note any firms with ____________________________________________________________________________ whom the Firm shall not cooperate, any firms or agents or buyers who shall not be allowed 163 Seller. The following other buyers 156 attend showings, and the specific terms of offers should not____________________________ be submitted to Seller: _____________________ 164 to ____________________________are excluded fromwhich this Listing until [INSERT DATE]. 50 157 165 ______________________________________________________________________________________________. These other buyers are no longer excluded from this Listing after the specified date unless, on or before the specified date, 158 Limiting the Firm's cooperation otherorfirms reduce to thethe marketability of the Property. 166 CAUTION: Seller has either accepted a written offer from with the buyer sold may the Property buyer. 159 EXCLUSIONS All persons who may acquire an interest in the Property who are Protected Buyers under a prior listing 133 154 141 142 156 143 135 157 144 136 158 145 137 146 159 138 147 139 160 148 140 161 149 141 162 150 142 163

Lines 135-150 Confidentiality 134 of the duties to you under section (2) of theany Wisconsin 155 summary Seller. Note any firmsowed with whom the Firm shall452.133 not cooperate, firms or statutes. agents or buyers who shall not be allowed

136 Firm orthat its agents in and confidence, or any information obtained the Firm and agents that a reasonable person 144 the To ensure the Firm its agents are aware of what specificbyinformation youitsconsider confidential, you may list 137 would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to 145 that information below (see lines 147-148). At a later time, you may also provide the Firm with other information you 138 disclose particular information. The Firm and its agents shall continue to keep the information confidential after the Firm 146 consider to be confidential. Agency Agreements - 3 139 no longer providing brokerage services to you. 147 is CONFIDENTIAL INFORMATION: ___________________________________________________________________ Page 4 of 6, WB-1 140 The following information is required to be disclosed by law: 148 ______________________________________________________________________________________________. 167 DEFINITIONS 141 Material Adverse Facts, as defined in section 452.01 (5g) of the 149 1) NON-CONFIDENTIAL INFORMATION (The following may be Wisconsin disclosed statutes by the (see Firmlines and195-198). its agents):_________ 142 2) Any facts known by the Firm and its agents that contradict any information included in a written inspection report on 150 ______________________________________________________________________________________________. 168 ■151-158 ADVERSE Cooperation, FACT: An "AdverseAccess Fact" means of the following: Lines to any Property or Offer Presentation 143 the property or real estate that is the subject of the transaction. 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 144 ensure that the ACCESS Firm and TO its agents are aware OFFER of what specific informationThe youparties consider confidential, you may 151 To COOPERATION, PROPERTY agree that the Firm and list its 170 1) Significantly and adversely affecting theOR value of the PRESENTATION Property; 145 that information below (see lines 147-148). At a later time, you may also provide the Firm with other information you 152 agents will work and cooperate with other firms of and agents in marketing the Property, including firms acting as 171 2) Significantly reducing the structural integrity improvements to real estate; or 146 to (other be confidential. 153 consider subagents firms engagedhealth by therisk Firm - see lines of125-129) and firms representing buyers. Cooperation includes 172 3) Presenting a significant to occupants the Property. 147 CONFIDENTIAL INFORMATION: ___________________________________________________________________ 154 (b) providing access that to the Propertythat for and presenting offers anddoes othernotproposals these 173 Information indicates ashowing party topurposes a transaction is not able to or intend tofrom meet his firms or herto 148 ______________________________________________________________________________________________. 155 Seller. Note anyunder firms awith whomorthe Firm shallmade not cooperate, or agents or buyers who shall not be allowed 174 obligations contract agreement concerningany the firms transaction. 149 following be disclosed by the Firm its agents):_________ 156 ■NON-CONFIDENTIAL toDEADLINES attend showings, andINFORMATION the specific terms(The ofas offers whichmay bean submitted Seller:and _____________________ 175 – DAYS: Deadlines expressed a number ofshould "days"not from event aretocalculated by excluding the day the 150 ______________________________________________________________________________________________. 157 event ______________________________________________________________________________________________. 176 occurred and by counting subsequent calendar days. 158 CAUTION: Limiting the Firm's cooperation with other firms may reduce the marketability of the Property. 151 COOPERATION, ACCESS PROPERTY OR OFFER PRESENTATION The parties theProperty; Firm andthat its 177 ■ DEFECT: “Defect” means aTO condition that would have a significant adverse effect on theagree value that of the 159 EXCLUSIONS All persons who may acquire an interest in the Property who are Protected Buyers under a prior listing The the listing firm can firms work with otherinfirms market The cooperation 178 would significantly impair the health or other safety of future occupants ofmarketing the to Property; or the that ifproperty. not repaired, removed 152seller agentsagrees will workthat and cooperate with and agents the Property, including firms acting or as 160 contract are excluded from this Listing toFirm the -extent of the prior firm's legal unless otherwise agreed inincludes writing. for 179 would significantly shorten adversely affect expected normal life of the premises. includes subagents and buyer’s agents. Cooperation means providing access to theto property 153 replaced subagents (other firms engaged by or the see lines 125-129) and firmsrights, representing buyers. Cooperation 161 seven days the date of this Seller agrees to deliver theoffers Firm aand written listseller of all such Protected Buyers. 154 ■Within providing access toofthe Property forListing, showing purposes presenting other proposals from firms to to showing purposes and offers and proposals totobroker the seller. The has anthese opportunity 180 FIRM: “Firm” means apresenting licensed sole proprietor broker orand a licensed business entity. 162 NOTE: If Seller fails to timely deliver this list to the Firm, Seller may be liable to the Firm for damages and costs. 155cooperation Seller. Note any firmslicensees, with whom the Firm buyers, shall not cooperate, any firms or agents or buyers who shall not be allowed limit with firms, or offers the seller does not want to consider. The 181 ■ FIXTURES: A "Fixture" is an item of property which is physically attached to or so closely associated with land ormore 163 following other buyers 156 The to attend showings, and the____________________________________________________________________________ specific terms ofthe offers whichdifficult should not be submitted to Seller: restriction theso seller places theof firm, more it may be to sell the _____________________ property. 182 buildings as to be treated on as part the real estate, without limitation, physically attached[INSERT items notDATE]. easily 164 ______________________________________________________________________________________________. ____________________________are excluded from thisincluding, Listing until ____________________________ 157 183 removable without damage to the premises, items specifically adapted to the premises, and items customarily treated 165 CAUTION: These otherLimiting buyers are longercooperation excluded from Listing after thereduce specified unless, on or the specified date, Lines 159-166 Exclusions 158 theno Firm's withthis other firms may thedate marketability of before the Property. 184 as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and 166 Seller has either accepted a written offer from the buyer or sold the Property to the buyer. 159 windows; EXCLUSIONS persons who may acquire an interest the traverse Propertyrods; who are Protected Buyerscentral under aheating prior listing 185 electricAll lighting fixtures; window shades; curtaininand blinds and shutters; and 186 and attached softeners systems; sump pumps; attached or 160 cooling contractunits are excluded fromequipment; this Listing water to theheaters, extent ofwater the prior firm's and legaltreatment rights, unless otherwise agreed to in writing. 187 coverings; awnings; antennas satellite dishes, audio/visual wall list mounting brackets (but not the 161 fitted Withinfloor seven days of the date ofattached this Listing, Seller and agrees to deliver to the Firm a written of all such Protected Buyers. 188 equipment), garage door openers and installed security vacuum systems 162 audio/visual NOTE: If Seller fails to timely deliver this list to theremote Firm, controls; Seller may be liable to thesystems; Firm for central damages and costs. 189 sprinkler systems and component parts; built-in appliances; ceiling fans; fences; in-ground 163 and The accessories; following otherin-ground buyers ____________________________________________________________________________ 190 containment systems (but not the collars); buildings on permanent foundations and [INSERT docks/piers on 164 pet ____________________________are excluded fromstorage this Listing until ____________________________ DATE]. 191 165 permanent These otherfoundations. buyers are no longer excluded from this Listing after the specified date unless, on or before the specified date, 192 Exclude any Fixtures to befrom retained by Seller are to rented (e.g., water softener or other water 166 CAUTION: Seller has either accepted a written offer the buyer or soldorthewhich Property the buyer. 193 treatment systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 12-14 and in A 194 former listing firm’s protected buyers are automatically excluded from a subsequent firm’s listing the offer to purchase.

contract. A seller has seven days to get a new listing firm a copy of the former listing firm’s protected 195 ■ MATERIAL ADVERSE FACT: A "Material Adverse Fact" means an Adverse Fact that a party indicates is of such buyer list. If a seller to deliver that list, the new listing firm ofincurs damagestobecause of that, 196 significance, or thatfails is generally recognized by a and competent licensee as being such significance a reasonable the seller maybe liable for damages. The seller has an opportunity to list the seller’s exclusions 197 party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or and those named exclusions bedecision excluded theoflisting contract until the date on line 164. A seller 198 affects or would affect the will party's about from the terms such a contract or agreement. may the seller has already beenonnegotiating with perhaps a family 199 exclude ■ PERSONbuyers ACTINGthat ON BEHALF OF BUYER: "Person Acting Behalf of Buyer" shallor mean any person joined inmember interest or friend thatbuyer, is considering buying the ofproperty. If anbut exclusion, a former listing firm’s protected 200 with or otherwise acting on behalf buyer, including not limited towhether buyer's immediate family, agents, employees, 201 directors, managers, members, officers, wants owners, partners, and organizers, as well as anyfirm and all corporations, buyer or a seller named exclusion to buy incorporators the property, the current listing does not handle 202transaction partnerships, or limited liability trusts or other entities created or controlled by, affiliated with or owned by buyer, in the earn thecompanies, commission. 203 whole or in part whether created before or after expiration of this Listing.

Lines 205-219 Protected Buyers

204 ■ PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219

■ PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the term of this Listing: 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential terms upon which the buyer might acquire an interest in the Property; or 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the individuals in the Listing; or, b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm or agents with whom the buyer negotiated and the date(s) of any individual showings or other negotiations. A Protected Buyer also includes any Person Acting on Behalf of Buyer joined in interest with or otherwise acting on behalf of a Protected Buyer, who acquires an interest in the Property during the extension of listing period as noted on lines 220-224.

220 EXTENSION OF LISTING The Listing term is extended for a period of one year as to any Protected Buyer. Upon 221 222 223 224

receipt of a written request from Seller or a firm that has listed the Property, the Firm agrees to promptly deliver to Seller a written list of those buyers known by the Firm and its agents to whom the extension period applies. Should this Listing be terminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271).

51

192 CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water 193 treatment systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 12-14 and in 194 the offer to purchase. 195 ■ ESTATE MATERIALSALES ADVERSE FACT: A "Material Adverse Fact" means an Adverse Fact that a party indicates is of such REAL 196 significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable 197 party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or 198 affects or would affect the party's decision about the terms of such a contract or agreement. The idea of protected buyers is there to protect firms from buyers and sellers from starting the 199 ■ PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shall mean any person joined in interest negotiation process during termofof theincluding listing but and putting the transaction together until 200 with buyer, or otherwise actingthe on behalf buyer, not then limitednot to buyer's immediate family, agents, employees, after listing is over to avoid paying a commission. If a buyer negotiates shows interest 201 the directors, managers, members, officers, owners, partners, incorporators and organizers, as well or as any and allserious corporations, in 202 a property during term of the trusts listing contract, listing firm can protectwith that buyerbyfor onein year partnerships, limitedthe liability companies, or other entities the created or controlled by, affiliated or owned buyer, 203the whole or in part whetherremains created before or afteras expiration this Listing. and listing contract in effect to thatofbuyer for one year from the termination of the listing. 204 ■are PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5 There three categories of protected buyers. 205 ■ PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the term Delivers 2061. of this Listing: an offer to purchase, exchange or option to the seller or the firm (automatically protected). 207 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; 2082. 2) Views the the Property withwith Sellerthe or negotiates with Sellerdirectly by communicating Sellerby regarding any potential with Views property seller ordirectly negotiates with thewith seller communicating 209 terms upon which the buyer might acquire an interest in the Property; or the seller regarding any potential terms upon which the buyer might acquire an interest in the 210 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding property (automatically protected). 211 any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents 2123. Attends deliver theanbuyer’s name to Seller, in writing, no later than threeor days after the earlier of expiration or termination individual showing of the property communicates with agents of the(lines firm or 213 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: cooperating firms the potential terms upon which the buyer might acquire an interest in the 214 a) If the Listing effective to certain to individuals who no are later identified in the Listing, by the identification of theof the property (mustisbe on a only list as delivered the seller than three days after the earlier 215 individuals in the Listing; or, expiration or termination of the listing contract). 216 b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm Most will with putwhom all protected buyersand onthe the list. of any individual showings or other negotiations. 217 licensees or agents the buyer negotiated date(s) 218 A Protected Buyer also includes any Person Acting on Behalf of Buyer joined in interest with or otherwise acting on behalf of Lines 220-224 219 a Protected Buyer, who acquires an interest in the Property during the extension of listing period as noted on lines 220-224. 220 EXTENSION OF LISTING The Listing term is extended for a period of one year as to any Protected Buyer. Upon 221 222 223 224

receipt of a written request from Seller or a firm that has listed the Property, the Firm agrees to promptly deliver to Seller a written list of those buyers known by the Firm and its agents to whom the extension period applies. Should this Listing be terminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271).

This section works with the Protected Buyer section and to some extent, the Exclusion section. Protected buyers are protected for one year from the earlier of the date of the expiration or termination of the listing contract. If a protected buyer shows up and wants to purchase the property, the former listing firm handles the transaction for the protected buyer and the seller. When a license is listing a property, the licensee will want to ask the seller if the property was listed before and it if was, ask the seller for the former listing firm’s protected buyer list. If the seller does not have it, the licensee will want to call the former listing firm and ask for the list. Lemmy signed a six-month listing contract with Hawkwind Residential. When the listing expired, Hawkwind gave Lemmy the “protected buyer” list within three days from the expiration of the listing. This list included the names of Ian and Susan Bennet. During the Hawkwind listing, Ian and Susan Bennet had an individual showing of the property with the Hawkwind listing agent. Because the list was delivered no later than three days after the expiration, these buyers are “protected” for one year from the expiration of the Hawkwind listing. Two months pass and Lemmy lists his property with Ace Realty. Lemmy has seven days to provide Hawkwind’s list of “protected buyers” to Ace Realty. The Ace Realty agent asks Lemmy if Hawkwind gave him a list. Lemmy tells the Ace Realty agent that he was given a list, but has since lost it. Ace Realty contacts Hawkwind and requests the list. Hawkwind immediately faxes the list over. One month into the Ace Realty listing term, Ian and Susan contact the Ace listing agent. The Ace agent refers Ian and Susan Bennet back to Hawkwind. Ian and Susan contact Hawkwind to write an offer on Lemmy’s. If all goes well, Hawkwind earns the commission and will be paid at closing.

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Agency Agreements - 3 Page 4 of 6, WB-1

167 DEFINITIONS Lines 168-174 Adverse Fact

168 ■ ADVERSE FACT: An "Adverse Fact" means any of the following: 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: Page 4 of 6, WB-1 170 1) Significantly and adversely affecting the value of the Property; 167 171 DEFINITIONS 2) Significantly reducing the structural integrity of improvements to real estate; or 172 3) Presenting a significant health risk to occupants of the Property. 168 ■ ADVERSE FACT: An "Adverse Fact" means any of the following: 173 (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: Page 4 of 6, WB-1 174 obligations under a contract or agreement made concerning the transaction. 170 1) Significantly and adversely affecting the value of the Property; 175 ■ DEADLINES – DAYS: Deadlines expressed as a number of "days" from an event are calculated by excluding thetransaction. day the 167 171 DEFINITIONS 2) Significantly reducing theinstructural integrity improvements real estate; or to all parties in a Adverse facts were discussed Chapter 1 in ofrelation to theto duties owed 176 event occurred and by counting subsequent calendar days. 172 3) Presenting a significant risk to occupants of the Property. Material adverse facts behealth disclosed to all parties in writing. 168 ■ ADVERSE FACT: Anmust "Adverse Fact" means any of the following: 173 Information that means indicates that a party to a transaction is not adverse able to or does meet his or that her 177 (b) ■ DEFECT: “Defect” a condition that would have a significant effect onnot the intend value ofto the Property; 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: Page 4 of 6, WB-1 Lines 175-176 Deadline -theDays 174 obligations under a contract or agreement made concerning theoftransaction. 178 would significantly impair health or safety of future occupants the Property; or that if not repaired, removed or 170 1) Significantly and adversely affecting the value of the Property; 179 ■ replaced would–significantly shortenexpressed or adversely theofexpected normal life ofare the premises. 167 DEFINITIONS 175 DAYS: Deadlines as aaffect number "days" from an event the Page the 4 of 6,day WB-1 171 DEADLINES 2) Significantly reducing the structural integrity of improvements to real estate; orcalculated by excluding 176 event occurred and by counting subsequent calendar days. 180 ■ FIRM: “Firm” means a licensed sole proprietor broker or a licensed broker business entity. 172 3) Presenting a significant health risk to occupants of the Property. 168 ADVERSE FACT: An "Adverse Fact" means any of the following: 167 ■DEFINITIONS 173 Information that indicates that party torecognized awhich transaction iscompetent notattached able licensee to to or does not meet his land or that her 177 ■ DEFECT: means aancondition that would significant adverse effect ondoing the intend value the Property; 181 (b) FIXTURES: Adays, "Fixture" isthe item property isaphysically or so closely associated with 169 (a) A condition or occurrence that isaof generally by acontract as any ofofto the following: If 174 a deadline is “Defect” in all days count. Ifofhave athe listing expires on June 1, the listing firmor must 168 ■ ADVERSE FACT: An "Adverse Fact" means any following: obligations under a contract or agreement made concerning the transaction. 178 impair theas health or the safety futureofincluding, occupants of thelimitation, Property; physically or that if not repaired, removed or 182 would buildings so as to be treated partaffecting of real without attached items not easily 170 1)significantly Significantly and adversely theofestate, value the Property; deliver theA condition list of protected buyers to theitems seller before midnight on June 4. 169 or occurrence thatstructural isorgenerally by"days" aadapted competent licensee as doing the following: 179 replaced would shorten adversely theofexpected normal life of the premises. 183 (a) removable without damage tothe the premises, specifically to premises, and any items customarily treated 171 2) Significantly reducing integrity of improvements to real estate; or ■ DEADLINES –significantly DAYS: Deadlines expressed asrecognized aaffect number from anthe event are calculated byofexcluding the day the 175 170 1) Significantly adversely affecting value ofbulbs; the Property; 184 fixtures, including, not subsequent limited to, all: garden plants; shrubsbusiness and trees; screen and storm doors and 172 as 3)occurred Presenting aand significant health risk tothe occupants Property. event and by counting calendar days. Lines Defect 176 180 ■177-179 FIRM: “Firm” means abut licensed sole proprietor broker orofathe licensed broker entity. 171 2) Significantly reducing thethat structural integrity of improvements toable real estate; orandnotshutters; 185 windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds central heating 173 (b) Information that indicates a party to a transaction is not to or does meet his land or and her 177 “Defect” means that would haveis significant adverse to effect the intend value ofto the Property; that 181 ■ DEFECT: FIXTURES: A "Fixture" is aancondition item ofrisk property which attached or soonclosely associated with or 172 3) Presenting a significant health occupants ofaphysically the Property. 186 cooling units andunder attached equipment; watertoheaters, water softeners and treatment systems; sump pumps; attached or 174 obligations a contract or agreement made concerning the transaction. 178 significantly impair theas health or safety future occupants of the Property; or that ifintend not repaired, removed or 182 would buildings so as tothat be treated part of the realtoofestate, including, without limitation, physically attached items notoreasily 173 (b) Information indicates that a party a transaction is not able to or does not to meet his her 187 floor coverings; awnings; attached antennas and satellite dishes, audio/visual wall mounting (but not the 175 fitted ■ DEADLINES –significantly DAYS: as aaffect number "days" anthe event by brackets excluding the day the 179 replaced would shorten or adversely theofexpected normal lifepremises, ofare thecalculated premises. 183 removable without damage to theorexpressed premises, items specifically adapted to and items customarily treated 174 obligations under aDeadlines contract agreement made concerning thefrom transaction. 188 audio/visual equipment), garage door openers and remote controls; installed security systems; central vacuum systems 176 event occurred and by counting subsequent calendar days. 184 as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and 180 ■ FIRM: “Firm” –means a Deadlines licensed sole proprietor or of a licensed broker business entity. 175 DEADLINES DAYS: expressed asbe abroker number "days" an event are calculated by excluding day the 189 ■ and accessories; in-ground sprinkler systems and component parts;from built-in appliances; ceiling fans; fences;the in-ground Defects are defined here. The seller will asked to comment on defects when the fills out the 185 windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; heating 177 ■ DEFECT: “Defect” means a condition that would have a significant adverse effect the value ofcentral theseller Property; that 181 ■ FIXTURES: A "Fixture" is an item of property which is physically attached to or so closely associated with landand or 176 occurred andsystems by counting calendarstorage days. buildings on permanent on 190 event pet containment (butsubsequent not the collars); foundations and docks/piers on 186 cooling units and attached equipment; water heaters, water softeners and treatment systems; sump pumps; attached seller’s real estate condition report. Disclosure is covered in Chapter 4. Defects are discussed again as 178 would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or 182 sofoundations. as to be means treated aascondition part of the estate, including, without limitation, physically attached not easily 191 buildings permanent 177 ■ DEFECT: “Defect” thatreal would have a expected significant adverse effect on the value of theitems Property; that 187 fitted floor coverings; awnings; attached antennas and satellite dishes, audio/visual wall mounting brackets (but not the 179 replaced would significantly shorten or adversely affect the normal life of the premises. they relate to the offer to Fixtures purchase between the buyer and the seller in Chapter 10. 183 removable without damage the premises, items specifically to Property; the premises, andif items customarily treated 192 CAUTION: Exclude any to or be retained by Seller or adapted which are rented (e.g., water softener or other water 178 would significantly impair theto health safety of future occupants of the orsystems; that not repaired, removed or 188 audio/visual equipment), garage door openers and remote controls; installed security central vacuum systems 180 ■ FIRM: “Firm” means a licensed sole proprietor broker or a licensed broker business entity. 184 as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and 193 treatment systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 12-14 and in Line 180 Firm 179 replaced would significantly shorten or adversely affect the expected normal life of the premises. 189 and accessories; in-ground sprinkler systems and component built-in ceiling fans;central fences; in-ground 185 windows; electric lighting fixtures; window shades; curtain andparts; traverse rods;appliances; blinds and shutters; heating and 194 ■ theFIXTURES: offer to purchase. 181 A "Fixture" is an item of property which is physically attached to or so closely associated with land or 190 pet containment systems (but not collars); storage buildings on permanent foundations and docks/piers on 180 FIRM: “Firm” means a licensed solethe proprietor broker or a softeners licensed broker businesssystems; entity. 186 ■ cooling units and equipment; heaters, and treatment sump pumps; or 182 sofoundations. as toattached be treated as part ofwater the real estate,water including, without limitation, physically attached itemsattached 195 buildings ■ MATERIAL ADVERSE FACT: A "Material Adverse Fact" means an Adverse Fact that a party indicates isnotofeasily such 191 permanent 181 ■ FIXTURES: A "Fixture" is an item of property which is physically attached to or so closely associated with land or 187 removable fitted floor coverings; awnings; attached antennas and satellite dishes, audio/visual wall mounting brackets (but not the 183 without damage to the premises, items specifically adapted to the premises, and items customarily treated 196listing significance, or that generally recognized by a by competent as being such significance aother reasonable The contract is isbetween the seller and the firm. Awithout firmare can be of a(e.g., licensed brokertoitems as a sole 192 CAUTION: Fixtures toofbe retained Seller orlicensee which rented water softener oracting water 182 buildings soExclude as to be any treated aslimited part the realand estate, including, limitation, physically attached not easily 188 audio/visual equipment), garage door openers remote controls; security systems; central vacuum systems 184 fixtures, including, but not to, all: garden bulbs; plants; shrubs and trees; screen andlines storm doors and 197 as party, thatcould itsystems, affects orhome would affect the party's decision to enter into ainstalled contract or agreement concerning a transaction or proprietor or be a licensed broker business entity. 193 treatment entertainment and satellite dish components, L.P. tanks, etc.) on 12-14 and in 183 removable withoutin-ground damagefixtures; to the window premises, items specifically adapted torods; theappliances; premises, and items customarily treated 189 accessories; sprinkler systems and component parts; built-in ceiling fans;central fences; in-ground 185 and windows; electric lighting shades; curtain and traverse blinds and shutters; heating and 198 affects or would affect the party's decision about the terms of such a contract or agreement. 194 the offer to purchase. 184 as fixtures, including, but equipment; not to,collars); all:heaters, garden bulbs;softeners plants; and shrubs and trees; screen and storm doors and 190 containment systems (butlimited not the storage buildings on permanent foundations and docks/piers on Lines 181-194 Fixtures 186 pet cooling unitsACTING and attached water water treatment systems; sump pumps; attached or 199 ■ PERSON ON BEHALF OF BUYER: "Person Acting on traverse Behalf ofAdverse Buyer" shall mean any person joined in of interest 195 ■ MATERIAL ADVERSE FACT: A "Material Adverse Fact" means an Fact that a party indicates is such 185 windows; electric lighting fixtures; window shades; curtain and rods; blinds and shutters; central heating and 191 permanent foundations. The of “fixtures” was discussed earlier in the listing contract as it related to the included and 187 concept fitted floor coverings; awnings; attached antennas and satellite dishes, audio/visual wall mounting brackets (but not the 200 with buyer, otherwise acting on behalf ofretained buyer, but limited totreatment buyer's immediate family, agents, employees, 196 significance, or that is generally recognized byand aincluding competent licensee as being of such significance tooraother reasonable 186 cooling unitsor and attached equipment; water heaters, water softeners and systems; sump pumps; attached or 192 Exclude any Fixtures to be by Seller ornot which are rented (e.g., water softener water 188 CAUTION: audio/visual equipment), garage door openers remote controls; installed security systems; central vacuum systems excluded items from the seller’s listing contract. 201 directors, officers, owners, partners, incorporators and organizers, as well as any and corporations, 197 thatmanagers, itcoverings; affectsin-ground ormembers, wouldsprinkler affect thesystems party's decision to enter into a built-in contract or agreement concerning aalltransaction or 187 party, fittedaccessories; floor awnings; attached antennas and satellite dishes, audio/visual wall mounting (but not 193 treatment systems, home entertainment and satellite dishparts; components, L.P. tanks, etc.) onbrackets lines 12-14 andthe in 189 and and component appliances; ceiling fans; fences; in-ground 202 partnerships, limited liability companies, trusts or other entities created or controlled by, affiliated with or owned by buyer, in Lines 195-198 Material Adverse Fact 198 affects or would affect the party's decision about the terms of such a contract or agreement. 188 audio/visual equipment), garage door openers and remote controls; installed security systems; central vacuum systems 194 pet the offer to purchase. 190 containment systems (but not the collars); storage buildings on permanent foundations and docks/piers on 203 and wholeaccessories; or in part whether created beforesystems or after expiration of this Listing. 189 in-ground sprinkler and component parts; built-in appliances; ceiling fans; fences; in-ground 199 permanent ACTING ON BEHALF BUYER:Adverse "Person Acting on Behalf Buyer" shall person joinedisin of interest 191 foundations. 195 ■ PERSON MATERIAL ADVERSE FACT: AOF"Material Fact" means anofAdverse Fact mean that aany party indicates such 190 containment systems (buton stated, not collars); storage buildings on foundations and on 204 ■ PROPERTY: Unless means all property included in theof listsuch price asfamily, described onaother lines 2-5 200 pet with buyer, or otherwise acting behalf ofretained buyer, but limited topermanent buyer's immediate agents, employees, 192 CAUTION: Exclude any Fixtures to the be“Property“, by Seller ornot which are rented (e.g., water softener or water significance, or that is otherwise generally recognized by aincluding competent licensee as being significance todocks/piers reasonable 196 191 permanent foundations. 201 directors, officers, owners, partners, incorporators and organizers, as well as of any and corporations, 205 treatment ■ PROTECTED BUYER: Means a buyer whoand personally, through any Person Acting on Behalf Buyer, during the term 193 home entertainment satellite dish components, L.P. tanks, etc.) on linesaall 12-14 and in party, thatmanagers, itsystems, affects ormembers, would affect the party's decision toor enter into a contract or agreement concerning transaction or 197 192 Exclude any to betrusts retained byterms Sellerofor which rented (e.g., waterwith softener or other water 202 partnerships, limited liability companies, or other entities created orare controlled by, affiliated or owned by buyer, in 206 CAUTION: of this Listing: 194 the offer purchase. affects or to would affect theFixtures party's decision about the such a contract or agreement. 198 193 systems, home entertainment satellite dish components, L.P. tanks,onetc.) on lines 12-14 and in 203 whole or in part whether created before or afterand expiration of to thispurchase, Listing. 207 treatment 1) Delivers toADVERSE Seller or theFACT: Firm orAits"Material agents aAdverse written offer exchange orFact option the Property; 195 ■ MATERIAL Fact" means an Adverse that a party indicates is of such PERSON ACTING BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shallrecognize mean any person joined in interest An199 adverse fact that aONparty indicates or a reasonable licensee would as affecting a party’s 194 the tothe purchase. 208 2)offer Views Property with Seller or negotiates directly with Seller byincluded communicating with Seller regarding potential 204 significance, ■ PROPERTY: Unless stated, “Property“, means all in theofimmediate listsuch pricesignificance asfamily, described lines 2-5 196 or that is otherwise generally recognized bythe aincluding competent licensee as being toonaany reasonable 200 with buyer, orentering otherwise acting oncontract behalf of buyer, butproperty not limited to buyer's agents, employees, decision about into a or terms of that contract. 195 ■ MATERIAL ADVERSE Athe "Material Adverse Fact" Factasthat aconcerning party indicates is of such 209 terms which the FACT: buyer might acquire an interestto in themeans Property; orAdverse 197 thatmanagers, itupon affects ormembers, would affect party's decision enter intoany aan contract or agreement transaction or 201 directors, officers, owners, partners, incorporators and organizers, as any and aall corporations, 205 party, ■ PROTECTED BUYER: Means a buyer who personally, or through Person Acting on well Behalf of Buyer, during the term 196 significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable 210 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding Lines 199-203 Person Acting on Behalf of Buyer 198 affects or would affect the party's decision about the terms of such a contract or agreement. 202 partnerships, limited liability companies, trusts or other entities created or controlled by, affiliated with or owned by buyer, in 206 of this Listing: 197 thatpotential it affectsterms or would to enter a contract agreement concerning a transaction or 211 party,any uponaffect whichthe theparty's buyer decision might acquire an into interest in the or Property, but only if the Firm or its agents 203 whole or in part whether created before or after expiration of this Listing. 207 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; 199 ■ PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shall mean any person joined in interest 198 or would affect the party's decision about the terms of such contract 212 affects deliver the buyer’s name to Seller, in writing, no later than threeadays after or theagreement. earlier of expiration or termination (lines 208 2) buyer, Views or theotherwise Property with Seller or negotiates directly with Seller byincluded communicating Seller regarding potential 200 acting onrequirement behalf of buyer, including but not limited to buyer's employees, 204 with ■ PROPERTY: Unless otherwise stated, “Property“, means all property inSeller theimmediate listwith price asfamily, described onany lines 2-5 213 263-271) of the Listing. The in 3), to deliver the buyer’s name to writing, may beagents, fulfilled asin follows: 199 directors, ■ PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalfand of Buyer" shallinas mean any person joined interest 209 terms upon which the buyer might acquire an interest in the Property; or 201 managers, members, officers, owners, partners, incorporators organizers, well as any and all corporations, 205 ■ PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the 214 with buyer, a) If the Listing is effective as of to buyer, certainincluding individuals who are identified in the Listing, family, by the agents, identification ofterm the 200 oran otherwise acting ononly behalf butcreated not limited to buyer's immediate employees, 210 3) Attends individual showing of thetrusts Property or communicates with agents of the Firm or cooperating firms regarding 202 partnerships, limited liability companies, or other entities or controlled by, affiliated with or owned by buyer, in 206 of this Listing: 215 directors,individuals inmembers, the Listing;officers, or, 201 managers, owners, partners, incorporators and organizers, as well as any and all corporations, 211 any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents 203 whole or in part whether created before or after expiration of this Listing. 207 1) Delivers to Seller or the companies, Firmthat or itstheagents aorwritten offer to purchase, orby,option on the Property; 216 b) If a buyer hasliability requested buyer’s identity remain confidential, by delivery ofaffiliated a written notice identifying the firm 202 partnerships, limited trusts other entities created orexchange controlled with or or owned by buyer, in 212 deliverthe the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration termination (lines 204 ■ PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5 208 2) Views Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential 217 or agents with whom the buyer negotiated and the date(s) of any individual showings or other negotiations. 203 whole or in part whether created before or after expiration of this Listing. 213 263-271) of which the that Listing.a The requirement inan 3), tobehalf deliver the buyer’s name to Seller writing, may be fulfilled as follows: This person acting on ofBuyer a buyer alsoinwith be protected buyer. The 209 termsclarifies upon buyer might acquire interest in the Property; or can 218 section A Protected Buyer also the includes any Person Acting on Behalf of joined in interest ora otherwise acting on behalf of idea 205 ■ PROTECTED BUYER: Means astated, buyer who personally, or through any Person Acting on Behalf ofthe Buyer, during the term 214 a) If the Listing is effective only as to certain individuals who are identified in the Listing, by identification of the 204 ■ PROPERTY: Unless otherwise “Property“, means all property included in the list price as described on lines 2-5 behind this is toBuyer, prevent ashowing buyer from creating an LLC some other third partyonbuyer to purchase 210 3) an individual the Property or communicates with agents the Firm oras cooperating firms220-224. regarding 219 of a Protected who acquires anof interest in the Property duringor theusing extension ofoflisting period noted lines 206 thisAttends Listing: 215 in the Listing; or, 205 ■ 1) PROTECTED BUYER: Means aprotected buyer who ortothrough any Person Acting Behalf ofProperty; during term 211property anyindividuals potential terms upon which the buyerapersonally, might acquire an interest indeprive the Property, but only if Buyer, theofFirm orability itsthe agents the to get around the buyer provision andexchange a on listing firm the to earn 207 Delivers to Seller or the Firm or its agents written offer purchase, or option on the 216 b) If a buyer has requested that the inbuyer’s identity remain byone delivery ofasaofto written identifying firm 220 EXTENSION OF LISTING The Listing term is extended forconfidential, a period of year any notice Protected Buyer.theUpon 206 of this Listing: 212 deliver the buyer’s name to Seller, writing, no later than three days after the earlier expiration or termination (lines a rightfully earned commission. 208 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential 217 or aagents with the buyer negotiated and the date(s) of the anyname individual showings or other negotiations. 207 1) Delivers toofSeller orwhom thebuyer Firm orSeller its agents written offer purchase, exchange or option on the Property; 221 receipt of written request fromrequirement or ainaan firm has listed Property, the Firm agrees tobepromptly to 213 263-271) the Listing. The 3), tothat deliver the buyer’s Seller in writing, may fulfilled asdeliver follows: 209 terms upon which the might acquire interest in to the Property; or intointerest 218 A Protected Buyer also includes any Person Acting on Behalf of Buyer joined with or otherwise actingany on behalf of 208 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding potential 222 Seller a written list of those buyers known by the Firm and its agents to whom the extension period applies. Should this 214 a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the 210 3) AttendsBuyer, an individual showing of the Property or communicates with agentsofoflisting the Firm oras cooperating firms220-224. regarding 219 a Protected who acquires an interest in the Property during the extension period noted on lines 209 terms upon which theListing; buyer mightthe an interest in the 223 be terminated by Seller prior toacquire the expiration of the term stated or in the thisProperty, Listing, this be extended for 215 individuals in the or, 53 211 Listing any potential terms upon which buyer might acquire anProperty; interest in but Listing only if shall the Firm or its agents 210 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding 224 Protected Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271). 216 b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm 220 EXTENSION OF LISTING The Listing term is extended for a period of one year as to any Protected Buyer. Upon 212 deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 211 anyorpotential terms upon which the buyer might acquire anbuyer’s interest in the butoronly if negotiations. the fulfilled Firm orasitsfollows: agents 217 with whom the buyer negotiated and thehas date(s) of anyname individual showings other 213 263-271) of the Listing. The 3), tothat deliver the to Property, Seller in writing, may 221 receipt of aagents written request fromrequirement Seller or ain firm listed the Property, the Firm agrees tobepromptly deliver to 212 deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines

196 significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable 197 party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or 198 affects or would affect the party's decision about the terms of such a contract or agreement. 199 ■ PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shall mean any person joined in interest REAL ESTATE SALES 200 with buyer, or otherwise acting on behalf of buyer, including but not limited to buyer's immediate family, agents, employees, 201 directors, managers, members, officers, owners, partners, incorporators and organizers, as well as any and all corporations, 202 partnerships, limited liability companies, trusts or other entities created or controlled by, affiliated with or owned by buyer, in Line 203 204 wholeProperty or in part whether created before or after expiration of this Listing. 204 ■ PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5 205 ■ PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the term Property defines what exactly the seller is offering for sale. 206 of this Listing: Lines Protected Buyer, Linesa 220-224 of Listing 207 205-291 1) Delivers to Seller or the Firm or its agents written offer Extension to purchase, exchange or option on the Property; 208 2) Views the Property with Seller or negotiates directly with Seller by communicating Seller regarding Section any potential The definition of Protected Buyer was addressed earlier in the context ofwith the Exclusion and in 209 terms upon which the buyer might acquire an interest in the Property; or conjunction with the Extension of Listing Section. 210 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding Line Occupancy 211 225-227 any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its5 agents Page of 6, WB-1 212 deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 225 OCCUPANCY Unless otherwise provided, Seller agrees to give the buyer occupancy of the Property at time of closing 213 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: 226 and to Property in broom swept condition and free of are all debris andin personal property for personal 214 a) have If the the Listing is effective only as to certain individuals who identified the Listing, by the except identification of the 227 propertyindividuals belongingintothe current tenants, sold to the buyer or left with the buyer's consent. 215 Listing; or, 216 b)is If ato buyer hasoccupancy requested that to the buyer’s identity confidential, by delivery of closing, a written noticeshall identifying firm The 228 seller LEASED PROPERTY If Property is currently leasedatremain and lease(s) beyond Seller assignthe Seller's The give the buyer the time will of extend closing unless otherwise agreed Page 5 of 6,to. WB-1 217 or agents with whom the buyer negotiated and the date(s) of any individual showings or other negotiations. 229 rights under the lease(s) andthe transfer all security deposits and prepaid rents (subject to agreedand uponaprorations) thereunder seller also agrees to have property in broom swept condition. A buyer seller can agree 225 AOCCUPANCY Unless otherwise Seller toofgive thejoined buyer Property at time oftenants. closing 218 also Seller includes anyprovided, Person Acting onagrees Behalf Buyer inoccupancy interest withoforthe otherwise acting onbybehalf of to 230 or to Protected buyer at Buyer closing. acknowledges that Seller remains liable under the lease(s) unless released prepost-closing occupancy in the terms of their offer. 219 Protected who acquires an interest incondition the Property extension of listing period as noted on lines for 220-224. 226 to haveBuyer, the Property inconsider broom swept andduring free the of all debris and personal property except personal 231 aand CAUTION: Seller should obtaining an indemnification agreement from buyer for liabilities under the Lines 228-232 Leased Property 227 property belonging to current tenants, sold to the buyer or left with the buyer's consent. 232 lease(s) unlessOFreleased by The tenants. 220 EXTENSION LISTING Listing term is extended for a period of one year as to any Protected Buyer. Upon 228 LEASED IfOFFENDER Property is currently leased and lease(s) willProperty, extend beyond closing, Seller shall assign Page 5 ofSeller's 6, WB-1 233 receipt NOTICE REGISTRY You obtain information the sex registry and 221 of ABOUT aPROPERTY written SEX request from Seller or a firm that hasmay listed the theabout Firm agrees tooffender promptly deliver to 229 rights under the list lease(s) and transfer all security and prepaid (subject toofagreed upon prorations) thereunder 222 a written ofwith those buyers known thedeposits Firm and itsWisconsin agents tobuyer whom the extension applies. Should thisat 234 Seller persons registered the registry by bycontacting the Department Corrections onatthe Internet 225 OCCUPANCY Unless otherwise provided, Seller agrees to give therents occupancy of theperiod Property time of closing 230 to buyer closing. by Seller acknowledges that Seller remains liable under lease(s) unlessshall released by tenants. 223 Listing be atterminated prior to at the(608)240-5830. expiration of the term stated in this the Listing, this Listing be extended for 235 or Seller byintelephone 226 http://www.doc.wi.gov and to have the Property broom swept condition and free of all debris and personal property except for personal 231 Protected CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the 224 Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271). 236 property REAL ESTATE CONDITION REPORT thebuyer's real estate condition report provided by the Firm 227 belonging to current tenants, soldSeller to theagrees buyer to or complete left with the consent. 232 lease(s) unless released by tenants. Page 5 of 6, WB-1 237 the bestPROPERTY of Seller's knowledge. agreesleased to amend reportwill should Seller learnclosing, of any Defect(s) completion 228 to LEASED If PropertySeller is currently andthe lease(s) extend beyond Seller shallafter assign Seller's 233 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and 238 the reportthe but before ofallasecurity buyer's offer to Seller and its agents tothereunder distribute Leases survive thelease(s) sale acceptance of The seller is purchase. tototransfer allauthorizes security deposits and pre-paid rents to 225 OCCUPANCY Unless otherwise provided, Seller agrees give the buyer occupancy ofFirm theupon Property at time of closing 229 of rights under andproperty. transfer deposits and prepaid rents (subject tothe agreed prorations) 234 persons registered with seller the registry by contacting the Wisconsin Department of Corrections on the the Internet at 239 the report to all interested parties and agents inquiring about the Property. Seller acknowledges that Firm and its the buyer at closing. The remains liable under the lease unless released by the tenants. 230 and to buyer at closing. Sellerin acknowledges that Sellerand remains underand thepersonal lease(s) property unless released by personal tenants. 226 to have the Property broom swept condition free ofliable all debris except for 235 http://www.doc.wi.gov or by telephone at (608)240-5830. 240 agents have a duty to disclose all Material Adverse Facts as required by law. 231 property CAUTION: Seller should consider obtaining indemnification from buyer for liabilities under the 227 belonging to current tenants, sold to the an buyer or left with the agreement buyer's consent. Lines 233-235 Notice About the Sex Offender 236 REAL ESTATE CONDITION REPORT Seller agrees toRegistry complete the real estate condition by theofFirm 241 SELLER REPRESENTATIONS REGARDING DEFECTS Seller represents to the Firm report that asprovided of the date this 232 lease(s) unless released by tenants. 228 LEASED PROPERTY If Property is currently leased and lease(s) will extend beyond closing, Seller shall assign Seller's 237 the best of Seller's knowledge. SellerREGISTRY agrees toDefects amend the report should Seller learn ofthe any Defect(s) completion 242 to Listing, Seller no notice or knowledge of anydeposits affecting the Property other those noted onafter theregistry real estate 233 NOTICE ABOUT SEX OFFENDER You and may obtain information about sex offender and 229 rights under thehas lease(s) and transfer all security prepaid rents (subject to than agreed upon prorations) thereunder 238 of the report but before acceptance of a buyer's offer to purchase. Seller authorizes the Firm and its agents to distribute 243 condition report. 234 to persons theacknowledges registry by contacting Wisconsin of Corrections on the by Internet at 230 buyer registered at closing. with Seller that Sellerthe remains liable Department under the lease(s) unless released tenants. 239 the report to IF allSELLER interestedREPRESENTATIONS parties and agents inquiring about the Property. Seller acknowledges thatBE theLIABLE Firm and its 244 ARE INCORRECT ORagreement INCOMPLETE, 235 WARNING: http://www.doc.wi.gov or by consider telephone obtaining at (608)240-5830. 231 CAUTION: Seller should an indemnification from SELLER buyer forMAY liabilities underFOR the 240 haveAND a duty to disclose all Material Adverse Facts as required by law. 245 agents DAMAGES COSTS. 232 unless released by tenants. 236 lease(s) REAL is ESTATE CONDITION REPORT Seller to complete the real estate in condition report provided by the Firm Disclosure covered in Chapter 4 but byagrees including this information listing 241 REPRESENTATIONS DEFECTS Seller represents thethe Firmlisting that the ascontract, of theindate of this 246 SELLER COOPERATION WITHREGARDING MARKETING EFFORTS Seller agrees to tocooperate with Firm thethe Firm's 233 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and 237 to the best of Seller's knowledge. Seller agrees to amend the report should Seller learn of any Defect(s) after completion licensee canSeller provide information to parties who have questions about 242 Listing, has and nothis notice or knowledge of with any Defects affecting the Property other than sex thoseinoffenders. noted on possession the real estate 247 efforts toacceptance provide the all records, documents and other Seller's or 238 marketing of the report but before of aFirm offer tothe purchase. Seller authorizes the Firm and its on agents distribute 234 persons registered with the registry bybuyer's contacting Wisconsin Department ofmaterial Corrections the toInternet at 243 condition report. 248 control which are required in connection with the sale. Seller authorizes the Firm and its agents to do those acts Lines 236-245 Real Estate Condition Report and Defects 239 http://www.doc.wi.gov the report to all interested andatagents inquiring about the Property. Seller acknowledges that the Firm and its 235 or byparties telephone (608)240-5830. 244 WARNING: IF SELLER INCORRECT ORfully INCOMPLETE, SELLER MAY LIABLE 249 reasonably necessary to REPRESENTATIONS effectall a sale and Adverse SellerARE agrees cooperate these efforts which mayBE include useFOR of a 240 agents have a duty to disclose Material Factstoto as requiredthe by real law.with 236 REAL ESTATE CONDITION REPORT Seller agrees complete estate condition report provided by the Firm 245 DAMAGES AND COSTS. 250 multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly refer all persons 241 SELLER REPRESENTATIONS REGARDING Seller represents tolearn the potential Firm that as of with the date ofSeller this 237 the best of Seller's knowledge. Seller agrees toDEFECTS amend the report should Seller of any Defect(s) after completion 251 making inquiries concerning the Property to the Firm and notify the Firm in writing any buyers 246 to SELLER COOPERATION WITH MARKETING EFFORTS Seller agrees to of cooperate with the Firm inwhom the Firm's 242 Listing, Sellerbut hasbefore no notice or knowledge of any Defects affecting the Property otherthe thanFirm those on thetoreal estate 238 of the report acceptance of a Seller buyer's offer to purchase. Seller authorizes andnoted its agents distribute 252 who view Property with during the term of this Listing. 247 negotiates marketing or efforts and the to provide the Firm with all records, documents and other material in Seller's possession or 243 condition report. 239 the report to all interested parties and agents inquiring about the Property. Seller acknowledges that the Firm and its 253 control OPEN which HOUSEareAND SHOWING RESPONSIBILITIES aware thatthe there is aand potential risk of damage 248 required in connection with the sale.Seller Sellerisauthorizes Firm its agents to injury, do those acts 244 agents WARNING: SELLER REPRESENTATIONS ARE INCORRECT SELLER MAY BE LIABLE FOR 240 have aIFduty to disclose all Material Adverse Facts as requiredOR by INCOMPLETE, law. 249 reasonably to effect attending a sale andanSeller agreesshowing" to cooperate withhouse." these efforts mayresponsibility include use offora 254 and/or theftnecessary involving persons "individual or anfully "open Sellerwhich accepts 245 DAMAGES AND COSTS. 241 SELLERlisting REPRESENTATIONS REGARDING Seller on represents the Firm as of refer the date of this 250 service,toInternet advertising or aDEFECTS Property. Seller shall that promptly allagrees persons 255 multiple preparing the Property minimize the likelihood oflockbox injury, system damage and/or losstoof personal property. Seller to 246 SELLER COOPERATION WITH MARKETING EFFORTS Seller topersonal cooperate with the Firm inwhom theorFirm's 251 making inquiries Property Firm and notify the Firm in from writing of anythan potential buyers with Seller 242 hasconcerning no notice the or knowledge ofthe any Defects affecting the agrees Property other those noted on the real estate 256 Listing, hold theSeller Firm and its agents harmless fortoany losses or liability resulting injury, property damage, theft 252 negotiates or who "individual view Property withFirm Seller during the term of this 247 marketing efforts and the to provide the with all records, documents andcaused other material Seller's possession or 243 257 condition occurring report. during showings" or "open houses" other thanListing. those by the in negligence or intentional 248 control required with ARE the sale. Selleristhat authorizes Firm its to do those acts 244 IFare SELLER REPRESENTATIONS INCORRECT ORindividual INCOMPLETE, SELLER MAY BE LIABLE 258 WARNING: wrongdoing of the Firm orinitsconnection agents. Seller acknowledges showings andagents open houses mayFOR be 253 OPEN which HOUSE AND SHOWING RESPONSIBILITIES Seller aware thatthe there is aand potential risk of injury, damage 249 reasonably by necessary to effect athan saleagents and Seller agrees tothat cooperate fully and with inspectors these efforts which may include use and of a 245 DAMAGES AND COSTS. 259 licensees other attending of the Firm,showing" appraisers may conduct appraisals 254 conducted and/or theft involving persons an "individual or an "open house." Seller accepts responsibility for 250 multiple listing service, Internet advertising or a EFFORTS lockbox system onagrees Property. Seller shallwith promptly referin all persons 260 inspections without being accompanied by agents of the Firm or other licensees, and that buyers or licensees may be 246 SELLER COOPERATION WITH MARKETING Seller to cooperate the Firm the Firm's 255 preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to a Seller disclosure is covered Chapter 4. photograph By the is agreeing towhom complete 251 making inquiries concerning the in Property to the Firm andthis notifyprovision, the Firm in writing ofseller anyunless potential buyers with Seller 261 present at all inspections and testing and may or videotape Property otherwise provided for in 256 marketing hold the Firm and its agents harmless for any losses or liability resulting from personal injury, property damage, or theft 247 efforts and to provide the Firm with all records, documents and other material in Seller's possession or real estate condition report. The with seller isaddendum also the affirmatively stating that the seller does not have any 252 negotiates or who view the Property Seller during term of this Listing. 262 additional provisions at lines 303-308 or in an per lines 309-310. 257 control occurring during or with "openthehouses" other authorizes than those the caused or those intentional 248 which are"individual required inshowings" sale. Seller Firm by andtheits negligence agents to do acts knowledge about defects in connection the property other ones already disclosed in the seller’s estate 253 OPEN HOUSE AND SHOWING RESPONSIBILITIES Seller isthat aware that is efforts a potential risk ofhouses injury,real damage 263 TERMINATION OF Firm LISTING Seller nor agrees the Firmto has the legalfully right tothere unilaterally terminate this Listing absent 258 reasonably wrongdoing of the or itsaNeither agents. Seller acknowledges individual showings and open may 249 necessary to effect sale and Seller cooperate with these which may include use ofbeaa condition report. 259 byinvolving licensees other than agents oforSeller the Firm, that appraisers and inspectors maypromptly conduct appraisals and 254 and/or persons attending an "individual showing" orthat anProperty. "open house." Seller accepts responsibility for 250 multiple listing service, Internet advertising a lockbox system on Seller refer all the persons 264 conducted materialtheft breach of contract by the other party. understands the parties to theshall Listing are Seller and Firm. 260 inspections without being accompanied by agents of the Firm or other licensees, and that buyers or licensees may be 255 preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to 251 making inquiries concerning the Property to the Firm and notify the Firm in writing of any potential buyers with whom Seller 265 Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend the 261 present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in 256 hold the Firm and its agents harmless for any losses or liability resulting from personal injury, property damage, or theft 252 negotiates or who view the Property with Seller during the term of this Listing. 266 commission amount or shorten the term of this Listing, without the written consent of the agent(s)’ supervising broker. Seller 262 additional provisions at lines 303-308 or in an addendum per lines 309-310. 257 occurring during "individual showings" or "open houses" other than those caused by the negligence or intentional 267 and the Firm agree that any termination of this Listing by either party before the date stated on line 312 shall be 253 OPEN HOUSE AND SHOWING RESPONSIBILITIES Seller is aware that there is a potential risk of injury, damage 258 wrongdoing of the itsNeither agents. Seller that individual showings and may bea 268 effective by the Seller onlyorif stated in writing andacknowledges delivered the Firm in accordance withterminate linesopen 280-302 and absent effective 263 TERMINATION OF Firm LISTING Seller nor the Firm hastothe unilaterally thishouses Listing 254 and/or theft involving persons attending an "individual showing" orlegal an right "opentohouse." Seller accepts responsibility for 259 conducted by licensees other thanbyagents of the Firm, thatand appraisers and inspectors may conduct appraisals and 269 by the Firm only if stated in writing the supervising broker delivered to Seller in accordance with lines 280-302. 264 preparing material breach of contract by the other party. Seller understands the parties the Listing are Seller andagrees the Firm. 255 the Property to minimize the likelihood of injury, damagethat and/or loss oftopersonal property. Seller to 54 260 inspections without being accompanied by agentsmay of the Firm or other and that buyers or licenseesparty may be 270 Early termination of the thisfor Listing a breach of licensees, contract, causing terminating to 265 CAUTION: Agents the Firm do not harmless have authority to enter into a resulting mutual agreement to terminate the Listing, amend the 256 hold thefor Firm and its agents any losses orbeliability from personal injury,the property damage, or theft 261 present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in 271 be liableorfor damages. 266 potentially commissionduring amount shorten the term oforthis Listing, withoutother the written consent of the by agent(s)’ supervising or broker. Seller 257 occurring "individual showings" "open houses" than those caused the negligence intentional 262 additional provisions at lines 303-308 or in funds an addendum per lines 309-310. 272 wrongdoing EARNEST If theany holds trust connection withthat theparty transaction, theydate shall stated be by the in the 267 and the FirmMONEY that of thisinacknowledges Listing by either beforeshowings the on line 312Firm shall 258 ofagree the Firm orFirm itstermination agents. Seller individual andretained open houses may be

of report but beforeSeller acceptance of a buyer's purchase.liable Sellerunder authorizes the Firmunless and itsreleased agents to to the buyer at closing. acknowledges that offer Sellerto remains the lease(s) bydistribute tenants. the report to all interested parties and agents inquiring about the Property. Seller acknowledges that the Firm andthe its CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under agents have a duty to disclose all Material Adverse Facts as required by law. lease(s) unless released by tenants. 241 REPRESENTATIONS REGARDING the Firm of the registry date of and this Agency Agreements -3 233 SELLER NOTICE ABOUT SEX OFFENDER REGISTRYDEFECTS You maySeller obtainrepresents informationto about the that sex as offender Page 5real of 6, WB-1 242 Listing, Seller has no notice or knowledge of any Defects affecting the Property other than those noted on the estate 234 persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at 243 report. Unlessorotherwise 225 OCCUPANCY provided, Seller agrees to give the buyer occupancy of the Property at time of closing 235 condition http://www.doc.wi.gov by telephone at (608)240-5830. 244 WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAY BE LIABLE FOR Lines 246-252 Seller Cooperation with Marketing Efforts 226 and to have the Property in broom swept condition andto free of all the debris personal property forby personal 236 REAL ESTATE CONDITION REPORT Seller agrees complete realand estate condition reportexcept provided the Firm 245 DAMAGES AND COSTS. 227 property belonging to current tenants, sold to the buyer or left with the buyer's consent. 237 the best COOPERATION of Seller's knowledge. agrees to amend the report learn of any Defect(s) after 246 to SELLER WITHSeller MARKETING EFFORTS Sellershould agreesSeller to cooperate with the Firm in completion the Firm's 228 LEASED PROPERTY If Property isofcurrently leased lease(s) will extend beyond the closing, assign Seller's 238 of the report but before acceptance a buyer's offer and to purchase. Seller authorizes FirmSeller and itsshall agents to distribute 247 marketing efforts and to provide the Firm withinquiring all records, documents andSeller otheracknowledges material in Seller's or 239 rights the report alllease(s) interested agents about the Property. that thepossession Firm and its 229 undertothe andparties transferand all security deposits and prepaid rents (subject to agreed upon prorations) thereunder 248 control which are required in connection with the sale. Seller authorizes the Firm and its agents to do those acts 240 to agents a duty to disclose all Material Adverse Facts as required law. the lease(s) unless released by tenants. 230 buyerhave at closing. Seller acknowledges that Seller remains liablebyunder 249 reasonably necessary to effect a sale and Seller agrees to cooperate fully with these efforts which may include use of a 231 CAUTION: Seller should consider obtaining an indemnification agreement tofrom for as liabilities 241 SELLER REPRESENTATIONS REGARDING DEFECTS Seller represents the buyer Firm of refer the under date ofthe this 250 multiple listing service, Internet advertising or a lockbox system on Property. Seller shall that promptly all persons 232 lease(s) unless released by tenants. 242 Listing, Seller hasconcerning no notice the or knowledge any Defects affecting the Property those buyers noted on thewhom real estate 251 making inquiries Property toofthe Firm and notify the Firm in writingother of anythan potential with Seller 233 NOTICE report. ABOUT SEXthe OFFENDER REGISTRY You information about the sex offender registry and 243 252 condition negotiates or who view Property with Seller during themay term obtain of this Listing. 244 WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT ORDepartment INCOMPLETE, BE LIABLE FOR 234 persons registered with the registry by contacting theSeller Wisconsin of Corrections on of theinjury, Internet at 253seller OPENagrees HOUSE AND SHOWING RESPONSIBILITIES aware that there aSELLER potentialMAY risk damage The cooperate with the firm and let the isfirm market theisproperty. The seller also agrees 245 http://www.doc.wi.gov DAMAGES ANDtoCOSTS. 235 or by telephone at (608)240-5830. and/ordocuments theft involving as persons attendingfor an the "individual showing"Documents or an "open house." Seller accepts responsibility for to 254 provide necessary transaction. may include a real estate condition 246 SELLER COOPERATION WITH MARKETING EFFORTS Seller agrees to cooperate with the Firm in the Firm's 236 REAL ESTATE CONDITION REPORT Seller agrees to complete theand/or real estate condition report provided by the Firm 255 preparing the Property to minimize the likelihood of injury, damage loss of personal property. Seller agrees report or lead-based paint documents. The seller is permitting the listing firm to put the property toin the 247 marketing efforts to provide the for Firm with all records, documents and personal other material in Seller's possession or 256 to hold Firm and and its knowledge. agents harmless any losses or liability resulting from property damage, theft 237 thethe of Seller's Seller agrees to amend the report should Seller ofinjury, any Defect(s) completion MLS, use abest lockbox, and engage in internet advertising. The seller islearn also agreeing toafter allorpotential 248 control which required inshowings" connection the sale. Seller the Firm and agents torefer do those acts 257 of occurring during "individual or with "open houses" other authorizes than caused theits or distribute intentional 238 the report butare before acceptance of a buyer's offer to purchase. Sellerthose authorizes theby Firm andnegligence its agents to buyers to the firm andFirm tell the firm about anyagrees buyers that that the seller negotiates with ormay shows the 249 reasonably to effect a sale Seller to cooperate fully with these effortsand which include useproperty ofbea 258 the wrongdoing of or its agents. Seller acknowledges individual showings open houses may 239 report tonecessary all the interested parties and and agents inquiring about the Property. Seller acknowledges that the Firm and its to.240 250 multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly refer all persons 259 agents conducted licensees otherallthan agents of theFacts Firm,asthat appraisers and haveby a duty to disclose Material Adverse required by law.and inspectors may conduct appraisals 251 inquiries concerning theand Property to the FirmResponsibilities the inlicensees, writing of any potential buyers with whom Seller 260 making inspections without being accompanied by agents ofand thenotify Firm or Firm other andFirm that that buyers or licensees Lines 253-262 Open House Showing 241 SELLER REPRESENTATIONS REGARDING DEFECTS Seller represents to the as of the date ofmay thisbe 252 view the Property with and Sellermay during the term of Listing. Property unless otherwise provided for in 261 negotiates present at orallwho inspections and testing photograph orthis videotape 242 Listing, Seller has no notice or knowledge of any Defects affecting the Property other than those noted on the real estate 262 provisions lines 303-308 or in an addendum Seller per lines 309-310. 253 additional OPEN HOUSE ANDatSHOWING RESPONSIBILITIES is aware that there is a potential risk of injury, damage 243 condition report. 263 TERMINATION OF LISTING Neither Seller nor the Firm has the legal right tohouse." unilaterally terminate Listing 254 and/or theft involving persons attending an "individual showing" or an "open Seller accepts 244 WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAYthis BEresponsibility LIABLEabsent FORfora 255 preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to 264 DAMAGES material breach contract by the other party. Seller understands that the parties to the Listing are Seller and the Firm. 245 ANDofCOSTS. 256 hold thefor Firm and its do agents harmless for any losses or liability resulting from personal injury, property damage, or theft 265 Agents the Firm not have the authority to enter into a mutual agreement to terminate the Listing, amend the 246 SELLER COOPERATION WITH MARKETING EFFORTS Seller agrees to cooperate with the Firm in the Firm's 257 "individual "open houses" than those caused the negligence intentional 266 occurring commissionduring amount or shortenshowings" the term oforthis Listing, withoutother the written consent of the by agent(s)’ supervising or broker. Seller 247 marketing efforts andFirm to provide the FirmSeller with records, and other in Seller's possession 258 ofagree the or itstermination agents. acknowledges thatparty individual showings and open houses mayorbe 267 wrongdoing and the Firm that any of thisall Listing by documents either before thematerial date stated on line 312 shall 248 control required connection with the sale. authorizes the inspectors Firm andwith its agents to do thoseeffective acts 259 licensees other than in agents ofand thedelivered Firm, Seller thattoappraisers may conduct appraisals and 268 conducted effectivewhich byby theare Seller only ifinstated writing the Firm inand accordance lines 280-302 and 249 reasonably necessary to effect a sale and Seller agrees to cooperate fully with these efforts which may include use of abe 260 without beinginaccompanied agents of broker the Firm ordelivered other licensees, that buyers with or licensees may 269 inspections by the Firm only if stated writing by thebysupervising and to Sellerand in accordance lines 280-302. 250 multiple listing service, Internet advertising or lockbox on of Property. Seller shall promptly referprovided all persons 261 at all inspections and testing maya may photograph or videotape Property unless otherwise for to in 270 present CAUTION: Early termination of this and Listing be system a breach contract, causing the terminating party 251 making inquiries concerning the Property to the Firm and notify the Firm in writing of any potential buyers with whom Seller 262 additional provisions at lines 303-308 or in an addendum per lines 309-310. 271 potentially be liable for damages. 252 negotiates or who view the Property with Seller during the term of this Listing. 263 OF LISTING Neither Seller norlikelihood Firm hasof the legal right to unilaterally thispersonal absent 272 TERMINATION EARNEST MONEY If the holds trust funds inthe connection with the transaction, they shallterminate be retained byListing the Firm in thea The responsible forFirm minimizing the damage, property 253seller OPENisHOUSE AND SHOWING RESPONSIBILITIES Seller is injury, aware that there is aand/or potentialloss risk of of injury, damage 264 material breach of contract bymay therefuse othershowings. party. SellerThe understands thattrust thelicensees partiesShould to thewill Listing are and themoney, Firm. 273 Firm's trust account. The Firm to hold earnest money other funds. the Firm hold the earnest during open houses and individual firmor and its only beSeller responsible in the 254 and/or theft involving persons attending an "individual showing" orwith an Wis. "open house." Seller accepts responsibility forthe 265 Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend 274 the Firm shall hold and disburse earnest money funds in accordance Stat. Ch. 452 and Wis. Admin. Code Ch. REEB case of negligence or intentional wrong doing. A licensee will need topersonal discuss with sellers the need to 255 preparing theamount Property to tominimize the likelihood of injury, damage and/or loss of Sellerbroker. agrees to 266 or shorten the term of this Listing, without the written consent ofmoney the agent(s)’ supervising Seller 275 commission 18.the If theproperty transaction fails close the Seller requests and receives the earnest as property. the total liquidated damages, secure and tips forand preparing the orproperty for open houses and individual showings. This 256 hold the Firm and its agents harmless for any losses liability resulting from personal injury, property damage, or theft 267 agree thatto any termination this Listing either before the theFirm dateforstated on line 312 shall be 276 and then the uponFirm disbursement Seller, the earnestofmoney shall bebypaid first party to reimburse cash advances made by the section also serves to inform the seller that licensees may be conducting individual showings and 257 occurring during "individual or balance, "open houses" other than caused by with the lines negligence intentional 268 by theofSeller only ifshowings" stated writing andother delivered to the Firm accordance and 277 effective Firm on behalf Seller and one half ofinthe but not in excess of those theinagreed commission, shall280-302 be paidorto theeffective Firm as 258 wrongdoing of the Firm or its agents. Seller acknowledges that individual showings and open houses may be open houses. Appraisers and inspections may be conducted without licensees present. Buyers and 269 Firm onlyinifconnection stated in writing by purchase the supervising broker to Seller in accordance lines 280-302. 278 by full the commission with said transaction andand thedelivered balance shall belong to Seller. Thiswith payment to the Firm 259 conducted by licensees other than agents of themay appraisers and inspectors may conduct appraisals and licensees can be present at all AFirm, buyer can take photographs and videos of the property 270 Early termination ofinspections. this Listing bethat a breach of contract, causing the terminating party to 279 CAUTION: shall not terminate this Listing. 260 inspections without being accompanied by agents of the Firm or other licensees, and that buyers or licensees may be 271 potentially be restricts liable for damages. unless the seller this. 261 present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in 272 EARNEST MONEY If the Firmofholds trust funds in connection with the transaction, they shall be retained by the Firm in the Lines 263-271 Termination Listing 262 additional provisions at lines 303-308 or in an addendum per lines 309-310. 273 Firm's trust account. The Firm may refuse to hold earnest money or other trust funds. Should the Firm hold the earnest money, 263 TERMINATION OF LISTING Neither Seller nor the Firm has the legal right to unilaterally terminate this Listing absent a 274 the Firm shall hold and disburse earnest money funds in accordance with Wis. Stat. Ch. 452 and Wis. Admin. Code Ch. REEB 264 of contract the and otherthe party. understands that the the earnest parties tomoney the Listing and the Firm. 275 material 18. If thebreach transaction fails toby close SellerSeller requests and receives as theare totalSeller liquidated damages, 265 Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend thethe 276 then upon disbursement to Seller, the earnest money shall be paid first to reimburse the Firm for cash advances made by 266 commission amount or shorten the term of this Listing, without the written consent of the agent(s)’ supervising broker. Seller 277 Firm on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to the Firm as 267 the Firm agree that anywith termination of this Listing byand either party before the date statedThis on payment line 312 to shall 278 and full commission in connection said purchase transaction the balance shall belong to Seller. the be Firm 268 by the Seller only if stated in writing and delivered to the Firm in accordance with lines 280-302 and effective 279 effective shall not terminate this Listing. 269 by the Firm only if stated in writing by the supervising broker and delivered to Seller in accordance with lines 280-302. 270 CAUTION: Early termination of this Listing may be a breach of contract, causing the terminating party to 271 potentially be liable for damages. 272 EARNEST MONEY If the Firm holds trust funds in connection with the transaction, they shall be retained by the Firm in the The seller and the firm, not the firm’s licensees, are the parties to the listing contract. Licensees cannot 273 Firm's trust account. The Firm may refuse to hold earnest money or other trust funds. Should the Firm hold the earnest money, shorten the term, terminate, or amend the commission amount without the written consent of the 274 the Firm shall hold and disburse earnest money funds in accordance with Wis. Stat. Ch. 452 and Wis. Admin. Code Ch. REEB supervising broker. Termination must be in writing and delivered according to the terms of the listing 275 18. If the transaction fails to close and the Seller requests and receives the earnest money as the total liquidated damages, contract. Early termination of the listingmoney contract may 276 then upon disbursement to Seller, the earnest shall be paidbe firstatobreach reimburseof thecontract. Firm for cash advances made by the 277 Firm on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to the Firm as 278 full commission in connection with said purchase transaction and the balance shall belong to Seller. This payment to the Firm 279 shall not terminate this Listing. 238 230 239 231 240 232

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264 material breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the Firm. 265 Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend the 266 commission amount or shorten the term of this Listing, without the written consent of the agent(s)’ supervising broker. Seller 267 andESTATE the Firm SALES agree that any termination of this Listing by either party before the date stated on line 312 shall be REAL 268 effective by the Seller only if stated in writing and delivered to the Firm in accordance with lines 280-302 and effective 269 by the Firm only if stated in writing by the supervising broker and delivered to Seller in accordance with lines 280-302. 270 CAUTION: Early termination of this Listing may be a breach of contract, causing the terminating party to Lines 272-279be Earnest 271 potentially liable forMoney damages. 272 EARNEST MONEY If the Firm holds trust funds in connection with the transaction, they shall be retained by the Firm in the 273 274 275 276 277 278 279

Firm's trust account. The Firm may refuse to hold earnest money or other trust funds. Should the Firm hold the earnest money, the Firm shall hold and disburse earnest money funds in accordance with Wis. Stat. Ch. 452 and Wis. Admin. Code Ch. REEB 18. If the transaction fails to close and the Seller requests and receives the earnest money as the total liquidated damages, then upon disbursement to Seller, the earnest money shall be paid first to reimburse the Firm for cash advances made by the Firm on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to the Firm as full commission in connection with said purchase transaction and the balance shall belong to Seller. This payment to the Firm shall not terminate this Listing.

If the firm holds earnest money, the firm holds it in the listing firm’s trust account. A firm does not have to hold earnest money. If the transaction fails to close and the seller keeps the earnest money as liquidated damages, the firm is entitled first to reimbursement for expenses and then one-half of the balance. Disbursement of earnest money in a failed transaction is covered in Chapter 10. LinesProperty 280-302 Address: Delivery _________________________________________________________________________________________________________ Page 6 of 6, WB-1 280 DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Listing, delivery of

documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 283-302. (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 285 or 286. Seller's recipient for delivery (optional): _______________________________________________________________ Firm’s recipient for delivery (optional): _______________________________________________________________ (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: (________) ______________________________ Firm: (_________) __________________________________ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 285 or 286, for delivery to the Party's delivery address at line 295 or 296. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 285 or 286, for delivery to the Party's delivery address at line 295 or 296. Delivery address for Seller: ________________________________________________________________________ Delivery address for Firm: _________________________________________________________________________ (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 301 or 302. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically as required by federal law. E-Mail address for Seller: _________________________________________________________________________ E-Mail address for Firm: __________________________________________________________________________ 303 ADDITIONAL PROVISIONS ______________________________________________________________________ Parties must deliver documents and notices according to the terms of the listing contract. Items 304 as _______________________________________________________________________________________________ such a protected buyer list, a notice of termination, and proposed amendments must be delivered 305 _______________________________________________________________________________________________ according to the terms of the listing contract. The seller and the listing firm must select at least one 306 _______________________________________________________________________________________________ form of delivery and can select all five if that suits the parties to the listing contract. 307 _______________________________________________________________________________________________ 3081. _______________________________________________________________________________________________ Personal Delivery delivery means putting a document in the party’s possession or in the possession of 309Personal ADDENDA The attached addenda __________________________________________________________________ 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302

recipient for delivery. Personal delivery is the default method of delivery. It is included 310a ______________________________________________________________________is/are made partalways of this Listing .

unless the parties strike it out. Delivery occurs when the document is in the party’s possession. A party can name a recipient for delivery such as an attorney or an office manager. Recipients for 312 to the earlier of midnight of the ______________ day of ____________________________, ________, or the delivery should be listed on lines 285-286. 313 conveyance of the entire Property. 311 TERM OF THE CONTRACT From the _________________ day of ___________________________, _________, up

2. Fax Delivery

314 BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS LISTING CONTRACT AND include fax HAS as aREAD formALL of delivery, the WELL parties the box AND and ANY eachOTHER party DOCUMENTS includes a fax 315ToTHAT HE/SHE 6 PAGES AS AS check ANY ADDENDA number on line 288. Fax delivery occurs when the sender sends the fax, regardless of when it is 316 INCORPORATED INTO THE LISTING.

received.

317 (x)____________________________________ __________________________________________ ____________ 56 318 Seller's Signature ▲ Print Name Here ▲ Date ▲ 319 (x)____________________________________ __________________________________________ ____________

Property Address: _________________________________________________________________________________________________________ Page 6 of 6, WB-1

280 DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Listing, delivery of

Agency Agreements - 3

281 documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at 282 lines 283-302. 283 (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery Commercial 2843. if named at line 285Delivery or 286. include commercial parties check the box and each party includes Page an 6address at 285ToProperty Seller's recipient for deliverydelivery, (optional): the _______________________________________________________________ Address: _________________________________________________________________________________________________________ of 6, WB-1 295-296. Delivery occurs when the delivery service has the document in its possession and 286lines Firm’s recipient for delivery (optional): _______________________________________________________________ 280 OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated number: in this Listing, delivery of 287theDELIVERY (2) Fax: faxbeen transmission of the orto written notice to the following telephone fees have prepaid or document charged an account. 288 Seller: (________) ______________________________ Firm: (_________) __________________________________ 2814. documents andDelivery written notices to a Party shall be effective only when accomplished by one of the methods specified at U.S. 289 lines 283-302. (3) Mail Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a 282 include delivery U.S. Mail as a form ofeither delivery, the parties checkrecipient the box and each party includes 290To(1) commercial service, the Party, to the Party's forthe delivery if named at for line 285 or an 283 Personal Delivery: givingaddressed the document or to written noticeorpersonally to the Party, or Party's recipient delivery Property Address: _________________________________________________________________________________________________________ Page 6 of 6, WB-1 address on lines 295-296. Delivery occurs when the U.S. Mail Service has the document in its 291 if286, for delivery to the 284 named at line 285 or Party's 286. delivery address at line 295 or 296. possession and the fees have been prepaid. 292 (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the 285 Seller's recipient for delivery (optional): _______________________________________________________________ 280 DELIVERY OFParty's DOCUMENTS AND WRITTEN stated this Listing, 293 or to the recipient for delivery if namedNOTICES at line 285Unless or 286,otherwise for delivery to theinParty's delivery delivery address of at 2865. Party, Firm’s recipient for delivery (optional): _______________________________________________________________ Email Delivery 281 documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at 294 line 295 or 296. 287To include (2) Fax:email fax transmission of the written to the following the telephone number: as a form ofdocument deliveryorin the notice listing contract, parties have to check the box 282 295 Delivery address for______________________________ Seller: ________________________________________________________________________ 288 lines Seller:283-302. (________) Firm: (_________) __________________________________ and the seller must provide electronic consent. Electronic consent is consent email for as a form of 283 Personal Delivery: giving thedepositing documentthe or document written notice personally to fees the Party, or or thecharged Party'sto recipient 296 Delivery for Firm: _________________________________________________________________________ 289 (1) (3) address Commercial Delivery: or written notice prepaid to an accountdelivery with a delivery, the use of electronic documents and the use of electronic signatures. The parties need 284 named at line 285 or 286. addressed 297 ifcommercial (5) E-Mail: electronically transmitting the document or written to the Party’s address, if given at 290 delivery service, either to the Party, or to thenotice Party's recipient fore-mail delivery if named at linebelow 285 or 285 delivery (optional): _______________________________________________________________ 298 line 301 or email 302. to Ifforthis is a consumer transaction where property being purchased theprovided sale proceeds are used include addresses on lines 301-302. Electronic consent mustorbe electronically. 291toSeller's 286, for recipient delivery the Party's delivery address at line 295the or 296. 286 Firm’s recipient for delivery (optional): _______________________________________________________________ 299Electronic primarily forconsent personal, family or purposes, each consumer providing e-mail address below has is frequently builtor into signing process if an using digital signing software. 292 (4) U.S. Mail: depositing thehousehold document writtenthe notice postage prepaid in the U.S. Mail, addressed either to first the 287 transmission of for thedelivery document or written notice following telephone number: 300 consented as required by law. 293Electronic Party,(2) or Fax: toelectronically thefaxParty's if named at line 285toorthe 286, for delivery to the Party's delivery address at consent isrecipient required byfederal federal law. 288 (________) ______________________________ Firm: (_________) __________________________________ 301 E-Mail _________________________________________________________________________ 294 Seller: line 295address or 296. for Seller: Lines 303-310 Additional Provisions/Addenda 289 (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a 302 E-Mail address for Firm: __________________________________________________________________________ 295 Delivery address for Seller: ________________________________________________________________________ 290 commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 285 or 296 addressPROVISIONS for Firm: _________________________________________________________________________ 303 Delivery ADDITIONAL ______________________________________________________________________ 291 286, for delivery to the Party's delivery address at line 295 or 296. 297 _______________________________________________________________________________________________ (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at 304 292 line 301 (4) or U.S. Mail: depositing the document or written postage being prepaid in the U.S. addressed either the 298 302. If this is a consumer transaction wherenotice the property purchased or Mail, the sale proceeds aretoused 305 _______________________________________________________________________________________________ 293 Party, or to the Party's recipient for delivery ifpurposes, named at each line 285 or 286, providing for delivery toe-mail the Party's delivery address at 299 primarily for personal, family or household consumer an address below has first 306 _______________________________________________________________________________________________ 294 line 295 or electronically 296. 300 consented as required by federal law. 307 _______________________________________________________________________________________________ 295 Deliveryaddress addressforforSeller: Seller:_________________________________________________________________________ ________________________________________________________________________ 301 308 E-Mail _______________________________________________________________________________________________ 296 Delivery address for Firm: _________________________________________________________________________ 302 E-Mail address for Firm: __________________________________________________________________________ 309 ADDENDA Theelectronically attached addenda __________________________________________________________________ 297 (5) E-Mail: transmitting the document or written notice to the Party’s e-mail address, if given below at 303 ADDITIONAL PROVISIONS ______________________________________________________________________ 298 301 or 302. If this is a consumer transaction where the property being purchased or themade sale part proceeds used 310 line ______________________________________________________________________is/are of thisare Listing . 304 299 _______________________________________________________________________________________________ primarily for personal, family or household purposes, each consumer providing an e-mail address below has first 311 TERM OF THE CONTRACT From the _________________ day of ___________________________, _________, up 305 _______________________________________________________________________________________________ The Provisions are just blank 300Additional consented electronically as lines required by federal law. lines for the firm and the seller to add whatever other 312 to the address earlier of of thenot ______________ of additional ____________________________, or the 306 301 _______________________________________________________________________________________________ E-Mail for midnight Seller: information they need that _________________________________________________________________________ does fit elsewhere.day If the information will not ________, fit in the additional 313 E-Mail conveyance of the entire Property . 307 _______________________________________________________________________________________________ 302 address for Firm: __________________________________________________________________________ provisions, the parties can use an addendum or addenda. To incorporate an addendum or addenda, 308 _______________________________________________________________________________________________ 303 ADDITIONAL PROVISIONS 314parties BY SIGNING ACKNOWLEDGES RECEIPT COPY OF THIS LISTING CONTRACT AND the checkBELOW, the boxSELLER and______________________________________________________________________ identify the addenda madeOFa Apart of the listing contract. 309 ADDENDA TheHAS attached addenda __________________________________________________________________ 315 THAT HE/SHE READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS 304 _______________________________________________________________________________________________ Lines 311-313 Term of the Contract 316 INCORPORATED INTO THE LISTING. 310 ______________________________________________________________________is/are made part of this Listing . 305 _______________________________________________________________________________________________

306 311 _______________________________________________________________________________________________ TERM OF THE CONTRACT From the _________________ day of ___________________________, _________, up 317 _______________________________________________________________________________________________ (x)____________________________________ __________________________________________ ____________ 307 312 to the earlier of ▲ midnight of the ______________ day ____________________________, ________, 318 Seller's Signature PrintofName Here ▲ Dateor▲the 308 _______________________________________________________________________________________________ 313 conveyance of the entire Property. 309 ADDENDA The attached addenda __________________________________________________________________ 319 (x)____________________________________ __________________________________________ ____________ 314 term BY SIGNING COPYends OF THIS CONTRACT AND The of the BELOW, contractSELLER beginsACKNOWLEDGES with the date RECEIPT on line OF 311A and withLISTING date 312 or the 310 ______________________________________________________________________is/are made on part line of this Listing 320 Seller's Signature ▲ Print Name Here ▲ Date ▲ . 315 THAT HE/SHE HAS READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS conveyance of the entire property. This is a special agency contract rather than a general agency 311 TERM OF THE CONTRACT From the _________________ day of ___________________________, _________, up 316 INCORPORATED INTO THE LISTING. contract. The sale of the property terminates__________________________________________ the listing contract even if there is still time left in the term. 321 (x)____________________________________ ____________ 312 to the earlier of midnight of the ______________ day of ____________________________, ________, or the 322 Signature Print Name Here ▲ Date ▲ 317 Seller's (x)____________________________________ __________________________________________ ____________ Lines 314-316 Seller Acknowledgement 313 conveyance of the▲ entire Property. 318 Seller's Signature ▲ Print Name Here ▲ Date ▲ 314 SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS LISTING CONTRACT AND 323 BY (x)____________________________________ __________________________________________ ____________ 315 THAT HE/SHE HAS READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS 324 Seller's Signature ▲ Print Name Here ▲ Date ▲ 319 (x)____________________________________ __________________________________________ ____________ 316 INTO THE LISTING. 320 INCORPORATED Seller's Signature ▲ Print Name Here ▲ Date ▲ 325 Seller Entity Name (if any): ________________________________________________________________________ 317 (x)____________________________________ __________________________________________ ____________ 326 Printshould Name Here 321 serves (x)____________________________________ __________________________________________ ____________ This as a “warning” to a seller that the seller not▲sign this unless the seller has read all 318 Seller's Signature ▲ Print Name Here ▲ Date Seller'sand Signature ▲ any addenda or other documents Print Name incorporated Here ▲ Date ▲ ▲ six322 pages including into the listing contract. 327 (x)_______________________________________________________________________________ ____________ 328 Signature ▲ Print Name & Title Here ► Date ▲ 319 Authorized (x)____________________________________ __________________________________________ ____________ 323 (x)____________________________________ __________________________________________ ____________ 320 Seller's Signature ▲ Print Name Here ▲ Date 324 Seller's Signature ▲ Print Name Here ▲ Date ▲ ▲ 329 321 325 330 322 326

(x)_______________________________________________________________________________ (x)____________________________________ __________________________________________ ____________ ____________ Seller Entity Name (if any): ________________________________________________________________________ Agent Firm ▲ ▲ Print Name Here ▲ Print Name HereFirm Name ▲ Date Seller'sforSignature ▲ Date ▲ ▲ Print Name Here ▲

327 (x)____________________________________ (x)_______________________________________________________________________________ 323 __________________________________________ ____________ 328 Seller's Authorized Signature 324 Signature ▲ ▲ Print Name & Title Here ► Print Name Here ▲ Date ▲ 325 Seller Entity Name (if any): ________________________________________________________________________

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310 ______________________________________________________________________is/are made part of this Listing . 311 TERM OF THE CONTRACT From the _________________ day of ___________________________, _________, up 312 to the earlier of midnight of the ______________ day of ____________________________, ________, or the REAL ESTATE SALES 313 conveyance of the entire Property. 314 BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS LISTING CONTRACT AND 315 THAT HE/SHE HAS READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS Lines 317-330 Signatures 316 INCORPORATED INTO THE LISTING. 317 (x)____________________________________ __________________________________________ ____________ 318 Seller's Signature ▲ Print Name Here ▲ Date ▲ 319 (x)____________________________________ __________________________________________ ____________ 320 Seller's Signature ▲ Print Name Here ▲ Date ▲ 321 (x)____________________________________ __________________________________________ ____________ 322 Seller's Signature ▲ Print Name Here ▲ Date ▲ 323 (x)____________________________________ __________________________________________ ____________ 324 Seller's Signature ▲ Print Name Here ▲ Date ▲ 325 Seller Entity Name (if any): ________________________________________________________________________ 326 Print Name Here ▲ 327 (x)_______________________________________________________________________________ ____________ 328 Authorized Signature ▲ Print Name & Title Here ► Date ▲ 329 (x)_______________________________________________________________________________ ____________ 330 Agent for Firm ▲ Print Name Here ▲ Firm Name ▲ Date ▲

WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT The Condominium Listing Contract is based on the WB-1 Residential Listing Contract. The condominium listing contract contains features unique to the sale of condominiums. The condominium listing contract does not yet include email as a form of delivery. It is expected that the form will be revised in 2017 to include email as a form of delivery. Licensees should review the condominium declaration and other condominium documents to see what will make up the total property being offered for sale. This will usually include the unit, common elements, limited common elements, and a seller should also list monthly assessment payments and other services and amenities that may involve separate charges. Lines 2-9 Property Description Approved by the Wisconsin Department of Regulation and Licensing 10-1-08 (Optional Use Date) 1-1-09 (Mandatory Use Date)

Page 1 of 6, WB-4

WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 1 SELLER GIVES BROKER THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 2 PROPERTY DESCRIPTION: The street address of the Unit is: 3 in the of , County 4 of , Wisconsin, particularly described as Unit: (Building ) 5 of Condominium; Seller's interest in the common 6 elements appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set 7 forth in the declaration and condominium plat (and all amendments to them) creating the Condominium, which 8 altogether constitute the Property. Insert additional description, if any, at lines 309-322 or attach as an addendum per 9 lines 323-328. 10 LIST PRICE: Dollars ($ ). On11linesINCLUDED 4-5, the IN listing inserts unit number identifying thein building in surplus which the LIST firm PRICE: Seller isthe including in the list or price the Property,information, Seller's interests any common 12 isand reservesand of the Condominium allocated to the Property, Fixtures not excluded on lines 16-19, and the following unit located, the name of the condominium. 13 items: Lines 14 5-9 clarifies that in addition to the unit, the property also includes the seller’s interest in. the 15 NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures be subject excluded to by the Sellerrights, or which are rentedobligations and will common elements appurtenant to the Unit, together with to and interests, 16 continue to be owned by the lessor. (See lines 266-277): and limitations as set forth in the declaration and condominium plat (and all amendments to them). 17 18 19 . 20 STORAGE UNIT: A storage unit (is) (is not) STRIKE ONE included in the List Price; Unit number: . 58 LIMITED COMMON ELEMENTS: The limited common elements assigned to the Unit include: 21 22 . See condominium declaration for complete list. 23 PARKING: The parking for the Property is . The parking fee is $ .

2 PROPERTY DESCRIPTION: The street address of the Unit is: 3 in the of , County 4 of , Wisconsin, particularly described as Unit: (Building ) 5 of Condominium; Seller's interest in the common Agency Agreements 6 elements appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set 7 forth in the declaration and condominium plat (and all amendments to them) creating the Condominium, which 8 altogether constitute the Property. Insert additional description, if any, at lines 309-322 or attach as an addendum per 9 lines Approved by 323-328. the Wisconsin Department ofIncluded/Not Regulation and Licensing Included in List Price Lines 11-19 Property 10-1-08 (Optional Date) 1-1-09 (Mandatory Use Date) 10 LIST Use PRICE: Dollars ($ ). Page 1 of 6, WB-4 11 INCLUDED IN LIST PRICE: Seller is including in the list price the Property, Seller's interests in any common surplus WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT - EXCLUSIVE RIGHT SELLand the following 12 and reserves of the Condominium allocated to the Property, Fixtures not excluded on lines TO 16-19, 13 items: 141 . SELLER GIVES BROKER THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 152 NOT INCLUDED IN ofLIST PRICE: CAUTION: Identify Approved by the Wisconsin Department Regulation and Licensing PROPERTY DESCRIPTION: The street address of the Fixtures Unit is: to be excluded by Seller or which are rented and will 163 continue 10-1-08 (Optional Use Date) 1-1-09 by (Mandatory Use Date) to be owned the lessor. (See lines in 266-277): the of , County Page 1 of 6, WB-4 174 of , Wisconsin, particularly described as Unit: (Building ) 185 WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT - EXCLUSIVE RIGHT TO interest SELL in the common of Condominium; Seller's 196 elements appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set. 207 STORAGE UNIT: A storage unit (is) (is not)plat . STRIKE ONE included in the Price; Unit number: in the declaration and (and all amendments to List them) creating the seller Condominium, 1 forth SELLER GIVES BROKER EXCLUSIVE RIGHT TOseller SELL THE PROPERTY ON THE FOLLOWING TERMS: The of fixtures isTHE oncondominium lines A lists personal property the wantswhich to include 218 definition LIMITED COMMON ELEMENTS: The266-277. limited common elements assigned to the Unit include: constitute the Property. Insert additional description, if any, at lines 309-322 or attach as an addendum per 2 altogether PROPERTY DESCRIPTION: The street address the Unitdoes is: 22 inApproved the list price linesof 13-14 and items theofseller not. want to include on linesfor16-19. the See condominium declaration completeItems list. by the Wisconsinon Department Regulation and Licensing 93 lines 323-328. in the ofparking fee is $ , County 23 PARKING: The parking for the Property is . Thewants . 10-1-08 (Optional Use Date) 1-1-09 (Mandatory Use Date) 104 ofdoes seller not want to include are usually fixtures that a seller to remove from the property. LIST PRICE: Dollars ($ ). , Wisconsin, particularly described Unit: (Building ) Page 1 of 6, WB-4 24 ASSOCIATION FEE:PRICE: The association fee for theinProperty is $ as perinterests 115 list IN LIST Seller isinterest including listcommon price the Property, Seller's any common surplus. of INCLUDED Condominium; Seller'sininterest inright the common The priceOF includes the seller’s in the any surplus and reserves of the condominium 25 have a of first RIGHT FIRST REFUSAL: The condominium association (does) (does not) STRIKE WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 126 and reserves of the Condominium allocatedwith the not excluded linesONE 16-19, and the following elements to the together andProperty, subject the rights, interests, obligations and limitations set allocated to the unit and allUnit, fixtures nottoexcluded ontoFixtures lines 16-19. Theon common surplus andasreserves 26 on appurtenant the Property. 137 refusal items: forth in the declaration and condominium plat (and all amendments to them) creating the Condominium, which 27 MARKETING: Seller authorizes and Broker agrees to use reasonable efforts to procure a buyer for the Property. are association property and used to offset expenses or Association duesper already 1418 often . altogether constitute the Property. Insert additional description, if any, at improvements. lines 309-322 attach as an addendum SELLER GIVES THEmarket EXCLUSIVE TO property SELL THE PROPERTY ON13-14 THE or FOLLOWING TERMS: 28 agrees thatBROKER Broker may Seller'sRIGHT personal identified on lines during the term of this and Listing. 1529 Seller NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures tounless be excluded by Seller or which are rented will paid by an owner usually remain with the association the condominium documents declare lines 323-328. PROPERTY DESCRIPTION: The street address of the Unit is: 29 Broker's marketing may 16 to be owned byinclude: the lessor. (See lines 10 3 continue LIST PRICE: Dollars ($ in 266-277): the of , County.). otherwise. 30 17 11 4 INCLUDED IN LIST PRICE: Seller is including in the list priceasthe Property, Seller's interests of , Wisconsin, particularly described Unit: (Building in any common surplus) 31 Broker may advertise the following special financing and incentives offered by Seller: 18 12 5 of and reserves of Unit the Condominium allocated to the Property, Fixtures excluded on Seller's lines 16-19, andin themarketing following Condominium; interest common Line 20 Storage 32 . Sellernot has a duty to cooperate with Broker's 19 13 6 elements items: See appurtenant to regarding the Unit, together with andmarketing subject toagent the rights, interests, obligations and limitations as set. 33 efforts. lines 88-106 Broker's role as and Seller's duty to notify Broker of any potential 20 Approved by the Wisconsin Department of and Regulation Licensing STORAGE UNIT: A storage unitand (is) (is not)plat STRIKE ONE included in the List Price; Unit number: 14 7 forth in the declaration condominium (and all amendments to them) creating the Condominium, which.. 34 buyer known to Seller. Seller agrees that Broker may market other properties during the term of this Listing. 10-1-08 (Optional Use Date) 1-1-09 (Mandatory Use Date) 21 LIMITED COMMON ELEMENTS: The limited common elements assigned to the UnitSeller include: 15 8 NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures to be excluded by or which are rented and will altogether constitute the Property. Insert additional description, if any, at lines 309-322 or attach as an addendum Pagelimited 1 ofper 6, WB-4 35 OCCUPANCY: Unless otherwise provided, Seller agrees to give buyer occupancy ofdeclaration the Unit and any 22 . See unit. condominium for complete list. 16 9 lines continue to be owned by the lessor. (See lines 266-277): A 36 seller uses this line to indicate if the unit includes a storage If the seller is unsure, the seller 323-328. common elements at time of closing and to have the Unit in broom swept condition and free of all debris and personal 23 WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT EXCLUSIVE RIGHT TO SELL PARKING: The parking for the Property is . The parking fee is($$ 17 10 LIST the PRICE: Dollars ).. unit. can check condominium declaration, which should state whether the unit includes a storage 37 property except for personal property belonging to current tenants, sold to buyer or left with buyer's consent. 24 ASSOCIATION FEE:PRICE: The association for theinProperty $ the Property, Seller'sperinterests in any common surplus. 18 11 INCLUDED IN LIST Seller is fee including the list is price 38 COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION: The parties agree that Broker 25 have rightwill of work first . RIGHT OF ofFIRST REFUSAL: The condominium association (does) (does not) 19 ONE 12 and reserves the Condominium allocated to the Property, Fixtures not excluded on lines 16-19, andaas the following 1 SELLER GIVES BROKER THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ONSTRIKE THE FOLLOWING TERMS: Lines 21-22 Limited Common 39 and cooperate with other brokers inElements marketing the Property, including brokers from other firms acting subagents 26 on the Property. 202 refusal 13 STORAGE UNIT: A storage engaged unit (is)street (isbynot) STRIKE ONE in and the List Price;representing Unit number:buyers. Cooperation . items: PROPERTY DESCRIPTION: The address the Unitincluded is: 40 (agents from other companies Broker - of See lines brokers 27 MARKETING: Seller authorizes and agrees toelements use 194-197) reasonable efforts to a buyer for the Property. 213 14 LIMITED COMMON ELEMENTS: TheBroker limited common assigned to theoffers Unitprocure include: . inshowing the of , County 41 includes providing access to the Property for purposes and presenting and otherthe proposals fromListing. these 28 agrees that Broker may market Seller's personal property identified on lines 13-14 during term ofcomplete this 224 Seller 15 . See condominium declaration for list. NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will of , Wisconsin, particularly described as Unit: (Building 42 brokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not be ) 29 marketing may 235 Broker's 16 The parking the isterms The parkingtofee is $ interest in the common . continue toattend be owned byinclude: thefor lessor. (See lines 266-277): of PARKING: Seller's 43 allowed to showings, and theProperty specific of offers which should not be.Condominium; submitted Seller: 30 246 seller 17 ASSOCIATION feethe for the Property is $toseller perobligations The lists any FEE: fixtures outside of unit that the is including in the sale. example, elements appurtenant toThe theassociation Unit, together with and subject the rights, interests, and For limitations as...set the 44 31 advertise the following special financing and incentives offered by Seller: 257 Broker 18 a right 22-21. of first RIGHT OF FIRST REFUSAL: Thean condominium association (does) (does not) those STRIKE ONE forth inmay the declaration and condominium platbrokers (and amendments to them) creating the have Condominium, which 45 unit may include a privacy fence, awning, or aall patio. Athe seller lists items on lines CAUTION: Limiting Broker's cooperation with other may reduce marketability of the Property. 32 . Seller has a duty to cooperate with as Broker's marketing.perThe 268 refusal 19 on the Property. altogether constitute the Property. Insert additional description, if any, at lines 309-322 or attach an addendum 46 EXCLUSIONS: All persons may acquire an marketing interest in agent thethe Property as acommon Protected Buyer underof aany prior listing condominium willwho contain arole complete list of elements. 33 See declaration lines 88-106 regarding Broker's as and Seller's duty to notify Broker potential 279 efforts. 20 MARKETING: Seller authorizes and(isto Broker agrees tothe useprior reasonable efforts to procure a otherwise buyer for the Property. STORAGE UNIT: A from storage unit (is) not) included inlimited the List Price; Unit number: lines 323-328. 47 contract are to excluded this Listing the STRIKE extent ofONE broker's legal rights, unless agreed to in. 34 buyer known Seller. Seller agrees that Broker may market other properties during the term of this Listing. 28 21 Seller agrees that Broker may market Seller's personal property identified on lines 13-14 during the term of this Listing. LIMITED COMMON ELEMENTS: The limited common elements assigned to the Unit include: 10 writing. LIST PRICE: Dollars ($ Line 23 Parking 48 Within seven days otherwise of the date of this Seller Listing,agrees Seller toagrees to deliver to Broker a written list of such ). 35 OCCUPANCY: Unless provided, give buyer occupancy ofdeclaration the Unit and anyalllimited 29 22 Broker's marketing may include: . See condominium forcommon complete list.: 11 prospective INCLUDED IN LIST PRICE: Seller is including in the list price the Property, Seller's interests in any surplus 49 INSERT DATE buyers. The following other buyers are excluded from this Listing until 36 elements at time of and tois have the Unit in broom sweptnot condition andon free of$all debrisand andthe personal 30 23 . The parking forclosing the Property . The parking fee is 12 common andPARKING: reserves of the Condominium allocated to the Property, Fixtures excluded lines 16-19, following 50 . These other buyers are no longer. 37 property except for personal property belonging tothe current tenants, sold to buyer or left with buyer's consent. 31 24 Broker may advertise the following special financing and incentives offered by Seller: ASSOCIATION FEE: The association fee for Property is $ per . 13 items: 51 excluded from this Listing after TO the PROPERTY specified dateOR unless, on PRESENTATION: or before the specified date, Seller hasthat either accepted an 38 COOPERATION, ACCESS OFFER The parties agree Broker will Some condominiums require owners to purchase parking spaces separately or lease them from 32 25 .(does) Seller has a duty to cooperate withhave Broker's marketing a right of work first 14 offer RIGHT OFbuyer FIRST REFUSAL: The to condominium association (does not) . the STRIKE ONE 52 from the orother sold the Property the buyer. 39 and cooperate with brokers in marketing the Property, including brokers from other firms acting as subagents 33 26 efforts. See lines 88-106 regarding Broker's role as marketing agent and Seller's duty to notify Broker of any potential 15 refusal on the Property. NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will association where others include them as part of the unit or a limited common element. In the 53 COMPENSATION TO OTHERS: Broker offers the- following commission to cooperating brokers: buyers. Cooperation first 40 from other companies engaged by Broker Seetolines 194-197) and brokers representing 34 27 buyer known to Seller. Seller agrees that Broker may market other properties during the term of this Listing. 16 (agents MARKETING: Seller authorizes and Broker agrees use reasonable efforts to procure a buyer for the Property.. continue to be owned by the lessor. (See lines 266-277): 54 . (Exceptions if any): blank space onthat line 23, may aotherwise seller indicates whether there isbuyer parking and identifies the space. 41 includes providing access to the Property for showing purposes and presenting offers and other proposals from theseIn the 35 28 OCCUPANCY: Unless provided, Seller agrees to give occupancy of the Unit any limited 17 Seller agrees Broker market Seller's personal property identified on lines 13-14 during the termand of this Listing. 55 COMMISSION: Broker's commission shall be 42 brokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not be. The second blank space on line 23, the seller indicates what the fee for parking is, if there is one. 36 29 common elements at time of closing and to have the Unit in broom swept condition and free of all debris and personal 18 Broker's marketing may include: 43 allowed to attend showings, and the specific terms of offers which should not be submitted to Seller: 30 37 propertyfee belonging to current tenants, to buyer or left with buyer's consent. unit or it may . . be 19 property parking fee except may for bepersonal a one-time paid when the sellersold purchases the condominium 44 38 31 COOPERATION, ACCESS TO PROPERTY ORand OFFER PRESENTATION: The parties agree that Broker will work. . 20 Broker may advertise the following special financing incentives offeredinbythe Seller: STORAGE UNIT: A storage unit (is) (is not) STRIKE ONE included List Price; Unit number: a Phone: recurring fee like condominium association fees. Fax: 45 Limiting Broker's cooperation with otherthe brokers may reduce thehas marketability of the Property. 39 32 andLIMITED cooperate with other brokers in The marketing Property, including brokers from other firms acting as subagents . Seller atoduty toUnit cooperate with Broker's marketing 21 CAUTION: COMMON ELEMENTS: limited elements assigned the include: Produced with ZipForm™ by RE FormsNet, LLCcommon 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipform.com 46 EXCLUSIONS: All persons who may acquire an interest in the Property as a Protected Buyer under aany prior listinglist. 40 33 (agents from other companies engaged by Broker See lines 194-197) and brokers representing buyers. Cooperation 22 efforts. See lines 88-106 regarding Broker's role as marketing agent and Seller's duty to notify Broker of for potential . See condominium declaration complete Line 24 Association Fee 47 are excluded fromtofor this to for the extent ofpurposes theother priorproperties broker's legal rights, unless agreed to in . 41 34 includes providing access the Property and presenting offers and other from these 23 contract buyer known to Seller. Seller agrees that Broker may market during the term offee thisisotherwise Listing. PARKING: The parking theListing Property is showing . The parking $proposals 48 writing. Within seven days of the date of this Listing, Seller agrees to deliver to Broker a written list of all such 42 35 brokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not be . OCCUPANCY: Unless otherwise provided, Seller agrees to give buyer occupancy of the Unit and any limited 24 ASSOCIATION FEE: The association fee for the Property is $ per 49 INSERT DATE buyers. The following other buyers are excluded from this Listing until : 43 36 allowed toelements attend showings, the specific of which should not condition be submitted to Seller: common at time ofand closing and toterms have theoffers Unit in broom swept andSTRIKE free of ONE all debris and personal 25 prospective have a right of first RIGHT OF FIRST REFUSAL: The condominium association (does) (does not) 50 . These other buyers are no longer 44 37 . property except for personal property belonging to current tenants, sold to buyer or left with buyer's consent. 26 refusal on theassociations Property. Condominium levy assessments or set the amount that each owner owes for the payment 51 excluded from this Seller Listing after the PROPERTY specified dateOR unless, on orreduce before the marketability specified date, Seller has either accepted an 45 38 CAUTION: Limiting Broker's cooperation with other brokers may the ofprocure the Property. 27 COOPERATION, ACCESS TO OFFER PRESENTATION: The parties agree that Broker will work MARKETING: authorizes and Broker agrees to use reasonable efforts to a buyer for the Property. of52 the condominium’s common expenses. Owners usually pay as thea fees on Buyer a monthly basis although from the buyer orother sold the Property to acquire the buyer. 46 39 EXCLUSIONS: All persons who an Property, interest inincluding theidentified Property Protected under a of prior and cooperate withBroker brokers inmay marketing the brokers from otherduring firms acting as subagents 28 offer Seller agrees that may market Seller's personal property on lines 13-14 the term thislisting Listing. 53 some condominiums charge fees quarterly or on another schedule. COMPENSATION TO OTHERS: Broker offers the following commission to cooperating brokers: 47 40 contract are excluded from thisengaged Listing to extent of the broker's rights, unless otherwise to in other may companies by the Broker - See linesprior 194-197) andlegal brokers representing buyers. agreed Cooperation 29 (agents Broker'sfrom marketing include: 54 . . if any): 48 41 30 includes writing. Within seven daysto ofthethe date. (Exceptions offorthis Listing, Seller agrees to deliveroffers to Broker a written list of all these such providing access Property showing purposes and presenting and other proposals from 55 COMMISSION: Broker's commission shall beare Broker 49 42 INSERT prospective buyers. The other buyers excluded fromnot thiscooperate, Listing by until to Seller. Note any brokers with whom shall any brokers or buyers who shall DATE not be.: 31 brokers Broker may advertise thefollowing following special financing and incentives offered Seller: 50 43 other with buyers are nomarketing longer not has be submitted to Seller: 32 allowed to attend showings, and the specific terms of offers which should . Seller a duty .toThese cooperate Broker's 51 44 fromlines this 88-106 Listing after the specified on or before date, to Seller eitherofaccepted an. 33 excluded efforts. See regarding Broker'sdate role unless, as marketing agent the andspecified Seller's duty notifyhas Broker any potential Phone: Fax: 52 45 offer the buyer or sold the Property theother buyer. 34 CAUTION: Limiting Broker's cooperation with brokers mayother reduce the marketability the Property. buyerfrom known to Seller. Seller agrees thatto Broker may market properties during theofterm of this Listing. Produced with ZipForm™ byBroker RE FormsNet, LLCthe 18070 Fifteen Mile Road, Fraser, Michigan www.zipform.com 53 46 COMPENSATION TO OTHERS: offers following to cooperating brokers: 35 EXCLUSIONS: All persons who may acquire an interest incommission the as 48026 aoccupancy Protected Buyer a prior OCCUPANCY: Unless otherwise provided, Seller agrees to Property give buyer of the under Unit and anylisting limited 54 47 . (Exceptions if any): 36 contract are excluded from this Listing to the extent of the prior broker's legal rights, unless agreed to in. common elements at time of closing and to have the Unit in broom swept condition and free otherwise of all debris and personal 55 48 COMMISSION: shall be toListing, 37 writing. Within days commission of the date of this agrees deliver to Broker a written list of all such. property exceptseven forBroker's personal property belonging currentSeller tenants, sold totobuyer or left with buyer's consent. 49 INSERT 38 prospective buyers. The followingTO other buyers are OR excluded fromPRESENTATION: this Listing until The parties agree that : COOPERATION, ACCESS PROPERTY OFFER BrokerDATE will work 50 39 and cooperate with other brokers in marketing the Property, including brokers from . These longer otherother firmsbuyers actingareasnosubagents 51 40 excluded from other this Listing after the specified unless, or before the specified date,representing Seller has either accepted an Phone: Fax: (agents from companies engaged by date Broker - Seeonlines 194-197) and brokers buyers. Cooperation Produced withthe ZipForm™ by RE to FormsNet, LLC 18070 Fifteen Mile Road,and Fraser, Michigan 48026 www.zipform.com 52 41 offer fromproviding the buyer or sold Property theforbuyer. includes access to the Property showing purposes presenting offers and other proposals from these 53 42 brokers COMPENSATION TO any OTHERS: Broker following commission to cooperating brokers: to Seller. Note brokers with offers whomthe Broker shall not cooperate, any brokers or buyers who shall not be 54 . 43 allowed to attend showings, and the specific . (Exceptions any): which should not be submitted to Seller: terms ofifoffers

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shall pay Broker's commission, which shall earned, if, during term of thisnot Listing: 63 Seller RESIDENTIAL CONDOMINIUM OFFER TObe PURCHASE, even the if Seller does accept this buyer's offer. (See 1756 64 1) Seller lines 282-285 regarding sells or accepts anprocurement.) offer which creates an enforceable contract for the sale of all or any part of the Property; 1857 65 2) A percentage commission, applicable, basedwhich on the purchase price if commission is earned. Seller grants an option toifpurchase all orshall any be partcalculated of the Property is subsequently exercised; 1958 66 under 1) or 2) above, or calculated based on the list price under 3), 4) or 5). A percentage 59 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; REAL ESTATE SALES 20 STORAGE UNIT: A storage unit (is) (is not) STRIKE ONE included in the List Price; Unit number:commission shall be. 67 4) calculated on theoccurs fair market of an theeffective Propertychange exchanged under 3) the exchange involves than the entire 60 A transaction whichvalue causes in ownership or ifcontrol all include: or any part ofless the Property; or 21 LIMITED The limited common elements assigned to the of Unit 68 5) Property or COMMON on the fair ELEMENTS: market of the Property which change in at ownership or control takes 61 A buyer is procured for the value Property by Broker, bytoSeller, oranbyeffective any other person, no less than the price andplace, on 2269 under 4) if the transaction involves less than the entire Property. Once Seeearned, condominium declaration for complete list. Broker’s is WB-14 due and 62 substantially the same terms set forth in this Listing and in the . standard provisions ofcommission the current 2363 PARKING: The parking for the Property is . does Theotherwise parking fee isthis $ buyer's . 70 payable in full at the earlier of closing or the date set for closing, unless agreed in writing. Broker’s RESIDENTIAL CONDOMINIUM OFFER TO PURCHASE, even if Seller not accept offer. (See Lines 25-26 Right of First Refusal 2464 ASSOCIATION FEE: The procurement.) association feeterm for the is $one owner of the Property per sells, conveys, exchanges or. 71 commission shall regarding be earned if, during the of Property the Listing, lines 282-285 2565 have a right of first 72 A options anOF interest in all or any partThe of the Property toassociation anotherbased owner, except bynot) divorce judgment. RIGHT FIRST REFUSAL: condominium (does) (does percentage commission, if applicable, shall be calculated on the purchase price ifONE commission is earned STRIKE 73 refusal NOTE:on sale, option, exchange or procurement a buyer a portion does not terminate shall the Listing 2666 under 1)A the or 2)Property. above, or calculated based on theoflist price for under 3), 4) of or the 5). Property A percentage commission be 74 calculated asMARKETING: to any remaining on the Seller fairProperty. market value and of theBroker Property exchanged under 3) if the exchange involves less than theProperty. entire 2767 authorizes agrees to use reasonable efforts to procure a buyer for the If an association holds a rightvalue of Listing first the association have the first to buy theUpon unit on 75 Seller ■ EXTENSION OF LISTING: The term is extended for periodwill of year as to anyright Property or onthat the fair market ofSeller's therefusal, Property to which an aidentified effective change in13-14 ownership orProtected control 2868 agrees Broker may market personal property onone lines during the term takes ofBuyer. thisplace, Listing. 76terms receiptand written request fromaSeller a broker who has listed Property, agrees to promptly deliver to the conditions that bona-fide third-party buyerthe submits. Often, the association will under 4)of ifathe transaction involves lessorthan the entire Property. Once earned,Broker Broker’s commission is due and have 2969 Broker's marketing may include: 77 payable Sellerthe a in written of earlier those buyers known by Broker to for whom the extension period applies. Should this Broker’s Listing to be. the 70 full atlistand the of of closing or the date set closing, unless otherwise agreed in writing. to 30match price terms the third-party buyer’s offer. When a buyer submits an offer 71 shall be earned if, the of term of the Listing, one owner of the sells,be conveys, exchanges or the 78 commission terminated by Seller prior to theduring offirst the term statedthe in this Listing, thisProperty Listing shall extended forwhether Protected seller and may the association has aexpiration right refusal, association will meet and decide 31 Broker advertise following special andanother incentives offered by by Seller: 72 an in the all or any ofyear the financing Property to owner, except divorce judgment. 79 options Buyers, oninterest the same terms, forpart one after the Listing is terminated. 3273 NOTE: Awants . Seller has duty to cooperate Broker's marketing association toOFmatch theNeither of the andof purchase the unit or let sale, option, exchange orterms procurement ofbuyer’s a buyerhas foroffer athe portion theatoProperty does not with terminate theprospective Listing 80 ■ TERMINATION LISTING: Seller nor Broker legal right unilaterally terminate thisthe Listing absent 33 efforts. See lines 88-106 regarding Broker's role as marketing agent and Seller's duty to notify Broker of any 74 to any remaining Property. buyer the ofunit. A seller mustparty. disclose right of first refusal buyers in 81 as apurchase material breach contract by the other Seller aunderstands that the partiestoto potential the Listing are Sellerpotential andwriting the 3475 known Seller that Broker may market other properties during ofholds this ■Broker EXTENSION OF LISTING: The Listing term is extended for a have period of one yearthe asterm to any Protected Upon 82 buyer (firm).to Seller. Agents (salespersons) Broker (firm) do notknow authority to enter into aListing. mutual agreement to before the buyer submits anagrees offer. If for a seller does not ifthe the association thisBuyer. right, the seller 3576 OCCUPANCY: Unless otherwise provided, Seller agrees to the give buyer occupancy of theto Unit and deliver any limited receipt of athewritten request from Seller or a broker who has listed the Property, Broker agrees promptly toofoffirst 83review terminate Listing, amend the commission amount or shorten term of this Listing, without the written consent can the condominium declaration and contact the association to see if they hold a right 3677 Seller a elements written listatoftime those known Broker to whom the termination extension period applies. Should this Listing bethe of buyers closing andand to by have theagree Unit inthat broom swept condition and free ofby alleither debris and personal 84 common the agent(s)’ supervising broker. Seller Broker any of this Listing party before refusal. terminated byonSeller priorshall toproperty thebeexpiration oftothe stated Listing, shall be extended for Protected 3778 85 property date stated linepersonal 333 indicated theterm other partyininthis writing andthis shall bebuyer's effective until delivered to the except for belonging to current tenants, sold to buyer orListing leftnot with consent. on the sameCooperation terms,with for TO one year after Marketing the Listing is terminated. 86 Buyers, other Party in accordance lines 260-265. CAUTION: Early termination of this be that a breach contract, 3879 COOPERATION, ACCESS PROPERTY OR OFFER PRESENTATION: TheListing partiesmay agree Brokerof will work Lines 88-106 Seller with Efforts ■causing TERMINATION LISTING: Seller Broker has the legal right to unilaterally terminate this Listing absent 87 and the terminating party toNeither potentially be nor liable for damages. 3980 cooperate withOFother brokers in marketing the Property, including brokers from other firms acting as subagents a■ material contract by the other thatand the brokers parties to the Listing are Seller the 88 (agents SELLER COOPERATION WITH MARKETING Seller agrees to cooperate withbuyers. Broker inand Broker's 4081 frombreach other ofcompanies engaged by party. BrokerSeller - EFFORTS: Seeunderstands lines 194-197) representing Cooperation 82 Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to enter into a mutual agreement to 89 marketing efforts and to provide Broker with all records, documents and other material in Seller's possession or control 41 includes providing access to the Property for showing purposes and presenting offers and other proposals from these 83 terminate the Listing, amend the commission amount or shorten the term of this Listing, without the written consent of 90 which are required in connection with the sale, including, but not limited to, copies of the condominium association's 42 brokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not be 84 the agent(s)’ supervising broker. Seller and Broker agree107-136. that any The termination of this Listing by either party before the condominium disclosure materials as described in lines Buyer may also request the following: 4391 allowed tocondominium attend showings, andbethe specific terms of offers which should not be submitted to Seller:until delivered to the 85 stated on line 333association’s shall indicated to the other party in writing and shall not be effective 92 date 1) the financial statements for the last two years, 4486 other Party in accordance with lines 260-265. CAUTION: Early termination of this Listing may be a breach of contract, . 93 2) the minutes of the last unit owner's meetings, 4587 may12reduce marketability of the Property. causing theLimiting terminating partycooperation to potentially beother liablebrokers for damages. 94 CAUTION: 3) the minutes ofBroker's condominium board with meetings during the monthstheprior to acceptance, 4688 EXCLUSIONS: All persons who may acquire an interest in the Property as a Protected under in a prior listing COOPERATION WITH MARKETING EFFORTS:special Sellerassessments, agrees to cooperate Buyer with Broker Broker's 95 ■ 4) SELLER information about contemplated or pending condominium 4789 contract are excluded from this Listing to the extent of the prior broker's legal rights, unless otherwise agreed to in marketing efforts and to provide Broker with all records, documents and other material in Seller's possession or control 96 5) copies of the association's certificate of insurance, 4890 which are required in connection theofsale, butofnot limitedaccounts copies the condominium association's Within seven days of thewith date this including, Listing, Seller agrees toto,deliver toof Broker list of all such 97 writing. 6) a statement from the association indicating the balance reserve controlled byathewritten association, 4991 condominium disclosure materials as described linesof107-136. Theassessments Buyeruntil may also request the following: INSERT DATE : 98 prospective 7) a statement from association of the amount anyfrom unpaid on the unit (per Wis. Stat. § 703.165) buyers. Thethe following other buyers arein excluded this Listing 5092 99 1) the and;condominium association’s financial statements for the last two years, . These other buyers are no longer 93 excluded 2) the lastbylaws unit owner's 100 8) the the minutes declaration and the meetings, master association, so Seller should date, be prepared to also these 51 from thisof Listing after theof specified date unless, on iforany, before the specified Seller has eitherprovide accepted an 94 offer 3) the minutes of condominium board meetings during the 12 months prior to acceptance, 101 items. 52 from the buyer or sold the Property to the buyer. 95 4) information about contemplated or acts pending condominium special 102 Seller authorizes Broker to do those reasonably necessary to assessments, effecttoacooperating sale and Seller agrees to cooperate fully 53 COMPENSATION TO OTHERS: Broker offers the following commission brokers: 96 5) copies of the association's certificate of insurance, 103 with these efforts which may include obtaining condominium disclosure materials at Seller's expense (see Wis. Stat. §. 54 . (Exceptions if any): 97 6) a statement from the association indicating the balance of reserve accountssystem controlled by the association, 104 703.20(2)), use of a multiple listing service, Internet advertising or a lockbox on Property. Seller shall promptly. 55 COMMISSION: Broker's commission shall be 98 7) a statement from the the amount of any unpaid assessments the unit (per Wis. Stat. § 703.165) 105 notify Broker in writing of association any potentialof purchasers with whom Seller negotiates on during the term of this Listing and shall 99 promptly and; refer all persons making inquiries concerning the Property to Broker. 106 100 the declaration and bylaws of the master association, if any, so Seller should to current also provide these 107 8) ■ CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide buyer be withprepared complete, and accurate Phone: Fax: the listing 101 items. The agrees to give firmmaterials copiesrequired of documents addition to the disclosure 108seller copies of the condominium disclosure by Wis.inStat. § 703.33. Thecondominium condominium disclosure Produced with ZipForm™ by RE FormsNet, LLC 18070necessary Fifteen Mile Road, Fraser, Michigan 48026 Seller www.zipform.com 102 authorizes Broker dofor those acts to days effect ainclude sale agrees topaint cooperate fully documents that required the sale. Other documents mayprior lead-based disclosure or 109 Seller materials areare required totobe delivered to reasonably buyer no later than 15 to and closing. The condominium disclosure 103 with these efforts which may include obtaining condominium disclosure materials at Seller's expense (see Wis. Stat. § 110 materials includecondition a copy of report. the following and any amendments to any of these (except as limited for small a seller real estate 104 703.20(2)), use of a multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly 111 condominiums per Wis. Stat. § 703.365): 105 notify Broker Condominium in writing of any potential purchasersMaterials with whom Seller negotiates during the term of this Listing and shall Lines 107-136 Disclosure 112 promptly a) proposed existing declaration, bylaws and any or regulations, 106 refer all or persons making inquiries concerning therules Property to Broker. and an index of the contents, 113 b) proposed or existing articles of incorporation of the association, if it isbuyer or is with to becomplete, incorporated, 107 ■ CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide current and accurate 114 c) proposed or existing management contract, employment contract or other contract affecting the use,disclosure 108 copies of the condominium disclosure materials required by Wis. Stat. § 703.33. The condominium 115 maintenance or access of all or part of the condominium, 109 materials are required to be delivered to buyer no later than 15 days prior to closing. The condominium disclosure 116 materials d) projected operating for the including details concerning the estimated 110 includeannual a copy of the budget following andcondominium any amendments to reasonable any of these (except as limited for small 117 monthly payments by the purchaser for assessments and other monthly charges, 111 condominiums per Wis. Stat. § 703.365): 118 e) proposed leases to or which unit declaration, owners or the association be aorparty, 112 a) existing bylaws and anywill rules regulations, and an index of the contents, 119 f) general description any contemplated expansion of condominium stage of expansion and the 113 b) proposed or existingofarticles of incorporation of the association, if it is including or is to beeach incorporated, 120 maximum number of units that can be added to the condominium, 114 c) proposed or existing management contract, employment contract or other contract affecting the use, 121 g) unit floor plan showing location elements and other facilities available to unit owners, 115 maintenance or access of all or partofofcommon the condominium, 116 117 118 119 120 121

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d) projected annual operating budget for the condominium including reasonable details concerning the estimated monthly payments by the purchaser for assessments and other monthly charges, e) leases to which unit owners or the association will be a party, f) general description of any contemplated expansion of condominium including each stage of expansion and the maximum number of units that can be added to the condominium, g) unit floor plan showing location of common elements and other facilities available to unit owners,

190 REQUIRED TO DISCLOSE TO YOU IN YOUR AGENCY AGREEMENT THE COMMISSION OR FEES THAT YOU 191 MAY OWE TO YOUR BROKER. IF YOU HAVE ANY QUESTIONS ABOUT THE COMMISSION OR FEES THAT YOU 192 MAY OWE BASED UPON THE TYPE OF AGENCY RELATIONSHIP YOU SELECT WITH YOUR BROKER YOU 193 SHOULD ASK YOUR BROKER BEFORE SIGNING THE AGENCY AGREEMENT. Agency Agreements -3 194 ■ SUBAGENCY: The broker may, with your authorization in the agency agreement, engage other brokers who assist 195 your broker by providing brokerage services for your benefit. A subagent will not put the subagent's own interests 196 ahead of your interests. A subagent will not, unless required by law, provide advice or opinions to other parties if doing Page 3 of 6, WB-4 197 so is contrary to your interests. 198 PLEASE REVIEW THIS INFORMATION CAREFULLY. A broker or salesperson can answer your questions about 122 h) the executive summary. 199 brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an 123 If the condominium was an occupied structure prior to the recording of the condominium declaration, it is a "conversion 200 attorney, tax advisor, or home inspector. disclosure is requiredcondominium by section with 452.135 the Wisconsin 124 condominium," and the "condominium disclosureThis materials" for a conversion five orofmore units also 201 statutes and is for information only. It is a plain language summary of a broker's duties to you under section 125 include: 202 452.133 (2) of thestatement Wisconsin statutes. 126 1) a declarant's based on an independent engineer's or architect's report describing the present condition 127 203 ■ CONFIDENTIALITY NOTICE TO CLIENTS: Broker will keep confidential any information given to Broker in of structural, mechanical and electrical installations; 128 2) a statement theinformation useful life ofobtained the itemsbycovered 1), unless a statement no representations are being 204 confidence, or of any Brokerinthat he or she knows athat reasonable person would wantmade to be kept 129 is provided, and the information must be disclosed by law or you authorize Broker to disclose particular information. 205 confidential, unless 130 3) a listshall of notices of uncured or other municipal violations, of the costs of curingservices the 206 Broker continue to keepcode the information confidential afterincluding Broker isan noestimate longer providing brokerage to you. 131 207 Theviolations. following information is required to be disclosed by law: 132 If the disclosure materials are delivered to Buyer and Buyer does not receive all of the disclosure documents, Buyer 208 1) Material adverse facts, as defined in section 452.01 (5g) of the Wisconsin statutes (lines 278-281). 133 may, within 5 business days of Buyer's receipt of the disclosure materials, either rescind the Offer or request any 209 2) Any documents. facts knownSeller by the that contradict any receipt information included in aforwritten inspection report on the 134 missing hasBroker 5 business days following of Buyer's request missing documents to deliver 210 property or real estate that is the subject of the transaction. 135 the requested documents. Buyer may rescind the sale within 5 business days of the earlier of Buyer's receipt of 211 To ensuremissing that thedocuments Broker is aware of what specific information confidential, may list that information 136 requested or the deadline for Seller's delivery ofyou the consider documents [Wis. Stat. you § 703.33(4)(b)]. 137 212 below (see lines 214-217).IfAtProperty a later time, you may also and provide the Broker with other information you consider to be LEASED PROPERTY: is currently leased lease(s) will extend beyond closing, Seller shall assign 138 Seller's rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations) 213 confidential. State law requires aINFORMATION: seller to provide the buyerthat with a copy of the materials no 139 thereunder to buyer at closing. Seller acknowledges Seller remains liablecondominium under the lease(s)disclosure unless released by 214 CONFIDENTIAL __________________________________________________________________ 140 tenant(s). CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the later 15 days prior to closing (line 109). Chapter 4 discusses condominium disclosure obligations 215 than ______________________________________________________________________________________________ 141 lease(s) unless released by tenants. 216the ______________________________________________________________________________________________ and specific documentsTO that are required. The process for providing the documents and the buyer’s 142 BROKER DISCLOSURE CLIENTS: 217 ______________________________________________________________________________________________. 143 recession rights related to Athose documents will also beTOaddressed inTO Chapter 10 when reviewing the UNDER WISCONSIN LAW, BROKER OWES CERTAIN DUTIES ALL PARTIES A TRANSACTION: 218 NON-CONFIDENTIAL INFORMATION following may be disclosed by Broker):___________________________ 144 (a) The dutyOffer to provide brokerage services(The to you fairly and honestly. Condominium to Purchase. 219 ______________________________________________________________________________________________ 145 (b) The duty to exercise reasonable skill and care in providing brokerage services to you. 220 ______________________________________________________________________________________________ 146 (c)222-233 The duty Real to provide you with accurate information Lines Estate Condition Reportabout market conditions within a reasonable time if you request 147 221 ______________________________________________________________________________________________. it, unless disclosure of the information is prohibited by law. 148 (d)REAL The duty to disclose to you REPORT: in writing certain material adverse facts about a property, unless disclosure of theto 222 ■ ESTATE CONDITION Wisconsin Administrative Code Chapter RL 24 requires listing brokers 149 information isofprohibited byonlaw. (See Lines 278-281) 223 make inquiries the Seller the condition of the Property and to request that Seller provide a written response to 150 (e) The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential 224 Broker's inquiry. Seller agrees to complete a real estate condition report to the best of Seller's knowledge. Seller 151 information or the confidential information of other parties. (See Lines 203-221) 225 agrees amend the report should learnproperty of any the defect(s) completion of the report but before acceptance of 152 (f) Theto duty to safeguard trust fundsSeller and other brokerafter holds. 153 (g)buyer's The duty, negotiating, to present contract proposals in anthe objective andallunbiased the 226 a offerwhen to purchase. Seller authorizes Broker to distribute report to interestedmanner partiesand anddisclose their agents 154 advantages and disadvantages of the proposals. 227 inquiring about the Property and acknowledges that Broker has a duty to disclose all material adverse facts as required 155 BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A BROKER, YOU ARE THE 228 by law. Wis. Stat. A§ BROKER 709.03 provides that when theDUTIES PropertyTOisAaCLIENT: condominium unit, the property to which the real 156 BROKER'S CLIENT. OWES ADDITIONAL 229 estate condition report applies is the condominium unit, the common of the and any limited 157 (a) The broker will provide, at your request, information and advice on real elements estate matters thatcondominium affect your transaction, 158 unlesselements you release broker duty. 230 common thatthemay be from usedthis only by the owner of the condominium unit being transferred. Wis. Stat. § 159 (b) The broker must provide you with all material facts affecting the transaction, not just adverse facts. 231 709.02(2) requires that Seller also furnish a condominium addendum to the Real Estate Condition Report and a copy 160 (c) The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within 232 of the summary with the Real Estate Condition Report. Note: Small condominiums may not all be 161 theexecutive scope of the agency along agreement. 233 required to have executive peryou Wis. Stat. the § 703.365 (1) (b) (8). 162 (d) The broker willannegotiate forsummary you, unless release broker from thisand duty. (e)SELLER The broker will not place the broker's interests ahead of your interests. Theestate brokertowill not, unless required law,real give 234 ■ REPRESENTATIONS REGARDING DEFECTS: Seller represents Broker that report. as of theby date of thisestate A 163 condominium seller needs to provide the buyer with a real condition The 164 information advice to otherreport partiesorwho areform not the broker's clients, iftogiving the inquiry information or advicethe is contrary your 235 Listing, if a real or estate condition other of written response Broker’s regarding conditionto of condition report covers the unit, the common elements, and the limited common elements. A the seller of 165 interests. 236 Property has been made by the Seller, the Seller has no notice or knowledge of any defects affecting the Property other you become involved a transaction in which another is alsoestate the broker's client (a report "multiple and representation (f) Ifthose a 166 condominium must also inprovide an addendum to party theresponse. real condition a copy of the 237 than noted on Seller’s real estate condition report or written 167 relationship"), different duties may apply. executive summary. 238 WARNING: IFREPRESENTATION SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, 168 MULTIPLE RELATIONSHIPS AND DESIGNATED AGENCY: SELLER MAY BE LIABLE FOR 239 DAMAGES COSTS. relationship exists if a broker has an agency agreement with more than one client who is a 169 A multipleAND representation 240 ■ OPEN HOUSE AND SHOWINGInRESPONSIBILITIES: Seller is aware ifthat a potential riskinofthe injury, damage 170 party in the same transaction. a multiple representation relationship, all there of theisbroker's clients transaction WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT 171 consent, broker may provide services the clients through designated agency. 241 and/or theft the involving persons attending anto"individual showing" or an "open house." Seller accepts responsibility for 172 Designated agency means that different salespersons employed the broker negotiateproperty. on behalf Seller of you agrees and theto 242 preparing the Property to minimize the likelihood of injury, damagebyand/or loss will of personal Except forBroker exchanging the for “seller,” sections of the WB-36 Buyer 173 clientharmless or clientsfor in any theword transaction, and the broker's dutiesseveral will remain the same. Each salesperson will provideAgency 243 holdother losses“buyer” or liability resulting from personal injury, property damage, or theft occurring 174 information, opinions, and advice to the client for whom the salesperson is negotiating, to assist the client in that the differ Agreement are the same as the WB-1 Listing Contract. Due to the similarities, only sections 244 during "individual showings" or "open houses" other than those caused by Broker's negligence or intentional 175 negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the 245 the wrongdoing. acknowledges that showings andinopen houses mayover be conducted licensees other from ListingSeller Contract covered. agency does yetbyother include email 176 information, opinions, orare advice givesindividual theThe clientbuyer advantages theagreement negotiations thenot broker's clients. A as a 246 of thansalesperson Broker, that appraisers andofthat inspectors may conduct and inspections without 177 notexpected reveal any your the confidential information to another unless required tobeing do so accompanied by law. as a by form delivery. Itwillis form will beappraisals revised inparty late 2016 to include email form of 247 Broker or other licensees, and that isbuyers licensees may be present at aallmultiple inspections and testing and may 178 If a designated agency relationship not in or effect you may authorize or reject representation relationship. delivery. 179 If you authorize a multiple representation relationship the broker provide brokerage more than onean 248 photograph or videotape Property unless otherwise provided for may in additional provisionsservices at linesto309-322 or in 180 client in per a can transaction but neither the broker broker's salespersons may assist or anyit client This used by a buyer andnora any firmoftothefind properties to purchase couldwithbe used 249 agreement addendum lines be 323-328. 181 information, opinions, and advice which may favor the interests of one client over any other client. If you do not by182 a tenant and firm torepresentation find properties to rent. consent to aa multiple relationship the broker will not be allowed to provide brokerage services to more 183 than one client in the oftransaction. Approved by the Wisconsin Department Regulation and Licensing 1-1-08 (Optional Use Date) 7-1-08 (Mandatory Use Date)

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WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT 1 2 3 4 5 6 7 8

BROKER THE TO18070 ACT FOR A BUYER'S AGENT: Buyer (see lines 154-155) gives Produced withSOLE ZipForm™AUTHORITY by RE FormsNet, LLC Fifteen Mile BUYER Road, Fraser,AS Michigan 48026 www.zipform.com Broker the exclusive right to act as Buyer's agent to locate an interest in property and to negotiate the procurement of an interest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer agrees that during the term of this Agreement, Buyer will not enter into any other agreements to retain any other buyer's agent. NOTE: IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATING AN INTEREST IN PROPERTY, BUYER MAY BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION IF BUYER'S CONTACTS WITH OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEING

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WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT

Lines 1-5 Broker the Sole Authority to Act for Buyer as a Buyer’s Agent

1 BROKER THE SOLE AUTHORITY TO ACT FOR BUYER AS A BUYER'S AGENT: Buyer (see lines 154-155) gives 2 Broker the exclusive right to act as Buyer's agent to locate an interest in property and to negotiate the procurement of an 3 interest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer 4 agrees that during the term of this Agreement, Buyer will not enter into any other agreements to retain any other buyer's 5 agent. 6 NOTE: IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATING AN INTEREST IN PROPERTY, BUYER BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION IF of 7 A buyer gives a firm the exclusive right asMAY the buyer’s agent to locate and negotiate the procurement CONTACTS WITH OWNER ORas OWNER'S AGENT RESULT IN NO COMPENSATION an8 interest BUYER'S in property. No other party can act the buyer’s agent for properties covered by aBEING WB-36 9 RECEIVED BY BROKER FROM OWNER OR OWNER'S AGENT. Buyer Agency agreement. 10 PURCHASE PRICE RANGE: 11For example, INSERT DATE EXCLUDED PROPERTIES: The following properties excluded from thisa Agreement a buyer can use one WB-36 Buyer Agencyare agreement to hire firm to lookuntil for residential properties 12 Note: Identify any specific excluded properties or limitations on the scope of this Agreement including geographic in the Fox Valley and another WB-36 Buyer Agency agreement to hire a different firm to look for vacation 13 limitations, or limitations on property type included under this Agreement. properties in Door County or for a commercial property in Milwaukee. 14 15 Approved by the Wisconsin Department of Regulation and Licensing 16 1-1-08 (Optional Use Date) 7-1-08 (Mandatory Use Date) Modifying the WB-36 Agency Agreement to Create Different Business Models 17 Page 1 of 5, WB-36  xclusive Right-to-Locate-and-Negotiate: Strike “to act as buyer’s agent” on line 2. 181. E WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT 192. E  xclusive Right-to-Locate: Strike “and to negotiate the procurement of an interest in property” 20 on linesTHE 2-3. 1 BROKER SOLEofBroker's AUTHORITY TO ACT FOR AS A"SUCCESS BUYER'S AGENT: Buyer (see lines 154-155) gives 21 Approved by the Wisconsin Department Regulation and Licensing COMPENSATION: compensation shallBUYER be: [Check FEE", "OTHER COMPENSATION", OR 2 Broker the exclusive to act Buyer's agent to“to locate an interest in price property and to negotiate of an 1-1-08 (Optional Use Date) 7-1-08right (Mandatory Useas Date) 223. E  xclusive Right-to-Negotiate: an interest in property and”the onprocurement line 2. BOTH, as applicable] SUCCESS FEE: Strike %locate of the purchase or Page 1 of 5, WB-36 3 interest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer 23 whichever is greater. OTHER COMPENSATION: 4 agrees during the WB-36 term of BUYER this Agreement, Buyer will not enter into any other agreements to retain any other buyer's Lines 6-9 that Note AGENCY/TENANT REPRESENTATION AGREEMENT 24 5 agent. 25 INSERT THE AMOUNT AND TYPE OF OTHER FEE, E.G. RETAINER FEE, OR HOURLY FEE 6 NOTE: IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATING AN 26 1 If this Agreement calls for a success fee, it is agreed that Broker earnedAGENT: the success fee(see if, during the term gives of this BROKER THE SOLE AUTHORITY TO ACT FOR BUYER AS Ahas BUYER'S Buyer lines 154-155) INTEREST IN BUYER MAY BE acting RESPONSIBLE COMPENSATION IF 7 27 2 Broker Agreement (or any extension of as it), Buyer's Buyer oragent any person on behalf ofFOR BuyerBROKER'S acquires anFULL interest in property or of enters the exclusive rightPROPERTY, to act to locate an interest in property and to negotiate the procurement an 8 Approved by the Wisconsin Department of RegulationWITH and Licensing BUYER'S CONTACTS OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEING 28 3 interest into an enforceable written contract between owner and Buyer to acquire an interest in property, at any terms and price in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer 1-1-08 (Optional Use Date) 7-1-08BY (Mandatory Use Date) 9 RECEIVED BROKER FROM OWNER ORwill OWNER'S AGENT. 29 4 agrees acceptable to owner Buyer . Broker's compensation remains due andany payable an enforceable written contract entered that during theand term of this Agreement, Buyer not enter into other ifagreements to retain any other buyer's Page 1 of 5, WB-36 10 PURCHASE PRICE RANGE: 30 5 into by Buyer per lines 26-29 fails to close . Once earned , Broker's compensation is due and payable at the earlier of closing agent. This note informs PROPERTIES: a buyer that the buyer will owe the firm’s success fee if the buyer acquires an interest 11 INSERT EXCLUDED The following properties are excluded from this Agreement until WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT 31 6 NOTE: or the date set for closing, unless otherwise agreed in writing. IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATINGDATE AN in 12 a property covered by the agreement even if the buyer works with other agents or without an agent. Note: Identify any specific excluded properties or limitations on the scope of this Agreement including geographic 32 (may IN not)PROPERTY, accept from owner or owner's agent. (Broker may accept STRIKEBUYER ONE MAY INTEREST BE compensation RESPONSIBLE FOR BROKER'S FULL COMPENSATION IF 7 Broker (may) 13 limitations, or limitations onor property type included under this Agreement. 33 8 compensation from owner owner's agent if neither is struck.) Broker's compensation from Buyer will be reduced by any BUYER'S CONTACTS WITH OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEING 1 Line 10BROKER Purchase PriceAUTHORITY TO ACT FOR BUYER AS A BUYER'S AGENT: Buyer (see lines 154-155) gives THE SOLE 14 34 amounts received agent. RECEIVED BY BROKER FROM OWNER'S AGENT. 29 Broker the exclusivefrom rightowner to actorasowner's Buyer'sOWNER agent toOR locate an interest in property and to negotiate the procurement of an 15 35 10 BROKER'S DUTIES: In consideration for Buyer's agreements, Broker agrees to use professional knowledge and PURCHASE PRICE RANGE: 3 interest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer 16 36 skills, 11 and reasonable efforts, to: 1) following locate anproperties interest inare property, unless Broker is beinguntil retained solely to INSERT negotiate the DATE EXCLUDED PROPERTIES: The excluded from this Agreement 4 agrees athat 17 during the term of this Agreement, Buyer will not enter into any other agreements to retain any will other buyer's Because buyer does not usually know the exact price of a property that the buyer 37 12 Note: procurement an interest a specificproperties property, and 2) negotiate of an interest in property, aseventually required, Identifyof any specificinexcluded or limitations onthe theprocurement scope of this Agreement including geographic 18 5 agent. 38 13 purchase, this is usually stated as alicense, range. by giving advice to Buyer thetype scope of Broker's facilitating or participating in the discussions of the terms limitations, orinformation limitations onwithin property included under this Agreement. 19 6 NOTE: IF BUYER WORKS WITH appropriate OWNER ORcontractual AGENTS forms, OF OWNER IN LOCATING NEGOTIATING 39 14 of a potential contract, completing presenting either party'sAND/OR contractual proposal withAN an 20 INTEREST IN PROPERTY, BUYER MAY BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION IF 7 explanation 40 15 of the proposal's advantages and disadvantages and other efforts including but not limited to the following: A buyer may put $250,000 to $275,000 on this linebe: to reflect that the buyerFEE", is shopping in COMPENSATION", that range. 21 COMPENSATION: Broker's WITH compensation [Check AGENT "SUCCESS "OTHER OR 41 8 16 BUYER'S CONTACTS OWNERshall OR OWNER'S RESULT IN NO COMPENSATION BEING 22 BOTH, as applicable] SUCCESS FEE: % of the purchase price or 42 17 is retained solely to locate an interest in property. 9 unless Broker RECEIVED BY BROKER FROM OWNER OR OWNER'S AGENT. 23 Lines 11-20 Excluded Properties is greater. OTHER COMPENSATION: 43 whichever 18 EARNEST MONEY: If Broker holds trust funds in connection with the transaction, they shall be retained by Broker in 10 PURCHASE PRICE RANGE: 24 44 Broker's trust account. Broker may to hold earnest money or other trust funds. Should Broker hold the earnest money, 19 11 INSERT DATE EXCLUDED PROPERTIES: Therefuse following properties are excluded from thisOR Agreement until 25 INSERT THE AMOUNT TYPE OTHER FEE,as E.G. RETAINER FEE, HOURLY 45 Buyer authorizes Broker toAND disburse theOF earnest money directed in a written earnest money FEE disbursement agreement signed 20 12 Note: Identify anycalls specifica success excludedfee, properties or limitations theearned scope the of success this Agreement including geographic 26 Agreement it is agreed that Brokeronhas feemoney if, during the term of Buyer, this 46 If bythis all parties having an for interest the trust funds. If the be: transaction to close and the "OTHER earnest is disbursed to 21 COMPENSATION: Broker'sin compensation shall [Check fails "SUCCESS FEE", COMPENSATION", OR 13 27 limitations, or limitations on property type included under this Agreement. Agreement (or any extension of it), Buyer or any person acting on behalf of Buyer acquires an interest in property or enters 47 then upon disbursement to Buyer the earnest money shall be paid first to reimburse Broker for cash advances made by Broker 22 BOTH, as applicable] SUCCESS FEE: % of the purchase price or 28 14 an enforceable contract between owner and Buyer to acquire an interest in property, at any terms and price 48 into on behalf ofisBuyer. 23 whichever greater.written OTHER COMPENSATION: 29 to owner and BuyerBuyer . Broker's compensation remains due and payable if an enforceable written contract entered 15 49 acceptable 24 NON DISCRIMINATION: and Broker agree that they will not discriminate based on race, color, sex, sexual 30 into by Buyer per lines 26-29 fails to close . Once earned, Broker's compensation is due and payable at the earlier of closing 16 50 orientation 25 as AMOUNT defined inAND Wisconsin Statutes §111.32(13m), disability, religion, nationalFEE origin, marital status, lawful INSERT THE TYPE OF OTHER FEE, E.G. RETAINER FEE, OR HOURLY 31 or the date set for closing, unless otherwise writing. 51 If 17 26 source of income, calls age, ancestry, familial or ininany other unlawful manner.the success fee if, during the term of this this Agreement for a success fee,status itagreed is agreed that Broker has earned 32 Broker (may) (may not) accept acting compensation owner or owner's agent. in (Broker may STRIKE ONE 27 Agreement (or any extension of it), Buyer or any person on behalffrom of Buyer acquires an interest property or accept enters 18 33 compensation from owner or owner's agent if neither is struck.) Broker's compensation from Buyer will be reduced by any 28 into an enforceable written contract between owner and Buyer to acquire an interest in property, at any terms and price 19 34 amounts received from owner or owner's agent. 29 acceptable to owner and Buyer. Broker's compensation remains due and payable if an enforceable written contract entered 20 Phone: Fax: 35 In fails consideration for Buyer's agreements, Broker agrees toand usepayable professional knowledge and 30 intoBROKER'S by Buyer perDUTIES: lines 26-29 toby close . Once , Broker's compensation due at the earlier of closing Produced with ZipForm™ RE FormsNet, LLCearned 18070 Fifteen Mile Road, Fraser, Michigan is 48026 www.zipform.com 21 36 COMPENSATION: Broker's compensation shall be: [Check "SUCCESS FEE", "OTHER COMPENSATION", OR skills, and reasonable efforts, to: 1) locate an interest in property, unless Broker is being retained solely to negotiate the A 31 buyer a closing, WB-36unless Buyer Agency agreement or thecan dateuse set for otherwise agreed in writing. to apply to all properties, except those excluded 22 37 BOTH, as applicable] SUCCESS FEE: % of the purchase price or procurement of an interest in a specific property, and 2) negotiate the procurement of an interest in property, as required, 32the Broker (may) (mayExcluded not) accept compensation owner or owner's agent. (Broker mayExcluded accept STRIKE ONE section. by38 buyer in the Properties If a buyer from acquires a property listed in the 23 by giving advice to Buyer within the scope of Broker'sis license, facilitating or participating in Buyer the discussions of theby terms is greater. OTHER COMPENSATION: 33 whichever compensation from owner or owner's agent ifowe neither struck.) Broker's compensation from will be reduced any Properties section, the buyer does not the firm a success fee. 39 of a potential contract, completing appropriate contractual forms, presenting either party's contractual proposal with an 24 34 amounts received from owner or owner's agent. 40 explanation of the proposal's advantages and and other efforts but not limited to the following: 25 THE AMOUNT AND TYPE OF OTHER FEE, E.G. RETAINER FEE, ORincluding HOURLY FEE 35 INSERT BROKER'S DUTIES: In consideration for disadvantages Buyer's agreements, Broker agrees to use professional knowledge and 41 26 36 If this and Agreement callsefforts, for a success fee, itanis interest agreed in that Broker unless has earned theis success fee if, during thenegotiate term of this skills, reasonable to: 1) locate property, Broker being retained solely to the 42 unless Broker is retained solely to locate an interest in property. 37 Agreement procurement(orofany an interest in of a specific property, and 2)acting negotiate the procurement of an interest in property, as or required, 27 62 extension it), Buyer or any person on behalf of Buyer acquires an interest in property enters 43 EARNEST Broker holds trust funds in connection with the transaction, they shall be retained by Broker in 38 by giving adviceMONEY: to BuyerIfwithin the between scope of owner Broker's or in the discussions of the terms 28 an enforceable andlicense, Buyer facilitating to an participating interestShould in property, anytheterms andmoney, price 44 into Broker's trust account.written Brokercontract may refuse to hold earnest money or acquire other trust funds. Broker at hold earnest 39 of a potential contract, completing appropriate contractual forms, presenting either party's contractual proposal with an 29 to owner andtoBuyer . Broker's compensation payable if anmoney enforceable written agreement contract entered 45 acceptable Buyer authorizes Broker disburse the earnest money asremains directeddue in aand written earnest disbursement signed 40 explanation of the proposal's advantages and disadvantages and other efforts including but not limited to the following:

Agency Agreements - 3

If a buyer’s licensee is aware that a buyer has seen a property before entering into a buyer agency agreement, the buyer’s licensee should discuss potential commission issues that might arise if the buyer purchases a property that the buyer saw with another firm. If the buyer did not exclude that property from the agency agreement, the buyer might owe a success fee to the buyer’s firm, even though the firm did not assist in negotiating or locating that particular property. A buyer’s firm could suggest that the buyer exclude properties seen with another firm before the parties executed the buyer agency agreement. Excluded Properties might include: Properties seen with a different buyer’s firm: A buyer may exclude these properties because the buyer previously negotiated with the owner of the property, or had seen the property with a different buyer’s firm. The property may be a “protected property,” for the previous firm. Properties seen with a subagent of a listing firm: If a buyer previously looked at a property with an agent of the listing firm or subagent of the listing firm, the buyer might exclude those properties to avoid paying a success fee to a buyer’s firm for properties that the buyer located without the assistance of a firm. If a buyer saw the property with a licensee in a licensee’s capacity as an agent for the listing firm or a subagent of the listing firm but now the buyer wants to execute a buyer agency agreement with the licensee, the licensee would need to disclose this to the seller and the listing firm because the licensee’s loyalty in the transaction is shifting from the seller to the buyer. To exclude specific properties from a WB-36, the buyer and the firm should list the property’s address or a legal description if the address is not sufficient to identify the property. A buyer includes a date on line 11, which marks the end of the exclusion period. If a buyer is including a former firm’s “protected property,” the exclusion period is for one year from the date the previous agency agreement expired. If a buyer is listing more than one firm’s protected properties, they will have different deadlines for the exclusion and the buyer and firm could consider including this information in an addendum to the agency agreement. Properties under contract: If a buyer negotiated an option with another agent or is involved in some other transaction transferring property, the buyer should exclude those properties to avoid paying a commission for a transaction that is already underway.

IDENTIFYING THE PROPERTIES COVERED BY THE BUYER AGENCY AGREEMENT Describing the Property by Exclusions A buyer and a firm can use the exclusion section to create absolute limits for the scope of the buyer agency agreement and use separate search parameters to refine the search over time. The buyer and firm could use addenda to address specific search parameters and amend the parameters as the buyer’s focus or needs change. Including search parameters in the Excluded Properties section sets search guidelines and the scope of the agreement. Parties can also establish specific search parameters with a separate document used as a supplement to the WB-36 but not incorporated as an addendum.

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For example, a buyer could include that the buyer wants a three bedroom home in the Eau Claire area. If the Page 1 of 5, WB-36 buyer wanted to use the Excluded Properties section to establish the search parameters, the buyer could exclude WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT any properties more than 50 miles from Eau Claire and all properties that are not or cannot be used as a dwelling unit where at least five persons may reside. This would set basic limits, naming a property type but leaving room THE SOLE such AUTHORITY TO ACT FOR BUYER A BUYER'SorAGENT: (see wants lines 154-155) gives forBROKER the characteristics as the style of house, number AS of bedrooms, whether Buyer the buyer to purchase Broker the exclusiveorright actbuilding. as Buyer's agent could to locate interestmore in property to negotiate the procurement of an new construction a lottofor A buyer alsoaninclude specificand search parameters such as school interest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer district, number of bedrooms, and whether the property needs to have a finished basement.

1 2 3 4 agrees that during the term of this Agreement, Buyer will not enter into any other agreements to retain any other buyer's 5 agent. One Specific Property 6 NOTE: IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATING AN When a buyer knows the specific property that the buyer wants to purchase, the buyer can use the INTEREST IN PROPERTY, BUYER MAY BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION IF 7 Excluded Properties section toWITH exclude all other properties. 8 BUYER'S CONTACTS OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEING 9 RECEIVED BY BROKER FROM OWNER OR OWNER'S AGENT. wants to write an offer on 2323 Ripple Road. A buyer could write “all properties other than 2323 Ripple 10 A buyer PURCHASE PRICE RANGE: in the Excluded Properties section. properties If the buyer property during the buyer 11 Road” DATE EXCLUDED PROPERTIES: The following areacquires excludedany fromother this Agreement until the term of INSERT 12 Note: any specific excluded or limitations on buyer’s the scope including geographic agencyIdentify agreement, the buyer will notproperties owe a success fee to the firm.of Ifthis the Agreement buyer acquires an interest in 13 limitations, or Road, limitations property typethe included this fee. Agreement. 2323 Ripple the on buyer will owe firm aunder success 14 A 15 buyer and a firm could also include the specific property information in the additional provisions and 16 include that the firm will not earn any fees or compensation under the agreement if the buyer acquires 17 an18interest in any other property. 19 Lines 21-34 Compensation 20 21 COMPENSATION: Broker's compensation shall be: [Check "SUCCESS FEE", "OTHER COMPENSATION", OR 22 BOTH, as applicable] SUCCESS FEE: % of the purchase price or 23 whichever is greater. OTHER COMPENSATION: 24 25 INSERT THE AMOUNT AND TYPE OF OTHER FEE, E.G. RETAINER FEE, OR HOURLY FEE 26 If this Agreement calls for a success fee, it is agreed that Broker has earned the success fee if, during the term of this 27 Agreement (or any extension of it), Buyer or any person acting on behalf of Buyer acquires an interest in property or enters 28 into an enforceable written contract between owner and Buyer to acquire an interest in property, at any terms and price 29 acceptable to owner and Buyer. Broker's compensation remains due and payable if an enforceable written contract entered 30 into by Buyer per lines 26-29 fails to close. Once earned, Broker's compensation is due and payable at the earlier of closing 31 or the date set for closing, unless otherwise agreed in writing. 32 Broker (may) (may not) accept compensation from owner or owner's agent. (Broker may accept STRIKE ONE 33 compensation from owner or owner's agent if neither is struck.) Broker's compensation from Buyer will be reduced by any 34 amounts received from owner or owner's agent. 35 BROKER'S DUTIES: In consideration for Buyer's agreements, Broker agrees to use professional knowledge and The parties a buyer agreement toproperty, determine fees a buyer pay to a firm 36 skills, and use reasonable efforts,agency to: 1) locate an interest in unlessthe Broker is being retainedwill solely to negotiate the for successful performance the agreement. A negotiate firm should help the of buyer understand 37 procurement of an interestunder in a specific property, and 2) the procurement an interest in property,compensation as required, 38 by giving to Buyerstrategies within the scope of Broker's facilitating or buyer. participating in the discussions of the terms amounts andadvice collection before writinglicense, an offer for the 39 of a potential contract, completing appropriate contractual forms, presenting either party's contractual proposal with an Payment of Compensation 40 explanation of the proposal's advantages and disadvantages and other efforts including but not limited to the following: A 41 buyer can use the WB-36 to give permission to the buyer’s firm to accept compensation from the 42 unless Broker is retained solelyon to locate an interest in property. owner or the owner’s agent line 32. By giving this permission, a buyer is allowing the seller or the 43 EARNEST MONEY: If Broker holds trust funds in connection with theIf transaction, they shall retainedthis by Broker in listing firm to pay the buyer’s firm’s success fee for the buyer. a buyer does not be include provision, 44 Broker's trust account. Broker may refuse to hold earnest money or other trust funds. Should Broker hold the earnest money, the firm cannot compensation from anyone other thanmoney the disbursement buyer. If aagreement buyer’ssigned firm is 45 buyer’s Buyer authorizes Broker to accept disburse the earnest money as directed in a written earnest accepting compensation from someone other than the buyer, then the amount the buyer has agreed 46 by all parties having an interest in the trust funds. If the transaction fails to close and the earnest money is disbursed to Buyer, to 47 is then upon disbursement to Buyer the earnest shallreceive be paid first to reimburse Broker cash advances agent. made by Broker pay reduced by the amount that the money firm will from the owner orforthe owner’s 48 on behalf of Buyer. 49 NON DISCRIMINATION: Buyer and Broker agree that they will not discriminate based on race, color, sex, sexual 50 orientation as defined in Wisconsin Statutes §111.32(13m), disability, religion, national origin, marital status, lawful 51 source of income, age, ancestry, familial status or in any other unlawful manner.

Phone:

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Approved by the Wisconsin Department of Regulation and Licensing 1-1-08 (Optional Use Date) 7-1-08 (Mandatory Use Date)

Agency Agreements - 3 Page 1 of 5, WB-36

WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT 1 THE SOLE ACTand FOR ASreceive A BUYER'S AGENT: Buyer (seelisting lines firm. 154-155) gives TBROKER he commission for aAUTHORITY buyer’s firmTO is 4% theBUYER firm can compensation from the 2 Broker the exclusive right to act as Buyer's agent to locate an interest in property and to negotiate the procurement of an The listing firm offers The buyer willlines not owe additional fees toproperties the buyer’s firm. in lines 11-20, Buyer 3 interest in property, except4%? as excluded under 11-20.any Except for excluded described 4 agrees that during term of 3%? this Agreement, will 1% not of enter any other agreements to retain any other buyer's The listing firm the is offering The buyer Buyer will owe theinto purchase price to the buyer’s firm. 5 agent. The listing firm is WORKS offering 5%? buyerOR willAGENTS not owe any to the buyer’s firm NEGOTIATING for a successfulAN 6 NOTE: IF BUYER WITH The OWNER OF additional OWNER INfees LOCATING AND/OR transaction, and depending on the terms of the offer of compensation, the buyer’s firm may be able to keep IF INTEREST IN PROPERTY, BUYER MAY BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION 7 the 1%BUYER'S that is more than what the buyer agreed to pay for successful performance under the buyer agency 8 CONTACTS WITH OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEING 9 agreement. RECEIVED BY BROKER FROM OWNER OR OWNER'S AGENT. Page 3 of 5, WB-36 10 PURCHASE PRICE RANGE: 11 INSERT DATE EXCLUDED PROPERTIES: The following properties are excluded from this Agreement until 93 INITIAL ONLYany ONE OF THE THREE a LINES BELOW: Often, a buyer’s agent receives share of listing commission as compensation and the 12 Note: Identify specific excluded properties or the limitations on firm’s the scope of this Agreement including geographic 94 I consent designated 13 buyer does not end toup the included success fee limitations, or limitations onpaying propertyagency. type under thiscontained Agreement. in the agency contract. Licensees draft 95 I consent to multiple representation relationships, but I do not consent to designated agency. 14 agency agreements to reflect this by limiting compensation to “whatever the firm receives from the 96 I reject multiple representation relationships. 15 seller or listing firm” or “the of compensation.” A buyer’s firmrelationships should recognize thatto there 97 NOTE: You may withdraw your MLS consentoffer to designated agency or to multiple representation by written notice 16 are transactions where this strategy will not work to obtain payment from a party other than the buyer. 98 the broker at any time. Your broker is required to disclose to you in your agency agreement the commission or fees that you 17 may owe toifyour broker. If you have listed any questions the including commission or fees that you based upon theagreement type of 99example, For a property is not in theabout MLS, language in may the owe buyer agency 18 100 19 agency relationship you select with your broker you should ask your broker before signing the agency agreement.

limiting a buyer’s firm to “the MLS offer of compensation” could result in no compensation for the 20 buyer’s firm despite The successful performance. Additionally, a sellerengage who other did brokers not listwhothe property and is 101 SUBAGENCY: broker may, with your authorization in the agency agreement, assist your broker 21 COMPENSATION: Broker's be: [Check "SUCCESS FEE", ORA 102 by“for providing brokerage services forcompensation your benefit.to A shall subagent will not put the subagent's own"OTHER interests COMPENSATION", ahead of your interests. selling sale by owner” could refuse pay the buyer’s firm. 22 aswill applicable] SUCCESS FEE: of the to purchase priceif or 103 BOTH, subagent not, unless required by law, provide advice or% opinions other parties doing so is contrary to your interests.

23 greater.THIS OTHER COMPENSATION: Collecting theisREVIEW Buyer’s Firm’s Fee 104 whichever PLEASE INFORMATION CAREFULLY. A broker or salesperson can answer your questions about 24 buyer’s firm’s fee may be paid by the buyer, owner/seller, owner/seller’s agent, or by a combination The 105 brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an 25 INSERT THE AMOUNT AND TYPE OF OTHER FEE, E.G. RETAINER FEE, OR HOURLY FEE attorney,For tax a advisor, or receive home inspector. is required by section 452.135client, of the Wisconsin statutes of106 sources. firm to funds This fromdisclosure someone other than the firm’s the client must give 26 this isAgreement calls for a success fee, itlanguage is agreedsummary that Broker earnedduties the success fee if, during the term of(2)this 107 Ifand for information only. It is a plain of ahas broker's to you under section 452.133 permission in the agency agreement. When a listing firm is going to pay a buyer’s firm’s fee, theof firms 27 (or any extension of it), Buyer or any person acting on behalf of Buyer acquires an interest in property or enters 108 Agreement the Wisconsin statutes. will compensation agreement. agreement may be an offer of and cooperation 28 have into anaenforceable written contract between The ownercompensation and Buyer to acquire an interest in property, at any terms price 29 compensation acceptable to owner and Buyer . Broker's compensation remains due and payable if an enforceable written contract entered 109 and for firms participating in the MLS or it could be a separate policy letter between CONFIDENTIALITY NOTICE TO CLIENTS: Broker will keep confidential any information given to Broker in the 30 into by Buyer per lines 26-29 fails to close . Once earned , Broker's compensation is due and payable at the earlier of closing 110 confidence, or any information obtained by Broker that he or she knows a reasonable person would want to be kept firms. Payment is dependent upon the firm meeting the standard of performance. For MLS transactions, 31 orconfidential, the date setunless for closing, unless otherwise agreed in writing. 111 the information must be disclosed by law or you authorize Broker to disclose particular information. the standard of performance is procuring cause. 32

(may not) accept compensation ownerproviding or owner's agent. (Broker accept ONE confidential 112 Broker Broker(may) shall continue to keep STRIKE the information after Broker isfrom no longer brokerage servicesmay to you. 33 compensation from owner or owner's agent if neither is struck.) Broker's compensation from Buyer will be reduced by any 113 THE FOLLOWING INFORMATION IS REQUIRED TO BE DISCLOSED BY LAW: Lines 35-42 Broker’s Duties 34 amounts received from facts, ownerasordefined owner'sinagent. 114 1. Material adverse section 452.01 (5g) of the Wisconsin statutes (See lines 170-173). 35 BROKER'S DUTIES: In consideration for Buyer's Broker in agrees to use professional and 115 2. Any facts known by the broker that contradict any agreements, information included a written inspection report knowledge on the property 36 skills, or and reasonable 1) locate antransaction. interest in property, unless Broker is being retained solely to negotiate the 116 real estate thatefforts, is the to: subject of the To ensure that the broker is aware of what specific information 37 procurement of an interest in a specific property, 2) negotiate the(See procurement of an interest in property, as may required, 117 you consider confidential, you may list thatand information below lines 119-120). At a later time, you also 38 by giving advice Buyer within scope of you Broker's license, or participating in the discussions of the terms 118 provide the to broker with otherthe information consider to befacilitating confidential. 39 ofCONFIDENTIAL a potential contract, completing appropriate contractual forms, presenting either party's contractual proposal with an 119 INFORMATION: 40 explanation of the proposal's advantages and disadvantages and other efforts including but not limited to the following: 120 41 NON-CONFIDENTIAL INFORMATION (The following may be disclosed by Broker): 121 42 unless Broker is retained solely to locate an interest in property. 122 43 EARNEST MONEY: If Broker holds trust funds in connection with the transaction, they shall be retained by Broker in 123 WAIVER OF CONFIDENTIALITY : Buyer may wish tomoney authorize Broker tobuyer’s disclose information otherwise be The duties set Broker the standards performance thetrust firm Broker suchwhich as might using professional 44 firm’s Broker's trust account. may refuse tofor hold earnest orby other funds. Should hold the earnest money, 124 considered confidential. An example of this type of information might be financial qualification information which may be 45 Buyer authorizes Broker to disburse the earnest money as directed in a written earnest money disbursement agreement signed knowledge, skill, and reasonable effort to locate an interest in property for the buyer and negotiating 125 strengthen Buyer's offertrust to funds. purchase/lease proposal in totheclose eyesand prospective sellers/landlords. Broker's 46 procurement bydisclosed all partiestohaving an interest in the Ifdesired the transaction fails the earnest is disbursed to Buyer, any the of the interest in property by the buyer. A ofbuyer can money use line 41 to include 126 authorization to disclose bethe indicated lines 121-122. Unless provided at lines , Broker made has permission 47 then upon disbursement to may Buyer earnestatmoney shall be paid firstotherwise to reimburse Broker for 119-120 cash advances by Broker additional requirements such as sending updates forparties newlywithout listedprior properties thatBuyer. fit the buyer’s 127 tobehalf disclose Buyer's identity to owner, owner's weekly agents and other third consent from Buyer 48 on of Buyer. search parameters. 128 that pursuant toBuyer Wisconsin Statute section a conveyance, anrace, offer to purchase, is not 49 acknowledges NON DISCRIMINATION: and Broker agree 706.03(1)(b)(1m) that they will not discriminate such basedason color, sex, sexual 129 binding if itas is signed properly§111.32(13m), authorized by Buyer (e.g.,religion, with a power of attorney) such status, time as lawful Buyer 50 orientation definedbyina representative Wisconsin Statutes disability, national origin,until marital Lines Relationship 130 is131-134 identified inNon-Exclusive theage, conveyance. 51 source of income, ancestry, familial status or in any other unlawful manner. 131 NON-EXCLUSIVE RELATIONSHIP: Buyer acknowledges and agrees that Broker may act for other buyers in connection 132 with the location of properties and may negotiate on behalf of such buyers with the owner or owner's agent. In the event that Phone: 133 Broker undertakes to Fax: represent and act for other buyers, Broker shall not disclose to Buyer, or any other buyer, any confidential ZipForm™ by REby FormsNet, 134 information of anyProduced buyer,with unless required law. LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipform.com

A 135 buyer COOPERATION: acknowledgesBuyer that agrees the firm may bewith acting buyers the same orallother transactions. to cooperate Brokerfor and other to provide Broker in accurate copies of relevant records, 136 example, For a buyer’s firminmay buyers who areinboth writing offers on option, the same documents and other materials Buyer'srepresent possession ortwo control which are required connection with the purchase, 137 exchange lease of firm property. Buyerdisclose agrees to information be reasonably about availableone for showings properties. Buyer authorizes property. The orbuyer’s cannot buyer toof another. 138 Broker to do those acts reasonably necessary to fulfill Broker's responsibilities under this Agreement including retaining 139 subagents. Buyer shall promptly notify Broker in writing of the description of any property Buyer locates. Buyer shall also 140 notify Broker of the identity of all persons making inquiries concerning Buyer's objectives stated in this Agreement.

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REAL ESTATE SALES

Lines 141-145 Property Dimensions

Page 4 of 5, WB-36

5, WB-36 141 PROPERTY DIMENSIONS: Buyer acknowledges that property dimensions, total square footage andPage total5 ofacreage 182 ADDITIONAL PROVISIONS: 142 information provided to Buyer may be approximate due to rounding and may vary due to different formulas which can be 183 143 used to calculate these figures. Unless otherwise indicated, property dimension figures have not been verified by survey. 184 144 CAUTION: Buyer should verify any property dimension or total square footage/acreage calculation which is Page 5 of 5, WB-36 185 145 material to Buyer. 182 ADDITIONAL PROVISIONS: 186 183 187 A 146 buyerDEFINITIONS: should recognize that property dimensions are approximate due to rounding or different 184 188 calculation formulas. dimensions of aanyproperty or total square footage are material to a buyer, the 147 ADVERSE FACT: AnIf"adverse fact" means of the following: 185 189 148 (a) buyer should purchase a survey or use some other verifyasmeasurements. A condition or occurrence that is generally recognized by amethod competenttolicensee doing any of the following: 186 190 149 1) Significantly and adversely affecting the value of the property; 187 191 The attached ADDENDA: Lines Term of the Addenda Agreement 150 193-196 2) Significantly reducing the structural integrity of improvements to real estate; or 188 192 is/are made a part of this Agreement. 151 3) Presenting a significant health risk to occupants of the property. 189 193 , TERM OF THE AGREEMENT: From the day of 152 (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations 190 up to and including midnight of the , . 194 day of under a contract or agreement made concerning the transaction. 153 191 Notwithstanding The ADDENDA: 195 linesattached 193-194,Addenda Broker and Buyer agree that this Agreement shall/shall not STRIKE ONE end [if neither 154 "Buyer", as used this when Agreement, is the party Agreement and seeking acquire anAgreement. interest in 192 BUYER: is/are made to a part of this 196 struck, this Agreement shallinend] Buyer procures an executing interest in this property. 155 estateOF or aTHE business opportunityFrom byNeither purchase, lease, or any other manner. 193 realTERMINATION , 197 OF AGREEMENT: noroption, Broker exchange has the legal right to unilaterally terminate this Agreement TERM AGREEMENT: the Buyer day of DEADLINES-DAYS: Deadlines expressed asthe a number of "days" from an such asthis acceptance, calculated byfinds , are . 194 A 156 buyer and aincluding firm breach can decide whether buyer agreement terminates when buyer day ofagency up to and midnight of the 198 absent a material of contract by the other party. Buyer understands thatevent, the parties to Agreement arethe Buyer and the 157 excluding the day the event occurred and by counting subsequent calendar days. 195 Notwithstanding lines (salespersons) Brokerfor and Buyer(firm) agree Agreement not STRIKE ONE end [if neither 199 Broker (firm). Agents Broker dothat not this have the authority to line terminate this the for a 158 property or whether it193-194, continues by striking “shall” or “shall not”shall/shall on 195. If Agreement, a buyer isamend looking Delivery of shall documents or written notices related to this in Agreement may onlyofbethe accomplished by: 196 DELIVERY: struck, this Agreement end] when Buyer procures an interest property. 200 compensation terms or shorten the term of this Agreement, without the written consent agent(s)' supervising broker. just one property, the buyer and firm would strike “shall not” so that the agreement reads that “this 159 1) giving the document written notice personally to Broker the party; 197 Buyer TERMINATION OF AGREEMENT: Neither nor haseither the legal to unilaterally terminate this194 Agreement 201 and Broker agree thatorany termination ofBuyer this Agreement by partyright before the date stated on line shall be Agreement end Buyer procures an interest inprepaid property” and the agreement would terminate 160 thewhen document or written notice postage or fees or the charged totoan account in the U.S. Mail orthe a 2) depositing 198 indicated absent ashall material breach of contract by theshall othernot party. Buyer understands that this Agreement are Buyer andlines 202 to the other party in writing and be effective until delivered toparties the other party in accordance with 161 commercial delivery system, addressed to the party, at the party's address (See lines 220, 226 and 232 ); once buyer finds a property, even if that is before the date on line 194. If a buyer is hiring the 199 the Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to terminate this Agreement, amend the 203 158-163. CAUTION: Early termination of this Agreement may be a breach of contract, causing the terminating party to firm 3)multiple electronically transmitting theterm document or written notice to the fax number lines 222,supervising 228 and 234) ; not and end 200 compensation terms ordamages. shortenthe the of thiswould Agreement, without theparty's written consent of (See the agreement agent(s)' broker. to162 locate properties, parties strike “shall” and the agency would 204 potentially be liable for 163 as otherwise agreed in additional provisions on lines 182-190 or in an addendum to this Agreement. 4) 201 the Buyer and on Broker agree that any termination of this Agreement partyfor before the date stated 194property shall be 205 EXTENSION OF AGREEMENT TERM: The Agreement termbyiseither extended a period of one yearon asline to any until date line 194. 164 PROPERTY: "interest in property" toorbenegotiated obtained by by Buyer purchase, leasehold, option, 202 INTEREST indicated to IN the other writing andwas: shall be effective until delivered to includes the Broker's othera party in accordance with lines 206 which during the term party of thisinThe Agreement 1)not located for Broker, agent, Buyer or any person 165 exchange agreement or anyor other procured interest in realofproperty unless restricted at lines 11-20,by in Buyer additional provisions 203 158-163. CAUTION: Early termination of this Agreement may be a breach of contract, causing the terminating party to 207 acting on behalf of Buyer, 2) which was the subject a written offer to purchase submitted or any person Lines 205-210 Extension of Agreement Term 166 182-190) orofelsewhere in this Agreement. 204 (lines potentially be liable for damages. 208 acting on behalf Buyer. If this extension is based on Broker's or Broker's agent's location or negotiation, this extension 167 INTEREST IN PROPERTY: an interest inisproperty" shall mean, in days this Agreement, to 205 LOCATE OF AGREEMENT TERM: "Locate The Agreement term extended for ano period of used one year as to anyexpiration property 209 shallEXTENSION only AN be effective if a written description of the property is delivered to Buyer later as than three after 168 evaluate according the standards Buyer, determine theBroker, availability of theagent, interest sought by person Buyer 206 identify, which during the term of thistoAgreement was:set 1) by located or and negotiated for by Broker's Buyer or any 210 of this Agreement. 169 a property. 207 in acting on behalf of Buyer, 2) which was the subjectYou of amay written offerinformation to purchase submitted by offender Buyer orregistry any person 211 NOTICE ABOUT SEX or OFFENDER REGISTRY: obtain about the sex and 170 MATERIAL ADVERSE Aextension "material adverse an adverse factlocation a orparty indicates of such 208 acting on registered behalf of Buyer. If thisregistry based onfact" Broker's or Broker's agent's negotiation, extension 212 persons withFACT: that by iscontacting the means Wisconsin Department ofthatCorrections on thethisisInternet at 171 that is generally byofat athe competent as being of such significance to days a reasonable party, 209 significance, shall only be or effective if a written description property licensee is delivered to Buyer no later than three after expiration 213 http://www.widocoffenders.org orrecognized by telephone (608)240-5830. 172 it affects or would affect party's decision to enter into aACKNOWLEDGES contract or agreement concerning or affects 210 that of this Agreement. 214 READING/RECEIPT: BYtheSIGNING BELOW, BUYER RECEIPT OFa transaction A COPY OF THIS 173 or would affect the party's decision about the terms of such a contract or agreement. 211 AGREEMENT 215 AND THAT HE/SHE HASREGISTRY: READ ALL You FIVEmay PAGES ASinformation WELL AS about ANY ADDENDA AND ANY OTHER NOTICE ABOUT SEX OFFENDER obtain the sex offender registry and 174 Like listing registered firmTHE andPROCUREMENT protected buyers, a buyer’stheIN firm can extend the term of the agreement for in some OFTHIS INTEREST PROPERTY: "Negotiate procurement an Internet interest 212 aNEGOTIATE persons with that registry byANcontacting Wisconsin Department oftheCorrections onofthe at 216 DOCUMENTS INCORPORATED INTO AGREEMENT. 175 shall mean, as used or in by thistelephone Agreement, to contact the owner of the property or the owner's agent to ascertain 213 property" “protected properties.” http://www.widocoffenders.org at (608)240-5830. 217 Dated this and conditions BY day of ,Buyer 176 terms upon which theBELOW, interest BUYER may be ACKNOWLEDGES obtained and to otherwise assist in reaching an 214 the READING/RECEIPT: SIGNING RECEIPT A to COPY OF THIS A 177 firm can protect properties for which the inbuyer or buyer’s firm submits an OF offer purchase on a to procure the interest sought by Buyer the property as may be specified in this Agreement. 215 agreement AGREEMENT AND THAT HE/SHE HAS READ ALL FIVE PAGES AS WELL AS ANY ADDENDA AND ANY OTHER 218 (x) property. A firm can also protect properties for which the buyer did not submit an offer if the firm, 178 ACTING ON BEHALF OF BUYER: In this Agreement "Person acting on behalf of Buyer" shall mean any person the 216 PERSON DOCUMENTS INCORPORATED INTO THIS AGREEMENT. 219 Buyer's Print Here: Date 179 joined inSignature interest with Buyer,on or otherwise acting behalf oflocated Buyer, including but not limited Buyer's immediateduring family, the buyer, or someone acting behalf of theonbuyer orName negotiated for tothe properties 217 Dated this day of , 180 agents, servants, employees, as well as any and all corporations, partnerships, limited liability companies or other entities 220 term of the agency agreement. To protect these properties, the firm must submit written descriptions of 181 controlled by, affiliated with or owned by Buyer in whole or in part. 221 Buyer's Address Buyer's Phone # The buyer’s 218 the properties to the buyer within three days after the expiration of the agency agreement. (x) 222 219must Buyer's Signature Printdelivery Name Here: Date firm deliver the list by one of the methods listed in the section of the WB-36. Email is not 223 Buyer's Fax # Buyer's E-Mail Address a pre-printed method of delivery. 220 221 Buyer'sacquires Address an interest in a “protected property” during the one-year (x) Buyer's Phone # period, the If 224 a buyer extension 225 Date Print Name Here: 222 Buyer's Signature

buyer’s firm would represent the buyer during the transaction and would earn the success fee that the 223 Buyer's Fax # Buyer's E-Mail Address 226 parties included in the buyer agency agreement. 227 224 Buyer's Address

Buyer's Phone #

(x) Unlike protected buyers and the WB-1 Residential Listing Contract, protected Date properties are not 228 225 Buyer's Signature Print Name Here: 229 Buyer's Faxexcluded automatically from a subsequent buyer agency agreement. The WB-1 Residential Listing # Buyer's E-Mail Address 226 Contract states that the listing contract does not apply to a previous firm’s protected buyers and 227 (x) Buyer's Address Buyer's Phone # 230 seller-excluded buyers. The WB-36 does not contain pre-printed provisions automatically excluding 231 228 Agent for Broker Print Name Here: Broker/Firm Name Date a 229 previous firm’s agent is executing an agency agreement with Buyer's Fax # protected properties. If a buyer’s Buyer's E-Mail Address 232 previously represented buyer, the firm can ask the buyer for information on the former firm’s protected 233 Broker/Firm Phone # Address 230 Broker/Firm (x) properties. IfProduced the buyer does not have that information, the new firm can contact the former firm and with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipform.com 234 231 Agent for Broker Print Name Here: Broker/Firm Name Date get accurateFax list. 235anBroker/Firm # Broker/Firm E-Mail Address

232 Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipform.com 233 Broker/Firm Address Broker/Firm Phone # 66 234 235 Broker/Firm Fax # Broker/Firm E-Mail Address Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026

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4

Disclosure Obligations Wis. Stats. 452.139, 452.23, 452.24, 703.88, 709 REEB 24.04, 24.07

Chapter Overview

Real estate licensees must observe strict disclosure obligations. Unfortunately, determining what a licensee or a seller needs to disclose is not always an easy decision. This chapter provides an understanding of disclosure ­obligations and guidelines for determining what information a licensee or a seller must disclose in a transaction. 0-bedroom dwelling DISCLOSURE asbestos icensees must not misrepresent facts or lead-based paint hazard information material to a transaction. Licensees misrepresentation may find it difficult to determine the difference mold between emphasizing the benefits of a property, radon which is known as “puffing,” and misrepresenting real estate condition report facts about a property, which could create civil target housing liability or other sanctions for the licensee. underground storage tank

Important Terminology

L

“The house has rustic charm” may be puffing if, for example, the property had chipping exterior paint, slanted porch stairs and tilted shutters. It is misrepresentation, however, for a licensee to say, “The home needs a little TLC, but the foundation is in great shape” when the licensee knows that the house has a poor foundation.

. A licensee can and should emphasize the benefits of a property but a licensee should never misrepresent information about a property. Misrepresentation is a false statement or concealment of a material fact made with the intention of inducing some action by another party. The law considers a licensee to have superior knowledge regarding real estate transactions and a buyer or a seller could interpret a licensee’s statement of opinion to be a statement of fact. Because of this, licensees must be careful about statements made about a property or transaction.

A buyer and licensee are standing outside a home looking at the exterior. The buyer says, “The roof looks good.” The agent responds, “Sure does.” What if the buyer was referring to the condition of the roof and the agent was referring to the color of the shingles? Buyers and sellers tend to believe that because licensees deal with property regularly, licensees are experts on everything from zoning law to construction standards. Licensees must avoid reinforcing this belief. Buyers and sellers need to understand the role of the real estate firm in a transaction and the limits of a licensee’s expertise. Real estate licensees cannot practice law, give tax advice, or provide expertise on environmental, health issues, or building construction. Buyers and sellers will want licensees to provide tax advice, zoning information, and legal advice but, to avoid liability, licensees must be careful to steer buyers and sellers to appropriate referral sources rather than provide the information. Real estate licensees need to partner with experts who can provide buyers and sellers with the information they need to complete the real estate transaction.

67

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LIABILITY

The supervising broker for a real estate brokerage firm is responsible for the actions of licensees associated with the firm. Firms are responsible for brokerage services provided on behalf of the firm by any licensee associated with the firm. A listing firm is liable for the misrepresentations of subagents if the listing firm knew, or should have known, of the subagent’s misrepresentations. A licensee should not be held liable for latent defects. In cases of latent defects, where the seller is aware of a defect and does not disclose it to the licensee and the defect is not discoverable by an ordinary inspection, only the seller is liable.

ADVERTISING

Licensees must make accurate statements when advertising or promoting property. Licensees cannot advertise in a manner that is false, deceptive, or misleading. A licensee’s advertisements must contain the licensee’s firm’s name. If the firm is a business entity, the entity’s name must be included in all advertisements. The only exception to the rule requiring identification of the licensee’s firm is when a licensee is advertising for a tenant in a personallyowned rental property. Licensees must have a seller’s consent for any advertisement of a seller’s property. Increasing public awareness of health and safety threats due to a property’s structural or mechanical conditions add additional dimensions to a transaction for licensees. Consumers may demand complete and accurate representations of a property’s condition and licensees and sellers could be held liable if a buyer experiences physical or financial harm caused by inaccurate information. If a buyer or seller incurs harm due to inaccurate, incorrect, or misrepresented information, the party that provided the information could face liability for the damages.

DISCLOSURE OBLIGATIONS

Both sellers and licensees have distinct disclosure obligations. A licensee’s disclosure obligations are separate from a seller’s disclosure obligations. Licensees must consider: 1. What information will a seller disclose in the seller’s real estate condition report? 2. If a seller does not disclose information, must the licensee disclose it as a material adverse fact? 3. Is there information that suggests the possibility of a material adverse fact that a licensee must disclose? All licensees must inspect a property, including vacant land, to detect observable, material adverse facts. Listing, selling, and buyer’s licensees must inspect the property. A listing licensee must inspect the property before executing the listing contract. All other licensees must inspect the property before or during a showing. A licensee does not have to inspect the property if the licensee cannot gain access to the property. State statutes and rules do not define the extent of the inspection but do define what a licensee does not have to do. Licensees do not have to operate mechanical systems, move furniture or boxes, climb ladders or crawl to gain access, or observe areas of the property for which entry would present a risk of injury. For vacant land, a licensee must observe the property from at least one point on or adjacent to the property. Licensees do not need to retain third-party inspectors and investigators to complete the inspection. Licensees must exercise the degree of care reflecting the knowledge, skills, and training required for licensure in Wisconsin. A material adverse fact is an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party’s decision to enter into a contract or agreement concerning a transaction or affects or would affect the party’s decision about the terms of such a contract or agreement.

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DISCLOSURE BY OWNERS OF REAL ESTATE

Before executing a listing contract, a licensee must inspect the property and the licensee must also ask a seller about the condition of the structure, mechanical systems, and other relevant aspects of a property. The licensee must request that the seller respond to this inquiry in writing. Sellers usually respond by completing a real estate condition report (RECR). A real estate condition report provides a seller with an opportunity to disclose known defects about a property. It also gives a listing firm the opportunity to discuss with a seller any property issues that the seller can address before advertising the property. There is not a state-approved RECR form but any form a seller uses must comply with statutory requirements for content and form. Wisconsin Statute Chapter 709, Disclosure by Owners of Real Estate, establishes seller disclosure obligations relating to real estate. Sellers, whether listing with a firm or selling For Sale By Owner (FSBO), must complete a RECR or risk rescission of the offer to purchase. A RECR is not a warranty but a statement of a seller’s knowledge and awareness of the property’s condition. The disclosure law applies to all transfers of vacant land and property containing one to four dwelling units. A dwelling unit is a structure or a part of a structure that is presently used or is intended to be used in the future as a home, residence, or sleeping place by a person or by two or more persons maintaining a common household. Dwelling units include, without limitation, condominium units, time-share property, living quarters in a commercial property, and summer cottages. The following transfers are exempt from Chapter 709: 1. Transfers made by personal representatives, trustees, conservators, or other court-appointed fiduciaries who have never occupied the property. An adult daughter is the personal representative of her deceased mother’s estate. If she never lived in the house that is in the estate, she does not have to complete a RECR. If she lived in the house at any point, even if it was many years ago, she must complete a RECR. This exemption for fiduciaries does not apply to powers-of-attorney. Powers-of-attorney must complete a RECR on behalf of the person selling the property. 2. Real estate that has never been inhabited. A developer selling newly constructed homes does not have to fill out a RECR for the properties. If the developer rented the new construction to tenants while listing it, the developer would have to complete a RECR. A developer who converted a warehouse to lofts would not have to fill out RECRs for the properties because they have never been inhabited. 3. Transfers exempt from the Wisconsin real estate transfer fee. For most real estate transactions in Wisconsin, the party transferring the property must pay the Wisconsin real estate transfer fee. Some transactions, such as transfers between spouses, tax sales, condemnations, and transfers by will are exempt from the real estate transfer fee. If a transfer is exempt from the fee, the person transferring the property does not have to complete a RECR. For estate planning purposes, a wife transfers her interest in a second home to her husband. This transfer is exempt from the Wisconsin real estate transfer fee and she does not have to complete a RECR. A seller can complete a RECR, retain a professional to provide an inspection report to be used as the basis for completing a RECR, or refuse to complete the RECR, and sell the property “as-is.” “As-is” sales are discussed later in this chapter. A property owner is selling a four-unit apartment building and the property owner has never lived in the building. The property owner must complete a RECR. A bank is selling a property the bank obtained by foreclosure. The bank is not exempt from the seller disclosure law.

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A seller of a three-story property that includes retail space on the first floor, office space on the second floor, and four apartments on the third floor must complete a RECR because the property includes four dwelling units. The RECR should address the condition of the entire property, not just the dwelling units but also the retail and office space. When a seller lists a condominium unit, the seller must complete the RECR with regard to the actual unit that the seller is transferring, the common elements such as the parking lot or lobby, and any limited common elements such as a storage space or patio. Seller Completion of a RECR When a seller completes a RECR, the seller is stating whether the seller is aware of defects and conditions affecting the property. A defect is a condition that has 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 affect the expected normal life of the premises. A failure to disclose a known condition or defect or a seller’s misrepresentation regarding a condition or defect could give a buyer grounds for a lawsuit for breach of contract or misrepresentation. Sellers should complete a RECR without assistance from the licensee. The RECR is a statement of a seller’s actual knowledge of a property’s condition and not a speculative report about what conditions might affect the property. If a seller needs assistance filling out a RECR, the seller should enlist the help of a family member, friend, attorney, or other person. If a licensee assists a seller when completing a RECR, the seller may perceive the assistance as advice or coaching of the seller’s answers, which could create liability for a licensee if the RECR does not accurately reflect the condition of the property or if a party later disputes a seller’s answers to the questions in the RECR. When sellers have questions about whether an item constitutes a defect, licensees can tell sellers that they may explain the condition on the report but if the seller wants a legal opinion as to whether a condition rises to the level of defect, the seller needs to contact an attorney for a legal opinion. Amending a RECR If the seller obtains information or becomes aware of a condition that changes a response on a completed RECR before the seller accepts an offer, the seller should amend the RECR. The seller does not have a duty to amend a RECR if new information or a condition arises after the seller has accepted an offer. The offer to purchase controls the buyer’s and seller’s obligations for condition issues after a seller accepts an offer. A seller completes a RECR at the time of listing based on the seller’s current knowledge condition of the property. The seller accepts an offer and, after accepting the offer, the seller becomes aware of roof damage from a recent storm. The accepted offer to purchase controls what the seller must do about the damage. The seller does not have to amend the RECR and may not need to notify the buyer of the damage. The WB-11 Residential Offer to Purchase at lines 208-217 states “If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the selling price, Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance ­proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller’s deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Property.” If a seller refuses to complete a RECR, the licensee should explain to the seller that the RECR is a condition statement of the property, not a warranty and that potential buyers may have rescission rights if the buyers do not receive a RECR according to the terms of the offer.

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Licensees should not advise sellers that they do not need to complete a RECR, even if a seller expresses an intent to sell a property “as-is.” Telling sellers not to complete a RECR is advising the seller contrary to what the law requires. Licensees should refer sellers with questions about whether to note something on a RECR or whether to complete a RECR to an attorney for legal advice. Licensees cannot give legal advice and cannot dissuade any party from seeking legal counsel. Buyer Rescission A buyer may not rescind an offer or option based on a defect disclosed in a seller’s RECR if the buyer was aware, or had written notice of the nature and extent of the defect at the time the buyer submitted the offer. If a buyer receives a seller’s RECR disclosing a defect after the buyer submitted an offer to ­purchase, the buyer may be able to rescind the contract. A buyer can rescind an offer if the seller does not provide a RECR within 10 days of accepting the buyer’s offer. If a seller discloses the full nature and extent of defects in a RECR and a buyer receives the RECR in a timely fashion, the buyer cannot later hold a seller liable for harm due to the defects. Because disclosing defects can eliminate a buyer’s rescission rights and could insulate a seller from liability for harm caused by disclosed defects, it may be to a seller’s advantage to overdisclose and provide many details. If a buyer wants to rescind an offer, the buyer must do so in writing and deliver the rescission to the seller within two business days after the deadline for the seller to supply the RECR.

“AS-IS” SALES

The seller disclosure law does not prohibit a seller from selling or listing a property “as-is.” A buyer, however, still has rescission rights if the seller chooses not to furnish a RECR within 10 days of an accepted offer. Generally, an “as-is” clause alerts a buyer that the buyer is responsible to determine the condition of the property through inspections, evaluations, or other methods. Selling a property “as-is” does not exempt a seller from making disclosures about a property. Even when a seller is selling or listing a property “as-is,” a seller must exercise the duty of ordinary care in refraining from any act that may cause foreseeable harm to another, or create an unreasonable risk to others. Sellers of “as-is” property may be liable for misrepresentation for actively concealing a defect or preventing a buyer from inspecting a property and discovering a defect. Sellers could also face liability for failing to disclose material conditions that a buyer is in a poor position to discover. Selling or listing a property “as-is” does not give a seller an escape from a seller’s obligation to disclose property conditions. When sellers list or intend to sell property “as-is,” it is often because a seller does not intend to correct any known defects about the property or where a seller does not have knowledge of a property’s conditions or defects such as when a bank is selling a property the bank obtained through foreclosure. When a buyer is making an offer on an “as-is” property, it is very important for a buyer to evaluate the condition of the property by inspecting or hiring experts to conduct inspections or evaluations as conditions of the offer. An “as-is” sale does not diminish or alleviate a licensee’s disclosure obligations. Licensees must still conduct a reasonably competent and diligent property inspection of an “as-is” listing and disclose known material adverse facts or information suggesting material adverse facts in writing to all parties. A licensee cannot waive this obligation under any circumstance, including an “as-is” listing.

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LICENSEE DISCLOSURE OBLIGATIONS

Licensees must disclose all known material adverse facts that a party does not know or cannot discover through a reasonably vigilant observation and all information suggesting material adverse facts. Disclosure must be in writing and in a timely manner. Deciding which facts or information require disclosure can be difficult and licensees should consult with a supervising broker. A licensee learns that a buyer is not going to apply for financing as stated in the buyer’s offer. The buyer has decided not to purchase the property and is going to tell the seller that financing was not available. A licensee must disclose this information, even if the licensee is the buyer’s agent. During an inspection of a property, a licensee sees a cloth-type wrapping insulating the water pipes in the basement of an older home. The licensee thinks this insulation may be asbestos and asks the seller if the seller is aware of asbestos on the property. The seller is not aware of any asbestos on the property and indicated this on the seller’s RECR. The seller does not have to test for asbestos and does not have to amend the seller’s RECR, but the licensee must decide if the cloth-type insulation is information that suggests the possibility of an adverse fact, such as asbestos on the property. There are situations where a licensee is not required to disclose information that may constitute a material adverse fact. 1. Licensees do not have to disclose information contained in a written report, prepared by a qualified third-party that has been given to all parties. A buyer hires a home inspector to perform an inspection. The home inspector finds a defect and notes it on the home inspection report. The buyer receives a copy of this report and gives a copy of the report to the listing licensee and seller. A licensee does not need to disclose to the buyer or seller any of the information included in the report because the buyer and seller already have a copy of that information. Licensees can rely on the results of a home inspection if the report has been provided to all parties. If a licensee has information that contradicts any third-party report, the licensee must disclose the contradictory information to all parties in writing. 2. L  icensees do not have to disclose that a notorious or stigmatizing event happened at a property unless the event physically affected the property. A notorious or stigmatizing event might be a murder, suicide, reported haunting, or some other event that could affect a property without physically affecting the structure of the property. A seller may not be exempt from disclosing this information with a RECR as a condition affecting the property and sellers with questions regarding disclosure obligations on stigmatized properties should consult an attorney. 3. L  icensees do not need to disclose the presence of certain family homes, communitybased residential facilities, and nursing homes. The law does not prohibit a licensee from disclosing the presence of these properties but a licensee does not have a duty to disclose them. Before a licensee discloses the presence of one of these properties, the licensee should first determine whether disclosure violates federal or state fair housing law. When advertising a property, a licensee should focus on the criteria of the property, not the people selling, buying, or living around the property.

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4. L  icensees do not need to disclose information about known sex offenders if the licensee provides the party who requested the information with written contact information for the Wisconsin Department of Corrections’ sex offender registry. The contact information must contain the Department’s website and toll-free phone number. All WRA real estate condition reports and state-approved agency contracts include the telephone number and website for the Wisconsin Department of Corrections’ sex offender registry. If a party asks a seller or a licensee about whether a person must register as a sex offender, the location of sex offenders in the neighborhood, or any other information about the sex offender registry, the licensee must disclose the licensee’s actual knowledge regarding the inquiry. A licensee is immune from liability for not disclosing known information as long as the licensee provides written notice of the contact information for the sex offender registry. Instead of responding to the inquiry, a licensee can comply with the disclosure obligation regarding sex offenders by providing the party with the information for accessing the sex offender registry. As part of the Sex Offender Apprehension and Felony Enforcement (SAFE) initiative, the registry provides current, reported, residence address for registered sex offenders in a community.

CONDOMINIUM DISCLOSURE REQUIREMENTS

Wisconsin Statute Chapter 703 Condominiums requires condominium-specific disclosure obligations of Wisconsin condominium sellers. Wisconsin’s condominium law balances the rights of the individual condominium unit owner and the rights of all the condominium owners as exercised by the condominium association. The law encourages condominium associations to develop prudent reserve funds policies for the repair and replacement of common elements, such as roofs or parking lots. The law defines the documents a condominium seller must provide to a potential buyer. The disclosure documents provide a potential buyer with the materials needed to understand a condominium owner’s rights and obligations before completing the transaction. Within 10 days of accepting an offer and no later than 15 days before a transaction closes, a condominium seller must provide the potential buyer with the following documents. 1. A  copy of the proposed or existing declaration, bylaws and any rules or regulations, together with an index of the contents. 2. A copy of the proposed or existing articles of incorporation of the association, if it is, or is to be, incorporated. 3. A copy of any proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all or part of the condominium to which it is anticipated the unit owners or the association will be a party following closing. 4. A copy of the projected annual operating budget for the condominium including reasonable details concerning the estimated monthly payments by the buyer for assessments, and monthly charges for the use, rental or lease of any facilities not part of the condominium. 5. A copy of any lease to which it is anticipated the unit owners or the association will be a party following closing. 6.  A description of any contemplated expansion of the condominium with a general description of each stage of expansion and the maximum number of units that can be added to the condominium. 7. A copy of the floor plan of the unit, together with the information that is necessary to show the location of the common elements and other facilities to be used by the unit owners and indicating which facilities will be part of the condominium, and which facilities will be owned by other unit owners. 8. An executive summary setting set forth the disclosure materials in clear language. 73

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Executive Summary The executive summary gives a potential buyer an index to the disclosure materials, which often consist of many pages of information. The summary guides potential buyers through the many disclosure documents and provides an overview of material contained in the disclosure documents. There is not a state-approved executive summary form. The WRA’s Executive Summary is in the Forms Appendix of this book. The declarant, developer, or the condominium association prepares the executive summary. The summary should explain the information contained in the disclosure documents in plain, clear language and specifically refer to the location of information in the disclosure documents. The executive summary should include:  • Condominium identification - the name of the condominium. • Governance - the name and address of the condominium association, whether the association is self-managed or has delegated management to a third-party and the name and contact information for the person that provides the general condominium information. • Parking - a description of parking availability, restrictions, and costs. • Pets - a description of the rules relating to pets. • Unit rentals - whether unit owners may rent their units and any restrictions on rentals. •S  pecial amenities - a description of special amenities like a golf course or athletic club and any unit owner’s obligation, such as membership or dues for use of the amenity. •U  nit repair and maintenance responsibilities - a description of a unit owner’s repair and maintenance responsibilities. • Common element and limited common element maintenance, repair, and replacement - identity of the person responsible for the maintenance, repair, and replacement of the common elements and the limited common elements, and whether a unit owner pays for upkeep through unit assessments, reserve funds, or both. • Reserves - whether the association has reserves for common element repairs and replacements and whether the reserves are in a statutory reserve account. •F  ees on new units - a description of any provisions exempting the declarant or modifying the declarant’s obligation to pay condo maintenance fees on unsold units during the declarant control. Declarant control refers to that period of time when the declarant exercises the powers and responsibilities of the association while construction is completed and new units are sold (up to 10 years for expandable condominiums, up to three years for other projects). •E  xpansion plans - description of any condominium expansion plans, the deadline for completion of any expansion, and responsibility for management during the expansion period. •U  nit alterations - description of the rules, restrictions, and procedures for unit owners who want to alter units or enclose limited common elements. • Amendments - a description of the process for amending bylaws or declarations and a notice to the buyer that by amending the declaration or bylaws, an association can alter unit owner’s rights and responsibilities. • Other restrictions or features - optional. A condominium seller must include a copy of the executive summary following the index in the condominium disclosure materials and must attach a copy as an addendum to the seller’s RECR. The declarant, developer, or the association, whichever is in control of the condominium, is responsible for preparing the executive summary and revising it to reflect changes to the disclosure materials. A licensee or a seller should not prepare the executive summary. A “small condominium” of up to 12 units can choose to use abbreviated disclosure materials that do not include an executive summary.

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Condominium Addendum to the RECR Sellers of condominiums must include a condominium addendum with the seller’s RECR. There is not a state-approved condominium addendum to the RECR. The WRA’s Condominium Addendum to the RECR is in the Forms Appendix of this book. The condominium addendum supplements the information a seller provides in a RECR and provides a potential buyer with the unit address and description, contact information for the seller or the listing agent, association management information, and budget and condo maintenance fee information. The condominium addendum to the RECR also instructs the seller to attach a copy of the executive summary to the RECR. Sellers can also attach a copy of the current budget to the RECR to provide potential buyers with information regarding the seller’s current fees for the condominium unit. Condominium Documents Condominium sellers do not have to provide condominium disclosure materials to all interested buyers. It is only after a seller has accepted an offer that the seller must provide the disclosure documents. This is because the documents are often lengthy and a seller may only have one copy of the documents. Creating multiple copies for all interested buyers would be time consuming and costly for a seller so the law and the terms of the condominium offer only require a seller to provide copies to buyers from whom the seller has accepted offers. When a seller provides condominium disclosure documents, the seller shall provide a cover sheet, an index, and tables of contents as prescribed under state law. The cover sheet and index shall precede all the other required condominium disclosure materials. The seller shall include the executive summary immediately following the index and tables of contents shall precede the sections to which they apply. A condominium seller must furnish the buyer with a copy of the documents within 10 days of accepting the buyer’s offer and no later than 15 days prior to closing. Any buyer may rescind an offer to purchase a condominium unit, without stating any reason and without liability, within five business days following receipt of the condominium documents. Once the seller provides the condominium documents, the potential buyer has five business days to review the documents and decide whether to proceed with the transaction or rescind the offer. A buyer can rescind the offer for any reason and does not need to provide the seller with any explanation or reason for rescission of the offer. If the buyer receives all of the required condominium disclosure documents, the buyer has five business days to rescind the offer in writing, without stating any reason and without liability. If the buyer receives condominium disclosure documents that are missing one or more of the documents required, the buyer has five business days to either rescind the offer in writing, without stating any reason, or to request that the seller deliver the missing documents. If the buyer neither rescinds nor requests missing documents within the five business days, then the delivered materials are deemed satisfactory and the buyer has no further right to rescind based upon those materials. The seller has five business days following receipt of a buyer’s request for missing documents to deliver the missing documents. The buyer may rescind the sale within five business days following the earlier of the buyer’s receipt of the requested missing documents or the seller’s deadline for delivering the documents.

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ENVIRONMENTAL CONCERNS Lead-Based Paint Studies suggest that lead exposure from deteriorated residential lead-based paint, contaminated soil, and lead in dust are among the major existing sources of lead exposure among children in the United States. Lead poisoning in young children may produce permanent neurological damage including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. As a result of federal, state, and local efforts to reduce lead in the environment, the percentage of children with elevated levels of lead in their blood has declined considerably over the last 20 years. Approximately 1.7 million children, however, still have blood-lead levels high enough to raise health concerns. The Residential Lead-Based Paint Hazard Reduction Act directs the Environmental Protection Agency (EPA) and Housing and Urban Development (HUD) to jointly issue regulations requiring disclosure of known lead-based paint and lead-based paint hazards by persons selling or leasing housing constructed before the phase-out of residential lead-based paint use in 1978. Within this law, Congress recognized lead poisoning as a particular threat to children under age 6 and emphasized the needs of this vulnerable population. This legislation requires sellers or lessors of real property to comply with disclosure requirements. The law also obligates real estate licensees to comply with certain provisions to ensure that sellers and lessors are complying with the law. Violations of lead-based paint disclosure obligations can result in civil and criminal penalties, including triple damages in a private civil suit. The law requiring lead-based paint disclosure uses the following terminology to define the structures, parties, and obligations governed by the law. 1. A  gent means any party who enters into a contract with a seller or lessor including any party who enters into a contract with a representative of the seller or lessor, for the purpose of selling or leasing target housing. This term does not apply to buyers or any buyer’s representative who receives all compensation from the buyer. This means that listing agents, selling agents, and buyer agents, if paid by the seller or through a cooperative brokerage agreement with the listing agent, are “agents” for the purposes of this law and are responsible for ensuring compliance under the rule. 2. Lead-based paint hazard means any condition that causes exposure to lead from leadcontaminated dust, lead-contaminated soil, or lead-contaminated paint that is deteriorated or present on accessible surfaces, friction surfaces, or impact surfaces that would result in adverse human health effects as established by the appropriate federal agency. 3. Target housing means any housing constructed prior to 1978, except housing for the elderly or persons with disabilities (unless any child who is less than 6 years of age resides or is expected to reside in such housing) or any 0-bedroom dwelling. If there was a building permit obtained or the construction was started prior to January 1, 1978, it is considered target housing. 4. 0-bedroom dwelling means any residential dwelling in which the living area is not separated from the sleeping area. This term includes efficiencies, studio apartments, dormitory housing, military barracks, and rentals of individual rooms in residential dwellings. 5. Housing for the elderly means retirement communities or similar types of housing specifically designed for households composed of one or more persons 62 years of age or more at the time of initial occupancy. 6. Housing for persons with disabilities means communities or similar types of housing specifically designed for one or more persons with a physical or mental impairment which substantially limits one or more major life activities at the time of initial occupancy.

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The following disclosure and acknowledgment elements apply to all target housing. Each contract to sell target housing must include an attachment containing these disclosures and acknowledgment elements: 1. A lead warning statement containing federally-approved language. 2. A statement disclosing the presence of any known lead-based paint and/or leadbased paint hazards in the target housing, or a statement indicating no knowledge of the presence of lead-based paint and/or lead-based paint hazards. 3. A statement affirming that the buyer has received the information noted above and a copy of the required lead hazard information pamphlet, “Protect Your Family from Lead in Your Home.” 4. A statement that the buyer has received a 10-day opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards (unless the parties have mutually agreed to a different period of time) before becoming obligated under the contract to purchase the housing. Alternatively a buyer who chooses to waive the risk assessment or inspection opportunity must indicate so in writing. 5. A statement by any agent involved in the transaction that the agent has informed the seller of the seller’s disclosure obligation and that the agent is aware of the duty to ensure compliance with the requirements of this rule. 6. The signatures of the seller(s), agent(s), and buyer(s), certifying the a ­ ccuracy of their statements on the attachment, along with their dates of signature. The WRA created Addendum S to help meet the compliance requirement. A copy of Addendum S is in the Forms Appendix. The EPA pamphlet “Protect Your Family From Lead in Your Home” is sold separately. This pamphlet and the WRA Addendum S are also available in Spanish. Other key points for lead-based paint disclosure compliance: 1. HUD and EPA have imposed record keeping requirements on firms and ­sellers. The seller and any agents in the transaction must keep a copy of the completed disclosure and acknowledgment contract attachment for three years from the completion date of the sale. Similarly, a lessor and any agent involved in the transaction must retain a copy of the lease and acknowledgment contract attachment for three years. 2. Sellers must provide buyers with a 10-day opportunity to conduct a risk assessment or inspection for the presence of LBP or LBP hazards before becoming obligated under a purchase contract. This means that the disclosure requirements must occur prior to the binding acceptance of a contract. The 10-day opportunity to conduct a risk assessment or inspection can be modified by mutual agreement of the parties. 3. Agents are required to ensure a seller’s or landlord’s compliance with the law. Agents fulfill this requirement by informing sellers or lessors of their obligations and by making sure these activities are completed either by the seller or lessor. The EPA can seek penalties from the seller or agents in the transaction for violating the lead-based paint law. A buyer who is harmed by the action of a seller or licensee with respect to lead-based paint law obligations can bring a civil lawsuit seeking damages. A seller’s or a landlord’s noncompliance with the law does not affect the validity of the contract.

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Underground Storage Tanks (UST) Underground storage tanks (USTs) store fuel or heating oil for residential or consumptive use. The environmental, safety, economic, and legal concerns resulting from underground storage tanks on a property mandate disclosure and registration obligations for property owners affected by the tanks. USTs can contaminate the soil and ground water. Leaking tanks can affect multiple properties and entire communities. Storage tanks create fire hazards and the possibility of tank collapse threatens a property’s stability and the structural soundness of any buildings located on the property. Owners of properties with USTs may encounter costs not incurred by properties without the tanks. These costs can include general maintenance, tank system and soil testing, tank removal and potential contamination cleanup. In addition, there are legal concerns regarding the determination of responsibility for contami­ nation and third-party damages. Additional resources and more information about underground and aboveground storage tanks can be found at the Department of Agriculture, Trade and Consumer Protection’s (DATCP) website at http://datcp.wi.gov/Consumer/Hazardous_Materials_Storage_Tanks/index.aspx. Wisconsin law requires registration with the DATCP of all USTs storing a regulated product. For information on tanks registration, go to http://datcp.wi.gov/Consumer/Weights_and_ Measures/Tank_Permit_and_Registration/index.aspx. All residential underground storage tanks with a capacity of 1,100 gallon or larger must have a tightness test conducted every two years. If the tank does not successfully pass the tightness test, an investigation must be conducted and the property owner must remedy the problem, which could include removal of the tank and remediation of contamination. Underground gasoline or diesel fuel tank systems used to supply fuel for vehicle or other combustion engines must have corrosion, spill, and overflow protection. Tanks that are no longer in use must have closure. Closure usually requires removal of the tank although specific situations may call for a tank to be closed in place. A neutral-third party must supervise closing of a UST and must complete and submit documentation of the closure to the DATCP. A property owner must notify the DATCP at least 30 days before permanent closure of a UST. DATCP will only permit an out-of-use tank to remain buried if removal would damage the structural integrity of a building or where removal would cause hardship. Before a buyer purchases a home with a UST, a buyer will probably want to test the buried tank. Once a buyer owns a property, the liability for a leaking tank becomes the responsibility of the new owner, even if the new owner was not aware of the tank or any problems with it before purchasing the property. A buyer can expect to pay around $500 to test a property for the presence of an underground storage tank. If a seller is aware of a tank on the property, the seller must disclose this to potential buyers. The WRA has created Addendum A for use in a transaction where the property has a known UST. A buyer of a property with a UST must register as the new owner and responsible party for a UST with the DATCP. Parties can consult the tank registration at the DATCP website. In addition to checking the tank registry, there are signs a party can look for that might indicate the presence of a UST. All tanks must have a fill pipe and a vent pipe. The fill pipe is generally located directly above the tank. The vent pipe may be a distance from the tank, but usually at a location near a building where it can be supported as it is extended above grade. The copper tube fuel supply line is connected to a fuel oil tank and may run through the wall or under and up through the floor to the furnace.

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Asbestos Asbestos is a naturally occurring mineral found in soil and rock in some areas of the United States. The public has long been aware of risks surrounding asbestos and asbestos insulation when it is in a friable state. Inhalation of asbestos fibers is the method of exposure that is most likely to cause adverse health effects for people. Health problems associated with exposure to asbestos include: • Asbestosis - a lung disease • Mesothelioma - cancer of the chest cavity or abdominal wall lining • Lung cancer Asbestos does not cause headaches, sore muscles, or other immediate symptoms. The effects can often go unnoticed for 15-40 years. Generally, friable asbestos fibers are long, thin fibers that are too small to be seen. They float in the air and can easily be inhaled. According to the Environmental Protection Agency (EPA): 1. Asbestos can be identified under a microscope. 2. Asbestos is still mined in places such as Australia, Canada, and South Africa. 3. Researchers have still not determined a “safe level” of exposure. However, they have determined the longer the exposure to asbestos, the greater the risk. 4. If asbestos can be maintained in good condition, the EPA recommends leaving it alone and monitoring its condition. Materials containing asbestos pose a danger when the material is disturbed or damaged causing fibers to separate and become airborne. 5. A  sbestos is used as an acoustic insulator, thermal insulator, fire proofing, and in other building materials. Asbestos fibers are heat-resistant and incredibly strong and are still used in many products such as flooring, roofing, fire proofing, and acoustic insulation. Products that commonly contain asbestos include cement siding, vinyl floor tile, textured paints, spray-applied insulation, fire blankets, roofing shingles, roofing felt, and cooling towers (a complete list can be found at www.epa.gov/asbestos). Vermiculite Vermiculite is a naturally occurring mineral used in construction, insulation, and gardening products and it may contain asbestos. It looks like shiny, small pieces of popcorn and comes in colors ranging from silver-gold to gray-brown. Vermiculite in Insulation Home insulation containing vermiculite was sold from 1963 to 1984 under the product name Zonolite. The EPA estimated in 1985 that 940,000 American homes contained, or had contained, Zonolite attic insulation. If disturbed, asbestos fibers in vermiculite insulation may get into the air. Homeowners should consider the following: 1. Vermiculite used for residential insulation may contain asbestos. 2. If property owners are unsure whether the insulation in their homes contains vermiculite, they should avoid disturbing it until it can be tested for it is vermiculite. 3. Owners should use personal protection when doing minor home projects and seek professional advice for large projects.

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Vermiculite in Garden Products Gardeners have used vermiculite for decades as a soil supplement. It is valued for its ability to hold water, nutrients, and pesticides in the soil, and to enhance aeration and drainage. The EPA warns that consumers should treat all garden products containing vermiculite as though they contain asbestos and take appropriate precautions when handling them. Packages of vermiculite and/or potting soil do not have labels warning of asbestos, which means consumers have no way of knowing which brands contain asbestos. The EPA provides the following recommendations to further reduce the low risk associated with the occasional use of vermiculite products during gardening activities. 1. 2. 3. 4.

 se vermiculite outdoors or in a well-ventilated area. U Keep vermiculite damp while using it to reduce the amount of dust created. Avoid bringing dust from vermiculite use into the home on clothing. Use premixed potting soil, which usually contains more moisture and less vermiculite than a pure vermiculite product. 5. Use other soil additives such as peat, sawdust, perlite, or bark. Radon Radon is a cancer-causing, radioactive colorless gas. Radon comes from soil, rock, wellwater, and building materials. Radon is derived from the radioactive decay of radium. Radon can be found all over the U.S. and it can get into any type of building—homes, offices, and schools where it can build up to high levels. Breathing air that contains radon can increase the risk for lung cancer. Radon is believed to be the second leading cause of lung cancer in the United States today. Only smoking causes more lung cancer deaths. The EPA estimated radon is responsible for about 21,000 lung cancer deaths per year. About 2,900 of those deaths were non-smokers. Because radon is found in the ground, it can affect all structures, including new construction, existing homes, and homes with and without basements. Testing is the only way to determine if a property has radon. The EPA and the surgeon general recommend testing all homes for radon. Testing should be done on a level below a third floor. Testing is inexpensive, easy, and does not take a long time to produce results. Radon in a property can usually be corrected inexpensively and quickly. In new construction, a property owner can install passive radonresistant features during construction. In an existing home, a property owner can install a radon mitigation system to vent the radon-contaminated air out of the home. The EPA recommends the following for buyers and sellers. 1. Home buyers and sellers should have the home tested for radon. 2. For a new home, a buyer should ask if radon-resistant construction features were used and if the home has been tested. 3. Take action if the home radon level is four picocuries per liter or higher.

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Mold Mold exists everywhere and plays an important role in the earth’s ecology. Mold in properties and the corresponding concern and media coverage can make mold seem like an epidemic environmental concern. This causes uncertainty for buyers and sellers because mold does not refer to just one kind of fungus, there are few reliable testing standards for molds, and few concrete links to health symptoms. The lack of clarity in terms of mold as an environmental problem can make transactions challenging for sellers, buyers, and licensees. Sellers and buyers may have different interpretations of mold and what finding mold in a property means. Parties will also look to licensees to be experts on a topic about which there is little concrete information. To successfully handle mold issues in real estate transactions, licensees must stand ready to optimize awareness and refer extreme situations to qualified professionals. Mold affects people in different ways. Some individuals have severe allergic reactions to mold, while others have no reaction. For those that are sensitive to mold, symptoms can range from nasal stuffiness to skin irritation. Individuals that are hypersensitive to mold may experience even more severe reactions such as fever and shortness of breath. The existence of mold in a home is not automatically a defect. Mold is all around and ­it probably can be found in some measurable level in every property. Whether mold is a defect will depend upon location, quantity, relation to water or moisture sources, and other related circumstances. For a property to have mold, there must be an organic food sources for the fungus. Food sources may include wood, insulation, dry wall, ceiling tiles, other cellulose materials, or even dirt. Mold grows best in moderate temperature conditions and prefers low levels of light. Extreme temperatures put mold into a dormant condition, but do not kill it. Mold requires a moisture source. Mold colonies often begin growing within 24 to 48 hours after a source of water has been introduced—a leak, a flood, humidity, etc. Generally, if the moisture source is quickly eliminated within that time period, mold growth may be avoided or controlled. Mold is unlike other environmental hazards such as lead-based paint, radon, or asbestos. Other environmental problems are readily identified with known health risks and known hazardous levels. There are also well-established testing and remediation standards. Unlike other potential contaminants, mold is a naturally occurring, living organism that lives everywhere with no practical means for keeping it out of a property. There are no EPA standards or other authoritative sources of information regarding what constitutes a safe level for mold. Different mold experts or contractors may use entirely different testing methods, interpret results differently, and recommend different measures to address the problems found. A complete mold remediation may destroy or remove active mold colonies and reduce the levels of mold present indoors to match those found outside, but the potential for mold growth always exists because there usually is a baseline residual level of mold still ­present. Mold remediation can be a costly procedure and if new moisture is introduced into a previously cleaned property, the mold can easily return. The first place in a real estate transaction where a licensee might encounter mold issues is during the pre-listing inspection. Listing agents can ask a seller about mold issues and look for visible mold growth, evidence of water damage, and musty odors, which might indicate current or past mold issues.

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EPA recommendations for cleaning mold include: 1. Fix plumbing leaks and other water problems as soon as possible. Dry all items completely. 2. Scrub mold off hard surfaces. Use non-ammonia soap or detergent, or a commercial cleaner in hot water, and scrub the entire area that is affected by the mold. Use a stiff brush or cleaning pad on cement-block walls or other uneven surfaces. Rinse cleaned items with water and dry thoroughly. A wet/dry vacuum cleaner is helpful for removing water and cleaning items. 3. Absorbent or porous materials, such as ceiling tiles and carpet, may have to be thrown away. Mold can grow on or fill in the empty spaces and crevices of porous materials and become difficult or impossible to remove completely. 4. Remove moldy materials that are porous and cannot be effectively cleaned: paper, wallboard, rotten wood, carpet, drapes, upholstered furniture, ceiling tiles, sheetrock, and wood products. Wear gloves when handling moldy ­materials, and bag and discard moldy items. Solid materials such as glass, plastic, and metal can generally be kept after being thoroughly cleaned. 5. Do not paint or caulk over moldy surfaces. Clean up the mold and dry the surfaces before painting. Paint applied over moldy surfaces is likely to peel. 6. Sellers who are unsure about how to clean an item, or who have an item that is expensive or of sentimental value, should consult a specialist. If a seller discovers water problems before listing a property, the seller can repair and remediate the damage and complete a RECR. A seller can collect reports and invoices related to the water damage and repair and use them to supplement the RECR, referring interested buyers to the reports for information about the damage and completed repairs. Disclosure obligations require licensees to disclose in writing any known moisture problems, mold problems, or conditions associated with mold. Licensees must also disclose information that suggests material adverse facts, which might include evidence of past water damage even if a seller insists that there has not been mold or water problems. Whether evidence of past water damage is information that suggests a material adverse fact is not always clear and licensees should consult with a supervising broker to determine what conditions are material adverse facts or information that suggests material adverse facts. Licensees cannot give opinions about the presence, extent, or toxicity of any suspected mold and should avoid any conversation or conduct suggesting mold or water damage expertise. Water Quality Issues Water collects impurities as it flows in streams, sits in lakes, and filters through soil and rock in the ground. Some substances are harmless but at elevated levels, some minerals can make water unpalatable or unsafe. While most drinking water is safe, home buyers may want to check for unsafe levels of c­ ontaminants in the water that is pumped from the public water utility or a private well. The Wisconsin Department of Natural Resources (DNR) identifies bacteria, nitrates, and lead tests as the most important for wells in Wisconsin. Depending on a property’s location or other conditions such as former use and history, a buyer may also want to test for contaminants such as atrazine, arsenic, radium, volatile organic chemicals (VOCs), and iron. Bacteria Coliform bacteria are microorganisms found in the intestines and feces of humans and other warm-blooded animals as well as in soil, on vegetation, and in surface water runoff. Finding coliform bacteria in a water supply indicates ­disease-producing organisms may also be present. Poorly constructed or unsealed wells, ­fractured rock outcroppings, sinkholes, and quarries may permit coliform bacteria to enter groundwater. Once in the groundwater, bacteria can easily pollute a private well. E. coli is a member of the coliform bacteria family.

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Nitrates Nitrate is a natural component of plants and is found in vegetables at varying levels depending on the amount of fertilizer applied and other growing conditions. Common sources of nitrate contamination include fertilizers, animal waste, septic tanks, municipal sewage treatment systems, and decaying plant debris. High levels of nitrates in drinking water pose a serious health threat for infants less than six months of age. Nitrate is changed to nitrite in the stomachs of infants where it interferes with the blood’s ability to carry oxygen, and may produce suffocation symptoms or blue baby syndrome. Lead Most lead in drinking water in Wisconsin homes comes from lead pipes or solder used in a home’s plumbing or from lead service lines connecting buildings to street water mains. Lead is a soft metal that dissolves continuously in water. Lead in drinking water can be a significant source of lead exposure for young children. Homes that were constructed before 1985 or have very soft water are more likely to have a lead problem due to the construction materials used and the effects of soft water on lead. The degree of harm due to lead exposure is directly related to the level of lead in the blood. Lead exposure can lead to subtle changes in body system functions at low levels of exposure and to severe effects, such as acute lead poisoning or even death at very high levels. Excessive levels of lead can damage the brain, kidneys, nervous system, red blood cells, and the reproductive system. It is a greater hazard to young children than to adults. Atrazine Fourteen types of pesticides (insecticides and herbicides) have been found in Wisconsin water supplies. Atrazine is a popular corn herbicide that has been used in Wisconsin for more than 25 years to control weeds in cornfields. It enters the groundwater from agricultural runoff and is the most frequently detected pesticide in Wisconsin’s groundwater. The EPA considers atrazine a possible cancer-causing substance. Drinking water that contains atrazine does not cause immediate sickness or health problems. The effects of consuming low levels of atrazine over an extended period of time have not yet been determined. Arsenic Arsenic is an element that is found in soil and rock. High levels of arsenic are found in hundreds of private drinking water wells in northeastern Wisconsin. Most of these wells are in parts of Outagamie and Winnebago counties where there is a deep soil layer of arsenic. Under certain conditions, arsenic can contaminate ground water and enter local wells. Some experts believe that draw down of the water table is causing arsenic levels to rise in local wells. Draw down occurs when the groundwater level is lowered as water is pumped from the ground by wells. Conserving water use could reduce the likelihood of a future arsenic problem. Long-term exposure to high levels of arsenic increases risks of skin, ­bladder, lung, liver, colon, and kidney cancer. Other health effects may include blood vessel damage, high blood pressure, nerve damage, anemia, stomach upset, diabetes, and skin changes.

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Radium Radium is a naturally occurring radioactive metal that is usually found at low levels in soil, rock, water, and plants. According to the DNR, the highest radium levels in water are found in water drawn from the deep sandstone of the state’s eastern quarter and the crystalline granite rock of the north-central part of the state. Groundwater, which moves slowly through the pores or cracks in underground layers of rock, dissolves minerals as it travels. Where the rock contains significant amounts of radium and the groundwater moves slowly enough, the water can pick up higher amounts of radium. There is no immediate health risk from drinking water contaminated with levels of radium found in Wisconsin groundwater, but use of water with high levels of radium over a lifetime can increase the risk for contracting bone cancer. The risk of dying from radium is no greater than dying from lightning strikes, tornados, and hurricanes. VOC Volatile organic chemicals (VOCs) are widely used as cleaning and liquefying agents in fuels, paints, degreasers, solvents, polishes, cosmetics, and dry cleaning solutions. When VOCs are spilled or dumped, a portion evaporates, but some ­usually soaks into the ground. In soil, VOCs can be carried deeper with percolating rain­water or melting snow. If they reach the water table, they can persist for years because the cool, dark, low-bacteria environment does not promote decomposition. If VOCs in the groundwater migrate to nearby wells, they can end up in someone’s drinking water. Wells near leaking underground gas tanks and old landfills are most likely to be contaminated with these substances. As a group, VOCs are not among the most toxic environmental pollutants. However, some VOCs are known or suspected carcinogens. In high doses, VOCs can harm the kidneys, liver, and the central nervous system. Testing shows that a small percentage of Wisconsin wells are contaminated with VOCs according to the DNR. VOCs are found at airports, service stations, paint shops, chemical plants, dry cleaning establishments, and in household products. Iron Iron is not considered hazardous to health. In fact, iron is essential for good health because it transports oxygen in the blood. In the United States, most tap water probably supplies less than five percent of the dietary requirement for iron. Under DNR rules, iron is considered a secondary or “aesthetic” contaminant. Higher levels of iron in the water may cause property owners to experience red, brown, or yellow staining of laundry, glassware, dishes and household fixtures such as bathtubs and sinks. The water may also have a metallic taste and an offensive odor. Water system piping and fixtures can also become restricted or clogged and may, over a period of time, become deteriorated and need to be replaced. The facts and statistics relating to the discussed environmental contaminants are provided by the Wisconsin Department of Natural Resources and the Environmental Protection Agency. To learn more about them, go to the Wisconsin Department of Natural Resources’ website at www.dnr. state.wi.us or to the Environmental Protection Agency’s website at www.epa.gov.

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5

Fair Housing Wis. Stats. 66.1011, 106.50 REEB 24.03

Chapter Overview Real estate licensees help protect equal opportunity for housing by

ensuring that buyers and sellers follow fair housing laws and protections. This chapter addresses fair housing laws and a licensee’s responsibilities under those laws.

Important Terminology

age ancestry blockbusting color disability dwellings familial status lawful source of income marital status national origin race redlining religion sex sexual orientation status as a victim of domestic abuse, sexual assault, or stalking steering

FAIR HOUSING LAW

F

air housing laws serve to protect equal housing opportunities for all people. Real estate licensees must do their part to support an open housing market for all individuals in accordance with fair housing laws. Licensees are responsible for helping sellers, buyers, and other parties observe fair housing laws and prevent violations that could threaten the public’s right to equal and fair housing. Licensees are in a position to educate the public about housing laws because consumers may be unaware of the laws or may be relying on incorrect information regarding fair housing protections. For example, if a seller does not want to sell to a particular class of buyers, the licensee must educate the seller about fair housing laws and let the seller know that such a restriction would be a violation of those laws. A seller cannot refuse to sell property to a person based on that person belonging to a protected class under fair housing law. If a seller insisted on restricting the potential pool of buyers for the property by refusing to sell to a member of a group, a licensee should not assist in that transaction. Fair housing laws address the actions of a person regardless of the person’s intent and the laws require that all parties be treated equally. This does not require a licensee to show all properties to all consumers. Licensees can evaluate factors such a person’s financial picture by asking for preapproval letters from a lending institution as long as the licensee asks all people about their financial picture. A licensee could not have a discriminatory policy such as asking only women for pre-approval letters or only showing ground level condominium units to families with children. Licensees must offer and provide the same level of services to all people. Licensees must scrutinize their practices and be careful not to fall victim to clients or customers who expect to discriminate. To determine whether a real estate licensee may be violating a fair housing law, organizations such as Housing and Urban Development (HUD) and the Department of Workforce Development (DWD), may send “testers” to a licensee for a service, such as viewing a property or

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applying for a rental unit. The testers will include members of a protected class and individuals who are not members of that protected class. HUD or DWD will compare the testers’ experiences to see if a licensee treated one tester differently from another. If there is a discrepancy in treatment, there could be further investigation and potential discipline for discrimination. The courts have held that testing is not entrapment. The fact that a tester is not a bona fide good faith tenant or buyer does not impair their credibility as a witness in a fair housing hearing or in court. To avoid potential discrimination claims, licensees should treat all people fairly and consistently and keep accurate and detailed records of all client and customer interaction. Licensees should develop routines and procedures to use with all consumers. For example, ask all potential buyers the same set of qualifying questions and offer the same level of services to all buyers and sellers. Fair housing law applies to dwellings, which include any building or part of a building designed for occupancy as a residence by one or more families. This includes both properties improved with a structure as well as any vacant lands on which a dwelling will be built. The laws do not cover purely commercial or industrial property. In addition to state and federal housing law, Wisconsin has given local levels of government, such as villages, cities, and counties, the right to enact their own fair housing laws that meet or exceed the state fair housing law. Local fair housing laws cannot remove a protected class, but can create more, or stricter, protected classes. A licensee must comply with the law that offers the most protection to individuals, which is often found in local housing law. To find out more information about local housing rules, licensees can contact their local housing authorities. Wisconsin’s 13 Protected Classes • Race: A person’s membership in a group possessing characteristics and traits transmitted by descent. The 2010 U.S. Census used racial categories that included white, African American, and Pacific Islander. [Federal and State.] • Color: A person’s skin color. [Federal and State.] • Religion: A person’s religious or spiritual beliefs, practices, or denominational affiliations. [Federal and State.] • •

National Origin: The country from where a person’s ancestors came. [Federal and State.] Sex: Gender. [Federal and State.]

•

Familial Status: The presence of children under age 18 in the household. Familial status also protects a person who is pregnant and a person who is in the process of securing sole or joint legal custody, physical placement, or visitation rights of a minor child. [Federal and State.] Disability: A physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment. [Federal and State.]

•

Impairments may include hearing, mobility, visual, or cognitive impairments, chronic alcoholism, mental illness, HIV positive status, muscular dystrophy, multiple sclerosis, cerebral palsy, and epilepsy. Use of illegal drugs or controlled substances is not an impairment but if a person is using illegal drugs or controlled substances and is participating in a supervised drug rehabilitation program, the person may be regarded as disabled for the purposes of fair housing law in Wisconsin. A property owner must permit a person with a disability to alter a dwelling or common use area if necessary to use the housing. The person asking for the accommodation must pay for the requested modification and the property owner can require restoration of the property when the person moves. A property owner must also make reasonable accommodations in rules, policies, practices, or services to permit a person with a disability to use the property. For example, a building with a no pets policy must allow a visually impaired tenant to keep a guide dog.

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Fair Housing - 5

•

Ancestry: A person’s ethnic background. For example, a person may be from Afghanistan, which would be the person’s national origin, but the person’s ancestry may be Pashtun, Tajik, Uzbek, Hazara, or some other group. [State only.]

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Age: Any person at least 18 years of age. [State only.]

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Sexual orientation: Having a preference for heterosexuality, homosexuality, or bisexuality, having a history of such a preference or being identified with such a preference. [State only.]

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Marital status: A person is single, married, divorced, separated, or ­widowed. [State only.]

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Lawful source of income: The source of a person’s income that is legal. Lawful sources of income include earnings, investment profits, food stamps, Social Security, public assistance, unemployment compensation, and worker’s compensation payments. [State only.]

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Status as a victim of domestic abuse, sexual assault, or stalking: Is or is believed to be a victim of domestic abuse, sexual assault, or stalking. [State only.]

Prohibited Under Fair Housing Law All of the following acts are unlawful discrimination: •

Refusing to sell, rent, finance or contract to construct housing or by refusing to negotiate or discuss the terms thereof.

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Refusing to permit inspection or exacting different or more stringent price, terms or conditions for the sale, lease, financing or rental of housing.

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Refusing to finance or sell an unimproved residential lot or to construct a home or residence upon such a lot.

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Advertising in a manner that indicates discrimination by a preference or limitation.

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Redlining, which is when a person in the business of insuring against hazards, refuses to enter into, or exacts different terms, conditions or privileges with respect to a contract of insurance against hazards to a dwelling.

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Refusing to renew a lease, causing the eviction of a tenant from rental housing or engaging in the harassment of a tenant.

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Providing the unequal access to privileges, services or facilities that are available in connection with housing.

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Steering, which is falsely representing that housing is unavailable for inspection, rental or sale.

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Denying access to, or membership or participation in, a multiple listing service or other real estate service.

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By coercing, intimidating, threatening or interfering with a person in the exercise or enjoyment of, or on account of the person having exercised or enjoyed a right granted or protected under this section, or with a person who has aided or encouraged another person in the exercise or enjoyment of a right granted or protected by the Fair Housing law.

In January of 2000, HUD charged a Philadelphia-based website operator, Ryan Wilson, with a fair housing violation for making threats against fair housing advocate Bonnie Jouhari, who was white. Threats were made against her in 1998. Wilson’s site contained Jouhari’s picture, labeled her a “race ­traitor” and said “Traitors like this should beware, for in our day, they will be hung from the neck from the nearest tree or lamp post.” The site also contained an animated picture of her office being blown up. HUD awarded more than $1 million in damages to Jouhari though she has had difficulty collecting the judgement.

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•

•

Using discriminatory factors in the making or purchasing of loans or the provision of other financial ­ assistance for purchasing, constructing, improving, repairing or maintaining housing or the making or purchasing of loans or the provision of other financial assistance secured by residential real estate. Blockbusting, which is inducing or attempting to induce a person to sell or rent housing by representations regarding the present or prospective entry into the neighborhood of a person of a particular economic status or a member of a protected class, or by representations to the effect that such present or prospective entry will or may result in any of the following: • The lowering of real estate values in the area concerned; • Deterioration in the character of the area concerned; • An increase in criminal or antisocial behavior in the area concerned; or • A decline in the quality of the schools or other public facilities serving the area.

Permissible Under Fair Housing Law Wisconsin law states that the following are permissible: • Discrimination based on age or family status with respect to housing for older per­sons. Housing may qualify as housing for older persons when at least 80% of the dwelling units are occupied by at least one person 55 years of age or older, and policies are published and procedures are adhered to that demonstrate an ­intent by the owner or manager to provide housing for persons 55 years of age or older. •

 xacting different or more stringent terms or conditions for financing housing based on E the age of the individual applicant for financing if the terms or conditions are reasonably related to the individual applicant.

•

The development of housing designed specifically for persons with disabilities in relation to such housing.

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Refusing to provide housing to an individual whose tenancy would constitute a direct threat to the safety of other tenants or persons employed on the property or whose tenancy would result in substantial physical damage to the property of others, if the risk of direct threat or damage cannot be eliminated or sufficiently reduced through reasonable accommodations. The property owner must be able to demonstrate a pattern of this behavior.

For example, a tenant has a disability that is the result of a brain injury. The tenant makes rude, threatening, and sexual comments to other tenants. Even though the tenant is a member of a protected class, the property owner could refuse to renew the lease because the person’s behavior constitutes a threat to other tenants.

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•

 equiring that a person who seeks to buy or rent housing supply information concerning R family, marital, financial, and business status but not concerning race, color, disability, sexual orientation, ancestry, national origin, or religion.

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Requiring that a person who seeks to buy or rent housing for older persons supply information concerning age for the purpose of verifying compliance with that type of housing.

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Advertising for roommates may indicate the desired gender of the tenant sought in situations where there are shared living areas or where the advertising is for a dormitory at an educational institution. This exception does not apply if the rental is for separate units in a single or multi-family dwelling.

Fair Housing - 5

•

Referencing a protected class in an advertisement if advertising is part of an affirmative marketing program designed to attract persons who would not ordinarily be expected to apply for housing.

•

 efusing to rent owner-occupied housing if an owner or an immediate family member R occupying the property is allergic to the animal and can demonstrate it with a certificate signed by a physician that states that the owner or family member is allergic to the type of animal the individual possesses.

Advertising Advertising for housing means to publish, circulate, issue or display, or cause to be published, circulated, issued or displayed, any communication, notice, advertisement or sign in connection with the sale, financing, or rental of housing. Print or verbal advertisements for housing that are discriminatory violate fair housing laws. For example, a property owner would violate fair housing law if the owner advertised for a particular kind of tenant, such as mature couples or families without children. It does not matter what form of advertisement the property owner used because the fair housing laws cover all forms of advertisements including printed, verbal, and electronic. To determine if an advertisement is discriminatory and a violation of fair housing laws, one of the tests HUD uses is the “ordinary reader” standard. HUD determines whether an advertisement would offend an “ordinary reader.” If an ordinary reader would not be offended by the advertisement, then HUD probably will not find that it is a violation of the fair housing laws. To avoid violations of fair housing laws prohibiting discrimination in advertising, describe the available property, not the potential tenant or buyer. Firms, publishers, advertisers, and multiple listing services are responsible if they make, print, or publish an advertisement that violates fair housing laws. HUD provides the following guidelines for advertising property or services related to housing: 1. Race, color, national origin. Real estate advertisements should not state a discriminatory preference or limitation on account of the protected classes. For example, using racial or ethnic terms such as “white family home” or “no Irish” to describe housing, current or potential residents, or the neighbors or neighborhood would create liability under fair housing laws. 2. Religion. Advertisements should not contain an explicit preference, limitation, or discrimination on account of religion. For example, stating “Lutherans only” or “no Catholics” in an advertisement would be a violation of the law. Advertisements that use the legal name of an entity that contains a religious reference, such as “Roselawn Catholic Home” or those that contain a religious symbol standing alone may indicate a religious preference and violate fair housing laws unless the advertisement also includes a disclaimer stating that the property will not discriminate on the basis of race, color, religion, national origin, sex, handicap, or familial status. Advertisements containing descriptions of properties such as “apartment complex with chapel” or “kosher meals available” that do not state a preference for persons likely to make use of those facilities do not violate fair housing law. Including secularized terms or symbols such as Santa Claus or the Easter Bunny that relate to religious holidays or using phrases such as “Merry Christmas” or “Happy Easter” is not a violation of fair housing advertising laws. 3. Disability. Real estate advertisements should not contain explicit exclusions, limitations, or other indications of discrimination based on ability, such a “no wheelchairs.”

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Advertisements describing attributes like “jogging trails” or “fourth-floor walk-up” do not violate the act. Describing certain prohibited conduct such as “no smoking” or “no alcohol” does not violate the act. Advertisements that describe accessibility features such as ramps and lower counters are not violations of fair housing law. 4. Familial status. Advertisements may not state an explicit preference, limitation or discrimi­ nation based on familial status. Advertisements may not contain limitations on the number or ages of children, or state a preference for adults, couples or singles.  dvertisements describing the property as “two bedroom, cozy, family room” or “quiet A streets” do not violate fair housing law.



For more information about fair housing and advertising, go www.hud.gov. Use of Demographic Data Relating to Protected Classes Data on neighborhood demographics and statistics for an area are readily available online and from local sources such as school boards, chambers of commerce, and police departments. Buyers will ask licensees to provide this information when looking for homes and sellers may request that a licensee include certain neighborhood information with advertisements. Licensees cannot use this information to steer buyers towards or away from particular areas and licensees should not include statements about a neighborhood’s demographics in advertisements. Buyers can use demographic and statistical information about a neighborhood to focus the search for a home and then relate the targeted locations to the licensee, who can then search for housing in those areas that meet the rest of the buyer’s stated requirements. A licensee can distribute independently produced demographic or statistical information such as maps showing taxing zones or the location of elementary schools. If a licensee is going to provide this information, the licensee must provide it to all consumers. It would be a violation of fair housing law if a licensee only provided a map showing the location of elementary schools to consumers who are under the age of 60 or by only providing taxing maps to married buyers. A licensee can provide computer access so that buyers and sellers can conduct their own demographic or statistical research. A buyer tells a licensee that the buyer wants to buy in a “racially diverse neighborhood” and a neighborhood with “good schools.” The licensee should not make this determination for the buyer but can refer the buyer to resources such as the mayor’s office, local libraries, the local school board, or a city’s website to obtain the information. The buyer can then tell the licensee in which neighborhoods the buyer wants to begin searching for properties and the licensee can show available properties in those neighborhoods.

THE AMERICANS WITH DISABILITIES ACT (ADA) Licensees may be uncertain about how to work with people with disabilities and family members or friends who may be assisting people with disabilities. The uncertainty often stems from fear that a discussion about the person’s disability will offend the person or will be a violation of fair housing laws. Without a discussion, however, the licensee may not be able to fully serve the needs of the potential client and the person may go to a different licensee who can better accommodate any adjustments needed due to the disability. Licensees should ask all consumers if there is something the licensee could provide to better facilitate the transaction. With this practice, the licensee can ensure that if a person needs accommodations, whether due to a disability or not, the licensee can assist by providing items such as magnifying glasses or providing a written summary of a telephone conversation. The Americans with Disabilities Act (ADA) requires places of public accommodation to provide equal access and services to persons with disabilities. A real estate office is a place of public

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accommodation. The firm is responsible for making sure that the firm’s office complies with the ADA requirements. Real estate offices must remove, where reasonable, architectural and communication ­barriers and provide auxiliary services. Auxiliary aids and services ensure effective communication with individuals with impairments. Determining what assistance a consumer needs does not violate discrimination prohibitions. It will help the licensee provide good services to all consumers and allow a licensee to provide real estate services effectively and on an equal basis. Assistance may include voice amplification devices or other auxiliary aids, meeting in a location that is wheelchair accessible, or offering to include a trusted family member or friend of the consumer on all written correspondence. Firms must provide auxiliary aids to individuals with impairments that limit the individual’s ability to communicate. Auxiliary aids and services include a wide range of services and devices that promote effective communication such as qualified interpreters for individuals with hearing impairments, note takers, computer-aided transcription services, written materials, telephone handset amplifiers, listening systems, telephones compatible with hearing aids, closed caption decoders, open and closed captioning, and videotext displays and exchange of written notes. Qualified readers, taped texts, audio recordings, Braille materials, large-print materials, a magnifying glass, and assistance in locating items may aid individuals with vision impairments and consumers with speech impairments may need access to a computer, speech synthesizers, or communication boards. Some of these devices are expensive, require training or technical expertise, or may not be readily available. The ADA limits a firm’s obligation to provide auxiliary devices and services if providing the accommodation would cause an undue burden or be a fundamental alteration in the nature of the goods or services the firm provides. If, however, a firm refuses to provide an accommodation because it would cause an undue burden or fundamentally alter the nature of the goods or services the firm provides, the firm must still try to provide an alternate accommodation that would ensure effective communication. For example, if an individual was unable to access a firm’s front door because the door was at the top of a set of stairs, installing a ramp would satisfy a firm’s obligations under the ADA. If a firm claimed that installing a ramp would cause an undue burden, the firm could then offer to meet with the individual in another location as long as the firm would be able to provide the level and variety of services available if the meeting took place in the firm’s office. The ADA also requires firms to remove barriers in real estate offices, including a licensee’s home office if the licensee meets clients there. This could include installing ramps, rearranging tables and chairs, repositioning telephones, adding raised markers on elevator control buttons, widening doorways, and making bathrooms accessible. Real estate firms should make sure that the office has an accessible entrance, pathway to a meeting room, ramps, accessible doorways and hallways, and an elevator if the meeting space is not on a first floor. When a tenant leases or rents a property that is a public accommodation, both the tenant and the property owner are responsible for complying with ADA obligations to remove barriers and provide auxiliary aids and services. If a firm rents an office, both the firm and the property owner are responsible for complying with the ADA and the firm and property owner can negotiate responsibility for compliance. The ADA public accommodations provisions permit an individual to allege discrimination based on a reasonable belief that discrimination will occur. This provision allows individuals to challenge proposed projects if the plans are not ADA compliant. For example, a person who uses a wheelchair could file an ADA complaint based on plans for a proposed shopping mall that would not be accessible to individuals who use mobility assistance devices. Resolving challenges before construction permits a property owner to address problems in the planning state, which will likely cost the developer less than addressing accessibility challenges after construction is complete. For more resources on assisting consumers who need accommodations, visit: www. wra.org/Resources/resource_pages/disabilities_resources.htm.

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HANDLING COMPLAINTS The Office of Fair Housing and Equal Opportunity (FHEO) investigates complaints filed with HUD. The person filing the complaint is called the complainant and the person or organization at the source of the complaint is the respondent. HUD provides the respondent with an opportunity to agree to a remedy to the complaint. Any conciliation agreement between HUD and the respondent must remedy the problem and protect the parties and the public interest. If HUD and the respondent reach a suitable agreement, HUD does not take any further action. After the agreement, if HUD has reasonable cause to believe that a respondent has breached the agreement, HUD will recommend the attorney general file suit seeking additional remedies and enforcement action. If HUD and the respondent cannot reach an agreement remedying the complaint, the FHEO determines whether reasonable cause exists to believe that the respondent engaged in discriminatory housing practices. If FHEO finds reasonable cause, they notify the parties of the reasonable cause, HUD’s determination of possible discrimination, and schedule a hearing before an administrative law judge. Either the complainant or respondent can terminate the administrative proceeding by elevating the matter to litigation in federal court. If a party chooses to litigate the matter in federal court, the Department of Justice takes over HUD’s role as counsel seeking resolution of the charge on behalf of aggrieved persons, and the matter proceeds as a civil action. A complainant can file a suit in federal district court or state court within one year of an alleged violation. If a complainant ­cannot afford an attorney, the court may appoint an attorney to litigate the case. A court can award actual and punitive damages and attorney’s fees and costs. Complaints under Wisconsin’s laws may be handled using the following procedures. 1. C  omplaints must be in writing, state the facts, and be filed within one year of the alleged discriminatory act taking place. 2. A  t any time after a complaint is filed alleging discrimination, the Department of Workforce Development (DWD) may file a petition seeking a temporary injunction or restraining order against the respondent. 3. T  he DWD shall commence proceedings with respect to a complaint before the end of the 30th day after receipt of the complaint. If the DWD is unable to complete the investigation within 100 days, it shall notify the complainant and respondent in writing of the reasons. 4. The court may allow a prevailing complainant reasonable attorney fees and costs. The Equal Rights Division of DWD may also refer a fair housing complaint against a person holding a Wisconsin real estate license to the DSPS for enforcement action. Potential DSPS discipline could include education, reprimand, forfeiture, and license revocation, suspension, or limitation.

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ESTABLISHING OFFICE PROCEDURES REGARDING FAIR HOUSING LAWS Firms should institute office procedures to ensure all employees are complying with fair housing laws and to protect the firm from potential claims of discrimination. Standard compliance practices and procedures should address the following topics. 1. Executing agency contracts. 2. Keeping lists of available properties and practices for sharing them with consumers. This can avoid having a licensee tell a consumer a property is sold or unavailable if the property is still available, which could lead to a claim of steering. 3. Uniform qualifying procedures for prospective buyers and tenants. A firm could create uniform prospect cards so that salespeople ask all prospective buyers and sellers the same questions. 4. Handling questions at showings or open houses. For example, a buyer asks if the property is located in a culturally diverse neighborhood. A firm should teach licensees to respond that the company does not provide demographic information but that the buyer could look for demographic statistics on a city’s website or by contacting local government agencies. 5. Marketing and advertising guidelines. 6. Procedures for handling compromising situations and suspected discrimination. 7. Record-keeping procedures.

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6

Valuation REEB 24.09

Chapter Overview Buyers and sellers expect real estate licensees to provide guidance on the market value of real estate. This chapter discusses the process that real estate professionals use to determine the market value of real estate.

Important Terminology active properties amenities anticipation appraisal appraiser change comparable property conformity contribution cost expired properties highest and best use increasing and decreasing returns market analysis market price market value pending properties regression and progression subject property substitution supply and demand

MARKET VALUE VERSUS APPRAISED VALUE

T

here are several methods real estate professionals use to analyze a property’s value. Supervising brokers can help newly licensed salespeople become comfortable with the valuation process and the different methods to place a value on property. Buyers and sellers rely on a licensee’s expertise in estimating the value of real estate. Both a property’s market value and its appraisal will affect a transaction. Market value is an opinion of value for which a property would likely sell to a buyer who is not under duress, is not related to the seller, is well informed about the ­property, has been found in a reasonable time period (three to four months), has paid for the property with cash or its equivalent, and the price is not affected by special ­financing amounts or terms. A licensee will perform a market analysis to arrive at a probable market value. A market analysis compares similar properties that have recently sold to a subject property.

After a buyer finds a property, the buyer submits an offer. If the seller accepts, the parties enter into a sales contract. If a buyer is obtaining a mortgage to finance the transaction, the mortgage lender will want to determine the value of the property and request an appraisal. The appraisal is an estimate or opinion of value based on supportable evidence and approved methods. An appraiser is an independent person trained to provide an unbiased estimate of value for a fee. The lender hires the appraiser to conduct the appraisal. A lender wants an independent party to give an opinion as to whether a property has enough value to cover the risk to the lender when issuing the loan. A buyer wants to finance the purchase of $100,000 home with a $10,000 down payment and a $90,000 loan. A lender will want to determine that the value of the house is at least $90,000 so that if the borrower defaults, the lender will recover its investment through a foreclosure sale. 95

REAL ESTATE SALES

Real estate licensees and appraisers contribute similar services to a transaction but their roles are not identical. Neither a real estate licensee nor an appraiser creates value but both develop opinions of value based on the current performance of the real estate market. The biggest difference between the real estate licensee’s market analysis and the appraiser’s appraisal is objectivity. A real estate licensee seeks to establish the maximum value of a property by trying to anticipate what a future buyer will pay for the property. Sellers also rely on the licensee’s market analysis when deciding on a list price and when considering offers. Sellers are often optimistic when evaluating data about a property and this can cause sellers to overestimate the value of a property. An appraiser does not consider what a licensee thinks a buyer will pay for a property, what the seller thinks the property should sell for, or what a seller would likely accept for a property. The appraiser’s opinion is based on past events such as what buyers have paid for similar properties in the past. What the seller wants for the value of the property is of little concern to an appraiser.

PRINCIPLES OF VALUE

A number of economic principles affect the value of real estate. Licensees consider these principles of value when conducting a market analysis. 1. Highest and best use refers to a property’s most profitable use that is legal, financially feasible, physically possible, and maximally productive. Development of rural property would often create a property’s highest and best use. Agricultural use or preserving undeveloped property does not usually reflect a property’s highest and best use. 2. Conformity refers to the concept that a building’s value is higher if it is surrounded by buildings of similar age, construction, and size. Subdivisions often develop deed restrictions to create conformity among structures. 3. Regression and progression refers the effect dissimilar properties have on nearby properties. A large, well-kept home located next to a smaller, poorly-kept property increases the value of the smaller property. The smaller property decreases the value of the larger property. 4. Increasing and decreasing returns refers to the effects improvements of land and structures have on overall property values. Improvements to a property may reach a point at which the improvements no longer have a positive effect on ­property values. If an improvement increases a property’s value or profits, the owner will experience increasing returns. If the improvement does not increase or would decrease values or profits, the owner will experience decreasing returns. Adding a deck patio to a backyard may increase returns where adding a swimming pool might decrease returns. 5. Substitution refers to analyzing a property’s value by measuring the value of other similar properties. The Jensens want to sell their home. They live in a 1,700 square-foot, three-bedroom, two-bathroom ranch. To determine market value, they look at the selling price of other comparable ranches in their neighborhood. If the comparable properties have sold for approximately $125,000, the market value on their home is going to be approximately $125,000. 6. Anticipation refers to the effect on a property of anticipated future events. Anticipation can either affect value in a positive or negative manner. A city approved a golf course for development within the next year. There are 10 existing homes that will back up to the golf course. The value of these homes will most likely increase because of the anticipated demand for property located on a golf course.

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7. Contribution refers to the value that improvements add to a property’s market value. An improvement’s contribution is not based on the cost of the improvement. A property owner spends $30,000 to install an in-ground swimming pool. The swimming pool adds $5,000 in market value. The contribution to the property’s value is $5,000, not $30,000. 8. Supply and demand refers to the effect on property value when demand is high and supply is low or when demand is low and supply is high. A growing city experiences a building boom of downtown condominiums. The supply is high. A large city employer decides to relocate, driving down the need for housing. Demand is low and the value of the condominiums will decrease.

9. Change refers to the effects on value due to things like natural disasters, economic conditions, or market activity.

10. Market price is what a ready, willing, and able person pays for the property. A buyer purchases a property for $200,000, which is the property’s market price. 11. Cost is the current reproduction cost of a building plus the value of the land. New construction cost would most likely equal its market value.

12. Amenities are features that add to the value or desirability of real estate. A property may have amenities such as a great view or a master suite. Square Footage and Acreage

To calculate square footage, multiply the length times width for a single story house. For a multiple story house, multiply length times width and then multiply by the number of stories. A two-story home has exterior walls measuring 40 feet wide by 90 feet long. What is the square footage of the home? (40 x 90) = 3,600 square feet for the first floor, double it for a two story house - 7,200 sq. ft. 1 acre = 43,560 square feet A parcel measures 120 feet wide by 140 feet long. How many acres is this parcel? (120 x 140) = 16,800 square feet. 16,8000/43,560 = .39 acre

THE MARKET DATA (SALES COMPARISON) APPROACH

Most real estate professionals consider the market data approach to be most reliable approach to value a single-family home. Licensees compare the subject property, the property being appraised, to a recently sold comparable property. Because no two parcels of real estate are exactly alike, a licensee will evaluate each comparable property for differences and similarities between it and the subject property and adjust the price for any dissimilarity. For example, a subject property may have a one-car garage while a comparable property has a two-car garage. The comparable, or “comp property” as it is often called, has a benefit the subject property does not. The licensee will adjust the price of the subject property by subtracting the value of a one-car garage. The value of property attributes is not uniform and a two-car garage may add more value in one part of a city than it would in another. Learning the value of a property’s features and how to adjust value accordingly come with experience. A licensee will usually use at least three recently sold properties that are similar to the subject property in features, date of sale, age, c­ ondition, and location. The comparable properties should come from the open market, be voluntary sales, and not sales to close friends or relatives. When trying to determine market value, a licensee first gathers information on the subject property and 97

REAL ESTATE SALES

then finds comparable properties that are similar to the subject property. A market analysis is not always an objective method of determining value because factors like how well a property will show, a seller’s high expectations, and the potential commission can influence a licensee’s opinion. When gathering information on comparable sold properties, licensees will also gather information on active properties, which are properties that are currently for sale and represent the seller’s current competition. Depending on how competitively a seller prices the property, the other active properties can help generate interest or a seller’s asking price could generate interest in competing properties. Refer to the Market Data Analysis on the following page. Compare the subject property located at 702 Fantastic Drive to an active property located at 463 Archers Way. Archers Way has more square footage, an additional bedroom, and an extra garage. If the sellers of Fantastic Drive list their home at $157,000, they may help to sell the property located at Archers Way. Buyers will compare both homes and realize that they can get more house for their money if they purchase Archers Way. A licensee will also use information about pending properties. A pending property is one where the seller has an accepted offer to purchase with all the contingencies removed. The buyer and seller are just waiting for the closing date. A pending property can help a seller set a realistic list price. If a seller of a similar property was able to obtain an accepted offer at a certain price, the seller of the subject property should be able to expect the same. Expired properties can also inform a licensee’s analysis of market value. An expired property is a property that was listed but did not sell. These properties were usually priced above market value and may help convince an unrealistic seller to arrive at a more realistic list price. Refer to the Market Data Analysis on the following page. First, look to the subject property - a 2,300 sq. ft., three bedroom, two and one-half bath ranch, with a one-car garage. Secondly, look at the comparables - the properties recently sold. 846 Newburgh Drive is the most similar to the subject property. The seller listed it for $145,900, sold it for $144,500 after just six days on the market. Seller motivation can also drive valuation. A seller who needs to sell quickly may want to list the property for the same amount as the Newburgh Drive property. If the seller has a more flexible time frame, the seller may try to list it for higher and see if it attracts buyers. The licensee will also want to consider how other comparables performed between listing and selling. The two other comparables were on the market for 20 and 40 days respectively and a competing property, 736 Lovers Lane, has been on the market for 30 days, is 300 sq. ft. less and is listed for $149,900. Based on this market analysis, market value for the subject property is in the $145,000 range. The decision to price the home competitively can be difficult and one answer is not more correct than another. There are several other variables such as curb appeal of the property, time of year, market dynamics, and lending trends that will affect a property’s value. Another way to determine market value is to use the “comparable better subtract, subject better add” method. To use this method, first determine whether the subject property or the comparable property has more desirable amenities. If the comparable property has better amenities, the licensee subtracts value from the comparable’s sale price and if the subject has better amenities, the licensees adds value to the c­ omparable’s sale price to arrive at a market value for the subject property. Refer to the Market Data Analysis on the following page. Compare the garage sizes of 702 Fantastic Drive to 1123 Jersey Circle. If a licensee assumes a two-car garage is worth $10,000 and a one-car garage is worth $5,000, there is a $5,000 price difference between the two properties. The licensee subtracts the garage’s value and arrives at a value of value of $140,000 for the subject property.

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MARKET DATA ANALYSIS SUBJECT PROPERTY

List Sale Address Sq. Ft. Style Bed Bath Parking Price Price *DOM 702 1 Car Fantastic Drive

2,300

Ranch

3

2.5

Garage

CURRENT LISTINGS

List Sale Address Sq. Ft. Style Bed Bath Parking Price Price 463 2 Car Archers Way

2,700 Ranch 4

2.5 Garage 157,000

243 Clark Road 1,700 Ranch 3 1.5 736 Lovers Lane 2,000 Ranch 3 2.5

1 Car Garage 1 Car Garage

DOM 45

139,000

65

149,900

30

RECENT SALES

List Sale Address Sq. Ft. Style Bed Bath Parking Price Price 1123 2 Car Jersey Circle Drive 2,000 Ranch 3 2 893 W Water Street 2,700 Ranch 4 2 846 Newburgh Drive 2,300 Ranch 3 2.5

Garage 2 Car Garage 1 Car Garage

DOM

150,000 145,000

20

155,000 152,000

40

145,900 144,500

6

*D  OM stands for days on the market, which means number of days that passed from listing the p ­ roperty to obtaining an accepted offer to purchase.

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7

Real Property Ownership Wis. Stat. 70.043, 766 ATCP 134

Chapter Overview This chapter provides an overview of property ownership. Important Terminology accession bill of sale bundle of rights common elements condominium condominium unit control cooperative disposition eminent domain escheat estate in land exclude fee simple absolute fee simple defeasible fixtures freehold estate grantee grantor homestead individual property joint tenancy leasehold estate lessee

REAL PROPERTY OWNERSHIP

R

eal property ownership refers to the rights, interests, and benefits of ownership of real estate. Ownership of real estate gives a property owner the rights to the physical land at and below lessor the earth’s surface, life estate structures that are life tenant permanently attached limited common elements to it, and the air located management and control above it. The United marital property States uses a property mixed property ownership system in partition suit which a purchaser of percentage interests real estate is actually personal property/chattel buying the rights of police power ownership held by the possession seller. predetermined date property An owner’s rights probate are like a bundle of quiet enjoyment rights with respect to severalty the property. Degrees survivorship marital property of ownership can be taxation thought of as having tenancy in common some, none, or all of trade fixture/chattel fixture the following rights.

D  isposition - The right to sell, lease, or will a property away. E  ncumber - The right to mortgage or give another party an interest in a property. E  xclude - The right to have sole use of a property. Possession - The right to occupy a property. Q  uiet enjoyment - The right to have uninterrupted use of a property without interference from former owners or tenants. 6. C  ontrol - The right to use a property in a lawful manner. 1. 2. 3. 4. 5.

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An owner’s bundle of rights to property may also be referred to as the “bundle of sticks” of ownership. This concept comes from the Middle Ages where a seller would symbolize the transfer of property by giving the buyer a bundle of sticks from a tree on the property. The buyer, by accepting the sticks, became the owner of the tree that the sticks came from it and the land attached to the tree. Today, sellers use deeds to transfer property to new owners but the concept of property ownership as a bundle of rights or sticks remains.

REAL VERSUS PERSONAL PROPERTY

Personal property, or chattel, is moveable or portable property. Personal property includes furniture, draperies, bank accounts, and crops. Personal property is not real estate and will not be included in a real estate transaction unless the parties agree to its inclusion. The Occupancy section at lines 57-60 of the WB-11 Residential Offer to Purchase states that “At the time of Buyer’s occupancy, Property shall be in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer’s consent.” Sellers cannot leave personal property behind unless the buyer agrees. If a seller is including a large amount of personal property in the purchase price for real estate, a seller transfers title to the personal property to the buyer with a bill of sale. The state-approved form for transferring personal property in a real estate transaction is the WB-25 Bill of Sale. This form transfers the seller’s title to the personal property to the buyer. If a seller is transferring an item with a title such as a car, the seller needs to transfer that title to the buyer in addition to using the WB-25 Bill of Sale as part of the transaction. A seller does not give a bill of sale to the buyer until closing because the bill of sale transfers title at the time that seller gives it to the buyer. If a seller provides a bill of sale to a buyer before closing, the buyer now owns the items on the bill of sale even if the transaction does not close. Only the party transferring the property needs to sign a bill of sale, which will contain a list of all the items the party is transferring to the recipient. A seller only uses a WB-25 Bill of Sale when the seller is including personal property in the real estate transaction. The WB-25 is addressed in a later chapter.

Fixtures

When a person permanently attaches personal property to real estate, it becomes a fixture and is part of the real estate. Fixtures are items that once were personal property but are now real property because they are permanently attached to the real estate. Fixtures are automatically sold with the real estate unless the parties agree to exclude listed fixtures from the transaction. Examples of fixtures include wall-to-wall carpeting, light fixtures, trees, heating and central air conditioning units, and built-in cabinets. Wisconsin’s residential listing contract and offer to purchase contain a list of standard fixtures but whether an item is a fixture is not always clear. If parties disagree about whether an item is a fixture, a court will consider the following questions: 1. How is the item attached? Can the item be easily removed without damaging the property to which it is attached? 2. How is it adapted? Is the item being used as personal property or real property? 3. What was the intent? Did the party that installed the property intend for it to be used as personal property or as a fixture? 4. Is there an agreement? Does the sales contract state if the property is to be treated as real or personal property? Improvements to property can also be fixtures. Improvements are valuable additions to a property made to enhance the value of the property. Improvements cost capital and labor and are more than just repairs.

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Trade Fixtures

Tenants of commercial properties may install trade fixtures for conducting business. Trade fixtures, or chattel fixtures, include items such as shelving and counters that a tenant installs in a retail store or kitchen equipment installed in a restaurant. Trade fixtures are the tenant’s personal property even though the tenant attaches or installs them in the building. Tenants usually intend on removing trade fixtures at the termination of a lease. If a tenant does not remove trade fixtures at the termination of a lease, the tenant abandons the trade fixtures and they become the real property of the property owner by accession. There is no established statutory time frame that needs to be met before accession takes place. If a person borrows money to purchase an item of personal property such as a car or equipment, the loan may be secured by the personal property. This is called a chattel mortgage or a security interest.

Mobile Homes

Depending on the characteristics of a mobile home, it may be real or personal property. A mobile home is a prefabricated housing unit that the owner may or may not attach to the land underneath the home. An owner can remove a mobile home from a foundation to which it is attached and move it to a new location. Mobile homes exhibit characteristics of both real and personal property. In Wisconsin, a mobile home is personal property unless it is on a foundation, attached to utilities, and on land owned by the mobile home owner. If those three characteristic exist, the mobile home is treated as real property and a licensee can be involved in transferring ownership of the mobile home from a seller to a buyer. If the mobile home does not exhibit all three characteristics, it is a recreational vehicle and personal property. Because the mobile home is not real estate, a licensee should not engage in the transaction transferring ownership. Any person who sells more than one recreational vehicle per calendar year must have a license as a recreational vehicle dealer or salesperson. If a licensee is going to assist in a permissible sale of a personal property recreational vehicle, the licensee cannot use state-approved real estate contracts because the transfer does not involve real estate. Licensees should consult their supervising broker to learn about the firm’s mobile home sale policy.

ESTATES IN LAND A person has an estate in land when the person has some or all of the bundle of rights or “sticks” of ownership. An estate in land gives the owner possession of the land for a determinate duration. An estate in land is the interest an owner has to use, possess, control, and dispose of the land and it defines the nature, degree, extent, and duration of a person’s ownership. Estates in land are divided into two primary categories: freehold and leasehold. 1. F  reehold Estate: A freehold estate in real property lasts until the owner chooses to sell the property, transfer it to another as a gift, or dies, which transfers the deceased owner’s interest in the property to heirs by a will or by the laws of intestacy. The owner maintains all six “sticks” in the bundle of rights until some action by the owner, including death, grants the property to a new recipient. 2. L  easehold Estate: A leasehold estate is a personal property interest in land that lasts until some event occurs. Under a leasehold estate, a tenant has the rights to exclusion, possession, quiet enjoyment, and control for a period of time set forth under the lease. At the end of the lease term, the rights held by the lessee revert back to the property owner. Interest in a leasehold estate survives the death of the tenant, the property owner, or both.

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Freehold Estates

Freehold estates allow for ownership and possession of a property but a grantee’s bundle of rights is limited by the kind of estate granted by the grantor. Fee simple absolute is the maximum ownership and greatest estate in land. In most transactions, the buyer (grantee) is receiving from the seller (grantor) a fee simple estate. Ownership is forever and the owner has the full bundle of rights until the owner chooses to dispose of the property. An owner’s rights to property held as fee simple absolute are only subject to government powers. Federal, state, and local governments have the power to create laws to protect public health, safety, and welfare. Government powers protect the general welfare of the community and they supersede the rights of individual property owners. The government powers are: 1. Police power: State power that the legislature passes to municipalities through enabling acts. Municipalities use police power to preserve order, protect public health and safety, and promote general welfare. Zoning is an example of a municipality’s police power. 2. Eminent domain: A government’s right to take private land for public use. A government exercises eminent domain through condemnation. To use eminent domain, a government must show that the taking of the land is in the public interest and must pay the property owner just compensation. 3. Taxation: A government charges taxes on real estate to raise funds to meet public needs such as schools and roads. 4. Escheat: Escheat occurs when a property owner dies without a will and without heirs and the state or county becomes the owner of the property. Escheat prevents a property from becoming abandoned and without an owner. Fee simple defeasible estates continue indefinitely as long as the estate holder observes the terms of the estate. Ownership depends on the occurrence or the nonoccurrence of an event. A grantor creates a fee simple defeasible by encumbering a deed with a condition requiring the grantee to use the property in a certain way or observe some other condition to maintain ownership of the estate. For example, a grantor grants land to a city as long as the city uses it for a park. If the city uses the land for a parking lot, the city violates the deed condition and the title to the property transfers to a subsequent grantee according to the terms of the deed condition. A licensee should refer transactions involving a fee simple defeasible to an attorney. Life estates are estates in land where parties measure ownership by the life of the ­life estate holder or some other person. When the life estate terminates on the death of the life estate holder, the prop­erty passes to a future owner based on the terms of the life estate. A life estate is not inheritable. An owner of a life estate is a life tenant. A life tenant is the legal owner of the property during the lifetime of the life tenant. The party who will receive the property at the death of the life estate holder is the remainder person. A hospital planning for future expansion purchases surrounding properties, giving life estates to the individual sellers. The sellers receive market value for the homes and retain the right to live in the homes until death. As the individual homeowners die, the property passes to the party holding the remainder interest, which is the hospital. Over time, the hospital acquires the property it needs to expand. A parent deeds a house to an adult child, reserving a life estate. The parent is the life tenant and holds a life estate. The adult child is the remainder person and holds a remainder interest in the home. The life tenant can sell the property, subject to the life estate, which means that the property still transfers to the adult child/ remainder person at the death of the life tenant.

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A life tenant: 1. May possess the property, use it in its ordinary fashion, and receive profits from property. 2. Must keep the premises in a reasonable state of repair so that the property received by the remainder person is in good condition and has maintained its overall value. 3. Must pay taxes, special assessments and other debts of the property. 4. Cannot create any interest that extends beyond the life estate.

Leasehold Estates

A leasehold estate, under common law, is a personal property estate in land that transfers from the lessor (landlord) to the lessee (tenant). Parties use a lease to transfer the estate from the lessor to the lessee. A lease defines the period of time the lessee has to exclusively use and possess the property, the amount of money the lessor is charging for that use, and any other duties or obligations of the landlord and tenant. The tenant holds a less-than-freehold estate in land. Leasehold estates are less-than-freehold estates because the entire bundle of rights does not pass to the tenant. When a ­tenant and landlord enter into a lease, the rights of exclusion, possession, quiet enjoyment, and control pass to the tenant and the landlord retains a reversionary interest. The tenant receives the bundle of rights or “sticks” of ownership except disposition and the right to encumber. When the leasehold estate expires, the tenant-held rights transfer or revert back to the landlord. The landlord’s reversionary right is the right to have the tenant’s rights of exclusion, possession, quiet enjoyment, and control revert back to the landlord’s bundle of rights. A leasehold estate survives the death of the lessor or lessee and it binds the heirs of the deceased party. Wisconsin limits the liability of residential tenants for lease obligations if a tenant dies during the term of the lease. If a residential tenant dies, the tenancy is terminated on the earlier of either sixty days after a landlord receives notice of the death or the expiration of the rental term. A lease survives transfer of title. A seller shall assign the seller’s rights under a lease and transfer all security deposits and prepaid rents to the buyer at closing. The seller remains liable under a lease unless released by the tenant. The seller should consider obtaining an indemnification agreement from the buyer for liabilities under the lease unless the tenants are willing to release the landlord from the lease obligations. An indemnification agreement is an agreement to reimburse or compensate someone for a loss. If a seller obtains an indemnification agreement from the buyer and the buyer, as the new owner, breaches a lease term and causes damage to the former owner, the buyer must compensate the former owner for losses. Lessor/Lessee Obligations Neither a landlord nor a tenant is required to make improvements to property unless specifically stated in the terms of the lease. A landlord must keep property in habitable condition, and tenants must return the premises in the same condition as when the tenant received it. A lease agreement should address whether a tenant has the right to install fixtures during the lease term and what happens to the fixtures at the termination of the lease. The Department of Agriculture, Trade and Consumer Protection (DATCP) regulates residential rental practice. A landlord must notify tenants of the following before accepting a security deposit: 1. T  he tenant has seven days to inspect the dwelling unit at the beginning of the t­enancy. 2. The tenant has seven days to request a list of physical damages or defects, if any, charged to the previous tenant’s security deposit.

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A landlord must provide a check-in sheet to a new tenant. The tenant shall be given 7 days from the date the tenant commences his or her occupancy to complete the check-in sheet and return it to the landlord. The landlord is not required to provide the information check-in sheet to a tenant upon renewal of a rental agreement. A landlord must return the full amount of the security deposit, less any amounts properly withheld within 21 days after any of the following: 1. If the tenant vacates on the date the rental agreement terminates, the date on which the rental agreement terminates; or 2. If the tenant vacates the premises or is evicted before the termination date of the rental agreement, the date on which the tenant’s rental agreement terminates or, if the landlord re-rents the premises before the tenant’s rental agreement terminates, the date on which the new tenant’s tenancy begins; or 3. If the tenant vacates the premises or is evicted after the termination date of the rental agreement, the date on which the landlord learns that the tenant has vacated the premises or has been removed from the premises. Security deposits may be withheld for any of the following reasons: 1. Tenant damage, waste or neglect of the premises. 2. Unpaid rent for which a tenant is legally responsible. 3. Payment that a tenant owes under the rental agreement for utility service. 4. Unpaid mobile home parking fees. Security deposits may not be withheld for normal wear and tear. This means a landlord cannot withhold money from a tenant’s security deposit for routine carpet cleaning. Prohibited Practices: 1. Landlords may not rent or advertise for rent a premises that has been ­placarded and condemned for human habitation. 2. N  o property owner may enter a dwelling unit during tenancy except to inspect the premises, make repairs, or show the premises to prospective tenants or purchasers. 3. N  o landlord may enter a dwelling unit during tenancy except upon advance notice and at reasonable times. Advance notice means at least 12 hours advance notice unless the tenant, upon being notified of the proposed entry consents to a shorter time period. 4. A  landlord may enter a premises if the tenant, knowing the proposed time of entry, requests or consents in advance to the entry, a health and safety emergency exists, or the tenant is absent and the landlord reasonably believes that entry is necessary to protect the premises from damage. 5. N  o landlord may enter a dwelling unit during tenancy without first announcing his or her presence to persons who may be present in the dwelling unit, identifying himself or herself upon request.

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6. L  andlords cannot enforce an automatic renewal or extension provision unless the tenant was given separate written notice of the pending automatic renewal at least 15 days, but no more than 30 days before its stated effective date. 7. N  o landlord may seize or hold a tenant’s personal property, or prevent the tenant from taking possession of the tenant’s personal property. 8. N  o landlord shall terminate a tenancy or give notice preventing the automatic renewal of a lease, or constructively evict a tenant by any means including the termination or substantial reduction of heat, water or electricity to the dwelling unit in retaliation against a tenant because the tenant has: a) Reported a law violation or a building or housing code to any governmental authority, or filed suit alleging such violation; b) Joined or attempted to organize a tenant’s union or association; or c) Asserted, or attempted to assert any right specifically accorded to tenants under state or local law. 9. N  o landlord shall fail to deliver possession of the dwelling unit to the tenant at the time agreed upon in the rental agreement, except where the landlord is unable to deliver possession because of circumstances beyond the landlord’s control. 10. No landlord may exclude, forcibly evict or constructively evict a tenant from a dwelling unit. 11. Late rent fees and penalties a) No landlord may charge a late rent fee or late rent penalty to a tenant, except as specifically provided under the rental agreement. b) B  efore charging a late rent fee or late rent penalty to a tenant, a landlord shall apply all rent prepayments received from that tenant to offset the amount of rent owed by the tenant. c) No landlord may charge any tenant a fee or penalty for nonpayment of a late rent fee or late rent penalty.

FORMS OF OWNERSHIP

An estate in land defines the nature, degree, extent, and duration of a person’s ownership. A property owner must designate how the owner holds title to the estate. A licensee cannot give advice on how an owner should hold title but a licensee should have an understanding of the different forms of ownership. Wisconsin law does not limit land ownership to residents or even individual people. People who are not residents of a state of the United States and entities such as corporations or trusts can own land. There are some ownership limits placed on corporations and non-residents based on acreage limits. Buyers with questions related to this should be referred to an attorney. Severalty An interest that is severed from all others. The owner exclusively holds the bundle of rights. No other party has an interest in the ownership or the authority to transfer title to the property. Co-ownership The title to real estate is held by more than one owner.

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1. Tenancy in Common Tenants in common hold a fractional interest in a property. They have equal rights to possess the property even though they may not own equal shares. For example, one owner may own 40% and two other owners each own 30%. The three people own the property as tenants in common. Tenants in common hold their individual interests in ­severalty. This means that each owner has the ability to control the individual ownership interest. An owner can sell an interest without the consent of the others, unless all parties have an agreement stating otherwise. A tenant in common can will the tenant’s interest upon death; it does not automatically go to the surviving owners. In Wisconsin, the law presumes tenancy in common when more than one person owns a property. If nothing is expressed to the contrary in the deed, the owners hold the property as tenants in common and in equal shares. If tenants in common do not own equal interests, they must state this in the deed.

A A

B C

A and B own a ­property as tenants in common.

Upon B’s death, title would transfer to C, according the terms of B’s will.

2. Joint Tenancy Co-owners can title property as joint tenants. A joint tenancy can only be created by will or deed. This means either the will of a deceased person dictates that the heirs hold title to the property as joint tenants or a property’s deed will list the owners as joint tenants. Unless the property’s deed says otherwise, the law assumes tenancy in common with equal shares. Under a joint tenancy, all owners have equal rights to possession and hold an equal ownership interest. Joint tenants enjoy a right of survivorship. This means that when one joint tenant dies, that deceased joint tenant’s interest automatically vests in the surviving joint tenant or tenants. The surviving joint tenant or tenants take ownership of the property without the property passing through the probate process. This is called a non-probate or non-testamentary transfer. Probate is the formal judicial proceeding that a court uses to prove or confirm the validity of a will, to collect the assets and claims of a decedent’s estate, pay debts and taxes that the estate owes, and to determine the heirs who will inherit the remainder of the estate. A joint tenant can sell the joint tenant’s interest without the consent of the other joint tenant. The new owner does not take title as a joint tenant. The new owner takes title as a tenant in common. The remaining owners’ interest, as joint tenants, remains the same. A, B, and C hold title as joint tenants in equal one-third shares. B sells a one-third interest to D. D is not a joint tenant with A and C. A and C are still joint tenants and D is a tenant in common. A, C, and D each own a onethird share. If A dies, A’s share transfers to C automatically because A and C are joint tenants with a right of survivorship. C and D now hold title as tenants in common. D owns a one-third interest and C owns a two-thirds interest.

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A A C

B D D

C C C

A, B and C hold title as joint tenants. B sells to D.

A and C continue to hold title as joint tenants. D holds title as a tenant in common. A dies. A’s title would transfer to C, because joint tenants have a right of survivorship. C and D now hold title as tenants in common (no survivorship).

Under a tenancy in common and a joint tenancy, co-owners can file a partition suit to dissolve the tenancy. A partition suit is a legal remedy used when all of the parties do not voluntarily agree to sell. A court, if unable to divide the property between the remaining owners without destroying its value, will order the sale of the property as a whole and distribute the proceeds to the owners according to their fractional interest in the property.

WISCONSIN MARITAL PROPERTY

On January 1, 1986, Wisconsin’s Marital Property Act became effective. The Marital Property Act made Wisconsin a community property state, which means that each spouse owns an undivided onehalf interest in the property of the other spouse acquired after their determination date, regardless of which spouse actually acquired the property. Property includes income, assets, and real and personal property. A couple’s determination date is the latest of: the date the couple got married; the date they established a domicile in Wisconsin; or January 1, 1986. Property is classified as marital, individual, mixed, or survivorship. The act also addresses property acquired before a couple’s determination date. The state acknowledges certain exceptions to the classification of property after the determination date. The law presumes that all of a couple’s property is marital property and spouses must be able to show otherwise if the property is not marital property. Marital Property Act classifications: Marital Property: Including, but not limited to all property and salaries of married persons. Each spouse has an undivided one-half interest in each item of marital property without regard to the actual monetary value of a spouse’s contribution to the asset. A spouse can convey his or her one-half interest in a marital property asset and the non-conveying spouse will have an interest in any proceeds from the conveyance. Upon the death of a spouse, one-half of all marital property assets become part of the estate of the deceased spouse and may be distributed pursuant to the will of the deceased spouse. Individual Property: Property one spouse received as a gift or inheritance; property acquired prior to marriage; income from individual property designated as individual property; appreciation of value from individual property; and property declared by decree or marital property agreement as the individual property of the spouse.

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Mixed Property: Combination of both individual and marital property. It is always treated as marital property. Spouses who want to keep individual property must keep it separate from marital property. Mixing individual property with marital property will change the individual property to marital property. If a non-owner spouse uses substantial labor, effort, inventiveness, physical, or intellectual skill, creativity or managerial activity that results in substantial appreciation of the other spouse’s individual property, the property is treated as marital property unless the spouse that owns the individual property provides reasonable compensation to the non-owner spouse. Predetermination Date Property: Applies to property acquired by married couples before their determination date. This property is reclassified as marital property in the event of divorce or death of one of the spouses. Survivorship Marital Property: Allows a property to pass to the surviving spouse without going through the probate process. If spouses take title as joint tenants, the property will be classified as survivorship marital property. A married couple’s homestead is ­automatically held as survivorship marital property unless they title it differently in the deed or have a marital property agreement stating otherwise. Homestead is defined as the home or dwelling of a married person and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, but not less than one-fourth acre, if available, and not exceeding 40 acres. The definition is broad and covers properties such as a duplex if the couple or one of the spouses resides in one of the units.

MANAGEMENT AND CONTROL

The rights to management and control of property can determine who has the authority to sell, lease, dispose, or mortgage the real estate. If property owners title property using “or,” either owner may exercise management or control over the property. If property owners title property using “and,” both owners must consent to the management or control decision. If a married couple owns a homestead, both spouses must sign any conveyance regardless of whether the deed lists both spouses as owners. Mary and John get married. They purchase a house. Only Mary’s name is on the deed. Mary decides to sell the property. Because it is a homestead property, both Mary and John’s signatures are required to transfer title, even though only Mary is on the deed.

CONDOMINIUM OWNERSHIP

The condominium form of ownership takes what otherwise might have been an apartment or townhouse and permits individual sale of the separate dwelling units. A condominium is a form of ownership of real property, just like a joint tenancy or a tenancy in common. It is important that a licensee has a basic understanding of the concepts of condominium ownership. Historically, condominiums were generally apartment buildings where buyers could purchase individual units but condominium refers to a form of ownership, not a style of property. Condominium ownership can be used for apartment-style units, multiple-units, side-by-side units, or single-family home freestanding structures. Condominium ownership is a shared form of ownership and does not just apply to residential dwellings but can also apply to property such as airplane hangars, commercial structures, boat slips, and parking spaces.

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A condominium unit is the part of the condominium intended for independent use. The unit owner has exclusive ownership and possession of the unit. The unit owner can use the unit as defined by the condominium declaration and plat. An owner should review the definition to determine whether, for example, a side-by-side townhouse unit includes just the cubicles of air within the interior walls or also includes the finished surfaces of the interior walls, such as wallpaper and paint. Typically, an owner owns an individual unit as an exclusive possession, which most often includes the interior of the outside wall. Common elements are everything else in the condominium that are not units. In a residential condominium, common elements may include the grounds, a swimming pool, the exterior of the building, the landscaping and outdoor lighting, elevators, and fitness rooms. A unit, together with its undivided interest in common elements, is an interest in real estate. A condominium owner owns the unit in severalty and the common elements as a tenant in common with the other condominium owners. Limited common elements are elements of the condominium that are identified in the declaration or plat as reserved for the exclusive use of one or more unit owners. All owners own the limited common elements but only certain owners have access or the right to use them. Limited common elements can include a storage area, patio, balcony, garage, parking space, or boat slip. The declaration or bylaws may permit unit owners to transfer limited common elements by deed to other unit owners. For example, a unit owner could deed a parking space to another unit owner in exchange for a storage space or for some other compensation. A condominium owner would have to consult the condominium documents to determine if the association permits this kind of exchange. A condominium association is usually responsible for the maintenance of limited common elements even though only some or a single owner has the right to use the element. A condominium association can also limit the use of limited common elements. A condominium unit includes a patio as part of the unit. The owner of that unit will be responsible for maintenance and has exclusive use of the patio. A condominium unit includes a patio as a common element. The association will be responsible for maintenance and all condominium owners can use the patio. A condominium unit includes a patio as a limited common element. The association will be responsible for maintenance and only some condominium owners can use the patio. Unit owners own an undivided interest in the common elements as tenants in common. The condominium declaration determines the individual owner’s percentage interest. The percentage interest determines the: 1. Extent of the unit owner’s undivided ownership interest in the common elements; 2. Extent of the unit owner’s responsibilities for common expenses; 3. Unit owner’s voting power; and 4. Amount of a unit owner’s proceeds in the event that the condominium is terminated. Condominium declarations may establish percentage interests based on the number of units, the square footage, the location, the value, or some other formula. The condominium association is made up of all unit owners acting together as a group to manage and maintain the condominium property that they collectively own. Every unit owner is automatically a member of the association and only unit owners may be members of the association. In the case of newly developed condominiums, the developer or declarant is often a member of the association. The association administers and governs the condominium. 111

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A condominium association manages reserve accounts to protect owners from incurring large, unexpected, out-of-pocket expenditures. For example, an association may establish a reserve fund for a new roof that a building will need sometime in the future. This prevents an association from having to issue a large special assessment on owners when it is necessary to replace a roof. If the association did not reserve funds to address large-scale projects and instead assessed owners when projects became necessary, unit owners may not be able to pay the assessments at the time due, which could jeopardize the financial well-being of the association and prevent it from maintaining the common and limited common elements. Lenders are reluctant to provide mortgage loans for condominiums that do not have adequate reserves and insurance companies are unwilling to insure associations without adequate reserves because of the risks that an association will incur large-scale expenses for which funds are not available. To create adequate reserve funds, associations often establish a long-term maintenance plan that schedules periodic repairs and improvements to common and limited common elements. Unlike other states, Wisconsin condominium law does not require that condominium associations establish reserve funds. Whether a condominium retains a reserve fund will be an important consideration for a buyer, especially for a buyer who needs to obtain a mortgage to purchase the unit.

COOPERATIVE OWNERSHIP

Cooperative ownership, also called a co-op, permits owners to purchase stock in a corporation that holds title to a building. The corporation grants the stockholder a proprietary lease for a specific unit in the building. The corporation holds title to the land and building and the owners, who are shareholders of the corporation, lease the individual units. The residents are tenants of the corporation’s building and owners of the corporation. Leaseholders pay a share of the corporation’s expenses such as mortgages and real estate taxes in exchange for occupancy of the unit. A leaseholder’s share of the expenses can depend the size of the unit, the purchase price, or some other formula. A cooperative owner does not own the unit like a condominium owner but rather owns stock in a corporation, which holds the building as the corporation’s main asset. Unlike voting power in a condominium, which is usually based on the size or value of the unit, voting in a cooperative is usually one vote per unit. Cooperatives usually require board of director’s approval of any transfers of stock and leases to new owners. Cooperative owners are collectively responsible for the financial status of the corporation, which means if a leaseholder defaults on monthly payments, the other owners must pay the difference so that the corporation is able to pay its expenses such as the building’s mortgage, utilities, and taxes. If the corporation cannot pay the mortgage, the lender could foreclose, which could terminate the stockholder’s leases even if the individual stockholder has not defaulted. The lender issues the mortgage to the corporation rather than to the group of tenants. The tenants are responsible for their share of the cooperative’s expenses. A Wisconsin real estate license does not permit a licensee to sell stock because it is not real property but if the sale of stock in a cooperative ownership building is incidental to the licensee’s real estate practice, the licensee can participate in the transfer. Licensees must be careful because the state approved real estate forms are not for use in the sale of stock.

TIME-SHARE OWNERSHIP

Time-share ownership historically has been treated as an interest in real property with the right to use the facility for a fixed or variable time period. Owners convey time-shares to new owners by deed. With time-share ownership, owners buy fixed or floating time periods for use of a ­specific unit within a project. Common expenses are prorated among the owners. Time-shares are common in resort communities. 112

8

Title of Real Estate Wis. Stats. 77.22, 77.27

Chapter Overview

This chapter discusses how parties transfer real estate and the importance of having marketable title to real estate.

Important Terminology abstract of title ad valorem appurtenant easement assessed value chain of title commercial easement in gross construction lien constructive notice deed dominant estate/ tenement easement easement by condemnation easement by necessity easement by prescription easement in gross encroachment encumbrance equitable title gap endorsement gap period general lien

TRANSFER OF TITLE

T

ransfer of real estate involves transferring a property’s equitable title and legal title. Legal title of real estate refers to the bundle of judgment lien rights of ownership lien in land and evidence lis pendens of ownership. A marketable title person can receive mortgage lien title to real estate by party wall easement will or by deed. personal easement in gross personal representative’s deed A deed is a written property taxes instrument that a quitclaim deed grantor uses to recording transfer ownership servient estate/ tenement of property to a special assessments grantee. The deed specific lien signals the end of suit to quiet title one ownership and title insurance policy the beginning of trustee’s deed another. Without a use-value assessment valid deed, a party warranty deed cannot transfer title writ of attachment to another party. writ of execution

Tom purchased property from sellers Bob and Rita. Bob and Rita are a married couple selling their personal residence. Bob and Rita signed the offer to purchase. Only Bob signed the deed. Legal title did not transfer because both Bob and Rita needed to sign the deed. Equitable title is the right to obtain absolute ownership to property when legal title is held in another’s name. Under a purchase agreement or sales contract, a buyer receives equitable title when all contingencies are removed from the offer. The buyer does not receive legal title until closing. Under a land contract, a buyer receives equitable title when the parties execute the contract, but the buyer does not receive legal title until the buyer pays the entire principal amount of the loan. 113

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Written instruments such as deeds, mortgages, easements, and land contracts should be recorded in the register of deeds in the county where the property is located. Recording the deed gives constructive notice of a property’s ownership to third parties. Constructive notice gives the public notice or knowledge of the titleholder’s ownership. Constructive notice creates the right of quiet enjoyment by providing notice to third parties of the owner’s rights to a property. Constructive notice protects the owner from any other party challenging the ownership of a property. Recording a deed in the county in which the property is located makes a deed valid against subsequent purchasers; an unrecorded deed is valid only between the parties. Each county has a public recorder’s office. When a copy of the deed is recorded, the recorder cross-indexes it under the names of both the grantor and the grantee. Most property owners record deeds but a deed does not need to be recorded for a transfer to be valid. Maureen transferred ownership of her property to Suzy, who did not record the deed. Maureen died unexpectedly. Her heirs were not aware that she had transferred title to Suzy so they sold the property to Nick. Nick recorded the deed. Nick, not Suzy, is the owner of record and has legal title.

DEEDS There are several types of deeds but the most common ones used in most real estate transactions are the warranty, quitclaim, personal representative, and a trustee’s deed.

Warranty Deed

A warranty deed offers the most comprehensive guarantee of title. A warranty deed assures the grantee that the property is free from liens and encumbrances, except those specifically listed in the deed. The grantor certifies that the title being conveyed is free of defects that may arise either before or during the time the grantor owned the property. The grantor is also defending both the current title as well as the title of previous owners. The warranty deed guarantees the seller’s ownership rights but not the physical condition of the property or structures attached to the property. A deed does not have to specify the intended use of the property. A special warranty deed warrants just the current owner’s condition of title. Special warranty deeds are rare in Wisconsin.

Quitclaim Deed

A quitclaim deed operates as a release of a grantor’s interests in a ­property. A quitclaim deed does not warrant title or possession. It is an instrument that transfers title but makes no defense about the condition of title or even the right of the grantor to transfer title. A quitclaim deed conveys only the grantor’s right, title, or interest. If the grantor does not have any interest in the property, the grantee will not acquire anything. A quitclaim deed is not commonly used to convey a fee but is used when parties are releasing or conveying minor interests in real estate for the purpose of clearing title defects. It may also be used to convey lesser interests such as life estates. A party may use a quitclaim deed when deeding a portion of a lot, when the transfer is between spouses, or to record an easement. If a seller conveys property with a quitclaim deed, it does not mean that subsequent grantors must convey using quitclaim deeds.

Personal Representative’s Deed A personal representative’s deed is used by a personal representative who is conveying property as the representative of an estate. It does not contain warranties.

Trustee’s Deed

A trustee’s deed is used by a trustee when transferring property from a trust to another party.

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WISCONSIN TRANSFER FEE In Wisconsin, a party transferring real estate must pay a transfer fee when recording the transferred deed. The transfer fee is usually included as a seller’s closing cost. The transfer fee is 30 cents for each $100 of value transferred. It is calculated on the selling price rounded up to the nearest $100. If the transfer is by a land contract, the transfer fee is based on the total principal amount a buyer will pay over the course of the land contract. To calculate the fee, round the selling price up to the nearest $100 of value and multiply by .003. Selling price is $89,350 Round up to the nearest $100 = $89,400 Multiply $89,400 by .003 = $268.20 transfer fee

Selling price is $92,125 Round up to the nearest $100 = $92,200 Multiply by .003 = $276.60

The penalty for falsifying the value on a transfer fee is not more than $1,000 or imprisonment in a county jail for not more than one year, or both. A property sells for is $800,000. The parties agree to rewrite the offer to reflect a sale price of $600,000 and prepare a bill of sale for $200,000 in personal property. However, the $200,000 in personal property does not exist. The parties rewrote the second offer to falsify the sale price and reduce the amount of the transfer tax.

ENCUMBRANCES TO REAL ESTATE TITLE

An encumbrance is anything that affects the title to real estate. It is a right or interest held by a party who is not the property owner. It may lessen the property’s value or burden, obstruct or impair the use of a property, but not necessarily prevent transfer of title. Encumbrances that may affect title include judgments, mortgages, encroachments, and easements. Encumbrances are material adverse facts. If a seller does not disclose encumbrances on the seller’s real estate condition report, a licensee must disclose them in writing, to all parties, in a timely manner.

Easements

An easement is the right to use the property of another. It is a liberty, privilege or advantage in land given to a party and exists separately from the ownership of the soil. An easement may encumber any part of the land including the subsurface, the surface, or the air rights. The easement holder owns a right to use the property but does not own or possess the property. The easement holder has the right to use the land for a specific purpose. An easement owner is usually responsible for repairs of areas subject to the easement. An easement transferring an interest in real estate should be in writing and recorded. Parties who want to create an easement usually consult an attorney to draft the easement document. Easements may have termination conditions, expiration dates, require the exchange of a onetime fee or periodic payments, or they may continue indefinitely. Parties creating an easement should specify the terms and responsibility for maintenance and repair in a written agreement to avoid potential future disputes. Most easements “run with the land,” which means that they permanently affect the title to the property. An easement that runs with the land binds subsequent owners of the property. If a subsequent owner interferes with the right of an easement holder to use the easement, the easement holder can sue for damages or for an injunction ordering the interfering party to stop interfering.

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1. Appurtenant Easement An appurtenant easement exists between two adjacent parcels. The parcel that owns the easement, the right to use another’s land, is the dominant estate or dominant tenement. The dominant estate owns the easement; it does not own the land. The parcel over which the easement runs is called the servient estate or servient tenement. The servient estate owns the land. The servient estate serves the needs of the easement owner. Appurtenant easements are created for a particular parcel of land. Parcel A has a driveway and Parcel B has the right to use that driveway to get to a garage located on Parcel B. Parcel A is the servient estate and Parcel B is the dominant estate. The following are examples of appurtenant easements: a) Easement by Necessity A court may grant an easement by necessity to allow for ingress and egress if a property owner has no way, other than by trespass, to reach a public road by land. Before granting an easement by necessity, a court will require the person seeking the easement to negotiate with neighboring property owners for access. Negotiations will include attempting to purchase the necessary land or purchase an easement across a neighboring parcel. It is legal to sell a landlocked parcel. However, Wisconsin law states that a seller, when subdividing land, must provide the buyer access to the new parcel. b) Easement by Prescription A court may grant an easement by prescription to a claimant who has made use of another’s land for a period of time, usually 20 years. The use of the property must be continuous, ­exclusive, v­ isible, open, notorious, and hostile. The prescribed time can be established by one individual or by tacking the times of different ­parties together. These parties must prove successive and continuous use of the property to successfully achieve tacking. Mark has driven openly through David’s land to get to his property for 15 years. David did not give permission to Mark to use the land. If David now tried to prevent Mark’s access across David’s land, Mark may be able to sue David for an easement by prescription. If a court granted Mark an easement by prescription, he would have a permanent right to drive over David’s land to get to his property. c) Party Wall Easement A party wall easement is for maintaining a shared wall or fence. Neighbors may share a wall or fence between structures or land to conserve space and maximize use of a parcel of land. For example, owners of adjacent row or town houses may share a common wall between the buildings or yards. The parties usually have a written agreement for maintenance and repair. Party wall easements also permit agricultural property owners to maintain statutorily required fences. Wisconsin statutes require the owners of adjoining land used for farming or grazing to jointly construct and maintain fences between their lands. If one owner fails to build or maintain the fence, the neighboring landowner may complain to the fence viewers, who are the town supervisors, city alderpersons, or village trustees. If the fence viewers determine that the fence has not been ­properly built or maintained, they will direct the delinquent owner to repair or rebuild the fence. If the owner does not comply, the neighboring owner may repair or rebuild the fence and have the fence viewers determine the delinquent owner’s share of the costs. If the ­delinquent owner does not pay, the neighboring owner can then file a certificate of the fence viewers’ determination with the town clerk and receive payment from the town treasury. The town then places a tax lien on the delinquent owner’s property for reimbursement of the repair costs. 116

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2. Easement by Condemnation A government can acquire an easement by condemnation. The difference between an easement by condemnation and condemnation through eminent domain is that with condemnation through eminent domain, the government takes ownership of the property and with easement by condemnation, the government owns a right to use the land rather than owning the land. An example of an easement by condemnation is when a government decides to put a walking path through private property so all citizens can enjoy a view of a lake. 3. Easements in Gross A property owner can grant an easement in gross to another party, which gives a specific party a right to do something rather granting a right attached to a piece of land. Easements in gross occur between a property owner and another party. Ease­ments in gross are for the personal benefit of the easement holder instead of for the benefit of a particular parcel. There is no dominant estate in an easement in gross, only a servient estate. Easements in gross can be personal or commercial. a) Personal Easement in Gross A personal easement in gross exists between a landowner and another person. The person owns an individual interest in the property. Personal easements in gross are not transferable or assignable and terminate upon the easement owner’s death or the title’s transfer, whichever occurs first. An example of a personal easement in gross is hunting rights granted to a hunter to use another’s land for hunting purposes. b) Commercial Easement in Gross A commercial easement in gross exists between a landowner and a company. Commercial easements in gross are transferable and survive the lifetime of the parties. Examples of commercial easements in gross include a railroad right-of-way or a utility easement for a pipeline or power line. Termination of Easements There are events that may terminate an easement. 1. Merger of the servient and dominant estates. 2. Abandonment by the dominant estate. 3. Release of interest. 4. Purpose of easement ceases to exist. 5. Eminent domain or adverse possession. 6. Overburdening and incorrect use of the easement.

Encroachments

An encroachment exists when a fixture, such as a wall, fence, or roof illegally intrudes onto the property of another. An encroachment can occur when a structure extends beyond the physical lot lines or the setback lines. A search of the public records will not reveal encroachments so a seller must disclose all known encroachments to a buyer. An undisclosed encroachment may cause a title to be unmarketable.

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A marketable title is free from undisclosed encumbrances, discloses no serious defects, does not expose the buyer to litigation, and would be accepted by a well-informed buyer acting within sound business principles with the belief that the title may be easily conveyed in the future. Title does not have to be perfect but needs to be free from reasonable doubt. A buyer wants to be sure that the condition of a property’s title will not expose the buyer to future litigation. Often, mortgages, liens, easements, and covenants cause a title to be unmarketable unless a buyer declares otherwise. If a property’s title is unmarketable, a buyer may be able to rescind an offer to purchase. Before a buyer will be permitted to rescind an offer, a seller has the opportunity to try to remove the title defects. The owners of a property added on to their garage and the addition extends three feet onto the neighboring parcel. The property owners and the owners of the neighboring parcel were not aware of the encroachment. The owner of the neighboring lot accepted an offer to purchase and the buyers ­conducted a survey that disclosed the encroaching garage. Because the title the buyers will receive is different than the title they bargained for in the offer to purchase, they may be able to rescind the offer.

Liens

A lien is a charge against property that provides security for a debt and provides a lienholder a way to use another’s property to ensure payment for work performed, services rendered, or debts incurred. Some common examples are a mortgage lien, which would be held by a lender on a financed property or a tax lien, which is claimed by a taxing district when a property owner owes taxes on property. To enforce a lien, a lienholder files a court action asking the court to force the sale of the property or transfer title to the lienholder. The lienholder’s claim is paid with the sale proceeds or satisfied by the transfer of title. The existence of a lien does not necessarily prevent title from transferring. Liens can diminish the market value of real estate because many buyers do not want to purchase a property with a lien against it. A lien runs with the land and attaches to the property, not the property owner. A purchaser buys property subject to any liens and the property will remain burdened by the lien until the claim is resolved, either by a property owner’s voluntary payment of the claim or by court action satisfying the claim. If a lienholder forecloses on a property to satisfy a claim, liens are paid according to a priority of liens schedule. Lien priority generally depends on the date a lienholder files the lien but government claims such as taxes or special assessments will take first priority followed by mortgage liens. Liens are either general liens or specific liens. A general lien can attach to both real and personal property. A specific lien attaches to specific property and only affects the property a party pledged as collateral for the debt.

TYPES OF LIENS 1. Mortgage Lien A mortgage lien is a specific lien. The mortgage lien is given to the lender by the borrower. The borrower receives the money and the lender receives the right to record a lien against the property. The lender records the lien in the county where the property is located. 2. Construction Lien A construction lien is given as security to a party who performs labor, furnishes materials, or provides professional services in the improvement of real property. A person who furnishes labor, service, or materials improving real property can file a lien to collect payment from a party who received the labor, service, or materials.

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A construction lien is a specific lien and attaches to the property, which means that the lien burdens subsequent owners of a property until the claim is resolved, even if the subsequent owner was not a party to the original agreement for the improvement. A construction lien is different from other liens because the lien’s effective date is the date the first visible work commenced rather than when the lien is actually filed in public records. Because a construction lien takes precedence from a date prior to when it is recorded in public records, it may create a hidden lien. 3. Judgment Lien A judgment lien is unlike the first two liens because it attaches to real and personal property and it is a formal decision by the court determining rights between parties disputing a debt. A money judgment establishes the amount a debtor owes to a creditor. Usually only property located in the county where a court issued the judgment is available to satisfy the judgment. To enforce a judgment, a party asks a court for a writ of execution, which is a court order that directs a sheriff to seize and sell property to pay the judgement and the cost of the sale. To prevent a debtor from conveying property while a court is deciding a case, a creditor can seek a writ of attachment. A writ of attachment is a legal procedure that places property that is the subject of a debt dispute in the custody of the courts. A party may also file a lis pendens, which is a notice of potential litigation involving a parcel of real estate. If a court orders the sale of property to satisfy a judgment, notice of the sale must be posted in at least three public places for at least three weeks prior to the sale. A lien’s priority for payment usually depends on the date a lienholder files the lien. Payment of some liens may depend on the date of the judgment or the date of the writ of execution. Mortgage liens usually take priority over other monetary judgments regardless of the date a party filed the lien. A creditor obtains a $12,000 judgment against Sam. Sam obtains a loan to purchase property. The creditor files a lien on the property to try to enforce the $12,000 judgment. Even though the judgement existed before the mortgage, the mortgage will still take priority over the judgement lien. 4. Tax, Special Assessments, and Condominium Liens A taxing district levies property taxes against real property. Property taxes are ad valorem taxes because they are based on the value of a property. Property taxes may be levied on real estate by different governmental bodies. These may include: a) State government; b) County government; c) City, town, and village government; d) School districts; and e) Recreational or park districts. Taxing districts use property taxes for the general operation of the governmental agency imposing the tax. Property owners pay taxes based on the assessed value of the property. County or township appraisers calculate a property’s assessed value using local market values. Each taxing district has its own formula for updating assessed values. Most use a combination of building permit records, on-site inspections, and transfer tax records. If a property owner disagrees with an assessment, the owner can request a re-assessment with a local board of appeal or board of review.

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Calculating the Tax Bill Wisconsin expresses taxes in the form of a mill rate. One mill rate is 1/1000 of a dollar or .001. To determine a tax bill using a mill rate, convert the mill rate to a decimal and then multiply the assessed value by the decimal mill rate. Determine the tax bill on a property assessed at $100,000 with a mill rate of 30 (mill means thousand in Latin). 30/1000 = .03 mills $100,000 x .03 = $3,000 tax bill Special assessments are a tax on property owners for an improvement such as new curbs. For example, if a city plans to upgrade a neighborhood’s sidewalks, the city will charge residents of that neighborhood a special assessment to finance the project. A property owner may owe special assessments based on overall property value or a municipality may charge property owners per linear foot for projects such as curbs, gutters, streets, and sidewalks. A condominium lien can be placed on a property if an owner fails to pay condominium fees such as association dues. A property may also be affected by liens resulting from other tax issues such as estate taxes or inheritance taxes. Sales involving businesses may be affected by Uniform Commercial Code liens, which can sometimes attach to personal property sold as part of a business transaction. Use-value Assessment Under the use-value assessment, owners of farmland pay property taxes based on the income that could be generated from the land’s rental for agricultural use. This determination of value for property tax purposes is often lower than the land’s fair market value or the land’s value based on potential development. Use-value assessments apply to land that is in agricultural use. When an owner of a property that has been assessed taxes based on the use-value assessment converts the property to a non-agricultural use, the owner pays a conversion charge. Wisconsin law requires sellers of agricultural land valued under the use-value assessment to notify buyers that the land is taxed under the use-value system, whether the seller has been assessed a conversion charge, and whether the seller has been granted a deferral of the conversion charge. Prudent sellers and agents should also disclose to buyers that the buyer may owe a conversion charge if the buyer converts the use of the land to non-agricultural. Not all conversions will result in a conversion charge and some owners can defer payment of a conversion charge if the owner intends to return the land to agricultural use in a succeeding taxable year. Wisconsin licensees must be familiar with this law and prompt sellers of agriculture lands to disclose if the land has been assessed under the use-value system. All WRA condition reports address use-value assessment disclosures. The conversion charge is a per-acre fee based on the number of acres taken out of agricultural production. The fee depends on the size of the parcel and the county in which it is located. The conversion charges change annually and do not apply until a property owner actually takes the property out of agricultural production. Current conversion charges can be found at the Wisconsin Department of Revenue’s website at www.revenue.wi.gov.

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TAX CALCULATIONS

1. A house has a value of $170,000. The property is assessed at 98%. What is the assessed value?

2. If a property is valued at $280,000 and assessed at 95% of its value, what tax will the property owner pay if the tax rate is $4.80 per $100?

3. A house has a market value of $145,900. The property is assessed at 96% of market value. The tax rate is $25 per $1000 of assessed value. What is the tax bill for this property?

4. An offer to purchase states that the property taxes shall be prorated on the latest known assessment of $120,000 multiplied by the latest known mill rate of 35 mills. What is the tax bill for this property?

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Tax Calculations Answer Key 1. $170,000 x .98 = $166,600 2. $280,000 x .95 = $266,000 $266,000/100   = $2,660 $2,660 x $4.80 = $12,768 3. $145,900 x .96 = $140,064 $140,064 x 25 = $3,501,600 $3,501,600/1000 = $3,501.60 4. 35/1000 = .035 $120,000 x .035 = $4,200

EVIDENCE OF TITLE

A deed by itself is not sufficient evidence of title. A deed conveys the grantor’s interest but even a warranty deed does not provide proof of the condition of the grantor’s title. The only effective way to establish proof is to conduct a public records search. Searching public records establishes a chain of title. The chain of title is the documentation of events, such as ownership, encumbrances, and liens that affect title to a specific parcel of real property. A chain of title begins with the original source of the title and links each owner to subsequent owners. The chain originates with the earliest recorded owner and documents transfers from each subsequent grantor to the next grantee in the chain. The chain should date back to the earliest record of the property. If the links between subsequent grantors and grantees do not prove a continuous record of ownership, then there is a gap in the chain of title. When there is a gap in the chain, it may be necessary to establish ownership by a court action called a suit to quiet title. A seller can supply title evidence to a buyer in the form of an abstract of title or a title insurance policy. Evidence of title is proof that title is marketable, which means that the title is clear, salable, and reasonably free from risk of litigation over possible defects. Unmarketable title means that defects in the title may limit or restrict ownership, however a party can still transfer property with an unmarketable title if there is a willing buyer for the property. A title defect, or cloud on title, is any document, claim, unreleased lien or encumbrance that may superficially impair or injure the title to a property or cast doubt on the title’s validity. An example of a cloud on title is a neighbor’s fence that extends two feet onto a neighboring parcel of property.

FORMS OF TITLE EVIDENCE

The WB-11 Residential Offer to Purchase requires a seller to provide a buyer with evidence that a property’s title is acceptable for closing. A seller must provide evidence of title in the form of an owner’s policy of title insurance to the buyer. A title insurance policy provides coverage to a buyer and to a lender in the event that a third party brings a claim arising from a defect with a property’s title. A lender will require a title insurance policy before issuing a loan to a buyer. A seller cannot provide an abstract of title as title evidence unless the parties modify the offer. A lender generally will not accept an abstract of title as title evidence. An abstract of title is a history of the documents appearing in the public record that affect a property’s title. An abstractor is a person who prepares the abstract. The abstractor submits the abstract to the buyer’s attorney, who examines it and prepares an attorney’s opinion of title. An attorney’s opinion of title does not protect against defects that cannot be discovered from the public records. It is just a history of a property’s title based on what is in the public record.

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A title insurance policy is a contract by which a title ­insurance company agrees, subject to the terms of its policy, to compensate the insured against any losses sustained as a result of a property’s title defects. If a party brings a claim against the insured resulting from a title defect covered by the policy, the title insurance will defend the buyer’s title to the property and compensate the buyer for any losses incurred due to the claim. Title insurance protects the insured from a title defect that occurs before the policy is issued. Each title insurance policy will be specific to the property covered by the policy, the defects covered, and the situations for which the policy will not provide coverage. Like car insurance, title insurance covers the insured for a certain amount of time. Before a title insurance company issues a policy to an applicant, the insurer searches the public record and creates a record of title. After the title insurance company completes the title examination, the company notifies the parties in writing of the condition of title. The written notification is the title commitment. It may also be called a preliminary report or a binder. Before a lender provides financing for a loan secured by real estate, the lender will require the borrower to provide a title insurance policy on the property the borrower is using for collateral for the loan. The lender’s title insurance policy insures the lender against superior liens that would take priority over the lender’s mortgage lien on the property. The buyer pays for a lender’s policy. The policy usually provides coverage to a buyer or lender only up to the purchase price of the property. Unlike car insurance, the premium for a title insurance policy is a one-time charge, which a party pays at closing. The pre-printed terms of the WB-11 Residential Offer to Purchase state that the buyer pays for the lender’s title policy and the seller pays for the buyer’s title policy. Parties can agree to other payment arrangements by modifying an offer to purchase.

STANDARD TITLE INSURANCE EXCEPTIONS Generally, title companies issue title commitments to applicants with standard exceptions for potential title disputes for which the insurer will not provide coverage. Title insurance companies will often remove the exceptions to policies if the applicant provides certain documentation and evidence to demonstrate that the potential title disputes are unlikely to occur.

1. Gap Endorsement

When a title insurer issues a title insurance commitment with a gap exception, the policy will not cover any title defects which appear after the title commitment’s effective date and before the interest of the buyer or mortgage is recorded. The period between a title commitment’s effective date and the recording of the mortgage or buyer’s interest is the gap period. Examples of defects that might appear during a gap period include home equity mortgages, deeds to third parties, lis pendens filings from foreclosures, claims resulting from divorce property settlements, transactions with prior owners, boundary or encroachment disputes with neighbors, construction liens, federal tax liens, state tax warrants, and judgments. An insurance applicant can apply for a gap endorsement that will provide coverage for potential title claims that may arise during the gap period. A title insurance company will usually provide a gap endorsement for a fee and the endorsement protects the property owner for title defects during the gap. The pre-printed terms of the WB-11 Residential Offer to Purchase require a seller to provide a buyer with a gap endorsement at the seller’s expense. If the title insurance company will not provide a gap endorsement for a buyer’s title policy, the buyer may be able to say that the title is not acceptable for closing.

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2. Special Assessments Standard title insurance commitments exclude coverage for special taxes or assessments payable with the taxes levied or to be levied for the current and subsequent years. This special assessment exception may be removed by providing special assessment letters. A property owner can ask the title company to order special assessment letters from the municipality where the property is located. Usually the request for the letters accompanies the order for the policy. Municipalities complete the letters but do not typically guarantee their accuracy. Even without a guarantee, title companies rely on these letters and provide coverage for potential title disputes arising from delinquent, outstanding special assessments and contemplated special assessments. 3. Construction Lien A title insurance policy will often have an exception for coverage of title claims due to contractor’s liens. Contractors must file a lien no later than six months after the date the contractor last furnished labor or materials. The effective date of the lien, however, is the date work began on site. This means there can be a period of several months during which a contractor has the right to file a construction lien on the property and the lien can have a retroactive effective date several months before the contractor actually files the claim. To remove this exception from a policy, an owner can file an affidavit indicating that no work has been done on the subject property over the last six months or that work has been completed by named contractors who furnished lien waivers that the owner provides to the title insurance provider. 4. Parties in Possession Another standard exception is for rights and claims of parties in possession that are not shown in the public records. Specifically, a policy with this exception will not cover title disputes resulting from off-record possessory interest, which may be the result of unrecorded land contracts, leases, or some other document creating an ownership interest in the property. If the owner provides the insurer with an affidavit stating that there are no other parties in possession, the title insurer will remove this exception from the title policy. 5. Boundary Dispute This exception is for encroachments, overlaps, boundary-line disputes, and other matters that may be disclosed by an accurate survey and inspection of the premises. A buyer can clear this exception to the title insurance policy by providing the insurance company with a current survey that shows no boundary problems. A lender can receive a policy providing coverage for most defects that a current survey would reveal if the lender’s appraisal shows that there has not been new construction on the property and there are no apparent encroachments. Title insurers only provide these policy endorsements to lenders and not to property owners because the interest lenders are insuring with the loan policy is less extensive than the buyer’s ownership interests. A lender’s policy will usually protect the lender from title claims arising from most encroachments, boundary issues, unrecorded easements, and other issues that a current survey would show. If a buyer wants similar coverage, the buyer must provide a survey to the title insurance provider.

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Land Use REEB 24.085

Chapter Overview Land use issues are one of the hottest topics in the area of real estate. This chapter outlines the basics of land use regulation.

Important Terminology conditional use/ special use deed condition deed restriction downzoning navigable waterway nonconforming use ordinary high water mark permitted use planned unit development (PUD) riparian right setback shoreland zoning spot zoning variance zoning

WISCONSIN ZONING LAW BASICS

L

ocal units of government control the use of private lands through the government’s “police power.” Police power refers to a government’s capacity to regulate behavior and enforce order within the territory of the government. In Wisconsin, local governments may regulate and restrict private lands to: 1.

Protect the public from natural hazards such as flooding;

2.

Protect natural resources such as surface waters, groundwater, and wetlands;

3. 4.

Separate conflicting land uses; Plan for orderly growth; and

5.

Protect private property values.

Legislative enabling acts and state statutes grant local governments the power and procedures to enact zoning ordinances that regulate and control the use of land and structures within the territory of the local government. Zoning provides for an area’s orderly development and minimizes conflicts between incompatible land uses. For example, a rendering plant, a quarry, and large-scale commercial facilities are generally not compatible with residential uses. Local governments use zoning as a tool to fulfill their duties to protect health, safety, and welfare. To implement these duties, cities, villages, counties, and towns can adopt comprehensive zoning and land use regulations to carry out the municipality’s master plan, which provides a backdrop and guide for the regulations. Wisconsin’s Comprehensive Planning Law does not dictate how or where development occurs but grants that discretionary decision to local planning commissions. The purpose of a comprehensive plan is to guide the physical, social, and economic development of a local government. Through its comprehensive plan, a municipality tries to anticipate and plan for the physical needs of the community for the next 20 years. Comprehensive plans are not land use regulations but provide the basis for land use decisions. To learn more about comprehensive planning, visit the State of Wisconsin Department of Administration Web site at www.doa.state.wi.us. 125

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In Wisconsin, local governments have extraterritorial jurisdiction to regulate the division or subdivision of land outside of the incorporated boundary. Extraterritorial jurisdiction authorizes cities to zone lands within three miles of the corporate limits if the city is a first, second, or third class city or within one and one-half miles of the corporate limits if it is a fourth class city or village. A city’s class is depends on its population. Because land for new development is often located outside the actual boundaries of a municipality, cities and villages use extraterritorial jurisdiction to regulate development in neighboring unincorporated communities. The city or village may later annex the unincorporated area or provide services to it. Exercising extraterritorial jurisdiction to regulate development in the unincorporated areas allows a city or village to plan for these future needs.

ZONING

Zoning ordinances are land use planning tools that regulate and restrict the use of private property through a government’s police powers. Zoning ordinances dictate land use, density of development, lot size, height limits for structures, and setbacks. A setback is the amount of space required between lot lines and improvements on a lot. Setbacks permit room for improvements such as sidewalks, dictate the space between structures on adjoining lot lines, and set limits for structure location in relationship to natural features such as shorelands and wetlands. A government bases zoning ordinances on the community’s master plan and uses the ordinances to divide the government’s territory into zoning districts. Zoning districts may include residential, commercial, industrial, agricultural, exclusive agricultural, conservancy, or green-space districts. Zoning ordinances may further regulate use within districts by regulating the height, size, shape, and placement of structures for each zone, or the number of occupants within any structure

Permitted Uses

A zoning ordinance permits certain land uses in each district. A property owner has the right to use the land for any permitted use listed in the applicable zoning ordinance for the district where the land is located. A property owner may still need to obtain a building permit to exercise a permitted use but using property for a permitted use is authorized for all property owners in that district and does not involve a discretionary decision by a zoning board. A building permit is written governmental permission for the construction of a new building or other improvement, the demolition or substantial repair of an existing structure, or the installation of factory built housing. Permitted uses in zoning districts vary depending on the municipality. For example, a permitted use in a city’s residentially zoned district might not be a permitted use in another city’s residentially zoned district. A property owner must review local zoning ordinances to determine permitted uses for local zoning districts. Property owners with questions about permitted uses or zoning districts should consult a city planner or local building inspector.

Conditional Uses

Zoning ordinances list the permitted uses for the zoning districts and may also specify additional uses called conditional uses. Conditional uses may require a special-use permit. A property owner can use land for a conditional use only when special conditions are met and the local zoning body approves the use. Unlike with a permitted use, granting permission to a property owner to use land for a conditional use is a discretionary decision.

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To use land for a conditional use, the property owner must show that the use will be compatible with neighboring land uses and that the use is tailored to the limitations of the property. A zoning board may require a property owner to meet additional conditions to use the property for a conditional use. A cemetery may be a conditional use for a residential area. To receive permission for the conditional use, the property owner may have to locate buildings and tombstones a certain distance from the lot lines.

Prohibited Use

A prohibited use is a use that is not permitted because it is either expressly prohibited or is not listed as a conditional or permitted use.

Spot Zoning

A zoning board may exercise spot zoning and grant permission to use a parcel of land in a way without extending permission for that use to other similarly situated property. Spot zoning is permissible only when it is in the public interest and not solely for the benefit of the property owner. Spot zoning is not common. The lot owners in a residential area want permission to zone their parcel to allow for a small grocery store. This spot zoning benefits the neighborhood because people do not have to drive across town for items like bread, milk, and toiletries.

Variances

A property owner may want use property in a way that conflicts with a local zoning ordinance. Land use regulations need to be flexible to adapt to unique circumstances and changing conditions. For example, a property owner may want to make improvements that extend past the setback lines. The owner needs to receive approval from the local zoning authorities before making the improvement. A zoning board can grant a variance, which is a relaxation of dimensions or other standards, such as setbacks, to protect an individual’s property rights while continuing to protect public interests. A variance is a permanent deviation from the zoning ordinance and is not a favored land use tool because a variance is not in conformity with the area’s overall development plans. A variance allows an owner to use the land in a manner not permitted by the current zoning ordinance. An applicant must show hardship because of the existing zoning ordinance. Granting a variance cannot conflict with the purpose of the zoning ordinance or result in a use that is detrimental to the neighborhood. A variance will specify exactly how a property owner can use the land. To qualify for a variance, a landowner must show: 1. The variance is consistent with the purpose and intent of the current zoning ordinance. 2. The requested variance is required for the enjoyment of the property. 3. Unique circumstances such as the size, steep slopes, wetlands, or lot topography affect the property. The purpose of this element is to make sure the granted variance does not suggest an amendment to current zoning. 4. Granting the variance does not harm any of the public interests listed as the objectives of the ordinance or harm adjacent property. 5. The hardship is not self-created and is not based solely on economic advancement.

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Downzoning

Downzoning is a change from a more active to a less active zoning classification. With most downzoning, the government does not compensate affected property owners even if the owner experiences a loss in value due to the downzoning, because, unlike with eminent domain, the property owners still holds title to the property. John buys lake property to construct a cabin for when he retires. Before he retires, the parcel is downzoned to a scenic reserve, which does not allow for any improvements, including long-planned cabins.

Nonconforming Use

If a zoning body enacts a new zoning regulation, the zoning body may permit uses already in existence even though the uses violate the new regulation. These nonconforming uses have a special protected status limited by local ordinances in an attempt to eventually eliminate them. Nonconforming use status is usually transferable from one property owner to another but if a property owner deviates from the nonconforming use, the owner will lose the status and be forced to comply with current zoning regulations. For example, a municipality downzoned an industrial area to residential. The area still contained one operating factory. The municipality can allow the property owner to continue to operate the factory as a nonconforming use. If the factory owner turned the factory into a warehouse or even began producing a different good, the owner will lose the nonconforming use status and would not be able to use the property in a way that conflicted with the current zoning ordinance.

Planned Unit Developments (PUD)

A planned unit development is a zoning district written and negotiated specifically for the subject property. It may allow a developer to cluster buildings and services together in a way that would not be possible or permissible according to a municipality’s regular zoning ordinances. In the United States, the popularity of PUDs grew significantly in the years following World War II with returning veterans heading to the new suburbs to settle down with families. The postwar Levittowns and similar suburbs are examples of PUDs. PUDs recently enjoyed a resurgence in popularity as a concept for managing “urban sprawl,” renewing community development, and reducing ecological impact. PUDs may have a nonprofit community association that provides maintenance of the common areas and residences may be owned individually, as condominiums, or even as cooperatives depending on plans and the communities. When creating a PUD, a developer may cluster homes near necessary retail shops and services, design streets to prevent traffic congestion, and encourage alternate forms of transportation. The design of the PUD will depend on the developer’s purpose. For example, resorts and shopping destination communities may be PUDs but their plans will differ depending on the function that the developer was trying to achieve. As with condominiums, parties considering property in a PUD should consult the adopted documents for a complete description of permitted uses and restrictions.

WATER RIGHTS

According to the Wisconsin Department of Natural Resources (DNR), Wisconsin has almost 15,000 inland lakes covering an area of about 970,000 acres and about 50,000 miles of stream and river shoreline. Owning property on these extensive shorelines is generally attractive to homeowners, businesses, and thousands of vacationers. These waterfront properties are unique because of the rights enjoyed by and restrictions imposed upon waterfront property owners.

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Wisconsin recognizes the Public Trust Doctrine, which states that the state’s lakes and rivers are owned in common by all state citizens. Wisconsin recognizes all navigable waters as public highways on which the public has the right to travel. People have an unrestricted right to use the water as long as the flow is not interrupted, altered, or contaminated. The Doctrine provides that all Wisconsin citizens have the right to boat, fish, hunt, ice skate, and swim on navigable waters. Wisconsin also recognizes riparian rights, which are distinct rights that belong to waterfront property owners. Riparian rights govern navigable waters such as rivers, streams, and lakes and determine a property owner’s right to use the shoreline as well as the water for domestic, agricultural, and recreational purposes. Riparian rights include: 1. Reasonable use of waters for domestic, agricultural, and recreational purposes; 2. The right to use the shoreline; 3. The right to access the water; 4. T  he right to lands formed by accretion (a gradual and natural accumulation of material on the shore); 5. The right to have water flow naturally to the land; 6. The right to create structures to avoid erosion; and 7. The right to construct a pier. A waterway is navigable if it has a bed and banks and it is possible to float a canoe or other small craft in it at some time during the year. Navigable waterways are open to the public for fishing, swimming, and other recreational pursuits. The DNR has jurisdiction over public, navigable waterways but does not have jurisdiction over artificially created waterways on private land. Because the citizens of Wisconsin own the state’s lakes and rivers in trust, the citizens also own the beds of natural lakes. A waterfront property owner owns the land to the ordinary high water mark on a lake and land to the center of a river or a stream. The ordinary high water mark is defined as the point on the bank or shore where water is present often enough that it leaves a distinct mark and the uplands look different than the area near the water’s edge. Generally, citizens have the right to use the waters below the ordinary high water mark as long as they keep their feet wet.

Shoreland Zoning

Lands within 1000 feet of the ordinary high water mark of a navigable lake or within 300 feet of a navigable river or stream are shoreland and are to subject to shoreland zoning restrictions. Shoreland zoning serves to protect water quality, habitats, recreation, and Wisconsin’s natural beauty. Shoreland zoning controls developments around water and creates a buffer between developed and undeveloped areas. Municipalities adopt zoning to further these purposes. The following are examples of shoreland zoning restrictions. 1. E  stablishing minimum lot sizes for shoreland areas to protect health, safety, and welfare, and to guard against pollution of the adjacent water body. 2. Creating setbacks for buildings and structures on shoreland lots to conform to health, safety, and welfare requirements, preserve natural beauty, reduce flood hazards, and avoid water pollution. In Wisconsin, all buildings and structures, except piers, boat hoists, and boathouses, must be set back 75 feet from the ordinary high water mark. 3. Limiting vegetative cutting based on the effect that the cutting will have on water quality, sound forestry, and conservation practices. 4. Restricting filling, grading, lagooning, ditching, and excavating by permitting these activities only with state permits and demonstrated compliance with the county and local shoreland or wetland zoning requirements. 129

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PRIVATE LAND USE CONTROLS

In addition to zoning laws, private individuals can also create land use restrictions to control and maintain a property’s character. There are two major categories of private land use controls, deed restrictions and deed conditions. Deed Restrictions (Deed Covenants, Subdivision Restrictions) Deed restrictions are clauses in a deed limiting the future use of a property. Deed restrictions may impose a variety of limitations and conditions. They may limit the density of buildings, dictate the types of structures that can be erected, prevent buildings from being used for a specific purpose, or describe the color of siding or the type of shingle that must be used on a home. Violating a deed restriction may result in a fine, demolition of improvements, or both. Deed restrictions give each lot owner the right to apply to a court for an injunction to prevent a neighboring lot owner from violating the recorded restrictions. Residents of a deed-restricted subdivision can permit a property owner to violate recorded restrictions or could agree to amend the restrictions. Permitting a violation or agreeing to amend the conditions usually requires unanimous consent of all the residents. If a resident is violating a deed restriction and other residents do not seek relief through an injunction, fine, or other enforcement mechanism, the inaction may result in the residents losing the right to seek relief. Deed Conditions Deed conditions are contingencies, qualifications, or occurrences upon which an estate or property right is gained or lost. For example, a deed may require that a property be used only as a nature preserve and if the property is ever used in another way, ownership will revert back to the grantor. This kind of deed condition creates a fee simple defeasible estate. The penalties for violating a deed condition are stricter than the penalties for violating deed restrictions or covenants. Violating a deed condition may result in loss of title. Deed conditions and restrictions should be listed in a deed recorded in the public records and they run with the land.

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10

Offers to Purchase REEB 24.12, REEB 24.13

Chapter Overview This chapter explores three Wisconsin offers to purchase and contract concepts related to an offer to purchase including submission, drafting, and presentation of offers.

PREPARING CONTRACTS

Important Terminology acceptance binding acceptance business days “bump” clause delivery equitable title guaranteed sale offer to purchase right of first refusal specific performance survey unenforceable contract

An accepted offer to purchase dictates the terms of a transaction between a seller and a buyer. An offer to purchase is a contract between a seller and a buyer. A listing or a buyer agency agreement is a contract between a client and a firm. A firm is not a party to an offer to purchase. When preparing an offer for a buyer, a licensee must be specific when including actions and obligations a buyer wants to make a part of the offer and be clear with deadlines for performance of contractual responsibilities. Offers must be clear and understandable to the parties and the resulting contract must be enforceable. An unenforceable contract is one that a court cannot enforce because the contract does not clearly state the parties’ obligations under the contract. If a contract contains an ambiguous term, a court will interpret the term more strictly against the drafter.

ACCEPTANCE AND BINDING ACCEPTANCE

Acceptance occurs when all parties have signed one copy of an offer or separate but identical copies of an offer. Binding acceptance occurs when the accepting party delivers the offer back to the party who made the offer. Delivery must occur according to the terms of the offer. Unless otherwise stated in an offer, delivery is by personal delivery, prepaid U.S. Mail, prepaid commercial delivery service, fax, or by e-mail. Upon binding acceptance, an offer becomes a contract for the sale of the property and is a binding purchase agreement between the parties. Until binding acceptance occurs, the party who made the offer has the right to withdraw the offer.

EQUITABLE TITLE

After a buyer and seller have an enforceable contract for sale, a buyer has equitable title to the property. A buyer with equitable title is a property’s legal owner even if the buyer does not yet have legal title to the property. A buyer with equitable title to a property could ask a court to order specific performance as a remedy if a seller breaches the enforceable contract for sale. When a court grants specific performance as a remedy, the court orders the parties to act according to the terms of the contract. In the case of a real estate transaction, that could mean that a court orders a seller to sell or a buyer to buy according to the terms of the binding contract for sale.

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WORKING WITH OFFERS: CONFIDENTIALITY ISSUES

The terms of an offer to purchase are confidential information. A licensee owes the duty of confidentiality to all parties to a transaction and must not disclose the terms of a prospective buyer’s offer to another prospective buyer or to any person with the intent that the information be disclosed to another prospective buyer. A licensee can disclose some terms of a buyer’s offer to purchase. A licensee can disclose that: 1. A seller has accepted another offer; 2. A buyer has submitted an offer on the property; 3. A seller has accepted an offer subject to contingencies; and 4. A seller has accepted an offer with a “bump” clause. A licensee can disclose that an accepted offer is subject to contingencies but cannot disclose details about the contingencies. For example, a licensee could disclose that a seller accepted an offer subject to contingencies but could not disclose that the contingency is a financing or home inspection contingency. A licensee can disclose that the seller has accepted an offer with a “bump” clause. A bump clause is a contingency provision in an offer to purchase that requires the prospective buyer to remove certain contingencies in the buyer’s purchase agreement or relinquish the buyer’s primary status to a secondary offer. An example of a contingency that includes a bump clause is the “Closing of a Buyer’s Property Contingency” found in an offer to purchase. The “Closing of a Buyer’s Property Contingency” permits a seller to remove a buyer from primary position if a buyer cannot meet the terms of the contingency. If a licensee is providing brokerage services in a transaction and the licensee knows that the property is subject to a right of first refusal, a licensee must disclose that in writing and in a timely fashion to all people seeking to acquire an interest in the property. A licensee may deliver a copy of a party’s offer, exchange agreement, option contract, or lease proposal to the party holding the right of first refusal. A right of first refusal is a contractual right given by a property owner to another person that permits that person to purchase the property ahead of all other prospective buyers. A person holding a right of first refusal has the first right to purchase the property if the owner decides to sell it. A right of first refusal is a material adverse fact. After a licensee discloses a right of first refusal in writing to all prospective buyers, a licensee can deliver a copy of a buyer’s offer to the party holding the right of first refusal.

DRAFTING AND SUBMISSION OF OFFERS

Licensees cannot refuse to draft or submit any offer to purchase unless to do so is contrary to the seller’s instruction. If a seller wants to limit a licensee’s ability to draft and submit offers, a seller should include these instructions in the listing contract. A seller might refuse to consider offers below a certain price or that contain certain terms. For example, a seller might include in a listing contract that the listing firm should not draft or submit any offers below 95% of the listing price or that contain a home inspection contingency.

COOPERATING WITH OTHER FIRMS

A listing firm must permit access to a listed property for showing purposes to all buyers and people assisting buyers, without unreasonable delay, unless to do so would be contrary to the seller’s written instructions. Firms cannot refuse to permit other firms access to a listed property unless the seller has provided written instructions to limit access. If a firm refused access to other firms without instructions from the seller, the firm may be violating anti-trust laws.

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PRESENTATION OF OFFERS

A licensee must promptly present all offers to a seller or a seller’s agent for consideration. A licensee should not withhold any offer from a seller pending the seller’s action on a previously presented offer. For example, a listing licensee is meeting with a seller at 7 p.m. and the listing licensee received three offers over the course of the day. The listing licensee presents all three offers to the seller at one time and does not prioritize the presentation of the offers according to the time the licensee received the offers. The listing licensee must also present the offers in an objective and unbiased manner, informing the seller of the advantages and disadvantages of each offer. A listing licensee cannot submit a personal offer on a property listed with the licensee’s firm if the licensee has knowledge of the terms of any pending offer. This rule prevents a listing licensee from having an unfair advantage over other potential buyers due to the licensee’s knowledge of the terms of pending offers that would permit a licensee to draft personal offers on better terms than any other pending offer. After a seller considers and acts on a buyer’s offer, a licensee must promptly inform the prospective buyer whether the seller has accepted, rejected, or countered the offer to purchase and must immediately provide a written statement documenting a seller’s decision if a buyer or a licensee working with a buyer requests evidence of a seller’s action.

GUARANTEED SALES A firm can offer a guaranteed sale to a client, which is an agreement between a firm and a seller that the firm will purchase the seller’s property at a predetermined price if the seller is unable to sell the property within a specified time. The rule that prohibits a listing licensee from submitting a personal offer on a property listed with the firm does not prohibit guaranteed sales.

WB-11 RESIDENTIAL OFFER TO PURCHASE Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

WB-11 RESIDENTIAL OFFER TO PURCHASE

Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Page 1 of 9, WB-11

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LICENSEE DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER) WB-11 RESIDENTIAL OFFER TO PURCHASE 2 (AGENT SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE Lines 1-2 OF Disclosure of Agency 3 GENERAL PROVISIONS The Buyer, _____________________________________________________________________ 1 DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER) 4 LICENSEE _______________________________, offers to purchase the Property known as [Street Address] _____________________ 2 (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE 5 ______________________________________________________________ in the _________________________________ 3 GENERAL PROVISIONS The Buyer, _____________________________________________________________________ 6 of __________________________________, County of _____________________________ Wisconsin (insert additional A licensee drafting an offer to purchase for a buyer mustknown disclose to the parties whether the licensee 4 offers to Property as434), [Street _____________________ 7 _______________________________, description, if any, at lines 165-172 or 435-442 or purchase attach as the an addendum per line onAddress] the following terms: is 58acting as an agent of buyer, an agent of selling/listing broker, or an agent of buyer and seller. ______________________________________________________________ in the _________________________________ ■ PURCHASE PRICE: _________________________________________________________________________________ of __________________________________, County of _____________________________ Wisconsin (insert A 69licensee strikes the agency descriptions that are not applicable. A licensee acting asadditional a ____). principal ____________________________________________________________ Dollars ($___________________________ __ at lines or 435-442 attach as descriptions an addendum perand lineearnest 434), on following terms: ■ transaction EARNESTif any, MONEY of $165-172 ____________________accompanies this Offer money of $ ____________________ in107adescription, would strike all three oragency because athe licensee writing an offer as a 8 ■ PRICE: _________________________________________________________________________________ 11 willPURCHASE be mailed, commercially or personally delivered withinTo ____________________ days of acceptance to listing broker or principal is notoracting as an agent for anyone. select the correct agency description, a____). licensee 9 ____________________________________________________________ Dollars ($___________________________ __ 12 ________________________________________________________________________________________________ ______. must understand theofdifference between buyers thatthis are customers and buyers that are clients. If a 10 MONEY $ ____________________accompanies Offer and earnest money of $ ____________________ 13 ■ ■ EARNEST THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. licensee is an agent of a buyer, the buyer is the licensee’s client. In this case, the licensee mayon 11 will be mailed, or commercially or personally delivered within ____________________ days of acceptance to the listing broker orhave 14 ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on Property ________________________________________________________________________________________________ ___. ___ a 12 buyer agency agreement with the buyer, and the seller is either not represented or the seller is 15 the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ 13 ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. __ 16 ___________________________________________________________________________________________________ represented by a different firm. Alternatively, the buyer and seller could be clients of the same____. firm but 14 IN PURCHASE PRICE: Seller___________________________________________________________________ is including in the purchase price the Property, all Fixtures on the Property on 17 ■ ■ INCLUDED NOT INCLUDED IN PURCHASE PRICE: have chosen multiple representation with designated agency so the firm has assigned each client a 15 date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ _____. 18 the ____________________________________________________________________________________________________ designated agent to represent that client in the transaction. If the licensee is an agent of the seller or ______. 16 19 ___________________________________________________________________________________________________ CAUTION: Identify Fixtures that are on the Property (see lines 185-193) to be excluded by Seller or which are rented listing firm, then the buyer is a customer of the licensee and the licensee is either the listing agent or is 17 NOT PURCHASE PRICE: ___________________________________________________________________ 20 ■ and willINCLUDED continue toINbe owned by the lessor. __ 18 ____________________________________________________________________________________________________ ___. a 21subagent of terms the listing firm. If the an agent both the buyer and the seller, means NOTE: The of this Offer, not licensee the listingiscontract or of marketing materials, determine what it items are that 19 Identify the Property (see lines 185-193) to be excluded by Seller representation or which are rentedwithout 22 CAUTION: included/excluded. both the buyer andFixtures seller that areare theonfirm’s clients and have consented to multiple 20 will continueAcceptance to be owned by the lessor. 23 and ACCEPTANCE occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical designated agency. 21 terms of this Offer, not the listing contract or marketing materials, determine what items are 24 NOTE: copies ofThe the Offer. 22 25 included/excluded. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines 23 ACCEPTANCE Acceptance occursadequate when all Buyers and Sellers haveacceptance signed one and copyperformance. of the Offer, or separate but identical 26 running from acceptance provide time for both binding 24 of the Offer. 27 copies BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on 25 Deadlines in the Offer are commonly calculated from acceptance. Consider whether short deadlines 28 CAUTION: or before _______________________________________________________________. Seller may keep theterm Property on the 133 26 running from acceptance provide adequate time for both binding acceptance and performance. 29 market and accept secondary offers after binding acceptance of this Offer. 27 BINDING ACCEPTANCE Offer is binding both Parties if a copy of the accepted Offer is delivered to Buyer on 30 CAUTION: This Offer mayThis be withdrawn priorupon to delivery of theonly accepted Offer. 28 before _______________________________________________________________. Seller may keep the PART Property the 31 or OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX ( ) ARE OFon THIS 1

Approved by the Wisconsin Department of Regulation and Licensing

REAL ESTATE SALES 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Page 1 of 9, WB-11

WB-11 RESIDENTIAL OFFER TO PURCHASE 1

LICENSEE DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER)

Line 3 Buyer’s Name 2 (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE

GENERAL PROVISIONS The Buyer, _____________________________________________________________________ _______________________________, offers to purchase the Property known as [Street Address] _____________________ When drafting an offer, a licensee puts the buyer’s legal name on line 3. Parties should use their legal 5 ______________________________________________________________ in the _________________________________ names, not nicknames, when drafting offers to purchase. If more than one person is making the offer, 6 of __________________________________, County of _____________________________ Wisconsin (insert additional the7 description, names ofif any, all the buyers should be orplaced onanline 3. Buyers notfollowing indicate how they intend to at lines 165-172 or 435-442 attach as addendum per line should 434), on the terms: Approved by the Wisconsin Department of Regulation and Licensing Page 1 of 9, WB-11 8 ■ PURCHASE PRICE: _________________________________________________________________________________ take title to the property on line 3. Title information is included on a deed. For example, if a married 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date) 9 ____________________________________________________________ Dollars ($___________________________ ______). couple were making an offer, they would put just their names on line 3 and not their names “as husband WB-11 RESIDENTIAL OFFER TO PURCHASE 10 ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ and wife and joint tenants.” Licensees should not advise buyers on how to take title to a property and 11 will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or 1 LICENSEE DRAFTING OFFER IS (AGENT OF BUYER) licensees should referTHIS buyers toON an________________________________________ attorney for a legal opinion on how to[DATE] title property. 12 ________________________________________________________________________________________________ ______. 2 (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE 13 ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. Lines 4-7 Property Description 3 GENERAL PROVISIONS The Buyer, _____________________________________________________________________ 14 ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on 4 _______________________________, offers to purchase the Property known as [Street Address] _____________________ 15 Approved the datebyofthethis OfferDepartment not excluded at lines Wisconsin of Regulation and17-18, Licensingand the following additional items: __________________________________ Page 1 of 9, WB-11 5 ______________________________________________________________ in the _________________________________ (Optional Use Date) 07-1-11 (Mandatory Use Date) ______. 16 03-1-11 ___________________________________________________________________________________________________ 6 of __________________________________, County of _____________________________ Wisconsin (insert additional 17 ■ NOT INCLUDED IN PURCHASE PRICE: WB-11___________________________________________________________________ RESIDENTIAL OFFER TO PURCHASE 7 description, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434), on the following terms: 18 _________________________________________________________________________________________________________. 8 ■ PURCHASE PRICE: _________________________________________________________________________________ 1 LICENSEE DRAFTING THIS OFFER ________________________________________ [DATE] OF rented BUYER) CAUTION: Identify are ON on the Property (see lines 185-193) to bethat excluded by SellerISor(AGENT which A 19street address isFixtures usuallythat sufficient for describing the property isTHOSE the subject of theareoffer. A buyer 9 ____________________________________________________________ Dollars ($___________________________ 2 (AGENT OF SELLER/LISTING (AGENT OF BUYER AND SELLER) STRIKE NOT APPLICABLE ______). 20 and will continue to be ownedBROKER) by the lessor. 10 ■include EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ can additional descriptions like a legal description or a tax identification number in the Additional 3 NOTE: GENERAL PROVISIONS The Buyer, _____________________________________________________________________ 21 terms Department of this the listing contract or marketing materials, determine what are Approved byThe the Wisconsin of Offer, Regulationnot and Licensing Page items 1 of 9, WB-11 11 will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or Provisions section by(Mandatory including anto addendum to theknown offer. a property does not have a street 03-1-11 (Optional Use Date) or 07-1-11 Useoffers Date) 4 _______________________________, purchase the Property as If [Street Address] _____________________ 22 included/excluded. 12 ________________________________________________________________________________________________ ______. 5 ______________________________________________________________ inone thecopy _________________________________ address, a licensee can use a tax key number or OFFER legal 23 ACCEPTANCE Acceptance occurs when all RESIDENTIAL Buyers and Sellers havedescription. signed of the Offer, or separate but identical WB-11 TO PURCHASE 13 ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. 6 of __________________________________, County of _____________________________ Wisconsin (insert additional 24 copies of the Offer. 14 ■ INCLUDED IN PURCHASE PRICE:435-442 Seller isorincluding purchaseper price Property, all Fixtures on theOF Property on Lines 8-9 Purchase Price 7 if any, at lines 165-172 attach asinanthe addendum linethe 434), on the[DATE] following terms: 1 description, LICENSEE DRAFTING OFFER ON ________________________________________ IS short (AGENT BUYER) 25 CAUTION: Deadlines inTHIS the Offeror are commonly calculated from acceptance. Consider whether term deadlines 15 the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ 8 PURCHASE PRICE: _________________________________________________________________________________ 2 ■ (AGENT OF SELLER/LISTING BROKER) (AGENT OF both BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE 26 running from acceptance provide adequate time for binding acceptance and performance. __ 16 ___________________________________________________________________________________________________ ____. 9 Dollars ($___________________________ ____). __ 3 ____________________________________________________________ GENERAL PROVISIONS The 27 BINDING ACCEPTANCE This Buyer, Offer is_____________________________________________________________________ binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on 17 ■ NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ 10 EARNEST MONEY of $what ____________________accompanies this Offer andas earnest money $_____________________ ____________________ 4 ■ _______________________________, offersis to offering purchase the Property known [Street Address] 28 orpurchase before _______________________________________________________________. Seller of may keep the Property on the the The price is a buyer to a seller for the property. A licensee first writes 18 _________________________________________________________________________________________________________. 11 be mailed, or commercially or personally delivered ____________________ days of acceptance to listing broker or 5 will ______________________________________________________________ in the _________________________________ 29 market and accept offers after fills binding of this in Offer. purchase price in secondary words then in acceptance the within numbers the to parentheses onSeller lineor9.which If there is a conflict 19 CAUTION: Identify Fixturesand that are on the Property (see lines 185-193) be excluded by areadditional rented 12 ______. 6 ________________________________________________________________________________________________ of __________________________________, of _____________________________ Wisconsin (insert 30 CAUTION: This Offer may be withdrawn priorCounty to delivery of the accepted Offer. 20 and willthe continue to be owned by the lessor. between written and numeric entries, the written amount is the offered purchase price. 13 THE BALANCE OFlines PURCHASE PRICE willOFFER beattach paidTHAT inas cash or equivalent closing below. 7 ■ description, ifPROVISIONS any, at 165-172 435-442 or anARE addendum peratline on theotherwise following terms: 31 OPTIONAL TERMSor OF THIS PRECEDED BY434), AN unless OPEN BOX (  provided ) ARE PART OF THIS 21 NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are 14 INCLUDED IN PURCHASE PRICE: Seller is AS including in the price thePART Property, all Fixtures Property on 8 ■ PURCHASE _________________________________________________________________________________ 32 OFFER ONLY IFPRICE: THE BOX IS MARKED SUCH WITH AN “X.”purchase THEY ARE NOT OF THIS OFFERonIFthe MARKED “N/A” Lines 10-12 Earnest Money 22 included/excluded. 15 this BLANK. Offer not excluded at lines 17-18, and the following additionalDollars items: ($___________________________ __________________________________ 9 the ____________________________________________________________ ______). 33 OR date ARE of LEFT 23 ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical ______. 16 10 ■DELIVERY EARNESTOF MONEY of $ ____________________accompanies Offer and earnest money of $delivery ____________________ 34 ___________________________________________________________________________________________________ DOCUMENTS AND WRITTEN NOTICES Unlessthis otherwise stated in this Offer, of documents and 24 Approved copies of Offer. by the the Wisconsin Department of Regulation and Licensing Page 1 of 9, WB-11 17 NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ 11 will be(Optional mailed, or or effective personally delivered within ____________________ daysspecified of acceptance listing broker or 35 ■ written notices toDate) acommercially Party shall be only when accomplished by one of the methods at linesto36-54. 03-1-11 Use 07-1-11 (Mandatory Use Date) 25 CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines _____. 18 12 ________________________________________________________________________________________________ ___.if ___ 36 ____________________________________________________________________________________________________ (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery WB-11 RESIDENTIAL OFFERacceptance TO PURCHASE 26 running from acceptance provide adequate time forin(see both binding andunless performance. 19 Identify Fixtures that are on the lines 185-193) to be excluded by Seller orprovided which are rented 13 ■ THE at BALANCE PURCHASE PRICE willProperty be paid cash or equivalent at closing otherwise below. 37 CAUTION: named line 38 orOF 39. 27 BINDING ACCEPTANCE This Offer binding upon bothin Parties if a price copy of accepted Offer is delivered to Buyer on Earnest money cash or another itemis of value that aonly buyer includes with all an offer to a on buyer’s 20 and will continue to beTHIS owned by theis lessor. 14 ■ INCLUDED INis PURCHASE PRICE: Seller including the purchase thethe Property, Fixtures on indicate the OF Property 38 Seller's recipient for delivery (optional): _______________________________________________________________________ 1 LICENSEE DRAFTING OFFER ON ________________________________________ [DATE] (AGENT BUYER) 28 or before _______________________________________________________________. Seller may IS keep the Property onare the 21 NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items 15 the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ intention to follow through with the offer to purchase. Earnest money does not have to accompany an 39 Buyer's recipient for delivery (optional): _______________________________________________________________________ 2 (AGENT OFaccept SELLER/LISTING BROKER) (AGENT OF BUYER ANDOffer. SELLER) STRIKE THOSE NOT APPLICABLE 29 market and secondary offers after binding acceptance of this 22 included/excluded. __ 16 ___________________________________________________________________________________________________ ____. 40 (2) Fax: fax transmission of the document or written notice to the following telephone number: offer and earnest money iswithdrawn not required createofathebinding contract. A buyer who is including earnest 3 CAUTION: GENERAL PROVISIONS The Buyer, _____________________________________________________________________ 30 This Offer be prior totodelivery accepted Offer. 23 ACCEPTANCE Acceptance occursPRICE: when all Buyers and Sellers have signed one copy ofAddress] the Offer, or separate but identical 17 ■ NOT(________) INCLUDED IN may PURCHASE ___________________________________________________________________ 41 Seller: ________________________________ Buyer: (_________) _______________________________ __ 4 _______________________________, offers to purchase the Property known as [Street money with an offer canTERMS include one amount with the offer and an additional amount within a____ number 31 OPTIONAL PROVISIONS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (_____________________  ) ARE PART OF__ THIS 24 copies of the Offer. 18 ____________________________________________________________________________________________________ ___.a 42 (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with 5 ______________________________________________________________ in the _________________________________ 32days OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF MARKED “N/A” of25 of acceptance. A buyer could also choose to submit an offer without earnest money but agree CAUTION: Deadlines in theaddressed Offerare areoncommonly acceptance. Consider whether short term 19 Identify that the Property (see 185-193) to be excluded by Seller or which are rented 43 commercial delivery Fixtures service, either toCounty thecalculated Party, orlines tofrom the Party's recipient for delivery if named at(insert line 38deadlines or 39, for 6 of __________________________________, of _____________________________ Wisconsin additional 33 OR ARE LEFT BLANK. to26 provide payment of earnest money within a number of days of a seller accepting the offer. Buyers running from acceptance provide adequate time for both binding acceptance and performance. 20 and will to continue to lines be owned by or the lessor. 44 delivery the Party's delivery address at line 47 or 48. 7 description, ifOF any, at 165-172 435-442 orNOTICES attach as an addendum per line 434), on following terms: 34 DELIVERY DOCUMENTS AND WRITTEN Unless otherwise inaccepted thisthe Offer, delivery of documents and 27 BINDING ACCEPTANCE ThisOffer, Offer isnot binding Parties only ifmarketing a copystated the Offer is delivered toitems Buyer on party 21 NOTE: terms of this the listing contract or materials, what are usually pay earnest money to document the listing firmboth but line 12 permits buyer to determine designate some other 45 (4)The U.S. Mail: depositing the or upon written notice postage prepaid inofa the U.S. Mail, addressed either to the Party, 8 ■ PURCHASE PRICE: _________________________________________________________________________________ 35 written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 36-54. 28 or before _______________________________________________________________. Seller may keep the Property on the 22 included/excluded. or to the recipient for delivery ifparties named at would line 38 orlike 39, for delivery toparty the Party's delivery address at line money, 47 or 48.______). to46 theParty's earnest money. another to($___________________________ hold the earnest licensees 9hold ____________________________________________________________ 36 (1) Personal Delivery: giving occurs the Ifdocument written notice toDollars the Party, the Party's if 29 market and accept secondary offers after acceptance ofpersonally this Offer. 23 ACCEPTANCE Acceptance whenbinding all or Buyers and Sellers have signed one copy or of the Offer, orrecipient separatefor butdelivery identical 47 Delivery address forthe Seller: ________________________________________________________________________________ ___ 10 ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ should not assist parties in drafting agreements or contracts for holding the earnest money. 37 named at line 38 or 39. 30 CAUTION: may be withdrawn prior to delivery the accepted Offer. 24 copies ofaddress theThis Offer. 48 Delivery for Buyer: ________________________________________________________________________________ 11 be mailed, orOffer commercially or personally delivered withinof____________________ days of acceptance to listing broker___ or 38 will Seller's recipient for delivery (optional): _______________________________________________________________________ 31 OPTIONAL PROVISIONS TERMS OF THIS THAT PRECEDED BYParty’s AN OPEN BOX (  short ) ARE PART OF THIS 25 CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether term deadlines Line 13 (5) Balance of Purchase Price 49 E-Mail: electronically transmitting theOFFER document or ARE written notice to the e-mail address, if given below at line 12 ________________________________________________________________________________________________ ___. ___ 39 Buyer's recipient for delivery (optional): _______________________________________________________________________ 32 OFFER ONLY IFisTHE BOXprovide IS MARKED SUCH ASpaid WITH ANbinding “X.” THEY AREatNOT PART OF otherwise THIS OFFER MARKED “N/A” 26 running from acceptance adequate time forin both acceptance and performance. 50 53 or 54. If this a consumer transaction where the property purchased or the sale proceeds are IF used primarily for 13 OF PURCHASE PRICE will be cash orbeing equivalent closing unless provided below. 40 ■ THE (2)BALANCE Fax: fax transmission of the document or written notice to the iffollowing telephone number: 33 OR ARE LEFT BLANK. 27 BINDING ACCEPTANCE This Offer is binding upon both Parties only a copy of the accepted Offer is delivered to Buyer on 51 personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically 14 INCLUDED IN PURCHASE PRICE: Seller is including in Buyer: the purchase price the Property, all Fixtures on the Property on 41 ■ Seller: (________) ________________________________ (_________) _______________________________ __ A 34 buyer will pay the balance oflines the17-18, purchase price in cash or equivalent at closing at another DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery ofor documents and 28 or before Seller may keep the Property on____ the time 52 to the use ofthis electronic documents, delivery andthe electronic signatures in the transaction, as required by federal law. 15 of_______________________________________________________________. Offer notDelivery: excluded ate-mail and following additional items: __________________________________ 42 the date (3) Commercial depositing the document or written notice fees prepaid or charged to an account with a 35 written notices to Party shall be effective only when accomplished by one ofpays the methods specified at lines 36-54. 29 market and secondary offers after binding acceptance of this Offer. agreed byaccept the parties. Often, rather than cash, a buyer the purchase price by38aor__ certified or 53 E-Mailto address fora Seller (optional): _______________________________________________________________________ 16 ____. 43 ___________________________________________________________________________________________________ commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 39, for 36 (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if 30 CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. 54 E-Mail address for Buyer (optional): _______________________________________________________________________ cashier’s check. InINa PURCHASE transaction where acquired a mortgage to purchase the property, the 17 NOT INCLUDED PRICE: 44 ■ delivery the Party's address at line___________________________________________________________________ 47 a or buyer 48.THAThas 37 named attoline 38 or 39.delivery 31 OPTIONAL PROVISIONS TERMS OF THIS OFFER ARE PRECEDED BY AN OPENby, BOX ( ) ARE Buyer PART OF THIS 55 PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, price or Actual Receipt named or Seller 18 ___. mortgage lender often pays the balance of the purchase tointhe seller atany closing. IfMARKED a buyer included 45 ____________________________________________________________________________________________________ (4) U.S. Mail: depositing the document or written notice postage prepaid the U.S. Mail, addressed either to the __ Party, 38 Seller's recipient for delivery (optional): _______________________________________________________________________ 32 OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF “N/A” 56 constitutes personal delivery to, or are Actual Receipt by, all(see Buyers or 185-193) Sellers. to be excluded by Seller or which are rented 19 CAUTION: Identify Fixtures that on the Property lines 46 or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. earnest money with an offer, the balance of the purchase price will reflect credit for that earnest money. 39 fortodelivery (optional): _______________________________________________________________________ 33 Buyer's OR ARE LEFT BLANK. 20 willrecipient continue be owned by the lessor. 47 and Delivery address for Seller: ________________________________________________________________________________ ___ If 40 a buyer did not include earnest money with an offer, the balance of the purchase price may be the (2)The Fax: fax transmission of the WRITTEN document writtencontract notice to or the following telephone 34 DELIVERY OF DOCUMENTS AND NOTICES Unless otherwise stated in thisnumber: Offer, delivery ofwhat documents 21 terms of this________________________________________________________________________________ Offer, not the or listing marketing materials, determine items and are 48 NOTE: Delivery(________) address for Buyer: ___ 41 Seller: ________________________________ Buyer: (_________) _______________________________ ____ __ 35 written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 36-54. entire purchase price. 22 49 included/excluded. (5) Commercial E-Mail: electronically transmitting the document ororwritten noticetotothe the Party, Party’s e-mail address,toif an given below at line 42 (3) Delivery: depositing the document written prepaid or charged account with aif 36 (1) Personal Delivery: giving occurs the document or written notice personally or the Party's for delivery 23 ACCEPTANCE Acceptance when all Buyers and Sellers havenotice signedfees oneor copy of the Offer, orrecipient separate but identical 50 53 or 54. If this is a consumer transaction where the property being purchased the sale proceeds are used primarily for 43 delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for 37 commercial named at line 38 or 39. 24 of the Offer. 51 copies personal, or purposes, each consumer providing an e-mail address below has first consented electronically 44 tofamily the Party's delivery address line 47 or 48. 38 delivery Seller's recipient forhousehold delivery 25 Deadlines in the(optional): Offer areat_______________________________________________________________________ commonly calculated from acceptance. Consider whether short term deadlines 52 CAUTION: to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, required by federal law. 45 (4)recipient U.S. acceptance Mail: depositing the document ortime written noticebinding postage prepaid in the U.S. Mail,as addressed either to the Party, 39 Buyer's for delivery (optional): _______________________________________________________________________ 26 running from provide adequate for both acceptance and performance. 53 E-Mail address for Seller (optional): _______________________________________________________________________ 46 Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. 40 or to the (2) Fax: fax transmission of the document or written notice to the following telephone number: 27 BINDING ACCEPTANCE This Offer_______________________________________________________________________ is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on 54 E-Mail address forforBuyer (optional): 47 address Seller: ________________________________________________________________________________ ___ 41 Delivery Seller: (________) ________________________________ Buyer: (_________) _______________________________ ____ __ 28 before _______________________________________________________________. may theBuyer Property on the 134 55 or PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to,notice or Actual ReceiptSeller by,charged any keep named or with Seller 48 address for Buyer: ________________________________________________________________________________ ___ 42 Delivery (3) Commercial Delivery: depositing the document or written fees prepaid or to an account a 29 market and accept secondary offers after binding acceptance of this Offer. 56 constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers. 49 (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 43 commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for 30 CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. 3 4

______________________________________________________________ in the _________________________________ of __________________________________, County of _____________________________ Wisconsin (insert additional 7 description, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434), on the following terms: 8 ■ PURCHASE PRICE: _________________________________________________________________________________ Offers to Purchase - 10 9 ____________________________________________________________ Dollars ($___________________________ ______). 10 ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ 11 will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or 12 ________________________________________________________________________________________________ ______. Lines 14-22 Included/ Not Included in Purchase Price 13 ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. 14 ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on 15 the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ ______. 16 ___________________________________________________________________________________________________ 17 ■ NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ 18 _________________________________________________________________________________________________________. 19 CAUTION: Identify Fixtures that are on the Property (see lines 185-193) to be excluded by Seller or which are rented 20 and will continue to be owned by the lessor. 21 NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are Page 4 of 9, WB-11 22 173included/excluded. DEFINITIONS CONTINUED FROM PAGE 2 23 occurs when Buyers and Sellers have one copy of the Offer, orcalculated separate but identical 174 ACCEPTANCE ■ DEADLINES: Acceptance “Deadlines” expressed asall a number of “days” from an signed event, such as acceptance, are by excluding The purchase price of a property always includes the fixtures unless otherwise agreed to by the parties. 24 copies of the Offer. 175 the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Buyers may also want a seller to include some of the seller’s personal property in the purchase price. 25 Offer are commonly calculated acceptance. Consider short term deadlines 176CAUTION: Deadlines Deadlines expressed in as the a specific number of “business days”from exclude Saturdays, Sundays,whether any legal public holiday under 26 running from acceptance provide adequate time for both binding acceptance and performance. A 177 buyer listsorthis personal 15-16. If President there are fixtures a property the buyer Wisconsin Federal law, andproperty any other on day lines designated by the such that the on postal service doesthat not receive 27 ACCEPTANCE This Offer is binding only ifexpressed a copy ofthese the Offer delivered to Buyer on 178 BINDING registered mailincluded or make regular deliveries onupon that both day.Parties Deadlines as aaccepted specific number of “hours” from the does not want in the transaction, the buyer excludes items onis lines 17-18. Whether 28 before _______________________________________________________________. Seller may and keepby thecounting Property24onhours the 179or occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, an29 item is a fixture is not always clear to consumers involved in a real estate transaction. A licensee and accept after binding acceptance of the this calendar Offer. 180market per calendar day. secondary Deadlines offers expressed as a specific day of year or as the day of a specific event, such as must understand the definition of fixture and educate the parties 30 CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. about which items will or will not be 181 closing, expire at midnight of that day. included in the purchase price. 31 PROVISIONS TERMS OF THIS THAT PRECEDED AN on OPEN the ) ARE PART that OF THIS 182 OPTIONAL ■ DEFECT: “Defect” means a condition that OFFER would have a ARE significant adverseBY effect the BOX value( of Property; would 32 ONLYimpair IF THE IS or MARKED WITH ANof“X.” AREorNOT OF THIS removed OFFER IForMARKED 183OFFER significantly theBOX health safety ofSUCH futureAS occupants the THEY Property; that PART if not repaired, replaced “N/A” would Lines 185-195 Fixtures 33 ARE LEFT BLANK. 184OR significantly shorten or adversely affect the expected normal life of the premises. 34 DELIVERY OF NOTICES otherwise statedtoinorthis delivery of documents andor 185 ■ FIXTURE: ADOCUMENTS “Fixture” is anAND itemWRITTEN of property which isUnless physically attached soOffer, closely associated with land 35 notices tosoa as Party shall be effective when by one of thelimitation, methods specified lines 36-54. 186written improvements to be treated as partonly of the realaccomplished estate, including, without physicallyatattached items not easily 36 Personalwithout Delivery: giving to thethe document or items writtenspecifically notice personally or the Party's for delivery if 187(1) removable damage premises, adaptedtotothe theParty, premises and items recipient customarily treated as 37 named at line 38 or 39. 188 fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric 38 delivery (optional): 189Seller's lightingrecipient fixtures; for window shades; curtain_______________________________________________________________________ and traverse rods; blinds and shutters; central heating and cooling units and attached 39 recipient for heaters delivery (optional): _______________________________________________________________________ 190Buyer's equipment; water and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached 40 (2) Fax: fax transmission the remote document or written noticesecurity to the following number: 191 antennas; garage door openersofand controls; installed systems;telephone central vacuum systems and accessories; in41 ________________________________ Buyer: (_________) _______________________________ ______ 192Seller: ground(________) sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent 42 (3) Commercial Delivery: depositing foundations. the document or written notice fees prepaid or charged to an account with a 193 foundations and docks/piers on permanent 43 addressed to the Party, or to or thewhich Party'sare recipient for(e.g., delivery if named at line or 39, for 194commercial CAUTION: delivery Excludeservice, any Fixtures to either be retained by Seller rented water softener or 38 other water 44 delivery to the Party's delivery address at line 47 or 48. 195 conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 17-18. 45 (4) U.S. Mail: depositing the stated, document or written notice prepaid in the U.S. Mail, addressed either to the Party, 196 ■ PROPERTY: Unless otherwise “Property” means thepostage real estate described at lines 4-7. There many subtleties in the definition oforacknowledges fixtures. Forthat example, on lineaddress 189, the definition 46 toare the Party's recipient for delivery ifSURVEYS named at line 38 39, for delivery to the Party's at line 47 or 48. or includes 197orPROPERTY DIMENSIONS AND Buyer any land,delivery building or room dimensions, total 47 Delivery address for Seller: ________________________________________________________________________________ ___ofrods. curtains and traverse rods but does not include the actual curtains or draperies that hang on the 198 acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because 48 address for used Buyer: ________________________________________________________________________________ ___ 199Delivery rounding, formulas or other reasons, unlessdisputes verified by by survey or other means. Licensees can help parties avoid fixture educating both buyers and sellers on the definition 49 (5) E-Mail: electronically transmitting the document or writtentotal notice to thefootage/acreage Party’s e-mail address, if given belowbuilding at line 200 CAUTION: Buyer should verify total square footage formula, square figures, and land, of50fixtures and ensuring that buyers are specific when naming items to be included and excluded 54. dimensions, If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for 20153 or or room if material. from the purchase price in a buyer’s Asdays noted on lines at 21-22, a buyer’s offer toelectronically purchase, not 51 family or household purposes, each offer. consumer below hastime firstpre-approved consented 202personal, BUYER’S PRE-CLOSING WALK-THROUGH Within 3 providing prioran to e-mail closing,address a reasonable by Seller or a 52 seller’s listing contract, controls what is included in the purchase price. When listing a property, a to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. 203 Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change 53 E-Mail address for Seller (optional): _______________________________________________________________________ licensee a seller except identify fixtureswear thatand the seller wants approved to exclude fromand thethat transaction 204 in the should condition have of the Property, for ordinary tear and changes by Buyer, any defects and 54 address for Buyer (optional): _______________________________________________________________________ 205E-Mail Sellerthe has seller agreed to curean have beento repaired in the manner by the Parties. caution that offer purchase, ratheragreed thantothe listing contract, determines what items will 55 DELIVERY/ACTUAL RECEIPT Personal to, or Actual by,the anyProperty named until Buyer Sellerof 206 PERSONAL PROPERTY BETWEEN ACCEPTANCE ANDdelivery CLOSING Seller shallReceipt maintain the orearlier be56 included in DAMAGE the purchase price. personal delivery to, in or materially Actual Receipt by, allcondition Buyers or 207constitutes closing or occupancy of Buyer the same asSellers. of the date of acceptance of this Offer, except for ordinary 5 6

A208seller’s dining contains an the antique chandelier thatinbelonged grandmother. When the price, property, wear and tear.room If, prior to closing, Property is damaged an amounttoofthe not seller’s more than five percent (5%) of listing the selling Seller shall be obligated to repair thechandelier Property and it to the same condition thatorit was the day of thisto Offer. No later a209 licensee should ask the seller if the is restore going to remain in the property if theonseller is going remove it. If the 210 than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed seller intends to take the chandelier, the seller should exclude it from the listing contract and, if the seller accepts an offer, 211 such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. make sure that the buyer has also excluded it from the offer to purchase. If a buyer submits an offer that does not exclude 212 Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, the chandelier, a seller could counter-offer excluding it from the purchase price of the offer. If a seller accepts an offer that 213 relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on does not exclude the chandelier, it issale included in thebypurchase price ofor the accepted a fixture. If the seller removed 214 such policy, if any. However, if this is financed a land contract a mortgage to offer Seller,asany insurance proceeds shall 215 chandelier be held in trust forto thethe sole purpose of restoring the Property. the prior buyer taking occupancy, a buyer may have a claim against the seller for the chandelier or the cost of its replacement. To avoid ambiguity, a seller could choose to remove the chandelier before showing the property to prospective buyers.

If parties to a transaction have a dispute after closing regarding included and excluded items, licensees should refer the parties to an attorney to discuss their options and should not attempt to negotiate a solution between the parties.

135

6 of __________________________________, County of _____________________________ Wisconsin (insert additional 15 the datebyofthethis Offer Department not excluded at lines and the following additional items: __________________________________ Approved Wisconsin of Regulation and17-18, Licensing Page 1 of 9, WB-11 7 description, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434), on the following terms: 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date) ______. 16 ___________________________________________________________________________________________________ 8 ■ PURCHASE PRICE: _________________________________________________________________________________ 17 ■ NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ WB-11 RESIDENTIAL OFFER TO PURCHASE 9 ____________________________________________________________ Dollars ($___________________________ ______). REAL ESTATE SALES 18 _________________________________________________________________________________________________________. 10 ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ 1 CAUTION: LICENSEE Identify DRAFTING THIS that OFFER ________________________________________ [DATE] OFrented BUYER) 19 Fixtures are ON on the Property (see lines 185-193) to be excluded by SellerISor(AGENT which are 11 will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or 2 Approved (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE 20 and willbycontinue to be owned by the lessor. the Wisconsin Department of Regulation and Licensing Page 1 of 9, WB-11 12 ________________________________________________________________________________________________ ______. (Optional Use Date) of 07-1-11 (Mandatory Use Date)the listing contract or marketing materials, determine what items are 3 03-1-11 GENERAL The Buyer, _____________________________________________________________________ 21 NOTE: ThePROVISIONS terms this Offer, not 13 ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. 4 included/excluded. _______________________________, offersRESIDENTIAL to purchase theOFFER PropertyTO known as [Street Address] _____________________ 22 WB-11 PURCHASE 14 ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on 5 ______________________________________________________________ thecopy _________________________________ 23 ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed in one of the Offer, or separate but identical 15 the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ 6 LICENSEE of __________________________________, County of _____________________________ Wisconsin (insert 1 THIS OFFER ON ________________________________________ [DATE] IS (AGENT OFadditional BUYER) 24 copies of theDRAFTING Offer. ______. 16 ___________________________________________________________________________________________________ 7 (AGENT description, ifSELLER/LISTING any, at lines 165-172 or 435-442 or attach as an addendum per lineSTRIKE 434), onTHOSE the whether following terms:term deadlines 2 OFDeadlines BROKER) (AGENT OF BUYER AND acceptance. SELLER) NOT APPLICABLE 25 CAUTION: in the Offer are commonly calculated from Consider short 17 ■ NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ 8 running ■GENERAL PURCHASE PRICE: _________________________________________________________________________________ 3 PROVISIONS The Buyer, _____________________________________________________________________ 26 from acceptance provide adequate time for both binding acceptance and performance. 18 _________________________________________________________________________________________________________. 9 _______________________________, ____________________________________________________________ Dollars ($___________________________ 4 purchase the Property as Address] _____________________ ______). 27 BINDING ACCEPTANCE This Offer is offers bindingtoupon both Parties only ifknown a copy of [Street the accepted Offer is delivered to Buyer on 19 CAUTION: Identify Fixtures that are on the Property (see lines 185-193) to be excluded by Seller or which are rented 10 ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money $ ____________________ 5 ______________________________________________________________ in the _________________________________ 28 or before _______________________________________________________________. Seller of may keep the Property on the 20 and will continue to be owned by the lessor. 11 will__________________________________, be mailed, or commercially or personally delivered within ____________________ days of acceptance listingadditional broker or 6 of County of _____________________________ Wisconsin to(insert 29 market and accept secondary offers after binding acceptance of this Offer. 21 NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are 12 ________________________________________________________________________________________________ 7 description, if any, at lines or 435-442 orto attach as anofaddendum per line 434), on the following terms: ______. 30 CAUTION: This Offer may165-172 be withdrawn prior delivery the accepted Offer. 22 included/excluded. 13 THE BALANCE OF PURCHASE willOFFER be paidTHAT in cash or equivalent at closing below. 8 ■ PURCHASE PRICE: _________________________________________________________________________________ 31 OPTIONAL PROVISIONS TERMSPRICE OF THIS ARE PRECEDED BY AN unless OPEN otherwise BOX (  )provided ARE PART OF THIS 23 ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical 9 ____________________________________________________________ Dollars ______). 14 ■ INCLUDED IN THE PURCHASE PRICE: Seller including in the price the($___________________________ Property, all Fixtures Property on 32 OFFER ONLY IF BOX IS MARKED SUCHis AS WITH AN “X.”purchase THEY ARE NOT PART OF THIS OFFERon IF the MARKED “N/A” 24 copies of the Offer. 10 of excluded $ ____________________accompanies Offer and earnest money of $ ____________________ 15 ■ theEARNEST date thisMONEY Offer not at lines 17-18, and the followingthis additional items: __________________________________ 33 OR ARE of LEFT BLANK. 25 CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines ______. 11 be mailed, commercially or personally delivered withinUnless ____________________ of acceptance to listing broker or 16 will ___________________________________________________________________________________________________ 34 DELIVERY OForDOCUMENTS AND WRITTEN NOTICES otherwise stated in days this Offer, delivery of documents and 26 running from acceptance provide adequate time for both binding acceptance and performance. 12 ______. 17 ________________________________________________________________________________________________ ■ NOTnotices INCLUDED IN PURCHASE PRICE:only ___________________________________________________________________ 35 written to a Party shall be effective when accomplished by one of the methods specified at lines 36-54. 27 BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on 13 THE BALANCE OF PURCHASE PRICE willorbewritten paid innotice cash or equivalent closing provided for below. _____. 18 ■ ____________________________________________________________________________________________________ 36 (1) Personal Delivery: giving the document personally to atthe Party,unless or theotherwise Party's recipient delivery if 28 or before _______________________________________________________________. Seller may keep the Property on the 19 ■ CAUTION: Identify Fixtures that are on the Property (see 185-193)price to bethe excluded or which rentedon 14 INCLUDED IN or PURCHASE PRICE: Seller is including in lines the purchase Property,byallSeller Fixtures on theare Property 37 named at line 38 39. 29 market and accept secondary offers after binding acceptance of this Offer. 20 the anddate willrecipient continue be excluded owned byatthe lessor. 15 of this Offer not lines 17-18, and the following additional items: __________________________________ 38 Seller's fortodelivery (optional): _______________________________________________________________________ 30 CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. ______. 21 NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are 16 ___________________________________________________________________________________________________ 39 Buyer's recipient for delivery (optional): _______________________________________________________________________ 31 OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS 22 ■ included/excluded. 17 NOT IN PURCHASE PRICE: ___________________________________________________________________ 40 (2)INCLUDED Fax: fax transmission of the document or written notice to the following telephone number: 32 OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF MARKED “N/A” 23 ____________________________________________________________________________________________________ ACCEPTANCE Acceptance occurs when all Buyers and Sellers signed one copy of the Offer, or separate but identical __ 18 ___. 41 Seller: (________) ________________________________ Buyer:have (_________) _______________________________ ____ __ 33 OR ARE LEFT BLANK. 24 CAUTION: copies(3) of the Offer. Fixtures 19 Identify thatdepositing are on thethe Property (seeorlines 185-193) be excluded Seller ortowhich are rented 42 Commercial Delivery: document written noticetofees prepaid orbycharged an account with a 34 DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and 25 and CAUTION: Deadlines theaddressed Offer are lessor. commonly acceptance. Consider whether short term38deadlines 20 will continue beinowned by the 43 commercial deliverytoservice, either to thecalculated Party, or tofrom the Party's recipient for delivery if named at line or 39, for 35 written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 36-54. 26 NOTE: runningto from acceptance provide time for both binding performance. 21 The of this Offer,adequate not the listing contract or acceptance marketing and materials, determine what items are 44 delivery the terms Party's delivery address at line 47 or 48. 36 (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if 22 27 included/excluded. BINDING ACCEPTANCE Thisthe Offer is binding both Parties only prepaid if a copyinofthe theU.S. accepted Offer is delivered to the Buyer on 45 (4) U.S. Mail: depositing document or upon written notice postage Mail, addressed either to Party, 37 named at line 38 or 39. 23 ACCEPTANCE Acceptance occursifwhen allatBuyers Sellers have signed copy ofSeller the address Offer, oratseparate 28 or before _______________________________________________________________. may keep the47 Property on the 46 to the Party's recipient for delivery named line 38and or 39, for delivery to the one Party's delivery line orbut 48.identical 38 Seller's recipient for delivery (optional): _______________________________________________________________________ 24 theaccept Offer. 29 copies market of and offers after binding acceptance of this Offer. 47 Delivery address forsecondary Seller: ________________________________________________________________________________ ___ 39 Buyer's recipient for delivery (optional): _______________________________________________________________________ 25 Deadlines in thebe Offer are commonly calculated from acceptance. 30 CAUTION: This Offer may withdrawn prior to delivery of the accepted Offer.Consider whether short term deadlines 48 Delivery address for Buyer: ________________________________________________________________________________ ___ 40 (2) from Fax: acceptance fax transmission of the document or written notice to theacceptance following telephone number: 26 provide adequate time forTHAT both binding and performance. 31 running OPTIONAL PROVISIONS TERMS OF THIS PRECEDED BYParty’s AN OPEN BOX (  ) ARE PART OFatTHIS 49 (5) E-Mail: electronically transmitting theOFFER document or ARE written notice to the e-mail address, if given below line 41 Seller: (________) ________________________________ Buyer: (_________) _______________________________ ______ 32 53 OFFER BOXThis IS MARKED SUCH ASthe WITH AN “X.” THEY NOT PART OF proceeds THIS OFFER IF MARKED “N/A” 27 BINDING Offer is binding upon both Parties onlypurchased if ARE a copy ofor the accepted Offer is are delivered to Buyer on 50 or 54.ONLY IfACCEPTANCE thisIFisTHE a consumer transaction where property being the sale used primarily for 42 (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a 33 or ORbefore ARE LEFT 28 _______________________________________________________________. Seller the Property on the 51 personal, familyBLANK. or household purposes, each consumer providing an e-mail address below hasmay firstkeep consented electronically 43 commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for 34 market DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise in this Offer, delivery by of federal documents 29 andofaccept secondary offers after binding acceptance of this Offer. in stated 52 to the use electronic documents, e-mail delivery and electronic signatures the transaction, as required law. and 44 delivery to the Party's delivery address at line 47 or 48. 35 CAUTION: written address notices to a Seller Party shall effective only accomplished by one of Offer. the methods specified at lines 36-54. 30 This Offer may bebe withdrawn priorwhen to delivery of the accepted 53 E-Mail for (optional): _______________________________________________________________________ 45 (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, 36 E-Mail (1) Personal Delivery: giving the document writtenTHAT notice personally to theBYParty, or theBOX Party's for delivery 31 OPTIONAL PROVISIONS TERMS OF THIS or OFFER ARE PRECEDED AN OPEN (  recipient ) ARE PART OF THISif 54 address for Buyer (optional): _______________________________________________________________________ 46 or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. 37 named atONLY line 38 39.BOX IS MARKED 32 OFFER IF or THE SUCH AS WITH AN “X.” THEY NOT Receipt PART OF MARKED “N/A” 55 PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, orARE Actual by,THIS anyOFFER namedIFBuyer or Seller 47 Delivery address for Seller: ________________________________________________________________________________ ___ 38 OR Seller's for delivery 33 ARErecipient LEFT BLANK. 56 constitutes personal delivery (optional): to, or Actual_______________________________________________________________________ Receipt by, all Buyers or Sellers. 48 Delivery address for Buyer: ________________________________________________________________________________ ___ 39 Buyer's recipient for delivery (optional): _______________________________________________________________________ 34 DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and 49 (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 35 notices to atransmission Party shall beofeffective only when accomplished by one of the telephone methods specified 40 written(2) Fax: fax the document or written notice to the following number: at lines 36-54. 50 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for 36 Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if 41 (1) Seller: (________) ________________________________ Buyer: (_________) _______________________________ ______ 51 personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically 37 at line 38 or 39. Delivery: depositing the document or written notice fees prepaid or charged to an account with a 42 named(3) Commercial 52 to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. 38 recipient for delivery 43 Seller's commercial delivery service, (optional): addressed _______________________________________________________________________ either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for 53 E-Mail address for Seller (optional): _______________________________________________________________________ 39 for delivery 44 Buyer's delivery recipient to the Party's delivery(optional): address at_______________________________________________________________________ line 47 or 48. 54 E-Mail address for Buyer (optional): _______________________________________________________________________ 45 (4) Fax: U.S. fax Mail: depositing the document or written notice postage the U.S. Mail, addressed either to the Party, 40 (2) transmission of the document or written notice to the prepaid followingintelephone number: 55 PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller 46 Seller: or to the(________) Party's recipient for delivery if named at line 38 or 39,Buyer: for delivery to the Party's delivery address at line 47 or 48. ______ 41 ________________________________ (_________) _______________________________ 56 constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers. 47 Delivery for Seller: ________________________________________________________________________________ 42 (3)address Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a ___

Lines 23-26 Acceptance

A party signs an offer before submitting it. If the other party accepts the offer, the party does so by signing it. This is acceptance and the date of acceptance is the date of the last signature on the offer. Many dates and deadlines for performing obligations in an offer to purchase run from the date of acceptance. When including deadlines in an offer, a party must make sure to make the deadlines long enough for performance of the underlying action. Lines 27-30 Binding Acceptance

An offer to purchase becomes a contract for sale or a purchase agreement upon binding acceptance. Until binding acceptance occurs, the party who made the offer can withdraw it. Binding acceptance occurs when the accepting party delivers the offer back to the party who made the offer according to the delivery terms of the offer. A seller can continue to market a property and accept secondary offers after binding acceptance. If a seller counters a buyer’s offer, the deadline for binding acceptance in the buyer’s offer does not apply. A seller can counter an offer at any time. Lines 31-33 Optional Provisions

Optional provisions are not part of a buyer’s offer unless the buyer marks the open box preceding an optional provision. Lines 34-54 Delivery of Documents and Written Notices

48 43 49 44 50 45 51 46 52 47 48 53 49 54 50 55 51 56 52 53 54 55 56

136

Delivery address for service, Buyer: ________________________________________________________________________________ commercial delivery addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39,___ for (5)toE-Mail: electronically transmitting the47document or written notice to the Party’s e-mail address, if given below at line delivery the Party's delivery address at line or 48. 53 or (4) 54. U.S. If thisMail: is adepositing consumer the transaction the property being purchased or the proceeds areeither used to primarily for documentwhere or written notice postage prepaid in the U.S.sale Mail, addressed the Party, personal, familyrecipient or household purposes, eachatconsumer providing an e-mail below has first consented electronically or to the Party's for delivery if named line 38 or 39, for delivery to theaddress Party's delivery address at line 47 or 48. to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. ___ Delivery address for Seller: ________________________________________________________________________________ Delivery addressforforSeller Buyer: ________________________________________________________________________________ E-Mail address (optional): _______________________________________________________________________ ___ E-Mail: transmitting the document or written notice to the Party’s e-mail address, if given below at line E-Mail(5) address forelectronically Buyer (optional): _______________________________________________________________________ 53 or 54. If this is a consumer transaction where the property being the saleby,proceeds are used primarily for PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to,purchased or Actual orReceipt any named Buyer or Seller personal, or household consumer providing an e-mail address below has first consented electronically constitutesfamily personal delivery to,purposes, or Actualeach Receipt by, all Buyers or Sellers. to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address for Seller (optional): _______________________________________________________________________ E-Mail address for Buyer (optional): _______________________________________________________________________ PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers.

Offers to Purchase - 10

The WB – 11 Residential Offer to Purchase provides a buyer with five options for delivery of documents to a party. A buyer can select personal delivery, fax, commercial delivery, U.S. Mail, and e-mail. A buyer can choose more than one method of delivery and can designate another person for purposes of personal delivery, such as a licensee or an attorney, to receive documents on the buyer’s behalf. If a buyer chooses a recipient for personal delivery, the recipient must be an actual person and not a business entity such as a corporation or limited liability company. Personal delivery is always included as a method of delivery unless a buyer strikes this language from the offer. For purposes of establishing when delivery occurred, personal delivery occurs when the party delivering the notice or document personally gives it to the other party. A buyer submits an offer to a seller that provides for personal delivery of documents and notices. The seller accepts the buyer’s offer and drives to the buyer’s house. The seller personally hands the accepted offer to the buyer, achieves delivery and binding acceptance, and turns the offer into a contract for sale. Up until the buyer had the offer, the buyer could have withdrawn it. If the seller left the accepted offer in the buyer’s mailbox, the seller does not achieve personal delivery until the buyer takes the offer from the mailbox. A party achieves fax delivery by transmitting the document or notice to the fax number provided in the offer even if the party does not receive the document or notice at that time. A party choosing fax as a method of delivery must provide a fax number. Delivery is achieved when a document is sent rather than when a party actually receives it. Licensees should make copies of fax confirmations showing the time, date, and number of faxed pages to prove when delivery occurred in case a party disputes the time or act of delivery. If faxing documents directly to a party, a licensee can fax an additional transmission to the party’s firm to confirm delivery. A seller accepts a buyer’s offer and returns the accepted offer to the listing licensee. The listing licensee faxes the accepted offer to the fax number provided by the buyer, which creates binding acceptance. It does not matter that the buyer does not receive the transmission at the time the seller faxed it. The offer to purchase became a contract for sale when the listing licensee sent the fax and the buyer can no longer withdraw the offer. Parties can choose to use a commercial delivery service for delivery of transaction documents. A party must provide an address for receipt on lines 47-48. A party achieves commercial delivery by depositing the correctly addressed item at the commercial delivery service and pays or charges any applicable fees. Like fax delivery, when the party actually receives it does not define when delivery occurs. The act of sending it, not receiving it, achieves delivery. A seller accepts a buyer’s offer and takes the accepted offer to a commercial delivery service. As soon as the seller has deposited the correctly addressed item at the delivery service and paid or charged the fee, the seller achieved delivery and binding acceptance and the buyer can no longer withdraw the offer. Though not common, parties can elect U.S. Mail as a method of delivery. The party must provide an address on lines 47-48. Delivery by U.S. Mail occurs when a party deposits a correctly addressed notice or document with appropriate postage in the U.S. Mail. That can mean dropping the item in a corner mailbox or sending it directly from a post office. A seller accepts a buyer’s offer and takes the accepted offer to the post office, pays the postage, and hands it to the clerk. The seller achieved delivery and binding acceptance. The buyer can no longer withdraw the offer. Parties can also choose e-mail as a form of delivery. Federal law governs electronic commerce. To participate in electronic transmission of notices and documents related to the transaction, the parties must electronically consent to participate in electronic commerce. Licensees working with buyers who would like to choose e-mail as a form of delivery can go to www.wra.org/ecommerce for more information on how to achieve electronic consent to e-mail transmission of real estate documents.

137

Seller: (________) ________________________________ Buyer: (_________) _____________________________________ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a 43 commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for REAL ESTATE SALES 44 delivery to the Party's delivery address at line 47 or 48. 45 (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, 46 or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. 47 Delivery address for Seller: ________________________________________________________________________________ ___ 48 Delivery address for Buyer: ________________________________________________________________________________ ___ Parties can choose one or more methods of delivery by using a mark to include the optional provisions 49 (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line party in the box preceding the method. If a party does not want to include a method of delivery, the 50 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for could mark the box preceding the unwanted option with “n/a” indicating that option is not applicable to 51 personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically the offer. 52 to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. 53 E-Mail address for Seller (optional): _______________________________________________________________________ Lines 55-56 Personal Delivery and Actual Receipt 54 E-Mail address for Buyer (optional): _______________________________________________________________________ 55 PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller 56 constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers. 41 42

If an offer to purchase involves more than one buyer or more than one seller, when a party personally delivers a document or notice to one of the buyers or sellers, the party has delivered the document or notice to all of the buyers or sellers. A husband and a wife made an offer on a seller’s house. The seller can achieve delivery of the offer back to the parties by delivering it according to the terms of the contract to either the husband or the wife. The seller does not need to deliver it separately to both buyers. Similarly, if two or more sellers have listed a property, a buyer can submit a notice or document to one of the sellers and achieve delivery without having to submit it to all sellers. Lines 57-60 Occupancy

Page 2 of 9, WB-11

OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this 58 Offer at lines 165-172 or 435-442 or in an addendum attached per line 434. At time of Buyer's occupancy, Property shall be in 59 broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, 60 or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. 61 DEFINITIONS A 62 seller usually gives“Actual occupancy of a that property at closing though thehasparties can or agree ■ ACTUAL RECEIPT: Receipt” means a Party, to not a thebuyer Party’s recipient for delivery, if any, the document Page 2 of 9, WB-11 to 63other terms. The possession, seller should leave the property broom swept and free of personal writtenoccupancy notice physically in the Party’s regardless of the method of delivery. 57 OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this 64 ■ CONDITIONS AFFECTING PROPERTY OR TRANSACTION: “Conditions Affecting the Property or Transaction” property. If the property is THE a rental property with tenants, the buyer takes occupancy subjectare to the 58 Offer at lines 165-172 or 435-442 or in an addendum attached per line 434. At time of Buyer's occupancy, Property shall be in 65 defined to include: tenants’ rights to inhabit the property according to the lease terms. 59 broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, 66 a. Defects in the roof. 60 or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. 67 b. Defects in the electrical system. Lines 62-63 Actual Receipt 61 DEFINITIONS 68 c. Defects in part of the plumbing system (including the water heater, water softener and swimming pool) that is included in 62 ■ ACTUAL RECEIPT: “Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or 69 the sale. 63 written notice physically in the Party’s possession, regardless of the method of delivery. 70 d. Defects in the heating and air conditioning system (including the air filters and humidifiers). 64 ■ CONDITIONS AFFECTING THE PROPERTY OR TRANSACTION: “Conditions Affecting the Property or Transaction” are 71 e. Defects in the well, including unsafe well water. The WB-11 Residential Offer to Purchase defines certain terms used in the contract on pages 2 and 65 defined to include: 72 f. Property is served by a joint well. 4. 7366 The “Actual Receipt” is at lines 62-63. Two deadlines in the WB-11 Residential Offer a. definition Defects in in the thefor roof. g. Defects septic system or other sanitary disposal system. 67 b. Defects in the electrical system. to 74Purchase run from a party’sfuel actual notice. located Actualonreceipt means thatthethe party h. Underground or aboveground storagereceipt tanks onoforapreviously the Property. (If "yes", owner, by has law, the 68 c. Defects into part ofnotice thethe plumbing system (including the heater,atwater softener swimming pool) that isofincluded in the document written physically in the party’s possession regardless of the method delivery 75 mayor have register tanks with the Department of water Commerce P.O. Box 7970,and Madison, Wisconsin, 53707, whether 69 the sale. 76 the tanks are inoffer use ortonot. Regulations of the Department of Commerce may require the closure or removal of unused party chose in the purchase. 70 d. Defects in the heating and air conditioning system (including the air filters and humidifiers). 77 tanks.) 71 e. Defects in the well, including unsafe well water. 78 i. 116-117 “LP” tank on the Property (specify in the additional information whether the tank is owned or leased). Lines Closing Address: is 3 of 9, WB-11 72 Property f. Defects Property served by a joint well. 79 j. in_________________________________________________________________________________________________________Page the basement or foundation (including cracks, seepage and bulges). 73 g. Defects in the septic system or other sanitary disposal system. 116 CLOSING This transaction is to be closed no later than _______________________________________________________ 80 k. Property is located in a floodplain, wetland or shoreland zoning area. 74 ___________________________________ h. Defects Underground aboveground fuel storage tanks on or previously located on the Property. (If "yes", theParties owner,in by law, 117 place selected by Seller, unless otherwise agreed by the writing. __ at the 81 l. in the or structure of the Property. 75 CLOSING may have to register the tanks with the Department of Commerce at P.O. Box 7970, Madison, Wisconsin, 53707, whether 118 PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: 82 m. Defects in mechanical equipment included in the sale either as Fixtures or personal property. Buyers and sellers can negotiate the place of closing any modification to the association contract, 76 real the tanks arelotinrents, usedisputes, or not. Regulations of(ifthe Department of but, Commerce the closure removal of unused the 119 estate taxes, prepaid insurance assumed), private andabsent municipal charges, propertyorowners 83 n. Boundary or line encroachments or encumbrances (including amay jointrequire driveway). seller chooses the place of closing. A buyer puts a deadline for closing on line 116. 77 assessments, tanks.)caused 120 fuel and _________________________________________________________________________________. 84 o. Defect by unsafe concentrations of, or unsafe conditions relating to, radon, radium in water supplies, lead in paint, 78 i. “LP” in tank onlead thebasis Property (specify in the additional information the hazardous tank is owned or leased). 121 Provide forsupplies utility charges, fuelsystem, or other if date of closing will not be used. 85 CAUTION: lead soil, in water or plumbing orprorations otherwhether potentially orvalue toxic substances on the Property. 79 Any j. Defects in the basement or foundation (including cracks, seepage and bulges). 122 income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. 86 NOTE: Specific federal lead paint disclosure requirements must be complied with in the sale of most residential 80 k. Property is built located in aprorated floodplain, wetlandbased or shoreland zoning area. 123 estate taxes shall be on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: 87 Realproperties before 1978. at closing 81 l. Defects the structureor ofasbestos-containing the Property. 124 Theinof net general real estate taxes for the preceding year, or the current year if available (Net general real estate 88 p. Presence asbestos materials on the Property. 82 m. Defects indefined mechanical equipment included the state sale either asrelating Fixtures property. 125 general property taxes tax credits and lottery credits are deducted) (NOTE: THIS CHOICE 89 q. taxes Defectare caused by as unsafe concentrations of,inafter unsafe conditions to,ororpersonal the storage of, hazardous or toxic substances 83 n. APPLIES Boundary or lot line disputes, encroachments or encumbrances (including a joint driveway). 126 IF NO BOX IS CHECKED) 90 on neighboring properties. 84 o. Defect caused by unsafe concentrations of, or unsafe conditions relating radon, radium in water in insect paint, 127 Current assessment times current mill rate (current means of theto, date closing) 91 r. Current or previous termite, powder-post beetle or carpenter antas infestations orofDefects caused bysupplies, animal orlead other 85 lead in soil, lead in water supplies or plumbing system, or other potentially hazardous or toxic substances on the Property. 128 Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior 92 infestations. 86 NOTE: Specific federal lead paint disclosure requirements must be complied with in the sale of most residential 129 year, or current year if known, multiplied by current mill rate (current means as of the date of closing) 93 s. Defects in a wood burning stove or fireplace or Defects caused by a fire in a stove or fireplace or elsewhere on the 87 properties built before 1978. 130 ________________________________________________________________________________________ _____. 94 Property. 88 CAUTION: p. Remodeling Presence of affecting asbestos or asbestos-containing materials on the systems Property. 131 Buyer is informed that the actual real taxes for the or year of closing and subsequent years may be 95 t. the Property's structure or estate mechanical additions to Property during Seller’s ownership 89 q. Defect caused bypermits. unsafe of, unsafe conditionsespecially relating to, or storage of, involving hazardous new or toxic substances 132 different than concentrations the amount used for proration in the transactions construction, 96 substantially without required 90 extensive on neighboring properties. 133 rehabilitation, or area-wide re-assessment. Buyer is encouraged contact the local assessor 97 u. Federal, state, or localremodeling regulations requiring repairs, alterations or corrections of an existingtocondition. 91 regarding r. Notice Currentpossible previous termite, powder-post beetle or annual carpenter ant infestations or Defects by animal or other insect 134 tax 98 v. oforproperty taxchanges. increases, other than normal increases, or pending propertycaused reassessment. 138 92 infestations. 135 Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on 99 w. Remodeling that may increase Property's assessed value. 93 s. the Defects in a wood burning stove or fireplace or Defects caused by a fire in a stove or fireplace or elsewhere on the5 136 actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 100 x. Proposed or pending special assessments. 94 Property. 137 of receipt, forward a copy of the bill to the district, forwarding address agrees to provide at closing. The Parties shall 101 y. days Property is located within a special purpose such as a Seller drainage district, that has the authority to impose 57

Offers to Purchase - 10 Property Address: _________________________________________________________________________________________________________Page 3 of 9, WB-11

CLOSING This transaction is to be closed no later than _______________________________________________________ Lines 118-139 Closing Prorations 116

___________________________________ __ at the place selected by Seller, unless otherwise agreed by the Parties in writing. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: 119 real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association 120 assessments, fuel and _________________________________________________________________________________. 121 CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. 122 Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. 123 Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: 124 The net general real estate taxes for the preceding year, or the current year if available (Net general real estate 125 taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE 126 APPLIES IF NO BOX IS CHECKED) 127 Current assessment times current mill rate (current means as of the date of closing) 128 Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior 129 year, or current year if known, multiplied by current mill rate (current means as of the date of closing) 130 _____________________________________________________________________________________________. 131 CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be 132 substantially different than the amount used for proration especially in transactions involving new construction, 133 extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor 134 regarding possible tax changes. 135 Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on 136 the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 137 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall 138 re-prorate within 30 days of Buyer’s receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation 139 and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. 140 LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights At141closing, andtransfer sellers proratedeposits certain credits associated the ofproperty. under saidbuyers lease(s) and all security and expenses prepaid rents and thereunder to Buyer at closing. with The terms the 142 (written) (oral) STRIKE ONE lease(s), are _____________________________________________________________ Prorations include property taxes,if any, rents, prepaid insurance, and utility charges. Sellers are responsible _____________________. Insert additional terms, any, atprior lines to 165-172 or 435-442 or attach an addendumfor per and line 434. for143costs and entitled to credits through theif day closing. Buyers are as responsible entitled 144 RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from Wisconsin Rental Weatherization to credits from the day of closing forward. The actual proration occurs at closing and prorated amounts 145 Standards (Wis. Admin. Code Ch. Comm 67). If not exempt, (Buyer) (Seller) STRIKE ONE (“Buyer” if neither is stricken) shall appear on the closing statement. Buyers and sellers can modify this arrangement by modifying the 146 be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for terms of the contract. Licensees mustof know howatto prorate taxes for the state licensing exam and to 147 compliance, Seller shall provide a Certificate Compliance closing. 148 REAL ESTATE CONDITION REPORT Wisconsin law requires of property for which includes 1-4 dwelling units to ensure closing statements correctly reflect the parties’owners responsibility taxes. 149 provide Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been The WB-11 provides buyers with four options for choosing how to prorate taxes with a seller. The first 150 inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, option permits a buyer who to prorate taxes based on the The netform general real estate from§ the preceding 151 personal representatives have never occupied the Property). of the Report is found taxes in Wis. Stat. 709.03. The 152 law provides: "§ 709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance the this year or the current year if the buyer has the tax bill for the current year. Buyers generallyofuse 153 contract of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does formula for existing property that has not undergone any revisions or reassessments. 154 not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of The second a buyer to prorate taxes according to the property’s current assessment 155 sale . . . by option deliveringpermits a written notice of rescission to the owner or the owner's agent." Buyer may also have certain rescission 156 rights if by a Real Conditioncurrent Report disclosing defects is furnished before expiration of option the 10 days, but tax after assessor the Offer is has multiplied theEstate property’s mill rate. A buyer might choose this if the 157 submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding recently reassessed the property and the preceding year’s taxes will not accurately reflect the current 158 rescission rights. year’s tax obligation. 159 PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no 160 notice knowledge of Conditions Affecting the Property or according Transaction (lines 64-114) other than those identified infair Seller's The third or option permits a buyer to prorate taxes to the percent of the property’s market 161 Real Estate Condition Report dated ____________________________________, which was received by Buyer prior to Buyer value used by the tax assessor in the prior year or the current year if the buyer knows the current year’s 162 signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and rate. A buyer might choose this option if the property is new construction or a significantly remodeled 163 ____________________________________________________________________________________________________ property and the assessor calculated the previous year’s taxes based on IN theTHE property as REPORT vacant land 164 _________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED CONDITION or165the prior existing structure. _____ ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ 166 ____________________________________________________________________________________________________ The fourth option permits a buyer to substitute a formula of the buyer’s choice. 167 ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ A 168 buyer selects one of the four options. The final optional provision in this section permits a buyer to 169 ____________________________________________________________________________________________________ choose to reprorate taxes after closing and after the buyer receives the actual tax bill for the year. A 170 ____________________________________________________________________________________________________ licensee is not responsible for the parties’ choice to reprorate taxes. 171 ____________________________________________________________________________________________________ 172 ____________________________________________________________________________________________________ 117 118

139

REAL ESTATE SALES

Property Address: _________________________________________________________________________________________________________Page 3 of 9, WB-11

CLOSING is to be closed later thanthe _______________________________________________________ When a This sellertransaction sells a property withoutnoknowing current year’s tax bill, the parties can prorate the taxes based ___________________________________ at the place selectedbetween by Seller,the unless otherwise agreedIfbya the Parties in writing.a __ on the previous year’s tax bill and divide the expense buyer and seller. buyer purchases 118 CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: property after January 1, the buyer is not responsible for the year’s total tax bill. Proration of taxes or other fees 119 real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association allows each party to pay for the time that the party actually owned the property. 120 assessments, fuel and _________________________________________________________________________________. 121 CAUTION: Provide basisProperty for utility charges, or other prorations if date of closing value will not be used. How to Prorate Taxes fuel (using lines 124-126) 122 Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. A property is closing on June 30. The sellers do not know what the current year’s tax bill will be. The parties 123 Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: prorate based on last year’s tax bill, which was $5,000. 124 Property Address: The _________________________________________________________________________________________________________Page net general real estate taxes for the preceding year, or the current year if available (Net general real 3 of 9,estate WB-11 125 CLOSING taxes are defined as general property taxes afterthan state_______________________________________________________ tax credits and lottery credits are deducted) (NOTE: THIS CHOICE 1. Calculate a daily tax rate the property. 116 This transaction is to be for closed no later 126 ___________________________________ APPLIES IF NO BOX IS CHECKED) __ at the place selected by Seller, unless otherwise agreed by the Parties in writing. 117 $5,000 / 365assessment days in a year =current $13.6986 per day 127 CLOSINGCurrent mill rate (current means of the date of closing) 118 PRORATIONS Thetimes following items, shall beasprorated at closing, based upon date of closing values: Extend theprice, number to 4 decimal places.if applicable, 128 Sale multiplied by the municipality area-wide private percentand of fair market value usedproperty by the assessor in the prior 119 real estate taxes, rents, prepaid insurance (if assumed), municipal charges, owners association 129 year, or current year if known, multiplied by current mill rate (current means as of the date of closing) 2. Calculate the _________________________________________________________________________________. number of calendar days prior to closing. 120 assessments, fuel and 130 CAUTION:________________________________________________________________________________________ _____. 121 Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. There are 180isdays from that Januaryactual 1 to June 29 taxes for the year of closing and subsequent years may be 131 Any CAUTION: informed real estate 122 income,Buyer taxes or expenses shall the accrue to Seller, and be prorated at closing, through the day prior to closing. Seller expenses areprorated prorated throughbased the for day prior to closing. 132 Real substantially different the amount especially in transactions involving new construction, 123 estate taxes shall bethan at closingused onproration [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: 133 extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the localreal assessor 124 The netthe general real of estate fordaily the preceding or the current year ifresponsibility. available (Net general estate 3. Multiply number daystaxes by the tax rate toyear, determine the seller’s 134 regarding possible 125 taxes are definedtax as changes. general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE $13.6986 180BOX days =CHECKED) $2,465.75 135 Buyer Seller to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on 126 APPLIES IFxand NO ISagree 136 the actual tax bill for the year of closing, withrate Buyer and Seller each his of or closing) her pro-rata share. Buyer shall, within 5 127 Current give assessment times mill means asend ofowing the The sellers $2,465.75 tocurrent the buyers at (current closing. At the ofdate the year, the buyers pay the entire tax bill. 137 days of receipt, a copy of the bill to thearea-wide forwardingpercent addressofSeller agreesvalue to provide at closing. The Parties 128 Sale price,forward multiplied by the municipality fair market used by the assessor in the shall prior 138 re-prorate withinyear 30 days of Buyer’s receipt of the mill actual tax bill. Buyer and Seller agree this is a post-closing obligation 129 year, or current if known, multiplied by current rate (current means as of the date of closing) Lines 140-143 Leased Property 139 and is ________________________________________________________________________________________ the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction._____. 130 140 LEASED PROPERTY If Property currently and lease(s) extend beyond closing, Seller shall assignyears Seller's rights 131 CAUTION: Buyer is informed thatisthe actualleased real estate taxes for the year of closing and subsequent may be 141 substantially under said lease(s) and than transfer securityused deposits and prepaid rents thereunder to Buyerinvolving at closing.new Theconstruction, terms of the 132 different the all amount for proration especially in transactions 142 extensive (written) (oral) STRIKE ONE lease(s), ifor any, are _____________________________________________________________ 133 rehabilitation, remodeling area-wide re-assessment. Buyer is encouraged to contact the local assessor 143 _____________________. Insert additional terms, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434. 134 regarding possible tax changes. 144 RENTAL Buyer WEATHERIZATION transaction not) taxes, STRIKE ONE the exempt fromtoWisconsin Rental Weatherization 135 Seller agreeThis to re-prorate the(is) real(isestate through day prior closing based upon the taxes on Buyers who (Wis. areand purchasing leased have additional considerations making an offer. 145 Standards Ch. of Comm 67).property If not exempt, (Buyer) (Seller) STRIKE ONEpro-rata (“Buyer” ifwhen neither is stricken) shall 136 the actual taxAdmin. bill forCode the year closing, with Buyer and Seller each owing his or her share. Buyer shall, within 5 When a buyer purchases a leased property, the seller transfers all security deposits and prepaid 146 be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for 137 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shallrents 147 compliance, Seller shall provide aBuyer’s Certificate of Compliance closing. to138 the buyer and the the ofatthe lease otherwise agreed to byobligation the parties. re-prorate within 30buyer days ofassumes receipt ofterms the actual tax bill. Buyerunless and Seller agree this is a post-closing 148 REAL ESTATE CONDITION REPORT Wisconsin law owners of property which includes 1-4 transaction. dwelling units is the responsibility of the Parties to complete, not requires the responsibility of the real estate in this A 139 buyerand can include the lease provisions in this section or include them asbrokers an addendum or in theto lines 149 provide Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been 140 LEASED If provisions. Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights provided forPROPERTY additional 150 under inhabited, exempt from theallreal estatedeposits transfer and fee, prepaid and sales by thereunder certain court-appointed fiduciaries, example, 141 saidsales lease(s) and transfer security rents to Buyer at closing. The (for terms of the 151 (written) personal (oral) representatives wholease(s), have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The 142 STRIKE ONE if any, are _____________________________________________________________ Lines Weatherization 152 _____________________. law144-147 provides: "§Rental 709.02 Disclosure . . . the owner the property shall furnish, not later than 10asdays after acceptance the 143 Insert additional terms, of if any, at lines 165-172 or 435-442 or attach an addendum per lineof 434. 153 contract of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does 144 RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from Wisconsin Rental Weatherization 154 Standards not receive(Wis. a report within the Ch. 10 days may, business(Buyer) days after the end of that 10 day period, rescindisthe contract of 145 Admin. Code Comm 67).within If not2exempt, (Seller) STRIKE ONE (“Buyer” if neither stricken) shall 155 be saleresponsible . . . by delivering a written notice of rescission to the owner orRental the owner's agent." Buyer may also have certain rescission 146 for compliance, including all costs, with Wisconsin Weatherization Standards. If Seller is responsible for 156 compliance, rights if a Real Estate disclosing defects isatfurnished 147 Seller shallCondition provide aReport Certificate of Compliance closing. before expiration of the 10 days, but after the Offer is 157 submitted to Seller. Buyer should reviewWisconsin the report law formrequires or consult with ofanproperty attorneywhich for additional 148 REAL ESTATE CONDITION REPORT owners includes information 1-4 dwellingregarding units to Wisconsin requires weatherization and energy efficiency standards for rental properties. 158 provide rescission rights.with a minimum 149 Buyers Real Estate Condition Report. Excluded from this requirement are sales of property that has never been 159 inhabited, PROPERTY CONDITION REPRESENTATIONS Selleroccupy represents to Buyer as of of the closing date of acceptance Seller haswith no the Generally, properties the buyer will not within 60thatdays must comply 150 sales exemptthat from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, 160 notice or knowledge of Conditions Affecting the Property or Transaction (lines 64-114) other than those identified in Seller's standards. Licensees should not advise sellers and buyers about whether a property must comply 151 personal representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The with 161 law Realprovides: Estate Condition dated .____________________________________, was received by Buyer prior to Buyer 152 "§ 709.02Report Disclosure . . the Buyers owner of the property shallwith furnish, notwhich later than 10 days after acceptance the rental weatherization requirements. and sellers questions about compliance canof contact 162 contract signing this Offer. .and which is made aBuyer part ofofthis Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and 153 of sale ., to the prospective the property a completed copy of the report . . . A prospective Buyer who does the municipality or the state agency charged with enforcing the standards. If the property is not exempt 163 not ____________________________________________________________________________________________________ 154 receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of and the buyer does not assign responsibility, the buyer is responsible forINdemonstrating compliance 164 sale _________________________________ INSERT to CONDITIONS ALREADY INCLUDED THE REPORT 155 . . . by delivering a written notice of rescission the owner orNOT the owner's agent." Buyer may also CONDITION have certain rescission __ 165 ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ ___isseller with the rental weatherization requirements. If the buyer assigns responsibility to the seller, the 156 rights if a Real Estate Condition Report disclosing defects is furnished before expiration of the 10 days, but after the Offer 166 ____________________________________________________________________________________________________ can comply towith the obligations bythefurnishing property’s Certificate of Compliance at closing. 157 submitted Seller. Buyer should review report form the or consult with an attorney for additional information regarding 167 rescission ____________________________________________________________________________________________________ 158 rights. receives a Certificate of Compliance, the Certificate remains with the property and Once a property 168 ____________________________________________________________________________________________________ 159 PROPERTY CONDITION REPRESENTATIONS representsCertificates to Buyer that as the date of acceptance Seller has no subsequent owners will not need to obtainSeller additional of ofCompliance. 169 notice ____________________________________________________________________________________________________ 160 or knowledge of Conditions Affecting the Property or Transaction (lines 64-114) other than those identified in Seller's 170 Real ____________________________________________________________________________________________________ 161 Estate Condition Report dated ____________________________________, which was received by Buyer prior to Buyer 171 signing ____________________________________________________________________________________________________ 162 this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and 172 ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ 163 116 117

_________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT _____ ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ 166 ____________________________________________________________________________________________________ 167 ____________________________________________________________________________________________________ 168 ____________________________________________________________________________________________________ 169 ____________________________________________________________________________________________________ 140 170 ____________________________________________________________________________________________________ 171 ____________________________________________________________________________________________________ 172 ____________________________________________________________________________________________________ 164 165

Property Address: _________________________________________________________________________________________________________Page 3 of 9, WB-11

LEASED If Property is closing currently leased lease(s) beyond closing, Seller shallFORMULA]: assign Seller's rights Real estatePROPERTY taxes shall be prorated at based on and [CHECK BOXextend FOR APPLICABLE PRORATION CLOSING This transaction is to be closed no later than _______________________________________________________ under saidThe lease(s) and transfer all security deposits and prepaid to ifBuyer at closing. The terms of the net general real estate taxes for the preceding year, rents or thethereunder current year available (Net general real estate ___________________________________ __ at the place selected by Seller, unless otherwise agreed by the Parties in writing. (written) STRIKEasONE lease(s), if any, areafter _____________________________________________________________ taxes(oral) are defined general property taxes state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based uponOffers date of closing values: - 10 to Purchase _____________________. additional terms, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434. APPLIES IF NO BOX ISInsert CHECKED) real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association RENTAL Current WEATHERIZATION Thiscurrent transaction (is)(current (is not)means STRIKE ONE exempt from Wisconsin Rental Weatherization assessment times mill rate as of the date of closing) assessments, fuel and _________________________________________________________________________________. StandardsSale (Wis.price, Admin. Code Ch. 67). If not area-wide exempt, (Buyer) ONE used (“Buyer” if neither is stricken) shall multiplied by Comm the municipality percent(Seller) of fair STRIKE market value by the assessor in the prior CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. be responsible for compliance, including all costs, with mill Wisconsin Rentalmeans Weatherization Standards. If Seller is responsible for year, or current year if known, multiplied by current rate (current as of the date of closing) Any148-158 income, taxes or expenses accrue to Seller, and be prorated at closing, through the day prior to closing. Lines Real Estate shall Condition Report compliance, Seller shall provide a Certificate of Compliance at closing. ________________________________________________________________________________________ _____. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: REAL ESTATE Wisconsin law requires owners of property which includes 1-4 dwelling unitsbe to CAUTION: BuyerCONDITION is informed REPORT that the actual real estate taxes for the year of closing and subsequent years may The net general real estate taxes for the preceding year, or the current year if available (Net general real estate provide Buyersdifferent with a Real Estate Report. from this requirement are sales of property new that has never been substantially than the Condition amount used forExcluded proration especially in transactions involving construction, taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE inhabited, sales exempt from the real or estate transfer fee, and salesBuyer by certain court-appointed fiduciaries, (forassessor example, extensive rehabilitation, remodeling area-wide re-assessment. is encouraged to contact the local APPLIES IF NO BOX IS CHECKED) personal representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The regarding possible tax changes. Current assessment times current mill rate (current means as of the date of closing) law provides: "§ and 709.02 Disclosure . . the owner theestate property shall furnish, 10 daysbased after upon acceptance of the Buyer Seller agree to.re-prorate the of real taxes, through thenot daylater priorthan to closing the taxes on Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior contract of saletax . . bill ., tofor thethe prospective Buyer with of the property completed copy of . . . A prospective Buyer does the actual year of closing, Buyer and aSeller each owing histhe or report her pro-rata share. Buyer shall,who within 5 year, or current year if known, multiplied by current mill rate (current means as of the date of closing) not receive report forward within the 10 days may, business days afterSeller the end of thatto10 day period, rescind contract of days of areceipt, a copy of the billwithin to the2 forwarding address agrees provide at closing. Thethe Parties shall _____________________________________________________________________________________________. salere-prorate . . . by delivering a written of rescission owner the Buyer owner's agent." certain rescission within 30 days ofnotice Buyer’s receipt of to thethe actual taxorbill. and SellerBuyer agreemay this also is a have post-closing obligation CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be rights if ais Real Estate Condition defects is furnished before expiration of the 10 days, buttransaction. after the Offer is and the responsibility of theReport Partiesdisclosing to complete, not the responsibility of the real estate brokers in this substantially different than the amount used for proration especially in transactions involving new construction, submitted to Seller. Buyer should isreview the leased report and formlease(s) or consult withbeyond an attorney for Seller additional regarding LEASED PROPERTY If Property currently extend closing, shall information assign Seller's rights extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor rescission under saidrights. lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the regarding possible tax changes. PROPERTY REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no (written) (oral)CONDITION STRIKE ONE lease(s), if any, are _____________________________________________________________ Buyer and Seller agree to re-prorate the real estate taxes, through the must day prior to closing based upon the taxes on Sellers oforvacant land and property including dwelling complete a real estate condition notice knowledge of Conditions Affecting the Property Transaction (lines 64-114) other than identified _____________________. Insert additional terms, if any,1-4 atorlines 165-172units or 435-442 or attach as anthose addendum per in lineSeller's 434. the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 report. The real estate condition report (is) is a(isseller’s opportunity tofrom disclose known defects or other Real EstateWEATHERIZATION Condition Report dated which was received by Buyer prior to Buyer RENTAL This____________________________________, transaction not) STRIKE ONE exempt Wisconsin Rental Weatherization days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall signing this OfferAdmin. and which isCh. made a part of Ifthis Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and are Standards (Wis. Code Comm 67). not exempt, (Buyer) (Seller) STRIKE ONE (“Buyer” if neither is stricken) shall conditions affecting the property. Sellers of properties that have never been inhabited or that re-prorate within 30 days of Buyer’s receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation ____________________________________________________________________________________________________ be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible exemptand from the real estate transfer do not to complete estate condition reports forforthose is the responsibility of the Parties tofee complete, nothave the responsibility of the real real estate brokers in this transaction. _________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT compliance, Seller shall provide a Certificate of Compliance at closing. LEASEDIfPROPERTY If Property leased and lease(s) extend closing, Seller shall assign Seller's rights properties. a PROVISIONS/CONTINGENCIES seller is a courtis currently appointed fiduciary, such asbeyond a personal representative of an estate, _____ ADDITIONAL _________________________________________________________ REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to under said lease(s) and transfer all security deposits and prepaid rents thereunder to have Buyer at closing. The terms of the and provide the seller has never occupied the property, the seller does not to complete a real estate ____________________________________________________________________________________________________ Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been (written) (oral) STRIKE ONE lease(s), if any, are _____________________________________________________________ condition report. A seller must provide a buyer with a real estate condition report no later than 10 ____________________________________________________________________________________________________ inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, days _____________________. Insert additional terms, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434. ____________________________________________________________________________________________________ personal representatives who have never occupied the does Property). form of the is foundreport in Wis. Stat. § 709.03. after RENTAL accepting the buyer’s offer. If the seller notThe provide theReport condition to the buyerThe by the WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from Wisconsin Rental Weatherization ____________________________________________________________________________________________________ law provides: "§ 709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance of the an deadline, the(Wis. buyer hasCode twoCh. business from the 10-day deadline to rescind offer. To rescind Standards Admin. Comm 67).days If not exempt, (Buyer) (Seller) STRIKE ONE (“Buyer” ifthe neither is stricken) shall ____________________________________________________________________________________________________ of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does bearesponsible for compliance, including all of costs, with Wisconsin Rental Weatherization Standards. If SellerIfisaresponsible for offer,contract buyer delivers written notice rescission to the seller or the seller’s agent. seller provides ____________________________________________________________________________________________________ not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of compliance, Seller shall provide a Certificate of Compliance at closing. but the condition report discloses defects, a a real estate condition report within the 10-day deadline, ____________________________________________________________________________________________________ sale . . . by delivering a written notice of rescission to the owner or the owner's agent." Buyer may also have certain rescission REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to buyer may rescission should consult an attorney. rights if a have Real Estate Conditionrights Report and disclosing defects is furnished before expiration of the 10 days, but after the Offer is provide Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding inhabited, salesProperty exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, Lines 159-164 Condition Representations rescission rights. personal representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no law provides: "§ 709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance of the notice or knowledge of Conditions Affecting the Property or Transaction (lines 64-114) other than those identified in Seller's contract of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does Real Estate Condition Report dated ____________________________________, which was received by Buyer prior to Buyer not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and sale . . . by delivering a written notice of rescission to the owner or the owner's agent." Buyer may also have certain rescission ____________________________________________________________________________________________________ rights if a Real Estate Condition Report disclosing defects is furnished before expiration of the 10 days, but after the Offer is _________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding _____ ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ rescission rights. A seller represents that, as of the date of the accepted offer, the seller has no knowledge or notice of ____________________________________________________________________________________________________ PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no ____________________________________________________________________________________________________ “Conditions Affectingofthe Property or Transaction” other than those identified bythose the identified seller ininthe seller’s notice or knowledge Conditions Affecting the Property or Transaction (lines 64-114) other than Seller's ____________________________________________________________________________________________________ condition report and any additional conditions listed on lines 163-164. Lines 64-114 of the WB-11 Real Estate Condition Report dated ____________________________________, which was received by Buyer prior to Buyer ____________________________________________________________________________________________________ signing this Offer and which is made part of this or Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and define “Conditions Affecting the aProperty Transaction.” ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ Lines 165-172 Additional Provisions/Contingencies _________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT ____________________________________________________________________________________________________ _____ ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ 166 ____________________________________________________________________________________________________ 167 ____________________________________________________________________________________________________ 168 ____________________________________________________________________________________________________ 169 ____________________________________________________________________________________________________ 170 ____________________________________________________________________________________________________ 171 ____________________________________________________________________________________________________ 172 ____________________________________________________________________________________________________ 140 123 116 141 124 117 142 125 118 143 126 119 144 127 120 145 128 121 146 129 122 147 130 123 148 131 124 149 132 125 150 133 126 151 134 127 152 135 128 153 136 129 154 137 130 155 138 131 156 139 132 157 140 133 158 141 134 159 142 135 160 143 136 161 144 137 162 145 138 163 146 139 164 147 140 165 148 141 166 149 142 167 150 143 168 151 144 169 152 145 170 153 146 171 154 147 172 155 148 156 149 157 150 158 151 159 152 160 153 161 154 162 155 163 156 164 157 165 158 166 159 167 160 168 161 169 162 170 163 171 164 172 165

These blank lines can be used to add information into the offer that does not fit elsewhere.

141

REAL ESTATE SALES

Lines 174-181 Deadlines 173 DEFINITIONS CONTINUED FROM PAGE 2

Page 4 of 9, WB-11

■ DEADLINES: “Deadlines” expressed as a number of “days” from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. 176 Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under 177 Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive 178 registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of “hours” from the 179 occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours 180 per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as 181 closing, expire at midnight of that day. 182 ■ DEFECT: “Defect” means a condition that would have a significant adverse effect on the value of the Property; that would Parties calculating days to or establish a deadline a term of the offer the dayorofreplaced the event 183 significantly impair the health safety of future occupantsfor of the Property; or that if notexclude repaired, removed would and 184 significantly shorten or adversely affect the expected normal life of the premises. begin counting subsequent days. Business days exclude Saturdays, Sundays, legal holidays under 185 ■ FIXTURE: A “Fixture” is an item of property which is physically attached to or so closely associated with land or state and federal law, and days that the postal services does not receive registered mail or make Page 4 of 9, WB-11 186 improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily regular deliveries. Deadlines expresseditems as days include all calendar days and expire at midnight on the 187 removable without damage to the premises, specifically adapted to the premises and items customarily treated as 173 DEFINITIONS CONTINUED FROM PAGE 2 specified day. Hour deadlines run from the exact time of an event and run 24 hours per calendar 188 ■ fixtures, including, but not limited to, all:as garden bulbs; trees; screen and storm are doors and windows; electricday. 174 DEADLINES: “Deadlines” expressed a number of plants; “days” shrubs from anand event, such as acceptance, calculated by excluding 189 the lighting window shades; and traverse rods;calendar blinds and shutters; central heating cooling units andlast attached day fixtures; the event occurred and curtain by counting subsequent days. The deadline expiresand at midnight on the day. A175 seller accepts an offer on July and the offer contains a pumps; contingency thatormust be metany within five awnings; days of acceptance. 190 Deadlines equipment; water heaters and 1treatment sump attached fitted floor coverings; 176 expressed as a specific number systems; of “business days” exclude Saturdays, Sundays, legal public holidayattached under Because July garage 1orisFederal thedoor daylaw, of the that triggered the deadline, a party excludes andpostal begins counting with 2inbeing 191 Wisconsin antennas; openers and controls; installed systems; central systems and accessories; 177 andevent any remote other day designated by security the President such thatitvacuum the service does not July receive 192 registered ground and component built-in appliances; ceiling fans; fences; storage buildings on permanent Day 1 of thesprinkler deadline. July 6regular is Day 5 of theparts; deadline so the buyer must satisfy contingency by ofmidnight on July 178 mail orsystems make deliveries on that day. Deadlines expressed asthe a specific number “hours” from the6. 193 occurrence foundationsof and 179 andocks/piers event, suchon aspermanent receipt of afoundations. notice, are calculated from the exact time of the event, and by counting 24 hours Page 4 of 9, water WB-11 194 per CAUTION: any Fixtures to beasretained Seller or calendar which are rented water or other 180 calendarExclude day. Deadlines expressed a specificbyday of the year or as (e.g., the day of asoftener specific event, such as Lines 182-184 Defects 173 closing, DEFINITIONS CONTINUED FROM 195 conditioning home entertainment 181 expiresystems, at midnight of that day.PAGE 2 and satellite dish components, L.P. tanks, etc.) on lines 17-18. 174 ■ ■ DEFECT: DEADLINES: “Deadlines” expressed a number of “days” event, such asat acceptance, arethe calculated excluding 196 PROPERTY: Unless otherwise stated,as “Property” means thefrom real an estate described lines 4-7. of 182 “Defect” means a condition that would have a significant adverse effect on the value Property;bythat would Page 4 of 9, WB-11 175 the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. 197 PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room dimensions, or total 183 significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or replaced would 173 DEFINITIONS CONTINUED FROM number PAGE 2ofprovided 176 significantly Deadlines as a specific “business Saturdays, Sundays, anybelegal public holiday underof 198 acreage orexpressed building square footage to days” Buyer by or by a broker, may approximate because 184 shorten or adversely affectfigures, the expected normal life ofexclude theSeller premises. 174 ■ DEADLINES: “Deadlines” expressed as unless aday number of “days”by from such asthat acceptance, calculated bynot excluding 177 ■ Wisconsin or AFederal law, and other designated the an President suchto the closely postalare service doeswith receive 199 rounding, formulas used orisother reasons, verified or event, other means. 185 FIXTURE: “Fixture” an any item of property which by is survey physically attached or so associated land or 175 the day themail event occurred and by counting subsequent calendar days. The deadline expires number atfigures, midnight onland, the last day. 178 registered or make regular deliveries on that day. Deadlines expressed as a specific of “hours” from the 200 CAUTION: Buyer should verify total square footage formula, total square footage/acreage and building 186 improvements so as to be treated as partdefects of the real estate, including, limitation, physically attached notto easily Sellers must disclose a property’s and buyers canwithout include contingencies in anitems offer inspect 176 Deadlines expressed as a specific number “business days” exclude Saturdays, Sundays, any legal public holiday 179 removable occurrence of an event, receipt of a of notice, are calculated from the time of the event, and by counting 24 under hours 201 or room dimensions, if such material. without damage toasthe premises, items specifically adapted toexact the premises and items customarily treated as or187 test for defects. Licensees should not provide opinions to sellers or buyers about which conditions 177 Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive 180 fixtures, per calendar day. but Deadlines expressed as a specific ofshrubs the calendar year asand thestorm daytime of apre-approved specific event, as 202 BUYER’S PRE-CLOSING WALK-THROUGH Withinplants; 3day days prior toand closing, atscreen aorreasonable by such Seller or 188 including, not limited to, all: garden bulbs; trees; doors and windows; electric are defects but can direct thethe parties to definition found at lines 182-184 and let parties decide 178 registered mailBuyer ormidnight make regular deliveries on the that day. Deadlines expressed as that a specific number of the “hours” from the 181 lighting closing,fixtures; expire at of that day. 203 Seller's agent, shall have rightand to walk through Property to determine there and has been no significant change 189 window shades; curtain traverse rods;the blinds and shutters; central heating cooling units and attached 179 occurrence of“Defect” an event, such aascondition receipt ofthat a notice, calculated from thechanges exact time of the the event, counting 24defects hours whether acondition condition a defect. 182 equipment; ■ the DEFECT: means would are have a significant adverse effect on ofand theby Property; that would 204 in theconstitutes Property, except for ordinary wear and tear and approved by Buyer, and that any 190 waterof heaters and treatment systems; sump pumps; attached or fitted floorvalue coverings; awnings; attached 180 per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as 183 antennas; significantly impairdoor the health orbeen safety of future occupants ofagreed the Property; orParties. that if notvacuum repaired, removed oraccessories; replaced would 205 Seller has agreed to cure have repaired in the manner to by the 191 garage openers and remote controls; installed security systems; central systems and inLines 185-195 Fixtures 181 closing, expire at midnight of that day. 184 significantly shorten or adversely affect the expected normal life of the premises. 206 ground PROPERTY DAMAGE ACCEPTANCE ANDappliances; CLOSING ceiling Seller fans; shall fences; maintainstorage the Property untilonthe earlier of 192 sprinkler systemsBETWEEN and component parts; built-in buildings permanent 182 ■ “Defect” means aancondition would have aissignificant adverse effect of associated the Property; thatordinary would 185 foundations ■ DEFECT: FIXTURE: A docks/piers “Fixture” is on item of that property which physically attached to on or the so value closely land or 207 closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, exceptwith for 193 and permanent foundations. 183 significantly impair thetoto health or safety of future of an theamount Property; or that if than not repaired, removed or items replaced would 186 CAUTION: improvements so as be treated as part the realby estate, including, without limitation, physically attached not water easily 208 wear and tear. If, prior closing, the is occupants damaged in ofare not more five percent (5%) of the selling price, 194 Exclude any Fixtures toProperty be of retained Seller or which rented (e.g., water softener or other 184 significantly shorten or adversely affect the expected normal life ofadapted the premises. 187 conditioning removable damage toentertainment the items specifically to theL.P. premises and customarily treated as 209 Seller shall without be obligated to repair thepremises, Property and restore itdish to the same condition that it was onitems thelines day of this Offer. No later 195 systems, home and satellite components, tanks, etc.) on 17-18. 185 ■ FIXTURE: A “Fixture” is an item ofgarden property which is physically attached to or so storm closely associated with land or 188 fixtures, including, but not limited to, all: bulbs; plants; shrubs and trees; screen and doors and windows; electric 210 than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed 196 ■ PROPERTY: Unless otherwise stated, “Property” means the real estate described at lines 4-7. 186 sowindow as to be treatedcurtain as part of traverse the real estate, including, without limitation, physically attached items easily 189 improvements lighting fixtures; shades; and rods; and that shutters; central heating cooling units andnot attached 211 such sum, Seller shall promptly Buyer inBuyer writing of blinds the damage and Offerbuilding may beand at option of 197 PROPERTY DIMENSIONS ANDnotify SURVEYS acknowledges anythis land, orcanceled room dimensions, orBuyer. total 187 removable without damage to premises, itemssuch specifically adapted to theorpremises and items customarily treated as 190 acreage equipment; water treatment systems; sump pumps; attached fitted floor coverings; awnings; attached 212 Should Buyer electheaters to carryand outthe this Offer despite shall to the proceeds, if any, 198 or building square footage figures, provided to damage, Buyer by Buyer Seller or bybe a entitled broker, may beinsurance approximate because of 188 fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric 191 antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accessories; 213 rounding, relating toformulas the damage Property, plus a credit towards the purchase equal to the amount of Seller's deductible inon 199 usedtoorthe other reasons, unless verified by survey or other price means. 189 lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling unitson and attached 192 CAUTION: ground sprinkler systems andif this component parts; built-in appliances; ceiling fans; fences; storage buildings permanent 214 such policy, if any. However, sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall 200 Buyer should verify total square footage formula, total square footage/acreage figures, and land, building 190 equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached 193 or foundations andfor docks/piers on permanent foundations. 215 be held indimensions, trust the sole purpose of restoring the Property. 201 room if material. 191 antennas; garage doorany openers and to remote controls; by installed security systems; central(e.g., vacuum systems and accessories; in194 CAUTION: Exclude Fixtures be retained Sellerprior or which are atrented softener or other water 202 BUYER’S PRE-CLOSING WALK-THROUGH Within 3 days to closing, a reasonablewater time pre-approved by Seller or 192 ground sprinkler systems and entertainment component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent 195 conditioning systems, home and satellite dish components, L.P. tanks, etc.) on lines 17-18. 203 Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change 193 foundations and docks/piers on permanent foundations. 196 in ■ the PROPERTY: otherwise stated, for “Property” the real describedapproved at lines 4-7. 204 condition Unless of the Property, except ordinarymeans wear and tearestate and changes by Buyer, and that any defects 194 CAUTION: Exclude any Fixtures to be retained byacknowledges Seller orcontract which arebut rented (e.g., water softener or otherorwater This definition is similar to the definition in manner the listing notbuilding identical. 197 PROPERTY DIMENSIONS AND SURVEYS Buyer that land, or room dimensions, total 205 Seller has agreed to cure have been repaired in the agreed to by theany Parties. 195 conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 17-18. because of 198 acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate 206 PROPERTY BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Property until the earlier of Lines 197-201DAMAGE Property Dimensions andmeans Surveys 196 ■rounding, PROPERTY: Unless otherwise stated, “Property” real estate described at lines 4-7. 199 closing used or other verified bythe survey other means. 207 or formulas occupancy of Buyer in reasons, materiallyunless the same condition as oforthe date of acceptance of this Offer, except for ordinary 197 PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or figures, room dimensions, or total 200 wear CAUTION: Buyer should verify the total squareisfootage formula, total square footage/acreage building 208 and tear. If, prior to closing, Property damaged in an amount of not more than five percent (5%) and of theland, selling price, 198 acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of 201 or room dimensions, if material. 209 Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. No later 199 rounding, formulas used or other reasons, unlessWithin verified by survey or closing, other means. 202 than BUYER’S PRE-CLOSING WALK-THROUGH 3 days to at and a reasonable time pre-approved by Seller or 210 closing, Seller shall provide Buyer with lien waivers for allprior lienable repairs restoration. If the damage shall exceed 200 CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building 203 such Seller's agent, Buyer have the right to walk throughofthe determine thatmay therebehas been noat significant 211 sum, Seller shallshall promptly notify Buyer in writing theProperty damagetoand this Offer canceled option of change Buyer. 201 or dimensions, ifProperty, material.except for ordinary wear and tear and changes approved by Buyer, and that any defects 204 Should in room the condition of the 212 Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, 202 BUYER’S PRE-CLOSING WALK-THROUGH Within 3 days prior to at a reasonable time pre-approved by Seller or 205 Seller has agreed to cure have been repaired the manner to closing, by the Parties. 213 relating to the damage to the Property, plusapproximate a in credit towardsagreed the purchase price equal to theof amount of Seller's are deductible on Measurements of the property are and if to measurements aProperty property material to 203 Seller's agent, Buyer shallBETWEEN have the right to walk through theCLOSING Property determine there the has been no until significant change 206 such PROPERTY ACCEPTANCE Seller shall that maintain the earlier of 214 policy, if DAMAGE any. However, if this sale is financed byAND a land contract or a mortgage to Seller, any insurance proceeds shall a 215 buyer, the buyer should verify the measurements. Aand buyer verify by a this property’s 204 in the condition of the Property, for the ordinary wear and as tearof changes approved Buyer, and thatmeasurements any defects 207 closing occupancy Buyer in except materially same condition the date ofcan acceptance of Offer, except for ordinary be held or in trust for the of sole purpose of restoring the Property. Seller hastear. agreed to cure have been repaired inisthe to byproperty by205 ordering a survey. want a manner survey the include thatofas contingency 208 wear and If, prior to Buyers closing, thewho Property damaged inagreed anofamount ofthe notParties. more must than five percent (5%) the a selling price, 206 PROPERTY BETWEEN AND Seller shallthat maintain the Property the earlier of 209 Seller shall beDAMAGE obligated to repair the ACCEPTANCE Property and restore to the sameto condition it was on the dayshould of until this Offer. No later because surveys are not automatically a part ofitCLOSING an offer purchase. Licensees not represent 207 closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary 210 than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed dimensions or measurements ofProperty a property without citing the source for the figure. 208 If, prior closing, the an damage amount ofand notthis more thanmay five be percent (5%) at of option the selling price, 211 wear such and sum,tear. Seller shalltopromptly notify Buyer is indamaged writing ofinthe Offer canceled of Buyer. 209 be obligated to repair the Property and restore it to the same it was day of this Offer. Noif later 212 Seller Shouldshall Buyer elect to carry out this Offer despite such damage, Buyercondition shall be that entitled to on thethe insurance proceeds, any, 210 closing, shall Buyer plus with alien waivers for all repairs If the shall exceed 213 than relating to theSeller damage to provide the Property, credit towards thelienable purchase price and equalrestoration. to the amount of damage Seller's deductible on 211 promptly notify in writing the contract damageorand this Offertomay be any canceled at option of Buyer. 214 such such sum, policy,Seller if any.shall However, if this saleBuyer is financed by aofland a mortgage Seller, insurance proceeds shall 142 212 to sole carrypurpose out thisofOffer despite damage, Buyer shall be entitled to the insurance proceeds, if any, 215 Should be held Buyer in trustelect for the restoring the such Property. 213 relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on 174 175

significantly or adversely affect the expected normal life of the premises. foundations shorten and docks/piers on permanent foundations. ■ FIXTURE:Exclude A “Fixture” an itemto ofbeproperty is physically to or(e.g., so closely associated or CAUTION: any is Fixtures retainedwhich by Seller or whichattached are rented water softener or with otherland water improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 17-18. Offers to Purchase - 10 removable without damage to thestated, premises, itemsmeans specifically adapted the premises ■ PROPERTY: Unless otherwise “Property” the real estate to described at linesand 4-7.items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors windows; or electric PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room and dimensions, total lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of equipment; water heaters and reasons, treatmentunless systems; sump pumps;or attached or fitted floor coverings; awnings; attached rounding, formulas used or other verified by survey other means. antennas; openers remote controls; installed security central vacuum systems inCAUTION:garage Buyer door should verifyand total square footage formula, total systems; square footage/acreage figures,and andaccessories; land, building Lines 202-205 Buyer’s Pre-closing Walk-through ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent or room dimensions, if material. foundations and docks/piersWALK-THROUGH on permanent foundations. BUYER’S PRE-CLOSING Within 3 days prior to closing, at a reasonable time pre-approved by Seller or CAUTION: Exclude any Fixtures betoretained by Seller or which are rented softener or otherchange water Seller's agent, Buyer shall have the to right walk through the Property to determine that(e.g., therewater has been no significant conditioning systems, home entertainment and satellite dishtear components, L.P.approved tanks, etc.) linesand 17-18. in the condition of the Property, except for ordinary wear and and changes by on Buyer, that any defects ■ PROPERTY: Unless otherwise stated, “Property” real estate described Seller has agreed to cure have been repaired in the means mannerthe agreed to by the Parties.at lines 4-7. PROPERTY DIMENSIONS AND SURVEYS BuyerAND acknowledges anyshall land,maintain buildingthe or Property room dimensions, or total PROPERTY DAMAGE BETWEEN ACCEPTANCE CLOSING that Seller until the earlier of acreage building square footage figures, provided to Buyeras Seller or by a walk-through broker, may be Offer, approximate because A buyer can arrange time a seller to conduct abyof pre-closing within three daysofprior closing ororoccupancy ofaBuyer inwith materially the same condition the date of acceptance of this except for ordinary rounding, formulas used other reasons, unless verifiedis byinfor survey other means. wear and The tear. If,purpose prior to or closing, the Property is damaged an amount of not than five percent (5%) of theand selling price, to closing. of the walk-through a or buyer tomore evaluate the property determine CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, Seller shall be obligated to the repairsame the Property and restore it to the the samebuyer condition that it the was on the day ofand thisland, Offer.building No lateris an that or it is in substantially condition as when made offer. Additionally, this room dimensions, if material. than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed opportunity for a buyer toWALK-THROUGH verify that the seller has completed any repairs as agreed to inbythe contract BUYER’S 3 days to closing, at aOffer reasonable pre-approved Seller or such sum, PRE-CLOSING Seller shall promptly notify Buyer inWithin writing of theprior damage and this may betime canceled at option of Buyer. for sale. Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, in the condition of the to Property, exceptplus for aordinary wear and and changes approved by Buyer, and thatdeductible any defects relating to the damage theDamage Property, credit towards thetear purchase priceClosing equal to the amount of Seller's on Lines 206-215 Property Between Acceptance and Seller has agreed cure haveif been repaired in the manner agreed to by Parties. to Seller, any insurance proceeds shall such policy, if any.toHowever, this sale is financed by a land contract orthe a mortgage PROPERTY BETWEEN AND CLOSING Seller shall maintain the Property until the earlier of be held in trustDAMAGE for the sole purpose ofACCEPTANCE restoring the Property. closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary 208 wear and tear. If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the selling price, 209 Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. No later 210 than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed 211 such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. 212 Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, 213 relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on 214 such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall 215 be held in trust for the sole purpose of restoring the Property. 184 193 185 194 186 195 187 196 188 197 189 198 190 199 191 200 192 201 193 202 194 203 195 204 196 205 197 206 198 207 199 208 200 209 201 210 202 211 203 212 204 213 205 214 206 215 207

The terms of the WB-11 dictate the parties’ actions and remedies if property damage occurs between acceptance and closing. If the damage is less than 5% of the purchase price, the seller must repair the property and provide lien waivers to the buyer for all lienable repairs and restoration no later than closing. If the damage is 5% of the purchase price or greater, the seller notifies the buyer in writing and the buyer can cancel the offer. If a buyer chooses to continue with the transaction, the buyer is entitled to insurance proceeds resulting from the damage.

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REAL ESTATE SALES

Lines 216-263 Financing Contingency

Property Address: _________________________________________________________________________________________________________Page 5 of 9, WB-11

216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271

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IF LINE 217 IS NOT MARKED OR IS MARKED N/A LINES 257-263 APPLY. FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written __________________ ______________________________________________________ [INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within _______ days of acceptance of this Offer. The financing selected shall be in an amount of not less than $ _____________________ for a term of not less than ______ years, amortized over not less than _____ years. Initial monthly payments of principal and interest shall not exceed $ _____________. Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and/or loan origination fee in an amount not to exceed ________% of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 228 or 229.  FIXED RATE FINANCING: The annual rate of interest shall not exceed _______%.  ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed _______%. The initial interest rate shall be fixed for _______ months, at which time the interest rate may be increased not more than ________% per year. The maximum interest rate during the mortgage term shall not exceed ________%. Monthly payments of principal and interest may be adjusted to reflect interest changes. If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 165-172 or 435-442 or in an addendum attached per line 434. ■ BUYER’S LOAN COMMITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to provide evidence of application promptly upon request of Seller. If Buyer qualifies for the loan described in this Offer or another loan acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline at line 219. Buyer and Seller agree that delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy Buyer’s financing contingency if, after review of the loan commitment, Buyer has directed, in writing, delivery of the loan commitment. Buyer’s written direction shall accompany the loan commitment. Delivery shall not satisfy this contingency if accompanied by a notice of unacceptability. CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. BUYER, BUYER’S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN COMMITMENT TO SELLER OR SELLER’S AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. ■ SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment; Seller may terminate this Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. ■ FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. ■ IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party in control of Buyer’s funds shall provide Seller with reasonable written verification that Buyer has, at the time of verification, sufficient funds to close. If such written verification is not provided, Seller has the right to terminate this Offer by delivering written notice to Buyer. Buyer may or may not obtain mortgage financing but does not need the protection of a financing contingency. Seller agrees to allow Buyer’s appraiser access to the Property for purposes of an appraisal. Buyer understands and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this Offer is subject to an appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency. APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer’s lender having the Property appraised at Buyer’s expense by a Wisconsin licensed or certified independent appraiser who issues an appraisal report dated subsequent to the date of this Offer indicating an appraised value for the Property equal to or greater than the agreed upon purchase price. This contingency shall be deemed satisfied unless Buyer, within _____________ days of acceptance, delivers to Seller a copy of the appraisal report which indicates that the appraised value is not equal to or greater than the agreed upon purchase price, accompanied by a written notice of termination. CAUTION: An appraisal ordered by Buyer’s lender may not be received until shortly before closing. Consider whether deadlines provide adequate time for performance.

Offers to Purchase - 10

Many buyers must secure financing in the form of a mortgage to purchase a seller’s property. A buyer can use the financing contingency to make an offer on a property with the understanding that, if the buyer is unable to get financing according to terms acceptable to the buyer, the buyer will be unable to complete the transaction. If a buyer is going to make an offer contingent on financing, the buyer marks the blank box on line 217. If the offer is not contingent on financing, the provisions at lines 257-263 apply. A buyer uses lines 217-226 to describe the loan the buyer would like to use to finance the transaction. The buyer names the source, which could be a conventional loan, a Veterans Administration (VA) or Federal Housing Authority (FHA) loan, or some other kind of loan. On line 219, a buyer sets a deadline from acceptance for obtaining the loan. Lines 220-226 describe the terms of the loan including the amount of the loan, monthly mortgage payments, length of the loan, interest rate, and other fees. Lines 224-226 state that if the final purchase price is different from the purchase price in a buyer’s offer, the amount of the loan stated on line 220 and the monthly mortgage payment stated on line 221 adjust automatically to reflect the final purchase price. Using lines 228-232, a buyer indicates whether the desired loan is a fixed or adjustable rate loan. The Buyer’s Loan Commitment subsection at lines 235-246 provides that if a buyer qualifies for the loan described or another loan that is acceptable to the buyer, the buyer will provide evidence in the form of a loan commitment from a lender to the seller by the deadline stated by the buyer at line 219. If a buyer applies for or if a lender offers a loan other than the one described at lines 217-234 and that loan is acceptable to a buyer, a buyer can provide that loan commitment to a seller and satisfy the loan contingency. Buyers must include written direction for delivery of the loan commitment along with the actual loan commitment. Delivery of a buyer’s loan commitment to the seller, even if the loan commitment is subject to additional conditions, satisfies this contingency. Line 243 cautions the buyer that delivery of a loan commitment that is subject to additional conditions satisfies the contingency. A loan commitment is not a guarantee from a lender that the buyer will actually receive the requested loan. Loan commitments from lenders are often subject to additional conditions such as appraisals or verification of other information used by the lender to evaluate a borrower’s credit worthiness. Once a buyer delivers a loan commitment, the financing contingency is satisfied even if the lender ultimately does not provide the loan for any reason. A buyer cannot rescind an offer after satisfying the financing contingency if the lender decides not to finance the transaction. A buyer’s financing contingency states that the buyer will apply for a loan at 5.25% for a term of 30 years. The lender provides a loan commitment for a loan on those terms subject to the lender’s appraisal of the property. The buyer directs, in writing, delivery of the loan commitment to the seller. The buyer has satisfied the financing contingency. The lender appraises the property and decides not to issue the loan based on the appraisal. The buyer cannot rescind the offer to purchase based on the financing contingency even though the lender has decided not to finance the transaction. A buyer’s financing contingency states that the buyer will apply for a loan at 5.25% for a term of 30 years. The lender provides a loan commitment for a loan at 6% for 30 years. The buyer decides this is acceptable and delivers this loan commitment to the seller. The buyer has satisfied the financing contingency. If a buyer fails to deliver a loan commitment to the seller by the deadline in the contingency, the seller can terminate the offer by delivering written notice to the buyer as long as the seller delivers the written notice prior to actual receipt of the buyer’s loan commitment.

145

amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. 227 CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 228 or 229. 228  FIXEDSALES RATE FINANCING: The annual rate of interest shall not exceed _______%. REAL ESTATE 229  ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed _______%. The initial interest 230 rate shall be fixed for _______ months, at which time the interest rate may be increased not more than ________% per 231 year. The maximum interest rate during the mortgage term shall not exceed ________%. Monthly payments of principal 232 and interest may be adjusted to reflect interest changes. 233 If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing,On describe at lines A buyer’s financing contingency deadline for satisfaction is 30 days from acceptance. Day 31, the buyer has not 234 165-172 or 435-442 or in an addendum attached per line 434. provided a loan commitment. On Day 31, the seller provides written notice of termination of the offer. 235 ■ BUYER’S LOAN COMMITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a A236buyer’s financing deadline for satisfaction isupon 30 days from acceptance. On Dayfor33, has not mortgage loan, andcontingency to provide evidence of application promptly request of Seller. If Buyer qualifies thethe loanbuyer described 237 in thisaOffer another loan The acceptable to Buyer, Buyer agreeswritten to deliver to Seller a copy of the loanthe commitment no provided loanorcommitment. seller has not yet provided notice of termination. Onwritten Day 34, buyer personally 238 later than the deadline at line 219. Buyer and Seller agree that delivery of a copy of any written loan commitment to hands a loan commitment to the seller. The seller has actual receipt of the buyer’s loan commitment and the seller can no 239 Seller (even if subject to conditions) shall satisfy Buyer’s financing contingency if, after review of the loan longer terminate the offer based on the financing contingency even though the buyer failed to deliver the loan commitment 240 commitment, Buyer has directed, in writing, delivery of the loan commitment. Buyer’s written direction shall by the deadline the contingency. 241 accompany specified the loan in commitment. Delivery shall not satisfy this contingency if accompanied by a notice of 242 unacceptability. CAUTION: The delivered commitment conditions Buyer must yet satisfy to obligateloan the lender to acceptable provide If 243 a buyer is unable to obtain a loanmay ascontain described in the contingency or another that is 244 the loan. BUYER, BUYER’S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN to the buyer, the buyer delivers a notice of financing unavailability and lender rejection letters to the 245 COMMITMENT TO SELLER OR SELLER’S AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS seller. Lines 252-255 provide a seller with the option of deciding to finance the transaction according 246 ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. to247the terms specified in the buyer’s loan contingency. sellerofhas days from of thethis notice ■ SELLER TERMINATION RIGHTS: If Buyer does not make timelyAdelivery said 10 commitment; Sellerreceipt may terminate of248 unavailability to provide written notice to the buyer of the seller’s intention to finance the transaction. Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. If 249 a seller does this, the parties proceed to closing and the buyer cannot rescind the offer to purchase 250 ■ FINANCING UNAVAILABILITY: not available on the terms stated in If thisaOffer (andnames Buyer has already loan based on the buyer’s inability Iftofinancing satisfyis the financing contingency. buyer a not specific 251 delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of source, such as an FHA or VA loan, the seller does not have the opportunity to finance the transaction 252 same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is because the seller cannot provide financing according to the terms described in the buyer’s loan 253 named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this commitment. 254 transaction on the same terms set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain If 255 theextended offer isaccordingly. not contingent on financing, a buyer must provide evidence that the buyer has the funds to 256 any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. complete the transaction. Lines 257-263 dictate the terms of offers not contingent on financing. Within 257 ■ IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party seven days of an accepted offer that is not on financing, a financial orverification, third party in 258 in control of Buyer’s funds shall provide Seller withcontingent reasonable written verification that Buyer has,institution at the time of 259 sufficient funds to close. If such written verification is not provided, Seller has the right to terminate this Offer by control of buyer’s funds shall provide verification of the funds to the seller. If the seller doesdelivering not receive 260 written notice to Buyer. Buyer may or may not obtain mortgage financing but does not need the protection of a financing verification, the seller can terminate the offer. 261 contingency. Seller agrees to allow Buyer’s appraiser access to the Property for purposes of an appraisal. Buyer understands 262 and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this Offer is subject to an Lines 264-271 Appraisal Contingency 263 appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency. 264 APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer’s lender having the Property appraised 265 at Buyer’s expense by a Wisconsin licensed or certified independent appraiser who issues an appraisal report dated 266 subsequent to the date of this Offer indicating an appraised value for the Property equal to or greater than the agreed upon 267 purchase price. This contingency shall be deemed satisfied unless Buyer, within _____________ days of acceptance, delivers 268 to Seller a copy of the appraisal report which indicates that the appraised value is not equal to or greater than the agreed upon 269 purchase price, accompanied by a written notice of termination. 270 CAUTION: An appraisal ordered by Buyer’s lender may not be received until shortly before closing. Consider whether 271 deadlines provide adequate time for performance. 225 226

By including an appraisal contingency in an offer, a buyer can have an appraisal of the property and if the property does not appraise at the purchase price or higher, the buyer can terminate the offer by providing written notice with the appraisal report to the seller within the deadline from acceptance included on line 267. A buyer submits an offer including both a financing and appraisal contingency. A lender offers the buyer a loan on the terms stated in the financing contingency. The lender’s loan commitment is subject to an appraisal. The buyer provides the loan commitment to the seller, satisfying the loan contingency. The lender appraises the property and the appraisal is for less than the agreed upon purchase price. The lender will not issue the loan. The buyer delivers a copy of the appraisal and written notice of termination to the seller and terminates the offer.

146

Offers to Purchase - 10

Lines 272-277 Distribution of Information

Page 6 of 9, WB-11

DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the 273 Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as 274 defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple 275 listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information 276 and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers 277 researching comparable sales, market conditions and listings, upon inquiry. 278 DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and This section of permits licensees disclose terms an offer to other real 279 conditions this Offer. A materialto failure to perform any of obligation under this Offer is aestate default professionals. which may subjectWithout the Page 6 of 9, WB-11 280 defaulting party included to liability forin damages or other legal remedies. could not disclose pending sale, closed this permission the WB-11, a licensee sale, and 272 OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the 281 DISTRIBUTION If Buyer defaults, Seller may: financing information to appraisers and lenders who need that information to research comparable 273 to Buyer's lender, appraisers, title insurance anyas other settlement theor transaction as 282 Offer (1) sue for specific performance and request companies the earnest and money paymentservice of the providers purchase for price; sales and appraise properties. This section also permits apartial licensee tofinancing provide copies ofsue buyers’ offers 274 the Real Settlement Procedures Act (RESPA); (ii) report sales as and concession data tofor multiple 283 defined (2) by terminate theEstate Offer and have the option to: (a) request the earnest money liquidated damages; or (b) actual to275 lenders, appraisers, title insurance companies, and other service sold databases; and (iii) provide active listing, pending sale, settlement closed sale andservice financingproviders. concession information 284 listingdamages. 276 anddefaults, related Buyer information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers 285 and data, If Seller may: Lines 278-297 Default 277 sales, market or conditions and listings, upon inquiry. 286 researching (1) sue comparable for specific performance; 278 Seller the andOffer Buyer havethethe legalofduty to use money, good faith due diligence the terms and 287 DEFAULT (2) terminate andeach request return the earnest sueand for actual damages,inorcompleting both. 279 of thisthe Offer. A material to perform any obligation under this Offer is a default which may subject the 288 conditions In addition, Parties may seekfailure any other remedies available in law or equity. 280 party to liabilitythat for the damages or other legal remedies. 289 defaulting The Parties understand availability of any judicial remedy will depend upon the circumstances of the situation and the 281 If Buyer defaults, Seller may:Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution 290 discretion of the courts. If either 282 (1)of sue specific outlined performance andByrequest thetoearnest as partial payment of the or in a court of 291 instead thefor remedies above. agreeing bindingmoney arbitration, the Parties may losepurchase the right price; to litigate 283 (2) terminate Offer by andthe have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual 292 law those disputesthe covered arbitration agreement. 284 damages. 293 NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD 285 If Seller defaults, Buyer may: 294 READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS 286 (1) sue for specific performance; or BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL 295 OF THE OFFER BUT ARE PROHIBITED 287 (2) terminate Offer and request the return of the earnestBE money, sue for damages, both. 296 RIGHTS UNDER the THIS OFFER OR HOW TITLE SHOULD TAKEN AT actual CLOSING. AN or ATTORNEY SHOULD BE 288 In addition, Parties may seek any other remedies available in law or equity. 297 CONSULTED IF the LEGAL ADVICE IS NEEDED. 289 Parties understand This that the availability any amendments judicial remedy depend upon the circumstances the Buyer situation the 298 The ENTIRE CONTRACT Offer, includingof any towill it, contains the entire agreement ofofthe andand Seller 290 courts. If either Party defaults, the may renegotiate Offer into or seek resolution 299 discretion regarding of thethe transaction. All prior negotiations andParties discussions have beenthe merged this nonjudicial Offer. Thisdispute agreement binds 291 of the remedies above.toBy agreeing to binding arbitration, Parties may lose the right to litigate in a court of 300 instead and inures to the benefitoutlined of the Parties this Offer and their successors in the interest. 292 those ABOUT disputes SEX covered by the arbitration agreement. 301 law NOTICE OFFENDER REGISTRY You may obtain information about the sex offender registry and persons 293 IF ACCEPTED, OFFER CREATEthe A LEGALLY ENFORCEABLE BOTH SHOULD 302 NOTE: registered with the THIS registry by CAN contacting Wisconsin Department CONTRACT. of Corrections onPARTIES the Internet at 294 THIS DOCUMENT CAREFULLY. BROKERS PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS 303 READ http://www.widocoffenders.org or by telephone at (608)MAY 240-5830. 295 OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL 296 RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE 297 CONSULTED IF LEGAL ADVICE IS NEEDED. 298 ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller Sometimes, parties to a contract are unwilling or unable to perform as required under the contract. 299 regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds When that occurs, a party the contract defaults on the terms of the contract giving rise to 300 and inures to the benefit of thebreaches Parties to this Offer and theirand successors in interest. 301 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons remedies for the non-breaching party. The WB-11 provides standard remedies to buyers and sellers if 302 registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at the other party defaults on the contract. The WB-11 informs the parties at lines 278-279 that the parties 303 http://www.widocoffenders.org or by telephone at (608) 240-5830. 272

are obligated to use good faith and due diligence when completing the terms of the offer.

Licensees should not advise parties on whether another party is in default and should not recommend any particular remedy or strategy when dealing with a party in default. Parties with questions about the status of a contract and remedies available for default should consult an attorney. If a buyer or a seller asks a licensee about contract default, the licensee can explain this section but should not suggest that one or any of the options are suitable remedies for the non-breaching party. The preprinted terms of the WB-11 provide sellers and buyers with remedies if the other party breaches the contract. When reviewing these remedies with a party, a licensee should point out the use of the word “or” in the presentation of the options. A non-breaching party cannot elect all of the remedies and choosing one over another may eliminate the party’s option to choose another remedy. A buyer decides not to complete the contract for sale. A seller decides to keep the earnest money as liquidated damages. A seller cannot then sue for specific performance or actual damages. Lines 289-292 state that parties are not limited to the remedies contained in the WB-11. Parties can always seek other remedies available under the law as well as pursuing alternative dispute resolution. 147

278 DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and 290 discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution 279 conditions of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the 291 instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of 280 defaulting party to liability for damages or other legal remedies. 292 law those disputes covered by the arbitration agreement. REAL ESTATE SALESSeller may: 281 If Buyer defaults, 293 NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD 282 (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or 294 READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS 283 (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual 295 OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL 284 damages. 296 RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE 285 If Seller defaults, Buyer may: 297 CONSULTED IF LEGAL ADVICE IS NEEDED. 286 (1) sue for specific performance; or 298 ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller 287 (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. 299 regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds 288 In addition, the Parties may seek any other remedies available in law or equity. 300 and inures to the benefit of the Parties to this Offer and their successors in interest. 289 The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the 301 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons 290 discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution 302 registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at 291 instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of 303 http://www.widocoffenders.org or by telephone at (608) 240-5830. 292 law those disputes covered by the arbitration agreement.

Lines 298-300 Entire Contract

An offer to purchase includes the original offer, any amendments to it, and any property incorporated into the offer. All prior negotiations and discussions are merged into the offer. The entire contract binds the parties and their successors in interest. This means that if a party to the contract dies, the party’s 293 NOTE: IF ACCEPTED,in THIS OFFER remain CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD estate or successors interest bound by the contract. 294

READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS

OF THE ARE BY LAW FROM GIVING ADVICE OR OPINIONS YOURclosing. LEGAL The A295buyer andOFFER a sellerBUT have a PROHIBITED contract for sale of the seller’s property. Unfortunately, theCONCERNING seller dies before 296 RIGHTS THIS OFFER ORtransaction HOW TITLE SHOULD TAKEN with AT CLOSING. AN ATTORNEY SHOULD BE seller’s estateUNDER must continue with the and proceedBE to closing the buyer even if the estate’s representative 297 CONSULTED IF LEGAL ADVICE IS NEEDED. or the seller’s heirs do not want to sell the property.

ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds Lines 301-303 Notice About Sex Offender Registry 300 and inures to the benefit of the Parties to this Offer and their successors in interest. 301 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons 302 registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at 303 http://www.widocoffenders.org or by telephone at (608) 240-5830. 298 299

A licensee satisfies any disclosure obligations related to sex offenders by providing the website and the telephone number of the Wisconsin Department of Corrections sex offender registry. Lines 304-311 Closing of a Buyer’s Property Contingency

Property Address: _________________________________________________________________________________________________________Page 7 of 9, WB-11

CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's property located at _____________________________________________, no later than ______________. If Seller accepts 306 a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written 307 waiver of the Closing of Buyer's Property Contingency and ______________________________________________________ 308 _____________________________________________________________________________________________________ 309 [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL 310 CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within ____ hours of Buyer's Actual 311 Receipt of said notice, this Offer shall be null and void. 312 SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery This contingency permits a buyer to make an offer contingent on the sale of the buyer’s home. The 313 of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior buyer identifies residence onbuyer line given 305 the andright sets a made deadline theofsale. a buyerbuyers. is unable 314 to any deadline,the nor buyer’s is any particular secondary to be primaryfor ahead other If secondary Buyer on may the declare this Offerproperty null and void delivering written set notice Sellerbuyer prior to is delivery of Seller's notice this to315close buyer’s bybythe deadline onof withdrawal line 305,to the unable to satisfy 316 that this Offer is primary. Buyer may also not deliver notice of withdrawal earlier than _____ aftertoacceptance of this Offer. All contingency. This contingency gives a seller the ability to ask a days buyer waive the contingency if 317 other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. a seller accepts a secondary offer. If a seller accepts a secondary offer, the seller can ask the buyer 318 TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) to319waive this contingency within the number of hours on line A dates buyer has intothis decide occupancy; (4) date of closing; (5) contingency Deadlines STRIKEspecified AS APPLICABLE and 310. all other andthen Deadlines whether to waive the contingency. If a buyer is willing to waive the contingency, the buyer must comply 320 Offer except: _________________________________________________________________________________________ 321 _________________________________________________________________________________________________ _____ the with any other obligations listed on lines 307-308 or get “bumped” out of primary position, voiding 322 ______________________________________________________________. If “Time is of the Essence” applies to a date or offer, and let the seller elevate another offer to primary position. A buyer may include provisions on 323 Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to lines 307-308 for paying a seller additional earnest money or waiving other contingencies. 324 a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. 325 deadline TITLE EVIDENCE The for waiving the closing of buyer’s property contingency runs from a buyer’s actual receipt 326 ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed of the seller’s notice of accepting a secondary offer. Actual receipt means that the buyer, not the 327 (trustee’s deed if Seller is a trust, personal representative’s deed if Seller is an estate or other conveyance as buyer’s recipient for delivery, has the notice. 328 provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements 329 entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use 330 restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate 331 Condition Report and in this Offer, general taxes levied in the year of closing and ___________________________________ 332 _________________________________________________________________________________________________ _____ 333 _________________________________________________________________________________________________ _____ 334 _________________________________________________________________________________________________ _____ 335 which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents 336 necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. 337 WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may 338 prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making 339 improvements to Property or a use other than the current use. 340 ■ TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the 341 purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all 342 costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. 148 343 ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) 344 STRIKE ONE (“Seller’s” if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after 345 the effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy 304 305

CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's property located at _____________________________________________, no later than ______________. If Seller accepts 306 a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written - 10 Offers to Purchase 307 waiver of the Closing of Buyer's Property Contingency and ______________________________________________________ 308 _____________________________________________________________________________________________________ 309 [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL 310 CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within ____ hours of Buyer's Actual Lines 312-317 Secondary Offer 311 Receipt of said notice, this Offer shall be null and void. 312 SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery 313 of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior 314 to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. 315 Buyer may declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller's notice 316 that this Offer is primary. Buyer may not deliver notice of withdrawal earlier than _____ days after acceptance of this Offer. All 317 other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. 318 TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) A 319 seller who has accepted offer canDeadlines continue to accept secondary the occupancy; (4) date of closing; an (5) contingency STRIKE AS APPLICABLE and offers all otheron dates andproperty. Deadlines inBecause this licensees can disclose that a seller has accepted an offer, a buyer can write an offer on a property as 320 Offer except: _________________________________________________________________________________________ _________________________________________________________________________________________________ _____ can a 321 secondary offer. The buyer knows that the seller has already accepted an offer and the buyer 322 ______________________________________________________________. If “Time is of the Essence” applies to a date or choose to select this optional provision and write the offer as a secondary offer. This provision informs 323 Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to a 324 buyer that there is no priority among secondary offers. When a buyer submits a secondary offer, a a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. buyer includes a deadline on line 316 before which the buyer will not withdraw the buyer’s secondary 325 TITLE EVIDENCE offer. The provision prevents buyer offrom withdrawing a secondary beforebythe deadline 326 ■ CONVEYANCE OF TITLE: Uponapayment the purchase price, Seller shall conveyoffer the Property warranty deed and 327 (trustee’s deed if interest. Seller is a trust, personal representative’s deed if Seller is an estate or other conveyance as protects a seller’s 328 provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements A329seller accepts primary offer with a closing property contingency. Theservices, seller receives secondary entered underathem, recorded easements for of thebuyer’s distribution of utility and municipal recordeda building and offer use and provides notice to the primary buyer, triggering the buyer’s deadline to waive the contingency. The buyer, according to 330 restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate 331 Condition andoffer, in thishas Offer, levied the year of closing ___________________________________ line 310 of theReport buyer’s 72general hours taxes to waive thein contingency. Theand buyer who submitted the secondary offer puts 2 332 _________________________________________________________________________________________________ ___ day, days on line 316 of the offer. On Day 2, the buyer who submitted the secondary offer withdraws the offer. The __ next 333 _________________________________________________________________________________________________ _____ the primary buyer does not deliver a notice waiving the financing contingency. The seller has gone from having __ two offers 334 _________________________________________________________________________________________________ ___ to335zero offers. which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents Property Address: _________________________________________________________________________________________________________Page 7 of 9, WB-11 336 necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. A304 seller accepts a primary offer PROPERTY with a closing of buyer’s property contingency. The seller receives a secondary offer and CLOSING OF BUYER'S CONTINGENCY: This Offer contingent upon the closing ofand the sale of Buyer's 337 WARNING: Municipal and zoning ordinances, recorded building andisuse restrictions, covenants easements may provides notice to the primary buyer, triggering the buyer’s deadline to waive thethan contingency. The buyer, according 305 located at _____________________________________________, no later ______________. If Seller accepts 338 property prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates makingto line 306 fide secondary offer, Seller mayother written notice to Buyer acceptance. If Buyer does not to Seller a written 310 ofbona the buyer’s offer, has 72 togive waive the contingency. The buyer who submitted the deliver secondary offer puts 2 days 339 a improvements to Property or hours a use than the current use. of 307 waiver thethe Closing Buyer's Property Contingency and 340line ■ TITLE EVIDENCE: shall give evidence ofthat title in _________________________________________________ the form of anbuyer owner's policywithdraw of title insurance in the amount of the the on 316of of offer.ofSeller The seller, recognizing the secondary could the secondary offer_____ before 308 _________________________________________________________________________________________________ ____all 341 purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay primary buyer has to waive the contingency, counters the secondary offer with a four-day deadline before the secondary 309 OTHER title REQUIREMENTS, IF ANY PAYMENT ADDITIONAL EARNEST MONEY, WAIVER OF ALL 342 [INSERT costs of providing evidence to Buyer. Buyer(e.g., shall pay all costsOF of providing title evidence required by Buyer’s lender. offer can be withdrawn. 310 OR PROVIDING EVIDENCE SALEendorsement OR BRIDGE or LOAN, etc.)] within ____ hours Buyer's Actual 343 CONTINGENCIES, ■ GAP ENDORSEMENT: Seller shall provide OF a “gap” equivalent gap coverage at of (Seller’s)(Buyer’s) Receipt said(“Seller’s” notice, thisif Offer shall be nullcost andto void. 344 STRIKEofONE neither stricken) provide coverage for any liens or encumbrances first filed orcan recorded A 311 licensee must understand how these deadlines work together so the licensee helpafter sellers 312 SECONDARY OFFER: This Offer is secondary a prior accepted offer. This Offersubject shall become primary upon delivery 345 the effective date of the title insurance commitment to and before the deed is recorded, to the title insurance policy evaluate secondary offers and how to use them with primary offers that contain a closing of buyer’s 313 written notice Buyer that provided this Offer the is primary. Unless will otherwise provided, Seller isIfnot obligated to give Buyer notice prior 346 of exclusions and to exceptions, title company issue the endorsement. a gap endorsement or equivalent gap property IfBuyer a seller understands deadlines, the seller prevent situation 314 any contingency. deadline, nor is any particular secondary the is right to be made for primary ahead of other secondarythe buyers. 347 to coverage is not available, may give writtenbuyer noticegiven thatthese title not acceptable closing (seecan lines 353-359). 315 may declare Offer null and void by delivering written notice of withdrawal to Seller to deliveryifofthe Seller's notice where a seller goes from having multiple toofhaving no evidence offers. 348 Buyer ■ PROVISION OF this MERCHANTABLE TITLE: For offers purposes closing, title shall prior be acceptable required title 316 this Offer is primary.isBuyer maytonot deliverattorney notice oforwithdrawal than5 _____ days afterbefore acceptance this Offer. 349 that insurance commitment delivered Buyer's Buyer not earlier less than business days closing,ofshowing titleAllto Lines 318-324 Timewhich is of the Essence 317 Offer deadlines run than from acceptance shalldelivery run fromofthe time thisevidence Offer becomes primary. 350 other the Property as of a date noare more 15 days before such title to be merchantable per lines 326-335, 318 TIME IS OF THE ESSENCE “Time is of out the Essence” as to: (1) payment(s); (2) bindingrequirements acceptance; (3) 351 subject only to liens which will be paid of the proceeds of earnest closing money and standard title insurance and 319 occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this 352 exceptions, as appropriate. 320 except: 353 Offer ■ TITLE NOT_________________________________________________________________________________________ ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of 321 _____to 354 _________________________________________________________________________________________________ objections to title by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, 322 ______________________________________________________________. If “Time is of the Essence” applies to a date 355 remove the objections, and the time for closing shall be extended as necessary for this purpose. In the event that Selleroris 323 perform by the exact Deadline is afrom breach of contract. "Time istoofdeliver the Essence" apply to 356 Deadline, unable to failure removetosaid objections, Buyerdate shallorhave 5 days receipt of noticeIfthereof, written does noticenot waiving the 324 date or Deadline, within reasonable time of theIfdate or Deadline allowed a breach 357 a objections, and the then time performance for closing shall beaextended accordingly. Buyer does not iswaive the before objections, this occurs. Offer shall be 325 TITLEand EVIDENCE 358 null void. Providing title evidence acceptable for closing does not extinguish Seller's obligations to give Time is of the essence means that a responsible party all the contractual 326 CONVEYANCE OFBuyer. TITLE: Upon payment of the purchase price,must Seller perform shall convey Property by obligations warranty deedby the 359 ■ merchantable title to 327 (trustee’s deedor if the Sellerparty is a trust, personal representative’s deedParties if Seller can is andecide estate or stated deadline will be in breach of contract. toother haveconveyance deadlinesaswhere 328 provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements time is not of the essence by striking them from lines 318-319 or by listing the deadlines where time 329 entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use is330 not of the essence on lines 320-322. If time is not of the essence, then the responsible party must restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate perform within a reasonable what is closing a reasonable time for performance will depend 331 Condition Report and in this Offer,time. generalDetermining taxes levied in the year of and ___________________________________ on332the facts of each situation and also local custom and practice. _________________________________________________________________________________________________ _____ 333 _________________________________________________________________________________________________ _____ 334 _________________________________________________________________________________________________ _____ 335 which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents 336 necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. 337 WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may 338 prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making 339 improvements to Property or a use other than the current use. 340 ■ TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the 149 341 purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all 342 costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. 343 ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) 304 305

other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) 319 occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this REAL ESTATE SALES 320 Offer except: _________________________________________________________________________________________ 321 _________________________________________________________________________________________________ _____ 322 ______________________________________________________________. If “Time is of the Essence” applies to a date or 323 Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to Lines 325-359 Title Evidence 324 a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. 325 TITLE EVIDENCE 326 ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed 327 (trustee’s deed if Seller is a trust, personal representative’s deed if Seller is an estate or other conveyance as 328 provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements 329 entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use 330 restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate 331 Condition Report and in this Offer, general taxes levied in the year of closing and ___________________________________ 332 _________________________________________________________________________________________________ _____ 333 _________________________________________________________________________________________________ _____ 334 _________________________________________________________________________________________________ _____ 335 which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents 336 necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. 337 WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may 338 prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making 339 improvements to Property or a use other than the current use. 340 ■ TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the 341 purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all 342 costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. 343 ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) 344 STRIKE ONE (“Seller’s” if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after 345 the effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy 346 exclusions and exceptions, provided the title company will issue the endorsement. If a gap endorsement or equivalent gap 347 coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 353-359). 348 ■ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title 349 insurance commitment is delivered to Buyer's attorney or Buyer not less than 5 business days before closing, showing title to 350 the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 326-335, 351 subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and 352 exceptions, as appropriate. 353 ■ TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of 354 objections to title by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to 355 remove the objections, and the time for closing shall be extended as necessary for this purpose. In the event that Seller is 356 unable to remove said objections, Buyer shall have 5 days from receipt of notice thereof, to deliver written notice waiving the 357 objections, and the time for closing shall be extended accordingly. If Buyer does not waive the objections, this Offer shall be 358 null and void. Providing title evidence acceptable for closing does not extinguish Seller's obligations to give 359 merchantable title to Buyer. 317 318

Upon payment of the purchase price, the seller conveys title to the buyer according to the terms listed on lines 326-329. The seller will use a warranty deed unless the seller is a trustee, then the seller conveys the title by a trustee’s deed and if the seller is an estate, then the seller conveys title by a personal representative’s deed. Parties can agree to other methods of conveying title but the default terms of the WB-11 specify the kind of deed a seller must provide according to the role of the seller. Parties list exceptions to the title on lines 331-334. Exceptions to title might include a joint driveway that is not declared elsewhere. Lines 335-336 state that the seller is responsible for recording the deed conveyance and pays the Wisconsin Real Estate Transfer Fee. Sellers provide evidence of title to a buyer by providing title insurance. The seller pays the cost of providing the title insurance policy to the buyer and the buyer pays the cost of providing title insurance to the lender. A buyer making an offer allocates responsibility for providing a “gap” endorsement to the title insurance policy. A seller must provide evidence of merchantable title to a buyer not less than 5 business days before closing. Conditions that might make a title not acceptable for closing might include a seller’s inability to provide a gap endorsement or other title defects. If a buyer finds that the title is not acceptable for closing, the buyer identifies the objections and a seller has a reasonable time to address the objections. A reasonable time is 15 days or less. If a seller cannot clear the objections, a buyer has five business days from receipt of the seller’s notice to deliver a waiver of the objections. If the buyer does not waive the objections, the offer is no longer valid. 150

Offers to Purchase - 10

Lines 360-368 Special Assessments/Other Expense

Page 8 of 9, WB-11

■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior 361 to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by 362 Buyer. 363 CAUTION: Consider a special agreement if area assessments, property owners association assessments, special 364 charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. “Other expenses” are 365 one-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) 366 relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all 367 sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact 368 fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). 369 EARNEST MONEY Special assessments are costs assessed to real estate for certain public projects. Often, municipalities 370 ■ HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker will assess special assessments for public projects that will affect or benefit a specific part of the 371 (Buyer's agent if Property is not listed or Seller's account if no broker is involved), until applied to the purchase price or community. For example, a city may levy special assessments against properties inPage a neighborhood 8 of 9, WB-11 372 otherwise disbursed as provided in the Offer. 360 ■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced priorspecial when the city is repairing sidewalks or sewers in that neighborhood. Lines 360-362 allocate 373 CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the 361 to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by offer 374 Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special assessments that have already been levied or where work has commenced prior to the date of the 362 Buyer. 375 disbursement agreement. to the seller and the buyer is responsible for all other special assessments. Buyers and sellers can 363 ConsiderIfanegotiations special agreement if area owners assessments, 376 CAUTION: ■ DISBURSEMENT: do not result in anassessments, accepted offer,property the earnest moneyassociation shall be promptly disbursed special (after modify this for arrangement and lines 363-368 caution buyers to consider a special agreement allocating 364 charges current services under Wis. Stat. § 66.0627 or other expenses are contemplated. “Other expenses” 377 clearance from payor's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money.are costs if there are future projects that will affect a property. The seller is to pay the seller’s costs for 365 ongoing fees for public improvements (other than those special 378 one-time At closing,charges earnest or money shall use be disbursed according to the closing statement. If this resulting Offer doesinnot close,assessments) the earnest 366 to curb, gutter, street, sidewalk, municipal water, sanitary and storm storm (including special assessments and other expenses no later than closing. 379 relating money shall be disbursed according to a written disbursement agreement signedwater by alland Parties to sewer this Offer. If saidall 367 mains agreement and hook-up/connection and interceptor charges), parks, lighting street trees, impact 380 sewer disbursement has not been delivered to broker within 60 days after street the date set for and closing, broker mayand disburse Lines 369-394 Earnest Money 368 for other public as by defined in Wis. Stat. 66.0617(1)(f). 381 fees the earnest money: (1)facilities, as directed an attorney who has§ reviewed the transaction and does not represent Buyer or Seller; 369 EARNEST MONEY 382 (2) into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) 370 Unless otherwise agreed, earnest be paid to services and heldtoindirect the trust account per of the listing 383 ■ anyHELD other BY: disbursement required or allowed by law.money Broker shall may retain legal disbursement (1) or to filebroker an 371 (Buyer's agent if Property is not listed or Seller's account if no broker is involved), until applied to the purchase priceto or 384 interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not 372 disbursed provided in the Offer. 385 otherwise exceed $250, prior toas disbursement. 373 Should persons Broker's other than a broker hold earnest money, annot escrow agreement should drafted by in the 386 CAUTION: ■ LEGAL RIGHTS/ACTION: disbursement of earnest money does determine the legal rights be of the Parties 374 Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special 387 relation to this Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to 375 agreement. 388 disbursement disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or 376 DISBURSEMENT: If negotiations dodisbursement, not result in an accepted offer, the earnest beregarding promptly disbursement. disbursed (after 389 ■ Seller disagree with broker's proposed a lawsuit may be filed to obtainmoney a courtshall order 377 fromCourt payor's if earnest moneydisputes is paid by check) who paid the earnest 390 clearance Small Claims hasdepository jurisdictioninstitution over all earnest money arising outtoofthe theperson(s) sale of residential property withmoney. 1-4 378 closing, earnest money shall be disbursed according to the statement. If this Offer does not close, the earnest 391 At dwelling units and certain other earnest money disputes. Buyer andclosing Seller should consider consulting attorneys regarding their 379 shall be this disbursed to a written disbursement signed by allfrom Parties to thisforOffer. said 392 money legal rights under Offer inaccording case of a dispute. Both Parties agree toagreement hold the broker harmless any liability good Iffaith 380 not been delivered to broker after the date set for broker disburse 393 disbursement disbursement agreement of earnest has money in accordance with this within Offer 60 or days applicable Department of closing, Regulation andmay Licensing 381 earnest concerning money: (1)earnest as directed by See an attorney who Code has reviewed the transaction and does not represent Buyer or Seller; 394 the regulations money. Wis. Admin. Ch. RL 18. 382 into a court hearing a lawsuitBuyer involving money and allorParties this Offer; (3) as directed by courtasorder; 395 (2) INSPECTIONS AND TESTING maythe onlyearnest conduct inspections tests iftospecific contingencies are included a partorof(4) 383 required or allowed by law. Broker may retain legal to include direct disbursement (1) or tooffile 396 any this other Offer. disbursement An “inspection” is defined as an observation of the Property whichservices does not an appraisal per or testing thean 384 interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not 397 Property, other than testing for leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, to 385 $250, priorauthorized. to disbursement. 398 exceed which are hereby A “test” is defined as the taking of samples of materials such as soils, water, air or building 386 LEGALfrom RIGHTS/ACTION: Broker's disbursement earnestofmoney does not determine the tolegal of the Parties in 399 ■ materials the Property and the laboratory or otherofanalysis these materials. Seller agrees allowrights Buyer’s inspectors, 387 to this Offer. Buyer's or Seller's legal to earnest money cannot be determined by to broker. least 30 days prior 400 relation testers and appraisers reasonable access to right the Property upon advance notice, if necessary satisfyAtthe contingencies in to 388 per (1) (4) above,may broker sendatBuyer and Seller and notice of the Except disbursement by certified mail. IfSeller’s Buyer or 401 disbursement this Offer. Buyer andorlicensees be shall present all inspections testing. as otherwise provided, 389 disagree broker'sdoes proposed disbursement, lawsuit testing may beoffiled to obtain a court order regarding disbursement. 402 Seller authorization forwith inspections not authorize Buyer toaconduct the Property. 390 Court has jurisdiction all earnest arising of the sale residential property of with 403 Small NOTE:Claims Any contingency authorizingover testing shouldmoney specifydisputes the areas of theout Property to beoftested, the purpose the1-4 391 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their 404 test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other 392 rights under in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith 405 legal material terms of this the Offer contingency. 393 of promptly earnest restore money the in accordance with this Offer or applicable Department Regulation Licensing 406 disbursement Buyer agrees to Property to its original condition after Buyer’s inspectionsofand testing areand completed 394 regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. 407 unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. 395 INSPECTIONS ANDthat TESTING Buyer may only conduct inspections or tests ifpollution specific which contingencies are included a part of 408 Seller acknowledges certain inspections or tests may detect environmental may be required to beas reported If 396 a buyer submits earnest money with an offer, the listingwhich firmdoes deposits theanmoney the listing Offer. An “inspection” is of defined asResources. an observation of the Property not include appraisal in or testing of the firm’s 409 this to the Wisconsin Department Natural trust account. If the is notcarbon listed, the buyer’s agent holds money in athe 397 Property, other than property testing for leaking monoxide, or testing for leaking LPthe gas earnest or natural gas used as fuelagent’s source, trust 398 which are hereby A “test” defined the taking of samples of materials as soils, water, or building account. If no firmauthorized. is involved in isthe saleasand the parties are directlysuch negotiating theairtransaction, the 399 materials from the Property and the laboratory or other analysis of these materials. Seller agrees to allow Buyer’s inspectors, seller holds the earnest money. Lines 373-375 caution the parties that if someone other than the listing 400 testers and appraisers reasonable access to the Property upon advance notice, if necessary to satisfy the contingencies in firm is holding the earnest money, the parties should consider an escrow agreement. If someone other 401 this Offer. Buyer and licensees may be present at all inspections and testing. Except as otherwise provided, Seller’s than the buyerforpaid the earnest money,Buyer then the parties should consider an additional agreement for 402 authorization inspections does not authorize to conduct testing of the Property. disbursing thecontingency earnest money. Licensees do not draft agreements ortested, otherthe special 403 NOTE: Any authorizing testing should specify the escrow areas of the Property to be purposeagreements of the 404 test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other between the parties. The parties or an attorney can draft those agreements. 405 material terms of the contingency. 406 Buyer agrees to promptly restore the Property to its original condition after Buyer’s inspections and testing are completed 407 unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. 408 Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported 151 409 to the Wisconsin Department of Natural Resources. 360

■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by 362 Buyer. REAL ESTATEConsider SALESa special agreement if area assessments, property owners association assessments, special 363 CAUTION: 364 charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. “Other expenses” are 365 one-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) 366 relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting street trees, and Lines impact 376If 367 a transaction closes, the closing statement specifies how to disburse theand earnest money. 368 fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). 395 dictate disbursement of earnest money if the transaction does not close. If a buyer submits an 369 EARNEST MONEY offer that the seller does not accept or the buyer withdraws the offer, the listing firm or the party holding 370 ■ HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker the money returns it to theorperson who paid 371 earnest (Buyer's agent if Property is not listed Seller's account if no it. broker is involved), until applied to the purchase price or 372 otherwise disbursed as provided in the Offer. If a transaction fails to close, the person holding the earnest money disburses it according to terms of a 373 CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the written agreement signed by all parties to the offer. If the parties do not deliver a written disbursement 374 Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special agreement to the listing firm within 60 days of the date set for closing, the listing firm has four options 375 disbursement agreement. ■ DISBURSEMENT: If negotiations do not result 381-395 in an accepted offer, the earnest money be promptly for376disbursing the earnest money. Lines provide instructions toshall a listing firmdisbursed holding(after earnest 377 clearance from payor's depository institution if earnest money is paid by check) to thean person(s) who paid the earnest money in a transaction that failed to close. The listing firm can seek attorney’s opinion andmoney. disburse At closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest it 378 according to the directions of the attorney who reviewed the transaction. The listing firm can disburse 379 money shall be disbursed according to a written disbursement agreement signed by all Parties to this Offer. If said it 380 to disbursement a court that is hearing suitdelivered involving the within earnest money and parties. The listing firm can agreement has notabeen to broker 60 days after the datethe set for closing, broker may disburse disburse it according to directed a court or the listing firmthe can disburse in not anyrepresent other Buyer manner allowed 381 the earnest money: (1) as by order an attorney who has reviewed transaction and it does or Seller; (2) into a lawsuit the earnestopinion money and Parties to this Offer; as directed how by court or (4) the by382law. If aacourt firmhearing has to seekinvolving an attorney’s oralljoin a lawsuit to (3) determine toorder; disburse 383 any other disbursement required allowedup by law. Broker from may retain services to directto disbursement (1) or to file an earnest money, the firm can or deduct to $250 the legal earnest money cover anypercosts associated 384 interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to with those actions. If a firm had to use one of the four options to determine how to disburse the earnest 385 exceed $250, prior to disbursement. money, the firm then must notify the parties at least 30 days before actually disbursing the money. 386 ■ LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties in 387 relation to this by Offer. or Seller's right to earnest cannot be determined broker. At leastmoney. 30 days prior to Disbursement a Buyer's firm does notlegal determine the money parties’ legal rights tobythe earnest If parties 388 disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or disagree with how the firm disbursed the money, the parties retain the right to file an action regarding 389 Seller disagree with broker's proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. the earnest money. Importantly, lines 392-394 inform the parties that the firm shall be held harmless 390 Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4 from any liability good faith disbursement to one the four options presented 391 dwelling units andfor certain other earnest money disputes.according Buyer and Seller shouldofconsider consulting attorneys regardingfor theirfirms. 392 legal rights under thishear Offer in case ofinvolving a dispute. Both Parties agree toofhold the broker harmless fromresidential any liability fortransactions. good faith Small claims courts cases disbursement earnest money from 393 disbursement of earnest money in accordance with this Offer or applicable Department of Regulation and Licensing Lines 395-409 Inspections and See Testing 394 regulations concerning earnest money. Wis. Admin. Code Ch. RL 18. 395 INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies are included as a part of 396 this Offer. An “inspection” is defined as an observation of the Property which does not include an appraisal or testing of the 397 Property, other than testing for leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, 398 which are hereby authorized. A “test” is defined as the taking of samples of materials such as soils, water, air or building 399 materials from the Property and the laboratory or other analysis of these materials. Seller agrees to allow Buyer’s inspectors, 400 testers and appraisers reasonable access to the Property upon advance notice, if necessary to satisfy the contingencies in 401 this Offer. Buyer and licensees may be present at all inspections and testing. Except as otherwise provided, Seller’s 402 authorization for inspections does not authorize Buyer to conduct testing of the Property. 403 NOTE: Any contingency authorizing testing should specify the areas of the Property to be tested, the purpose of the 404 test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other 405 material terms of the contingency. 406 Buyer agrees to promptly restore the Property to its original condition after Buyer’s inspections and testing are completed 407 unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. 408 Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported 409 to the Wisconsin Department of Natural Resources. 360 361

A buyer does not automatically have the right to inspect or test a property for any condition but must include those provisions separately as contingencies to the offer. Lines 395-409 define inspections and testing so that buyers will know what contingencies they must include to address their concerns. An inspection is limited to an observation of the property. It does not include appraisals or testing of the property except testing for leaking carbon monoxide, liquid propane, or natural gas used as a fuel source. Lines 398-399 define a test as taking samples of materials for analysis. If a buyer includes inspection or testing contingencies in an offer, a seller agrees to permit access to the property with advance notice from the buyer and the buyer agrees to restore the property to its original condition and to provide the seller with copies of any inspection or testing reports. Buyers and licensees can be present for inspections and testing of the property. The note at lines 403-405 instructs a buyer to draft testing contingencies specifically and to include the areas subject to testing, the purpose of the test, and any limitations on the buyer’s ability to test the property. Buyers should also be sure to include responsibility for testing costs, deadlines for completion, and what effect the results will have on the offer.

152

Offers to Purchase - 10

Lines 410-433 Inspection Contingency Property Address: _________________________________________________________________________________________________________Page 9 of 9, WB-11 INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). This Offer is contingent upon a Wisconsin registered home inspector performing a home inspection of the Property which discloses 412 no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party 413 performing an inspection of _____________________________________________________________________________ 414 _____________________________________________ (list any Property component(s) to be separately inspected, e.g., 415 swimming pool, roof, foundation, chimney, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be 416 responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting 417 from an authorized inspection, provided they occur prior to the deadline specified at line 421. Inspection(s) shall be performed 418 by a qualified independent inspector or independent qualified third party. 419 CAUTION: Buyer should provide sufficient time for the home inspection and/or any specialized inspection(s), as well 420 as any follow-up inspection(s). 421 This contingency shall be deemed satisfied unless Buyer, within ________ days of acceptance, delivers to Seller a copy of the 422 written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice 423 of Defects). 424 CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. 425 For the purposes of this contingency, Defects (see lines 182-184) do not include structural, mechanical or other conditions the 426 nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. 427 ■ RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE (“shall” if neither is stricken) have a right to cure the Defects. If 428 Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of 429 Buyer's delivery of the Notice of Defects stating Seller’s election to cure Defects; (2) curing the Defects in a good and 430 workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This 431 Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) 432 Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure 433 or (b) Seller does not timely deliver the written notice of election to cure. 434 ADDENDA: The attached __________________________________________________ is/are made part of this Offer. The inspection contingency in the offer is for a buyer to have a home inspection. It does not authorize 435 ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ additional testing of the property and a buyer must address additional tests using testing contingencies. 436 ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ A 437Wisconsin registered home inspector performs the home inspection and a buyer can include 438 ____________________________________________________________________________________________________ additional inspections of specific property components on lines 413-414. If an authorized inspection 439 ____________________________________________________________________________________________________ report includes recommendations for follow-up inspections, a buyer can order the follow-up inspections 440 ____________________________________________________________________________________________________ as441long as they occur prior to the deadlines on line 421. ____________________________________________________________________________________________________ 442 ____________________________________________________________________________________________________ If an inspection reveals defects, buyers can choose to try to amend the offer or provide a notice of 410 411

443 This Offer wasseller. drafted by [Licensee for and the Firm] purposes _______________________________________________________________ defects to the Defects, of the inspection contingency, do not include defects that the buyer knew about through disclosure on the seller’s real estate condition report or some 444 _____________________________________________________________ on _______________________________ _____.other method. If a buyer does not provide a notice of defects to the seller by the deadline on line 421, this 445 (x) _________________________________________________________________________________________________ contingency is satisfied. A licensee drafting an offer must pay careful attention to the timing of a buyer’s 446 Buyer’s Signature▲ Print Name Here► Date▲ inspections and any subsequent action including proposing amendments and providing a notice of defects. When deciding on a deadline for performance on line 421, a licensee and buyer must first 447 (x) _________________________________________________________________________________________________ Signature▲ Print Name Here► Date▲ be448sureBuyer’s to make the deadline long enough for completion of the initial inspections and any follow-up inspections. If an inspection report contains recommendations for additional inspections, and a buyer 449 EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer. fails to provide a notice of defects by the deadline because the buyer was waiting for or trying to 450 ________________________________________________ (By)the _________________________________________ arrange the follow-up inspections, the buyer has Broker waived inspection contingency even if the initial 451 SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER inspection revealed defects or the follow-up inspections did not occur. Additionally, a licensee and 452 SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY a 453 buyer must make sure that the deadline permits enough time to negotiate through amendments if ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS inspection 454 OFFER. reports include defects and provide a notice of defects if negotiation through amendments is unsuccessful or withhold the notice and waive the contingency. 455 456

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

An additional component of the inspection contingency that buyers and licensees must understand is the to cure provision. When including an inspection contingency in an offer, a buyer can choose 457 right (x) _________________________________________________________________________________________________ 458 Seller’s Signature▲ Namedefects. Here► Date▲triggers the to give a seller a rightPrint to cure By providing a notice of defects to a seller, a buyer seller’s to cure thetodefects the buyer gave_____________________________________________________ the seller that right in the offer. If a buyer did not give 459 This right Offer was presented Seller by if [Licensee and Firm] a 460 seller a right to cure, providing a notice of defects to the seller makes the offer null and void so if a __________________________________________ on __________________________ at ________________ a.m./p.m. buyer does not want to void the offer, the buyer might first try to amend the offer before voiding it with This Offer is rejectedto _____________ Offerais seller countered counter] _________ a 461 notice of defects the seller. If_________ a buyerThis gives a [See rightattached to cure, the _____________ seller can choose to cure 462

Seller Initials▲

Date▲

Seller Initials▲

Date▲

153

REAL ESTATE SALES

the defects or can choose not to cure the defects and let the offer become null and void. If a seller has a right to cure and chooses to cure, the seller agrees to cure the defects in a good and workmanlike manner and deliver a report of the work done within 3 days prior to closing. A seller who receives a notice of defects and chooses to cure must provide a notice to the buyer indicating the seller’s election to cure. The seller must provide this notice within 10 days of receiving the buyer’s notice of defects. A Property Address: _________________________________________________________________________________________________________Page 9 of 9, WB-11 notice of defects to a seller must always be accompanied by the inspection report. Even if an inspection 410 INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). This report 411 does not reveal defects or a buyer chooses not toperforming give notice toinspection the seller, buyer must Property _________________________________________________________________________________________________________Page 9discloses of 9, WB-11 Offer isAddress: contingent upon a Wisconsin registered home inspector a home of thethe Property which provide the inspection reports to a seller. 410 INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). This 412 no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party 411 is contingent upon a of Wisconsin registered home inspector performing a home inspection of the Property which discloses 413 Offer performing an inspection _____________________________________________________________________________ A buyer writes offer_________________________________________________________________________________________________________Page on a property containing an inspection contingency that does not give the seller the right to cure. Propertyan Address: 9 of 9, WB-11 412 Defects. This Offer is further contingent upon a qualified inspector or to independent qualified third party 414 no _____________________________________________ (list anyindependent Property component(s) be separately inspected, e.g., 410 INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). The buyer’s inspection reveals defects in the basement walls with repairs estimated at $5,000. The buyer likes This 413 an report inspection of _____________________________________________________________________________ 415 performing swimming pool, roof, foundation, chimney, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be 411 Offer is contingent upon a Wisconsin registered home inspector performing a home inspection of the Property which discloses the property andAddress: is reluctant to issue a notice of defects. Because the doescomponent(s) not have the right cure, if theinspected, buyer _________________________________________________________________________________________________________Page 9 ofresulting 9, WB-11 414 _____________________________________________ (listfollow-up anyseller Property to beto separately e.g., 416 Property responsible for all costs of inspection(s). Buyer may have inspections recommended in a written report 412 no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing lines 395-409). 415 swimming pool, roof, foundation, chimney, etc.) which no Defects. Buyer shall order (see the to inspection(s) andThis be issues410 a notice of defects to the seller, it will make offer null and The buyer issues amendment the offer to 417 from an authorized inspection, provided theythe occur prior todiscloses thevoid. deadline specified at linean 421. Inspection(s) shall be performed 413 performing an inspection of _____________________________________________________________________________ 411 is contingent aofWisconsin registered home inspector performing a amendment homerecommended inspection of the which 416 responsible for all upon costs inspection(s). Buyer may have follow-up inspections in Property aback written reportdiscloses resulting 418 Offer by a qualified independent inspector or independent qualified third party. purchase proposing a $5,000 reduction in the offered price. The seller receives the and sends a different 414 _____________________________________________ (list any Property component(s) to be separately inspected, e.g., 412 Defects. This Offer is provide further contingent uponprior a qualified independent inspector orspecialized independent qualified 417 from an authorized inspection, provided they occur to the deadline specified at line Inspection(s) shall bethird performed 419 no CAUTION: Buyer should sufficient time for the home inspection and/or any421. inspection(s), asparty well amendment reducing theinspection offer price by $400. The buyer’s deadline on line is approaching the the buyer decides toand 415 swimming pool, roof, foundation, chimney, etc.) which discloses no421 Defects. Buyer shalland order inspection(s) be 413 anindependent ofinspector _____________________________________________________________________________ 420 performing as aany follow-up inspection(s). 418 by qualified or independent qualified third party. responsible for making allshall costs inspection(s). Buyer may follow-up inspections in a written report resulting give a 416 notice defects theofdeemed offer null and void. 421 Thisofcontingency be satisfied unless Buyer, within ________ days of recommended acceptance, delivers to Seller a copy the 419 CAUTION: Buyer should provide sufficient time forhave the home inspection and/or any specialized inspection(s), asofe.g., well 414 _____________________________________________ (list any Property component(s) to be separately inspected,

from aninspection authorized inspection, they occur prior the deadline specified at line 421. Inspection(s) shallobjects be performed written report(s) andprovided a written notice listing thetodiscloses Defect(s) identified in those report(s) to which Buyer (Notice as any follow-up inspection(s). swimming pool, roof, foundation, chimney, etc.) which no Defects. Buyer shall order the inspection(s) and be by a qualified independent inspector or independent qualified third party. of Defects). This contingency shall be deemed satisfied unless Buyer, within ________ days of acceptance, delivers to Seller a copy of the responsible foronalla costs of inspection(s). Buyer may have follow-upthat inspections recommended in cure. a written report resulting A buyer writes an offer property containing an inspection contingency gives the seller a right to The buyer’s CAUTION: Buyer shouldamendment provide sufficient forof the home and inspection and/or any specialized inspection(s), as well CAUTION: A proposed is they not a time Notice Defects will notin satisfy this notice requirement. written report(s) and a written notice listing the Defect(s) identified those report(s) to which Buyer objects (Notice aninspection authorized inspection, prior to the deadline specified at line 421. Inspection(s) shall be performed inspectionfrom report reveals problems withprovided the roof withoccur repairs estimated atdo$5000. The structural, buyer issues a noticeorofother defects to as any follow-up inspection(s). For the purposes of this contingency, Defects (see lines 182-184) not include mechanical conditions the of Defects). by a qualified independent inspector or independent qualified third party. days of acceptance, delivers to Seller a copy of the contingency shall be deemed satisfied unless Buyer, within ________ nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. the seller.This The seller delivers a notice indicating that the seller does not elect to cure. The offer is now null and void. If the CAUTION: Buyer report(s) should provide sufficient time forthe theDefect(s) home inspection and/or any specialized inspection(s), as well written inspection and a written notice listing in those toa which objects (Notice ■ RIGHT TOtoCURE: Seller (shall)(shall not) seller STRIKE ONE ifnot neither is stricken) right or to the Defects. If For purposes this contingency, Defects (see lines 182-184) doidentified include structural, mechanical other conditions the seller issued athe notice theof buyer indicating that the elected to(“shall” cure, the seller has to report(s) curehave the defects inBuyer acure good and as any follow-up inspection(s). of Defects). Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. This contingency shall beamendment satisfied unless Buyer, within ________ days ofprior acceptance, delivers to Seller a copy of the workmanlike manner provide adeemed report to the buyer detailing theelection work done 3not days to and the parties CAUTION: Aand proposed is not a STRIKE Notice ofONE Defects and satisfy this notice requirement. Buyer's delivery of the Notice Defects stating Seller’s cure Defects; (2)closing curing the intheacan good and ■ RIGHT TO CURE: Seller (shall)(shall not) (“shall” iftowill neither isthose stricken) have rightDefects to cure Defects. If written inspection report(s) and aofwritten notice listing the182-184) Defect(s) identified in report(s) toa which Buyer objects (Notice For the purposes of this contingency, Defects (see lines do not include structural, mechanical or other conditions the proceed toof closing. workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Defects). nature and extent ofand which Buyer actual stating knowledge or written notice before signingand thiswritten Offer. inspection Offer shall be nullof if Buyer makes delivery of theand Notice of report(s) and:and (1) Buyer's delivery the void Notice ofhad Defects Seller’s election to cure Defects; (2) curing the Defects in a good CAUTION: A proposed amendment is not atimely Notice ofONE Defects notDefects satisfy this notice requirement. ■workmanlike RIGHT TO CURE: Seller (shall)(shall not) STRIKE (“shall” if will neither is stricken) have anotice right toprior cure the Defects. If Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written that Seller will not cure manner; and (3) delivering to Buyer a written report detailing the work done within 3 days to closing. This thehas purposes of this contingency, Defects (see 182-184) by: do not structural, mechanical or other conditions Line 434For Addenda Seller the right totimely cure, Seller may satisfy thislines contingency (1) include delivering written notice inspection to Buyer within 10 and: daysthe of or (b) Seller does not deliver the written notice of election to cure. Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written report(s) (1) nature and extentofof the which Buyerofhad actualstating knowledge or written notice before signing (2) thiscuring Offer. the Defects in a good and Buyer's delivery Notice Defects election to (a) cure Defects; Seller does not have aSeller right to cure or (2)not) Seller hasSeller’s a right to cure but: Seller delivers written noticemade thatcure Seller not cure ADDENDA: The attached __________________________________________________ is/are partthe ofwill this Offer. ■ RIGHT TO CURE: (shall)(shall STRIKE ONE (“shall” if neither is stricken) have Defects. workmanlike manner; and (3) delivering to Buyer a written report detailing the work done withina 3right daystoprior to closing. ThisIf or (b) Seller does nottotimely deliver the written notice of election toby: cure. ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ Seller has the right cure, Seller may satisfy this contingency (1) delivering written notice to Buyer within 10 days of Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and writtenis/are inspection and: (1) Lines 435-442 Additional Provisions ADDENDA: attached made report(s) part this Offer. ____________________________________________________________________________________________________ Buyer's delivery ofThe the Notice of__________________________________________________ Defects stating Seller’s election to (a) cure Defects; (2)written curingnotice the Defects in of awill good and Seller does not have a right to cure or (2) Seller has a right to cure but: Seller delivers that Seller not cure ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ ____________________________________________________________________________________________________ workmanlike manner; and (3) delivering to Buyer a written report the work done within 3 days prior to closing. This or (b) Seller does not timely deliver the written notice of election to detailing cure. ____________________________________________________________________________________________________ Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) ADDENDA: The attached __________________________________________________ is/are made part of this Offer. ____________________________________________________________________________________________________ Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ or (b) Seller does not timely deliver the written notice of election to cure. ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ADDENDA: The attached __________________________________________________ is/are made part of this Offer. ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ This Offer was drafted by [Licensee and Firm] _______________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________________________________ on ____________________________________. This Offer was drafted by [Licensee and Firm] _______________________________________________________________ ____________________________________________________________________________________________________ Lines 443-448 Signatures ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ (x) _________________________________________________________________________________________________ _____________________________________________________________ on ____________________________________. 441 443 ThisBuyer’s Offer was drafted by [Licensee and Firm] _______________________________________________________________ 446 ____________________________________________________________________________________________________ Signature▲ Print Name Here► Date▲ 445 ____________________________________________________________________________________________________ (x) _________________________________________________________________________________________________ 442 444 on _______________________________ 447 _____________________________________________________________ (x) Buyer’s _________________________________________________________________________________________________ 446 Signature▲ Print Name Here► Date▲ _____. 443 This Offer was drafted by [Licensee and Firm] _______________________________________________________________ 448 Buyer’s Signature▲ Print Name Here► Date▲ 445 447 (x) (x) _________________________________________________________________________________________________ _________________________________________________________________________________________________ 444 _____________________________________________________________ on ____________________________________. 446 Buyer’s Print Here► Date▲ 448 Buyer’s Signature▲ Signature▲ Print Name Name Here► 449 EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer.Date▲ 445 (x) _________________________________________________________________________________________________ 447 _________________________________________________________________________________________________ 450 (x) ________________________________________________ Broker (By) _________________________________________ 449 EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer. 446 Buyer’s Signature▲ Print Name Here► Date▲ 448 Buyer’sACCEPTS Signature▲ Print Name Here► 451 SELLER THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE INDate▲ THIS OFFER 450 ________________________________________________ Broker (By) _________________________________________ 452 (x) SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY 447 _________________________________________________________________________________________________ 451 ACCEPTS THIS OFFER. THE REPRESENTATIONS COVENANTS MADE THISOF OFFER 449 EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest asAND per line 10RECEIPT of the above 453 SELLER ON THE TERMS AND CONDITIONS ASWARRANTIES, SET FORTH HEREIN AND money ACKNOWLEDGES OFOffer. A IN COPY THIS Buyer’s Signature▲ Print Name Here► Date▲ Lines 448 449-450 Earnest Receipt 452 SURVIVE CLOSINGMoney AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY 454 OFFER. 450 ________________________________________________ Broker (By) _________________________________________ 453 ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS 449 EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money asAND per line 10 of the above Offer. 451 SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS COVENANTS MADE IN THIS OFFER 455 OFFER. (x) _________________________________________________________________________________________________ 454 452 SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY 450 Broker (By) _________________________________________ 456 ________________________________________________ Seller’s Signature▲ Print Name Here► Date▲ 453 THE TERMS AND CONDITIONS ASWARRANTIES, SET FORTH HEREIN AND ACKNOWLEDGES RECEIPTMADE OF A IN COPY THIS 455 ON (x) _________________________________________________________________________________________________ 451 SELLER ACCEPTS THIS OFFER. THE REPRESENTATIONS AND COVENANTS THISOF OFFER 454 OFFER. 457 (x) _________________________________________________________________________________________________ When 452 a SURVIVE buyer submits an offer with earnest money, the licensee drafting the TO offer acknowledges 456 Seller’s Signature▲ Print Name Here► Date▲ CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES CONVEY THE PROPERTY 458 Seller’s Signature▲ Print Name Here► Date▲ ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS receipt453 of the earnest money on lines 449-450. 455 (x) 457 OFFER. (x) _________________________________________________________________________________________________ _________________________________________________________________________________________________ 454 459 This Offer was presented to Seller by [Licensee and Firm] _____________________________________________________ 456 Seller’s Date▲ 458 Seller’s Signature▲ Signature▲ Print Print Name Name Here► Here► Date▲ 455 (x) _________________________________________________________________________________________________ 460 This __________________________________________ on __________________________ at ________________ a.m./p.m. 459 Offer was presented to Seller by [Licensee and Firm] _____________________________________________________ 457 (x) _________________________________________________________________________________________________ 456 Seller’s Signature▲ Print Name Here► Date▲ 154 458 Seller’s Signature▲ Print Name Here► Date▲ 461 __________________________________________ This Offer is rejected _____________ _________ ThisonOffer is countered [See attached counter] _____________ ______ ___ 460 __________________________ at ________________ a.m./p.m. 457 459 This_________________________________________________________________________________________________ Offer was presented to Seller by [Licensee 462 (x) Seller Initials▲ Date▲and Firm] _____________________________________________________ Seller Initials▲ Date▲ 417 422 420 415 418 423 421 416 419 424 422 417 420 425 423 418 421 426 424 419 422 427 425 420 423 428 426 421 424 429 427 422 425 430 428 423 426 431 429 424 427 432 430 425 428 433 431 426 429 432 434 427 430 433 435 428 431 434 436 429 432 435 437 430 433 436 431 438 434 437 432 439 435 433 438 440 436 434 439 441 437 435 440 442 438 436 441 443 439 437 442 440 438 444 443 441 439 442 440 445 444

445 446

(x) _________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

448

Offers to Purchase - 10 (x) _________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

449

EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer.

447

Lines 451-462 Presented, Accept, Reject, Counter

________________________________________________ Broker (By) _________________________________________ ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER 452 SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY 453 ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS 454 OFFER. 450

451 SELLER

455 456

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

458

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

459

This Offer was presented to Seller by [Licensee and Firm] _____________________________________________________

460

__________________________________________ on __________________________ at ________________ a.m./p.m.

461

This Offer is rejected _____________ _________ This Offer is countered [See attached counter] _____________ _________ Seller Initials▲ Date▲ Seller Initials▲ Date▲

457

462

Lines 451-462 provide spaces for a seller to indicate whether the seller is accepting, rejecting, or making a counter-offer.

WB-14 RESIDENTIAL CONDOMINIUM OFFER TO PURCHASE

The WB-14 Residential Condominium Offer to Purchase and the WB-11 Residential Offer to Purchase are similar in length, format, structure, and content but the WB-14 addresses those aspects of a Approved by the Wisconsin Department of Regulation and Licensing 1 of 9, WB-14 transaction specific to condominiums such as common elements, limited common Page elements, and 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date) condominium associations. This chapter covers the aspects of the condominium offer that differ from WB-14 RESIDENTIAL CONDOMINIUM OFFER TO PURCHASE the residential offer. 1

LICENSEE DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER)

3

GENERAL PROVISIONS The Buyer, __________________________________________________________________________ ______ _______________________, offers to purchase the Property known as [Street Address] _______________________________________ in the _____________________ of ______________________, County of ____________________, Wisconsin, particularly described as Unit: _______ (Building ____________) of _______________________________________________________________ Condominium (Insert additional description, if any, at lines 174-188 or 514-519 or attach as an addendum per line 513), on the following terms: * PURCHASE PRICE: ________________________________________________________ Dollars ($_________________________). * EARNEST MONEY of $ ________________________ accompanies this Offer and earnest money of $ _______________________ will be mailed, or commercially or personally delivered within _____________________________ days of acceptance to listing broker or _____________________________________________________________________________________________________________. * THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. * INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price: (1) the Property; (
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" !"

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Elements and Limited Common Elements (see lines 75-80 and 327-332) appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set forth in the Condominium Declaration and plat (and all amendments thereto); (
 )!
interests in any common surplus and reserves in the Condominium allocated to the Property; (4) all Fixtures on the Property on the date of this Offer not excluded at lines 20-21; and (5) the following additional items:_______________________________________________ _____________________________________________________________________________________________________________ ___. __________________________________________________________________________________________________________ * NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________________ __ ___________________________________________________________________________________________________________ __. CAUTION: Identify Fixtures that are on the Property (see lines 317-324) to be excluded by Seller or which are rented and will continue to be owned by the lessor. * STORAGE UNIT: A storage unit (is) (is not) SSTRIKE ONEE included in the purchase price. Storage unit number: ________________. * PARKING: The parking for the Unit is ______________________________________. The parking fee is $______________________. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included/excluded. __ * ASSOCIATION FEE: The Association fee for the Property is $_______________________________ per______________________. * OTHER FEES: The Association may charge other fees at, or subsequent to, closing which may include storage, Additional Association, reserves, start-up, administrative, etc. fees. NOTE: Buyer is advised to review the Condominium disclosure materials including, but not limited to, current financial disclosure statements and other Condominium materials described on lines 204-234, as relevant. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or before ________________________________________________________________________. Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer. (See Acceptance information at lines 61-64.) CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (
) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH A
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PART OF THIS OFFER IF MARKED 'N/A( OR ARE LEFT 155 BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 41-58.

Lines 3-31 General Provisions 2 (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) SSTRIKE THOSE NOT APPLICABLEE 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

()!(-*-'.(financing contingency, if after review of the loan commitment Buyer has directed, in writing, delivery of the loan %##!)#$) *-'.( ,'!))$ !')!%$ ( "" %#&$- )  "%$ %##!)#$) "!+'- ( "" $%) ()!(- ) !( %$)!$$- ! 271 accompanied by a notice of unacceptability. 272 CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. REAL ESTATE SALES 273   .                274    .      BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF 275 UNACCEPTABILITY. 276 / SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment, Seller may terminate this Offer if Seller This section differs from the prior WB-11 in Actual the description the property and items included in 277 delivers a written noticeslightly of termination to Buyer to Seller's Receipt of a copyof of Buyer's written loan commitment. / FINANCING UNAVAILABILITY: If financingof is not on theincludes terms statedain space this Offer (and Buyer has not already an the the278purchase price. The description theavailable property for identification of delivered the unit, 279 acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of building, and the name of the condominium. Items included in the purchase price include the property, 280 lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have the281seller’s interest thewritten common and the limited common elements. 10 days to deliver to in Buyer notice of elements, Seller's decision to finance this transaction on the same terms set The forth inseller’s this Offer, interest and this is Page 2 of 9, WB-14 282 Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall subject to the rights, interests, obligations, and limitations as set forth in the condominium declaration 283 PERSONAL be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate tonamed determine Buyer's creditconstitutes worthiness 59 DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any Buyer or Seller and plat. Afinancing. seller also includes the seller’s interest in any common surplus and reserves in the 284personal for Sellerdelivery 60 to, or Actual Receipt by, all Buyers or Sellers. Condominium. Lines 24-28 of when the all general provisions provide a buyer withorinstitution an opportunity tocopies identify if 285 / IF THIS OFFER IS NOT CONTINGENT ONBuyers FINANCING: Within 7 days of acceptance, a financial orbut third party in control 61 ACCEPTANCE Acceptance occurs and Sellers have signed one copy of the Offer, separate identical ofof 286the (,%0&
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ADDITIONAL ASSOCIATION: Refers to any community, neighborhood, subdivision, master or umbrella association with the power to 297 termination. 310 one or orassessments more parcelsonofthe realProperty estate. owner. The owner declares his or her property to be a Condominium. The Declaration divides the 74 from levy fees 298 CAUTION: An &&'!(" - *-'.( #- $%)  '!+ *$)!" ( %')"- %' %$(!' ' 311 into Units, which are %'' individually owned, and"$' the Common Elements, which!&%0
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99 m. Defects in mechanical equipment included in the sale either asgarage Fixtures or 322 attached or fitted floor coverings; awnings; door openersproperty. and remote controls; 335 or more cubicles of air at one or more levels ofattached space orantennas; one or more rooms orpersonal enclosed spaces located on oneinstalled or more security floors, orsystems; parts 100 n.central Boundary or systems lot line disputes, encroachments or encumbrances (including a joint driveway). 323thereof, vacuum and#
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 p. Presence of asbestos or asbestos-containing materials on the premises. 328 identified in a declaration or on a condominium plat as reserved for the exclusive use of one or more but less than all of th

!% 341 PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, Unit, building or room dimensions, or total acreage oron 106 q. Defect caused by unsafe concentrations of,Element, unsafe conditions relating to, or the storage hazardous or toxic substances 329 A Unit owner does notfootage own a Limited except interest in theof,Common Elements, but is the only oneand Lines 68-82 definitions for to association, additional association, common elements, 342 or Unitinclude square figures, Common provided Buyer by Sellerfororthe by percentage a broker, may be approximate because of rounding, formulas 107 building neighboring properties. 330 who may use it, either alone or with others (but not all Unit owners). This exclusive use may be subject to restrictions stated in the 108 r. Current or previous termite, powder-post beetle or carpenter ant infestations or Defects caused by animal or other insect infestations. 343 used or other reasons, unless verified by survey or other means. condominium. 308-312 have the definition for declaration, lines 327-332 the definition 331 Declaration or Lines Condominium rules. Limited Common Elements may include a storage area, patio, balcony,have garage parking space or a for 109 CAUTION: s. DefectsBuyer in athe wood burning stove or square fireplace or Defects causedtotal by asquare fire in a footage/acreage stove or fireplace or elsewhere thebuilding, Property. 344 should verify total footage formula, figures, and on land, Unit or 332 boat slip. limited common elements, and lines 334-340 have the definition for unit. 110 room t. Remodeling affecting the Property's structure or mecha!
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Lines Property Condition Representations 112 Federal, state, or§local regulations requiring repairs, alterationssame or corrections ofasanofexisting condition. ____Page Property Address: _______________________________________________________________________________________________________ of 9, WB-14 347 until the earlier of closing occupancy of Buyer in materially condition the spaces date of located acceptance of this Offer,3floors, except 335v.or more cubicles of airtax ator one or more levels space or onethe or more rooms or enclosed on one or more orfor parts 113 Notice of property increases, other thanofnormal annual increases, or pending property reassessment. 348 ordinary wear and tear. If, prior to closing, the Unit is damaged in an amount of not more than five percent (5%) of the selling price, Seller 336 thereof, in a bui


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% The Unit owner is entitled to exclusive ownership 114 w. Remodeling that may increase Property's assessed value. 129 PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice orand 349 shall be obligated to repair the Unit and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller 337knowledge of or herAffecting Unit. Aassessments. UnitProperty is not necessarily limited to an apartment-like concept and may also be aCommon freestanding house, a 115 x.possession Proposed orhis pending special 130 ofBuyer Conditions the or Transaction (lines 83-127) regard toshall the Unit, Condominium Elements 350 provide withwithin lien land, waivers for purpose all lienable repairs and restoration. Ifwith the damage exceed such sum, Seller shall promptly 338shall structure plus surrounding or land similar to a lot. Units may also include a separate area that is some distance away from the basic 116 y. Property is located a special district, such as a drainage district, that has the authority to impose assessments against 131 and Limited Common Elements, otherand than those identified Seller's at Real Estate Condition Report dated ________________________ 351 Buyer in writingarea. of the damage be in canceled of Buyer. Buyer elect to carry outorthis Offerslip. despite 339notify individual For example, a this UnitOffer may may be defined to includeoption a storage area,Should patio, garage parking space a boat What is 117 the realdwelling property located within the district. 132 ___________________________, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by 352 damage, construction Buyer shall be to the insurance proceeds, if any, to the damage to the Unit, plus a credit towards the 118 z.


 Proposed of aentitled public project that may affect the use of therelating Property. 340such 



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133 reference ICOMPLETE OR STRIKE AS APPLICABLEI andpolicy, ______________________________________________________ 353 price equal to DATE the amount of Seller's deductible on such ifany any. However, if this sale isor financed by a land contract or a or 119 aa. Subdivision homeowners' associations, common co-owned with others, zoning violations nonconforming rights-of341purchase PROPERTY DIMENSIONS AND SURVEYS Buyer areas acknowledges that land, Unit, building or room dimensions, oruses, total acreage 134 120 way, or easements orinsurance another of a part of the by Seller nonowners, than recorded utility easements. 354 mortgage to Seller, any proceeds shall betoProperty held in trust for theor sole ofmay restoring the Unit. 342___________________________________________________________________________________________________________ building Unit square footageuse figures, provided Buyer by by purpose aother broker, be approximate because of rounding, formulas 121 bb. Structure on the Property isverified designated as aIINSERT historic or that part the is in atime historic district. 135 CONDITIONS NOTofALREADY INCLUDED IN THE CONDITIONI IREPORTI 355  PRE-CLOSING WALK-THROUGH Within 3building days prior to closing, at aProperty reasonable pre-approved by Seller or Seller's 343______________________________________ used or other reasons, unless by survey or other means. 122 agent, cc. Any landThis division involving thebe Property, forUnit which required state orCommon local permits had not obtained. 356 Buyer shall have the is right tosubject walksquare through the and anytotal Limited Elements to been determine thatland, therebuilding, has beenUnit no or 136 transaction to closed no later than ______________________________________________________________ 344 CLOSING CAUTION: Buyer should verify total footage formula, square footage/acreage figures, and 123 significant dd. Violation of state local smokeofand monoxide detector laws. Elements, 357 change in ifor the condition thecarbon Unit and any Limited Common exceptotherwise for ordinary wearbyand andinchanges 345____________________________________________at room dimensions, material. 137 the place selected by Seller, unless agreed the tear Parties writing. 124 ee. High voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property. 358 approved by after Buyer, and that anyand defects Seller agreed to cure have been repaired in the agreed to by theofParties. 346Immediately PROPERTY DAMAGE BETWEEN ACCEPTANCE CLOSING Seller shall and maintain the Unit and any Limited Common 138 closing, Buyer Seller shallhas notify theAND Condominium Association, anymanner Additional Association, the transfer.Elements 125 ff. The Property is subject to a mitigation plan required by DNR rules related to county shoreland zoning ordinances that obligates the 359 DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute theOffer Offer 347 OCCUPANCY until the earlier of closing or occupancy of Buyer in materially the same condition as of the date of acceptance of thisinof Offer, except 139 Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided this atto for 126 owner to establish or maintain certain measures related to shoreland conditions, enforceable by the county. copies 360 Buyer's lender, appraisers, title insurance settlement service providers transaction asselling defined by the 348lines ordinary wear tear. If,orprior toaddendum closing,companies theattached Unit is and damaged in anAt amount not more than fivefor percent (5%) of the price, Seller 127 gg. Other Defects affecting the Property. 140 174-188 orand 514-519 in an per any line other 513. time ofofBuyer's occupancy, thethe Unit and any Limited Common 361 Real Settlement Procedures Act (RESPA); andthat financing concession toofmultiple listing service sold 349Elements shallEstate be obligated to repair and restore it to(ii) thereport same condition it wascondition on the day this later than closing, Seller 128 (Definitions Continued onthe page 156 141 (used exclusively byUnit the5) Unit owner) shall be sales in broom swept andofdata free Offer. allNodebris and personal 362 andBuyer (iii) provide listing, sale and financing concession information and data, 350databases; shall provide with lienactive waivers for allpending lienable sale, repairsclosed and restoration. If the damage shall exceed such sum, Sellerand shallrelated promptly 142 property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. Occupancy shall be 363 regarding or assistance, and third party gifts, Should to appraisers researching 351information notify Buyer in writingseller of thecontributions, damage and incentives this Offer may be canceled at option of Buyer. Buyer elect to carrycomparable out this Offersales, despite 143 given subject to tenant's rights, if any. 364 conditionsBuyer and listings, upon inquiry. 352market such damage, shall be entitled to the insurance proceeds, if any, relating to the damage to the Unit, plus a credit towards the 269 270

Offers to Purchase - 10 Property Address: ___________________________________________________________________________________________________________Page 3 of 9, WB-14 Property Address: ___________________________________________________________________________________________________________Page 3 of 9, WB-14 129 129

PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or

133 134

reference ICOMPLETE DATE OR STRIKE AS APPLICABLEI and ______________________________________________________ ___________________________________________________________________________________________________________

This sectionofisConditions almostAffecting identical to theorWB-11 section on property condition representations except that 130 knowledge the Property Transaction (lines 83-127) with regard to the Unit, Condominium Common Elements 130 knowledge of Conditions Affecting the Property or Transaction (lines 83-127) with regard to the Unit, Condominium Common Elements and Limited Common Elements, other than those identified in Seller's Real Estate Conditionand Reportlimited dated ________________________ it 131 includes reference to the unit, condominium common elements, common elements 131 and Limited Common Elements, other than those identified in Seller's Real Estate Condition Report dated ________________________ rather 132 ___________________________, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by 132 ___________________________, which was by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by than just the property referenced inreceived the WB-11. 133 reference ICOMPLETE DATE OR STRIKE AS APPLICABLEI and ______________________________________________________ Address: ___________________________________________________________________________________________________________Page 3 of 9, WB-14 134 Property ___________________________________________________________________________________________________________ Lines 136-138 Closing 135 ______________________________________ IINSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITIONI IREPORTI

135 IINSERT represents CONDITIONS NOT ALREADY INCLUDED IN THE CONDITIONI IREPORTI 129 ______________________________________ PROPERTYThis CONDITION to Buyer that as of the date of acceptance Seller has no notice or 136 CLOSING transactionREPRESENTATIONS is to be closed no laterSeller than ______________________________________________________________ 136 CLOSING This transaction is to be closed no later than ______________________________________________________________ 130 ____________________________________________at knowledge of Conditions Affecting the Property or Transaction (linesselected 83-127)by with regard to the Unit, Condominium Common Elements 137 the place Seller, unless otherwise agreed by the Parties in writing. 137 ____________________________________________at the place selected by Seller, unless otherwise agreed by the Parties in writing. 131 Immediately and Limited Common Elements, other thanshall thosenotify identified in Seller's Real Estate Condition Report datedAssociation, ________________________ 138 after closing, Buyer and Seller the Condominium Association, and any Additional of the transfer. __the Property Address: _______________________________________________________________________________________________________ __Page 3 of 9, WB-14 138 Immediately after closing, Buyer and Sellerwas shall notify the Condominium Association, and Additional Association, 132 ___________________________, received to Buyer signing thisany Offer and which is made a of part oftransfer. this 139 OCCUPANCY Occupancy of the which entire Property shallbybeBuyer givenprior to Buyer at time of closing unless otherwise provided in this Offer Offer by at 139 OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer ator 133 reference ICOMPLETE DATE OR STRIKE AS APPLICABLEI and ______________________________________________________ 129 lines PROPERTY Seller to time Buyerofthat as ofoccupancy, the date ofthe acceptance has noCommon notice 140 174-188 CONDITION or 514-519 orREPRESENTATIONS in an addendum attached perrepresents line 513. At Buyer's Unit and Seller any Limited 140 lines 174-188 or 514-519 Affecting or in an addendum attached per line 513. At time ofwith Buyer's occupancy, the Unit and anyCommon Limited Common 134 ___________________________________________________________________________________________________________ 130 Elements knowledge of Conditions the Property or Transaction 83-127) to theand Unit,free Condominium Elements 141 (used exclusively by the Unit owner) shall be (lines in broom swept regard condition of all debris and personal 141 Elements (used exclusively by the Unit owner) shall be in broom swept condition and free of all debris and personal 135 ______________________________________ IINSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITIONI IREPORTI 131 property and Limited Common Elements, otherbelonging than those in Seller's Realsold Estate Condition dated ________________________ 142 except for personal property to identified current tenants, or that to Buyer or leftReport with Buyer's consent. Occupancy shall be 142 property except for personal property belonging to current tenants, or that sold to Buyerthis or left with Buyer's 136 CLOSING transaction is iftoany. bewhich closed noreceived later than 132 given ___________________________, was by______________________________________________________________ Buyer prior to Buyer signing Offer and which consent. is made aOccupancy part of thisshall Offerbe by 143 subjectThis to tenant's rights, 143 given subject to tenant's rights, if any. 137 the place selected byatSeller, unless otherwise agreed by thevalues: Partiesreal in writing. 133 ____________________________________________at reference DATE STRIKE AS APPLICABLEI andbe ______________________________________________________ 144 CLOSINGICOMPLETE PRORATIONS TheOR following items, if applicable, shall prorated closing, based upon date of closing estate 144 CLOSING PRORATIONS Theand following if applicable, shall be prorated at closing, based upon date of closingofvalues: real estate 138 Immediately closing, Buyer Selleritems, shall notify themunicipal Condominium Association, and any Additional Association, the transfer. 134 taxes, ___________________________________________________________________________________________________________ 145 rents, after prepaid insurance (if assumed), private and charges, property owners association and Condominium Association 145 taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association and Condominium Association 139 OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at 135 ______________________________________ IINSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITIONI IREPORTI ____. 146 standard recurring assessments and fees, fuel and ________________________________________________________________ ____. 146 standard recurring assessments and fees, fuelnoand ________________________________________________________________ 140 lines 174-188 or 514-519 an addendum attached per______________________________________________________________ line 513. At time of Buyer's occupancy, thenot Unit any Limited Common 136 CAUTION: CLOSING This transaction isutility to be closed later than 147 Provide basisor forin charges, fuel and other prorations if date of closing value will beand used. 147 CAUTION: Provide basis for utility charges, fuel and other prorations if date of closing value will not be used. 141 Elements Unit toowner) shallbe in selected broom swept condition and of all by debris and personal 137 Any ____________________________________________at thebe place by Seller, unless otherwise agreed the Parties in writing. 148 income,(used taxes exclusively or expensesby shallthe accrue Seller, and prorated at closing, through the day priorfree to closing. 148 Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. 142 property except personal property belonging to current tenants, or FOR thatAssociation, sold to Buyer orPRORATION left with Buyer's consent. Occupancy shall be 138 Real Immediately afterforshall closing, and shall notify Condominium and any Additional Association, of the transfer. 149 estate taxes be Buyer prorated atSeller closing based onthe [CHECK BOX APPLICABLE FORMULA]: 149 Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: 143 subject to tenant's rights, any. 139 given OCCUPANCY Occupancy ofifthe entire Property be given to Buyer time of closing unless(Net otherwise provided in this Offer 150 The net general real estate taxes for theshall preceding year, or the at current year if available general real estate taxes areat 150 The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are 144 CLOSING PRORATIONS following iftax applicable, shall be At prorated closing, based(NOTE: uponthe date of CHOICE closing real estate 140 lines 174-188 514-519 orThe in an addendum attached per line 513. time ofat Buyer's occupancy, Unit and anyvalues: Limited Common 151 defined asorgeneral property taxes afteritems, state credits and lottery credits are deducted) THIS APPLIES IF NO 151 defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO 145 rents, prepaid insurance (if municipal Association 141 taxes, Elements exclusively byassumed), the Unit private owner)andshall be incharges, broom property swept owners conditionassociation and freeand of Condominium all debris and personal 152 BOX IS(used CHECKED) 152 BOX IS CHECKED) ____. 146 recurring and fees, fuelmill and ________________________________________________________________ 142 standard property except forassessments personal property belonging torate current tenants, or as thatofsold to Buyer or left with Buyer's consent. Occupancy shall be 153 Current assessment times current (current means the date of closing) 153 Current assessment times current mill rate (current means as of the date of closing) 147 Provide basis for utility charges, fuel and other prorations date of closing notassessor be used.in the prior year, or 143 CAUTION: given subject to tenant's rights, if any. 154 Sale price, multiplied by the municipality area-wide percent ofiffair market value value used will by the 154 price, multipliedshall by the municipality area-wide percent of fair market value used by theclosing. assessor in the prior year, or 148 income,Sale taxes or expenses accrue to mill Seller, and be prorated closing, the day prior 144 Any CLOSING PRORATIONS The following items, if rate applicable, shall beatas prorated atthrough closing, based upontodate of closing values: real estate 155 current year if known, multiplied by current (current means of the date of closing) 155 current year ifshall known, multipliedatbyclosing currentbased mill rate (current means as ofAPPLICABLE the date of closing) 149 Real estate taxes be prorated on [CHECK BOX FOR PRORATION FORMULA]: 145 taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association and Condominium Association _____. 156 ______________________________________________________________________________________________ _____. 156 ______________________________________________________________________________________________ 150 The netis general realthat estate taxes the preceding or year the current year and if available (Net general real be estate taxes are __ 146 CAUTION: standard recurring assessments and fees, fuelfor and ________________________________________________________________ __. 157 Buyer informed the actual real estate taxesyear, for the of closing subsequent years may substantially 157 CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially 151 defined as the general property taxes after state tax credits and lottery credits areofdeducted) (NOTE: THISbeCHOICE IF NO 147 different CAUTION: Provide basis forused utility fuel and other if date closing will not used. APPLIES 158 than amount forcharges, proration especially inprorations transactions involving newvalue construction, extensive rehabilitation, 158 different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, 152 IS CHECKED) 148 remodeling Any BOX income, taxes or expenses shall accrueBuyer to Seller, and be prorated at closing, the day prior to closing. 159 or area-wide re-assessment. is encouraged to contact thethrough local assessor regarding possible tax changes. 159 remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. 153 Current assessment times current based millthe rate as of the date ofprior closing) 149 Real estateBuyer taxes and shall be prorated at re-prorate closing on(current [CHECK BOXthrough FOR APPLICABLE PRORATION FORMULA]: 160 Seller agree to real estatemeans taxes, the day to closing based upon the taxes on the actual 160 Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual 154 Sale price, multiplied by municipality percent fairpro-rata marketyear value used shall, by the assessor in of the prior taxes year, or 150 Thethenet general real estate taxes forSeller the area-wide preceding year, the current if Buyer available (Net general real estate are 161 tax bill for year of closing, withthe Buyer and each owing his orofher share. within 5 days receipt, forward 161 tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward 155 current year if bill known, multiplied by address current mill rateagrees (current asatcredits ofclosing. the date of closing) 151 defined asthe general property taxes after state tax credits and lottery areThe deducted) (NOTE: THIS CHOICE APPLIES IF NO 162 a copy of to the forwarding Seller tomeans provide Parties shall re-
  



 
162 a copy ______________________________________________________________________________________________ of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re-
  



 
_____. 156 152 BOX ISofCHECKED) 163 receipt the actual tax bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, 163 receipt of the actual tax bill. that Buyer and Sellerreal agree thistaxes is a post-closing obligation andand is the responsibility of the Parties to complete, 157 Buyer isassessment informed the actual for the closing subsequent years may be substantially 153 CAUTION: times current mill rate (current means as year of theofdate of closing) 164 not the Current responsibility of the real estate brokers inestate this transaction. 164 not the responsibility of the real for estate brokers especially in this transaction. 158 amount used proration in transactions new construction, extensive rehabilitation, 154 different Salethe price, multiplied byisthe municipality percent of beyond fairinvolving market value used by the assessor in rights the prior year, 165 LEASEDthan PROPERTY If Property currently leasedarea-wide and lease(s) extend closing, Seller shall assign Seller's under saidor 165 LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under said 159 remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. 155 current year if known, multiplied by current mill rate (current means as of the date of closing) 166 lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) SSTRIKE 166 lease(s) andBuyer transfer all security and prepaid to Buyer at closing. The terms of the (written) (oral) 160 agreedeposits to re-prorate the realrents estatethereunder taxes, through the day prior to closing based upon the taxes on SSTRIKE the actual _____. 156 ONEE lease(s), ______________________________________________________________________________________________ 167 ifand any,Seller are ______________________________________________________________________________________ 167 ONEE lease(s), ifyear any,of are ______________________________________________________________________________________ 161 tax bill for the closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward 157 ______________________________. CAUTION: Buyer is informed that theInsert actual real estate taxes foratthe year of closing and subsequent may be substantially 168 additional terms, if any, lines 174-188 or 514-519 or attach asyears an addendum per line 513. 168 ______________________________. Insert additional terms,toif any, at lines 174-188 or Parties 514-519shall or attach as an addendum per line 513. 162 a copythan of the billamount to the forwarding Seller closing. The re-
  



 
158 CAUTION: different the used for address proration especially inprovide transactions involving newnow construction, extensive rehabilitation, 169 The Association may have the power toagrees prohibit, limit or at regulate Unit rentals or in the future. 169 CAUTION: The Association may have the power to prohibit, limit or regulate Unit rentals now or in the future. 163 receiptWEATHERIZATION oforthe actual taxre-assessment. bill. Buyer and Seller agree this a post-closing obligation and isWisconsin the responsibility of the Parties toStandards complete, 159 remodeling area-wide Buyer encouraged to contact the local assessor regarding tax changes. 170 RENTAL This transaction (is)is(is not)isSSTRIKE ONEE exempt from Rental possible Weatherization 170 RENTAL WEATHERIZATION This transaction (is) (is not) SSTRIKE ONEE exempt from Wisconsin Rental Weatherization Standards 164 the Buyer responsibility of the real to brokers inreal this estate transaction. 160 (Wis.not agree re-prorate the taxes, through the day prior to closing based uponshall the taxes on the actual 171 Admin. Codeand Ch.Seller Comm 67). Ifestate not exempt, (Buyer) (Seller) SSTRIKE ONEE ( 

  

  
be responsible for 171 (Wis. Admin. Code Ch. Comm 67). If not exempt, (Buyer) (Seller) SSTRIKE ONEE ( 

  

  
shall be responsible for 165 LEASED Property is Wisconsin currently lease(s) extend beyond closing, shall rights under said 161 compliance, tax bill PROPERTY forincluding the year all ofIfclosing, with Buyer andleased Sellerand each owing his orStandards. her pro-rata Buyer shall,assign within 5 days of receipt, forward 172 costs, with Rental Weatherization If share. SellerSeller is responsible for Seller's compliance, Seller shall 172 compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall 166 lease(s) allCompliance security deposits and prepaid rents thereunder to closing. Buyer atThe closing. The terms of the (written) (oral) SSTRIKE 162 provide a copy oftransfer the billofto the forwarding address Seller agrees to provide at Parties shall re-
  



 
173 aand Certificate at closing. 173 provide a Certificate of Compliance at closing. 167 lease(s), any, are 163 ONEE receipt of theifactual tax______________________________________________________________________________________ bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, ___ 174 ADDITIONALPROVISIONS/CONTINGENCIES ____________________________________________________________________ ___ 174 ADDITIONALPROVISIONS/CONTINGENCIES ____________________________________________________________________ 168 ______________________________. Insert additional if any, at lines 174-188 or 514-519 or attach as an addendum per line 513. 164 ________________________________________________________________________________________________________ not the responsibility of the real estate brokers in thisterms, transaction. ___ 175 ___ ___ 175 ________________________________________________________________________________________________________ Page 4 of 9,___ WB-14 169 CAUTION: The Association may have the power to prohibit, limitextend or regulate Unit rentalsSeller nowshall or inassign the future. 165 ________________________________________________________________________________________________________ LEASED PROPERTY If Property is currently leased and lease(s) beyond closing, Seller's rights under said ______ 176 ___ 176 ________________________________________________________________________________________________________ ___ 170 RENTAL WEATHERIZATION This transaction (is) (is not) SSTRIKE ONEE exempt from Wisconsin Rental Weatherization Standards 166 lease(s) and transfer all securityREPORT deposits Wisconsin and prepaidlaw rents thereunder at closing. The terms the (written) SSTRIKE ___ 177 ___ 189 ________________________________________________________________________________________________________ REAL ESTATE CONDITION requires ownerstoofBuyer property which includes 1-4ofdwelling units (oral) to provide buyers ___ 177 ________________________________________________________________________________________________________ ___ 171 (Wis. Code Ch. Comm 67). If not exempt,from (Buyer) SSTRIKE ONEE be responsible for 167 ONEE lease(s), if any, are ______________________________________________________________________________________ 178 ___ 190 ________________________________________________________________________________________________________ with aAdmin. Real Estate Condition Report. Excluded this (Seller) requirement are sales of ( 

  

  
property that has never beenshall inhabited, sales___ exempt ___ 178 ________________________________________________________________________________________________________ ___ 172 compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall 168 ______________________________. Insertbyadditional terms, if any, at fiduciaries lines 174-188 514-519personal or attachrepresentatives as an addendum perhave line 179 ___ ___513. 191 ________________________________________________________________________________________________________ from the real estate transfer fee, and sales certain court-appointed (foror example, who never 179 ________________________________________________________________________________________________________ ______ 173 provide a Certificate of Compliance at
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within the 10 days may, within 2 business days after ______ 182 ________________________________________________________________________________________________________ ___ ___ 176 ________________________________________________________________________________________________________ 172 compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall 183 ___ 195 ________________________________________________________________________________________________________ the end of that 10 day period, rescind the contract of sale . . . by delivering a written notice of rescission to the owner or the___ owner's 183 ________________________________________________________________________________________________________ ___ ______ ___ 177 ________________________________________________________________________________________________________ 173 provide a Certificate of Compliance at closing. ___ 184 ___ of 196 ________________________________________________________________________________________________________ !&,3
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'ndition Report disclosing defects is furnished before expiration ___ 184 ________________________________________________________________________________________________________ ___ ___ 178 ________________________________________________________________________________________________________ ___ ___ 174 ADDITIONALPROVISIONS/CONTINGENCIES ____________________________________________________________________ ______ 185 197 ________________________________________________________________________________________________________ the 10 days, but after the Offer is submitted to Seller. Buyer should review the report form or consult with an attorney for additional ___ 185 ________________________________________________________________________________________________________ ___ 179 ________________________________________________________________________________________________________ ___ ___ ___ 175 ________________________________________________________________________________________________________ ___ 186 ___ 198 ________________________________________________________________________________________________________ information regarding rescission rights. Wis. Stat. § 709.03 provides that when the Property is a Condominium Unit, the property___ to which ___ 186 ________________________________________________________________________________________________________ ___ ___ 180 ________________________________________________________________________________________________________ ___ ___ 176 ________________________________________________________________________________________________________ ___ 187 ___ 199 ________________________________________________________________________________________________________ the Real Estate Condition Report applies is the Condominium Unit, the Common Elements of the Condominium and any___ Limited ___ 187 ________________________________________________________________________________________________________ ___ ___ 181 ________________________________________________________________________________________________________ ___ ___ 177 ________________________________________________________________________________________________________ ___ ___ 188 ________________________________________________________________________________________________________ ___ 200 Common Elements that may be used only by the owner of the Condominium Unit being transferred. Wis. Stat. § 709.02(2) requires that ___ 188 ________________________________________________________________________________________________________ ___ 182 ________________________________________________________________________________________________________ ___ ___ 178 ___ 201 ________________________________________________________________________________________________________ Seller also furnish a Condominium addendum to the Real Estate Condition Report and a copy of the executive summary along___ with the 183 ________________________________________________________________________________________________________ ___ ___ 179 ___ ___ 202 ________________________________________________________________________________________________________ Real Estate Condition Report.

When a buyer closes on a condominium, the WB-14 states that the buyer and seller shall notify the condominium association and any additional association immediately after closing. Lines 139-143 Occupancy

A buyer receives occupancy to the unit and any limited common elements at the time of closing. Lines 144-146 Closing Prorations

Unlike the WB-11 Residential Offer to Purchase, a buyer and a seller in a condominium transaction prorate property owners association and condominium association standard recurring assessments and fees in addition to the charges prorated in the residential offer to purchase. Lines 165-169 Leased Property

The leased property section of the condominium offer includes a cautionary note to buyers that condominium associations may have the power to prohibit, limit, or regulate a buyer’s power to rent the condominium unit to a tenant now or in the future. Lines 189-202 Real Estate Condition Report

184 180 203 185 181 204 186 182 205 187 183 206 188 184 207 185 208 186 209 187 210 188

________________________________________________________________________________________________________ ___ ___ ________________________________________________________________________________________________________ ___ NOTE: Small Condominiums may not be required to have an executive summary per Wis. Stat. § 703.365(1)(b) and (8). ___ ___ ________________________________________________________________________________________________________ ___ ___ ________________________________________________________________________________________________________ ___ 5 CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide Buyer, within 10 days of acceptance of Offer, but no later than ___ ________________________________________________________________________________________________________ ___ ___ ________________________________________________________________________________________________________ ___ 15 days prior to closing, current and accurate copies of the Condominium disclosure materials required by Wis. Stat. ________________________________________________________________________________________________________ ___ ________________________________________________________________________________________________________ ___be ___ § 703.33. The Condominium disclosure materials include a copy of the following and any amendments to any of these [except as___ may ___ ________________________________________________________________________________________________________ ___ ___ ________________________________________________________________________________________________________ ___ limited for small Condominiums with no more than 12 units per Wis. Stat. § 703.365(1)(b) and (8)]: ______ ________________________________________________________________________________________________________ 157 (a) proposed or existing Declaration, bylaws and any rules or regulations, and an index of the contents; ______ ________________________________________________________________________________________________________ (b) proposed or existing articles of incorporation of the Association, if it is or is to be incorporated; ______ ________________________________________________________________________________________________________ (c) proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all ______ ________________________________________________________________________________________________________

Page 4 of 9, WB-14 189

REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to provide buyers

REAL ESTATE SALES 190 with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been inhabited, sales exempt

from the real estate transfer fee, and sales by certain court-appointed fiduciaries (for example, personal representatives who have never '-(#
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'ndition Report disclosing defects is furnished before expiration of exist in the common elements and limited common elements in addition to conditions affecting 197 the 10 days, but after the Offer is submitted to Seller. Buyer should review the report form or consult with an attorney for additional the 198 information regarding rights. Wis. Stat. 709.03 provides that when the is a Condominium Unit, that the property to which condominium unit. Itrescission also includes the §statutory reference to Property a seller’s requirement a seller furnish 199 the Real Estate Condition Report applies is the Condominium Unit, the Common Elements of the Condominium and any Limited a condominium addendum to the real estate condition report along with an executive summary of the 200 Common Elements that may be used only by the owner of the Condominium Unit being transferred. Wis. Stat. § 709.02(2) requires that condominium disclosure requirements. 201 Seller also furnish a Condominium addendum to the Real Estate Condition Report and a copy of the executive summary along with the 202 Real Estate Condition Report. Lines 204-234 Condominium Disclosure Materials 203 NOTE: Small Condominiums may not be required to have an executive summary per Wis. Stat. § 703.365(1)(b) and (8). 204 5 CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide Buyer, within 10 days of acceptance of Offer, but no later than 205 15 days prior to closing, current and accurate copies of the Condominium disclosure materials required by Wis. Stat. 206 § 703.33. The Condominium disclosure materials include a copy of the following and any amendments to any of these [except as may be 207 limited for small Condominiums with no more than 12 units per Wis. Stat. § 703.365(1)(b) and (8)]: 208 (a) proposed or existing Declaration, bylaws and any rules or regulations, and an index of the contents; 209 (b) proposed or existing articles of incorporation of the Association, if it is or is to be incorporated; 210 (c) proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all 211 or part of the Condominium; 212 (d) projected annual operating budget for the Condominium including reasonable details concerning the estimated monthly payments 213 by the purchaser for assessments and other monthly charges; 214 (e) leases to which Unit owners or the Association will be a party; 215 (f) general description of any contemplated expansion of Condominium including each stage of expansion and the maximum number 216 of Units that can be added to the Condominium; 217 (g) Unit floor plan showing location of Common Elements and other facilities available to Unit owners; 218 (h) the executive summary. 219 
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§ 703.33(4)(b)]. 231 The Parties agree that the 5 busin !  !"     232   " ! 233 NOTE: BUYER SHOULD READ ALL DOCUMENTS CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF 234 THE PROVISIONS OF THE DOCUMENTS BUT ARE PROHIBITED BY LAW FROM GIVING LEGAL ADVICE OR OPINIONS. 5 ADDITIONAL CONDOMINIUM ISSUES: In addition to review of the disclosure materials required to be provided by Wis. Stat. § A 235 seller must provide condominium disclosure materials to a buyer within 10 days of an accepted offer 236 703.33, Buyer may wish to consider reviewing other Condominium materials as may be available, such as copies of: the and no later than 15 days prior to closing. After receiving the ofdocuments, a buyer hasthefive business 237 '&'%#&#-%
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the minutes the last 3 Unit owners4 meetings, minutes of 238 Condominium during buyer the 12 months acceptance, information contemplated or pending Condominium days to rescindboard themeetings offer. The doesprior nottohave to provide a about reason for rescission. If a seller fails special assessments, the Association's certificate of insurance, a statement from the Association indicating the balance of reserve to239 provide these documents, a buyer has five business days to rescind the offer. If the seller fails to 240 accounts controlled by the Association, a statement from the Association of the amount of any unpaid assessments on the Unit (per provide all documents, the Element buyer inspection has fivereports business days to rescind the offer or request the missing 241 Wis. Stat.the § 703.165), any Common (e.g. roof, swimming pool, elevator and parking garage inspections, 242 etc.), any pending litigationrequests involving thethe Association and documents, the Declaration, bylaws, budget has and/orfive mostbusiness recent financial statement of documents. If a buyer missing the seller days to provide 243 any master association or Additional Association the Unit may be part of. Contingencies for review and approval of those additional them. A buyer can then rescind the offer within five business days of the earlier of the buyer’s receipt of 244 materials which may be available may be provided for in additional contingencies per lines 174-188 or 514-519 or in an addendum per the documents thematerials seller’s deadline providing The buyer’s of these 245 missing line 513. Because not all ofor these may exist or be for available from the them. Condominium Association,deadline Seller may for wishall to verify 246 availability prior to acceptance if the Offerofis contingent upon Seller providing these of materials to Buyer. scenarios begins at the earlier the buyer’s actual receipt the materials, the requested missing 191 192

materials, or the seller’s deadline for delivery.

The WB-14 lists the required disclosure materials at lines 208-224. The documents are often numerous and would be too expensive to reproduce for every prospective buyer. Because it would be both expensive and difficult to furnish the documents to all prospective buyers, a seller must furnish them only to buyers from whom the seller accepts offers.

158

225 As provided in Wis. Buyer may, withinProperty; 5 business receipt of all the required 314 impair the health or Stat. safety§ 703.33(4)(a), of future occupants of the or days that ifof not repaired, removed or disclosure replaced documents, would 226 rescind thisshorten Offer byorwritten notice delivered to Seller. If the materials are delivered Buyerassessment and Buyeras does not receive 315 significantly adversely affect the expected normal lifedisclosure of the premises, or could result in a to special a result of a all 316 condition of a Common Element. 227 of the disclo+-*
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§ 703.33(4)(b)]. 320 bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; 311 property into Units, which are individually owned, and the Common Elements, which are owned in common by all of the Unit owners 231 The Parties agree that the 5the busin !  !"     375 The Parties understand that availability of any judicial remedy will depend upon the circumstances of the situation and 321 and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; 312 blinds together. 232   " ! 376 the discretion of the courts. If eitherawnings; Party defaults, the antennas; Parties may renegotiate the Offer or seek nonjudicial resolution of 322 or fitted floor coverings; attached garage door openers and remote controls;dispute installed securityinstead systems; 313 attached DEFECT
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tly 233 NOTE: BUYER SHOULD READ ALL DOCUMENTS CAREFULLY. BROKERS MAY PROVIDE AaGENERAL EXPLANATION OF 377 the remedies outlined By of agreeing bindingsprinkler arbitration, the Parties may lose parts; the right to litigate in court lawreplaced those disputes 323 vacuum systems and accessories; in-ground systems and component built-in appliances; ceilingofor fans; fences; storage 314 central impair the health orabove. safety future to occupants of the Property; or that if not repaired, removed would 234 THE PROVISIONS OF THE DOCUMENTS BUT ARE PROHIBITED BY LAW FROM GIVING LEGAL ADVICE OR OPINIONS. 378 by arbitration agreement. 324 buildings on the permanent and docks/piers on permanent 315 covered significantly shorten or foundations adversely affect the expected normal lifefoundations. of the premises, or could result in a special assessment as a result of a 235 5 ADDITIONAL CONDOMINIUM addition review the disclosure required to be PARTIES provided by Wis. Stat. § 379 IFof ACCEPTED, THIS OFFER CAN InCREATE Ato or LEGALLY ENFORCEABLE CONTRACT. SHOULD 325 CAUTION: Exclude any fixtures toISSUES: be retained by Seller whichofare rented (e.g.,materials water softener orBOTH other water conditioning 316 NOTE: condition a Common Element. 236 703.33, Buyer may wish to consider reviewing other Condominium materials as may be available, such as copies of: the 380 READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE 326 home entertainment and satellite dish components, L.P. tanks, etc.) on lines 20-21. with land or improvements so as 317 systems, FIXTURE: 
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the minutes of not the easily last 3 removable Unit owners4 meetings, the of 327 LIMITED Wis. Stat. § GIVING 703.02(10) provides $&

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381 BUT ARE BYincluding, LAW FROM ADVICE OR that, OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER 318 OFFER be treated asCOMMON part ofPROHIBITED theELEMENTS: real estate, without limitation, physically attached items without damage tominutes the 238 Condominium board during the 12 months prior acceptance, information about orIF Condominium 328 identified initems a declaration or on aSHOULD condominium plat asand reserved for theAN exclusive use as ofSHOULD one or more but less ofpending th

!% 319 THIS premises, specifically adapted to the itemsto customarily treated fixtures, including, butthan notall limited to, all:ADVICE garden 382 OFFER OR HOWmeetings TITLE BEpremises TAKEN AT CLOSING. ATTORNEY BEcontemplated CONSULTED LEGAL 239 special assessments, the insurance, statement from the indicating ofone reserve 329 A Unit owner does notand own aAssociation's Limited Element, except for theaelectric percentage interest in Association the Common Elements, but the onlyrods; 320 IS bulbs; plants; shrubs trees; screenCommon and certificate storm doorsofand windows; lighting fixtures; window shades; curtain the andisbalance traverse 383 NEEDED. 330 who may use it, either alone or with others (but not all Unit owners). This exclusive use may be subject to restrictions stated in the 240 accounts controlled by the Association, a statement from the Association of the amount of any unpaid assessments on the Unit (per 321 blinds and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; 384 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered 331 the floor Condominium rules. Limited Common Elements may include a swimming storage area, patio, balcony, garage parking space or a 241 Wis. Stat.or§or 703.165), any Common Element inspection reports (e.g. roof, pool, elevator and parking garage inspections, 322 Declaration attached fitted coverings; awnings; attached antennas; garage door openers and remote controls; installed security systems; 385 with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone 332 323 boat central vacuum systems and accessories; sprinkler and component parts; built-in and/or appliances; fans; fences; statement storage 242 etc.),slip. any pending litigation involving thein-ground Association andsystems the Declaration, bylaws, budget mostceiling recent financial of 386 at (608) 240-5830. 333 324 buildings on permanent foundations and docks/piers on permanent foundations. 243 anyPROPERTY

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4-7. master association or Additional Association the Unit may be part of. Contingencies for review and approval of those additional 387 CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's property 334 UNIT: Wis. Stat. § 703.02(15) to 
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325 CAUTION: Exclude any fixtures be be retained by for Seller or which contingencies are rented (e.g., softener or or514-519 other water 244 materials which may be available may provided in additional perwater lines 174-188 or inconditioning an addendum per 388 at home _______________________________________________, no later than __________________. Seller accepts a bona fide 335 or of air one moresatellite levels ofdish space or one or enclosed spaces on Ifone or Seller more floors, or parts 326 located systems, entertainment and components, L.P.rooms tanks, etc.) on lines 20-21.located 245 linemore 513.cubicles Because notatall of or these materials may exist or or bemore available from the Condominium Association, may wish to verify 389 secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written waiver of the Closing of 336 in a bui


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246 availability prior to acceptance if the Offer is contingent upon Seller providing these materials to Buyer. 337 possession his Contingency or her or Unit. Unit is not necessarily limited to may a freestanding house, a 390 and________________________________________________________________________________ 328 Buyer's identifiedProperty in aofdeclaration on Aa condominium plat as reserved foran theapartment-like exclusive use concept of one orand more butalso less be than all of th

!% 338 structure plus does surrounding or land similar toElement, a lot. Units mayfor also a separate area thatCommon is some distance basic 329 ________________________________________________________________________________________________________ A Unit owner not ownland, a Limited Common except theinclude percentage interest in the Elements,away but isfrom the the only__ one 391 ___ 339 dwelling area. alone For example, aothers Unit may be defined to owners). include a This storage area, patio, garage parking space or a boatstated slip. What is 330 individual who may use it, either or with (but not all Unit exclusive use may be subject to restrictions in the 392 [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALLI 340 



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 Declaration or the Condominium rules. Limited Common Elements may include a storage area, patio, balcony, garage parking space or a 393 CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within _________ hours of Buyer's Actual 341 PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, Unit, building or room dimensions, or total acreage or 332 boat slip. 394 Receipt of said notice, this Offer shall be null and void. 333 building PROPERTY

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4-7. 342 or Unit square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas 395 OFFER: This is secondary a prior accepted offer. This Offer shall become primary upon delivery of written 334 used UNIT: Wis. reasons, Stat. § 703.02(15)  Offer 
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343 orSECONDARY other unless verified by survey or othertomeans. 396 tocubicles Buyer that thisatOffer is Unless otherwise provided, Seller is not obligatedspaces to give located Buyer notice prior to building, anyfloors, deadline, nor 335 notice or more ofshould air one orprimary. more of space or formula, one or more rooms or enclosed onand one or more or parts 344 CAUTION: Buyer verify totallevels square footage total square footage/acreage figures, land, Unit or 336 is thereof, in a bui


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% The secondary Unit ownerbuyers. is entitled to may exclusive ownership 397 any dimensions, particular secondary buyer given the right be made primary ahead of other Buyer declare this Offer and null 345 room if material. 337 and possession his or her Unit. notice A UnitACCEPTANCE not necessarily limited to to andelivery apartment-like concept freestanding house, a 346 PROPERTY DAMAGE BETWEEN CLOSING Seller of shall maintain theand Unitmay andalso any be Limited Common 398 void by ofdelivering written ofis withdrawal to AND Seller prior Seller's notice that this Offer is aprimary. BuyerElements may not 338 deliver structure plus surrounding land, or land to ainlot. Units include aofseparate area that somedeadlines distance away from the 347 until thenotice earlier closing or occupancy of Buyer materially thealso same condition asOffer. of the date ofis acceptance of this Offer, for 399 ofofwithdrawal earlier thansimilar ___________ days may after acceptance this All other Offer which areexcept runbasic from 339 ordinary individualwear dwelling area. For Unit may to in include a storage area, patio, parking space or aselling boat slip. is 348 andrun tear. If, prior to closing, thebecomes Unitbe is defined damaged an amount of not more thangarage five percent (5%) of the price,What Seller 400 acceptance shall from theexample, time thisaOffer primary. 340 shall 


 



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349 be obligated to repair the Unit and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller 401 TIME IS OF THE ESSENCE -!
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341 shall PROPERTY DIMENSIONS AND SURVEYS Buyerrepairs acknowledges that anyIfland, Unit, building room such dimensions, or total acreage or 350 provide Buyer lien waivers for all lienable and restoration. the damage shall or exceed sum, Seller shall promptly 402 date of or closing; (5)with contingency Deadlines; (6)to delivery ofSeller Condominium disclosure (seebecause lines 204-234) STRIKE AS 342 notify building Unit square footage figures, provided Buyer by or by a broker, mayShould bematerials approximate ofoutrounding, formulas 351 Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Buyer elect to carry this Offer despite 403 APPLICABLE and all other dates and Deadlines in this Offer except: _____________________________________________________ 343 such used or other reasons, unless or other means. 352 damage, Buyer shall beverified entitledbytosurvey the insurance proceeds, if any, relating to the damage to the Unit, plus a credit towards the _____ 404 344 ________________________________________________________________________________________________________ CAUTION:price Buyer should total squaredeductible footage formula, figures, and land, Unit 353 purchase equal to theverify amount of Seller's on such total policy,square if any. footage/acreage However, if this sale is financed by a building, land contract orora 405 

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Deadline, failure to perform by the exact date or 345 mortgage room dimensions, if material. 354 to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Unit. 406 "
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Deadline, then a reasonable 346 D PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Unit andperformance any Limited within Common Elements 355  PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's 347 time until of thethe earlier orisoccupancy of Buyer in materially 407 date of or closing Deadline allowed before a breach occurs. the same condition as of the date of acceptance of this Offer, except for 356 agent, Buyer shall have the right to walk through the Unit and any Limited Common Elements to determine that there has been no 348 ordinary wear and tear. If, condition prior to closing, Unit is damaged in an amountElements, of not moreexcept than five the selling price, Seller 408 TITLE EVIDENCE 357 significant change in the of thethe Unit and any Limited Common for percent ordinary(5%) wearofand tear and changes 349 shall be obligated to repair Unit and restore it to thepurchase same condition that itrepaired was the of this Offer. No later closing, Seller 409 TITLE: Upon payment of the price, Seller shallonconvey the Property byby condominium deed or 358 0
CONVEYANCE approved by Buyer,OF and thatthe any defects Seller has agreed to cure have been in theday manner agreed to thethan Parties. 350 warranty shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly 410 deed or    

          

       359 DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to 351 notify Buyer in writing the clear damage this Offer mayand be canceled atsettlement option of Buyer. Should Buyer to agreements carry outas thisdefined Offer despite 411 herein), freeofand of alland liens and encumbrances, except: municipal and zoning ordinances entered under 360 provided Buyer's lender, appraisers, title insurance companies any other service providers for elect theand transaction by the 352 such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Unit, plus a credit towards the 361 them, Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession to multiple listing service sold 412 recorded easements for the distribution of utility, municipal Association services, data easements for the performance of 353 purchase price equal to the amount of Seller's deductible on such policy, if any. However, if this sale is financed by a land contract or a 362 Condominium databases; andduties, (iii) provide active listing, sale, closed sale and financing concession information and data, and related 413 recorded building andpending use restrictions and covenants, present uses of the Property in violation of the foregoing 354 mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Unit. 363 disc information regarding seller contributions, incentives or assistance, and third party*
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355  PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's 364 Ownership market conditions and listings, upon inquiry.and plat, Association articles of incorporation, bylaws and rules and amendments to the above 415 Act, Condominium Declaration 356 agent, Buyer shall have the right to walk through the Unit and any Limited Common Elements to determine that there has been no 365 and DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this 416 ________________________________________________________________________________________________________ 357 significant change in the condition of the Unit and any Limited Common Elements, except for ordinary wear and tear and changes 366 Offer. A material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability for _____ 417 ________________________________________________________________________________________________________ 358 approved by Buyer, and that any defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. 367 damages or other legal remedies. _____ 418 ________________________________________________________________________________________________________ 359 DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to 368 If Buyer defaults, Seller may: 419 constitutes merchantable title for of earnest this Seller complete execute the or documents necessary to 360 which Buyer's lender, title insurance companies andtransaction. anymoney other as settlement service providers for theprice; transaction as defined by the 369 (1) sue forappraisers, specific performance andpurposes request the partialshall payment of theand purchase 420 &/'
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Lines 235-246 Additional Condominium Issues

This section of the condominium offer suggests additional documents a buyer might want to review during the negotiations. Additional documents include financial statements, minutes from association meetings, insurance certificates, and information related to pending or current assessments. Lines 346-354 Property Damage Between Acceptance and Closing

The rules for a seller’s obligations to repair and a buyer’s right to cancel the offer depending on whether the damage is 5% or more of the purchase price are the same for the residential and condominium offers. The difference between the offers is that the damage calculation in the condominium offer accounts for damage to the unit as well as limited common elements. Lines 355-358 Buyer’s Pre-Closing Walk-Through

A buyer’s pre-closing walk-through permits the buyer to walk through the unit and the limited common elements. 421 362 371

WARNING: Municipal and zoning recorded building and usefinancing restrictions, covenants and easements databases; (iii) provide active ordinances, listing, pending sale, closed sale and concession information and data,may andprohibit related If Sellerand defaults, Buyer may:

422 or uses and therefore should be reviewed, particularly Buyer contemplates making comparable improvements to Lines 424-427 Titleseller Evidence 363 certain information contributions, or assistance, and third party ifgifts, to appraisers researching sales, 372 (1)improvements sueregarding for specific performance; or incentives

terminate thelistings, Offer and the return of the earnest money, sue for actual damages, or both. Property or a useand other than therequest current use. market(2) conditions upon inquiry. Page 8 of 9, WB-14 In addition, Parties seek any other available in an lawand or equity. DEFAULT Sellertheand Buyermay each have the legalremedies good of faith due diligence in completing terms and conditions of this 0
TITLE EVIDENCE: Seller shall give evidence ofduty title to in use the form owner's policy of title insurance the in the amount of the purchase 366 Offer. Aonmaterial to perform obligation under thisofCondominium Offer is atitle default whichshall maybesubject the defaulting party toanliability for 433 price & PROVISION OFfailure MERCHANTABLE TITLE: Forthe purposes closing, evidence if theissued required insurance 425 a current ALTA form any (including ALTA endorsement oracceptable equivalent) bytitle insurer 367 damages other legal remedies. 434 licensed commitment is delivered to Buyer's attorney or shall Buyer less than 5 business days before closing, to the 426 toorwrite title insurance in Wisconsin. Seller paynot all costs of providing title evidence to Buyer. Buyer showing shall pay title all costs of 368 If Buyer defaults, Seller 435 providing Property as a date no moremay: than 15 days"&

before delivery of such title evidence to be merchantable per lines 409-419, subject only to 427 titleofevidence required by Buyer/'
369 (1) suewill forbe specific performance and request theand earnest money partial payment of the purchase price; oras appropriate. 436 0
liens which paid out of proceeds of closing standard titleas insurance requirements and (
 exceptions, 428 GAP ENDORSEMENT
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ISTRIKEIIONEI 370 (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual damages. Lines 424-427 require that title insurance includes the ALTA Condominium endorsement. 437 - &
TITLE NOT ACCEPTABLE FOR CLOSING: If title is for notany acceptable for closing, Buyer shall notify Seller in writing of objections to the title This 429 &/'.

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'(&" cost to provide coverage liens or encumbrances first filed or recorded after the effective date of 371 If Seller defaults, Buyer may: 438 by the time set for closing. In such event, shall have afrom reasonable time, not exceeding 15 condominium days, to remove thedeclaration, objections, 430 commitment and before theSeller deed is recorded, subject to the title but insurance policy exclusions and exceptions, provided and the the endorsement insures against loss or damage defects relating to the 372 title insurance (1) sue for specific performance; or 439 title the time closing shall beendorsement. extended as the purpose. In the that Seller is unable to remove saidgive objections, Buyer 431 company will issue the Ifnecessary a return gapunits, endorsement or money, equivalent gap is not available, Buyer matters. may written notice 373 (2)for terminate the Offer and request offor thethis earnest sueevent for coverage actual damages, or both. percentage interests allocated to the liens, and other condominium related 440 that shalltitle have 5 days from receipt of notice thereof, toremedies deliver written notice waiving the objections, and the time for closing shall be extended 374 In addition, the Parties seek any other available in law or equity. 432 is not acceptable for may closing (see lines 437-442). 441 accordingly. If BuyerCondominium does not waive the objections, this Offer shall be null and void. Providing title evidence acceptable for closing does Line 443 Unpaid Assessments 442 not extinguish Seller's obligations to give merchantable title to Buyer. 443 &
UNPAID CONDOMINIUM ASSESSMENTS: All unpaid assessments shall be paid by Seller no later than closing. 444 & SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, including those by any applicable homeowners or Line 443 statesAssociation, that a seller pay all unpaid condominium than 445 Condominium levied ormust for work actually commenced prior to the date assessments of this Offer shall beno paidlater by Seller no closing. later than 446 closing. All other special assessments shall be paid by Buyer. 447 CAUTION: Consider a special agreement if area assessments, property owners or Condominium Association special 448 assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. 
449    
 
-time charges or ongoing use fees for public improvements (other than those resulting in special 450 assessments) relating to curb, gutter, street, sidewalk, sanitary and stormwater and storm sewer (including all sewer mains 451 and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public 159 452 facilities, as defined in Wis. Stat. § 66.0617(1)(f). 453 EARNEST MONEY 454 &
HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (buyer's agent if 373 423 364 374 365 424

Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 409-419, subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. 437 &
TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title 438 byESTATE the time setSALES for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to remove the objections, and REAL 439 the time for closing shall be extended as necessary for this purpose. In the event that Seller is unable to remove said objections, Buyer 440 shall have 5 days from receipt of notice thereof, to deliver written notice waiving the objections, and the time for closing shall be extended 441 accordingly. If Buyer does not waive the objections, this Offer shall be null and void. Providing title evidence acceptable for closing does 442 not extinguish Seller's obligations to give merchantable title to Buyer. Lines 444-452 Special Assessments/ Other Expenses 443 &
UNPAID CONDOMINIUM ASSESSMENTS: All unpaid assessments shall be paid by Seller no later than closing. 444 & SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, including those by any applicable homeowners or 445 Condominium Association, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than 446 closing. All other special assessments shall be paid by Buyer. 447 CAUTION: Consider a special agreement if area assessments, property owners or Condominium Association special 448 assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. 
449    
 
-time charges or ongoing use fees for public improvements (other than those resulting in special 450 assessments) relating to curb, gutter, street, sidewalk, sanitary and stormwater and storm sewer (including all sewer mains 451 and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public 452 facilities, as defined in Wis. Stat. § 66.0617(1)(f). 453 EARNEST MONEY Like the residential offer, agreed, the condominium allocates special assessments between 454 &
HELD BY: Unless otherwise earnest money shalloffer be paid to and held in the trust account of the listing broker (buyer'sbuyers agent if and 455 Property is not listed or account no broker is involved), applied to the commences purchase price or otherwise as provided in for sellers depending onSeller's when the iflevy occurs anduntil when work with a disbursed seller responsible Approved by the Wisconsin Department of Regulation and Licensing Page 1 of 10, WB-13 456 the Offer. those costs prior to the of Use theDate) offer and a buyer responsible for those after the date of the offer. 03-1-11 (Optional Use Date) 07-1-11date (Mandatory 457 CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or There is a condominium specific caution that buyers to aconsider a special agreement for 458 an attorney. If someone other than Buyer makes payment of informs earnest money, consider special disbursement agreement. WB-13 VACANT LAND OFFER TO PURCHASE contemplated assessments special 459 & DISBURSEMENT: If negotiationsincluding do not resultcondominium in an accepted offer,association the earnest money shall beassessments. promptly disbursed (after clearance 460 from payor's DRAFTING depository institution if earnestON money is paid by check) to the person(s) who paid the earnestISmoney. At closing, earnest 1 LICENSEE THIS OFFER ____________________________________ [DATE] (AGENT OF BUYER) Lines 476-512 Inspections and Testing andIf the Inspection Contingency 461 money shall disbursed according to the closing statement. this Offer does not close, the earnest moneyNOT shallAPPLICABLE be disbursed according 2 (AGENT OFbe SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE These are substantially the offeragreement excepthasthat a buyer include 462 to a sections written disbursement agreement signed by allsame Parties toas this the Offer.residential If said disbursement not been deliveredcan to broker 3 GENERAL PROVISIONS The Buyer, _____________________________________________________________________ 463 within 60 days after the date setor for test closing, broker may disburse the earnest money: (1)in as addition directed byoffers an who hasthe reviewed the contingencies to inspect the limited common elements toattorney the condominium unit. A 4 _________________________________________________________________________, to purchase Property 464 transaction and does not represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parties to this 5 known as [Street Address] _____________________________________________________________________________ seller cannot guarantee access to common elements such as the roof or clubhouse so the inspection 465 Offer; (3) as directed by court order;ofor________________________, (4) any other disbursement required or allowed by law. Broker may retain legalWisconsin services to(Insert direct 6 in the _____________________ County of to ________________________, and testing contingency not include an(2)automatic ability inspect or test these elements. A buyer 466 disbursement per (1) oriftoany, filedoes an interpleader action per and broker as may from the money anyfollowing costs andterms: reasonable 7 additional description, at lines 458-464 or 526-534 or attach andeduct addendum perearnest line 525), on the can always include a specific common element as part of the inspection contingency by indicating 467 attorneys fees, not to exceed $250, prior to disbursement. 8 ■ PURCHASE PRICE: _________________________________________________________________________________ &
LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does notseparate determine thetesting legal rightscontingencies of the Parties in relation this it 468 at line 493 of the inspection contingency and include for to__ common 9 ____________________________________________________________ Dollars ($_____________________________ __). 469 Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement per (1) or 10 ■ EARNEST MONEY $ ____________________accompanies elements if these areofmaterial provisions to a buyer. this Offer and earnest money of $ ____________________ 470 (4) be above, broker shall send Buyer and Seller delivered notice of the disbursement by certified mail. days If Buyer or Seller disagree withbroker broker's 11 will mailed, or commercially or personally within ____________________ of acceptance to listing or 471 proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction 12 ________________________________________________________________________________________________ ___. __over 472 all earnest money disputes arising out of the sale of residential property with 1-4 dwelling units and certain other earnest money disputes. 13 ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. 473 and Seller consider consulting attorneys regarding theirpurchase legal rights under Offer inOffer case ofto a dispute. Both Parties agree The WB-13 Vacant Land Offer toSeller Purchase and the WB-11 Residential Purchase areon similar in 14 ■Buyer INCLUDED INshould PURCHASE PRICE: is including in the price thethis Property, all Fixtures on the Property the 474 to hold the broker harmless from any liability for good faith disbursement of earnest money in accordance with this Offer or applicable 15 date format, of this Offer not excluded at lines 18-19,but and the the following additional items:those ___________________________________ length, structure, and content WB-13 addresses aspects of a transaction specific 475 Department of Regulation and Licensing regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. 16 __________________________________________________________________________________________________ ____ to476 vacant land such as government programs, development concerns, andare zoning. This chapter covers INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies included as a part of this Offer. 17 __________________________________________________________________________________________________ ____ the aspects of the vacant land offer that differ from the residential offer. The WB-13 does not have a 477 
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testing, 18 ■ NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________ 478 otherof than testing forproperty leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, which are hereby closing buyer’s contingency. 19 ________________________________________________________________________________________________ _____. 479 "

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e the 20 CAUTION: Identify Fixtures that are on the Property (see lines 290-294) to be excluded by Seller or which Unit are and rented Lines 22-24 480 laboratory or General other analysis of theseby materials. 



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21 and will continue to be Provisions owned the lessor. 481 Unit and The any Limited notice,contract if necessary satisfy the contingencies this Offer. Buyer licensees 22 NOTE: termsCommon of thisElements Offer, upon not advance the listing or tomarketing materials, indetermine whatand items are 482 may be present at all Annual inspections and are testing.



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23 included/excluded. crops not  part of
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purchase price unless agreed. 483 to conduct testing. 24 ■Buyer ZONING: Seller represents that the Property is zoned: _______________________________________________________. 484 NOTE: Any contingency authorizing testing should specify the areas of the Unit to be tested, the purpose of the test, (e.g., to 25 ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical 485 determine if environmental contaminationitems is present), any limitations Buyer's testing andpurchase any other material of the land The note ofatthe lines included and notonincluded in the price terms of vacant 26 copies Offer.22-23 addresses 486 contingency. !


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27 CAUTION: in theannual Offer arecrops commonly from acceptance. Considerprice whether short the term parties deadlinesagree and informs Deadlines a buyer that are calculated not included in the purchase unless 487 unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. Seller 28 running from acceptance provide adequate time for both binding acceptance and performance. to488 include them. The definition of fixtures includes garden bulbs, plants, shrubs, and trees. This note acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported to the Wisconsin 29 BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on 489 Department of Natural Resources. clarifies that annual crops are not fixtures and the purchase price does not include crops unless the 30 or before _______________________________________________________________. Seller may keep the Property on the parties negotiate separately. Line 24 acceptance addresses zoning 31 market and acceptthis secondary offers after binding of this Offer. and a buyer indicates the property’s zoning 32 CAUTION: This may be withdrawn to delivery of the accepted Offer. classification as Offer represented by the prior seller. 33 OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS Property Address: ________________________________________________________________________________________________________Page 2 of 10, WB-13 Lines 59-62 Occupancy 34 OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF MARKED “N/A” 35 OR ARE LEFT BLANK. 59 OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this 36 DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and 60 Offer at lines 458-464 or 526-534 or in an addendum attached per line 525. At time of Buyer's occupancy, Property shall be 37 written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 38-56. 61 free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left 38 (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if 62 with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. 39 named at line 40 or 41. 63 PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no 40 Seller's recipient for delivery (optional): ________________________________________________________________ ______ 64 notice or knowledge of Conditions Affecting the Property or Transaction (see lines 163-187 and 246-278) other than those The occupancy is(optional): similar ________________________________________________________________ to the WB-11 Residential Offer in that the property must be__free 41 Buyer's recipientsection for delivery ____ of all 65 identified in the Seller's disclosure report dated ________________________________, which was received by Buyer prior to 42 (2) Fax: fax transmission of the document or written notice to thefor following telephone number: debris and personal property but, the vacant land offer, obvious reasons, does not require the seller 66 Buyer signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE Seller: (________) _________________________________ Buyer: (_________) ______________________________ ______ to43 leave the property in broom swept condition. 67 and ________________________________________________________________________________________________ 44 (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a 68 _____________________________________________________________________________________________________ 45 commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 40 or 41, for 69 _______________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE DISCLOSURE REPORT 46 delivery to the Party's delivery address at line 49 or 50. 70 CLOSING This transaction is to be closed no later than ______________________________________________________ 47 (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, 71 _________________________________at the place selected by Seller, unless otherwise agreed by the Parties in writing. 48 or to the Party's recipient for delivery if named at line 40 or 41, for delivery to the Party's delivery address at line 49 or 50. 72 CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: _____ 49 Delivery address for Seller: ___________________________________________________________________________ real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association 1605073 Delivery address for Buyer: _______________________________________________________________________________ 74 assessments, fuel and _________________________________________________________________________________. 51 (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 75 CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. 52 55 or 56. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for 435 436

WB-13 VACANT LAND OFFER TO PURCHASE

assessments, fuel and _________________________________________________________________________________. CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. 76 Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Address: ________________________________________________________________________________________________________Page 2 of 10, WB-13 77 Property Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: Offers to Purchase - 10 78 The net general real estate taxes for the preceding year, or the current year if available (Net general real estate 59 Occupancy of theproperty entire Property shall be tax given to Buyer at timecredits of closing unless otherwise in this 79 OCCUPANCY taxes are defined as general taxes after state credits and lottery are deducted) (NOTE:provided THIS CHOICE 60 at lines 458-464 or 526-534 or in an addendum attached per line 525. At time of Buyer's occupancy, Property shall be 80 Offer APPLIES IF NO BOX IS CHECKED) 61 debris and personal times property except personal belonging to current tenants, or that sold to Buyer or left 81 free of all Current assessment current millfor rate (currentproperty means as of the date of closing) Lines 63-69 Property Condition Representations 62 consent. Occupancy given subject to tenant's rights, any. 82 with Buyer's Sale price, multiplied byshall the be municipality area-wide percent of iffair market value used by the assessor in the prior 63 CONDITION REPRESENTATIONS Sellermill represents to Buyer of the of acceptance Seller has no 83 PROPERTY year, or current year if known, multiplied by current rate (current meansthat as as of the datedate of closing) 64 of Conditions Affecting the Property or Transaction (see lines 163-187 and 246-278) other than those 84 notice or knowledge ____________________________________________________________________________________________. 65 in Buyer the Seller's disclosure report which was received byyears Buyermay prior be to 85 identified CAUTION: is informed that the dated actual________________________________, real estate taxes for the year of closing and subsequent 86 Buyer substantially different than the is amount especiallyCOMPLETE in transactions involving construction, 66 signing this Offer and which made aused part offor thisproration Offer by reference DATE OR STRIKEnew AS APPLICABLE 87 and extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor 67 ________________________________________________________________________________________________ 88 regarding possible tax changes. 68 ________________________________________________________________________________________________ _____ 89 Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on 69 _______________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE DISCLOSURE REPORT 90 the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 70 CLOSING This transaction is to be closed no later than ______________________________________________________ 91 section days of is receipt, forward a copy ofto thethe bill the forwarding Sellerin agrees provide at closing. TheinParties shall to a This almost identical section the toWB-11 except that it refers 71 _________________________________at thetocorresponding place selected byaddress Seller, unless otherwise agreed by the Parties writing. 92 re-prorate within 30 days of following Buyer’s receipt the actual shall tax bill. and Seller agree thisupon is a date post-closing obligation 72 CLOSING PRORATIONS The items, a ifofapplicable, be Buyer prorated atreport. closing, based of closing values: “Seller’s disclosure report” rather than real estate condition Both a condition report and a 93 real and is thetaxes, responsibility of the Parties to complete, not the private responsibility of the real charges, estate brokers in this transaction. 73 estate rents, prepaid insurance (if assumed), and municipal property owners association disclosure serveIf the same purpose andandprovide buyer withclosing, a seller’s of conditions 94 assessments, LEASEDreport PROPERTY Property is currently leased lease(s) a extend beyond Seller declaration shall assign Seller's rights 74 fuel and _________________________________________________________________________________. affecting property transaction. 95 CAUTION: under the said Provide lease(s) basis andortransfer all charges, security deposits and prepaid rents thereunder to Buyer closing. terms of the 75 for utility fuel or other prorations if date of closing value at will not be The used. 76 income, or expenses shall accrue Seller, and be prorated at closing, through the day prior to closing. 96 Any (written) (oral)taxes STRIKE ONE lease(s), if any,to are _________________________________________________________ ______ Lines 98-110 GovernmentInsert Programs 77 estate taxes shall be prorated atadditional closing based [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: 97 Real _______________________. terms,on if any, at lines 458-464 or 526-534 or attach as an addendum per line 525. 78 The net general real estateSeller taxesshall for the preceding year, or the current yearofif acceptance available (Net general 98 GOVERNMENT PROGRAMS: deliver to Buyer, within ________days of this Offer,real a listestate of all 99 federal, county,as and local conservation, other credits land use restrictions, 79 taxesstate, are defined general property taxesfarmland, after stateenvironmental, tax credits andorlottery areprograms, deducted)agreements, (NOTE: THIS CHOICE 100 easements, which apply to any part of the Property (e.g., farmland preservation agreements, farmland 80 or conservation APPLIES IF NO BOX IS CHECKED) 101 or exclusive agricultural zoning,mill use value assessments, Forest Crop, 81 preservation Current assessment times current rate (current means as of the date of Managed closing) Forest, Conservation Reserve 102 wetland zoning mitigation or comparable programs), with disclosure any 82 Program, Sale price,mitigation, multiplied shoreland by the municipality area-wideplan percent of fair market value usedalong by the assessor in theofprior 103 withdrawal charges, or payback obligations pending, currently if any. This contingency will be 83 penalties, year, orfees, current year if known, multiplied by current mill rate (currentor means as ofdeferred, the date of closing) 104 unless Buyer delivers to Seller, within seven (7) days of Buyer’s Actual Receipt of said list and disclosure, or 84 deemed satisfied ____________________________________________________________________________________________. 105 the deadlineBuyer for delivery, whichever is actual earlier, real a notice this year Offerofbased upon use restrictions, 85 CAUTION: is informed that the estateterminating taxes for the closing andthe subsequent years program may be 106 requirements, and/or amount anyamount penalty,used fee, charge, or payback obligation. 86 substantially different thanofthe for proration especially in transactions involving new construction, 107 CAUTION:rehabilitation, If Buyer does remodeling not terminate Offer, Buyer is hereby agreeing Buyer will in such 87 extensive orthis area-wide re-assessment. Buyer is that encouraged to continue contact the localprograms, assessor 108 as may apply, and Buyer agrees to reimburse Seller should Buyer fail to continue any such program such that Seller 88 regarding possible tax changes. 109 costs, damages, or fees imposed theday program not continued after 89 incurs any Buyer andpenalties, Seller agree to re-prorate thethat realare estate taxes, because through the prior tois closing based upon thesale. taxesThe on 110 Parties agree this provision survives closing. 90 the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 111 MANAGED FOREST All, part, Property is managed forest land to under the Managed Forest Law (MFL). 91 WB-13 days ofVacant receipt, forward aOffer copy of bill to of thethe forwarding address Seller agrees provide at closing. The Parties shall The LandLAND: totheorPurchase includes a Government Programs contingency. A buyer 112 This designation will continue after closing. Buyer is advised as follows: The MFL is a landowner incentive program that 92 re-prorate withincontingent 30 days of Buyer’s receipt of the actual taxabill. Buyer and Seller agree this is a post-closing obligation can make an offer on the seller providing list of all government programs that apply to 113 encourages sustainable forestry on private woodlands by reducing and deferring property taxes. Orders designating lands as any 93 and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. 114 managed forest landsThe remain in effect for 25provides or 50 years.aWhen of land enrolled in the MFL vacant program changes, the part of the property. contingency list ofownership programs that might affect land including 94 LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights 115 new owner must sign and file a report of the change of ownership on a form provided by the Department of Natural Resources farmland preservation agreements, wetland mitigation plans, and use value assessments. The list is 95 under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the 116 and pay a fee. By filing this form, the new owner agrees to the associated MFL management plan and the MFL program rules. not exhaustive and a seller must include all government programs on a list provided to the buyer before 96 (written) (oral) STRIKE ONE lease(s), if any, are _________________________________________________________ ____ __ 117 The DNR Division of Forestry monitors forest management plan compliance. Changes you make to property that is subject to 97 deadline _______________________. Insert additional terms, any, atdeadline lines or 526-534 attach as an addendum per linethe 525.offer. the the buyer on line 98. runs from aor seller’s acceptance of 118 an order designating it asindicates managed forest land, or toifThe its use, may458-464 jeopardize your benefits under the program or may cause 98 the property GOVERNMENT PROGRAMS: Seller shalland deliver toresult Buyer, within ________days of acceptance of this Offer, a list all 119 to be withdrawn from the program may in the assessment of penalties. For more information call After actually receiving the list from the seller, the buyer then has 7 days to terminate the offerofthe based 99 federal, state, county, andhttp://www.dnr.state.wi.us. local conservation, farmland, environmental, or other land use programs, agreements, restrictions, 120 local DNR forester or visit on100any of the government If the sellerpreservation does not agreements, provide the list to the or conservation easements, programs which apply that to anyaffect part ofthe theproperty. Property (e.g., farmland farmland 101 preservation or exclusive agricultural zoning, value assessments, Managed ConservationtoReserve buyer by the buyer’s deadline listed onuseline 98, the buyerForest has Crop, 7 days fromForest, that deadline deliver to 102 Program, wetland mitigation, shoreland zoning mitigation plan or comparable programs), along with disclosure of any the seller a notice terminating the offer. 103 penalties, fees, withdrawal charges, or payback obligations pending, or currently deferred, if any. This contingency will be 104 deemed unless note Buyer delivers Seller, within seven107-110 (7) days of Buyer’s Actualthe Receipt of said list and disclosure, There is a satisfied cautionary to thetobuyer on lines informing buyer that if the buyerordoes 105 the deadline for delivery, whichever is earlier, a notice terminating this Offer based upon the use restrictions, program not terminate the offer based upon the seller’s list of government programs affecting the property, the 106 requirements, and/or amount of any penalty, fee, charge, or payback obligation. buyer is agreeing that the willthis continue to participate in those programs. The in note obligates 107 CAUTION: If Buyer does notbuyer terminate Offer, Buyer is hereby agreeing that Buyer will continue suchalso programs, 108 as may apply, and Buyer agrees to reimburse Seller should Buyer fail to continue any such program such that Seller the buyer to reimburse the seller for any costs, penalties, damages, or fees that the seller incurs if a 109 incurs any costs, penalties, damages, or fees that are imposed because the program is not continued after sale. The buyer chooses to withdraw from one of the programs in the future. Many of the government programs 110 Parties agree this provision survives closing. that affect aFOREST vacant property offerof the taxProperty benefits to owners andunder require the property’s owner to 111 might MANAGED LAND: All, or part, is managed forest land the Managed Forest Law (MFL). 112 This designation closing. Buyer islater advised as follows: MFL is afrom landowner incentive program that enroll the propertywillforcontinue a set after term. If a buyer removes theThe property the government program, 113 encourages sustainable forestry on private woodlands by reducing and deferring property taxes. Orders designating lands as the seller, as the original party to the agreement with the government program might incur penalties 114 managed forest lands remain in effect for 25 or 50 years. When ownership of land enrolled in the MFL program changes, the or115fines because theand buyer removed the property from the time agreed to in the new owner must sign file a report of the change of ownership on athe formprogram provided by before the Department of Natural Resources 116 and pay a fee. By filing this form, theBuyers new owner agrees to thewith associated MFL management and the MFLor program rules. original enrollment agreement. and sellers questions regardingplan enrollment disenrollment 117 The DNR Division of Forestry monitors forest management plan compliance. Changes you make to property that is subject to from any of the government programs should consult the agency overseeing the program or an 118 an order designating it as managed forest land, or to its use, may jeopardize your benefits under the program or may cause attorney. Licensees do notfrom have to be experts in any of assessment the government programs that might a 119 the property to be withdrawn the program and may result in the of penalties. For more information callaffect the vacant transaction and should refer sellers and buyers to other sources for advice or information 120 localland DNR forester or visit http://www.dnr.state.wi.us. 74 75

on the programs.

161

Program, wetland mitigation, shoreland zoning mitigation plan or comparable programs), along with disclosure of any penalties, fees, withdrawal charges, or payback obligations pending, or currently deferred, if any. This contingency will be 104 deemed satisfied unless Buyer delivers to Seller, within seven (7) days of Buyer’s Actual Receipt of said list and disclosure, or 105 the deadline SALES for delivery, whichever is earlier, a notice terminating this Offer based upon the use restrictions, program REAL ESTATE 106 requirements, and/or amount of any penalty, fee, charge, or payback obligation. 107 CAUTION: If Buyer does not terminate this Offer, Buyer is hereby agreeing that Buyer will continue in such programs, 108 as may apply, and Buyer agrees to reimburse Seller should Buyer fail to continue any such program such that Seller 109 incurs any costs, penalties, damages, or fees that are imposed because the program is not continued after sale. The Lines 111-120 Managed Forest Land 110 Parties agree this provision survives closing. 111 MANAGED FOREST LAND: All, or part, of the Property is managed forest land under the Managed Forest Law (MFL). 112 This designation will continue after closing. Buyer is advised as follows: The MFL is a landowner incentive program that 113 encourages sustainable forestry on private woodlands by reducing and deferring property taxes. Orders designating lands as 114 managed forest lands remain in effect for 25 or 50 years. When ownership of land enrolled in the MFL program changes, the 115 new owner must sign and file a report of the change of ownership on a form provided by the Department of Natural Resources 116 and pay a fee. By filing this form, the new owner agrees to the associated MFL management plan and the MFL program rules. 117 The DNR Division of Forestry monitors forest management plan compliance. Changes you make to property that is subject to 118 an order designating it as managed forest land, or to its use, may jeopardize your benefits under the program or may cause 119 the property to be withdrawn from the program and may result in the assessment of penalties. For more information call the 120 local DNR forester or visit http://www.dnr.state.wi.us. 102 103

The Managed Forest Land contingency provides a buyer the opportunity to acknowledge that all or part of the property is managed forest land under the Managed Forest Law. A buyer who includes this provision also acknowledges that enrollment in the program continues after closing and orders designated land as managed forest land remain in effect for 25 or 50 years. When a property owner enrolls land as managed forest land under the Managed Forest Law, it is a long term commitment by the property owner to manage the forest with the goal of encouraging sustainable management of private woodlands. In exchange, the seller receives a reduction and deferral of property taxes. When a buyer purchases land under an order of the Managed Forest Law, the new property owner agrees to the management plan and rules. This provision also tells the buyer to consult the local Department of Natural Resources (DNR) forester or the DNR’s website for more information. Lines 121-145 Fences, Use Value Assessments, Farmland Preservation, Conservation Reserve Page 3 of 10, WB-13 Program, and Shoreland Zoning Ordinances FENCES: Wis. Stat. § 90.03 requires the owners of adjoining properties to keep and maintain legal fences in equal shares where one or both of the properties is used and occupied for farming or grazing purposes. CAUTION: Consider an agreement addressing responsibility for fences if Property or adjoining land is used and 124 occupied for farming or grazing purposes. 125 USE VALUE ASSESSMENTS: The use value assessment system values agricultural land based on the income that would be 126 generated from its rental for agricultural use rather than its fair market value. When a person converts agricultural land to a 127 non-agricultural use (e.g., residential or commercial development), that person may owe a conversion charge. To obtain more 128 information about the use value law or conversion charge, contact the Wisconsin Department of Revenue's Equalization 129 Section or visit http://www.revenue.wi.gov/. 130 FARMLAND PRESERVATION: Rezoning a property zoned farmland preservation to another use or the early termination of a 131 farmland preservation agreement or removal of land from such an agreement can trigger payment of a conversion fee equal to 132 3 times the class 1 “use value” of the land. Contact the Wisconsin Department of Agriculture, Trade and Consumer Protection 133 Division of Agricultural Resource Management or visit http://www.datcp.state.wi.us/ for more information. 134 CONSERVATION RESERVE PROGRAM (CRP): The CRP encourages farmers, through contracts with the U.S. Department 135 of Agriculture, to stop growing crops on highly erodible or environmentally sensitive land and instead to plant a protective 136 cover of grass or trees. CRP contracts run for 10 to 15 years, and owners receive an annual rent plus one-half of the cost of 137 establishing permanent ground cover. Removing lands from the CRP in breach of a contract can be quite costly. For more 138 information call the state Farm Service Agency office or visit http://www.fsa.usda.gov/. 139 SHORELAND ZONING ORDINANCES: All counties must adopt shoreland zoning ordinances that meet or are more 140 restrictive than Wis. Admin. Code Chapter NR 115. County shoreland zoning ordinances apply to all unincorporated land 141 within 1,000 feet of a navigable lake, pond or flowage or within 300 feet of a navigable river or stream and establish minimum 142 standards for building setbacks and height limits, cutting trees and shrubs, lot sizes, water runoff, impervious surface 143 standards (that may be exceeded only if a mitigation plan is adopted) and repairs to nonconforming structures. Buyers must 144 conform to any existing mitigation plans. For more information call the county zoning office or visit http://www.dnr.state.wi.us/. 145 Buyer is advised to check with the applicable city, town or village for additional shoreland zoning restrictions, if any. 146 BUYER’S PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or 147 Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change This of the WB-13 an information section forandbuyers vacant section 148 insection the condition of the Property,isexcept for ordinary wear and tear changespurchasing approved by Buyer, and land. that anyThe defects 149 Seller has agreed to cure have been repaired in the manner agreed to by the Parties. provides information on a property owner’s responsibility for maintaining fences on property used 150 PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Property until the earlier of for151farming grazing andin information on condition programs likely to affect vacant list is not closing or and occupancy of Buyer materially the same as ofmost the date of acceptance of this Offer, land. except The for ordinary 152 wear and tear. If, priorbuyers to closing,should the Property is damaged in an amount any of notprograms more than fivethat percent (5%)affect of the selling price, comprehensive and thoroughly investigate might the purchase. 153 Seller shall be obligated to repair the Property and restore it to the same condition that is was on the day of this Offer. No later The section provides basic overviews of the programs and includes resources for buyers who need 154 than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed more information. Licensees do not need to know details of these programs and can refer buyers 155 such sum, Seller shall promptly notify Buyer in writing of the the damage and this Offer may be canceled at option of Buyer. 156 Should to carry out this Offer despite damage, Buyer shall be to the insurance proceeds, if any, and sellersBuyer withelect additional questions to thesuch resources included in entitled this section or to an attorney. 157 relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller’s deductible on 158 such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall 159 be held in trust for the sole purpose of restoring the Property. 160 DEFINITIONS 161 ■ ACTUAL RECEIPT: “Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or 162 written notice physically in the Party’s possession, regardless of the method of delivery. 163 ■ CONDITIONS AFFECTING THE PROPERTY OR TRANSACTION: “Conditions Affecting the Property or Transaction” are 162 164 defined to include: 165 a. Proposed, planned or commenced public improvements or public construction projects which may result in special 166 assessments or otherwise materially affect the Property or the present use of the Property. 121 122 123

u. Property tax increases, other than normal annual increases; completed or pending property tax reassessment of the bb. Impact fees, or other conditions occurrences that would significantly increase development costs or reduce the value of Property, or proposed or pendingorspecial assessments. the Property to a reasonable personmineral with knowledge of the nature and scope of the condition or occurrence. v. Burial sites, archeological artifacts, rights, orchards or endangered species. cc. The Property is subject a mitigation plan or required by DNR rules on related to county w. Flooding, standing water,todrainage problems other water problems or affecting the shoreland Property. zoning ordinances that obligatesdamage the owner tofire, establish or maintain certain measures to shoreland conditions, enforceable the county - 10 Offers tobyPurchase x. Material from wind, floods, earthquake, expansive related soils, erosion or landslides. (see lines 139-145). y. Significant odor, noise, water intrusion or other irritants emanating from neighboring property. dd. All or part of thedamage land has been assessed as agricultural land, thewildlife ownerorhas been assessed a use-value conversion z. Substantial crop from disease, insects, soil contamination, other causes; diseased trees; or substantial charge or payment of a use-value conversion charge has been deferred. injuries or the disease in livestock on the Property or neighboring properties. 279 aa. ■ DEADLINES: “Deadlines”manure expressed as afacilities numberon of the “days” from an event, such as acceptance, are calculated by excluding 271 Existing or abandoned storage Property. Lines and Lines 245-296 Definitions 272 Impact or occurred other conditions occurrences that would significantly development costs or reduce the last value of 280 bb. the160-187 day thefees, event and by orcounting subsequent calendar days. increase The deadline expires at midnight on the day. 273 the Property to a reasonable person withpages ofdays” the 5. nature anddefinitions scope of the condition or occurrence. 281 Deadlines expressed as asection specific number ofknowledge “business exclude Saturdays, Sundays, any legal public underfrom The WB-13 Definitions is on 3 and The of some terms areholiday different 274 cc. The Property is subject to a mitigation plan required by DNR rules related to county shoreland zoning ordinances that 282 Wisconsin or Federal and any other day designated by the President reflect such thatcharacteristics the postal service does receive land the in owner the law, residential condominium of by anot vacant 275 definitions obligates the to establish or and maintain certain measuresoffers related to to shoreland conditions, enforceable the county 283 registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of “hours” from the 276 (see lines 139-145). transaction. The definition forreceipt conditions affecting the from property includes additional conditions such as 284 occurrence of an event, such as of a notice, are calculated the exact time of the event, and by counting 24 hours 277 dd. All or part of the land has been assessed as agricultural land, the owner has been assessed a use-value conversion contamination due to fertilizer, whether the property is in a drainage district, the presence of 285 per calendar Deadlines a specificcharge day ofhas thebeen calendar year or as the day of a specific event, suchmanure as 278 charge or day. the payment of aexpressed use-valueas conversion deferred. 286 closing, expire at midnight of that day. storage facilities,“Deadlines” and whether a party holdsofmineral onsuch the as property. 279 ■ DEADLINES: expressed as a number “days” fromrights an event, acceptance, are calculated by excluding 287 the ■ DEFECT: means and a condition that would have acalendar significant adverse on the valueatofmidnight the Property; 280 day the “Defect” event occurred by counting subsequent days. The effect deadline expires on thethat lastwould day. 288 Deadlines significantly impair theas health or safety of future occupantsdays” of theexclude Property; or that if Sundays, not repaired, or replaced would 281 expressed a specific number of “business Saturdays, anyremoved legal public holiday under Lines 290-294 Fixtures 289 Wisconsin significantlyorshorten or law, adversely affect the expected normal by life the of the premises. 282 Federal and any other day designated President such that the postal service does not receive 290 registered ■ FIXTURE: A “Fixture” an itemdeliveries of property is physically attached to or so associated land sofrom as tothe be 283 mail or makeisregular onwhich that day. Deadlines expressed as closely a specific number with of “hours” 291 occurrence treated as part of event, the real estate, including, physically attached itemsofnot without24 damage 284 of an such as receipt of a without notice, limitation, are calculated from the exact time theeasily event,removable and by counting hours 292 per to the premises, items specifically adaptedastoathe premises, items customarily treated asday fixtures, but not limited 285 calendar day. Deadlines expressed specific day and of the calendar year or as the of a including, specific event, such as 293 closing, to, all: perennial garden 286 expire at crops; midnight of thatbulbs; day. plants; shrubs and trees and fences; storage buildings on permanent foundations and 294 ■ docks/piers permanent foundations. 287 DEFECT: on “Defect” means a condition that would have a significant adverse effect on the value of the Property; that would 295 significantly CAUTION: Exclude any Fixtures to beofretained by Selleroforthe which are rented lines 18-19. removed or replaced would 288 impair the health or safety future occupants Property; or thaton if not repaired, The forUnless fixtures is on lines 290-294 and does not include atimprovements on the land or 296 significantly ■definition PROPERTY: otherwise stated, “Property” means the real estate described lines 4-7. 289 shorten or adversely affect the expected normal life of the premises. 290 ■ FIXTURE: A “Fixture” is an item of property which is physically attached to or so closely associated with sobe as to be items like window shades, lighting fixtures, and other household fixtures, which would not ause, 297 PROPERTY DEVELOPMENT WARNING If Buyer contemplates developing Property for a use other than land the current 291 treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage 298 there are a variety of issues which should be addressed to ensure the development or new use is feasible. Municipal and consideration in a vacant land transaction. The definition also adds perennial crops to the list of 292 the premises, items specifically adapted therestrictions, premises, and items customarily treated as prohibit fixtures, certain including, but not limited 299 to zoning ordinances, recorded building and to use covenants and easements may improvements or vegetation that iscrops; part of the definition of fixture. Annual crops are not fixtures and are not partand of the 293 all:and perennial garden plants; shrubspermits, and treeszoning and fences; storage buildings on permanent foundations 300 to, uses therefore should be bulbs; reviewed. Building variances, Architectural Control Committee approvals, purchase price unless the parties negotiate a different arrangement. 294 permanent 301 docks/piers estimates foronutility hook-upfoundations. expenses, special assessments, changes for installation of roads or utilities, environmental audits, 295 Exclude any Fixtures torelated be retained by Seller are rented on lines 18-19.to determine the feasibility of 302 CAUTION: subsoil tests, or other development feesWarning may need or to which be obtained or verified in order Lines 297-305 Property Development 296 PROPERTY: otherwiseuse stated, thecontingencies real estate described at lines 4-7.to investigate certain of these 303 ■ development of,Unless or a particular for, “Property” a property.means Optional which allow Buyer 304 issues can beDEVELOPMENT found at lines 306-350 and Buyer maycontemplates add contingencies as needed in addenda 525). 297 PROPERTY WARNING If Buyer developing Property for a use(see otherline than the Buyer currentshould use, 305 there revieware anyaplans forofdevelopment or should use changes to determine what issues should be addressed in is these contingencies. 298 variety issues which be addressed to ensure the development or new use feasible. Municipal and 299 zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain improvements or 300 uses and therefore should be reviewed. Building permits, zoning variances, Architectural Control Committee approvals, 301 estimates for utility hook-up expenses, special assessments, changes for installation of roads or utilities, environmental audits, 302 subsoil tests, or other development related fees may need to be obtained or verified in order to determine the feasibility of 303 development of, or a particular use for, a property. Optional contingencies which allow Buyer to investigate certain of these 304 issues can be found at lines 306-350 and Buyer may add contingencies as needed in addenda (see line 525). Buyer should 305 review any plans for development or use changes to determine what issues should be addressed in these contingencies. 263 272 264 273 265 274 266 275 267 276 268 277 269 278 270

The WB-13 includes a property development warning for buyers who are intending to develop the vacant land. The warning cautions buyers who are intending to change the current use of the property. Buyers should consider building permits, zoning variances, assessments, environmental concerns, and other issues before making an offer on a vacant property that the buyer intends to develop. The warning also cautions buyers to include additional contingencies as addenda if needed to address questions related to development.

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REAL ESTATE SALES

Property Address: ________________________________________________________________________________________________________Page 6 of 10, WB-13 Lines 306-350 Proposed Use Contingencies

PROPOSED USE CONTINGENCIES: Buyer is purchasing the Property for the purpose of: _______________________ __________________________________________________________________________________________________ ____ 308 __________________________________________________________________________________________________ ____ 309 [insert proposed use and type and size of building, if applicable; e.g. three bedroom single family home]. The optional 310 provisions checked on lines 314-345 shall be deemed satisfied unless Buyer, within ______ days of acceptance, delivers 311 written notice to Seller specifying those items which cannot be satisfied and written evidence substantiating why each specific 312 item included in Buyer’s notice cannot be satisfied. Upon delivery of Buyer’s notice, this Offer shall be null and void. Seller 313 agrees to cooperate with Buyer as necessary to satisfy the contingencies checked at lines 314-350. 314 ZONING CLASSIFICATION CONFIRMATION: This Offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) 315 STRIKE ONE (“Buyer’s” if neither is stricken) expense, verification that the Property is zoned ______________________ 316 ________________________ and that the Property’s zoning allows the Buyer’s proposed use described at lines 306-308. 317 SUBSOILS: This offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither 318 is stricken) expense, written evidence from a qualified soils expert that the Property is free of any subsoil condition which 319 would make the proposed use described at lines 306-308 impossible or significantly increase the costs of such 320 development. 321 PRIVATE ONSITE WASTEWATER TREATMENT SYSTEM (POWTS) SUITABILITY: This Offer is contingent 322 upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither is stricken) expense, written evidence from 323 a certified soils tester that (a) the soils at the Property locations selected by Buyer, and (b) all other conditions that must 324 be approved, meet the legal requirements in effect on the date of this Offer to obtain a permit for a POWTS for use of the 325 Property as stated on lines 306-308. The POWTS (septic system) allowed by the written evidence must be one of 326 the following POWTS that is approved by the State for use with the type of property identified at lines 306-308 CHECK 327 ALL THAT APPLY:  conventional in-ground;  mound;  at grade;  in-ground pressure distribution;  holding tank; 328  other: ___________________________________________________________________________________________. 329 EASEMENTS AND RESTRICTIONS: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE 330 ONE (“Buyer’s” if neither is stricken) expense, copies of all public and private easements, covenants and restrictions 331 affecting the Property and a written determination by a qualified independent third party that none of these prohibit or 332 significantly delay or increase the costs of the proposed use or development identified at lines 306-308. 333 APPROVALS: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if 334 neither is stricken) expense, permits, approvals and licenses, as appropriate, or the final discretionary action by the 335 granting authority prior to the issuance of such permits, approvals and licenses, for the following items related to Buyer’s 336 proposed use: _____________________________________________________________________________________ 337 __________________________________________________________________________________________________. 338 UTILITIES: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if neither 339 is stricken) expense, written verification of the following utility connections at the listed locations (e.g., on the Property, at 340 the lot line, across the street, etc.) CHECK AND COMPLETE AS APPLICABLE:  electricity________________________; 341  gas ____________________________;  sewer_____________________;  water___________________________; 342  telephone_______________________;  cable _______________________;  other__________________________. 343 ACCESS TO PROPERTY: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE 344 (“Buyer’s” if neither is stricken) expense, written verification that there is legal vehicular access to the Property from public 345 roads. 346 LAND USE APPROVAL: This Offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if 347 neither is stricken) expense, a  rezoning;  conditional use permit;  license;  variance;  building permit;  348 occupancy permit;  other ___________________________________________ CHECK ALL THAT APPLY, and delivering 349 written notice to Seller if the item cannot be obtained, all within ______ days of acceptance for the Property for its proposed 350 use described at lines 306-308. 351 MAP OF THE PROPERTY: This Offer is contingent upon (Buyer obtaining) (Seller providing) STRIKE ONE (“Seller 352 providing” if neither is stricken) a Map of the Property dated subsequent to the date of acceptance of this Offer prepared by a The proposed use contingency is an umbrella contingency with several sub-contingencies that a buyer 353 registered land surveyor, within _____ days of acceptance, at (Buyer's) (Seller's) STRIKE ONE (“Seller’s” if neither is stricken) uses to customize use contingency to maximum addressofthe detailsacres, of thethebuyer’s proposed 354 expense. The map the shall proposed show minimum of __________ acres, __________ legal description of theuse for 355 Property, the Property's boundaries and dimensions, visible encroachments upon the Property, the location of improvements, the property. A buyer can include as many of the sub-contingencies as apply to the buyer’s proposed 356 if any, and: ___________________________________________________________________________________________ use. If a buyer wants to make the offer contingent on the proposed use, the buyer marks the open 357 [STRIKE AND COMPLETE AS APPLICABLE] Additional map features which may be added include, but are not limited to: 358 staking all corners the Property; dedicated streets; lot A dimensions; total acreage square box on lineof 306 and ofindicates theidentifying proposed use and on apparent lines 306-308. buyer satisfies thisor contingency 359 footage; easements or rights-of-way. CAUTION: Consider the cost and the need for map features before selecting them. unless the buyer delivers a notice to the seller by the deadline included on line 310 indicating which 360 Also consider the time required to obtain the map when setting the deadline. This contingency shall be deemed satisfied portions thewithin contingency theearlier buyer cannot satisfyof the with written evidence why the 361 unless of Buyer, five days of the of: (1) Buyer's receipt map; or (2) the deadline forsubstantiating delivery of said map, 362 delivers to Seller a copy of the mapIfand written delivers notice which (1) thewritten significantevidence encroachment; information buyer cannot satisfy the item. a abuyer a identifies: notice with by(2)the deadline on 363 materially inconsistent with prior representations; or (3) failure to meet requirements stated within this contingency. line 310, the offer is null and void. All of the sub-contingencies permit a buyer to assign responsibility 364 Upon delivery of Buyer’s notice, this Offer shall be null and void. 306 307

for the costs associated with completing the conditions of the sub-contingency. If a buyer does not affirmatively assign responsibility for the costs by striking either buyer or seller from the choice, the buyer is responsible.

164

Property Address: ________________________________________________________________________________________________________Page 6 of 10, WB-13

Offers to Purchase - 10

PROPOSED USE CONTINGENCIES: Buyer is purchasing the Property for the purpose of: _______________________ 307 __________________________________________________________________________________________________ ____ 308 __________________________________________________________________________________________________ ____ 309 [insert proposed use and type and size of building, if applicable; e.g. three bedroom single family home]. The optional The first sub-contingency permits a buyer to confirm that the property has the correct zoning 310 provisions checked on lines 314-345 shall be deemed satisfied unless Buyer, within ______ days of acceptance, delivers classification for the buyer’s proposed use stated on lines 306-308. The second sub-contingency 311 written notice to Seller specifying those items which cannot be satisfied and written evidence substantiating why each specific permits a buyer to testnotice subsoil condition thatofwould proposed use. Next, 312 item included in Buyer’s cannotfor be any satisfied. Upon delivery Buyer’s prevent notice, this the Offerbuyer’s shall be null and void. Seller agreescan to cooperate as necessary to satisfy the contingencies checked at lines 314-350. a 313 buyer includewith a Buyer sub-contingency to determine whether the buyer will be able to obtain a permit CONFIRMATION: This (POWTS) Offer is contingent at (Buyer’s) for (Seller’s) for314a privateZONING onsiteCLASSIFICATION wastewater treatment system thatupon theBuyer stateobtaining, has approved a property 315 STRIKE ONE (“Buyer’s” if neither is stricken) expense, verification that the Property is zoned ______________________ used for________________________ the buyer’s proposedand use listed at lines 306-308. 316 that the Property’s zoning allows the Buyer’s proposed use described at lines 306-308. 317 SUBSOILS: This offer is contingent obtaining, atThe (Buyer’s) ONE (“Buyer’s” if neither A buyer wants to develop vacant land into a upon 30-lotBuyer campground. buyer(Seller’s) includesSTRIKE the proposed use contingency and 318 is stricken) expense, written evidence from a qualified soils expert that the Property is free of any subsoil condition which states “30-lot campground” at lines 306-308. The buyer includes the POWTS Suitability contingency in the offer. The buyer 319 would make the proposed use described at lines 306-308 impossible or significantly increase the costs of such hires a soil tester. To satisfy the contingency, the written evidence from the soil tester must show that the buyer will be able 320 development. to321obtain a permit for a ONSITE POWTSWASTEWATER that the state has approvedSYSTEM for use in(POWTS) a 30-lotSUITABILITY: campground. This Offer is contingent PRIVATE TREATMENT 322 upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither is stricken) expense, written evidence from A 323 buyera can make the offer obtaining copies ofbyeasements restrictions affecting the certified soils tester that (a)contingent the soils at theon Property locations selected Buyer, and (b) and all other conditions that must 324 beand approved, meet thealegal requirements in effect on the date of this to obtain a permit a POWTS for of thewill not property receiving third-party determination that theOffer easements and for restriction inuse place 325 Property as stated on lines 306-308. Thebuyer POWTS (septic by the written evidence must be one of prevent the buyer’s proposed use. A can alsosystem) makeallowed the offer contingent on receiving permission 326 the following POWTS that is approved by the State for use with the type of property identified at lines 306-308 CHECK by327permits, licenses, approvals, or other required documents demonstrating that the body that must ALL THAT APPLY:  conventional in-ground;  mound;  at grade;  in-ground pressure distribution;  holding tank; approve the buyer’s proposed use has approved it. A buyer would use this sub-contingency if_____. the buyer 328  other: ______________________________________________________________________________________ needed to seek building permits or other permissive documents with the proposed 329 EASEMENTS AND RESTRICTIONS: This Offer is contingent upon Buyerbefore obtaining,proceeding at (Buyer's) (Seller's) STRIKE 330 listed ONEat(“Buyer’s” if neither is If stricken) expense, copies all public and privateof easements, covenants and restrictions use lines 306-308. a buyer needs to ofseek verification utility connections, the buyer can 331 affecting the Property and a written determination by a qualified independent third party that none of these prohibit or include the utilities sub-contingency at lines 338-342 and a buyer can make an offer contingent on 332 significantly delay or increase the costs of the proposed use or development identified at lines 306-308. verifying that there is legal vehicular access to a property from public roads by including the access to 333 APPROVALS: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if property sub-contingency on lines 343-345. 334 neither is stricken) expense, permits, approvals and licenses, as appropriate, or the final discretionary action by the 335 granting authority prior to the issuance of such permits, approvals and licenses, for the following items related to Buyer’s 336 proposed use: _____________________________________________________________________________________ The last sub-contingency under the proposed use contingency permits a buyer to seek land use 337 __________________________________________________________________________________________________. approval for the proposed use. Land use approval might include a local zoning department rezoning the 338 UTILITIES: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if neither property, issuing a conditional use permit, license, building or occupancy permit,ator some 339 is stricken) expense, written verification of the following utility variance, connections atathe listed locations (e.g., on the Property, other item forstreet, the etc.) buyer’s use.AS The land useapproval sub-contingency is part of 340 the lotnecessary line, across the CHECKproposed AND COMPLETE APPLICABLE: electricity__________________ ______; 341 proposed  gas ____________________________;  sewer  water_____________________ ______; the use contingency even though it _____________________; is set at the left margin and the other sub-contingencies 342  telephone_______________________;  cable _______________________;  other____________________ ____. are indented under the proposed use contingency in the WB-13. This sub-contingency is __ deliberately 343 ACCESS TO PROPERTY: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE set apart from ifthe others because has verification a deadline thatis is different from tothe for 344 (“Buyer’s” neither is stricken) expense,itwritten that there legal vehicular access the deadline Property fromprovided public satisfying the proposed use contingency at line 310. The land use approval sub-contingency has a 345 roads. 346 LAND USE APPROVAL: Offertake is contingent uponlonger Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if than separate deadline becauseThis it can a buyer to satisfy the terms of this sub-contingency 347 neither is stricken) expense, a  rezoning;  conditional use permit;  license;  variance;  building permit;  the others under the proposed use umbrella. 348 occupancy permit;  other ___________________________________________ CHECK ALL THAT APPLY, and delivering 349 written notice toMap Seller of if the itemProperty cannot be obtained, all within ______ days of acceptance for the Property for its proposed Lines 351-364 the 350 use described at lines 306-308. 351 MAP OF THE PROPERTY: This Offer is contingent upon (Buyer obtaining) (Seller providing) STRIKE ONE (“Seller 352 providing” if neither is stricken) a Map of the Property dated subsequent to the date of acceptance of this Offer prepared by a 353 registered land surveyor, within _____ days of acceptance, at (Buyer's) (Seller's) STRIKE ONE (“Seller’s” if neither is stricken) 354 expense. The map shall show minimum of __________ acres, maximum of __________ acres, the legal description of the 355 Property, the Property's boundaries and dimensions, visible encroachments upon the Property, the location of improvements, 356 if any, and: ___________________________________________________________________________________________ 357 [STRIKE AND COMPLETE AS APPLICABLE] Additional map features which may be added include, but are not limited to: 358 staking of all corners of the Property; identifying dedicated and apparent streets; lot dimensions; total acreage or square 359 footage; easements or rights-of-way. CAUTION: Consider the cost and the need for map features before selecting them. 360 Also consider the time required to obtain the map when setting the deadline. This contingency shall be deemed satisfied 361 unless Buyer, within five days of the earlier of: (1) Buyer's receipt of the map; or (2) the deadline for delivery of said map, 362 delivers to Seller a copy of the map and a written notice which identifies: (1) the significant encroachment; (2) information 363 materially inconsistent with prior representations; or (3) failure to meet requirements stated within this contingency. 364 Upon delivery of Buyer’s notice, this Offer shall be null and void. 306

A buyer can make a vacant land offer contingent on receipt of a map of the property. The buyer chooses either to hire a surveyor to create a map or let the seller provide a surveyor-created map dated after the date of the offer. The buyer can specify what the map must show for the property to be

165

date or Deadline is allowed before a breach occurs. to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. TITLE EVIDENCE 408 may declareOF thisTITLE: Offer null andpayment void by delivering written notice withdrawal Seller the priorProperty to delivery Seller's notice 418 Buyer ■ CONVEYANCE Upon of the purchase price,ofSeller shall to convey byofwarranty deed 409 this Offer deed is primary. Buyer not deliver notice of withdrawal earlier _____isdays after acceptance of this Offer. All 419 that (orESTATE trustee’s if Seller is may a trust, personal representative’s deedthan if Seller an estate or other conveyance as REAL SALES 410 other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. 420 provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements 411 TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) 421 entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use 412 occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this 422 restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s disclosure report and 413 Offer except: __________________________________________________________________________________________. 423 in this Offer, general taxes levied in the year of closing and _____________________________________________________ acceptable buyer, such or maximum acres,byproperty dimensions, 414 If “Time isto of the the Essence” appliesas to aminimum date or Deadline, failure to perform the exact date or Deadline encroachments, is a breach of 424 ________________________________________________________________________________________________ ______ 415 contract. If “Time of is ofimprovements. the Essence” does not apply359-360 to a date orcaution Deadline,athen performance within a reasonable time ofthe the map and the location Lines buyer to consider the costs of__ 425 ________________________________________________________________________________________________ ____ 416 date or Deadline is allowed before a Additional breach occurs.features on a map will add to the cost and length of time the and the time set for deadlines. 426 ________________________________________________________________________________________________ ______ 417 TITLE EVIDENCE surveyor to complete the Buyers specify the components of the property the surveyor 427 which needs constitutes merchantable title map. for purposes of this transaction. Seller shall complete and execute that the documents 418 ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed 428 necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. map must include the buyer satisfies contingency unless theisbuyer provides copy of the 419 (or trustee’s deedand if Seller is a trust, personalthis representative’s deed if Seller an estate or otheraconveyance as map ■ TITLE EVIDENCE: Seller shall give identifying evidence of titleainsignificant the form of anencroachment, owner's policy of titleinformation insurance in the amount of the with to429 the seller with written notice inconsistent 420 provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements 430 purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all 421 entered under them, recorded for fails the distribution utility and requirements municipal services,stated recordedinbuilding and use prior representations, or thateasements the map to showofproperty the contingency. 431 costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. 422 restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s disclosure report and The buyer must deliver the notice to the seller five days from the earlier of the buyer’s actual receipt 432 ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s) (Buyer’s) STRIKE 423 in this Offer, general taxes levied in the year of closing and _____________________________________________________ 433 ONE (“Seller’s” if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the of424the map or the buyer’s deadline on line 353. If a buyer delivers a notice, the offer is null and void. ______________________________________________________________________________________________________ 434 effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy 425 ________________________________________________________________________________________________ ______ 435 exclusions and exceptions, provided the title company will issue the endorsement. If a gap endorsement or equivalent gap Lines 437-441 Provision of Merchantable Title 426 ________________________________________________________________________________________________ ______ 436 coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 442-449). 427 constitutes title for purposes of this transaction. Seller shall complete and execute therequired documents 437 which ■ PROVISION OF merchantable MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the title 428 to record theisconveyance Seller’sattorney cost andorpay thenot Wisconsin Real Estate Transfer Fee. 438 necessary insurance commitment delivered toatBuyer's Buyer more than _____ days after acceptance (“15” if left blank), 429 TITLE title EVIDENCE: Seller shall evidence of than title in form of andelivery owner'sofpolicy title insurance in the amount of per the 439 ■ showing to the Property as ofgive a date no more 15the days before such of title evidence to be merchantable 430 pricesubject on a current an insurer licensed to write title insurance in Wisconsin. Sellerrequirements shall pay all 440 purchase lines 418-427, only toALTA liens form whichissued will bebypaid out of the proceeds of closing and standard title insurance 431 of providingastitle evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. 441 costs and exceptions, appropriate. 432 SellerFOR shallCLOSING: provide a “gap” endorsement or equivalent gap coverage at (Seller’s) (Buyer’s) STRIKE 442 ■ ■ GAP TITLEENDORSEMENT: NOT ACCEPTABLE If title is not acceptable for closing, Buyer shall notify Seller in writing of 433 ONEthe (“Seller’s” neither stricken) cost toif provide coverage for anyofliens or encumbrances filed or recorded after the 443 objections to titleif within _____days (“15”the left blank) after delivery thepurchase title commitment to first Buyer Buyer’s attorney. In Unlike WB-11, buyers using vacant land offer to choose a or deadline for providing 434 date of the title insurance commitment and before the _____ deed isdays recorded, subject tofrom theBuyer’s title insurance policy 444 effective such event, Seller shall have a reasonable time, but not exceeding (“5” if left blank) delivery of the merchantable title. The residential offer stateswillthat the seller mustIfprovide evidenceor of merchantable 435 andtitle exceptions, thenotice title company issue the endorsement. a gapthe endorsement equivalent 445 exclusions notice stating objections,provided to deliver to Buyer stating Seller’s election to remove objections by the time setgap for title to the buyer not less than five business days before closing. The vacant land offer provides a blank 436 coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 442-449). 446 closing. In the event that Seller is unable to remove said objections, Buyer may deliver to Seller written notice waiving the ■ PROVISION MERCHANTABLE TITLE: For purposes of closing, title evidence shall bewhich acceptable ifBuyer the required title on437 438 for aOF buyer to insert a deadline after acceptance ofdoes thenot offer bythe the seller must provide 447line objections, and the time for closing shall be extended accordingly. If Buyer waive objections, shall deliver 438 commitment delivered to Buyer's attorney or Buyer not than _____ days after acceptance (“15” ifacceptance. left blank), 448 insurance written notice of termination and leaves this Offer this shall be null and void. Providing title evidence closing does not merchantable title. If ais buyer line blank, themore default deadline isacceptable 15 daysforafter 439 to theobligations Property astoof a date no more than 15Buyer. days before delivery of such title evidence to be merchantable per 449 showing extinguishtitle Seller’s give merchantable title to 440 418-427, subject only toAcceptable liens which will be out of the proceeds closing and standard title prior insurance Lines 442-449 Title Not forpaid Closing 450 lines ■ SPECIAL ASSESSMENTS: Special assessments, if any, levied or for ofwork actually commenced to therequirements date of this 441 as by appropriate. 451 and Offerexceptions, shall be paid Seller no later than closing. All other special assessments shall be paid by Buyer. 442 TITLE NOT ACCEPTABLE FOR CLOSING: If titleassessments, is not acceptable for closing, shall notify Seller in writing of 452 ■ CAUTION: Consider a special agreement if area property ownersBuyer association assessments, special 443 to current title within _____days (“15” if left blank) after delivery of expenses the title commitment to Buyer or Buyer’s attorney. are In 453 objections charges for services under Wis. Stat. § 66.0627 or other are contemplated. "Other expenses" 444 event, Seller shall have a reasonable time, but not exceeding _____ if leftresulting blank) from Buyer’s assessments) delivery of the 454 such one-time charges or ongoing use fees for public improvements (otherdays than(“5” those in special 445 stating title gutter, objections, to deliver notice to Buyer water, stating sanitary Seller’s election to remove by the time set for 455 notice relating to curb, street, sidewalk, municipal and storm water the andobjections storm sewer (including all 446 In the and eventhook-up/connection that Seller is unableand to remove said objections, Buyer may deliver to Seller written trees, notice and waiving the 456 closing. sewer mains interceptor charges), parks, street lighting and street impact 447 andpublic the time for closing shall be in extended accordingly. If Buyer does not waive the objections, Buyer shall deliver 457 objections, fees for other facilities, as defined Wis. Stat. § 66.0617(1)(f). 448 notice of termination and this Offer shall ________________________________________________________ be null and void. Providing title evidence acceptable for closing does not 458 written ADDITIONAL PROVISIONS/CONTINGENCIES _______ 449 Seller’s obligations to give merchantable title to Buyer. 459 extinguish _______________________________________________________________________________________________ _____ __ 450 SPECIAL ASSESSMENTS: Special assessments, if any, levied or for work actually commenced prior to the date__ of this 460 ■ _______________________________________________________________________________________________ _____ The vacant offer permits a than buyer to set the special deadline for when buyer will provide notice that the 451 shallland be paid by Seller no later closing. All other assessments shallthe be paid by Buyer. __ 461 Offer _______________________________________________________________________________________________ _____ 452 CAUTION: Consider afor special agreement if area assessments, property owners must association 462 is _______________________________________________________________________________________________ _____ __ title not acceptable closing. In a residential transaction, a buyer notifyassessments, the seller inspecial writing of 453 for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. "Other expenses" are __ 463 charges _______________________________________________________________________________________________ _____ objections to the title by the time set for closing and a seller has 15 days to remove the objections. In 454 charges or ongoing use fees for public improvements (other than those resulting in special assessments) __ 464 one-time _______________________________________________________________________________________________ _____ a 455 vacant offer, a buyer a municipal deadlinewater, on line 443 and by storm whichwater a buyer will provide objections to relatingland to curb, gutter, street, states sidewalk, sanitary and storm sewer (including all title themains seller. The deadline runs and frominterceptor the seller’s delivery the title commitment to the buyer 456 to sewer and hook-up/connection charges), parks,ofstreet lighting and street trees, and impactor the 457 fees attorney. for other public as defined in Wis. Stat. that § 66.0617(1)(f). buyer’s If a facilities, buyer does deliver notice the title is not acceptable for closing, the seller then 458 ADDITIONAL PROVISIONS/CONTINGENCIES ________________________________________________________ has until the deadline the buyer included on line 444 to remove objections. If a buyer does ___ not____ include 459 _________________________________________________________________________________________________ _____ a 460 deadline on line 444, the seller has 5 days from the buyer’s notice that the title is not acceptable __ _______________________________________________________________________________________________ _____ for closing to deliver a notice to the buyer that the seller is electing to remove the objections by the time __ 461 _______________________________________________________________________________________________ _____ 462for _______________________________________________________________________________________________ _____ __ set closing. If the seller cannot remove the objections, the buyer can either waive the objections or 463 _________________________________________________________________________________________________ _____ deliver a notice terminating the offer. 464 _________________________________________________________________________________________________ _____ 416 407 417

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Offers to Purchase - 10

Property Address: _______________________________________________________________________________________________________Page 10 of 10, WB-13 Lines 503-524 Inspection Contingency

524

INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 488-502). This Offer is contingent upon a qualified independent inspector(s) conducting an inspection(s), of the Property which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party performing an inspection of _______________________________________________________________________________________ (list any Property feature(s) to be separately inspected, e.g., dumpsite, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting from an authorized inspection performed provided they occur prior to the deadline specified at line 513. Inspection(s) shall be performed by a qualified independent inspector or independent qualified third party. CAUTION: Buyer should provide sufficient time for the primary inspection and/or any specialized inspection(s), as well as any follow-up inspection(s). This contingency shall be deemed satisfied unless Buyer, within ______ days of acceptance, delivers to Seller a copy of the written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. For the purposes of this contingency, Defects (see lines 287-289) do not include conditions the nature and extent of which the Buyer had actual knowledge or written notice before signing this Offer. ■ RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE (“shall” if neither is stricken) have a right to cure the Defects. If Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects stating Seller’s election to cure Defects; (2) curing the Defects in a good and workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure.

525

ADDENDA: The attached ___________________________________________________is/are made part of this Offer.

503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523

ADDITIONAL _________________________________________________________ _____ The vacant landPROVISIONS/CONTINGENCIES offer inspection contingency differs slightly from the residential inspection contingency. 527 ____________________________________________________________________________________________________ The vacant land offer does not provide for a home inspection by a Wisconsin registered home inspector 528 ____________________________________________________________________________________________________ but provides for an inspection by a qualified independent inspector to inspect the property. Buyers 529 ____________________________________________________________________________________________________ can also include specific property features, such as a dump site, for separate inspection using this 530 ____________________________________________________________________________________________________ inspection contingency. 531 ____________________________________________________________________________________________________ 532 ____________________________________________________________________________________________________ 533 ____________________________________________________________________________________________________ 534 ____________________________________________________________________________________________________ 526

535

This Offer was drafted by [Licensee and Firm] _______________________________________________________________

536

_____________________________________________________________ on ______________________________ _______.

537

(x) ___________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

538 539 540

(x) ___________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

541

EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer.

542

_______________________________________________ Broker (by) ____________________________________ __________ SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OFFER.

543 544 545 546 547

_________________ (x) ___________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

549

_________________ (x) ____________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

550

This Offer was presented to Seller by [Licensee and Firm] ______________________________________________________

551

__________________________________________ on __________________________ at __________________ a.m./p.m.

552

This Offer is rejected _______________ _______ This Offer is countered [See attached counter] _______________ _______ Seller Initials▲ Date▲ Seller Initials▲ Date▲

548

553

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REAL ESTATE SALES

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11

Financing

Chapter Overview

Often a real estate transaction hinges on a buyer’s ability to obtain financing. This chapter provides key information on mortgage loans and qualifying for a loan.

Important Terminology acceleration clause adjustable rate loan amortization assumable loan balloon loan balloon payment bridge loan certificate of eligibility certificate of reasonable value conventional loan credit score creditor deed in lieu of foreclosure defeasance clause deficiency judgment discount point Federal Housing Administration finance rate fixed rate loan foreclosure government financing judicial foreclosure land contract lien theory

A LICENSEE’S ROLE

F

inancing plays an important role in the typical real estate transaction. Licensees do not have to find financing for buyers and buyers should consult with potential loan-to-value ratio financing sources early mortgagee in the purchase process mortgagor to determine a buyer’s non-conforming loans needs and access to origination fee financing. Licensees prepayment penalty do need to understand primary market private mortgage insurance the financing process and its effect on a promissory note transaction. purchase money mortgage Real Estate Settlement and MORTGAGE Procedures Act LAW reverse mortgage A mortgage is a right of redemption voluntary lien on real Rural Housing estate. The borrower satisfaction of mortgage or mortgagor pledges secondary market the real property to the strict foreclosure lender or mortgagee as triggering term collateral for the debt. Truth in Lending Act Mortgage law is state vendee specific and Wisconsin vendor law regulates mortgage Veterans Administration contract terms and the rights of mortgagors and mortgagees.

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There are several different types of mortgage law. Wisconsin recognizes lien theory, where the mortgage creates a lien on the real estate that is pledged as loan collateral. The borrower obtains legal title at closing from the seller and the lender obtains a lien right from the borrower. If the mortgagor defaults, the mortgagee must go through judicial foreclosure proceedings to obtain legal title to the property.

FORECLOSURE Foreclosure is a state-specific legal process by which a property that a buyer pledged as security for a debt is sold to ­satisfy the debt. Foreclosure procedure is state law and the process will vary from state to state. A foreclosure transfers a property’s title to a party that purchases the property at a foreclosure sale. The purchaser may be the lender who issued the loan or it could be a third party. A lender may foreclose a mortgage to secure repayment of the buyer’s debt, to prevent deterioration in the value of the property, to obtain occupancy and ­possession of the property, to obtain title to the property, to terminate all rights, or to obtain a deficiency judgment. The title that the purchaser receives is clear of all liens. A lender may choose to work with a buyer in default before pursuing foreclosure. Pursuing foreclosure could result in unrecoverable fees and costs, significant time commitments, adverse publicity, property deterioration, and potential environmental liability. Stages of Foreclosure in Wisconsin 1. A borrower defaults on a loan. 2. The lender files a summons and complaint, which begins the foreclosure lawsuit. 3. A court reaches a judgment determining the total amount the defaulting borrower owes to the lender. 4. The court establishes the redemption period. The redemption period is period during which a borrower can pay the judgement amount and retain the property. Minimum redemption periods depend on the type of property subject to the foreclosure action and whether the lender is seeking a deficiency judgment. 5. The sheriff conducts a public sale of the property. 6. A judge confirms the sheriff’s sale and the new owner receives title to the property. Judicial foreclosure is when a mortgagee files suit asking a court to sell the property to satisfy the mortgage debt. The highest bidder at the public sale purchases the property. If the sale results in a purchase price over what the borrower owes on the foreclosure judgment, the excess goes to the borrower. If there is a deficiency and the property does not sell for as much as the borrower owes to the lender, the lender may ask a court for a deficiency judgment against the borrower for the deficient amount. In Wisconsin, a court awards a defaulting borrower a right of redemption. A right of redemption is the time during which a borrower can pay the lender in full, stop the foreclosure proceeding, and keep possession of the property. The borrower can live on the property during the redemption period. Redemption periods vary depending on the property, the terms of the mortgage contract, and the foreclosure judgement. Strict Foreclosure Strict foreclosure refers to a process that a seller under a land contract can use to reclaim the property if a buyer defaults. There is not a sheriff’s sale. A seller still seeks court assistance to achieve strict foreclosure and return of the property. In the strict foreclosure process, the redemption period may be as short as seven business days.

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Deed in Lieu of Foreclosure A deed in lieu of foreclosure is the process by which a borrower deeds property back to a lender in full or partial settlement of the debt. Parties may refer to the deed in lieu of foreclosure process as “friendly foreclosure” because it permits a defaulting borrower to avoid the actual foreclosure process despite the default. If a lender agrees to a deed in lieu of foreclosure, the defaulting borrower may avoid the public exposure of financial difficulties brought by the public notices and advertisements of a foreclosure sale and may avoid the severe credit consequences of a foreclosure. A lender will usually only agree to a deed in lieu of foreclosure if the buyer’s title is free and clear of all encumbrances.

SOME FACTS ABOUT MORTGAGES A mortgage contract is made up of two parts, the mortgage, which creates the lien and the promissory note, which is the borrower’s promise to repay the loan. The promissory note serves as evidence of the debt, outlines the terms of repayment, and is negotiable because the note holder can transfer the note to another party. Lenders often sell notes to other lenders, investors, or the secondary market to raise capital for issuing new loans. Lenders bundle several loans together in a package and sell the packages to other parties. Lenders then have capital to issue new loans and the purchasers of the loan package benefit from the repayment of interest on the loans. ABC National Bank issues $2,000,000 in loans. They package $1,800,000 together and sell the debt to a third party. ABC now has $1,800,000 in capital to issue new loans and they earn interest on the retained debt of $200,000. The third-party purchaser earns income from the interest on the $1,800,000 loan package. A borrower must understand the terms of a mortgage contract. Lenders should review mortgage documents with a borrower. The terms of a borrower’s loan might include a ­prepayment penalty. Prepayment penalties are charges a lender imposes on a borrower who pays off a mortgage early. Prepayment penalties are not the same as prepayment premiums. A prepayment premium is a monthly fee in addition to a prepayment penalty that a lender charges a borrower. The financing contingency found in most of the Wisconsin offers to purchase states that the loan the buyer is trying to secure cannot include a prepayment premium. A lender can charge a prepayment penalty to a borrower. If a borrower pays a mortgage debt off ahead of the scheduled repayment, the lender charges a penalty. The penalty covers some of the loss a lender incurs in lost interest income due to the buyer’s early repayment. Lenders often charge prepayment penalties for only a portion of a loan term. For example, a lender may only impose prepayment penalties on borrowers who pay off a loan in the first year of the lending contract. After a borrower makes payments for more than one year, the lender waives the penalty and the buyer is not subject to a penalty for early payment of the loan. Lenders may also waive a penalty if the borrower refinances a debt with the lender or takes out a new loan with the lender. A mortgage contract will usually contain a defeasance clause. A defeasance clause requires a lender to remove the lender’s lien from a borrower’s property when the borrower repays the loan. A lender removes the lien by recording a ­satisfaction of mortgage in the public records. A mortgage agreement may also contain an acceleration clause. An acceleration clause gives a lender the right to accelerate the entire balance due if a borrower defaults on the terms of the loan agreement. The acceleration clause is what gives a lender a right to start foreclosure proceedings against a borrower. If a borrower defaults on a mortgage, the lender’s acceleration clause means that the borrower now owes the entire amount of the mortgage rather than the monthly payment due. The lender can then sue the borrower for the money judgement in the amount of the mortgage and legal expenses. The lender then asks the court to order a sheriff’s sale of the property to satisfy the money judgement against the borrower. 171

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Some mortgages are assumable loans and a buyer can assume a seller’s mortgage loan. The buyer acquires title to the seller’s property and agrees to become ­personally liable for the terms and conditions of the existing mortgage. A buyer may choose to assume a seller’s existing loan if current interest rates are higher than the interest rate on the seller’s mortgage. Whether a mortgage contract permits another party to assume the loan will depend on the terms of the loan agreement. Most mortgage agreements contain a “due on sale” clause, which requires a borrower to repay a loan in full before the borrower can transfer title to the property. If a mortgage contains a due on sale clause, another party cannot assume the terms of that mortgage. To obtain a loan, a buyer will pay financing charges. An origination fee is finance charge that a lender charges a buyer to cover the costs of issuing the loan. Origination fees vary depending on the lender. A discount point is a financing charge a buyer pays to buy down an interest rate. A lender charges a borrower discount points before originating the loan. For test purposes, a buyer will pay 1% of the principal loan amount for every discount point the buyer purchases. A buyer may benefit from purchasing points because a lower interest rate will mean lower monthly payments and potential tax benefits. Before purchasing points, however, a buyer needs to consider the cost of the points compared to the savings the buyer expects from the lower interest rate. In some cases, a buyer may benefit more by putting money towards a down payment rather than purchasing points. A buyer needs to borrower $100,000. The borrower consults with a lender and the lender presents two options. 1. A 30-year loan with an 8% interest rate. The borrower’s monthly principal and interest payments will be approximately $733.00. 2. A 30-year loan with a 7.75% interest rate if the borrower purchases two discount points. The lender charges 1% of the principal loan amount for each point. The borrower will pay $1000 per point if the borrower chooses this loan. The points lower the interest rate from 8% to 7.75%. The borrower’s monthly principal and interest payments will be $717.00. The borrower will save about $16 per month if the buyer chooses this loan. The borrower needs to determine how long the buyer plans to live in the property to realize a benefit from purchasing the discount points up front rather than paying interest over the life of the loan. At a monthly savings of $16.00, the borrower needs to remain in the property for at least 10 years to recover the $2,000 that the borrower paid for the discount points. The average homeowner lives in a property less than six years. Mortgage loans payments are based on amortization of the loan. An amortized loan is paid off over time. A property owner may say, “I have a 30-year loan,” which means the loan is amortized over 30 years. A borrower makes regular payments of a constant amount and the lender calculates each payment on the remaining loan balance, the initial payments consist mostly of interest. With each payment, the principal loan balance decreases. More of each subsequent payment pays down the principal. In a fully amortized loan, the last payment pays off the loan. A lender originates an amortized fixed rate loan, which means the interest rate does not change over the life of the loan, or an adjustable rate loan, which has a fluctuating interest rate. The initial interest rate on an adjustable rate mortgage (ARM) is usually lower than the rate on a fixed rate mortgage. ARM rates are attached to an index such as a one-year treasury bill. Features of an adjustable rate mortgage may include: 1. Adjustment intervals of one month, six months, three years, or five years. 2. Rate caps for each rate change or rate caps establishing the highest rate that a lender can charge over the life of the loan. 3. Payment caps limiting the amount payments can increase in any given year. 4. Teaser rates for the initial rate period. For example, 5% for the first six months after which the rate is 7.25%. 5. A convertible feature specifying the circumstances under which a borrower may convert the ARM into another mortgage, such as a fixed rate mortgage.

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OTHER TYPES OF LOANS

A balloon loan is a short-term loan with payments amortized over a period longer than the term of the loan. For example, a balloon loan may have payments based on a 30-year amortization but the actual term of the loan is five years. A borrower’s final payment is a balloon payment. A balloon payment is larger than other payments and satisfies the debt in full. The interest rate on a balloon loan is often lower than the rate for a conventional fixed or adjustable rate loan, which makes it attractive to borrowers. Balloon loans benefit lenders because borrowers often refinance before the balloon payment is due and the lender earns fees originating and financing the new loan. A reverse mortgage is a Housing and Urban Development (HUD) loan program that allows older homeowners to withdraw equity from their homes in the form of monthly payments from a private lender to the homeowner. Reverse mortgages are only available for homeowners age 62 and older and the property must be the homeowner’s principal place of residence. The homeowner retains title to the property. The borrower must repay the loan if the borrower sells the home, moves out of the home, breaches the mortgage terms, or dies, in which case the borrower’s estate repays the loan. A bridge loan is a residential financing arrangement in which the buyer obtains a second mortgage on the buyer’s unsold home to pay for a down payment on a new home. A buyer might apply for a bridge loan when a buyer wants to close on a new property but has not yet sold the buyer’s existing property. Because the buyer has not sold the existing property, the buyer does not have the funds to make a down payment on the new property. A buyer pulls equity out of an existing home before it is sold to purchase a new home. Bridge loans are common in real estate transactions because many buyers do not have the funds to purchase a new home before selling the current home.

SOURCES OF FINANCING

There are four common financing sources for buyers who need to finance a real estate transaction: seller financing; conventional financing; nonconforming loans; and government loan programs. Each form of financing has different eligibility guidelines, interest rates, and terms. Licensees are not responsible for finding financing for a buyer but should encourage buyers to meet with lenders early in the transaction to explore eligibility for available financing.

Seller Financing

When a seller finances a transaction, the lending arrangement is between the seller and the buyer, not the buyer and a conventional lender. Two common forms of seller financing are the land contract and a purchase money mortgage. A land contract is seller-financing where a buyer/vendee makes installment payments for the purchase price of the property to a seller/vendor over the term of the contract. This is also known as an installment contract or a contract for deed. Land contracts can be short term where a buyer makes payments to the seller over the course of five years. The payment amounts are amortized over thirty years and a buyer typically owes a balloon payment for the final payment. With this arrangement, a buyer may seek conventional financing before the final payment and convert the seller-financed transaction to one financed with conventional lending. Land contracts can also be long term where a buyer makes identical monthly payments over a term of years. A land contract differs from other financing arrangements because legal title does not pass to the buyer during the term of the contract but passes at the conclusion of the contract when the seller is paid in full. When the parties execute the contract, the buyer obtains equitable title and the seller retains legal title. Equitable title is the right to obtain absolute ownership to a property when legal title is held in another’s name. A party does not have to record a land contract for the contract to be valid but to protect against third party claims, parties should record land contracts. Attorneys, brokers, and parties to a transaction can draft land contracts. 173

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Advantages of a land contract for the seller: 1. Permits the seller to offer financing for a buyer who is not be eligible for conventional financing. 2. Possible tax advantages for the seller if the seller can defer taxes owed as a result of the sale. 3. A seller may be able to negotiate a sale that might not otherwise be possible. 4. The seller retains legal title and equity in the property. 5. The seller may be able to invest a portion of the monthly payments from the buyer and earn interest on the buyer’s payments. 6. Land contracts may be subject to strict foreclosure, which can be a faster process than other foreclosure actions. 7. Potential financial advantages to a seller because the buyer pays interest to the seller rather than to a lender. For example, a seller and a buyer execute a $100,000 60-month land contract with an interest rate of 9%. The buyer’s payments are amortized over 30 years with a final balloon payment. As of the buyer’s 59th payment, the buyer has paid the seller $44,160 in interest and $4,110 in principal. The buyer owes the seller a balloon payment of $95,881 for the 60th payment. The buyer pays the seller a total of $144,160 over the course of the 60-month contract. Disadvantages of a land contract for the seller: 1. A seller runs the risk of getting the property back if the buyer defaults and the property may be in poor condition. 2. If a buyer defaults on the contract, the seller incurs the costs of any legal action necessary to seek payment, start foreclosure, or enforce the contract. 3. If a buyer walks away from the property, the seller must pay legal fees to seek foreclosure and a suit quiet title. 4. A seller is still bound to the property. Advantages of a Land Contract for the Buyer 1. The buyer may be able to finance a purchase even if the buyer is not eligible for conventional financing. 2. The buyer may be able to finance a property for more than the amount a lender was willing to lend to the buyer. 3. The buyer will establish a credit history over the term of the land contract. 4. The buyer gains equity in the property. 5. The buyer may be able to buy with smaller down payment. 6. The buyer may be able to buy with lower monthly payments or a lower interest rate. Disadvantages of a Land Contract for the Buyer 1. The buyer does not get legal title or the title is unmarketable. 2. The buyer risks that the seller will not use the buyer’s payment to pay any existing mortgages. 3. The buyer does not have full equity in the property until title is transferred. 4. Land contracts are subject to strict foreclosure for which there can be a very limited redemption period. 5. The seller retains an interest in the buyer’s property. 6. When the final payment is due, the seller may be missing, bankrupt, or dead.

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A purchase money mortgage is seller-financing where a seller provides a loan to the buyer for a portion of the purchase price. The seller holds a mortgage from the buyer, which is usually a second mortgage to the lender-held first mortgage. A buyer may use a purchase money mortgage to make up the difference between the buyer’s down payment and the amount of the lender-held first mortgage. Parties may refer to this form of seller financing as “the seller taking back a second.” The buyer receives legal title at closing. A lender gives a loan to a buyer for 75% of the selling price. The buyer has a 15% down payment. The seller finances the remaining 10% by granting the buyer a purchase money mortgage.

Conventional Financing

Conventional financing refers to financing between a borrower and a private lender where the lender requires 80% loan-to-value ratio and a borrower has 20% of the purchase price for the down payment. A conventional loan is secured by the real estate and the promissory note is secured by the borrower’s ability to pay. The lender uses the appraisal of the property and the borrower’s credit worthiness to estimate the risk of lending. Generally a lender will require a borrower to have 20% of the purchase price for a down payment on the property but borrowers with a down payment that is less than 20% of the purchase price may be eligible if the borrower purchases private mortgage insurance. Private mortgage insurance insures the top 20% of the loan. This means that the borrower pays an insurance premium that covers the lender’s risk in lending to a borrower with a down payment that is less than 20% of the purchase price of the property. A borrower wants to purchase a property for $100,000. The borrower has only $5,000 for a down payment. The borrower wants a loan for the other 95% of the purchase price. The lender will issue the loan if the borrower purchases private mortgage insurance on $15,000 of the total loan that, coupled with the buyer’s actual down payment of $5,000, would be equal to the conventional down payment of 20% of the purchase price. The lender takes the risk that the property will sell for at least $80,000 if the borrower defaults. PMI has separate underwriting guidelines. When a lender requests private mortgage insurance, the lender will submit the borrower’s loan application, credit report, and appraisal to the insurance provider. A borrower normally pays a fee for the first year’s insurance premium at closing. A borrower also pays a monthly fee while the insurance is in place. After a borrower has 20% equity in the property, the borrower can request the lender remove the private mortgage insurance.

Nonconforming Loans

Nonconforming loan is a broad term that refers to any loan that does not conform to the strict guidelines of conventional loans, such as a 20% down payment. Borrowers who do not qualify for conventional loans can look to nonconforming loans to finance a transaction. Ineligibility for conventional loans can be due to lack of credit history, insufficient down payment, or inadequate debt-to-income ratio. The terms of nonconforming loans vary dramatically based on the lender and the individual applicant.

Government Financing

If a borrower is eligible for government financing, the government insures or guarantees the funds that the lender is issuing to the borrower. If a borrower is unable to repay a loan, the government insurance compensates for the loss the lender incurs from the borrower’s default. Because of the government insurance, lenders are more liberal when considering a borrower’s eligibility because the lender’s risk is reduced. Government financing program eligibility guidelines and the funding process vary with the program and licensees should direct buyers with government financing questions to participating lenders.

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Federal Housing Administration Loans As a result of the housing and lending crises brought on by the Great Depression, in 1934 the federal government created the Federal Housing Administration (FHA) to provide mortgage insurance to private lenders to induce lenders to lend to borrowers who might not be eligible for conventional financing. The borrower’s ineligibility for conventional financing often stems from an insufficient 20% down payment, which does not prohibit eligibility for an FHA loan. FHA Loan Features 1. The Department of Housing and Urban Development (HUD) operates the FHA loan program. 2. The FHA does not issue loans to borrowers but insures loans made by private lending institutions. The insurance protects the lender against potential loss if the borrower defaults on the loan. 3. A lender can charge an insurance premium at closing. The borrower will pay a mortgage insurance premium (MIP) on the outstanding debt as part of the monthly payment. Once a borrower has 22% equity in the home, the borrower does not have to continue to carry the insurance. The FHA may refund premiums when the house is sold or the loan is refinanced. 4. Before issuing insurance on a loan, the FHA will require an appraisal that includes a basic survey of the physical aspects of the home. The appraiser must disclose defects to the buyer. The FHA will generally require a buyer to repair defects prior to closing. An FHA appraisal may be stricter than other appraisals. For example if an appraisal noted chipping or peeling paint in target housing, the FHA might require a buyer to repair this before closing due to the lead-based paint concern. If the borrower is receiving an FHA loan, a separate home inspection contingency must be included. The licensee needs to be aware of this fact to avoid later complications. 5. The maximum loan amount is based upon the appraisal or the purchase price, whichever is less. If the purchase price exceeds the FHA-appraised value, the buyer may pay the difference in cash as part of the down payment. In addition, the FHA sets maximum loan amounts for various parts of the country. As of July 2016, the FHA mortgage limits in Wisconsin for single-family homes statewide range from approximately $271,050 to $365,700. To learn more about a specific community’s mortgage limit, please visit www.hud.gov and search Wisconsin. 6. FHA interest rates are set by the open market. 7. Buyer credit ratings are generally more flexible in that the FHA allows gifts to be used as down payments and a buyer can carry more debt than with conventional financing. 8. A FHA lender can charge points. Payment of fees, points, and charges are nego­tiable between buyer and seller, although they are usually paid by the buyer. 9. FHA regulations set standards for type and construction of buildings. The cost of repairs required by the appraiser may be negotiated between the buyer and seller. 10. FHA allows up to 100% of the closing costs to be financed with the loan. 11. FHA lends on condominiums if a certain ratio of owner-occupied units to tenant-occupied units exists. Lenders who work with FHA loans have a list of the FHA-approved condominium developments in specific areas. Veterans Administration Loans Veterans Administration loans are a product of the GI Bill of Rights, which Congress enacted in 1944. One of the features of this program is to provide returning veterans with lowinterest loans for the purchase or construction of homes, mobile homes or condominiums. The advantage of the VA loan is the ­guarantee feature that promises lenders that in the event of a deficiency from a ­foreclosure the lender is compensated by the VA for any losses incurred in the foreclosure and subsequent sale of the property up to the limit of the guarantee.

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VA Loan Features 1. The applicant must be a veteran and must be eligible based on the veteran’s service record. 2. The VA must issue a Certificate of Eligibility, which sets the maximum loan guarantee amount to which the veteran is entitled. 3. Veterans and non-veterans can assume VA loans. If a non-veteran assumes the loan, the veteran is liable for the contract unless the VA releases the veteran from the lending contract. A veteran may not be eligible for future VA lending until the non-veteran repays the assumed loan amount. If another veteran assumes the loan, the veteran can use the veteran’s own eligibility for the loan, which would permit future eligibility for the other veteran. Whether the VA allows another borrower to assume a VA loan will depend on the origination terms of the loan. 4. A borrower will pay origination fees and can negotiate responsibility for closing costs with the seller. 5. A VA appraiser conducts an appraisal and issues a Certificate of Reasonable Value (CRV) for the property stating the current market value based on the appraisal. If the purchase price is greater than the amount on the CRV, the veteran can pay the difference in cash. The VA appraiser may condition the CRV on repairs to the property that a purchaser must complete before closing. 6. The private lender and the open mortgage market determine the loan’s interest rate. 7. Unremarried spouses of veterans that died of a service-related injury or illness as well as unremarried spouses of veterans missing in action may be eligible. 8. The loan must be for the veteran’s primary residence. 9. The VA guarantees an amount of the loan but does not set limits on the amount of the loan. A veteran may borrow up to four times of the guarantee amount and may not need a down payment. United States Department of Agriculture (USDA) Rural Development Loans The USDA’s Rural Development program is a federal lending program under the Department of Agriculture. Rural Development offers assistance to aid low-income and moderate-income rural residents p ­ urchase, construct, repair, or relocate a dwelling and related facilities. A borrower must qualify financially and if a borrower’s income increases above eligibility limits, the borrower will have to refinance the purchase through a different source. Rural Housing provides two categories of loans. 1. USDA Rural Housing Guaranteed Loans: The private lender issues and services a 30-year loan and the USDA guarantees 90% of the loan in the case of borrower default. Under the terms of the program, an individual may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment. Applicants for loans may have an income up to 115% of the median income for the area. Applicants must not have access to adequate housing but must be able to afford the mortgage payments, including taxes and insurance, and have reasonable credit histories. 2. USDA Rural Housing Direct Loans: The USDA issues the loan directly to the borrower. Most eligible borrowers must have income below 80% of the median income level for the community. To be eligible, an applicant must be without access to adequate housing and be able to afford the mortgage payments including taxes and insurance. Eligible borrowers can use the loans to purchase a home, build, repair, renovate or relocate a home, or to purchase and prepare construction sites for new construction.

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THE PRIMARY MARKET VERSUS THE SECONDARY MARKET Loans originate in the primary market. The primary market is made up of banks, savings and loans, insurance companies, mortgage banking companies, credit unions, and mortgage brokers. Participants in the primary mortgage market may retain the loans they originate or sell the loans. Primary mortgage market participants sell loans to raise capital for future lending. For example, a lender has issued $1,000,000 in loans. The lender may keep $100,000 of the debt and sell $900,000 of the debt to the secondary mortgage market. The lender now has $900,000 to issue new loans and still earns interest on the $100,000 of retained debt. Lenders also profit through finance charges such as discount points and origination fees, recurring income such as interest earned on loans, and services fees for processing payments, paying real estate taxes and insurance, and providing tax information to the IRS. The secondary market is the market for sales of existing mortgages. Participants in the secondary mortgage market invest in existing mortgages as liquid assets. An investor in the secondary mortgage market purchases pools of mortgages from the primary market and the participants in the primary mortgage market use the invested capital to originate additional loans. If demand for secondary market mortgages falls, the amount of money available for primary market loan origination also falls, which may increase interest rates. If demand for secondary market mortgages increase, primary market participants will have more access to capital for originating loans and interest rates may decrease. The secondary market also standardizes loan requirements. All lenders selling loans on the secondary market must use standardized forms such as appraisal reports and closing statements as well as have their borrowers meet other standardized criteria. The federal government has an active role in the secondary mortgage market operating through three major entities: the Federal National Mortgage Association (Fannie Mae, FNMA); the Government National Mortgage Association (Ginnie Mae, GNMA); and the Federal Home Loan Mortgage Corporation (Freddie Mac, FHLMC). Ginnie Mae, Fannie Mae, and Freddie Mac provide financial services and products for low-income, moderate-income, and middle-income families that want to buy homes.

Secondary Market Underwriting Guidelines The following factors are taken into consideration when determining a borrower’s qualifications for a loan. 1. Credit score: A credit score is a statistical method of assessing the credit risk of a loan applicant. Credit scores range from 300 to 850 and a lender usually considers an applicant with a ­higher score as less of a risk. A less risky applicant will receive loans with lower interest rates and may need less of a down payment than a riskier applicant. 2. Credit payment history: Underwriters generally will review the last seven years of an applicant’s credit history, focusing on the following indicators or creditworthiness. a) Mortgage and rent: an applicant’s history should reflect no 30-day late rent or mortgage payments in the last 12 months. b) Car payments: An applicant’s history should reflect no 60-day late payments. c) Credit cards: An applicant’s history should reflect no 60-day late payments. d) Bankruptcy: Lenders generally require a period of years from an applicant’s bankruptcy discharge date before the applicant is eligible for lending. The time between the discharge date and eligibility depends on the source of the loan. Applicants with past bankruptcies should consult a lender for current lending requirements.

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e) F  oreclosure: Lenders generally require a period of years from an applicant’s foreclosure date before the applicant is eligible for lending. The time between the discharge date and eligibility depends on the source of the loan. Applicants with past foreclosures should consult a lender for current lending requirements. 3. Income: An applicant’s income must be sufficient to repay the loan and any recurring debts such as car payments, charge cards, other loans, or spousal support. A lender considers income if the applicant establishes consistent working patterns producing the income and there is a reasonable expectation that the income will continue. Generally, a lender will verify at least a two-year job history and the lender will verify any income the applicant reported. A lender will consider part-time wages and overtime wages, pensions, retirement benefits, and wages from seasonal or secondary employment if an applicant can establish sufficient history and reliability for the income. If an applicant’s sole income is from commissions, a lender will generally verify the income from the applicant’s past two years’ tax returns. If part of an applicant’s income is from commissions, a lender might only require W-2 forms and a verification of employment. A lender may require additional documentation for self-employed applicants such as tax returns, ­current profit and loss statements, a current balance sheet, and a business credit report. 4. Debt-to-income ratio: Underwriters use an applicant’s debt-to-income ratio to determine whether a borrower can qualify for a mortgage. The ratio is a measurement of a borrower’s ability to repay a mortgage debt based on the borrower’s income. 5. D  own payment: Lenders want to see a “sourced and seasoned” down payment. A lender will need to verify the funds belong to the applicant and that the applicant has held the funds in an institution for at least three months. Funds that the applicant saved under a mattress or withdrew as a credit card cash advance are not “sourced and seasoned.” Each loan program requires a different down payment amount and lenders will help applicants determine this amount. The relationship between the loan amount, the down payment, and the value of a property is the loan-to-value ratio. Fannie Mae requires a 95% loan-to-value ratio. For a property with a purchase price of $120,000, a buyer can receive a loan for $114,000, which is 95% of the purchase price. ($120,000 x .95 = $114,000). The difference between the loan amount and the purchase price is what a buyer must provide as a down payment, which in this case is $6,000. ($120,000 - $114,000 = $6,000).

Mortgage Fraud

Licensees need to be aware of situations that might constitute mortgage fraud and avoid these transactions. Mortgage fraud occurs when a person misrepresents or omits information on a loan application with the intent to secure lending that a lender would not extend based on a truthful application. Parties may commit mortgage fraud by preparing two offers, one representing the actual terms of the transaction and another prepared for the lender to induce the lender to extend more credit than a party needs to complete the transaction. Parties can also commit mortgage fraud by inflating a sales price or by misrepresenting the value of personal property a party is including in the a property’s purchase price. Any party in a real estate transaction including a seller, buyer, real estate licensee, mortgage broker or banker, appraiser, and loan originator who has knowledge of or participates in misrepresenting facts to a lender can be guilty of mortgage fraud.

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Examples of Mortgage Fraud 1. A buyer asks a licensee to rewrite an offer to present to a lender stating the purchase price of a property at the $79,000 appraised value rather than the actual $72,000 offer price. The buyer wants to obtain the additional financing and will keep $5,000 and split the remaining $2,000 with the licensee and the seller as a “thank-you” for assisting in the transaction. 2. A buyer offered $75,000 and asked the seller to pay $3,000 toward the buyer’s closing costs. The seller countered for $79,900. The mortgage broker says that the underwriter will not lend if the seller is paying closing costs and there is a price adjustment in a counter-offer. The mortgage broker wants the real estate licensee to rewrite the offer to show a $79,900 sales price and backdate the new offer to the date of acceptance in the original offer. Licensees cannot draft or use any document that the licensee knows falsely portrays an interest in real estate. If a licensee believes that any party is committing or attempting to commit fraud in a transaction, the licensee should adhere to the following guidelines. 1. Prepare offers accurately and inclusively reflecting true purchase prices and dates. If a party asks a licensee to prepare a new offer, the licensee should state that the new offer supersedes and replaces the original offer and identify the original offer by date and purchase price and include a statement that the offering party is withdrawing and cancelling the original offer. 2. If a transaction participant asks a licensee to prepare a document containing inaccurate information, a licensee should ask for the request in writing. 3. If a licensee is aware that a party is misrepresenting information that could be the basis of mortgage fraud, the licensee should issue a letter warning the parties, the lender, and other participants of the potential fraud and urge them to consult with their attorneys to correct the misrepresented information. If the parties do not correct the misrepresentation, the licensee should cease participation in the transaction. 4. Report apparent fraud to the Department of Financial Institutions or other appropriate agencies. Provide extensive detail and copies of relevant documents.

CALCULATING A BUYER’S MORTGAGE PAYMENT

To complete a financing contingency in an offer to purchase, a licensee must know how to calculate a monthly mortgage payment. A borrower’s mortgage payment depends on the amount borrowed, the finance charges, and the amortization schedule. To calculate a mortgage payment, refer to the amortization chart located in the back of this book. Find the term of the loan and the interest rate to determine the factor for calculating the mortgage payment. Using the Amortization Chart A person borrows $100,000, to be repaid over 30 years at 8.5% interest. Use the amortization chart to find the factor for 30 years at 8.5% interest. The factor is 7.69. Calculating the Mortgage Payment Mortgage Payment = Amount Borrowed x Factor 1000 To calculate a monthly mortgage payment for a $100,000 loan at 11% interest over a 30-year term, first find the factor using the loan term of 30 years and the interest rate of 11%. The factor is 9.52. Then multiply $100,000 by 9.52 and divide the product by 1000. The monthly mortgage payment is $952.00. $952.00 = $100,000 x 9.52 1000

180

Financing - 11

FINANCING LEGISLATION The Consumer Credit Protection Act, Truth in Lending Act, and Regulation Z The Consumer Credit Protection Act is composed of several sections regulating consumer credit. Title I of the Act is the Truth in Lending Act (TILA). TILA requires creditors to disclose to consumers the true cost of obtaining credit and allows consumers to compare ­credit costs and terms of a loan. Regulation Z is the section of the federal administrative code that implements the provisions of TILA. For credit to fall under Regulation Z requirements, it must involve a finance charge or be payable in more than four installments by written agreement. If credit is regulated by Regulation Z, disclosure must include the financing charges, the annual ­percentage rate, the total amount financed, and the total number of payments. Finance charges are the costs a consumer will pay directly or i­ndirectly for obtaining credit. Finance charges include interest, loan origination fees, discount points, and service fees. Real estate expenses that a consumer pays regardless of whether credit is extended such as fees for legal services, deed preparation, surveys, or credit reports are not finance charges. The Truth in Lending Act assumes that the more credit a borrower can obtain, the less protection that consumer needs. Regulation Z applies to all consumer loans for $25,000 or less that are for personal, family, household, or agricultural purposes. Regulation Z also applies to residential loans that are secured by a dwelling, new mortgage loans, refinanced loans, or consolidated loans. Regulation Z does not apply to business or commercial loans, consumer credit transactions over $25,000 not secured by a dwelling, or loans made to an artificial entity, such as a corporation.

For example, Regulation Z applies to a car loan for $10,000, an agricultural loan for $20,000 and a first mortgage loan of $130,000. Regulation Z does not apply to a car loan for $30,000, an agricultural loan for $50,000, and a business loan for $5,000. All creditors must comply with Regulation Z. A creditor is defined as a party who arranges for or extends credit more than 25 times in the preceding calendar year or more than five times in the preceding calendar year if the transaction is secured by a dwelling. The following are examples of a creditor: 1. A financial institution such as a bank, credit union or insurance company. 2. A contractor performing work and taking lien rights. 3. A property owner selling properties under a land contract. Regulation Z regulates credit advertising. If an advertisement contains a triggering term, the advertisement must also disclose the full terms of the offered financing. The goal is to ensure that a consumer has all the important terms of a credit plan, not just the most attractive ones. Examples of triggering terms: 1. The amount of the down payment, expressed as either a percentage or dollar amount (10% down, $1,000 down); 2. The amount of any payment, expressed as either a percentage or dollar amount (less than $600, $210.95 per month); 3. The number of payments or the period of repayment (up to four years to pay, 48 months to pay); and 4. The amount of any finance charge (financing costs less than $300 per year).

181

REAL ESTATE SALES

Some statements about credit terms are too general to trigger additional disclosures. Examples of terms that do not trigger the required disclosures include: 1. No down payment; 2. Easy monthly payments; 3. Pay weekly; or 4. Terms to fit your budget. A licensee’s advertisement stating the down payment amount for a locally available mortgage does not violate Regulation Z.

Real Estate Settlement and Procedures Act (RESPA)

The purpose of Real Estate Settlement and Procedures Act (RESPA) is to ensure that borrowers in mortgage loan transactions have knowledge of all settlement costs. RESPA applies to all federally-related first mortgages on residential one-to-four family properties. RESPA forbids paying someone for the mere referral of business. Settlement service providers cannot give gifts or fees to individuals for the referral of business to the settlement service provider. For example, it is a violation of RESPA if a mortgage brokerage firm pays a real estate licensee $200 for every loan made to a consumer who the real estate licensee referred. Under RESPA, a person cannot give or receive fees or kickbacks for referral of settlement services, or give or receive a split or percentage of settlement charges other than for services actually provided. Paying or receiving a fee or a “thing of value” for the referral of business related to a mortgage loan settlement without rendering a service is illegal under RESPA. Receiving compensation for referring a buyer or ­borrower to a settlement service provider is prohibited and a settlement service provider cannot split or pay a settlement charge unless the settlement service provider actually provided services in exchange for the payment. RESPA defines real estate settlement services. Settlement services include any services related to: (1) the origination, processing, or funding of a federally-related mortgage loan; (2) mortgage ­broker services such as counseling, taking applications, obtaining verifications and appraisals, and lender-borrower communications; (3) title company services; (4) an attorney’s legal services; (5) closing document preparation; (6) credit reports and appraisals; (7) property inspections; (8) conducting the settlement; (9) mortgage insurance; (10) hazard, flood or casualty insurance, and homeowner warranties; (11) mortgage life, disability or similar insurance; (12) real property taxes and assessments; and (13) real estate brokers and agents. RESPA prohibits any agreement or understanding that a party will give a thing of value in exchange for a settlement service referral. The parties do not need to have a written or verbal agreement. Parties can establish an agreement by practice, pattern, or course of conduct. Licensees must abide by RESPA rules and if a licensee is concerned about a potential RESPA violation, the licensee should speak to the supervising broker and consult an attorney if necessary.

TILA/RESPA Integrated Disclosure (TRID) TRID requires a lender to provide a borrower with disclosure documents related to the borrower’s loan. 1. The lender must provide a loan estimate within three business days of the borrower’s application. 2. The lender must provide a closing disclosure to the borrower at least three business days before closing.

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12

Other Approved Forms REEB 16

Chapter Overview There are approved forms, other than the offer to purchase, that a licensee will use in transactions. Licensees will use the approved forms discussed in this chapter in many real estate transactions.

Important Terminology WB-24 Option to Purchase WB-25 Bill of Sale WB-40 Amendment to Offer to Purchase WB-41 Notice Relating to Offer to Purchase WB-42 Amendment to Listing Contract WB-44 Counter-Offer WB-45 Cancellation Agreement and Mutual Release WB-46 Multiple Counter-Proposal

WB-44 COUNTER-OFFER

A

counter-offer serves as a rejection of the offer and a submission of a new offer. The legal effect of writing and delivering a counter-offer is the same as rejecting the previous offer and presenting a new offer to the party who submitted the previous offer. Rather than rejecting an offer and drafting a new offer, using counter-offers permits parties to avoid the unnecessary drafting of an offer with terms nearly identical to the previous offer. Using counter-offers permits the countering party to counter only the terms that vary from the original offer. All other terms remain unchanged from the original offer and are incorporated by reference.

The party drafting a counter-offer identifies the number of the counter-offer and the drafting party at the top of the form. Immediately after, there is a note with instructions on how to number the counter-offer. Approved by Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date) Approved by Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-44 COUNTER-OFFER

Counter-Offer No. __________ by (Buyer/Seller) STRIKE ONE WB-44 COUNTER-OFFER NOTE: Number this Counter-Offer sequentially, e.g. Counter-Offer No. 1 by Seller, Counter-Offer No. 2 by Buyer, etc. Counter-Offer No. __________ by (Buyer/Seller) STRIKE ONE NOTE: this dated Counter-Offer sequentially, e.g. No.__________________________________ 1 by Seller, Counter-Offer No. 2 by OfferNumber to Purchase ____________________ andCounter-Offer signed by Buyer 1 The etc. Lines 1-6 2 forBuyer, purchase of real estate at _______________________________________________________________________ 3 _______________________________________________ is rejected and the following Counter-Offer is hereby made. 1 The Offer to Purchase dated ____________________ and signed by Buyer __________________________________ 4 CAUTION: This Counter-Offer does not include the terms or conditions in any other counter-offer or multiple 2 for purchase of real estate at _______________________________________________________________________ 5 counter-proposal unless incorporated by reference. 3 _______________________________________________ is rejected and the following Counter-Offer is hereby made. 6 All terms and conditions remain the same as stated in the Offer to Purchase except the following: _________________ 4 CAUTION: This Counter-Offer does not include the terms or conditions in any other counter-offer or multiple 7 ____________________________________________________________________________________________________________________ 5 counter-proposal unless incorporated by reference. 8 ____________________________________________________________________________________________________________________ 6 All terms and conditions remain the same as stated in the Offer to Purchase except the following: _________________ 9 ____________________________________________________________________________________________________________________ 7 ____________________________________________________________________________________________________________________ The original offer to purchase date is inserted on line 1 on the first blank followed by the buyer’s 10 ____________________________________________________________________________________________________________________ 8 ____________________________________________________________________________________________________________________ name(s). The address of the subject property is inserted on line 2. The blank lines from lines 7-27 11 ____________________________________________________________________________________________________________________ 9 ____________________________________________________________________________________________________________________ 12 ____________________________________________________________________________________________________________________ provide the space to insert the desired terms. 10 ____________________________________________________________________________________________________________________ 13 ____________________________________________________________________________________________________________________ 11 ____________________________________________________________________________________________________________________ 14 ____________________________________________________________________________________________________________________ 12 ____________________________________________________________________________________________________________________ 15 ____________________________________________________________________________________________________________________ 13 ____________________________________________________________________________________________________________________ 183 16 ____________________________________________________________________________________________________________________ 14 ____________________________________________________________________________________________________________________ 17 ____________________________________________________________________________________________________________________ 15 ____________________________________________________________________________________________________________________ 18 ____________________________________________________________________________________________________________________ 16 ____________________________________________________________________________________________________________________

123 ____________________________________________________________________________________________________________________ _______________________________________________ is rejected and the following Counter-Offer is hereby made. 20 134 ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ This Counter-Offer does not include the terms or conditions in any other counter-offer or multiple 21 CAUTION: ____________________________________________________________________________________________________________________ 14 ____________________________________________________________________________________________________________________ 5 counter-proposal unless incorporated by reference. 22 ____________________________________________________________________________________________________________________ 15 ____________________________________________________________________________________________________________________ REAL ESTATE SALES 6 All terms and conditions remain the same as stated in the Offer to Purchase except the following: _________________ 23 16 ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ 7 ____________________________________________________________________________________________________________________ 24 17 ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ 8 ____________________________________________________________________________________________________________________ 25 18 ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ 9 ____________________________________________________________________________________________________________________ 26 Lines 28-35 19 ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ 10 ____________________________________________________________________________________________________________________ 27 ___________________________________________________________________________________________________________________ 20 ____________________________________________________________________________________________________________________ 11 ____________________________________________________________________________________________________________________ 28 attached _____________________________________________________ is/are made part of this Counter-Offer. 21 The ____________________________________________________________________________________________________________________ 12 ____________________________________________________________________________________________________________________ 29 warranties, covenants and representations made in this Counter-Offer survive the closing of this transaction. 22 Any ____________________________________________________________________________________________________________________ 13 ____________________________________________________________________________________________________________________ 30 This Counter-Offer is binding upon Seller and Buyer only if a copy of the accepted Counter-Offer is delivered to the 23 ____________________________________________________________________________________________________________________ 14 ____________________________________________________________________________________________________________________ 31 Party making the Counter-Offer on or before ________________________________________________________ 24 ____________________________________________________________________________________________________________________ 15 ____________________________________________________________________________________________________________________ 32 (Time is of the Essence). Delivery of the accepted Counter-Offer may be made in any manner specified in the Offer to 25 ____________________________________________________________________________________________________________________ 16 ____________________________________________________________________________________________________________________ 33 Purchase, unless otherwise provided in this Counter-Offer. 26 ____________________________________________________________________________________________________________________ 17 ____________________________________________________________________________________________________________________ 34 NOTE: The Party making this Counter-Offer may withdraw the Counter-Offer prior to acceptance and delivery 27 ___________________________________________________________________________________________________________________ 18 ____________________________________________________________________________________________________________________ 35 as provided lines 30-33. 28 The attached at _____________________________________________________ is/are made part of this Counter-Offer. 19 ____________________________________________________________________________________________________________________ 29 Any warranties, covenants and representations made in this Counter-Offer survive the closing of this transaction. 36 ____________________________________________________________________________________________________________________ This Counter-Offer was drafted by _________________________________________ on _______________________ 20 TheCounter-Offer counter-offer has the same acceptance and delivery requirements as stated in the offer 30 This is binding upon Seller and Buyer only if a copy of the accepted Counter-Offer is delivered to the to 37 ____________________________________________________________________________________________________________________ Licensee and Firm ▲ Date ▲ 21 purchase. happens when________________________________________________________ all parties have signed the offer. Binding acceptance 31 Party making Acceptance the Counter-Offer on or before 22 ____________________________________________________________________________________________________________________ 38 ___________________________________________ (x) to ____________________________________________ occurs when the counter-offer is delivered back the party byinthe specified ontheline 31. 32 (x) (Time is of the Essence). Delivery of the accepted Counter-Offer may be made any date manner specified in Offer to A 23 ____________________________________________________________________________________________________________________ 39 Signature of Party Making Counter-Offer ▲ Date ▲ Signature of Party Accepting Counter-Offer ▲ Date ▲ 33 Purchase, unless otherwise provided in this Counter-Offer. counter-offer, just like an offer, may be verbally withdrawn prior to binding acceptance. 24 ____________________________________________________________________________________________________________________ 40 name Printthe name 34 Print NOTE: The Party making this Counter-Offer may withdraw Counter-Offer prior to acceptance and delivery 25 ____________________________________________________________________________________________________________________ Lines 36-46 35 as provided at lines 30-33. 26 ____________________________________________________________________________________________________________________ 41 (x) ___________________________________________ (x) ____________________________________________ 27 ___________________________________________________________________________________________________________________ 36 Counter-Offer was drafted by _________________________________________ on Counter-Offer _______________________ 42 This Signature of Party Making Counter-Offer ▲ Date ▲ Signature of Party Accepting ▲ Date ▲ 28 The attached _____________________________________________________ is/are made part 37 Licensee and Firm ▲ Date ▲ of this Counter-Offer. 43 Print name Print name 29 Any warranties, covenants and representations made in this Counter-Offer survive the closing of this transaction. 38 ___________________________________________ 30 (x) This Counter-Offer was is binding uponbySeller and Buyer only if(x)a ____________________________________________ copy of the accepted Counter-Offer is delivered to the 44 This Counter-Offer presented __________________________________________ on ____________________ 39 Signature of Party Making Counter-Offer ▲ ▲ Signature of Party Accepting Counter-Offer ▲ Date ▲ 31 Party making the Counter-Offer on or before Date ________________________________________________________ 45 Licensee and Firm ▲ Date ▲ 40 Print name Print name 32 (Time is of the Essence). Delivery of the accepted Counter-Offer may be made in any manner specified in the Offer to 46 Purchase, This Counter-Offer is (rejected)(countered) ONE (Party’s Initials) ___________ (Party’s Initials) __________ 33 unless otherwise provided in thisSTRIKE Counter-Offer. 41 ___________________________________________ (x) ____________________________________________ 34 (x) NOTE: The Party making this Counter-Offer may withdraw the Counter-Offer prior to acceptance and delivery 47 NOTE: Provisions from aCounter-Offer previous Counter-Offer may be included by reproduction of the entire 42 Signature of Party Making ▲ Date ▲ Signature of Party Accepting Counter-Offer ▲ provision Date ▲ or 35 as provided at lines 30-33. 48 incorporation by reference. Provisions incorporated by reference may be indicated in the subsequent Counter43 Print name Print name 36 by of _________________________________________ on _______________________ 49 This OfferCounter-Offer by specifyingwas thedrafted number the provision or the lines containing the provision. In transactions involving 37 Licensee and Firm ▲ Date ▲ 50 moreCounter-Offer than one Counter-Offer, theby Counter-Offer referred to should be clearly specified. 44 This was presented __________________________________________ on ____________________ 45 38 39 46 40 47 48 41 49 42 50 43

Licensee and Firm (x) ▲ ____________________________________________ Date ▲ (x) ___________________________________________ Signature of Party Making Counter-Offer ▲ STRIKE Date ▲ (Party’s Signature of Party Accepting(Party’s Counter-Offer Date ▲ This Counter-Offer is (rejected)(countered) ONE Initials) ___________ Initials) ▲ __________ Print name Print name NOTE: Provisions from a previous Counter-Offer may be included by reproduction entire or Line 36 is for licensee identification and the date of drafting. The blanksofonthethe left provision side of lines incorporation by reference. Provisions incorporated by reference may be indicated in the subsequent Counter(x) (x) ____________________________________________ 38___________________________________________ and 41 are for the signature of the party making the counter-offer and the date. The blanks Offer by specifying the number of the ▲ provision or▲the lines containing provision. In transactions involving Signature of Party Making Counter-Offer Date Signature of Partythe Accepting Counter-Offer ▲ Date ▲ on the right side of lines 38 and 41 are for the party accepting the counter offer. The licensee morename than one Counter-Offer, the Counter-Offer referredPrint to should be clearly specified. Print name

46

This Counter-Offer Lines 47-50 is (rejected)(countered) STRIKE ONE (Party’s Initials) ___________ (Party’s Initials) __________

47 48 49 50

NOTE: Provisions from a previous Counter-Offer may be included by reproduction of the entire provision or incorporation by reference. Provisions incorporated by reference may be indicated in the subsequent CounterOffer by specifying the number of the provision or the lines containing the provision. In transactions involving more than one Counter-Offer, the Counter-Offer referred to should be clearly specified.

presenting the counter-offer fills out line 44. The party who receives the counter-offer accepts theCounter-Offer counter-offer, it,__________________________________________ or rejects. If the party wants to reject the on counter-offer or counter 44 This was counters presented by ____________________ language 45 back, the party strikes the inapplicable Licensee and Firm ▲ and initials the choice on line Date 46. ▲

The final terms of an offer involving counter-offers are the terms in the original offer and the final counter-offer. The contract does not include terms of intervening counter-offers unless those terms are explicitly included in the final counter-offer or included by reference to the number of the counter-offer with the desired terms. There is not a limit on the number of counter-offers parties can use in a transaction. Licensees must be careful to make sure the final terms of the transaction include any desirable terms of intervening counter-offers that the parties intended to be included in the final terms.

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Other Approved Forms - 12

WB-46 MULTIPLE COUNTER-PROPOSAL Approved by Wisconsin Department of Regulation and Licensing 11-1-09 (Optional Use Date) 3-1-10 (Mandatory Use Date)

WB-46 MULTIPLE COUNTER-PROPOSAL 1 A Multiple Counter-Proposal is being made by Seller to one or more other prospective buyers. The terms of this 2A Multiple may Multiple differ from Counter-Proposal the terms of multiple counter-proposals being submitted to other prospective seller Counter-Proposal uses the WB-46 as a way to propose transaction terms to 3 buyers. This Multiple Counter-Proposal is not binding on Seller or Buyer until Seller’s binding acceptance per lines 45-47. prospective buyers. The multiple counter-proposal gives a seller a viable, legal method to negotiate 4 Seller or Buyer may withdraw their Multiple Counter-Proposal or accepted Multiple Counter-Proposal, at any time prior to prospective 5with binding acceptancebuyers per lineswithout 45-47. committing to a particular buyer’s offer. 6 The Offer to Purchase dated ________ and signed by Buyer, _____________________________________________, for 7A purchase of real estate at ___________________________________________________________________________________ seller can use multiple counter-proposals to issue non-binding proposals to prospective buyers. 8 is rejected and the following Multiple Counter-Proposal is made. All terms and conditions remain the same as stated in the The proposal is a statement of terms a seller wants a buyer to include in an offer. For example, a 9 Offer to Purchase except the following: [CAUTION: This Multiple Counter-Proposal does not include the terms or receives good offersor from three buyers. A unless seller incorporated can use multiple counter-proposals to 10seller conditions in anythree other counter-offer multiple counter-proposal by reference.] 11negotiate ______________________________________________________________________________________________ with the buyers. A seller could issue one proposal suggesting a different purchase price, 12another ______________________________________________________________________________________________ requesting earnest money, and no proposal to the third buyer. A seller does not have to 13

______________________________________________________________________________________________

issue proposals to all buyers and can customize each proposal based on the buyer’s specific offer. ______________________________________________________________________________________________ If any of the buyers agree to the seller’s proposals, the buyer signs the proposal and returns it to 15 ______________________________________________________________________________________________ 16the ______________________________________________________________________________________________ seller. The seller is not bound by any of the returned proposals. If a seller likes the terms of an 17offer ______________________________________________________________________________________________ coupled with Department a buyer’s accepted proposal, the seller signs it and delivers it back to the buyer. Approved by Wisconsin of Regulation and Licensing 18 ______________________________________________________________________________________________ 11-1-09 (Optional Use Date) 3-1-10 (Mandatory Use Date) There is now binding acceptance of the buyer’s offer including the terms of the accepted proposal. 19 ______________________________________________________________________________________________ 20 ______________________________________________________________________________________________ Lines 1-10 WB-46 MULTIPLE COUNTER-PROPOSAL 14

21 22 23 24 25 26 27 28 29

Any warranties, covenants and representations made in this Multiple Counter-Proposal survive the closing of this transaction. This Multiple Counter-Proposal by Seller will expire and bemade null and void unless a copy of the approved Multiplebuyers. Counter-Proposal 1 A Multiple Counter-Proposal is being by Seller to one or more other prospective The terms(see of this lines 31-33) is delivered to Sellermay in any manner Offer tocounter-proposals Purchase on or before (Timeprospective is of the 2 Multiple Counter-Proposal differ fromauthorized the termsinofthe multiple being submitted to other 3 buyers.This ThisMultiple Multiple Counter-Proposal not binding on Seller Buyer until Seller’s binding acceptance per lines 45-47. Essence). Counter-Proposal wasisdrafted on _________ by or _________________________________________________. 4 Seller or Buyer may withdraw their Multiple Counter-Proposal or accepted Multiple Counter-Proposal, at any time prior to Date Licensee and Firm ▲ 5 binding acceptance per lines 45-47. (x) 6 The Offer to Purchase dated ________ and signed by Buyer, _____________________________________________, for Seller’s Signature Printestate Name at Here ` Date ▲ 7 purchase of▲real ___________________________________________________________________________________ 8 is rejected and the following Multiple Counter-Proposal is made. All terms and conditions remain the same as stated in the (x) 9 Offer to Purchase except the following: [CAUTION: This Multiple Counter-Proposal does not include the terms or Seller’s Signature ▲ Print Name Here ` Date ▲ 10 conditions in any other counter-offer or multiple counter-proposal unless incorporated by reference.]

30 11 ______________________________________________________________________________________________ APPROVAL BY BUYER 12 ______________________________________________________________________________________________ 31 This Multiple Counter-Proposal by Seller is approved by Buyer. Approval of this Multiple Counter-Proposal is not binding on Buyer 13 ______________________________________________________________________________________________ The first of the multipleof counter-proposal indicates that thebyseller making one 32 or Seller until line binding acceptance this approved Multiple Counter-Proposal Selleris (per lines proposals 45-47) on ortobefore 14 ______________________________________________________________________________________________ or more other prospective buyers. If a (seller a proposal one buyer, the seller must 33 ________________________________, ___________ Time is is of issuing the Essence). NOTE: If to thejust above Multiple Counter-Proposal by 15 ______________________________________________________________________________________________ 34 Seller is not approved by Buyer inthat its entirety, do not use this form for a counter-offer by Buyer. Instead, submit a Counterstrike language implying the seller issued proposals to other buyers. Absent the modification, 16 ______________________________________________________________________________________________ 35 Offer (WB-44) or a new offer to purchase. a buyer could misunderstand the number of other buyers with which a seller is negotiating and 17 ______________________________________________________________________________________________ 36 18 (x) ______________________________________________________________________________________________ a seller could be liable for misrepresentation. A seller might issue a counter-proposal to just one ______________________________________________________________________________________________ 37 19Buyer’s Signature ▲ Print Name Here ` Date ▲ buyer out of a pool of offers. A seller may choose to use a counter-proposal even if the seller only 20 ______________________________________________________________________________________________ 38 (x) has one offer because, unlike a counter-offer, a counter-proposal allows a seller to negotiate the 21 Any warranties, covenants and representations made in this Multiple Counter-Proposal survive the closing of this transaction. This 39 22Buyer’s Signature ▲ Print Name Here ` Date ▲Counter-Proposal (see Multiple Counter-Proposal by Seller will expire and be null and void unless a copy of the approved Multiple

terms of an offer with non-binding proposals.

31-33) is delivered to Seller in any manner authorized in the Offer Purchase on or before (Time is of the Thislines Multiple Counter-Proposal is (rejected) (countered) STRIKE ONE to (Buyer’s Initials) Thisexplain Multiple Counter-Proposal drafted _________ by _________________________________________________. Lines that may receive different counter-proposals, the proposal 41 24 ThisEssence). Multiple 1-5 Counter-Proposal wasdifferent presentedwas tobuyers Buyer byon 40

23

25 Date Licensee and Firm ▲ is not binding on the seller until there is binding acceptance, and that parties can withdraw a 42 ________________________________________________________ on ________________, at 26 (x) 43 Licensee or and Firm Date ▲ Each buyer a.m./p.m. ▲ proposal an ▲ accepted proposal until there is binding acceptance. receives an 27 Seller’s Signature ▲ Print Name Here ` Date ▲

individual WB-46, even if the seller is proposing the same terms to all of the buyers. No buyer

44 28 (x) ACCEPTANCE BY SELLER will know the terms another buyer’s proposal. Like offers to purchase, the Counter-Proposal terms of a counterSeller’s Signature ▲ Print Nameof Here ` ▲ 45 29 By signing below, Seller accepts Buyer’s approved Multiple Counter-Proposal. The terms of this MultipleDate shall be

proposal 46 binding on Sellerare and confidential. Buyer if Seller delivers a copy of the accepted Multiple Counter-Proposal to Buyer in any manner authorized 30 APPROVAL BY BUYER 47 in the Offer to Purchase on or before the deadline stated at line 33. NOTE: Seller should not sign below if there is an existing 31 This Multiple Counter-Proposal by Sellerabout is approved by the Buyer. Approval ofisthis Multiple Counter-Proposal is not on Buyer The seller identifies the offer which proposal being made on lines 6-7 bybinding the offer’s 48 accepted offer unless this Multiple Counter-Proposal provides for a secondary offer. 32 or Seller until binding acceptance of this approved Multiple Counter-Proposal by Seller (per lines 45-47) on or before date, the buyer who made the offer, and theis of property address. Like counter-offers, the multiple ________________________________, ___________ (Time the Essence). NOTE: If the above Multiple Counter-Proposal by 49 33 (x) _________________________________________________________________________ (x) _________________________________________________________________________________ counter-proposal does not include terms and conditions of any previous the 50 34 Seller’s Signature ▲ Signature Date ▲unless Seller is not▲approved by Buyer in its Date entirety, do not use Seller’s this form for a ▲ counter-offer by Buyer.proposal Instead, submit a Counter51

Offer (WB-44) or a new offer to purchase. drafter incorporates those terms by reference. The accepted Multiple Counter-Proposal was presented to Seller by

35

A seller uses lines 11-20 to describe the proposal.

36 (x) 52 37 _____________________________________________________________ Buyer’s Signature ▲ Print Name Here ` 53 Licensee and Firm ▲ 38 (x) 39 Buyer’s Signature ▲ Print Name Here ` 40 41

on ______________, at Date ▲ Date ▲

This Multiple Counter-Proposal is (rejected) (countered) STRIKE ONE (Buyer’s Initials) This Multiple Counter-Proposal was presented to Buyer by

Date ▲

a.m./p.m. ▲

185

2 Multiple Counter-Proposal may differ from the terms of multiple counter-proposals being submitted to other prospective 12 ______________________________________________________________________________________________ 3 buyers. This Multiple Counter-Proposal is not binding on Seller or Buyer until Seller’s binding acceptance per lines 45-47. 13 ______________________________________________________________________________________________ 4 Seller or Buyer may withdraw their Multiple Counter-Proposal or accepted Multiple Counter-Proposal, at any time prior to 14 ______________________________________________________________________________________________ 5 binding acceptance per lines 45-47. REAL ESTATE SALES 6 ______________________________________________________________________________________________ The Offer to Purchase dated ________ and signed by Buyer, _____________________________________________, for 15 7 purchase of real estate at ___________________________________________________________________________________ 16 ______________________________________________________________________________________________ 8 is rejected and the following Multiple Counter-Proposal is made. All terms and conditions remain the same as stated in the 17 ______________________________________________________________________________________________ 9 Offer to Purchase except the following: [CAUTION: This Multiple Counter-Proposal does not include the terms or 18 ______________________________________________________________________________________________ 10 conditions in any other counter-offer or multiple counter-proposal unless incorporated by reference.] 21-29 19 Lines ______________________________________________________________________________________________ 11 ______________________________________________________________________________________________ 20 ______________________________________________________________________________________________ 12 ______________________________________________________________________________________________ 21 Any warranties, covenants and representations made in this Multiple Counter-Proposal survive the closing of this transaction. This 13 ______________________________________________________________________________________________ 22 Multiple Counter-Proposal by Seller will expire and be null and void unless a copy of the approved Multiple Counter-Proposal (see 14 ______________________________________________________________________________________________ 23 lines 31-33) is delivered to Seller in any manner authorized in the Offer to Purchase on or before (Time is of the 15 ______________________________________________________________________________________________ 24 Essence). This Multiple Counter-Proposal was drafted on _________ by _________________________________________________. 16 ______________________________________________________________________________________________ 25 Date Licensee and Firm ▲ 17 ______________________________________________________________________________________________ 18 26 ______________________________________________________________________________________________ (x) 19 Seller’s Signature ▲ Print Name Here ` 27 ______________________________________________________________________________________________ Date ▲ 20 ______________________________________________________________________________________________ 28 Any (x) warranties, covenants and representations made in this Multiple Counter-Proposal survive the closing of this transaction. This 21 29 Multiple Seller’s Signature ▲ Print Name ` will expire and be null and void unless a copy of the approved Multiple DateCounter-Proposal ▲ 22 Counter-Proposal byHere Seller (see

lines 31-33) is delivered to Seller in any manner authorized in the Offer to Purchase on or before (Time is of the APPROVAL BY BUYER Essence). This Multiple Counter-Proposal was drafted on _________ by _________________________________________________. A seller a deadline a buyer to accept proposal on line 23 and drafting This Multipleincludes Counter-Proposal by Sellerfor is approved by Buyer. Approvalthe of this Multiple Counter-Proposal is not the binding on Buyer Date Licensee and Firm ▲ licensee includes line 24. Lines 26-29 for (per seller identification or Seller until binding identifying acceptance ofinformation this approvedon Multiple Counter-Proposal byare Seller lines 45-47) on or and before (x) ________________________________, ___________ is of theunless Essence).the NOTE: If the above Multiple Counter-Proposal by the date of the proposal. Time is of the(Time essence language is stricken. Seller’s ▲ Print Name ` in its entirety, do not use this form for a counter-offer by Buyer.Date ▲ Seller Signature is not approved by Here Buyer Instead, submit a Counter35 Lines Offer (WB-44) or a new offer to purchase. 28 (x) 30-43 Approval by Buyer

23 30 24 31 25 32 26 33 27 34 29 36 37 30

Seller’s Signature ▲ Print Name Here ` (x) Buyer’s Signature ▲ Print Name Here `

Date ▲

APPROVAL BY BUYER

Date ▲

This (x) Multiple Counter-Proposal by Seller is approved by Buyer. Approval of this Multiple Counter-Proposal is not binding on Buyer or Seller until ▲ binding acceptance of this approved Multiple Counter-Proposal by Seller (per lines Buyer’s Signature Print Name Here ` Date ▲45-47) on or before ________________________________, ___________ (Time is of the Essence). NOTE: If the above Multiple Counter-Proposal by This Multiple Counter-Proposal is (rejected) (countered) STRIKE ONE Initials) by Buyer. Instead, submit a CounterSeller is not approved by Buyer in its entirety, do not use this form for(Buyer’s a counter-offer 41 Offer This Multiple Counter-Proposal was presented to Buyer by 35 (WB-44) or a new offer to purchase. 31 38 32 39 33 40 34 36 42 43 37

(x) ________________________________________________________ on ________________, at Licensee▲and Firm ▲ Here ` Date ▲ Buyer’s Signature Print Name Date ▲

38 44 39 45 40 46

(x)

43 49 50 44 51 45

Licensee and Firm ▲ (x) _________________________________________________________________________

a.m./p.m. ▲

ACCEPTANCE BY SELLER

Buyer’s Signature ▲ Print Name Here ` Date ▲ By signing below, Seller accepts Buyer’s approved Multiple Counter-Proposal. The terms of this Multiple Counter-Proposal shall be This Multiple Counter-Proposal is (rejected) ONE (Buyer’s Initials) binding on Seller and Buyer if Seller delivers(countered) a copy of theSTRIKE accepted Multiple Counter-Proposal to Buyer in any manner authorized 41 Multiple Counter-Proposal presented to Buyer by at line 33. NOTE: Seller should not sign below if there is an existing 47 This in the Offer to Purchase on or was before the deadline stated 48 accepted offer unless this Multiple Counter-Proposal provides for a secondary offer. 42 ________________________________________________________ on ________________, at

46 52 47 53 48 49 50 51 52 53

186

Seller’s Signature ▲

Date ▲

Date ▲ a.m./p.m. ▲ (x) _________________________________________________________________________________

Seller’s Signature ▲

ACCEPTANCE BY SELLER

Date ▲

If asigning seller issues aaccepts counter-proposal to prospective buyers, the buyersshall can The accepted Multiple Counter-Proposal was presented tosome Seller byor all of theThe By below, Seller Buyer’s approved Multiple Counter-Proposal. terms of this Multiple Counter-Proposal be binding on reject, Seller andor Buyer if Seller delivers a copy of the accepted Multiple Counter-Proposal to Buyer in any manner are authorized accept, counter-offer their individual proposals. The seller-issued proposals not _____________________________________________________________ on ______________, at in the Offer to Purchase on or before the deadline stated at line 33. NOTE:must Seller occur should Date not sign below if there is an existing Licensee and Firmparty ▲ ▲ a.m./p.m. ▲on binding on either until binding acceptance, which before the date listed line accepted offer unless this Multiple Counter-Proposal provides for a secondary offer. 33. Time is of the essence unless it is stricken. Lines 33-35 instruct a buyer to use a WB-44 (x) _________________________________________________________________________ (x) _________________________________________________________________________________ Counter-Offer or a new offer ifDate the▲ buyer wants to suggest terms other than those presented Seller’s Signature ▲ Seller’s Signature ▲ Date ▲ by the seller in the proposal. A buyer should not use the WB-46 Multiple Counter-Proposal for The accepted Multiple Counter-Proposal was presented to Seller by negotiating with a seller. If a buyer agrees to all of the seller’s terms included in the proposal, _____________________________________________________________ at the buyer signs and dates the proposal. Lines 36-39 are on for______________, buyer identification, signatures, Licensee and Firm ▲ Date ▲ a.m./p.m. ▲ and dates. If a buyer wants to reject or counter the proposal, the buyer indicates this on line 40 by striking the inapplicable choice and initialing. Lines 41-43 are for identifying the presenting licensee and the time and date of presentation.

36 37

(x)

38 39

(x)

40

This Multiple Counter-Proposal is (rejected) (countered) STRIKE ONE (Buyer’s Initials) This Multiple Counter-Proposal was presented to Buyer by

41 42 43

Buyer’s Signature ▲ Print Name Here `

Date ▲

Other Date ▲

Buyer’s Signature ▲ Print Name Here `

________________________________________________________ on ________________, at Lines 44-53 Acceptance by Seller Licensee and Firm ▲

Date ▲

Approved Forms - 12

a.m./p.m. ▲

ACCEPTANCE BY SELLER

44

By signing below, Seller accepts Buyer’s approved Multiple Counter-Proposal. The terms of this Multiple Counter-Proposal shall be 46 binding on Seller and Buyer if Seller delivers a copy of the accepted Multiple Counter-Proposal to Buyer in any manner authorized 47 in the Offer to Purchase on or before the deadline stated at line 33. NOTE: Seller should not sign below if there is an existing 48 accepted offer unless this Multiple Counter-Proposal provides for a secondary offer. 45

49 50

(x) _________________________________________________________________________

51

The accepted Multiple Counter-Proposal was presented to Seller by

52 53

_____________________________________________________________ on ______________, at

Seller’s Signature ▲

Date ▲

(x) _________________________________________________________________________________ Seller’s Signature ▲

Licensee and Firm ▲

Date ▲

Date ▲

a.m./p.m. ▲

If a buyer accepts a seller’s proposal and returns it to the seller, the seller then decides which, if any, of the returned proposals to accept. Lines 45-47 state that by signing the proposal, the seller accepts the buyer’s approved proposal and, to achieve binding acceptance, the seller must deliver a copy of the accepted proposal back to the buyer in a manner authorized by the buyer’s offer before the date included on line 33 of the buyer’s approval section. Lines 47-48 caution the seller not to sign and deliver an accepted proposal to a buyer if seller has accepted an offer unless the proposal relates to a secondary offer. If a seller has an accepted offer from one buyer and delivered an accepted proposal to another buyer without identifying one of the offers as secondary, a seller would have two binding contracts for the sale of the seller’s property. Lines 51-53 are for licensee identification and documenting the time and date that the licensee presented the proposal to the seller.

WB-42 AMENDMENT TO LISTING CONTRACT Approved by the Wisconsin Real Estate Examining Board 7-1-16 (Mandatory Use Date) 

 

WB-42 AMENDMENT TO LISTING CONTRACT 1

It is agreed that the Listing Contract dated _____________________, between the undersigned, for sale/rental of the

10

______________________________________________________________________________________________. Other: _________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________

A seller or a firm would use the WB-42 Amendment to Listing Contract to amend the terms 2 property known as (Street Address/Description) ________________________________________________________ of 3the original listing contract. For example, a seller has listed a property for $200,000. The ________________________________________________________________ in the _______________________ of firm advertises according to the terms of the listing contract but the property fails to attract 4 ____________________________, County of ____________________________ , Wisconsin, is amended as follows: any offers. A seller decides to lower the listing price in an effort to generate more interest in 5 The list price is changed from $_________________________________ to $ ________________________________. the property. Rather than drafting a new listing contract, the seller and the firm would use the 6 The expiration date of the contract is changed from midnight ________________________________, ____________ WB-42 Amendment to Listing Contract. A seller and firm could also use this form if a seller 7 to midnight ___________________________________________________________________, ________________. decided not to sell the property and terminate the listing early, if the parties agreed to a different 8 The following items are (added to)(deleted from) STRIKE ONE the list of property to be included in the list price: commission arrangement, or if the parties wanted to extend the listing beyond the expiration 9 ______________________________________________________________________________________________ date. 11 12 13 14 15 16 17 18 19 20 21 22 23

187

The expiration date of the contract is changed from midnight ________________________________, ____________ to midnight ___________________________________________________________________, ________________. REAL ESTATE SALES Approved by the Wisconsin Real Estate 8 The following items are Examining (added Board to)(deleted from) STRIKE ONE the list of property to be included in the list price: 7-1-16 (Mandatory Use Date)    9 ______________________________________________________________________________________________ 10 ______________________________________________________________________________________________. WB-42 AMENDMENT TO LISTING CONTRACT 11 Other: Lines_________________________________________________________________________________________ 1-11 12 ______________________________________________________________________________________________ 1 It is agreed that the Listing Contract dated _____________________, between the undersigned, for sale/rental of the 13 ______________________________________________________________________________________________ 2 property known as (Street Address/Description) ________________________________________________________ 14 ______________________________________________________________________________________________ 3 ________________________________________________________________ in the _______________________ of 15 ______________________________________________________________________________________________ 4 ____________________________, County of ____________________________ , Wisconsin, is amended as follows: 16 ______________________________________________________________________________________________ 5 The list price is changed from $_________________________________ to $ ________________________________. 17 ______________________________________________________________________________________________ 6 The expiration date of the contract is changed from midnight ________________________________, ____________ 18 ______________________________________________________________________________________________ 7 to midnight ___________________________________________________________________, ________________. 19 ______________________________________________________________________________________________ 8 The following items are (added to)(deleted from) STRIKE ONE the list of property to be included in the list price: 20 ______________________________________________________________________________________________ 219 ______________________________________________________________________________________________ ______________________________________________________________________________________________ 10 ______________________________________________________________________________________________. 22 ______________________________________________________________________________________________ 11 Other: _________________________________________________________________________________________ 23 ______________________________________________________________________________________________ 12 ______________________________________________________________________________________________ 24 ______________________________________________________________________________________________ 13 ______________________________________________________________________________________________ ______________________________________________________________________________________________ 25 The drafting party identifies the original listing contract by date on line 1 and the listed property 14 ______________________________________________________________________________________________ 26 on ______________________________________________________________________________________________ lines 2-4. Lines 5-10 contain preprinted terms for amending the list price, contract expiration 15 ______________________________________________________________________________________________ 27 date, ______________________________________________________________________________________________ and included and excluded items. Revisions to included and excluded items will not 16 ______________________________________________________________________________________________ ______________________________________________________________________________________________ 28 dictate what is included or excluded in a final transaction because the offer to purchase 17 ______________________________________________________________________________________________ ______________________________________________________________________________________________ 29 controls what items will be included or excluded from a transaction. 18 ______________________________________________________________________________________________ 30 ______________________________________________________________________________________________ Lines 11-33 provide space for parties to address any other amendments to the listing contract 19 ______________________________________________________________________________________________ ______________________________________________________________________________________________ 31 such as changes to marketing plans or commission arrangements. 20 ______________________________________________________________________________________________ ______________________________________________________________________________________________ 32 21 Lines ______________________________________________________________________________________________ 34-45 33 ______________________________________________________________________________________________ 22 ______________________________________________________________________________________________ 34 ALL OTHER TERMS OF THIS CONTRACT AND ANY PRIOR AMENDMENTS REMAIN UNCHANGED. 23 ______________________________________________________________________________________________ 24 ______________________________________________________________________________________________ 35 ___________________________________________ (x) _______________________________________________ 25 ______________________________________________________________________________________________ 36 Firm Name  Seller’s/Owner’s Signature  Date  26 ______________________________________________________________________________________________ 37 Print name  27 ______________________________________________________________________________________________ 28 ______________________________________________________________________________________________ 38 (x) ________________________________________ (x) _______________________________________________ 29 ______________________________________________________________________________________________ 39 By Agent for Firm Date  Seller’s/Owner’s Signature  Date 30 ______________________________________________________________________________________________ 40 Print name  Print name  31 ______________________________________________________________________________________________ 41 This Listing belongs to the Firm. Agents for Firm do not have the authority to enter into a mutual 32 CAUTION: ______________________________________________________________________________________________ 42 agreement to terminate a listing contract, amend the commission amount or shorten the term of a listing 33 ______________________________________________________________________________________________ 43 contract, without the written consent of the Agent(s)’ supervising broker. 34 ALL OTHER TERMS OF THIS CONTRACT AND ANY PRIOR AMENDMENTS REMAIN UNCHANGED. 44 This written consent may be obtained with the supervising broker’s signature below or a separate consent. 35 ___________________________________________ (x) _______________________________________________ 45 36 (x) Firm____________________________________________________________________________________________ Name  Seller’s/Owner’s Signature  Date  46 Date  37 Supervising Broker’s Signature  Print name  Print name  6 7

41 42 43

Line 34 states that all other terms of the listing contract and any prior amendments remain (x) ________________________________________ (x) _______________________________________________ unchanged. The caution on lines 41-43 reminds the seller that a licensee for the firm has By Agent for Firm  Seller’s/Owner’s Signature  Date only limited authority to amend theDate listing contract and amendments to terminate the contract, Print name  Print name  change the commission amount, or shorten the term require written consent of the supervising broker. the Listing seller belongs and the agree to the amendments, theyauthority indicate by signing in the CAUTION:IfThis to firm the Firm. Agents for Firm do not have the to enter into a mutual agreementprovided to terminate listing contract, amend the commission amount shorten the broker’s term of a written listing spaces on alines 35-38. If the amendment requires theorsupervising contract, without written consent of thecan Agent(s)’ supervising permission, thethe supervising broker sign on line 45 broker. indicating that permission is granted.

44

This written consent may be obtained with the supervising broker’s signature below or a separate consent.

45

(x) ____________________________________________________________________________________________ Supervising Broker’s Signature  Print name  Date 

38 39 40

46

188

Other Approved Forms - 12

WB-40 AMENDMENT TO OFFER TO PURCHASE Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-40 AMENDMENT TO OFFER TO PURCHASE CAUTION: Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. Use a WB-41 Notice if a Party is giving a Notice which does not require the other Party’s agreement. 1 Buyer and Seller agree to amend the Offer dated ___________________, and accepted _____________________, for Parties can use the WB-40 Amendment when both parties mutually agree to change one or 2 the purchase and sale of real estate at ________________________________________________________________ more terms of an accepted offer. For example, if parties want to change the price, closing date, 3 _____________________________________________________________________________, Wisconsin as follows: extend a deadline, or document new terms or conditions, the parties can use a WB-40 4 Closing date is changed from ______________________, ______, to _______________________________, ______. Amendment to negotiate and document the changes to the accepted offer.

Purchase price is changed from $________________________________ to $________________________________. An6 amendment is not a counter-offer. Parties use counter-offers when negotiating terms of an Other: _________________________________________________________________________________________ 7 _______________________________________________________________________________________________ offer to purchase. Parties use amendments when negotiating terms of an offer to purchase with 8 _______________________________________________________________________________________________ binding acceptance. An offer to purchase becomes a contract for sale after binding acceptance. 9 _______________________________________________________________________________________________ The top of the form contains a caution to the parties regarding the difference between offering 10 _______________________________________________________________________________________________ an11 amendment to another party and issuing a notice to another party. The WB-41 Notice _______________________________________________________________________________________________ 12 _______________________________________________________________________________________________ Relating to Offer to Purchase is discussed later in the materials. When a party wants to modify 13 _______________________________________________________________________________________________ terms of an accepted offer to purchase, the party drafts an amendment and offers it to the other 14 _______________________________________________________________________________________________ party. If the other party agrees to the changes, the party signs the amendment changing the 15 _______________________________________________________________________________________________ terms of the accepted offer. If the other party does not agree to the proposed changes, the other 16 _______________________________________________________________________________________________ party does not sign the amendment and the original terms of the offer to purchase control the 17 _______________________________________________________________________________________________ transaction. For example, a home inspection reveals defects in a property’s basement walls. 18 _______________________________________________________________________________________________ A 19buyer submits an amendment reducing the purchase price by $5,000. If the seller agrees to _______________________________________________________________________________________________ the amendment, seller signs 20 Approved _______________________________________________________________________________________________ by the Wisconsinthe Real Estate Examining Boardand returns the amendment to the buyer and the purchase Use Date) 1-1-16 (Mandatoryterms Use Date) of the offer stay the same. If the seller does not agree to 21 10-1-15 _______________________________________________________________________________________________ price is (Optional amended. All other 22 _______________________________________________________________________________________________ the amendment, the seller does not have to do anything. In this case, the seller might offer _______________________________________________________________________________________________ TOthe OFFER PURCHASE a 23different amendment WB-40 to the AMENDMENT buyer reducing offerTO price by less or offering to repair the 24 _______________________________________________________________________________________________ defectiveCAUTION: walls inUse theabasement. WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. 25 _______________________________________________________________________________________________ Use a WB-41 Notice if a Party is giving a Notice which does not require the other Party’s agreement. 26 _______________________________________________________________________________________________ Lines 1-3 Approved by the Wisconsin Real Estate Examining Board 27 10-1-15 _______________________________________________________________________________________________ (Optional Use Date) 1-1-16 (Mandatory Use Date) Buyer and Seller agree to amend the Offer dated ___________________, and accepted _____________________, for 281 The attached ______________________________________________________ is/are made part of this Amendment. and saleOF of real at TO ________________________________________________________________ 292 the ALLpurchase OTHER TERMS THEestate OFFER PURCHASE AND ANY PRIOR AMENDMENTS REMAIN THE SAME. WB-40 AMENDMENT TO OFFER TO PURCHASE Wisconsintoasthe follows: 303 _____________________________________________________________________________, This Amendment is binding upon Seller and Buyer only if a copy of the accepted Amendment is delivered Party 314 Closing offering the Amendment on or______________________, before _____________________________________ (Timethe is terms of the Essence). Delivery CAUTION: Use a WB-40 Amendment if both Parties will betoagreeing to modify of the Offer. date is changed from ______, _______________________________, ______. 325 Purchase of the accepted Amendment may made any manner specified in thenot Offer to Purchase, unless otherwise provided Use Notice if$________________________________ abe Party is ingiving a Notice which does require the other Party’s agreement. pricea isWB-41 changed from to $________________________________. first lines of the form identify the offer that the party is proposing to amend. The offer 33 inThe this Amendment. 6 Other: _________________________________________________________________________________________ is identified by date ofthis the offer, date of withdraw acceptance, and property’s 341 NOTE: TheSeller Party offering Amendment may the offered Amendment prioraddress. to acceptance and Buyer and agree to amend the Offer dated ___________________, andthe accepted _____________________, for 7 _______________________________________________________________________________________________ 352 the delivery as provided at lines 30-33.at ________________________________________________________________ purchase and sale of real estate 8 _______________________________________________________________________________________________ Lines 4-6 3 _____________________________________________________________________________, Wisconsin as follows: 369 _______________________________________________________________________________________________ This Amendment was drafted by ________________________________________________on _________________ 4 Closing date is changed from ______________________, ______, to _______________________________, ______. 10 37 _______________________________________________________________________________________________ Licensee and Firm  Date  price is changed from $________________________________ to $________________________________. 115 Purchase _______________________________________________________________________________________________ 12 _______________________________________________________________________________________________ 386 Other: This Amendment was presented by ______________________________________________on _________________ _________________________________________________________________________________________ 13 397 _______________________________________________________________________________________________ Licensee and Firm  Date  148 _______________________________________________________________________________________________ Lines 4-5 contain pre-printed terms for amending the closing date and purchase price. 159 _______________________________________________________________________________________________ 40 ___________________________________________ _____________________________________________ 16 (x) Parties use lines 6-27 to propose any other(x)amendments to the offer. 10 _______________________________________________________________________________________________ 41 Buyer’s Signature  Date  Seller’s Signature Date  17 _______________________________________________________________________________________________ 11 42 Print name  Print name  18 _______________________________________________________________________________________________ 12 19 13 _______________________________________________________________________________________________ 20 _______________________________________________________________________________________________ 14 43 _______________________________________________________________________________________________ (x) ___________________________________________ (x) ______________________________________________ 21 15 44 _______________________________________________________________________________________________ Buyer’s Signature  Date  Seller’s Signature  Date  22 16 45 name  Print name  23 Print 17 _______________________________________________________________________________________________ 24 _______________________________________________________________________________________________ 18 25 _______________________________________________________________________________________________ 5

189

207 _______________________________________________________________________________________________ _______________________________________________________________________________________________ 218 _______________________________________________________________________________________________ _______________________________________________________________________________________________ 229 _______________________________________________________________________________________________ _______________________________________________________________________________________________ REAL ESTATE SALES 10 23 _______________________________________________________________________________________________ _______________________________________________________________________________________________ 11 24 _______________________________________________________________________________________________ _______________________________________________________________________________________________ 12 25 _______________________________________________________________________________________________ _______________________________________________________________________________________________ 13 26 _______________________________________________________________________________________________ _______________________________________________________________________________________________ Lines 28-35 14 27 _______________________________________________________________________________________________ _______________________________________________________________________________________________ 15 28 _______________________________________________________________________________________________ The attached ______________________________________________________ is/are made part of this Amendment. 16 29 _______________________________________________________________________________________________ ALL OTHER TERMS OF THE OFFER TO PURCHASE AND ANY PRIOR AMENDMENTS REMAIN THE SAME. 17 30 _______________________________________________________________________________________________ This Amendment is binding upon Seller and Buyer only if a copy of the accepted Amendment is delivered to the Party 18 31 _______________________________________________________________________________________________ offering the Amendment on or before _____________________________________ (Time is of the Essence). Delivery 19 32 _______________________________________________________________________________________________ of the accepted Amendment may be made in any manner specified in the Offer to Purchase, unless otherwise provided 20 33 _______________________________________________________________________________________________ in this Amendment. 21 34 _______________________________________________________________________________________________ NOTE: The Party offering this Amendment may withdraw the offered Amendment prior to acceptance and 22 35 _______________________________________________________________________________________________ delivery as provided at lines 30-33. 23 _______________________________________________________________________________________________ 24 36 _______________________________________________________________________________________________ This Amendment was drafted by ________________________________________________on _________________ 25 37 _______________________________________________________________________________________________ andinclude Firm  other documents as part of the Date  Line 28 gives parties the Licensee ability to amendment. Lines 26 _______________________________________________________________________________________________ 30-33 specify the process by which the amendment will become binding on the parties. The 38 _______________________________________________________________________________________________ This Amendment was presented by ______________________________________________on _________________ 27 party proposing the amendment who made then part signs and delivers it 39 The Licenseedelivers and Firm itto the other party, is/are Date  28 attached ______________________________________________________ of this Amendment. back to the proposing party by the date indicated on line 31. Time is of the essence unless the 29 ALL OTHER TERMS OF THE OFFER TO PURCHASE AND ANY PRIOR AMENDMENTS REMAIN THE SAME. party draftingisthe document strikes the only language. party can deliver theisamendment any 30 This Amendment binding upon Seller and Buyer if a copy A of the accepted Amendment delivered to theby Party 40 (x) ___________________________________________ (x) _____________________________________________ 31 offering theauthorized Amendment on before _____________________________________ (Time is of the Essence). method byorthe offer. A party offering an amendment can withdraw it beforeDelivery binding 41 Buyer’s Signature  Date manner Seller’s Signature Dateotherwise  32 of the accepted Amendment may be made in any specified in the Offer to Purchase, unless provided acceptance. Once the amendment is delivered back to the offering party, it is binding and the 42 Print name  Print name  33 interms this Amendment. of the original offer now includes the amended terms. 34 NOTE: The Party offering this Amendment may withdraw the offered Amendment prior to acceptance and Lines as 36-47 35 delivery provided at lines 30-33. 43 (x) ___________________________________________ (x) ______________________________________________ 44 This Buyer’s Signaturewas  drafted by ________________________________________________on Date  Seller’s Signature  Date  36 Amendment _________________ 45 Print name  Print name  37 Licensee and Firm  Date  38 46 39 47

This Amendment was presented by ______________________________________________on _________________ This Amendment was rejected _______________________ __________ __________________________ Licensee and Firm  Date  _________ Party Initials▲ Date▲ Party Initials▲ Date▲

40 41 42

(x) ___________________________________________ (x) _____________________________________________ Buyer’s Signature  Date  Seller’s Signature Date  Print name  Print name 

43 44 45

(x) ___________________________________________ (x) ______________________________________________ Buyer’s Signature  Date  Seller’s Signature  Date  Print name  Print name 

46

This Amendment was rejected _______________________ __________ __________________________ _________ Party Initials▲ Date▲ Party Initials▲ Date▲

47

Licensees identify themselves as the drafting or presenting licensee on lines 36-39. The drafting or presenting licensee can be the same person or they may be different. The respective parties sign the amendment if they agree to modify the terms. If the buyer is the drafting party, the buyer would sign it before presenting it to the seller. If a seller agrees with the changes, the seller would sign and deliver it back to the buyer. In the case of the seller drafting the amendment, the seller signs first and then the buyer signs if the buyer agrees with the amended terms. To reject a proposed amendment, a party can do nothing and let the deadline indicated on line 31 pass or the party could indicate rejection by initialing on line 46.

190

Other Approved Forms - 12

WB-41 NOTICE RELATING TO OFFER TO PURCHASE Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-41 NOTICE RELATING TO OFFER TO PURCHASE Approved by the Wisconsin Real Estate Examining Board CAUTION: Use a WB-41 Notice if a Party 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

is giving a Notice which does not require the other Party's agreement. Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer.

WB-41 NOTICE RELATING TO OFFER TO PURCHASE

1 This Notice by (Seller)(Buyer) STRIKE ONE relates to the Offer to Purchase dated _____________________, _______ A party can use the WB-41 Notice when unilaterally giving notice to the other party about a matter 2 and accepted __________________, ______, for the apurchase and sale of real estate atthe ________________________ CAUTION: a WB-41 offer Noticetoif apurchase. Party is giving Notice which require otherto Party's relating to anUse accepted For example, a does partynotuses a WB-41 giveagreement. notice that 3 _____________________________________________________________________________________, Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. Wisconsin. a party’s attorney has approved the offer, an inspection report revealed defects, a secondary offer 4 Notice is given that (Attach supporting documents, if required): ____________________________________________ is being made primary, or to notify the other party that a contingency is satisfied. Unlike with _______________________________________________________________________________________________ Notice by (Seller)(Buyer) STRIKE ONE relates to the Offer to Purchase dated _____________________, _______an 15 This amendment, when a party is giving notice about a matter relating to an offer, the other _______________________________________________________________________________________________ Approved by the Wisconsin Real Estate Examining Board 26 and accepted __________________, ______, for the purchase and sale of real estate at accepted ________________________ 10-1-15 (Optional Date) 1-1-16 (Mandatory Use it. Date) _______________________________________________________________________________________________ party does notUseneed to approve Only the party giving the notice completes and signsWisconsin. the form. 37 _____________________________________________________________________________________, _______________________________________________________________________________________________ The sameis given caution foundsupporting at the top of the ifWB-40 to Offer to Purchase is included 48 Notice that (Attach documents, required):Amendment ____________________________________________ _______________________________________________________________________________________________ WB-41 RELATING TOlicensees OFFER TOofPURCHASE _______________________________________________________________________________________________ on59the WB-41. This caution is NOTICE to remind parties and the difference between offering 106 _______________________________________________________________________________________________ _______________________________________________________________________________________________ an amendment issuing CAUTION: Useand a WB-41 Noticea ifnotice. a Party is giving a Notice which does not require the other Party's agreement. 117 _______________________________________________________________________________________________ _______________________________________________________________________________________________ Lines 1-3 Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. 12 _______________________________________________________________________________________________ 8 139 141 10 152 11 163 12 174 13 185 14 196 15 2017 16 2128 17 2239 18 10 234 19 11 245 20 12 256 21 13 267 22 14 278 23 159 24 10 16 28 25 11 17 29 26 12 18 27 30 13 19 31 14 20 28 15 21 29 32 16 22 33 30 17 23 34 31 18 24 19 25 35 32 20 26 36 33 21 27 37 34 22 23 28 35 24 29 38 36 25 30 37 26 39 31 27 40

Approved by the Wisconsin Real Estate Examining Board _______________________________________________________________________________________________ 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date) _______________________________________________________________________________________________ _______________________________________________________________________________________________ This Notice by (Seller)(Buyer) STRIKE ONE relates to the Offer to Purchase dated _____________________, _______ _______________________________________________________________________________________________ _______________________________________________________________________________________________ and accepted __________________, ______,RELATING for the purchase sale ofTO realPURCHASE estate at ________________________ _______________________________________________________________________________________________ WB-41 NOTICE TO and OFFER _______________________________________________________________________________________________ _____________________________________________________________________________________, Wisconsin. _______________________________________________________________________________________________ _______________________________________________________________________________________________ CAUTION: Usethat a WB-41 Notice if a Party is giving a Notice ____________________________________________ which does not require the other Party's agreement. Notice is given (Attach supporting documents, if required): _______________________________________________________________________________________________ _______________________________________________________________________________________________ The first Use lines of theAmendment form identify party noticethe and theof offer to which the a WB-40 if boththe Parties willinitiating be agreeingthe to modify terms the Offer. _______________________________________________________________________________________________ _______________________________________________________________________________________________ notice relates. The offer is identified by date of the offer, date of acceptance, and the _______________________________________________________________________________________________ _______________________________________________________________________________________________ property’s address. This Notice by (Seller)(Buyer) STRIKE ONE relates to the Offer to Purchase dated _____________________, _______ _______________________________________________________________________________________________ _______________________________________________________________________________________________ and accepted __________________, ______, for the purchase and sale of real estate at ________________________ _______________________________________________________________________________________________ Lines 4-27 _______________________________________________________________________________________________ _____________________________________________________________________________________, Wisconsin. _______________________________________________________________________________________________ _______________________________________________________________________________________________ Notice is given that (Attach supporting documents, if required): ____________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ The initiating party uses lines 4-26 to identify waived or satisfied contingencies and to give _______________________________________________________________________________________________ _______________________________________________________________________________________________ notice about any other matter related to the offer to purchase. Line 27 allows the party _______________________________________________________________________________________________ _______________________________________________________________________________________________ initiating notice to include additional documentation, such as ais/are loanmade commitment or an _______________________________________________________________________________________________ The attachedthe ___________________________________________________________ part of this Notice. _______________________________________________________________________________________________ _______________________________________________________________________________________________ inspection report and make it part of the notice. _______________________________________________________________________________________________ _______________________________________________________________________________________________ This Notice was drafted by _________________________________________________ on _____________________ _______________________________________________________________________________________________ Lines 27-37 _______________________________________________________________________________________________ Licensee and Firm for Initiating Party Date  _______________________________________________________________________________________________ _______________________________________________________________________________________________ The attached ___________________________________________________________ is/are made part ofconsent this Notice. CAUTION: Once delivered, a Notice cannot be withdrawn by the Initiating Party without the written of _______________________________________________________________________________________________ the Receiving Party. _______________________________________________________________________________________________ This Notice was drafted by _________________________________________________ on _____________________ _______________________________________________________________________________________________ Licensee and Firm for Initiating (x) Party Date  (x) ________________________________________________ ___________________________________________________ _______________________________________________________________________________________________ Signature of Party Initiating Notice  Date  Signature of Party Initiating Notice  written consent Date  of CAUTION: Once delivered, a Notice cannot be withdrawn by the Initiating Party without the _______________________________________________________________________________________________ Print name ► Print name ► the Receiving Party. _______________________________________________________________________________________________ _______________________________________________________________________________________________ This Notice was delivered by ________________________________________________ on ___________________ (x) ________________________________________________ (x) ___________________________________________________ _______________________________________________________________________________________________ Licensee and Firm for Initiating Party Date  Signature of Party Initiating Notice  Date  Signature of Party Initiating Notice _______________________________________________________________________________________________ The attached ___________________________________________________________ is/aremade part ofDate this  Notice. at ____________a.m./p.m. STRIKE ONE using an authorized method of delivery. Print name ► Print name ► _______________________________________________________________________________________________ _______________________________________________________________________________________________ This Notice was drafted by _________________________________________________ on _____________________ This NoticeRECEIPT was delivered ________________________________________________ on ___________________ _______________________________________________________________________________________________ Licensee and Firm for Receipt Initiating the Party Date  ACTUAL If theby Offer requires Actual following may be completed Licensee and Firm for Initiating Party Date  _______________________________________________________________________________________________ CAUTION: Once delivered,STRIKE a Notice cannot the Initiating Party without the written consent of at ____________a.m./p.m. ONE usingbeanwithdrawn authorized by method of delivery. _______________________________________________________________________________________________ This Notice wasParty. sent to the Receiving Party by ___________________________________________ on ___________ the The Receiving attached ___________________________________________________________ of this Notice. Licensee and Firm for Receiving Party is/are made partDate

41 _____________a.m./p.m. STRIKE ONEActual Receipt (x) 32 at (x) ________________________________________________ ACTUAL RECEIPT If the Offer requires the___________________________________________________ following may be completed 38 28 This Notice was drafted by _________________________________________________ on _____________________ 33 Signature of Party Initiating Notice  Date  Signature of Party Initiating Notice  Date  29 Licensee and Firm for Initiating Party Date  34 Print name ► Print name ► 42 Receiving Party acknowledges Actual Receipt of this Notice occurred on ___________________ at ______________ 39 This Notice was sent to the Receiving Party by ___________________________________________ on ___________ 30 Once delivered, a Notice cannot be withdrawn by the without the writtenDate consent of 43 CAUTION: a.m./p.m. STRIKE ONE (x) ________________________________________________________________________ 40 Licensee and Firm for Initiating ReceivingParty Party 35 This Notice was delivered by ________________________________________________ on ___________________ 31 the Receiving Party. 44 Initials of Receiving Party  41 at _____________a.m./p.m. STRIKE ONE 36 Licensee and Firm for Initiating Party Date 

191

28 This Notice was drafted by _________________________________________________ on _____________________ 29 ESTATE SALES Licensee and Firm for Initiating Party Date  REAL 30 CAUTION: Once delivered, a Notice cannot be withdrawn by the Initiating Party without the written consent of 31 the Receiving Party.

Line 27 can be used to reference other documents that a party wants to include with the notice. 32 (x) ________________________________________________ (x) ___________________________________________________ The licensee draftingNotice the  notice includes licensee’s information and of drafting 33 Signature of Party Initiating Date  theSignature of Party Initiating Notice  the dateDate  on line 34 Print name28. ► Lines 30-31 provide a caution to the Printinitiating name ► party that “Once delivered, a Notice cannot be withdrawn by the Initiating Party without the written consent of the Receiving Party.”

37

This delivered ________________________________________________ on ___________________ On Notice lines was 32-34, the by initiating party signs and dates the form. Lines 35–37 identify the person Licensee and Firm for Initiating Party Date  delivering the notice and the time of delivery. at ____________a.m./p.m. STRIKE ONE using an authorized method of delivery.

38

ACTUAL RECEIPT If the Offer requires Actual Receipt the following may be completed

39 40

This Notice was sent to the Receiving Party by ___________________________________________ on ___________ Licensee and Firm for Receiving Party Date at _____________a.m./p.m. STRIKE ONE

35 36

41 42 43 44

Lines 38-44

Receiving Party acknowledges Actual Receipt of this Notice occurred on ___________________ at ______________ a.m./p.m. STRIKE ONE (x) ________________________________________________________________________ Initials of Receiving Party 

The Actual Receipt section of the notice can be used to document when a party actually receives it for those deadlines, such as a bump notice, that run from actual receipt.

WB-45 CANCELLATION AGREEMENT AND MUTUAL RELEASE Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-45 Cancellation Agreement & Mutual Release Parties agree that thea ____________________________________________________________ 1 The undersigned Parties use this form to terminate real estate contract when the parties mutually agree to terminate 2 insert type of contract, e.g., offer to purchase, lease,aoption, etc. (Contract) dated _______________________, the the original agreement. When parties sign cancellation agreement and mutual release, for parties 3 property located at ___________________________________________________________________________, in forfeit any rights arising from the underlying contract including a right to sue for specific performance 4 the ______________________of_______________________, State of Wisconsin, be canceled and the Parties hereby or for damages. Cancelling the sale contract has the legal effect of rescinding it and restoring 5 release all of their right, title, and interest in and to the Contract, and any and all claims arising out of the transaction. Approved the Wisconsin Real Estatebefore Examining Board parties to bytheir positions they signed the contract. Parties can use a cancellation agreement 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date) and mutual to rescind anyfrom bilateral contract exchange leases, Partiesrelease hereby release the broker(s) any and all liability forincluding disbursing the trust funds agreements, as directed and hereby 6 The purchase agreements, and even agency agreements such as listing contracts. 7 authorize and direct the broker(s) to disburse the trust funds held on behalf of the Parties as follows:

Lines 1-5

WB-45 Cancellation Agreement & Mutual Release

$ ________________________ shall be disbursed to __________________________________________________ at The undersigned Parties agree that the ____________________________________________________________ the following address _____________________________________________________________________________, insert type of contract, e.g., offer to purchase, lease, option, etc. (Contract) dated _______________________, for the 3 property located at ___________________________________________________________________________, in 104 the $ ________________________ shall be disbursed to __________________________________________________ at ______________________of_______________________, State of Wisconsin, be canceled and the Parties hereby all of address their right, title, and interest in and to the Contract, and any and all claims arising out of the transaction. 115 release the following ____________________________________________________________________________. 8

1 9 2

The release theand broker(s) from any and all liability disbursing the trust funds astois directed andon hereby This Cancellation Agreement Release (CAMR) shall for beto effective if allrelease Parties the Contract have TheParties typehereby of agreement theMutual parties mutually agree cancelonly and listed line 1, authorize and direct the broker(s) to disburse the trust funds held on behalf of the Parties as follows: signed an identical copy of this (including signatures on separate but identical copies of the4-5 CAMR), if thethe followed by the date ofCAMR the agreement, and the property location. Lines stateandthat fully-executed CAMR has beenthe delivered to the Party initiatingallthe on or before parties agree to cancel contract and release of CAMR their rights, title, ____________________ and interest in and to $__________________________________________. ________________________ shall be disbursed to __________________________________________________ at Delivery may be made in any manner authorized in theparties Contract. the agreement, and any and all claims that may arise out of the transaction. If both sign 9 the following _____________________________________________________________________________, this form,address they release each other from the agreement and rescind the contract. By agreeing 16 NOTE: The Party initiating this CAMR may withdraw the CAMR prior to acceptance and delivery as provided at to rescind the contract, the parties agree to act as though the agreement never existed and a 17 lines12-15. 10 $party ________________________ shallparty be disbursed __________________________________________________ at cannot sue the other basedtoon the agreement. 126 137 14 158

11 18 19 12

the following address ____________________________________________________________________________. (X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here •Release (CAMR) shall be effective only if all Parties Date This Cancellation Agreement and Mutual to theContract have

13 signed an identical copy of this CAMR (including signatures on separate but identical copies of the CAMR), and if the 19214 fully-executed CAMR has been delivered to the Party initiating the CAMR on or before ____________________ (X) ______________________________________________________________________ _____________________ 20 __________________________________________. 15 Delivery may be made in any manner authorized in the Contract. 21 Party's Signature  Print Name Here • Date 

WB-45 Cancellation Agreement & Mutual Release The undersigned Parties agree that the ____________________________________________________________ Other Approved Forms - 12 2 insert type of contract, e.g., offer to purchase, lease, option, etc. (Contract) dated _______________________, for the 3 property located at ___________________________________________________________________________, in 4 the ______________________of_______________________, State of Wisconsin, be canceled and the Parties hereby 5 release of their right, title, and interest in and to the Contract, and any and all claims arising out of the transaction. Linesall6-11 1

6 7

The Parties hereby release the broker(s) from any and all liability for disbursing the trust funds as directed and hereby authorize and direct the broker(s) to disburse the trust funds held on behalf of the Parties as follows:

8

$ ________________________ shall be disbursed to __________________________________________________ at

9

Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

the following address _____________________________________________________________________________,

WB-45 Cancellation Agreement & Mutual Release

$The ________________________ shallthebe____________________________________________________________ disbursed to __________________________________________________ at undersigned Parties agree that 112 the following insert type ofaddress contract,____________________________________________________________________________. e.g., offer to purchase, lease, option, etc. (Contract) dated _______________________, for the Approved by the Wisconsin Real Estate Examining Board 3 property located at ___________________________________________________________________________, in 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date) 124 the This Cancellation Agreement and (CAMR) shall beofeffective onlybeif funds all Parties to the Contract have ______________________of_______________________, State Wisconsin, canceled and hereby Lines 6-11 authorize andMutual directRelease the firm to disburse the trust held onParties behalf of the 135 release signed an copytitle, of this CAMR onare separate butallidentical copiesthe of the CAMR), and if come the all identical of right, and interest(including in and to signatures theparties Contract, and any and arising out of the transaction. parties astheir listed. By signing this form, telling a claims firm that parties have WB-45 Cancellation Agreement & Mutual Release 14 fully-executed CAMR has been delivered to the Party initiating the CAMR on or before ____________________ to a written agreement authorizing a firm to disburse funds held in a trust account. If a 156 __________________________________________. mayfor bedisbursing made in any manner authorized in theand Contract. The Parties hereby release the broker(s) from any andDelivery all liability trust funds as directed hereby transaction fails to close, a firm cannot disburse trust fundsthe without a written disbursement 71 authorize and direct the broker(s) to the disburse the trust funds held on behalf of the Parties as follows: The undersigned Parties agree that ____________________________________________________________ agreement signed bythis theCAMR parties. specifically allocate 16 NOTE: The Party initiating mayParties withdrawuse the lines CAMR8-11 prior to to acceptance and delivery disbursements as provided at 2 insert type of contract, e.g., offer to purchase, lease, option, etc. (Contract) dated _______________________, the of funds held by a firm.shall Parties can structure disbursement in any manner that is for agreed 178 $ lines12-15. ________________________ be disbursed to __________________________________________________ at 3 property located at ___________________________________________________________________________, in upon by the parties. If a firm is holding trust funds that parties want the firm to disburse, the ______________________of_______________________, State of Wisconsin, be canceled and the Parties hereby 94 the following address _____________________________________________________________________________, parties indicate the amount, the recipients, and the recipients’ addresses on lines 8-11. If 5 release all of their right, title, and interest in and to the Contract, and any and all claims arising out of the transaction. 18 (X) ______________________________________________________________________ _____________________ 10 1

parties agree to the terms of a cancellation agreement and mutual release, the parties

19 10 6 117

Party's Signature  Print Name Here •liabilitytofor Date  $The ________________________ shall be disbursed __________________________________________________ at agree tohereby release thethe firm from the trust as as directed. Parties release broker(s) from any and alldisbursing liability for disbursing the funds trust funds directed and hereby authorize and direct the broker(s) to disburse the trust funds held on behalf of the Parties as follows: the following address ____________________________________________________________________________. Lines 12-17

20 8 12 21 13 9 14 15 22 10 23 16 11 17

(X) ______________________________________________________________________ _____________________ $Party's ________________________ shall be disbursed __________________________________________________ at This Cancellation Agreement and Mutual shall be effective only if all Parties Date to the Contract have Signature  Print Name Here •Release to(CAMR) signed an identical copy of this CAMR (including signatures on separate but identical copies of the CAMR), and if the the following address _____________________________________________________________________________, fully-executed CAMR has been delivered to the Party initiating the CAMR on or before ____________________ __________________________________________. Delivery may be made in any manner authorized in the Contract. (X) ______________________________________________________________________ _____________________ $Party's ________________________ shall be disbursed to __________________________________________________ at Signature  Print Name Here • Date  NOTE: The Party initiating this CAMR may withdraw the CAMR prior to acceptance and delivery as provided at the following address ____________________________________________________________________________. lines12-15.

24 12 25 13 18 14 19 15 26 27 16 20 17 21

(X) _____________________ This______________________________________________________________________ Cancellation Agreement and Mutual Release (CAMR) shall be effective only if all Parties to the Contract have Party's Signature copyPrint Name Here • the form DateCAMR),  Linesan 12-17 parties that is effective only all parties the agreement sign signed identicalremind of this CAMR (including signatures on separate but ifidentical copies to of the and if the (X) ______________________________________________________________________ _____________________ fully-executed CAMR delivered to identical the Party initiating CAMR on or before ____________________ an identical copyhasorbeen separate but copies the of the form and if the fully-executed form Party's Signature  Print Name Here • Date  __________________________________________. Delivery may be made in any manner authorized the Contract. is delivered to the party making the proposed cancellation agreement and in mutual release (X) ______________________________________________________________________ _____________________ on or before the date specified on lines 14-15. Parties can achieve delivery to another party Party's The Signature Printthis Name Heremay • withdraw the CAMR prior to acceptance and delivery Date as provided at NOTE: Party  initiating CAMR in ______________________________________________________________________ any manner authorized in the agreement. (X) _____________________ lines12-15. Party's Date  LinesSignature 18-21  Print Name Here •

28 29 18 22 19 23

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date  (X) ______________________________________________________________________ _____________________ (X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date  Party's Signature  Print Name Here • Date 

30 31 20 24 21 25

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date  (X) ______________________________________________________________________ _____________________ (X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date  Party's Signature  Print Name Here • Date 

22 26 23 27

(X) ______________________________________________________________________ _____________________ (X) ______________________________________________________________________ _____________________ The parties Party's Signaturesign  the Print agreement, Name Here • print their names, and date the form on Datelines  18-31. The Party's Signature  Print Name Here • Date  signature lines begin on line 18 and repeat until line 31 with a total of 7 signature spaces.

24 28 25 29

(X) ______________________________________________________________________ _____________________ contracts so the signature the lines do not specifically state buyer and seller. (X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date  Party's Signature  Print Name Here • Date 

26 30 27 31

(X) ______________________________________________________________________ _____________________ (X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date  Party's Signature  Print Name Here • Date 

Parties can use this form to cancel offers to purchase and other agreements such as listing

193

REAL ESTATE SALES

WB-24 OPTION TO PURCHASE Approved by the Wisconsin Real Estate Examining Board 10-1-12 (Optional Use Date) 01-1-13 (Mandatory Use Date)

Page 1 of 7, WB-24

WB-24 OPTION TO PURCHASE LICENSEE DRAFTING THIS OPTION ON _______________________________________________________ [DATE] IS (AGENT OF BUYER) Ply 1,2,3 if face: (8.5decides x 12.25) to buy a seller agrees to sell the property a black buyer (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE it. If a buyer exercises an option, the seller must sell the property. A buyer does not have to exercise 3 The Seller (Optionor), _____________________________________________________________________________________________, hereby grants to the4 the option. Parties__________________________________________________________________________________________________________, can negotiate whether an option will be recorded and whether a party can assign Buyer (Optionee), the5 an option If a right is assignable, means a party can transfer contractual rights to another option torights. purchase (Option) the Property known as [StreetitAddress] ____________________________________________________________________ DISTRIBUTED BY WISCONSIN REALTORS ASSOCIATION WB-24-A 6 ______________________________________________________________________________________ thea________________________________ party. For example, a seller could sell the property subject to the optioninor buyer could assign the 7 of _______________________________________________ , County of ______________________________________ , Wisconsin, on the following terms: buyer’s right to exercise the option to another party. The buyer (optionee) gives the seller (optionor) 8 DEADLINE FOR GRANT OF OPTION This Option is void unless a copy of the Option, or separate but identical copies, is/are signed by all an9 option fee that tocan to the purchase price if the option is exercised. If (Time an option is not Sellers and delivered Buyerbe on applied or before _____________________________________________________________ is of the Essence). Approved by the Wisconsin Real Estate Examining Board Page 1 of 7, WB-24 exercised, the optionor typically keeps the option fee. WISCONSIN REALTORS ASSOCIATION 10 OPTION TERMS 10-1-12 Use Date) 01-1-13 (Mandatory Use1 Date) 4801 Forest Run Road Ply 1,2,3 face: black (8.5 x 12.25) 177695 11 WB-24 A (Optional & B_Layout 11/2/12 AM Page ■ INITIAL OPTION1 TERM: A7:06 nonrefundable option fee of $_________________________ will be paid by Buyer to Seller withinMadison, ______________ days Wisconsin 53704 WB-24 OPTION TO PURCHASE Lines 12 of the later 1-7 of: (i) the granting of this Option, or (ii) the deadline for execution of a lease if line 141 of this Option is checked. This Option only be Pagemay 1 of 7, WB-24 13 exercised if Buyer delivers written notice to Seller no later than midnight _____________________________________________ unless extended below. 1 LICENSEE DRAFTING THIS OPTION ON _______________________________________________________ [DATE] IS (AGENT OF BUYER) 14 ■ EXTENDED OPTION TERM: The Deadline to exercise this Option shall be extended until midnight ___________________________________, upon 2 (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE DISTRIBUTED BY WISCONSIN REALTORS ASSOCIATION WB-24-A OF SELLER/LISTING BROKER) (AGENT 15 payment of $_______________________________ to Seller on or before ____________________________________________________, as an option 3 The Seller (Optionor), _____________________________________________________________________________________________, hereby grants to 16the extension fee which shall not be refundable. 4 Buyer (Optionee), __________________________________________________________________________________________________________, 17an ■ option EXERCISE: To exercise Option, Buyer sign Address] and deliver (i) the notice at lines 355-361, or (ii) any other written notice which states that 5 to purchase (Option) this the Property known must as [Street ____________________________________________________________________ 18______________________________________________________________________________________ Buyer exercises this Option. If the Option is exercised, $_________________________ of the option feein and $_________________________ of the 6 theWISCONSIN ________________________________ Approved by the Wisconsin Real Estate Examining Board Page 1 of 7, WB-24 REALTORS ASSOCIATION 19ofoption extension fee, Date) if any,01-1-13 shall be a credit against the purchase priceof at______________________________________ closing. 7 _______________________________________________ , County , Wisconsin,4801 on the following terms: 10-1-12 (Optional Use (Mandatory Use Date) Forest Run Road Madison, Wisconsin 53704 8 GRANTfees OFare OPTION Thisinto Option is void unless a copy of the Option, or separate but identical copies, is/are signed by all 20 DEADLINE CAUTION: IfFOR the option to be paid listing broker’s trust account or to a third party, specify in additional provisions at lines 256-268 WB-24 OPTION TO 1and of 7, WB-24 firm lines 1-2 the option to 325. describe thePURCHASE agency relationship between (Time the firm the 9 and uses delivered to Buyer on of or before _____________________________________________________________ is Page of the Essence). 21Sellers orA326-330 or in a separate agreement attached per line 10 OPTION TERMS party for whom the firm is drafting the option. The drafting licensee dates the option and strikes 1 LICENSEE DRAFTING THIS OPTION ON _______________________________________________________ [DATE] IS (AGENT OF BUYER) 22 TERMS OF PURCHASE If this Option is exercised per the terms of this Option, the following shall be the terms of purchase: 11 OPTION TERM: A nonrefundable option $_________________________ willisbeplaced paid byAPPLICABLE Buyer Seller within ______________ days 2■(AGENT OF SELLER/LISTING BROKER) OFofBUYER ANDseller’s SELLER) STRIKE NOT 23;
INITIAL PURCHASE PRICE:____________________________________________________________________________________________________ the agency choices that do(AGENT not fee apply. The nameTHOSE onto line 3 followed by Dollars the 3 The Seller (Optionor), _____________________________________________________________________________________________, hereby grants 12 later of: (i) the granting of this Option, or (ii) the deadline for execution of a lease if or lineequivalent 141 of this Optionunless is checked. This Option may onlytobe 24of($the _______________________________________________________ ) will be paid in cash at closing otherwise provided below. name and the property 4 buyer’s the Buyerif Buyer (Optionee), __________________________________________________________________________________________________________, 13 exercised delivers written notice to Seller no address. later than midnight _____________________________________________ unless extended below. 25 ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Option 5 an option to purchase (Option) the Property known as [Streetthis Address] ____________________________________________________________________ 14 ;
"


The Deadline to exercise Option shall be extended until midnight ___________________________________, upon 266not excluded at lines 28-29, and the following additional items: __________________________________________________________________ ______________________________________________________________________________________ in the ________________________________ Lines 8-21 15 payment of $_______________________________ to Seller on or before ____________________________________________________, as an option 277_________________________________________________________________________________________________________________________. of _______________________________________________ , County of ______________________________________ , Wisconsin, on the following terms: 16 extension fee which shall not be refundable. FOR GRANT OF OPTION This________________________________________________________________________________ Option is void unless a copy of the Option, or separate but identical copies, is/are signed by all 288■DEADLINE NOT INCLUDED IN PURCHASE PRICE: 17 ;
EXERCISE: To exercise this Option, Buyer must sign and deliver (i) the notice at lines 355-361, or (ii) any other written notice which states that 9_________________________________________________________________________________________________________________________. Sellers and delivered to Buyer on or before _____________________________________________________________ (Time is of the Essence). 29 18 Buyer exercises this Option. If the Option is exercised, $_________________________ of the option fee and $_________________________ of the 10CAUTION: OPTION TERMS 30 Identify fixtures by tenant, if applicable, Fixtures that are on the Property (see lines 75-82) to be excluded by 19 option extension fee, iftrade any, shall be a owned credit against the purchase price atand closing. 11 ;
INITIAL OPTION TERM: A nonrefundable option fee of $_________________________ will be paid by Buyer to Seller within ______________ days 31 Seller or which are rented and willbecontinue to   
  
  
 

to be owned by the lessor. 2012 CAUTION: If the option fees are to paid into party, in additional linesonly 256-268 of the later of: (i) the granting of this Option, or (ii) the deadline for execution of a leaseaifthird line 141 of specify this Option is checked.provisions This Optionatmay be 32or NOTE: Theor terms of thiswritten Option, notattached listing contract or marketing materials, determine what items are included/excluded. 21 326-330 in a separate agreement per linethan 325.midnight 13 exercised if Buyer delivers notice tothe Seller no later _____________________________________________ unless extended below. 33 OPTIONAL THISistoOPTION THAT ARE PRECEDED ANOption, OPEN BOX (  ) AREshall PART OPTION ONLY 22 OF PROVISIONS PURCHASE TERMS If this OF Option exercised theshall terms of BY thisuntil the following beOFtheTHIS terms of purchase: 14TERMS ;
"


The Deadline exercise this per Option be extended midnight ___________________________________, upon IF 23 ;
PURCHASE PRICE:____________________________________________________________________________________________________ Dollars 34 THE BOXofIS$_______________________________ MARKED SUCH AS WITH AN “X.” THEY AREonNOT PART____________________________________________________, OF THIS OPTION IF MARKED “N/A” OR ARE LEFT BLANK. as an option 15 payment to Seller or before 24 ($DELIVERY _______________________________________________________ will be paidstated in cashinorthis equivalent closing unless otherwiseand provided 16 extension feeOF which shall not be refundable. 35 DOCUMENTS AND WRITTEN NOTICES Unless )otherwise Option,atdelivery of documents writtenbelow. notices to a 17 ;
EXERCISE: To exercise this Option, Buyer must signofand (i) the notice at at lines lines 37-54. 355-361, or (ii) any other written notice whichofstates that 25 ;
 

 

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&$3e this Option 36 party shall be effective only when accomplished by one thedeliver methods specified 18 Buyer exercises this28-29, Option. If the the Option isorexercised, $_________________________ optionrecipient fee and $_________________________ of 39. the 26 atDelivery: lines following additional items: __________________________________________________________________ 37not (1)excluded Personal givingand the document written notice personally to the Party, or of thethe Party's for delivery if named at line 38 or option extension fee, if any, shall be a credit against the purchase price at closing. 2719 _________________________________________________________________________________________________________________________. 38 Seller's recipient for delivery (optional): ________________________________________________________________________________________ If the option fees are to PRICE: be paid ________________________________________________________________________________ into   
  
  
 

to a third party, specify in additional provisions at lines 256-268 2820 ; CAUTION: NOT INCLUDED INdelivery PURCHASE 39 recipient (optional): attached ________________________________________________________________________________________ 21Buyer's or 326-330 or in aforseparate agreement per line 325. 29 _________________________________________________________________________________________________________________________. 40 (2) Fax: transmissionIf ofthis the Option document written notice to theterms following telephone 22 TERMS OF fax PURCHASE is or exercised per the of this Option,number: the following shall be the terms of purchase: 30 CAUTION: Identify trade fixtures owned by tenant, if applicable, and Fixtures that are on the Property (see lines 75-82) to be excluded by 23Seller: ;
PURCHASE PRICE:____________________________________________________________________________________________________ 41 (___________) _______________________________________ Buyer: (___________) Lines 8-9 are contain thewill deadline the seller to grant the option _______________________________________ and deliver it to the buyer. Dollars Time 31 Seller or which rented and continue tofor be owned by the lessor. 24 ($ _______________________________________________________ ) willnotice be paidfees in cash or equivalent at closing unless otherwise below. delivery 42 (3) Commercial Delivery: depositing the document or written prepaid or charged to an account withprovided a commercial 32 NOTE: The terms of this Option, not the listing contract or marketing materials, determine what items are included/excluded. is of the essence unless the buyer strikes it from line 8. The terms of the option are listed on 25service, ;
 addressed 

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&$3e of thisaddress Option 43 toTERMS the Party, orTHIS to theOPTION Party's THAT recipient forPRECEDED delivery if named at OPEN line 38BOX or 39,(
for delivery to theOF Party's delivery at 33 OPTIONAL PROVISIONS ARE BYfee AN ) ARErefundable PART THISif OPTION ONLY IF 26 lines not excluded at lines 28-29,the and option theOF following additional items:11. __________________________________________________________________ 10-19, with fee on line An option is usually not the option 44 line 47 or 48. 3427 THE BOX IS MARKED SU

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HEY ARE NOT PART OF THIS OPTION 

89

RE LEFT BLANK. _________________________________________________________________________________________________________________________. is not exercised. If the exercises the option, the terms specify how the option fee 45 DELIVERY (4) U.S. depositing the buyer document orNOTICES written notice postage prepaid in the U.S.Option, Mail, addressed to theand Party, or tonotices the Party's 35 OF Mail: DOCUMENTS AND WRITTEN Unless otherwise stated inoption this delivery of either documents written to a 28 ; NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________________________ 46 recipient delivery at line 38 or 39, forbydelivery tothethemethods Party's delivery address line 47 or13 48.states the deadline by which will beforbecredited toward the purchase of the property. Line 36 party shall effectiveif named only when accomplished one ofprice specified at linesat37-54. 29 _________________________________________________________________________________________________________________________. 47 Delivery address for Seller: _________________________________________________________________________________________________ 37 (1) Personal Delivery: giving the document or written the Party, or the Party's recipient for delivery if named at 14-16 line 38 or are 39. 30 CAUTION: Identify trade fixtures owned tenant,notice if applicable, andtoFixtures that arenotice on the Property (see lines 75-82) to be excluded by the buyer must exercise theby option bypersonally delivering written to the seller. Lines 31 Sellerrecipient oraddress whichfor are rented(optional): and will continue to be owned by the lessor. 38 Seller's ________________________________________________________________________________________ 48 Delivery fordelivery Buyer: _________________________________________________________________________________________________ terms forterms an ofthe the option. 17-19 are the instructions forincluded/excluded. exercising the option 32 NOTE: The ofextension this Option, not listing contractLines marketing determine items are 39 Buyer's recipient forelectronically delivery (optional): ________________________________________________________________________________________ 49 (5) E-Mail: transmitting the document ororwritten noticematerials, to the Party’s e-mail what address, if given below at line 53 or 54. If this is a any option will be credited towards the purchase 20-21 instruct the 33 and OPTIONAL PROVISIONS THIS OPTION THAT BY AN OPEN BOX price. (
ARELines PARTfamily OF THIS OPTION ONLY IF 40 (2)how Fax: fax transmission offees theOF document orpurchased written notice to PRECEDED the telephone number: 50 consumer transaction whereTERMS the property being orARE the salefollowing proceeds are used primarily for) personal, or household purposes, 34 THE BOX IStoMARKED SU

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HEY AREwill NOTbe PART OFBuyer: THIS OPTION 

89

RE LEFT BLANK. 41 (___________) _______________________________________ (___________) _______________________________________ parties document howaddress option fees held. 51Seller: each consumer providing an e-mail below has first consented electronically to the use of electronic documents, e-mail delivery and OF DOCUMENTS AND WRITTEN NOTICES orUnless otherwise statedprepaid in this Option, delivery of documents anda written noticesdelivery to a 4235 DELIVERY (3) Commercial Delivery: depositing the document written notice fees or charged to an account with commercial 52 electronic signatures in the transaction, as required by federal law. 36 party shall be effective only when accomplished by one of the methods specified at lines 37-54. 43 service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at 53 addressDelivery: for Sellergiving (optional): _______________________________________________________________________________________ 37E-Mail (1) Personal the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 38 or 39. 44 line 47 or 48. 54 forforBuyer (optional): _______________________________________________________________________________________ 38E-Mail Seller'saddress recipient delivery (optional): ________________________________________________________________________________________ 45 (4) recipient U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's 39 TIME Buyer's delivery (optional): 194 55 IS OF THEfor ESSENCE “Time is of________________________________________________________________________________________ the Essence” as to: (1) payment of option fees; (2) payment of extension fees; (3) Seller’s grant of this 46 recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. 40 (2) Fax: fax transmission of the document or written notice to the following telephone number: 56Delivery Option; (4) Buyer’s exercise of this Option; (5) occupancy; (6) date of closing; STRIKE AS APPLICABLE and all other dates and Deadlines in this 47 address for Seller: _________________________________________________________________________________________________ 41 Seller: (___________) _______________________________________ Buyer: (___________) _______________________________________ 48 Delivery address for Buyer: _________________________________________________________________________________________________ 57 Option (3) except: ____________________________________________________________________________. If “Time the Essence” applies 42 Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account withisaofcommercial delivery 1

option is a unilateral 177695An WB-24 A & B_Layout 1 11/2/12 7:06contract AM Page 1where 2

®

®

®

®

12 the later of: (i)Parties the granting of this Option, or (ii) the deadline for execution of a lease if line 141 of this Option is checked. This Option may only be 114ofagreed by theprice, in writing. 124 Sale multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if 13 exercised if Buyer delivers written notice to Seller no later than midnight _____________________________________________ unless extended below. 115 CLOSING PRORATIONS The items, if applicable, shallof be prorated at closing, based upon date of closing values: real estate taxes, 125 known, multiplied by current millfollowing rate (current means as of the date closing) 14 ;
"


The Deadline to exercise this Option shall be extended until midnight ___________________________________, upon 116 rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and _________________ 126 ___________________________________________________________________________________________________________. 15 payment of $_______________________________ to Seller on or before ____________________________________________________, as an option 117 ___________________________________________________________________________________________________________________. 127 Buyer informed the actual real estate taxes for the year of closing and subsequent yearsOther may beApproved substantially Forms 16 CAUTION: extension fee whichisshall not be that refundable. 118 CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. 128 than theToamount used proration transactions construction, extensive rehabilitation, remodeling 17 different ;
EXERCISE: exercise thisfor Option, Buyerespecially must signinand deliver (i) involving the noticenew at lines 355-361, or (ii) any other written notice which states that 119or Any income, taxes expenses shall accrue to Seller, and bethe prorated at closing, throughofpossible the prior toand closing. 129 area-wide re-assessment. Buyer isOption encouraged to contact local assessor regarding taxfeechanges. 18 Buyer exercises thisorOption. If the is exercised, $_________________________ the day option $_________________________ of the

- 12

120option Real extension estate taxes beagree prorated at closing on [CHECK BOX FOR APPLICABLE PRORATION 19 fee,shall if any, shall be a credit against purchase at closing. 130 Buyer and Seller to re-prorate thebased realtheestate taxes,price through the day prior to closing based uponFORMULA]: the taxes on the actual tax bill for 121 The net general real estate taxes for the preceding year, or the current year if available (Net real estate taxes arelines as 20 CAUTION: option areand to be paideach intoowing   
  
  
 

to thirdwithin party,5 specify in additional provisions at 256-268 131 the year Ifofthe closing, withfees Buyer Seller his or her pro-rata share. Buyer ashall, days of general receipt, forward a copy of the billdefined

Lines 22-32

122or 326-330 property taxesagreement after taxtocredits and lottery are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) 21 or in a separate attached per 325.credits 132 to general the forwarding address Sellerstate agrees provide atline closing. The Parties shall re- 


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22 OFCurrent PURCHASE this Option is obligation exercised permeans the responsibility terms this Option, following shallresponsibility be the terms of purchase: 123 TERMS assessment current mill rate (current as of theofdate of closing) 133 bill. Buyer and Seller agree Ifthistimes is a post-closing and is the of the Parties tothe complete, not the of the real

23 PRICE:____________________________________________________________________________________________________ Dollars 124;
PURCHASE Sale price, by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if 134 estate brokers in thismultiplied transaction. 24 ($ _______________________________________________________ ) will be paid in cash or equivalent at closing unless otherwise provided below. 125 known, multiplied by current mill rate (current means as of the date of closing) 135 LEASED PROPERTY 
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&$3e of this Option 126transfer all security ___________________________________________________________________________________________________________. 136 deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are 26 not excluded at lines 28-29, and the following additional items: __________________________________________________________________ 127_________________________________________________________________________________________________________________________ CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially 137 27 _________________________________________________________________________________________________________________________. 128 different than the amount used for proration especially in transactions involving construction, rehabilitation, remodeling 138 additional terms, if any, at lines 256-268new or 326-330 or attach extensive as an addendum per line 325. 28 _______________________________________. ; NOT INCLUDED IN PURCHASE PRICE: Insert ________________________________________________________________________________ 129 or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. 139 LEASE-OPTION PROVISIONS [CHECK BOX ON LINE 140 OR 141, IF APPLICABLE]: 29 _________________________________________________________________________________________________________________________. 130CAUTION: Identify Buyer and Seller agree to re-prorate the realif estate taxes, through the day prior based upon taxes on the tax bill for 30 trade by tenant, applicable, Fixtures areto onclosing the (seethe lines 75-82) toactual be excluded by 140 Concurrent with thefixtures granting owned of the Option, Seller and Buyer haveand entered into athat written lease for Property the Property. 131 the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill 31 Seller or which are rented and will continue to be owned by the lessor. 141 Thisterms Optionofis this contingent upon andtoBuyer, within ___________ days from granting ofwhat this Option, into a written lease 132NOTE: toThe the forwarding address Seller agrees provide at closing. The Parties shallthere- 


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32 Option, notSeller the listing contract or marketing materials, determine items entering are included/excluded. 142 for the Property with minimum terms which shall include: term from _______________________ to _______________________ and of ONLY 133 OPTIONAL bill. Buyer and Seller agree thisOF is aTHIS post-closing andPRECEDED is the responsibility the Parties not the the realIF 33 PROVISIONS TERMS OPTIONobligation THAT ARE BY AN of OPEN BOX ( to
complete, ) ARE PART OFresponsibility THIS OPTION 143 anISinitial rentinofthis $__________________ per month or this nullOPTION and void.

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A buyer states the terms on which the property will be purchased if the buyer exercises the option. Like the offers to purchase, this section addresses included and excluded items.

35 OFANY DOCUMENTS AND
WRITTEN NOTICES Unless otherwise stated in this
Option, delivery documents written notices d to a 144 [CHECK OF THE FOLLOWING THAT  
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36 shallallbeInsecurity effective only when accomplished by one of$__________________ the specifiedThe lines 37-54. 145 the event that this Option is timely ofateach monthly payment of $__________________ 136party transfer deposits and prepaid rentsexercised, thereunder to methods Buyer at closing. terms of therent (written) (oral) STRIKE ONE lease(s), if any, are

37 (1) Personalshall Delivery: givingto the or written notice personally the Party, or rent the Party's recipientbyfor delivery if named at line 38 or 39. 146 be applied the document purchase price while the balance shall betodeemed solely that is retained Seller. 137 _________________________________________________________________________________________________________________________ 38 Seller's recipient for Lenders delivery may (optional): ________________________________________________________________________________________ 147 NOTE: not recognize aInsert creditadditional for rent paid under a lease. 138 _______________________________________. terms, if any, at lines 256-268 or 326-330 or attach as an addendum per line 325. 39 Buyer's recipient delivery (optional): ________________________________________________________________________________________ 148 Buyerfor may not exercise this Option unless Buyer is current with all rent. 139 LEASE-OPTION PROVISIONS [CHECK BOX ON LINE 140 OR 141, IF APPLICABLE]: 40 (2) Fax: fax transmission of the document or written notice to the following telephone number: 149 Any materialwith breach of the lease by Buyer alsoand constitute a default under thisaOption. 140Seller: (___________) Concurrent the granting of the Option,shall Seller Buyer have entered into written_______________________________________ lease for the Property. 41 _______________________________________ Buyer: (___________) 150 PROPERTY CONDITIONDelivery: REPRESENTATIONS Seller represents to Buyer that, fees as of prepaid the date Seller grants to thisanOption, Sellerwith hasanocommercial notice or 42 (3) Commercial depositing the document or written notice or charged account 141 This Option is contingent upon Seller and Buyer, within ___________ days from the granting of this Option, entering into a written delivery lease 151 of any Defects (lines 72-74

 



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__________________________ 43 knowledge service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address 142 for the Property with minimum terms which shall include: term from _______________________ to _______________________ and at 152 if applicable, Real Estate Condition Report dated ________________________________, and, if applicable, Vacant Land Disclosure Report 44 and, line 47 or 48. 143 an initial rent of $__________________ per month or this Option shall be null and void. 153 was/were received Buyer postage prior to Buyer signing thisU.S. Option andaddressed which is/areeither made to a part this Option 45 dated _____________________, (4) U.S. Mail: depositingwhich the document or writtenbynotice prepaid in the Mail, the ofParty, or to the Party's 144by [CHECK ANY OFDATES THE FOLLOWING THAT APPLY, IFand LINE___________________________________________________________ 140 OR 141 WAS at CHECKED 46 recipient for delivery if named at line or 39, AS for delivery to the Party's delivery address line 47 or ABOVE]: 48. 154 reference COMPLETE OR38STRIKE APPLICABLE

Lines 139-149

145Delivery address In the event that this Option is timely exercised, $__________________ of each monthly rent payment of $__________________ 47 for Seller: _________________________________________________________________________________________________ 155 ____________________________________________________________________________________________________________________ 146Delivery address shall applied to the INSERT purchaseCONDITIONS price while the balance shallINCLUDED be deemedINsolely rent that is retained by Seller. REPORT(S) 48 forbe Buyer: _________________________________________________________________________________________________ 156 _______________________________ NOT ALREADY THE DISCLOSURE OR CONDITION 147 NOTE: Lenders may not recognize a credit for rent paid under a lease. 49 (5) E-Mail
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'-mail address, if given below at inline 53Stat. or 54.§ If this is a 157 CAUTION: If the Property includes 1-4 dwelling units, a Real Estate Condition Report containing the disclosures provided Wis. 148consumer transaction Buyer may not exercise this Option unless Buyer is current with all rent. 50 where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, 158 709.03 may be required. If the Property does not include any buildings, a Vacant Land Disclosure Report containing the disclosures 51 each consumer providing an e-mail address hasshall first consented electronically the of electronic documents, e-mailthat delivery and 149provided material breach of be the lease below by Buyer also constitute a default under thisuse Option. 159 in Wis.Any Stat. § 709.033 may required. Excluded from these requirements aretosales of property with 1-4 dwelling units 52 electronic signatures in the transaction, as required by federal law. 150has PROPERTY REPRESENTATIONS represents to Buyer that, as the date Seller grants this Option, (for Seller has no notice or 160 never beenCONDITION inhabited, sales exempt from the realSeller estate transfer fee, and sales by ofcertain court-appointed fiduciaries example, 53 E-Mail address for Seller (optional): _______________________________________________________________________________________ 151personal knowledge of any Defects 

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__________________________ 161 representatives who(lines have 72-74

 
never occupied the
Property). The buyer may have certain rescission rights per Wis. Stat. § 709.05 if 54 E-Mail address for Buyer (optional): _______________________________________________________________________________________ 162 not furnish report(s) within 10 days Seller grants this Option or if a reportand, disclosing Defects is furnished before Report 152Seller and, does if applicable, Realsuch Estate Condition Report datedafter ________________________________, if applicable, Vacant Land Disclosure 55 TIME IS OF THE ESSENCE 8Time i2
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163 of those 10 days, but after the Option is submitted Seller.prior Buyer shouldsigning reviewthis theOption report and formwhich or consult 153expiration dated _____________________, which was/were received bytoBuyer to Buyer is/are with madeana attorney part of this Option 56 03+/.
 
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STRIKE AS APPLICABLE and all other dates and Deadlines in this 164 regarding rights. 154forbyadditional referenceinformation COMPLETE DATESrescission OR STRIKE AS APPLICABLE and ___________________________________________________________ 57 Option except: ________________________________________________############################
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 ____________________________________________________________________________________________________________________ 58 to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to a date 166 which is materially inconsistent withINSERT the above representations. purposesINCLUDED of this provision (lines 150-156), Defect does not include 156Option, _______________________________ CONDITIONS NOTFor ALREADY IN THE DISCLOSURE OR CONDITION REPORT(S) 59 structural, or Deadline, then performance within aofreasonable time ofhastheactual dateknowledge or Deadline allowed before a breach occurs. 167 mechanical or other conditions which the Buyer or iswritten notice or which Buyer discovers priorprovided to the exercise 157 CAUTION: If the Property includes 1-4 dwelling units, a Real Estate Condition Report containing the disclosures in Wis. Stat. § 60 ofPERSONAL RECEIPTdoes Personal deliveryany to, or Actual Receipt by, any Buyer or Sellercontaining constitutes the personal delivery 168 this Option. 158 709.03 may DELIVERY/ACTUAL be required. If the Property not include buildings, a Vacant Landnamed Disclosure Report disclosures 61 to, or Actual Receipt by, all Buyers or Sellers. 169 ZONING Seller represents that the property is zoned _____________________________________________________________________________. 159 provided in Wis. Stat. § 709.033 may be required. Excluded from these requirements are sales of property with 1-4 dwelling units that

A buyer can use the WB-24 to create a lease-with-option arrangement with the seller. A lease with an option can create a rent-to-own arrangement between the parties where a buyer can negotiate that a portion or all rental payments will be applied to a property’s purchase price if the buyer exercises the option. The parties can enter into a written lease at the same time as the option or within a number of days of the seller granting the option. Line 169

has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries (for example, personal representatives who have never occupied the Property). The buyer may have certain rescission rights per Wis. Stat. § 709.05 if Line 169 allows the buyer to address the property’s zoning. A seller may not be aware of 162 Seller does not furnish such report(s) within 10 days after Seller grants this Option or if a report disclosing Defects is furnished before how the property parties can consult tax bills, local inspectors, 163 expiration ofseller’s those 10 days, but after is thezoned Option is and submitted to Seller. Buyer should review the report formbuilding or consult with an attorney 164 or for additional informationtoregarding rescission city planners determine a rights. property’s zoning classification. Zoning classifications and 165 use 


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vary from property to property. If a buyer intends to use the property for something other 166 Option, which is materially inconsistent with the above representations. For purposes of this provision (lines 150-156), Defect does not include than its current use, a buyer may need to make an offer contingent on obtaining confirmation 167 structural, mechanical or other conditions of which the Buyer has actual knowledge or written notice or which Buyer discovers prior to the exercise zoning 168 of of this Option. or receiving permission for the intended use. 169 ZONING Seller represents that the property is zoned _____________________________________________________________________________. 160 161

195

REAL ESTATE SALES WB-24-B

DISTRIBUTED BY WISCONSIN REALTORS® ASSOCIATION

Lines 209-213

Property Address: _________________________________________________________________________________________________________Page 5 of 7, WB-24

RECORDING OF OPTION Buyer (may) (may not) STRIKE ONE ""
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If this 211 Option or a separate instrument evidencing this Option is to be recorded, insert legal description at lines 256-268 or 326-330 or attach as an 212 addendum per line 325. If recording, the parties agree to provide authenticated or acknowledged signatures as may be required. 213 CAUTION: Failure to record may give persons with subsequent interests in the Property priority over this Option. Ply 4,5,6 face: black (8.5 x 12.25) 214WB-24 TITLEAEVIDENCE 177695 & B_Layout 1 11/2/12 7:06 AM Page 7 This section 11/2/12 addresses whether the buyer will record the option or record a separate document Ply 4,5,6 deed face: (or black (8.5 x 12.25) 177695 WB-24 A & B_Layout 1 OF Page of 7 the purchase price, Seller shall convey the Property by warranty 215 -
CONVEYANCE TITLE: 7:06 UponAM payment condominium evidencing the option. In some situations, buyers may not want to record an option because it 216 deed if Property is a condominium unit, t 







 








will give constructive notice that the buyer is acquiring options, which may change the negotiating 217 conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements 218terms entered under them, recorded easements for the distribution of utilityproperty and municipalorservices, recorded and use restrictions and cautions a for subsequent attempts to acquire options onbuilding property. Line 213 219buyer &$#
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in Option, general that failing to record can cause potential ownership disputes in the this future. 220 taxes levied in the year of closing and _____________________________________________________________________________________ 221Lines ____________________________________________________________________________________________________________________ 314-324 222 __________________________________________________________________________which constitutes merchantable title for purposes of Property Address: _________________________________________________________________________________________________________Page 7 of 7, WB-24 223 $#
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) the Wisconsin Property Address: _________________________________________________________________________________________________________Page 7 of WB-24 314 AUTHORIZATION FOR APPRAISAL, INSPECTIONS AND TESTS Buyer is authorized to have the Property appraised by a Wisconsin licensed or 7,certified 224 Real Estate Transfer Fee. The Parties agree that Seller shall not rezone the Property or create any additional liens or encumbrances on title after 314 315 AUTHORIZATION APPRAISAL, INSPECTIONS ANDtests TESTS is authorized to have the Property appraised byAny a Wisconsin licensed or certified appraiser and toFOR conduct the following inspections and (seeBuyer lines 304-313) 

 
 


. inspection(s) and test(s) shall 225 "
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. party. Inspections and testing be conducted to 315 appraiser and to conduct the following inspections andortests (see 304-313) 

 Anyshall inspection(s) and pursuant test(s) shall 226 WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain 317performed government industry protocols and inspector standards,orasexpert, applicable. 316 be by or a qualified independent or an independent qualified third party. Inspections and testing shall be conducted pursuant to 227 improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making improvements to Property or a use 317 government or industry andfoundation, standards,septic) as applicable. 318 List inspections (e.g.,protocols home, roof, here: ______________________________________________________________________________ 228 other than the current use. 318 List (e.g., home, roof, foundation, septic) here: ______________________________________________________________________________ 319 inspections ____________________________________________________________________________________________________________________________ 229 - TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a 319 ____________________________________________________________________________________________________________________________ 320 List tests (e.g., radon, lead-based paint, well water) here: _______________________________________________________________________________ 230 current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. 320 List (e.g., radon, lead-based paint, well water) here: _______________________________________________________________________________ 321 tests ____________________________________________________________________________________________________________________________ 231 Buyer shall p)

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321 ____________________________________________________________________________________________________________________________ 322 Describe additional inspections and tests, if any, at lines 256-263 or 326-330 or attach as an addendum per line 325. 232 - GAP ENDORSEMENT
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323 NOTE: Any testing authorizations the areasorof326-330 the Property to as bean tested, the purpose the test, (e.g., to determine if 322 Describe additional inspections and tests,should if any, specify at lines 256-263 or attach addendum per line of 325. 233 to provide coverage for any liens or filed or recorded after thethe effective date of insurance 324if neither environmental contamination is should present), any limitations testing andbeany other material terms. 323 NOTE: Anystricken) testingcost authorizations specify theencumbrances areasonofBuyer's thefirstProperty to tested, purpose of the thetitle test, (e.g., to determine if andcontamination beforeThe the attached deed is is recorded, subject to the title insurance policy testing exclusions andany exceptions, provided the title company will issue 324234 environmental present), any limitations on Buyer's and other material terms. 325commitment ADDENDA: _________________________________________________________________ is/are made part of this Option. Unlike the IfThe offer to purchase, arewritten notnotice addressed using pre-printed, theADDITIONAL endorsement. a gap endorsement or equivalentinspections gap coverage is not and available,testing Buyer may give that title is not acceptable 325235 ADDENDA: attached _________________________________________________________________ is/are made for part of this Option. 326 PROVISIONS ___________________________________________________________________________________________ 236 closing (see lines 242-248). optional contingencies in the option to purchase. A buyer lists inspections and tests here and by 326 327 ADDITIONAL PROVISIONS ___________________________________________________________________________________________ ____________________________________________________________________________________________________________________ - ____________________________________________________________________________________________________________________ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance 327237 ____________________________________________________________________________________________________________________ 328 including additional provisions or addendum as necessary. 238 commitment is delivered to Buyer's attorney or Buyer not more than ___________ days after Seller grants $#
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328 ____________________________________________________________________________________________________________________ 329 ____________________________________________________________________________________________________________________ 239 title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 215-223, subject only to 329 ____________________________________________________________________________________________________________________ 330 ____________________________________________________________________________________________________________________ Lines 331-341 240 liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. 330 ____________________________________________________________________________________________________________________ 331 IF GRANTED, THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS OPTION AND ALL 241 CAUTION: Buyer should consider obtaining an update of the title commitment prior to exercising this Option. 331 IF THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTHOFPARTIES SHOULD READ THISOPTION OPTIONBUT ANDARE ALL 332GRANTED, ATTACHMENTS CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION THE PROVISIONS OF THE 242 -
TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title within 332 ATTACHMENTS BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF OPTION THE OPTION BUTTITLE ARE 333 PROHIBITED CAREFULLY. BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OR HOW 243 ___________ )#
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$o This Option was drafted by [Licensee and Firm] _____________________________________________________________________________ Buyer may was deliver to Seller noticeand waiving objections, and the time for closing shall be extended accordingly. If Buyer does not waive 335246 This Option drafted by written [Licensee Firm]the_____________________________________________________________________________ 336the_________________________________________________ on Option ______________________________________________________________. 247 objections, Buyer shall deliver written notice of termination and this shall be null and void. Providing title evidence acceptable for 336248 _________________________________________________ on to______________________________________________________________. closing does not extinguish Sel",#
gations to give merchantable title Buyer. 337 Buyer Entity Name (if any): _____________________________________________________________________________________________ 249 - SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date this 337 Buyer Entity Name (if any): _____________________________________________________________________________________________ 250 is exercised shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. 338Option (x)__________________________________________________________________________________________________________________ Consider a special agreement if area assessments, property owners association assessments, special charges for current 338251 (x)__________________________________________________________________________________________________________________ 339CAUTION:  
 
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! lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). 342 SELLER GRANTS THIS OPTION. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OPTION SURVIVE 256 ADDITIONAL PROVISIONS ___________________________________________________________________________________________ 342 SELLER GRANTS OPTION. THE OF REPRESENTATIONS COVENANTS IN THIS OPTION 343 CLOSING AND THIS THE CONVEYANCE PROPERTY. AGREESAND CONVEY THE MADE PROPERTY ON THE TERMS AND a seller grants an option WARRANTIES, toTHE purchase toSELLER a buyer, theTOseller and the buyer have a SURVIVE legally 257If____________________________________________________________________________________________________________________ 343 CLOSING AND THE CONVEYANCE OFAND THEACKNOWLEDGES PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND 344 CONDITIONS AS SET FORTH HEREIN RECEIPT OF A COPY OF THIS OPTION. 258enforceable ____________________________________________________________________________________________________________________ contract. Lines 331-334 inform parties that licensees can present a general 344 CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OPTION. 259 ____________________________________________________________________________________________________________________ 345 Seller Entity Name any): _____________________________________________________________________________________________ explanation of(ifterms, but parties should consult attorneys if the parties need legal advice or ____________________________________________________________________________________________________________________ 345260 Seller Entity Name (if any): _____________________________________________________________________________________________ opinions. The licensee drafting the option should date it and include the licensee’s firm and 346____________________________________________________________________________________________________________________ (x) _________________________________________________________________________________________________________________ 261 name. A buyer then signs and prints the buyer’s name on line 337 and dates the option. 346262 (x) _________________________________________________________________________________________________________________ 347____________________________________________________________________________________________________________________

 
 
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! 266 350____________________________________________________________________________________________________________________ This Option was presented to Seller by [Licensee and Firm] ____________________________________________________________________ 267 ____________________________________________________________________________________________________________________ 350 This Option was presented to Seller by [Licensee and Firm] ____________________________________________________________________ 351____________________________________________________________________________________________________________________ _____________________________________ on __________________________________________ at _____________________ a.m./p.m. 268 351 _____________________________________ on __________________________________________ at _____________________ a.m./p.m. 352 This Option is rejected _______________________ ______________ This Option is countered _______________________ _______________ 352 This This Option is countered _______________________ _______________ 353 Option is rejected _______________________ Seller Initials !




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Seller Initials !


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Seller Initials !


Date ! counterInitials this Option new Option (WB-24) or draft a Counter-Offer (WB-44) to reference this Option. 354 NOTE: Parties wishing to counter this Option should draft a new Option (WB-24) or draft a Counter-Offer (WB-44) to reference this Option. 355 NOTICE OF EXERCISE OF OPTION By signing below and delivering this notice (see lines 35-54) to Seller, Buyer hereby exercises this Option to 209 210

331 332 337 333 338 334 339 335 340 336 341 337 342 343 338 344 339 345 340 341 346 347 342 343 348 344 349 345 350 346 351 347 352 348 353 349 354 350 355 351 356 357 352 353 358 354 359 355 356 360

IF GRANTED, THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS OPTION AND ALL ATTACHMENTS BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OPTION BUT ARE Buyer Entity NameCAREFULLY. (if any): _____________________________________________________________________________________________ PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OPTION OR HOW TITLE (x)__________________________________________________________________________________________________________________ Other Approved SHOULD BE TAKEN AT CLOSING IF THE OPTION IS EXERCISED. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. Forms - 12  
 
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! Buyer Entity Name (if any): _____________________________________________________________________________________________ SELLER GRANTS THIS OPTION. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OPTION SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND (x)__________________________________________________________________________________________________________________ CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OPTION.  
 
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! SURVIVE SELLER GRANTS THIS OPTION. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OPTION CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND (x) _________________________________________________________________________________________________________________ CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OPTION.

 
 
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! Seller Entity Name (if any): _____________________________________________________________________________________________ This Option was presented to Seller by [Licensee and Firm] ____________________________________________________________________ (x) _________________________________________________________________________________________________________________ _____________________________________ on __________________________________________ at _____________________ a.m./p.m.

 
 
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! NOTE: Parties wishing to counter this Option should draft a new Option (WB-24) or draft a Counter-Offer (WB-44) to reference this Option. This Option was presented to Seller by [Licensee and Firm] ____________________________________________________________________ OF EXERCISE OF OPTION By signingthe below and delivering this noticethe (see terms lines 35-54) to Seller, Buyer hereby exercises this Option to IfNOTICE a seller grants an option, seller is accepting of the buyer’s option to purchase. _____________________________________ on __________________________________________ at _____________________ a.m./p.m. Purchase.

If the seller does not accept the terms, the seller may counter or reject the option to purchase

Buyer Entity352. (if any): ______________________________________________________________________________________________ on Option line This isName rejected _______________________ ______________ This Option is countered _______________________ _______________ Seller Initials !




Date !
























































Seller Initials !


Date ! (x)__________________________________________________________________________________________________________________ Lines 355-361 NOTE: Parties wishing to counter this Option should draft a new Option (WB-24) or draft a Counter-Offer (WB-44) to reference this Option.  
 
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! NOTICE OF EXERCISE OF OPTION By signing below and delivering this notice (see lines 35-54) to Seller, Buyer hereby exercises this Option to Purchase. (x) _________________________________________________________________________________________________________________

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A buyer can use this section to give notice to the seller that the buyer is exercising the option. A buyer can choose to exercise the option during the term of the option but the buyer does not have to exercise the option. An option to purchase is not the same as a right of first refusal.

WB-25 BILL OF SALE Approved by the Wisconsin Department of Regulation and Licensing 4-1-01 (Optional Use Date) 12-1-01 (Mandatory Use Date)

1

2 The

WB-25 BILL OF SALE

Seller conveys to (Buyer), for a good and valuable consideration, all of Seller's interest in the personal property identified in the schedule at lines 3 to 25 and in the addenda line 26. WB-25 Bill of Sale is a contract that transfers the interest one person has inper personal

PERSONAL PROPERTY SCHEDULE 3 property to another person. It can be when a seller is selling a home and the home’s contents or 4 when a property owner is selling a building and a business located in that building. For example, 5 a property owner selling a building and the restaurant located in the building could use a bill of 6 sale to transfer the restaurant’s freezers, stoves, tables, chairs, and other equipment. 7

8 9 10 11 12 13 14 15 16

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An investor who wants a separate accounting of personal property for tax purposes may request that a seller prepare a WB-25 Bill of Sale. When a licensee is involved in a sale that includes personal property, the licensee should work with sellers and buyers to prepare an inventory of the Approved by the Wisconsin Department of Regulation and Licensing items that will be transferred. 4-1-01 (Optional Use Date) 12-1-01 (Mandatory Use Date) WB-25 BILL OF SALE Lines 1-26

2

Seller conveys to (Buyer), for a good and valuable consideration, all of Seller's interest in the personal property identified in the schedule at lines 3 to 25 and in the addenda per line 26.

3

PERSONAL PROPERTY SCHEDULE

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4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

ADDENDA

The attached

is/are made part of this Bill of Sale.

Seller hereby warrants and represents that Seller owns said personal property free and clear of all liens and encumbrances, that Seller has good right to sell the same and Seller will warrant and defend the same against the lawful buyer’s nameof is placedexcept: on line 1. Lines 1 and 2 state that the seller is to convey to the claims and demands all persons, 29 The 27 28

30 named

buyer all of the seller’s interest in the personal property that is identified on lines 3-25 as listed on an addenda. The seller lists each item of personal property that the seller is Note: The above warranty applies only to title, if there are any other warranties or representations as to other 32 transferring to the buyer. If the seller is transferring many items of personal property to the characteristics of the personal property, a separate agreement must be drafted. 33 buyer or if the seller would prefer to list the items using an attached addendum, the seller 26onby referencing the attached addendum. This Bill ofthat Sale on was line drafted [date] by [Licensee and firm] 34 indicates 31 or

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(X)

37 38

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Phone:

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Print Name Here:

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Date

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Fax: Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipform.com

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Other Approved Forms - 12

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27-43 The attached ADDENDA 26 Lines

is/are made part of this Bill of Sale.

Seller hereby warrants and represents that Seller owns said personal property free and clear of all liens and encumbrances, that Seller has good right to sell the same and Seller will warrant and defend the same against the lawful claims and demands of all persons, except:

27 28 29 30 31 32 33

Note: The above warranty applies only to title, if there are any other warranties or representations as to other characteristics of the personal property, a separate agreement must be drafted.

34

This Bill of Sale was drafted on

[date] by [Licensee and firm] .

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(X)

37 38

43 Phone:

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Print Name Here:

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Print Name Here:

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(X)

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(X)

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(X)

Fax:

Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipform.com Lines 27-43 state that the seller is transferring the seller’s interest in the items of personal property free and clear of all liens and encumbrances, unless listed on lines 29-31. A note on lines 32 and 33 reminds the parties that the warranty applies to title and if there are other warranties or representations as to other characteristics of the personal property, a separate agreement must be drafted. For example, if the parties agree that the seller will transfer interest in certain items, such as a boat, the seller needs to provide the boat’s title documents to the buyer so the buyer can demonstrate ownership. The WB-25 Bill of Sale may not be the only document involved in the transfer of personal property from a seller to a buyer.

This form does not have the usual note at the bottom of the page telling the parties to attach it to the offer or other related document. When a seller presents a WB-25 Bill of Sale to a buyer, the seller is giving the buyer an interest in the personal property. The seller usually presents the document at closing. The drafter of the bill of sale places the date, name, and firm name on lines 34 and 35. Please note that there are signature lines for only the seller on lines 36-42. The seller is transferring an interest in the stated personal property and the buyer and seller agreed to the transfer terms when negotiating the transaction. The buyer does not need to sign this form.

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Contract Law Wis. Stats. 706 REEB 15, 16, 24.06, 24.085

Chapter Overview

To create a successful real estate transaction, a licensee must be able to draft an enforceable real estate contract. This chapter discusses the basic rules of contract drafting and interpretation.

Important Terminology approved form bilateral contract breach capacity consideration contingency contract good consideration legal purpose meeting of the minds parol evidence rule unenforceable unilateral contract valid valuable consideration void voidable

RULES OF CONTRACT CONSTRUCTION

R

eal estate licensees have a limited right to practice law. This limited capacity to practice law is a privilege and a responsibility. Licensees must be vigilant in drafting detail-oriented contracts. A contract is a legally enforceable promise or set of promises that parties must perform. Failure to perform is a breach of contract. If a party breaches the contract, the nonbreaching party has legal remedies that the party can use to address damages due to the breach. If parties have an enforceable contract, a court can force parties to comply with the terms of the contract by ordering specific performance. A contract creates a law between two parties. Contract law is fact specific and courts refer to case law when interpreting contract disputes. Because case law is constantly evolving, the only answer a licensee can give to a party seeking legal advice is “See your attorney.”

Courts use the rules of contract construction when interpreting contracts in the event of a dispute between the parties. 1. Courts give greater weight to added rather than pre-printed terms. When a contract is drafted on an approved form, a court gives greater weight to provisions that are typed or handwritten if there is a conflict with the pre-printed provisions. 2. Courts give greater weight to specific language rather than general language. If there is a conflict between a specific and a general provision, the specific provision will control. For example, a court would give greater weight to a statement in an offer that specifically mentions a toilet in a downstairs bathroom than a general statement about plumbing. 3.  Courts construe ambiguous contract terms against the drafter. For example, a court would construe ambiguities in a contract drafted by a buyer’s agent against the buyer and ambiguities in a contract drafted by a listing agent against the seller.

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4. C  ourts recognize the parol evidence rule, which means that courts will not evaluate evidence of prior written or oral information that contradicts the terms of the written contract. Using the parol evidence rule helps courts achieve a degree of certainty in a transaction and prevents fraudulent and perjured claims. For example, a buyer and seller verbally agree that the seller will leave behind the washer and the stove. The buyer does not include this in the offer that the seller accepted. The seller takes the property after closing. If a buyer initiated a claim for the appliances citing the parties’ verbal agreement, the court would use the parol evidence rule and not consider the earlier conversation as evidence showing the intent of the parties. There is more than one way to correctly complete a contract. Licensees should follow these guidelines when drafting contracts for parties to a real estate transaction. 1. Define important terminology. For example, if a buyer includes “seller shall clean the basement” in an offer to purchase, the buyer should define “clean” to avoid any ambiguity. 2. Complete all blanks and spaces or mark with “N/A.” 3. Check the boxes for all optional provisions, such as the financing or inspection contingency, which a party wants to include as part of the contract. 4. Strike language that parties do not want to include in the contract. Stricken language must remain legible.

REEB 15 - OBLIGATION TO FURNISH COPIES AND MAINTAIN RECORDS

After a party signs and completes a form, a licensee must provide the party with an exact and complete copy of the form. If the transaction involves a property manager acting on behalf of a property owner, the licensee must provide a tenant a complete and exact copy of the lease at the time the tenant signs the lease. Licensees must provide copies of leases to property owners upon the request of the property owner. Firms must keep all documents pertaining to a transaction for at least two years. The two-year retention period is measured from the date of closing or, if the transaction does not close, from the date the agency agreement terminates or expires. Firms can keep transaction documents longer than two years if the firm chooses to retain the documents.

APPROVED FORMS AND LEGAL ADVICE

A licensee must use approved real estate forms when involved in a real estate transaction, whether representing a party or acting as a party. An approved form is defined as a contract or conveyance form that is approved by the DSPS. All WB forms, such as the listing contract, buyer agency agreement, and offers to purchase are state-approved forms. To “use a form” means to complete an approved form by filling in the blanks or modifying printed provisions on a form for the purpose of accomplishing the intent of a party in a specific real estate transaction. Parties may ask a licensee to conduct a transaction with an unapproved form such as sellerprovided listing contract or an offer to purchase drafted by the buyer. Licensees can negotiate the terms of these contracts but cannot fill in the blanks of the unapproved form. In addition to state-approved forms, licensees may also use forms from another state to help a party purchase or lease real estate in another state. A licensee can complete another state’s real estate form as long as the licensee is physically present in Wisconsin and all negotiations take place in Wisconsin. A person licensed only in Wisconsin cannot show property, attend inspections, or negotiate contract terms in another state. The licensee must also be competent to complete the other state’s form. If a licensee is not familiar with the other state’s form or the other state’s laws regulating real estate practice in that state, the licensee is not competent to complete the form. The licensee should seek assistance from an attorney or licensee who practices in that state. Instead of completing a form from another state, a licensee could attempt to negotiate a referral fee by referring the party to a licensee in the other state. 202

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All licensees may use forms prepared by governmental agencies, such as the Department of Housing and Urban Development or the Veterans Administration, for use in programs administered by those agencies. Licensees can also use property management forms created by a property owner, the supervising broker, or an attorney. In addition to the forms that all licensees can use, an individual holding a valid Wisconsin broker’s license can use the forms created by the Wisconsin State Bar Association. Forms created by the State Bar of Wisconsin do not duplicate the stateapproved forms. State Bar forms include land contracts and deeds but do not include listing contracts or offers to purchase. A licensee may engage in a transaction for which there is not a state-approved form. If there is not an approved form available for the transaction, such as the sale of a cooperative, a licensee may use a form drafted by an attorney or a party to the transaction as long as the name of the drafter appears on the form. A real estate licensee has a limited capacity to practice law. A licensee, acting as an agent, can fill in the blanks of an approved form on behalf of a party to a real estate transaction. Licensees cannot give legal advice or opinions concerning the legal rights or obligations of parties to a transaction. Licensees cannot provide legal advice or opinions on the legal effect of a contract, conveyance, or the state of title to real estate. Lastly, licensees cannot create after-closing escrow agreements or charge a fee for completing an approved form in connection with a transaction. Drafting escrow agreements is beyond the scope of a real estate license. Escrow refers to an arrangement where a party gives documents or property to a disinterested third party to hold until an agreed upon event occurs, at which time the third party disburses the documents or property to the intended recipient. Parties in a real estate transaction may need to use escrow to complete contractual obligations. For example, a seller may have agreed to complete certain repairs before closing. If the seller has not completed the repairs, a buyer may ask for funds to be held in escrow at closing to pay for the repairs. The parties or an attorney can draft the escrow agreement. A list of all the approved forms and Wisconsin State Bar forms available for use is included at the end of this chapter. Only a licensed real estate broker may use State Bar forms. License examinees should be prepared to answer license exam questions on all the state-approved forms covered in the course materials.

VALIDITY OF CONTRACTS According to the statute of frauds, all real estate contracts must be in writing to be enforceable. This includes contracts for the sale, purchase, or exchange of ­ownership or interest in real property and all leases for a period longer than one year. There are additional elements that a contract must contain to create a valid and enforceable contract. 1. Capacity refers to a party’s ability to contract. A contract must be entered into by legally competent parties. To have the capacity to contract, a party must be at least 18 years old and be of sound mind. When a party is of sound mind, the party has the mental capacity to understand the consequences of the party’s actions.

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2. A  meeting of the minds means that there is complete agreement about the purpose and terms of the contract. The contract must have an offer made by one party and be accepted by another. If one of the parties enters into a contract under duress, a meeting of the minds cannot occur. 3. C  onsideration is something of legal value given in exchange for a promise. All contracts must have consideration. In real estate transactions, parties exchange both good and valuable consideration. Valuable consideration is anything exchanged by the contracting parties that has monetary value. For example, the seller promises to transfer property to the buyer in exchange for payment. Good consideration is anything exchanged by contracting parties that does not have monetary value. It does not refer to the adequacy of the consideration. A seller is offering good consideration to a listing firm when the seller agrees to cooperate with a listing firm’s marketing activities. 4. A  legal purpose must be the basis for the contract. For example, a contract for the sale of illegal drugs is not a valid contract.

CONVEYANCE OF REAL PROPERTY

Wisconsin law requires that any transaction by which any interest in land is created, alienated, mortgaged, assigned or may be otherwise affected in law or in equity must be evidenced by a conveyance that: 1. Identifies the parties; 2. Identifies the land; 3. Identifies the interest conveyed, and any material term, condition, reservation, exception, or contingency upon which the interest is to arise, continue or be extinguished, limited or encumbered; 4. Is signed by or on behalf of each of the grantors; 5. Is signed by or on behalf of all parties if a lease or contract to convey; 6. Is signed, or joined in by separate conveyance, by or on behalf of each spouse if the conveyance alienates any interest of a married person in a homestead except conveyances between spouses, but on a purchase money mortgage ­pledging that property as security only the purchaser need sign the mortgage; and 7. Is delivered. If a party wants to authorize another party to sign on a party’s behalf as an agent, the principal party should give permission in writing to the party acting as the agent. For example, if a husband wants his wife to sign a contract on his behalf, the husband can designate the wife as his agent in writing and she could sign the contract on his behalf.

STATUS OF CONTRACTS

A contract can be valid, void, voidable, or unenforceable. A valid contract contains all required essential elements and is binding and enforceable on both parties. A valid contract to convey an interest in real estate will contain all the essential contract elements and the state statutory requirements for conveying real property.

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A void contract has no legal effect. A contract may be void because it is technically defective, illegal, or against public policy. An example of a void contract is one without a party’s signature. The defect of the missing signature prevents a contract from existing. A voidable contract is valid and enforceable but it may be voided by one of the parties. A contract often becomes voidable because one party breaches the contract. If the non-breaching party chooses not to continue with the contract, the non-breaching party can rescind. Rescission is the legal remedy of unmaking a contract and restoring the parties to their original positions before contracting with one another. Parties may have to return payments, documents, and property already exchanged according to contract terms. Only the non-breaching party can rescind a voidable contract. A buyer’s offer to purchase requires the buyer to deposit earnest money within two days of acceptance. The buyer does not provide the earnest money by the deadline. The buyer is in breach, making the contract voidable by the seller. The seller can choose to continue with the contract. If the seller continues to act as if the contract is still valid and enforceable, the seller can lose the right to nullify the contract. A party that enters into a contract under duress has the option of voiding the contract. An unenforceable contract appears valid but, in the case of a dispute between the parties, a court could not enforce the terms of the contract. Unenforceable contracts may be valid if there is no dispute between the parties. Drafting errors can create an unenforceable contract. For example, a party drafting an offer includes an ambiguous contingency such as “the seller shall repair the deck prior to closing.” A contingency protects a party to a contract from having to close unless the condition sought can be obtained. A party can remove a contingency included in a contract for the party’s benefit. When drafting a contingency, a licensee should address: • • • • • •

What is to be completed? Who is supposed to complete the task? How is it to be completed? When is it to be completed? What is the result if it is not completed? Should an escrow be considered?

The following example illustrates the difference between an ambiguous contingency that may make a contract unenforceable and a clearly written contingency. “The seller shall repair the deck prior to closing.” OR “This offer is contingent on seller repairing the deck at seller’s expense no later than seven days prior to closing. The seller shall replace the rotten wood located on the northeast corner of the deck and stain it to match the original portion of the deck. All work shall be completed in a good and workmanlike manner with materials of a quality similar to those already on the property. Seller, before closing, shall provide waivers of contractor liens for all work performed. If seller fails to complete the repairs as ­provided, buyer may terminate this contract, remove the time limit on meeting this con­tingency, or contract with parties of buyer’s choice to complete the work at seller’s expense. Buyer shall notify seller of buyer’s choice of remedies in ­writing within three days after the date set for completion of repairs.”

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WRA CONTRACT DRAFTING TOOLS FOR LICENSEES 1. The Legal Hotline: A toll-free hotline staffed by WRA attorneys to provide legal information for WRA members with legal questions. 2. Legal Updates: A monthly newsletter written by WRA attorneys highlighting legal topics licensees need to know about to practice competently. 3. Legal Hottips: A weekly e-mail to members providing a summary of Legal Hotline questions and answers. 4. Wisconsin Real Estate Clauses: Designed to help agents draft contingencies and includes examples of contingencies drafted by attorneys for licensees to use when preparing contracts. 5. Wisconsin Real Estate Law: Reference manual for real estate licensees and attorneys alike.

CREATION AND TERMINATION OF CONTRACTS Most contracts used in real estate transactions are bilateral and express. A bilateral contract is created when two promises are given, one in exchange for another. An express contract is created with written or spoken words. An offer to purchase, a listing contract, and a buyer agency agreement are examples of bilateral, express contracts. A unilateral contract is created when only one party makes a promise to another. An option to purchase is an example of a unilateral contract binding only the optionor (seller) to perform by selling if the optionee (buyer) chooses to exercise the option. The contract does not bind the optionee to perform. A contract may be terminated in different ways. 1. Performance by the parties. The parties to the contract perform according to the terms of the contract. 2. Mutual termination by the parties. Parties can agree to release one another from the terms of the contract by amending the contract, executing a cancellation agreement, or entering into some other form of termination agreement. 3. Breach by a party. A party breaches a contract by violating a material term or condition of a contract without a legal excuse. The non-breaching or non-defaulting party has certain remedies. If a seller breaches a sales contract, the buyer may: 1. R  escind or cancel the contract; 2. Sue for damages; or 3. Sue for specific performance. If a buyer breaches a sales contract, the seller may: 1. 2. 3. 4.

 escind or cancel the contract; R Sue for damages; Sue for specific performance; or Declare the contract void and retain the earnest money as liquidated damages.

To determine if a party has breached a contract, a party must know when an event was supposed to occur. A contract should specify deadlines and indicate whether time is of the essence to the deadlines. If time is of the essence, a party must perform the contract obligation by the deadline. If time is not of the essence, a court allows a reasonable time for performance. The approved forms have time is of the essence as the default standard for deadlines. If a party wants more flexibility to perform contractual obligations, a party can modify the form and indicate that time is not of the essence for some or all contractual obligations.

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Wisconsin Department of Safety and Professional Services Approved Forms WB-1 Residential Listing Contract – Exclusive Right to Sell WB-2 Farm Listing Contract – Exclusive Right to Sell WB-3 Vacant Land Listing Contract – Exclusive Right to Sell WB-4 Residential Condominium Listing Contract – Exclusive Right to Sell WB-5 Commercial Listing Contract – Exclusive Right to Sell WB-6 Business Listing Contract – Exclusive Right to Sell WB-8 Time Share Listing Contract WB-11 Residential Offer to Purchase WB-12 Farm Offer to Purchase WB-13 Vacant Land Offer to Purchase WB-14 Residential Condominium Offer to Purchase WB-15 Commercial Offer to Purchase WB-16 Offer to Purchase - Business With Real Estate Interest WB-17 Offer to Purchase - Business Without Real Estate Interest WB-24 Option to Purchase WB-25 Bill of Sale WB-26 Timeshare Contract (Sale by Developer) WB-27 Time Share Contract (Resale by Non-Developer) WB-28 Cooperative Agreement WB-35 Simultaneous Exchange Agreement WB-36 Buyer Agency/Tenant Representation Agreement WB-37 Residential Listing Contract - Exclusive Right to Rent WB-40 Amendment to Offer to Purchase WB-41 Notice Relating to Offer to Purchase WB-42 Amendment to Listing Contract WB-44 Counter-Offer WB-45 Cancellation Agreement & Mutual Release WB-46 Multiple Counter-Proposal WB-47 Amendment to Buyer Agency/Tenant Representation Agreement

Wisconsin State Bar Association Forms SB-1 Warranty Deed, Form 1 SB-2 Warranty Deed, Form 2 SB-3 Quit Claim Deed, Form 3 SB-4 Guardian’s Deed SB-5 Personal Representative’s Deed SB-6 Special Warranty Deed SB-7 Trustee’s Deed SB-8 Condominium Deed SB-11 Land Contract SB-14 Condominium Land Contract SB-15 Assignment of Land Contract SB-16 Fixed Rate Note SB-17 Indexed Variable Rate Note SB-21 Mortgage SB-23 Condominium Mortgage SB-28 Partial Release of Mortgage SB-29 Satisfaction of Mortgage SB-30 Assignment of Mortgage SB-32 Guaranty SB-33 Marital Property Statement

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Trust Accounts Wis. Stats. 452.13 REEB 18

Chapter Overview

The typical real estate transaction involves money that needs to be held in a firm’s trust account. This chapter introduces new salespersons to entry-level real estate trust account issues.

Important Terminology

TRUST ACCOUNTS

F

irms are responsible for maintaining trust accounts. Licensees, however, need to have a basic understanding of trust accounts to competently conduct a real estate transaction. If a licensee is interested in becoming a broker or wants more information on trust accounts, additional education and reference materials are available from the WRA.

client funds Interest Bearing Real Estate Trust Account (IBRETA) real estate trust funds

REEB 18 sets forth the rules relating to trust accounts including the bookkeeping responsibilities and record-keeping procedures that a firm must use in the real estate office. The rules regulate interestbearing real estate common trust accounts (IBRETA), the receipt and disbursement of earnest money, office and transaction accounting procedures, property management, and computerized trust account records. Firms will implement office policies and procedures to ensure compliance with the trust account rules. If a firm fails to comply with the rules of REEB 18, the firm is practicing incompetently by failing to safeguard the interest of the firm’s clients and the public interest. If a firm violates REEB 18 trust account rules, the firm is subject to disciplinary action from the Real Estate Examining Board of the Department of Safety and Professional Services.

REEB 18 TRUST ACCOUNTS REEB 18.02(5) defines a real estate trust account as an account for real estate trust funds maintained at a depository institution where withdrawals and transfers may be made without delay, subject to any notice period required by law. Real estate trust accounts include: (a) interest-bearing common trust accounts established for client funds (IBRETA); (b) non-interest bearing real estate trust accounts for non-client funds (rental transactions); and (c) interest-bearing real estate trust accounts for non-client funds (rental transactions). Depository institution is defined in Chapter 452 as a bank, savings bank, savings and loan association or credit union that is licensed to do business in Wisconsin and insured by the Federal Deposit Insurance Corporation or by the National Credit Union Share Insurance Fund.

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All earnest money and other monies paid or received with respect to a licensee’s personal transactions are considered to be real estate trust funds. A licensee must deposit these funds in a real estate trust account regardless of whether the property is listed with the licensee’s company. The offer to purchase states that earnest money deposits must go into the listing firm’s trust account. If the property is not listed, the buyer’s agent deposits the funds in the agent’s account and, if there is not a firm involved, the seller holds the funds (WB-11 lines 370-372). Of course, parties can always agree to an alternate agreement for holding real estate trust funds. If they choose to have someone other than the firm hold the funds, the parties or an attorney should draft an escrow agreement. Licensees do not draft escrow agreements.

TRUST FUNDS: CLIENT FUNDS AND REAL ESTATE FUNDS Client funds are defined by REEB 18.02(1) via the definition of Chapter 452.13(1)(a), as all down payments, earnest money deposits or other money related to a conveyance of real estate that is received by a licensee on behalf of a firm or any other person. Chapter 452.13(1)(a) specifically states that client funds do not include promissory notes. REEB 18.02 defines real estate trust funds to mean any cash, checks, share drafts, drafts, or notes received by a firm or a licensee on behalf of a principal or any other person including any of the following: (a) Payments on land contracts, mortgage payments and any other receipts pertaining to mortgages. (b) Tax and insurance payments held in escrow. (c) Advance fees and finder’s fees, unless non-refundable. (d) Rental application deposits and rents, but only when received while acting as an agent for another. (e) Payments received for subsequent repayment to a third party. (f) Security deposits on rental property, except as provided in s. REEB 18.031 (4). (g) Initial and additional earnest money downpayments and other funds received in connection with offers to purchase, options, and exchanges, even if the broker or salesperson receives the downpayments or funds when negotiating the sale of real estate or a business opportunity which the broker or salesperson owns in whole or in part, or when negotiating the purchase of real estate or a business opportunity for ownership in whole or in part by the broker or salesperson.

IBRETA

Wisconsin requires all real estate firms who hold client funds to establish an IBRETA. The interest from these accounts is calculated by the depository institution and annually remitted (no later than February 1 to the Department of Administration for homeless assistance programs. At no time may the firm or any party remove or use the interest earned on these accounts. The depository institution may deduct a service charge or fee from the interest earned on an IBRETA before remitting the interest to the Department of Administration. If one or both of the parties wants to receive the interest earned from funds related to a real estate transaction, rather than having the interest remitted to the Department of Administration, the parties or an attorney must draft an escrow agreement stating the terms of how the funds should be held and who is the owner of the interest earned from the funds. A firm cannot set up this account or hold the funds for the parties. A third party such as a bank, savings and loan association, credit union, or an attorney can hold the funds for the parties.

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Trust Accounts - 14

DEPOSITING FUNDS

A firm shall deposit all real estate trust funds received by the firm in the firm’s trust account within 48 hours of receipt of the trust funds. If the funds are received on a day prior to a holiday or other day when the depository institution is closed, the firm shall deposit the funds within the next two business days. If a firm receives funds that cannot be deposited by the firm the firm shall, no later than one business day after receipt either forward the funds to the payee, if someone other than the firm, or return the funds to the payer. For example, if a selling firm receives an earnest money check made payable to the listing firm, the selling firm must forward the check directly to the listing firm within one business day of receiving the check. If a licensee receives an item that cannot be deposited, the licensee cannot hold that item. For example, a buyer wants to pledge a painting valued at $15,000 as earnest money. A party can offer the painting as a form of earnest money payment but a firm cannot hold the painting. A firm cannot receive and hold non-depositable items as earnest money. A firm shall not hold an item that is not depositable in a real estate trust account. If a party wants to offer a non-depositable item as earnest money, the parties or an attorney can draft an escrow agreement for the non-depositable item. Other trust account requirements such the number of trust accounts a firm may have, how to open and close trust accounts, naming a trust account, and notifying the DSPS are covered in the broker pre-license education course and other reference materials from the WRA. This information is beyond the scope of pre-license education. A firm will have trust account policies and procedures implementing the trust account requirements.

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FORMS APPENDIX

Forms Appendix Disclosure to Customers Disclosure to Clients WB-1 Residential Listing Contract - Exclusive Right to Sell WB-4 Residential Condominium Listing Contract - Exclusive Right to Sell WB-36 Buyer Agency/Tenant Representation Agreement Real Estate Condition Report Executive Summary Condominium Addendum to Real Estate Condition Report Addendum S Lead Based Paint Disclosures WB-11 Residential Offer to Purchase WB-14 Residential Condominium Offer to Purchase WB-13 Vacant Land Offer to Purchase WB-44 Counter-Offer WB-46 Multiple Counter-Proposal WB-42 Amendment to Listing Contract WB-40 Amendment to Offer to Purchase WB-41 Notice Relating to Offer to Purchase WB-45 Cancellation Agreement & Mutual Release WB-24 Option to Purchase WB-25 Bill of Sale Real Estate Independent Contractor Agreement

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Wisconsin REALTORS Association

WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road, Madison, WI 53704

DISCLOSURE TO CUSTOMERS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53

Effective July 1, 2016 Page 1 of 2

Prior to negotiating on your behalf the brokerage firm, or an agent associated with the firm, must provide you the following disclosure statement: DISCLOSURE TO CUSTOMERS You are a customer of the brokerage firm (hereinafter Firm). The Firm is either an agent of another party in the transaction or a subagent of another firm that is the agent of another party in the transaction. A broker or a salesperson acting on behalf of the Firm may provide brokerage services to you. Whenever the Firm is providing brokerage services to you, the Firm and its brokers and salespersons (hereinafter Agents) owe you, the customer, the following duties: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the information is prohibited by law (see lines 57-66). (e) The duty to protect your confidentiality. Unless the law requires it, the Firm and its Agents will not disclose your confidential information or the confidential information of other parties (see lines 24-40). (f) The duty to safeguard trust funds and other property held by the Firm or its Agents. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals. Please review this information carefully. An Agent of the Firm can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector. This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plainlanguage summary of the duties owed to a customer under section 452.133(1) of the Wisconsin statutes. CONFIDENTIALITY NOTICE TO CUSTOMERS The Firm and its Agents will keep confidential any information given to the Firm or its Agents in confidence, or any information obtained by the Firm and its Agents that a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to disclose particular information. The Firm and its Agents shall continue to keep the information confidential after the Firm is no longer providing brokerage services to you. The following information is required to be disclosed by law: 1. Material Adverse Facts, as defined in Wis. Stat. § 452.01(5g) (see lines 57-66). 2. Any facts known by the Firm or its Agents that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the Firm and its Agents are aware of what specific information you consider confidential, you may list that information below (see lines 36-40). At a later time, you may also provide the Firm or its Agents with other Information you consider to be confidential. CONFIDENTIAL INFORMATION: NON-CONFIDENTIAL INFORMATION (the following information may be disclosed by the Firm and its Agents): (Insert information you authorize to be disclosed, such as financial qualification information.) By signing and dating below I /we acknowledge receipt of a copy of this disclosure and that and are Agent's Name Firm's Name working as: (Owner's/Listing Broker's Agent) (Buyer's/Tenant's Agent or Buyer's Broker's Agent) STRIKE ONE THIS IS A DISCLOSURE AND NOT A CONTRACT. Wisconsin law required the Firm to request the customer's signed acknowledgment that the customer has received a copy of this written disclosure statement if the Firm will provide brokerage services related to real estate primarily intended for use as a residential property containing one to four dwelling units. SIGNING THIS FORM TO ACKNOWLEDGE RECEIPT DOES NOT CREATE ANY CONTRACTUAL OBLIGATIONS BY EITHER THE CUSTOMER OR THE FIRM. See the reverse side for definitions and sex offender registry information. Customer Signature Customer's Name:

Date

Customer Signature Customer's Name:

Date

No representation is made as to the legal validity of any provision or the adequacy of any provision in any specific transaction. Copyright © 2016 by Wisconsin REALTORS ® Association Drafted by Attorney Debra Peterson Conrad Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Phone: (608)241-2047 Fax: Jennifer Lindsley Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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54 NOTICE ABOUT SEX OFFENDER REGISTRY 55 You may obtain information about the sex offender registry and persons registered with the registry by contacting the 56 Wisconsin Department of Corrections on the Internet at http://www.doc.wi.gov or by telephone at 608-240-5830. 57 58 59 60 61 62 63 64 65 66

DEFINITION OF MATERIAL ADVERSE FACTS A "Material Adverse Fact" is defined in Wis. Stat. § 452.01(5g) as an Adverse Fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. An "Adverse Fact" is defined in Wis. Stat. § 452.01(1e) as a condition or occurrence that a competent licensee generally recognizes will significantly and adversely affect the value of the property, significantly reduce the structural integrity of improvements to real estate, or present a significant health risk to occupants of the property; or information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction.

215 Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

forms appendix

REAL ESTATE SALES

Wisconsin REALTORS Association WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road, Madison, WI 53704

Effective July 1, 2016 Page 1 of 2

DISCLOSURE TO CLIENTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

UNDER WISCONSIN LAW, A BROKERAGE FIRM (HEREINAFTER FIRM) AND ITS BROKERS AND SALESPERSONS (HEREINAFTER AGENTS) OWE CERTAIN DUTIES TO ALL PARTIES TO A TRANSACTION: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the information is prohibited by law (see lines 28-37). (e) The duty to protect your confidentiality. Unless the law requires it, the Firm and its Agents will not disclose your confidential information or the confidential information of other parties (see lines 78-96). (f) The duty to safeguard trust funds and other property held by the Firm or its Agents. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals. BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A FIRM, YOU ARE THE FIRM'S CLIENT. A FIRM AND ITS AGENTS OWE ADDITIONAL DUTIES TO YOU AS A CLIENT OF THE FIRM. (a) The Firm or one of its Agents will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the Firm from this duty. (b) The Firm or one of its Agents must provide you with all material facts affecting the transaction, not just Adverse Facts. (c) The Firm and its Agents will fulfill the Firm's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement. (d) The Firm and its Agents will negotiate for you, unless you release them from this duty. (e) The Firm and its Agents will not place their interests ahead of your interests. The Firm and its Agents will not, unless required by law, give information or advice to other parties who are not the Firm's clients, if giving the information or advice is contrary to your interests. If you become involved in a transaction in which another party is also the Firm's client (a "multiple representation relationship"), different duties may apply. DEFINITION OF MATERIAL ADVERSE FACTS A "Material Adverse Fact" is defined in Wis. Stat. § 452.01(5g) as an Adverse Fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. An "Adverse Fact" is defined in Wis. Stat. § 452.01(1e) as a condition or occurrence that a competent licensee generally recognizes will significantly and adversely affect the value of the property, significantly reduce the structural integrity of improvements to real estate, or present a significant health risk to occupants of the property; or information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction. MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a party in the same transaction. If you and the Firm's other clients in the transaction consent, the Firm may provide services through designated agency, which is one type of multiple representation relationship. Designated agency means that different Agents with the Firm will negotiate on behalf of you and the other client or clients in the transaction, and the Firm's duties to you as a client will remain the same. Each Agent will provide information, opinions, and advice to the client for whom the Agent is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the Firm's other clients. An Agent will not reveal any of your confidential information to another party unless required to do so by law. If a designated agency relationship is not authorized by you or other clients in the transaction, you may still authorize or reject a different type of multiple representation relationship in which the Firm may provide brokerage services to more than one client in a transaction but neither the Firm nor any of its Agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same Agent may represent more than one client in a transaction. If you do not consent to a multiple representation relationship the Firm will not be allowed to provide brokerage services to more than one client in the transaction.

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Phone: (608)241-2047 Fax: Jennifer Lindsley Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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CHECK ONLY ONE OF THE THREE BELOW:

55 56 57

The same firm may represent me and the other party as long as the same agent is not representing us both (multiple representation relationship with designated agency).

58 59 60

The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different Agents are involved (multiple representation relationship without designated agency).

61 62

The same firm cannot represent both me and the other party in the same transaction (I/we reject multiple representation relationships).

63 64 65 66 67

NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.

68 69 70 71 72

SUBAGENCY Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.

73 74 75 76 77

PLEASE REVIEW THIS INFORMATION CAREFULLY. An Agent can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector. This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language summary of the duties owed to you under section 452.133(2) of the Wisconsin statutes.

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

CONFIDENTIALITY NOTICE TO CLIENTS The Firm and its Agents will keep confidential any information given to the Firm or its Agents in confidence, or any information obtained by the Firm and its Agents that they know a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to disclose particular information. The Firm and its Agents shall continue to keep the information confidential after the Firm is no longer providing brokerage services to you. The following information is required to be disclosed by law: 1. Material Adverse Facts, as defined in Wis. Stat. § 452.01(5g) (see lines 28-37). 2. Any facts known by the Firm or its Agents that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the Firm and its Agents are aware of what specific information you consider confidential, you may list that information below (see lines 90-96). At a later time, you may also provide the Firm or its Agents with other Information you consider to be confidential. CONFIDENTIAL INFORMATION:

NON-CONFIDENTIAL INFORMATION (the following information may be disclosed by the Firm and its Agents):

(Insert information you authorize to be disclosed, such as financial qualification information.)

97 If Client's agency agreement is for brokerage services related to real estate primarily intended for use as a 98 residential property containing one to four dwelling units, Wisconsin law requires the Firm to request the 99 Client's signed acknowledgment that the Client has received a copy of this written disclosure statement. 100 Name of Firm: 101 102 Client's Signature 103 Client's Name:

Date

Client's Signature

Date

Client's Name:

No representation is made as to the legality, appropriateness or adequacy of any provision in a specific transaction. Copyright © 2016 by Wisconsin REALTORS ® Association Drafted by Attorney Debra Peterson Conrad Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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Approved by the Wisconsin Real Estate Examining Board 7-1-16 (Mandatory Use Date)

Wisconsin REALTORS Association Page 1 of 6, WB-1

WB-1 RESIDENTIAL LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: PROPERTY DESCRIPTION: Street address is: in the of , County of , Wisconsin. Insert additional description, if any, at lines 303-308 or attach as an addendum per lines 309-310. INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, and the following items:

. NOT INCLUDED IN LIST PRICE:

.

CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the lessor. (See lines 181-194). LIST PRICE: Dollars ($ ). MARKETING Seller authorizes and the Firm and its agents agree to use reasonable efforts to market the Property. Seller agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term of this Listing. The marketing may include: . The Firm and its agents may advertise the following special financing and incentives offered by Seller: . Seller has a duty to cooperate with the marketing efforts of the Firm and its agents. See lines 246-252 regarding the Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. Seller agrees that the Firm and its agents may market other properties during the term of this Listing. COMMISSION The Firm's commission shall be . EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: 1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property; 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the list price and on substantially the same terms set forth in this Listing and the current WB-11 Residential Offer to Purchase, even if Seller does not accept the buyer's offer. A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer’s obligations under the written offer. The Firm’s commission shall be earned if, during the term of the Listing, one seller of the Property sells, conveys, exchanges or options, as described above, an interest in all or any part of the Property to another owner, except by divorce judgment. DUE AND PAYABLE: Once earned, the Firm’s commission is due and payable in full at the earlier of closing or the date set for closing, even if the transaction does not close, unless otherwise agreed in writing. CALCULATION: A percentage commission shall be calculated based on the following, if earned above: • Under 1) or 2) the total consideration between the parties in the transaction. • Under 3) or 4) the list price if the entire Property is involved. • Under 3) if the exchange involves less than the entire Property or under 4) if the effective change in ownership or control involves less than the entire Property, the fair market value of the portion of the Property exchanged or for which there was an effective change in ownership or control. • Under 5) the total offered purchase price. NOTE: If a commission is earned for a portion of the Property it does not terminate the Listing as to any remaining Property. COMPENSATION TO OTHERS The Firm offers the following commission to cooperating firms: . (Exceptions if any): . BUYER FINANCIAL CAPABILITY The Firm and its agents are not responsible under Wisconsin statutes or regulations to qualify a buyer’s financial capability. If Seller wishes to confirm a buyer’s financial capability, Seller may negotiate inclusion of a contingency for financing, proof of funds, qualification from a lender, sale of buyer’s property, or other confirmation in any offer to purchase or contract.

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

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FORMS APPENDIX

Page 2 of 6, WB-1

58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

DISPUTE RESOLUTION The parties understand that if there is a dispute about this Listing or an alleged breach, and the parties cannot resolve the dispute by mutual agreement, the parties may consider judicial resolution in court or may consider alternative dispute resolution. Alternative dispute resolution may include mediation and binding arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended that the parties add such in Additional Provisions or in an Addendum. FAIR HOUSING Seller and the Firm and its agents agree that they will not discriminate against any prospective buyer on account of race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, family status, status as a victim of domestic abuse, sexual assault, or stalking, or in any other unlawful manner. DISCLOSURE TO CLIENTS Under Wisconsin law, a brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe certain duties to all parties to a transaction: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the information is prohibited by law. (See lines 195-198.) (e) The duty to protect your confidentiality. Unless the law requires it, the firm and its agents will not disclose your confidential information or the confidential information of other parties. (See lines 135-150.) (f) The duty to safeguard trust funds and other property the firm or its agents holds. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

81 BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A FIRM, YOU ARE THE FIRM'S CLIENT. 82 A FIRM OWES ADDITIONAL DUTIES TO YOU AS A CLIENT OF THE FIRM: 83 (a) The firm or one of its agents will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the firm from this duty. 84 85 (b) The firm or one of its agents must provide you with all material facts affecting the transaction, not just Adverse Facts. 86 87 (c) The firm and its agents will fulfill the firm’s obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement. 88 89 (d) The firm and its agents will negotiate for you, unless you release them from this duty. 90 (e) The firm and its agents will not place their interests ahead of your interests. The firm and its agents will not, unless required by law, give information or advice to other parties who are not the firm’s clients, if giving the information or 91 advice is contrary to your interests. 92 93 If you become involved in a transaction in which another party is also the firm’s client (a "multiple representation 94 relationship"), different duties may apply. 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111

MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a party in the same transaction. If you and the firm’s other clients in the transaction consent, the firm may provide services through designated agency, which is one type of multiple representation relationship. Designated agency means that different agents with the firm will negotiate on behalf of you and the other client or clients in the transaction, and the firm’s duties to you as a client will remain the same. Each agent will provide information, opinions, and advice to the client for whom the agent is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the firm’s other clients. An agent will not reveal any of your confidential information to another party unless required to do so by law. If a designated agency relationship is not authorized by you or other clients in the transaction you may still authorize or reject a different type of multiple representation relationship in which the firm may provide brokerage services to more than one client in a transaction but neither the firm nor any of its agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same agent may represent more than one client in a transaction. If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.

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Page 3 of 6, WB-1

Property Address:

112

CHECK ONLY ONE OF THE THREE BELOW:

113 114

The same firm may represent me and the other party as long as the same agent is not representing us both (multiple representation relationship with designated agency).

115 116 117

The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved (multiple representation relationship without designated agency).

118 119

The same firm cannot represent both me and the other party in the same transaction (I reject multiple representation relationships).

120 121 122 123 124

NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.

125 126 127 128 129

SUBAGENCY Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.

130 PLEASE REVIEW THIS INFORMATION CAREFULLY. An agent can answer your questions about brokerage 131 services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax 132 advisor, or home inspector. 133 This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language 134 summary of the duties owed to you under section 452.133 (2) of the Wisconsin statutes. 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150

CONFIDENTIALITY NOTICE TO CLIENTS: The Firm and its agents will keep confidential any information given to the Firm or its agents in confidence, or any information obtained by the Firm and its agents that a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to disclose particular information. The Firm and its agents shall continue to keep the information confidential after the Firm is no longer providing brokerage services to you. The following information is required to be disclosed by law: 1) Material Adverse Facts, as defined in section 452.01 (5g) of the Wisconsin statutes (see lines 195-198). 2) Any facts known by the Firm and its agents that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the Firm and its agents are aware of what specific information you consider confidential, you may list that information below (see lines 147-148). At a later time, you may also provide the Firm with other information you consider to be confidential. CONFIDENTIAL INFORMATION: . NON-CONFIDENTIAL INFORMATION (The following may be disclosed by the Firm and its agents): .

151 152 153 154 155 156 157 158

COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION The parties agree that the Firm and its agents will work and cooperate with other firms and agents in marketing the Property, including firms acting as subagents (other firms engaged by the Firm - see lines 125-129) and firms representing buyers. Cooperation includes providing access to the Property for showing purposes and presenting offers and other proposals from these firms to Seller. Note any firms with whom the Firm shall not cooperate, any firms or agents or buyers who shall not be allowed to attend showings, and the specific terms of offers which should not be submitted to Seller: . CAUTION: Limiting the Firm's cooperation with other firms may reduce the marketability of the Property.

159 160 161 162 163 164 165 166

EXCLUSIONS All persons who may acquire an interest in the Property who are Protected Buyers under a prior listing contract are excluded from this Listing to the extent of the prior firm's legal rights, unless otherwise agreed to in writing. Within seven days of the date of this Listing, Seller agrees to deliver to the Firm a written list of all such Protected Buyers. NOTE: If Seller fails to timely deliver this list to the Firm, Seller may be liable to the Firm for damages and costs. The following other buyers are excluded from this Listing until [INSERT DATE]. These other buyers are no longer excluded from this Listing after the specified date unless, on or before the specified date, Seller has either accepted a written offer from the buyer or sold the Property to the buyer. Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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167 DEFINITIONS 168 ADVERSE FACT: An "Adverse Fact" means any of the following: 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 170 1) Significantly and adversely affecting the value of the Property; 171 2) Significantly reducing the structural integrity of improvements to real estate; or 172 3) Presenting a significant health risk to occupants of the Property. 173 (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her 174 obligations under a contract or agreement made concerning the transaction. 175 DEADLINES – DAYS: Deadlines expressed as a number of "days" from an event are calculated by excluding the day the 176 event occurred and by counting subsequent calendar days. 177 DEFECT: “Defect” means a condition that would have a significant adverse effect on the value of the Property; that 178 would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or 179 replaced would significantly shorten or adversely affect the expected normal life of the premises. 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224

FIRM: “Firm” means a licensed sole proprietor broker or a licensed broker business entity. FIXTURES: A "Fixture" is an item of property which is physically attached to or so closely associated with land or buildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises, and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters, water softeners and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas and satellite dishes; audio/visual wall mounting brackets (but not the audio/visual equipment); garage door openers and remote controls; installed security systems; central vacuum systems and accessories; in-ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; in-ground pet containment systems (but not the collars); storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water treatment systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 12-14 and in the offer to purchase. MATERIAL ADVERSE FACT: A "Material Adverse Fact" means an Adverse Fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shall mean any person joined in interest with buyer, or otherwise acting on behalf of buyer, including but not limited to buyer's immediate family, agents, employees, directors, managers, members, officers, owners, partners, incorporators and organizers, as well as any and all corporations, partnerships, limited liability companies, trusts or other entities created or controlled by, affiliated with or owned by buyer, in whole or in part whether created before or after expiration of this Listing. PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5. PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the term of this Listing: 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential terms upon which the buyer might acquire an interest in the Property; or 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the individuals in the Listing; or, b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm or agents with whom the buyer negotiated and the date(s) of any individual showings or other negotiations. A Protected Buyer also includes any Person Acting on Behalf of Buyer joined in interest with or otherwise acting on behalf of a Protected Buyer, who acquires an interest in the Property during the extension of listing period as noted on lines 220-224. EXTENSION OF LISTING The Listing term is extended for a period of one year as to any Protected Buyer. Upon receipt of a written request from Seller or a firm that has listed the Property, the Firm agrees to promptly deliver to Seller a written list of those buyers known by the Firm and its agents to whom the extension period applies. Should this Listing be terminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271). Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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Page 5 of 6, WB-1

225 OCCUPANCY Unless otherwise provided, Seller agrees to give the buyer occupancy of the Property at time of closing 226 and to have the Property in broom swept condition and free of all debris and personal property except for personal 227 property belonging to current tenants, sold to the buyer or left with the buyer's consent. 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279

LEASED PROPERTY If Property is currently leased and lease(s) will extend beyond closing, Seller shall assign Seller's rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations) thereunder to buyer at closing. Seller acknowledges that Seller remains liable under the lease(s) unless released by tenants. CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the lease(s) unless released by tenants. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.doc.wi.gov or by telephone at (608)240-5830. REAL ESTATE CONDITION REPORT Seller agrees to complete the real estate condition report provided by the Firm to the best of Seller's knowledge. Seller agrees to amend the report should Seller learn of any Defect(s) after completion of the report but before acceptance of a buyer's offer to purchase. Seller authorizes the Firm and its agents to distribute the report to all interested parties and agents inquiring about the Property. Seller acknowledges that the Firm and its agents have a duty to disclose all Material Adverse Facts as required by law. SELLER REPRESENTATIONS REGARDING DEFECTS Seller represents to the Firm that as of the date of this Listing, Seller has no notice or knowledge of any Defects affecting the Property other than those noted on the real estate condition report. WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAY BE LIABLE FOR DAMAGES AND COSTS. SELLER COOPERATION WITH MARKETING EFFORTS Seller agrees to cooperate with the Firm in the Firm's marketing efforts and to provide the Firm with all records, documents and other material in Seller's possession or control which are required in connection with the sale. Seller authorizes the Firm and its agents to do those acts reasonably necessary to effect a sale and Seller agrees to cooperate fully with these efforts which may include use of a multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly refer all persons making inquiries concerning the Property to the Firm and notify the Firm in writing of any potential buyers with whom Seller negotiates or who view the Property with Seller during the term of this Listing. OPEN HOUSE AND SHOWING RESPONSIBILITIES Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an "individual showing" or an "open house." Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold the Firm and its agents harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during "individual showings" or "open houses" other than those caused by the negligence or intentional wrongdoing of the Firm or its agents. Seller acknowledges that individual showings and open houses may be conducted by licensees other than agents of the Firm, that appraisers and inspectors may conduct appraisals and inspections without being accompanied by agents of the Firm or other licensees, and that buyers or licensees may be present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in additional provisions at lines 303-308 or in an addendum per lines 309-310. TERMINATION OF LISTING Neither Seller nor the Firm has the legal right to unilaterally terminate this Listing absent a material breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the Firm. Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend the commission amount or shorten the term of this Listing, without the written consent of the agent(s)’ supervising broker. Seller and the Firm agree that any termination of this Listing by either party before the date stated on line 312 shall be effective by the Seller only if stated in writing and delivered to the Firm in accordance with lines 280-302 and effective by the Firm only if stated in writing by the supervising broker and delivered to Seller in accordance with lines 280-302. CAUTION: Early termination of this Listing may be a breach of contract, causing the terminating party to potentially be liable for damages. EARNEST MONEY If the Firm holds trust funds in connection with the transaction, they shall be retained by the Firm in the Firm's trust account. The Firm may refuse to hold earnest money or other trust funds. Should the Firm hold the earnest money, the Firm shall hold and disburse earnest money funds in accordance with Wis. Stat. Ch. 452 and Wis. Admin. Code Ch. REEB 18. If the transaction fails to close and the Seller requests and receives the earnest money as the total liquidated damages, then upon disbursement to Seller, the earnest money shall be paid first to reimburse the Firm for cash advances made by the Firm on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to the Firm as full commission in connection with said purchase transaction and the balance shall belong to Seller. This payment to the Firm shall not terminate this Listing.

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FORMS APPENDIX

Property Address:

280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313

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DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Listing, delivery of documents and written notices to a party shall be effective only when accomplished by one of the methods specified at lines 283-302. (1) Personal Delivery: giving the document or written notice personally to the party, or the party's recipient for delivery if named at line 285 or 286. Seller's recipient for delivery (optional): Firm’s recipient for delivery (optional): (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: ( ) Firm: ( ) (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the party, or to the party's recipient for delivery if named at line 285 or 286, for delivery to the party's delivery address at line 295 or 296. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the party, or to the party's recipient for delivery if named at line 285 or 286, for delivery to the party's delivery address at line 295 or 296. Delivery address for Seller: Delivery address for Firm: (5) E-Mail: electronically transmitting the document or written notice to the party’s e-mail address, if given below at line 301 or 302. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically as required by federal law. E-Mail address for Seller: E-Mail address for Firm: ADDITIONAL PROVISIONS

ADDENDA The attached addenda TERM OF THE CONTRACT From the to the earlier of midnight of the conveyance of the entire Property.

is/are made part of this Listing. , , up , or the ,

day of day of

314 BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS LISTING CONTRACT AND 315 THAT HE/SHE HAS READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS 316 INCORPORATED INTO THE LISTING. 317 (x) 318 Seller's Signature

Print Name Here

Date

319 (x) 320 Seller's Signature

Print Name Here

Date

321 (x) 322 Seller's Signature

Print Name Here

Date

323 (x) 324 Seller's Signature

Print Name Here

Date

325 Seller Entity Name (if any): 326

Print Name Here

327 (x) 328 Authorized Signature 329 (x) 330 Agent for Firm

Date

Print Name & Title Here

Print Name Here

Firm Name

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Approved by the Wisconsin Department of Regulation and Licensing 10-1-08 (Optional Use Date) 1-1-09 (Mandatory Use Date)

Page 1 of 6, WB-4

WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

SELLER GIVES BROKER THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: PROPERTY DESCRIPTION: The street address of the Unit is: in the of , County of , Wisconsin, particularly described as Unit: (Building ) of Condominium; Seller's interest in the common elements appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set forth in the declaration and condominium plat (and all amendments to them) creating the Condominium, which altogether constitute the Property. Insert additional description, if any, at lines 309-322 or attach as an addendum per lines 323-328. LIST PRICE: Dollars ($ ). INCLUDED IN LIST PRICE: Seller is including in the list price the Property, Seller's interests in any common surplus and reserves of the Condominium allocated to the Property, Fixtures not excluded on lines 16-19, and the following items: . NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the lessor. (See lines 266-277): . STORAGE UNIT: A storage unit (is) (is not) STRIKE ONE included in the List Price; Unit number: . LIMITED COMMON ELEMENTS: The limited common elements assigned to the Unit include: . See condominium declaration for complete list. PARKING: The parking for the Property is . The parking fee is $ . ASSOCIATION FEE: The association fee for the Property is $ per . RIGHT OF FIRST REFUSAL: The condominium association (does) (does not) STRIKE ONE have a right of first refusal on the Property. MARKETING: Seller authorizes and Broker agrees to use reasonable efforts to procure a buyer for the Property. Seller agrees that Broker may market Seller's personal property identified on lines 13-14 during the term of this Listing. Broker's marketing may include: . Broker may advertise the following special financing and incentives offered by Seller: . Seller has a duty to cooperate with Broker's marketing efforts. See lines 88-106 regarding Broker's role as marketing agent and Seller's duty to notify Broker of any potential buyer known to Seller. Seller agrees that Broker may market other properties during the term of this Listing. OCCUPANCY: Unless otherwise provided, Seller agrees to give buyer occupancy of the Unit and any limited common elements at time of closing and to have the Unit in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, sold to buyer or left with buyer's consent. COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION: The parties agree that Broker will work and cooperate with other brokers in marketing the Property, including brokers from other firms acting as subagents (agents from other companies engaged by Broker - See lines 194-197) and brokers representing buyers. Cooperation includes providing access to the Property for showing purposes and presenting offers and other proposals from these brokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not be allowed to attend showings, and the specific terms of offers which should not be submitted to Seller: . CAUTION: Limiting Broker's cooperation with other brokers may reduce the marketability of the Property. EXCLUSIONS: All persons who may acquire an interest in the Property as a Protected Buyer under a prior listing contract are excluded from this Listing to the extent of the prior broker's legal rights, unless otherwise agreed to in writing. Within seven days of the date of this Listing, Seller agrees to deliver to Broker a written list of all such INSERT DATE : prospective buyers. The following other buyers are excluded from this Listing until . These other buyers are no longer excluded from this Listing after the specified date unless, on or before the specified date, Seller has either accepted an offer from the buyer or sold the Property to the buyer. COMPENSATION TO OTHERS: Broker offers the following commission to cooperating brokers: . . (Exceptions if any): COMMISSION: Broker's commission shall be .

Phone:

224

Fax:

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56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121

Seller shall pay Broker's commission, which shall be earned, if, during the term of this Listing: 1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property; 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or 5) A buyer is procured for the Property by Broker, by Seller, or by any other person, at no less than the price and on substantially the same terms set forth in this Listing and in the standard provisions of the current WB-14 RESIDENTIAL CONDOMINIUM OFFER TO PURCHASE, even if Seller does not accept this buyer's offer. (See lines 282-285 regarding procurement.) A percentage commission, if applicable, shall be calculated based on the purchase price if commission is earned under 1) or 2) above, or calculated based on the list price under 3), 4) or 5). A percentage commission shall be calculated on the fair market value of the Property exchanged under 3) if the exchange involves less than the entire Property or on the fair market value of the Property to which an effective change in ownership or control takes place, under 4) if the transaction involves less than the entire Property. Once earned, Broker's commission is due and payable in full at the earlier of closing or the date set for closing, unless otherwise agreed in writing. Broker's commission shall be earned if, during the term of the Listing, one owner of the Property sells, conveys, exchanges or options an interest in all or any part of the Property to another owner, except by divorce judgment. NOTE: A sale, option, exchange or procurement of a buyer for a portion of the Property does not terminate the Listing as to any remaining Property. EXTENSION OF LISTING: The Listing term is extended for a period of one year as to any Protected Buyer. Upon receipt of a written request from Seller or a broker who has listed the Property, Broker agrees to promptly deliver to Seller a written list of those buyers known by Broker to whom the extension period applies. Should this Listing be terminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on the same terms, for one year after the Listing is terminated. TERMINATION OF LISTING: Neither Seller nor Broker has the legal right to unilaterally terminate this Listing absent a material breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to enter into a mutual agreement to terminate the Listing, amend the commission amount or shorten the term of this Listing, without the written consent of the agent(s)' supervising broker. Seller and Broker agree that any termination of this Listing by either party before the date stated on line 333 shall be indicated to the other party in writing and shall not be effective until delivered to the other Party in accordance with lines 260-265. CAUTION: Early termination of this Listing may be a breach of contract, causing the terminating party to potentially be liable for damages. SELLER COOPERATION WITH MARKETING EFFORTS: Seller agrees to cooperate with Broker in Broker's marketing efforts and to provide Broker with all records, documents and other material in Seller's possession or control which are required in connection with the sale, including, but not limited to, copies of the condominium association's condominium disclosure materials as described in lines 107-136. The Buyer may also request the following: 1) the condominium association's financial statements for the last two years, 2) the minutes of the last unit owner's meetings, 3) the minutes of condominium board meetings during the 12 months prior to acceptance, 4) information about contemplated or pending condominium special assessments, 5) copies of the association's certificate of insurance, 6) a statement from the association indicating the balance of reserve accounts controlled by the association, 7) a statement from the association of the amount of any unpaid assessments on the unit (per Wis. Stat. § 703.165) and; 8) the declaration and bylaws of the master association, if any, so Seller should be prepared to also provide these items. Seller authorizes Broker to do those acts reasonably necessary to effect a sale and Seller agrees to cooperate fully with these efforts which may include obtaining condominium disclosure materials at Seller's expense (see Wis. Stat. § 703.20(2)), use of a multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly notify Broker in writing of any potential purchasers with whom Seller negotiates during the term of this Listing and shall promptly refer all persons making inquiries concerning the Property to Broker. CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide buyer with complete, current and accurate copies of the condominium disclosure materials required by Wis. Stat. § 703.33. The condominium disclosure materials are required to be delivered to buyer no later than 15 days prior to closing. The condominium disclosure materials include a copy of the following and any amendments to any of these (except as limited for small condominiums per Wis. Stat. § 703.365): a) proposed or existing declaration, bylaws and any rules or regulations, and an index of the contents, b) proposed or existing articles of incorporation of the association, if it is or is to be incorporated, c) proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all or part of the condominium, d) projected annual operating budget for the condominium including reasonable details concerning the estimated monthly payments by the purchaser for assessments and other monthly charges, e) leases to which unit owners or the association will be a party, f) general description of any contemplated expansion of condominium including each stage of expansion and the maximum number of units that can be added to the condominium, g) unit floor plan showing location of common elements and other facilities available to unit owners, Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026

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h) the executive summary. If the condominium was an occupied structure prior to the recording of the condominium declaration, it is a "conversion condominium," and the "condominium disclosure materials" for a conversion condominium with five or more units also include: 1) a declarant's statement based on an independent engineer's or architect's report describing the present condition of structural, mechanical and electrical installations; 2) a statement of the useful life of the items covered in 1), unless a statement that no representations are being made is provided, and 3) a list of notices of uncured code or other municipal violations, including an estimate of the costs of curing the violations. If the disclosure materials are delivered to Buyer and Buyer does not receive all of the disclosure documents, Buyer may, within 5 business days of Buyer's receipt of the disclosure materials, either rescind the Offer or request any missing documents. Seller has 5 business days following receipt of Buyer's request for missing documents to deliver the requested documents. Buyer may rescind the sale within 5 business days of the earlier of Buyer's receipt of requested missing documents or the deadline for Seller's delivery of the documents [Wis. Stat. § 703.33(4)(b)]. LEASED PROPERTY: If Property is currently leased and lease(s) will extend beyond closing, Seller shall assign Seller's rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations) thereunder to buyer at closing. Seller acknowledges that Seller remains liable under the lease(s) unless released by tenant(s). CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the lease(s) unless released by tenants. BROKER DISCLOSURE TO CLIENTS: UNDER WISCONSIN LAW, A BROKER OWES CERTAIN DUTIES TO ALL PARTIES TO A TRANSACTION: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law. (See Lines 278-281) (e) The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential information or the confidential information of other parties. (See Lines 203-221) (f) The duty to safeguard trust funds and other property the broker holds. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals. BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A BROKER, YOU ARE THE BROKER'S CLIENT. A BROKER OWES ADDITIONAL DUTIES TO A CLIENT: (a) The broker will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the broker from this duty. (b) The broker must provide you with all material facts affecting the transaction, not just adverse facts. (c) The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement. (d) The broker will negotiate for you, unless you release the broker from this duty. (e) The broker will not place the broker's interests ahead of your interests. The broker will not, unless required by law, give information or advice to other parties who are not the broker's clients, if giving the information or advice is contrary to your interests. (f) If you become involved in a transaction in which another party is also the broker's client (a "multiple representation relationship"), different duties may apply. MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY: A multiple representation relationship exists if a broker has an agency agreement with more than one client who is a party in the same transaction. In a multiple representation relationship, if all of the broker's clients in the transaction consent, the broker may provide services to the clients through designated agency. Designated agency means that different salespersons employed by the broker will negotiate on behalf of you and the other client or clients in the transaction, and the broker's duties will remain the same. Each salesperson will provide information, opinions, and advice to the client for whom the salesperson is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the broker's other clients. A salesperson will not reveal any of your confidential information to another party unless required to do so by law. If a designated agency relationship is not in effect you may authorize or reject a multiple representation relationship. If you authorize a multiple representation relationship the broker may provide brokerage services to more than one client in a transaction but neither the broker nor any of the broker's salespersons may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. If you do not consent to a multiple representation relationship the broker will not be allowed to provide brokerage services to more than one client in the transaction.

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INITIAL ONLY ONE OF THE THREE LINES BELOW: I consent to designated agency. I consent to multiple representation relationships, but I do not consent to designated agency. I reject multiple representation relationships. NOTE: YOU MAY WITHDRAW YOUR CONSENT TO DESIGNATED AGENCY OR TO MULTIPLE REPRESENTATION RELATIONSHIPS BY WRITTEN NOTICE TO THE BROKER AT ANY TIME. YOUR BROKER IS REQUIRED TO DISCLOSE TO YOU IN YOUR AGENCY AGREEMENT THE COMMISSION OR FEES THAT YOU MAY OWE TO YOUR BROKER. IF YOU HAVE ANY QUESTIONS ABOUT THE COMMISSION OR FEES THAT YOU MAY OWE BASED UPON THE TYPE OF AGENCY RELATIONSHIP YOU SELECT WITH YOUR BROKER YOU SHOULD ASK YOUR BROKER BEFORE SIGNING THE AGENCY AGREEMENT. SUBAGENCY: The broker may, with your authorization in the agency agreement, engage other brokers who assist your broker by providing brokerage services for your benefit. A subagent will not put the subagent's own interests ahead of your interests. A subagent will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests. PLEASE REVIEW THIS INFORMATION CAREFULLY. A broker or salesperson can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector. This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language summary of a broker's duties to you under section 452.133 (2) of the Wisconsin statutes. CONFIDENTIALITY NOTICE TO CLIENTS: Broker will keep confidential any information given to Broker in confidence, or any information obtained by Broker that he or she knows a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize Broker to disclose particular information. Broker shall continue to keep the information confidential after Broker is no longer providing brokerage services to you. The following information is required to be disclosed by law: 1) Material adverse facts, as defined in section 452.01 (5g) of the Wisconsin statutes (lines 278-281). 2) Any facts known by the Broker that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the Broker is aware of what specific information you consider confidential, you may list that information below (see lines 214-217). At a later time, you may also provide the Broker with other information you consider to be confidential. CONFIDENTIAL INFORMATION:

NON-CONFIDENTIAL INFORMATION (The following may be disclosed by Broker):

.

. REAL ESTATE CONDITION REPORT: Wisconsin Administrative Code Chapter RL 24 requires listing brokers to make inquiries of the Seller on the condition of the Property and to request that Seller provide a written response to Broker's inquiry. Seller agrees to complete a real estate condition report to the best of Seller's knowledge. Seller agrees to amend the report should Seller learn of any defect(s) after completion of the report but before acceptance of a buyer's offer to purchase. Seller authorizes Broker to distribute the report to all interested parties and their agents inquiring about the Property and acknowledges that Broker has a duty to disclose all material adverse facts as required by law. Wis. Stat. § 709.03 provides that when the Property is a condominium unit, the property to which the real estate condition report applies is the condominium unit, the common elements of the condominium and any limited common elements that may be used only by the owner of the condominium unit being transferred. Wis. Stat. § 709.02(2) requires that Seller also furnish a condominium addendum to the Real Estate Condition Report and a copy of the executive summary along with the Real Estate Condition Report. Note: Small condominiums may not all be required to have an executive summary per Wis. Stat. § 703.365 (1) (b) and (8). SELLER REPRESENTATIONS REGARDING DEFECTS: Seller represents to Broker that as of the date of this Listing, if a real estate condition report or other form of written response to Broker's inquiry regarding the condition of the Property has been made by the Seller, the Seller has no notice or knowledge of any defects affecting the Property other than those noted on Seller's real estate condition report or written response. WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAY BE LIABLE FOR DAMAGES AND COSTS. OPEN HOUSE AND SHOWING RESPONSIBILITIES: Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an "individual showing" or an "open house." Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold Broker harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during "individual showings" or "open houses" other than those caused by Broker's negligence or intentional wrongdoing. Seller acknowledges that individual showings and open houses may be conducted by licensees other than Broker, that appraisers and inspectors may conduct appraisals and inspections without being accompanied by Broker or other licensees, and that buyers or licensees may be present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in additional provisions at lines 309-322 or in an addendum per lines 323-328. Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026

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Page 5 of 6, WB-4

250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308

DEFINITIONS: ADVERSE FACT: An "adverse fact" means any of the following: (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 1) significantly and adversely affecting the value of the Property; 2) significantly reducing the structural integrity of improvements to real estate; or 3) presenting a significant health risk to occupants of the Property. (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction. DEADLINES - DAYS: Deadlines expressed as a number of "days" from an event are calculated by excluding the day the event occurred and by counting subsequent calendar days. DELIVERY: Delivery of documents or written notices related to this Listing may only be accomplished by: 1) giving the document or written notice personally to the party; 2) depositing the document or written notice postage or fees prepaid or charged to an account in the U.S. Mail or a commercial delivery system, addressed to the party, at the party's address (See lines 339, 345 and 351.); 3) electronically transmitting the document or written notice to the party's fax number (See lines 341, 347 and 353.); or, 4) as otherwise agreed in additional provisions on lines 309-322 or in an addendum to this Listing. FIXTURES: A "fixture" is an item of property which is physically attached to or so closely associated with land or buildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises, and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas, garage door openers and remote controls; installed security systems; central vacuum systems and accessories; in-ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 1619 and in the offer to purchase. MATERIAL ADVERSE FACT: A "material adverse fact" means an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. PROCURE: A buyer is procured when, during the term of the Listing, an enforceable contract of sale is entered into between the Seller and the buyer or when a ready, willing and able buyer submits to the Seller or the Listing Broker a written offer at the price and on substantially the terms specified in this Listing. A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer's obligations under the written offer. (See lines 61-64) PROPERTY: Unless otherwise stated, "Property" means the real estate described at lines 2-9. PROTECTED BUYER: Means a buyer who personally, or through any person acting for such buyer: 1) delivers to Seller or Broker a written offer to purchase, exchange or option on the Property during the term of this Listing; 2) negotiates directly with Seller by discussing with Seller the potential terms upon which buyer might acquire an interest in the Property; or 3) attends an individual showing of the Property or discusses with Broker or cooperating brokers the potential terms upon which buyer might acquire an interest in the Property, but only if Broker delivers the buyer's name to Seller, in writing, no later than three days after the expiration of the Listing. The requirement in 3), to deliver the buyer's name to Seller in writing, may be fulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the individuals in the Listing; or, b) if a buyer has requested that the buyer's identity remain confidential, by delivery of a written notice identifying the broker with whom the buyer negotiated and the date(s) of any showings or other negotiations. FAIR HOUSING: Seller and Broker agree that they will not discriminate against any prospective buyer on account of race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 111.32 (13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, familial status, or in any other unlawful manner. EARNEST MONEY: If Broker holds trust funds in connection with the transaction, they shall be retained by Broker in Broker's trust account. Broker may refuse to hold earnest money or other trust funds. Should Broker hold the earnest money, Seller authorizes Broker to disburse the earnest money as directed in a written earnest money disbursement agreement signed by or on behalf of all parties having an interest in the trust funds. If the transaction fails to close and the earnest money is disbursed to Seller, then upon disbursement to Seller the earnest money shall be paid first to reimburse Broker for cash advances made by Broker on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to Broker as Broker's full commission in connection with said purchase transaction and the balance shall belong to Seller. This payment to Broker shall not terminate this Listing.

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Page 6 of 6, WB-4

309 ADDITIONAL PROVISIONS: 310 311 312 313 314 315 316 317 318 319 320 321 . 322 323 ADDENDA: The attached addenda 324 325 326 327 328 is/are made part of this Listing. 329 NOTICE ABOUT SEX OFFENDER REGISTRY: You may obtain information about the sex offender registry and 330 persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at 331 http://www.widocoffenders.org or by telephone at (608)240-5830. 332

TERM OF THE CONTRACT: From the

333 up to and including midnight of the

day of

,

day of

,

,

.

334 READING/RECEIPT: BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS 335 LISTING CONTRACT AND THAT HE/SHE HAS READ ALL SIX PAGES AS WELL AS ANY ADDENDA AND ANY 336 OTHER DOCUMENTS INCORPORATED INTO THE LISTING. 337 (x) 338 Seller's Signature

Print Name Here:

339 340 Seller's Address

Seller's Phone #

341 342 Seller's Fax #

Seller's E-Mail Address

343 (x) 344 Seller's Signature

Print Name Here:

345 346 Seller's Address

Seller's E-Mail Address

Print Name Here:

Broker/Firm Name

351 352 Broker/Firm Address 353 354 Broker/Firm Fax #

Date Seller's Phone #

347 348 Seller's Fax # 349 (x) 350 Agent for Broker

Date

Date Broker/Firm Phone #

Broker/Firm E-Mail Address

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Approved by the Wisconsin Department of Regulation and Licensing 1-1-08 (Optional Use Date) 7-1-08 (Mandatory Use Date)

Page 1 of 5, WB-36

WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

BROKER THE SOLE AUTHORITY TO ACT FOR BUYER AS A BUYER'S AGENT: Buyer (see lines 154-155) gives Broker the exclusive right to act as Buyer's agent to locate an interest in property and to negotiate the procurement of an interest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyer agrees that during the term of this Agreement, Buyer will not enter into any other agreements to retain any other buyer's agent. NOTE: IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATING AN INTEREST IN PROPERTY, BUYER MAY BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION IF BUYER'S CONTACTS WITH OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEING RECEIVED BY BROKER FROM OWNER OR OWNER'S AGENT. PURCHASE PRICE RANGE: INSERT DATE EXCLUDED PROPERTIES: The following properties are excluded from this Agreement until Note: Identify any specific excluded properties or limitations on the scope of this Agreement including geographic limitations, or limitations on property type included under this Agreement.

COMPENSATION: Broker's compensation shall be: [Check "SUCCESS FEE", "OTHER COMPENSATION", OR BOTH, as applicable] SUCCESS FEE: % of the purchase price or whichever is greater. OTHER COMPENSATION: INSERT THE AMOUNT AND TYPE OF OTHER FEE, E.G. RETAINER FEE, OR HOURLY FEE If this Agreement calls for a success fee, it is agreed that Broker has earned the success fee if, during the term of this Agreement (or any extension of it), Buyer or any person acting on behalf of Buyer acquires an interest in property or enters into an enforceable written contract between owner and Buyer to acquire an interest in property, at any terms and price acceptable to owner and Buyer. Broker's compensation remains due and payable if an enforceable written contract entered into by Buyer per lines 26-29 fails to close. Once earned, Broker's compensation is due and payable at the earlier of closing or the date set for closing, unless otherwise agreed in writing. Broker (may) (may not) accept compensation from owner or owner's agent. (Broker may accept STRIKE ONE compensation from owner or owner's agent if neither is struck.) Broker's compensation from Buyer will be reduced by any amounts received from owner or owner's agent. BROKER'S DUTIES: In consideration for Buyer's agreements, Broker agrees to use professional knowledge and skills, and reasonable efforts, to: 1) locate an interest in property, unless Broker is being retained solely to negotiate the procurement of an interest in a specific property, and 2) negotiate the procurement of an interest in property, as required, by giving advice to Buyer within the scope of Broker's license, facilitating or participating in the discussions of the terms of a potential contract, completing appropriate contractual forms, presenting either party's contractual proposal with an explanation of the proposal's advantages and disadvantages and other efforts including but not limited to the following: unless Broker is retained solely to locate an interest in property. EARNEST MONEY: If Broker holds trust funds in connection with the transaction, they shall be retained by Broker in

Broker's trust account. Broker may refuse to hold earnest money or other trust funds. Should Broker hold the earnest money, Buyer authorizes Broker to disburse the earnest money as directed in a written earnest money disbursement agreement signed by all parties having an interest in the trust funds. If the transaction fails to close and the earnest money is disbursed to Buyer, then upon disbursement to Buyer the earnest money shall be paid first to reimburse Broker for cash advances made by Broker on behalf of Buyer.

NON DISCRIMINATION: Buyer and Broker agree that they will not discriminate based on race, color, sex, sexual orientation as defined in Wisconsin Statutes §111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, familial status or in any other unlawful manner.

Phone:

230

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FORMS APPENDIX

Page 2 of 5, WB-36

52 53 54 55 56 57 58 59 60 61 62 63 64

BROKER DISCLOSURE TO CLIENTS: UNDER WISCONSIN LAW, A BROKER OWES CERTAIN DUTIES TO ALL PARTIES TO A TRANSACTION: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law. (See lines 170-173) (e) The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential information or the confidential information of other parties. (See lines 109-122) (f) The duty to safeguard trust funds and other property the broker holds. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

65 66 67 68 69 70 71 72 73 74 75 76 77

BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A BROKER, YOU ARE THE BROKER'S CLIENT. A BROKER OWES ADDITIONAL DUTIES TO A CLIENT: (a) The broker will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the broker from this duty. (b) The broker must provide you with all material facts affecting the transaction, not just adverse facts. (c) The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement. (d) The broker will negotiate for you, unless you release the broker from this duty. (e) The broker will not place the broker's interests ahead of your interests. The broker will not, unless required by law, give information or advice to other parties who are not the broker's clients, if giving the information or advice is contrary to your interests. (f) If you become involved in a transaction in which another party is also the broker's client (a "multiple representation relationship"), different duties may apply.

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92

MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY: A multiple representation relationship exists if a broker has an agency agreement with more than one client who is a party in the same transaction. In a multiple representation relationship, if all of the broker's clients in the transaction consent, the broker may provide services to the clients through designated agency. Designated agency means that different salespersons employed by the broker will negotiate on behalf of you and the other client or clients in the transaction and the broker's duties will remain the same. Each salesperson will provide information, opinions, and advice to the client for whom the salesperson is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the broker's other clients. A salesperson will not reveal any of your confidential information to another party unless required to do so by law. If a designated agency relationship is not in effect you may authorize or reject a multiple representation relationship. If you authorize a multiple representation relationship the broker may provide brokerage services to more than one client in a transaction but neither the broker nor any of the broker's salespersons may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. If you do not consent to a multiple representation relationship the broker will not be allowed to provide brokerage services to more than one client in the transaction.

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Page 3 of 5, WB-36

93 94 95 96 97 98 99 100

INITIAL ONLY ONE OF THE THREE LINES BELOW: I consent to designated agency. I consent to multiple representation relationships, but I do not consent to designated agency. I reject multiple representation relationships.

NOTE: You may withdraw your consent to designated agency or to multiple representation relationships by written notice to the broker at any time. Your broker is required to disclose to you in your agency agreement the commission or fees that you may owe to your broker. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your broker you should ask your broker before signing the agency agreement.

101 102 103 104 105 106 107 108

SUBAGENCY: The broker may, with your authorization in the agency agreement, engage other brokers who assist your broker by providing brokerage services for your benefit. A subagent will not put the subagent's own interests ahead of your interests. A subagent will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.

109 110 111 112 113 114 115 116 117 118 119 120 121 122

CONFIDENTIALITY NOTICE TO CLIENTS: Broker will keep confidential any information given to Broker in confidence, or any information obtained by Broker that he or she knows a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize Broker to disclose particular information. Broker shall continue to keep the information confidential after Broker is no longer providing brokerage services to you. THE FOLLOWING INFORMATION IS REQUIRED TO BE DISCLOSED BY LAW: 1. Material adverse facts, as defined in section 452.01 (5g) of the Wisconsin statutes (See lines 170-173). 2. Any facts known by the broker that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the broker is aware of what specific information you consider confidential, you may list that information below (See lines 119-120). At a later time, you may also provide the broker with other information you consider to be confidential. CONFIDENTIAL INFORMATION:

123 124 125 126 127 128 129 130

WAIVER OF CONFIDENTIALITY: Buyer may wish to authorize Broker to disclose information which might otherwise be considered confidential. An example of this type of information might be financial qualification information which may be disclosed to strengthen Buyer's offer to purchase/lease proposal in the eyes of prospective sellers/landlords. Broker's authorization to disclose may be indicated at lines 121-122. Unless otherwise provided at lines 119-120, Broker has permission to disclose Buyer's identity to owner, owner's agents and other third parties without prior consent from Buyer. Buyer acknowledges that pursuant to Wisconsin Statute section 706.03(1)(b)(1m) a conveyance, such as an offer to purchase, is not binding if it is signed by a representative properly authorized by Buyer (e.g., with a power of attorney) until such time as Buyer is identified in the conveyance.

PLEASE REVIEW THIS INFORMATION CAREFULLY. A broker or salesperson can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector. This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language summary of a broker's duties to you under section 452.133 (2) of the Wisconsin statutes.

NON-CONFIDENTIAL INFORMATION (The following may be disclosed by Broker):

131 NON-EXCLUSIVE RELATIONSHIP: Buyer acknowledges and agrees that Broker may act for other buyers in connection 132 with the location of properties and may negotiate on behalf of such buyers with the owner or owner's agent. In the event that 133 Broker undertakes to represent and act for other buyers, Broker shall not disclose to Buyer, or any other buyer, any confidential 134 information of any buyer, unless required by law. 135 136 137 138 139 140

COOPERATION: Buyer agrees to cooperate with Broker and to provide Broker accurate copies of all relevant records, documents and other materials in Buyer's possession or control which are required in connection with the purchase, option, exchange or lease of property. Buyer agrees to be reasonably available for showings of properties. Buyer authorizes Broker to do those acts reasonably necessary to fulfill Broker's responsibilities under this Agreement including retaining subagents. Buyer shall promptly notify Broker in writing of the description of any property Buyer locates. Buyer shall also notify Broker of the identity of all persons making inquiries concerning Buyer's objectives stated in this Agreement.

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FORMS APPENDIX

Page 4 of 5, WB-36

141 142 143 144 145

PROPERTY DIMENSIONS: Buyer acknowledges that property dimensions, total square footage and total acreage information provided to Buyer may be approximate due to rounding and may vary due to different formulas which can be used to calculate these figures. Unless otherwise indicated, property dimension figures have not been verified by survey. CAUTION: Buyer should verify any property dimension or total square footage/acreage calculation which is material to Buyer.

146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181

DEFINITIONS: ADVERSE FACT: An "adverse fact" means any of the following: (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 1) Significantly and adversely affecting the value of the property; 2) Significantly reducing the structural integrity of improvements to real estate; or 3) Presenting a significant health risk to occupants of the property. (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction. BUYER: "Buyer", as used in this Agreement, is the party executing this Agreement and seeking to acquire an interest in real estate or a business opportunity by purchase, lease, option, exchange or any other manner. DEADLINES-DAYS: Deadlines expressed as a number of "days" from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. DELIVERY: Delivery of documents or written notices related to this Agreement may only be accomplished by: 1) giving the document or written notice personally to the party; 2) depositing the document or written notice postage or fees prepaid or charged to an account in the U.S. Mail or a commercial delivery system, addressed to the party, at the party's address (See lines 220, 226 and 232); 3) electronically transmitting the document or written notice to the party's fax number (See lines 222, 228 and 234); and 4) as otherwise agreed in additional provisions on lines 182-190 or in an addendum to this Agreement. INTEREST IN PROPERTY: The "interest in property" to be obtained by Buyer includes a purchase, leasehold, option, exchange agreement or any other procured interest in real property unless restricted at lines 11-20, in additional provisions (lines 182-190) or elsewhere in this Agreement. LOCATE AN INTEREST IN PROPERTY: "Locate an interest in property" shall mean, as used in this Agreement, to identify, evaluate according to the standards set by Buyer, and determine the availability of the interest sought by Buyer in a property. MATERIAL ADVERSE FACT: A "material adverse fact" means an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. NEGOTIATE THE PROCUREMENT OF AN INTEREST IN PROPERTY: "Negotiate the procurement of an interest in property" shall mean, as used in this Agreement, to contact the owner of the property or the owner's agent to ascertain the terms and conditions upon which the interest may be obtained and to otherwise assist Buyer in reaching an agreement to procure the interest sought by Buyer in the property as may be specified in this Agreement. PERSON ACTING ON BEHALF OF BUYER: In this Agreement "Person acting on behalf of Buyer" shall mean any person joined in interest with Buyer, or otherwise acting on behalf of Buyer, including but not limited to Buyer's immediate family, agents, servants, employees, as well as any and all corporations, partnerships, limited liability companies or other entities controlled by, affiliated with or owned by Buyer in whole or in part.

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182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216

Page 5 of 5, WB-36

ADDITIONAL PROVISIONS:

ADDENDA: The attached Addenda

is/are made a part of this Agreement. , TERM OF THE AGREEMENT: From the day of , . day of up to and including midnight of the Notwithstanding lines 193-194, Broker and Buyer agree that this Agreement shall/shall not STRIKE ONE end [if neither struck, this Agreement shall end] when Buyer procures an interest in property. TERMINATION OF AGREEMENT: Neither Buyer nor Broker has the legal right to unilaterally terminate this Agreement absent a material breach of contract by the other party. Buyer understands that the parties to this Agreement are Buyer and the Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to terminate this Agreement, amend the compensation terms or shorten the term of this Agreement, without the written consent of the agent(s)' supervising broker. Buyer and Broker agree that any termination of this Agreement by either party before the date stated on line 194 shall be indicated to the other party in writing and shall not be effective until delivered to the other party in accordance with lines 158-163. CAUTION: Early termination of this Agreement may be a breach of contract, causing the terminating party to potentially be liable for damages. EXTENSION OF AGREEMENT TERM: The Agreement term is extended for a period of one year as to any property which during the term of this Agreement was: 1) located or negotiated for by Broker, Broker's agent, Buyer or any person acting on behalf of Buyer, or 2) which was the subject of a written offer to purchase submitted by Buyer or any person acting on behalf of Buyer. If this extension is based on Broker's or Broker's agent's location or negotiation, this extension shall only be effective if a written description of the property is delivered to Buyer no later than three days after expiration of this Agreement. NOTICE ABOUT SEX OFFENDER REGISTRY: You may obtain information about the sex offender registry and persons registered with that registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608)240-5830. READING/RECEIPT: BY SIGNING BELOW, BUYER ACKNOWLEDGES RECEIPT OF A COPY OF THIS AGREEMENT AND THAT HE/SHE HAS READ ALL FIVE PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS INCORPORATED INTO THIS AGREEMENT.

217 Dated this

day of

218 (x) 219 Buyer's Signature

Print Name Here:

220 221 Buyer's Address 222 223 Buyer's Fax #

Buyer's E-Mail Address Print Name Here:

226 227 Buyer's Address 228 229 Buyer's Fax #

232 233 Broker/Firm Address 234 235 Broker/Firm Fax #

Date Buyer's Phone #

Buyer's E-Mail Address Print Name Here:

Broker/Firm Name Broker/Firm Phone # Broker/Firm E-Mail Address

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234

Date Buyer's Phone #

224 (x) 225 Buyer's Signature

230 (x) 231 Agent for Broker

,

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Date

FORMS APPENDIX

WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road Madison, Wisconsin 53704

Wisconsin REALTORS Association

REAL ESTATE CONDITION REPORT

Page 1 of 2

DISCLAIMER A.

THIS CONDITION REPORT CONCERNS THE REAL PROPERTY LOCATED AT (CITY) (VILLAGE) (TOWN) OF (STREET ADDRESS) IN THE , , STATE OF WISCONSIN. THIS REPORT IS A DISCLOSURE OF THE CONDITION OF THAT PROPERTY COUNTY OF IN COMPLIANCE WITH SECTION 709.02 OF THE WISCONSIN STATUTES AS OF (MONTH), (DAY), (YEAR). IT IS NOT A WARRANTY OF ANY KIND BY THE OWNER OR ANY AGENTS REPRESENTING ANY PRINCIPAL IN THIS TRANSACTION AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THAT THE PRINCIPALS MAY WISH TO OBTAIN.

OWNER'S INFORMATION B.1. In this form, "am aware" means to have notice or knowledge. In this form, "defect" means 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 affect the expected normal life of the premises. B.2. The owner discloses the following information with the knowledge that, even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the property. The owner hereby authorizes any agent representing any principal in this transaction to provide a copy of this statement, and to disclose any information in the statement, to any person in connection with any actual or anticipated sale of the property. B.3. The owner represents that to the best of his or her knowledge the responses to the following statements have been accurately noted as "yes," "no," or "not applicable" to the property being sold. If the owner responds to any statement with "yes," the owner shall provide, in the additional information area of this form, an explanation of the reason why the response to the statement is "yes." B.4. If the transfer is of a condominium unit, the property to which this form applies is the condominium unit, the common elements of the condominium and any limited common elements that may be used only by the owner of the condominium unit being transferred.

PROPERTY CONDITION STATEMENTS* Yes C.1. C.2. C.3. C.4. C.5. C.6. C.7. C.8.

C.9. C.9m.

C.10.

C.11. C.12. C.13. C.14. C.15.

C.16. C.17. C.18. C.19.

C.20. C.21.

No

N/A

See Expert's Report

I am aware of defects in the roof. I am aware of defects in the electrical system. I am aware of defects in part of the plumbing system (including the water heater, water softener and swimming pool) that is included in the sale. I am aware of defects in the heating and air conditioning system (including the air filters and humidifiers). I am aware of defects in the well, including unsafe well water. I am aware that this property is served by a joint well. I am aware of defects in the septic system or other sanitary disposal system. I am aware of underground or aboveground fuel storage tanks on or previously located on the property. (If "yes," the owner, by law, may have to register the tanks with the Wisconsin Department of Agriculture, Trade and Consumer Protection at P.O. Box 8911, Madison, Wisconsin, 53708, whether the tanks are in use or not. Regulations of the Wisconsin Department of Agriculture, Trade and Consumer Protection may require the closure or removal of unused tanks.) I am aware of an "LP" tank on the property. (If "yes," specify in the additional information space whether or not the owner of the property either owns or leases the tank.) I am aware that a dam is totally or partially located on the property or that an ownership in a dam that is not located on the property will be transferred with the property because it is owned collectively by members of a homeowners association, lake district, or similar group. (If “yes,” contact the Wisconsin Department of Natural Resources to find out if dam transfer requirements or agency orders apply.) I am aware of defects in the basement or foundation (including cracks, seepage and bulges). Other basement defects might include, but are not limited to, flooding, extreme dampness or wet walls, unsafe concentrations of mold, or defects in drain tiling or sump pumps. I am aware that the property is located in a floodplain, wetland or shoreland zoning area. I am aware of defects in the structure of the property. I am aware of defects in mechanical equipment included in the sale either as fixtures or personal property. I am aware of boundary or lot line disputes, encroachments or encumbrances (including a joint driveway). I am aware of a defect caused by unsafe concentrations of, or unsafe conditions relating to, radon, radium in water supplies, high voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the property, lead in paint, lead in soil, lead in water supplies or plumbing system or other potentially hazardous or toxic substances on the premises. Such defects might also be caused by unsafe levels of mold. NOTE: specific federal lead paint disclosure requirements must be complied with in the sale of most residential properties built before 1978. I am aware of the presence of asbestos or asbestos-containing materials on the premises. I am aware of a defect caused by unsafe concentrations of, unsafe conditions relating to, or the storage of, hazardous or toxic substances on neighboring properties. I am aware of current or previous termite, powder-post beetle or carpenter ant infestations or defects caused by animal or other insect infestations. I am aware of defects in a woodburning stove or fireplace or of defects caused by a fire in a stove or fireplace or elsewhere on the property or a violation of applicable state or local smoke detector laws; NOTE: State law requires operating smoke detectors on all levels of all residential properties, and operating carbon monoxide detectors on all levels of most residential properties (see Wis. Stat. §§ 101.149 & 101.647). I am aware either that remodeling affecting the property's structure or mechanical systems was done or that additions to this property were made during my period of ownership without the required permits. I am aware of federal, state or local regulations requiring repairs, alterations or corrections of an existing condition.

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Phone: (608)241-2047 Fax: Jennifer Lindsley Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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[page 2 of 2] C.22. C.23. C.24. C.24.m C.25. C.26.

C.26.m

C.27.

Yes I have received notice of property tax increases, other than normal annual increases, or am aware of a pending property reassessment. I am aware that remodeling that may increase the property's assessed value was done. I am aware of proposed or pending special assessments. I am aware that the property is located within a special purpose district, such as a drainage district, that has the authority to impose assessments against the real property located within the district. I am aware of the proposed construction of a public project that may affect the use of the property. I am aware of subdivision homeowners' associations, common areas co-owned with others, zoning violations or nonconforming uses, any land division involving the property for which required state or local permits had not been obtained, conservation easements, restrictive covenants, rights-of-way, easements or another use of a part of the property by nonowners, other than recorded utility easements or burial grounds. I am aware that the property is subject to a mitigation plan required under administrative rules of the department of natural resources related to county shoreland zoning ordinances, which obligates the owner of the property to establish or maintain certain measures related to shoreland conditions and which is enforceable by the county. I am aware of other defects affecting the property.

No

N/A

See Expert's Report

ADDITIONAL INFORMATION D.1. D.1.a D.1.b D.1.c D.1.d

D.1.e

D.1.f D.1.g D.2. D.3.

I am aware that a structure on the property is designated as a historic building or that part of the property is in a historic district. I am aware of a pier attached to the property that is not in compliance with state or local pier regulations. See http://dnr.wi.gov/ for information. All or part of the land has been assessed as agricultural land under Wis. Stat. § 70.32(2r) (use-value assessment). The owner has been assessed a use-value assessment conversion charge under Wis. Stat. § 74.485(2). The payment of the use-value assessment conversion charge has been deferred under Wis. Stat. § 74.485(4). Notice: The use value assessment system values agricultural land based on the income that would be generated from its rental for agricultural use rather than its fair market value. When a person converts agricultural land to a non-agricultural use (e.g. residential or commercial development), that person may owe a conversion charge. To obtain more information about the use value law or conversion charge, contact the Wisconsin Department of Revenue's Equalization Section at 608-266-2149 or visit http://www.revenue.wi.gov/faqs/slf/useassmt.html. I am aware that the property is subject to a farmland preservation agreement. Notice: The early termination of a farmland preservation agreement or removal of land from such an agreement can trigger payment of a conversion fee equal to 3 times the class 1 "use value" of the land. Call 608-224-4500 or visit http://datcp.wi.gov/Environment/Working_Lands_Initiative/ for more information. I am aware of the presence of unsafe levels of mold, or roof, basement, window or plumbing leaks, or overflow from sinks, bathtubs or sewers, or other water or moisture intrusions or conditions that might initiate the growth of unsafe levels of mold. I am aware that all, or part, of the property is subject to, enrolled in or in violation of a Farmland Preservation Agreement (see D.1.e.), Forest Crop Law, Managed Forest Law (see disclosure requirement in Wis. Stat. § 710.12), the Conservation Reserve Program or a comparable program. The owner has lived on the property for years. Explanation of "yes" responses. (See B. 3.)

Note: Any sales contract provision requiring the inspection of a residential dumbwaiter or elevator must be performed by a state-licensed elevator inspector. Notice: You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by phone at 608-240-5830.

OWNER'S CERTIFICATION E. The owner certifies that the information in this report is true and correct to the best of the owner's knowledge as of the date on which the owner signs this report. NOTE: Wisconsin Statute §709.035 requires owners who, prior to acceptance, obtain information which would change a response on this report, to submit a new report or an amended report to the prospective buyer. Owner

Date

Owner

Date

Owner

Date

Owner

Date

CERTIFICATION BY PERSON SUPPLYING INFORMATION F. A person other than the owner certifies that he or she has supplied information on which the owner relied for this report and that information is true and correct to the best of that person's knowledge as of the date on which the person signs this report. Person Person

Items

Date

Person

Items

Date

Items

Date

Person

Items

Date

NOTICE REGARDING ADVICE OR INSPECTIONS G. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTIONS, DEFECTS OR WARRANTIES.

BUYER'S ACKNOWLEDGMENT

H.1. THE PROSPECTIVE BUYER ACKNOWLEDGES THAT TECHNICAL KNOWLEDGE SUCH AS THAT ACQUIRED BY PROFESSIONAL INSPECTORS MAY BE REQUIRED TO DETECT CERTAIN DEFECTS SUCH AS THE PRESENCE OF ASBESTOS, BUILDING CODE VIOLATIONS AND FLOODPLAIN STATUS. H.2. I ACKNOWLEDGE RECEIPT OF A COPY OF THIS STATEMENT. Prospective Buyer Date Prospective Buyer Date Prospective Buyer Date Prospective Buyer Date *NOTE: All information appearing in italics in this REAL ESTATE CONDITION REPORT is purely of a supplemental nature and is not required pursuant to Section 709.03 of the Wisconsin Statutes. No representation is made as to the legal validity of any provision or the adequacy of any provision in any specific transaction. Copyright © 2014 by Wisconsin REALTORS® Association Drafted by: Attorney Debra Peterson Conrad Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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Wisconsin REALTORS Association

INSTRUCTIONS FOR COMPLETING THE EXECUTIVE SUMMARY The purpose of the Executive Summary is to highlight essential information about the condominium for prospective buyers. This Executive Summary form utilizes a fill-in-the-blank, checkbox format for easy completion on behalf of a condominium association by a condominium board of directors officer, a property manager or an attorney. CAUTION: REAL ESTATE LICENSEES AND UNIT OWNERS SHOULD NOT COMPLETE THIS FORM! 1. Fill in blanks and check boxes. Each section of the Executive Summary asks a question about a different aspect of condominium living. The topical question is followed by detailed questions that may be answered by checking one or more boxes and filling in the blanks. Provide as much information as possible in a clear and direct manner. -OR2. Refer to the Condominium Documents. Each section of the Executive Summary concludes with ." Fill in the an item that says, " blank lines by indicating exactly where in the condominium disclosure materials the prospective purchaser may read provisions discussing the section topic. For example, the blank lines might be filled in to refer the prospective purchasers to "pages 23-24 of the Declaration and page 36 of the Bylaws." The goal of the Executive Summary is to provide information in clear, plain language or to provide specific references to the condominium documents where the topics are addressed. Doing both - providing concise information about each topic and referring the reader to the pertinent condominium document provisions - is also an option but is not required. Once completed, a copy of the Executive Summary may be distributed to each unit owner. Consult with your attorney if you have any questions concerning the preparation of the Executive Summary. Executive Summary: Legal Requirements. Per Wis. Stat. § 703.33(1m), the declarant (developer) or the association is responsible for preparing the Executive Summary and revising it whenever a change is made in the disclosure materials that necessitates a corresponding revision to the Executive Summary. An Executive Summary must appear in the condominium disclosure materials directly following the index [Wis. Stat. § 703.33(2)], and must be attached as an addendum to the real estate condition report (RECR) that a seller gives to a prospective unit purchaser, generally before the prospect writes an offer to purchase (Wis. Stat. § 709.02). An Executive Summary may not be required as part of the disclosure materials for a "small condominium" (up to 12 units), depending upon the elections made in the declaration [Wis. Stat. § 703.365 (1) & (8)]. Executive Summary: Effective Dates. The use of the Executive Summary in the disclosure materials and as an addendum to the RECR is mandatory for condominiums created on or after May 1, 2005 in transactions scheduled to close on or after May 1, 2005. For condominiums created before May 1, 2005, use of the Executive Summary in the condominium disclosure materials and with the RECR is mandatory in transactions scheduled to close on or after June 1, 2006. Executive Summary: Use Current Disclosure Materials. The Executive Summary should be completed based upon a current set of the condominium disclosure materials, and the seller should make sure that the materials they deliver to a buyer are up-to-date. The seller must provide the buyer with the condominium disclosure materials no later than 15 days before closing. Wis. Stat. § 703.20(2) requires an association to furnish the seller with the required disclosure materials, at the seller's expense, within 10 days of the seller's request. It is recommended that all associations routinely provide this service and that all unit sellers obtain a current copy of the condominium disclosure materials from the association to avoid the problems that may arise if the seller gives the buyer an incomplete or outdated set of documents.

Wisconsin REALTORS Association 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax: Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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EXECUTIVE SUMMARY

Page 1 of 3

This Executive Summary highlights some of the information that prospective condominium buyers are most interested in learning, as well as some of the information that they should consider when contemplating the purchase of a condominium unit. The following sections either briefly summarize pertinent information by answering the questions asked, direct prospective buyers to specific sections of the condominium disclosure materials that discuss each topic in detail (at the icon), or may be completed to both summarize the information and refer to the condominium documents. This summary, however, is not intended to replace the buyer's review of the condominium declaration, bylaws and other condominium disclosure materials nor is it a substitute for a professional review of the condominium documents.

Condominium Name: How is the condominium association managed? What is the name of the condominium association? What is the association's mailing address? By the unit owners (self-managed) By a management agent or How is the association managed? company By the declarant (developer) or the declarant's management company Whom should I contact for more information about the condominium and the association? (management agent/company or other available contact person) What is the address, phone number, fax number, web site & e-mail address for association management or the contact person? For specific information about the management of this association, see What are the parking arrangements at this condominium? Number of parking spaces assigned to each unit: How many Outside? How many Inside? Common element Limited common element Included as part of the unit Separate nonvoting units Depends on individual transaction [check all that apply] Do I have to pay any extra parking fees (include separate maintenance charges, if any)? No Yes, in the amount of $ per Other (specify ): Are parking assignments reserved or designated on the plat or in the condominium documents? No Yes - Where? Are parking spaces assigned to a unit by deed? No Yes Can parking spaces be transferred between unit owners? No Yes What parking is available for visitors? What are the parking restrictions at this condominium? For specific information about parking at this condominium, see May I have any pets at this condominium? No Yes - What kinds of pets are allowed? What are some of the major restrictions and limitations on pets? For specific information about the condominium pet rules, see

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May I rent my condominium unit? No Yes - What are the major limitations and restrictions on unit rentals?

Page 2 of 3

For specific information about renting units at this condominium, see Does this condominium have any special amenities and features? No Yes - What are the major amenities and features? Are unit owners obligated to join or make additional payments for any amenity associated with the condominium, such as an athletic club or golf course? No Yes - What is the cost? $ For specific information about special amenities, see What are my maintenance and repair responsibilities for my unit? A Unit Owner must maintain and repair

For specific information about unit maintenance and repairs, see Who is responsible for maintaining, repairing and replacing the common elements and limited common elements? Common element maintenance, repair and replacement is performed as follows:

Unit owner assessments How are repairs and replacements of the common elements funded? Both Other(specify ): funds Limited common element maintenance, repairs and replacement is performed as follows:

Reserve

Unit owner assessments How are repairs and replacements of the limited common elements funded? Reserve funds Both Other (specify ): For specific information about common element maintenance, repairs and replacements see Does the condominium association maintain reserve funds for the repair and replacement of the common Yes No Is there a Statutory Reserve Account (*see note on page 3*)? Yes No elements? For specific information about this condominium's reserve funds for repairs and replacements, see How are condominium fees paid for on the developer's new units that have not yet been sold to a purchaser? Is the developer's obligation to pay fees for unsold units different than the obligation of new unit purchasers to pay fees on their units? Not applicable (no developer-owned units) No Yes - In what way?

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Are there any special provisions for the payment of assessment fees that apply only during the developer control period? No Yes - Describe these provisions: For specific information about condominium fees during the developer control period, see Has the declarant (developer) reserved the right to expand this condominium in the future? No Yes - How many additional units may be added through expansion? When does the expansion period end? Who will manage the condominium during the expansion period?

units

For specific information about condominium expansion plans, see May I alter my unit or enclose any limited common elements? Describe the rules, restrictions and procedures for altering a unit: Describe the rules, restrictions and procedures for enclosing limited common elements: For specific information about unit alterations and limited common element enclosures, see Can any of the condominium materials be amended in a way that might affect my rights and responsibilities? Yes, Wisconsin law allows the unit owners to amend the condominium declaration, bylaws and other condominium documents if the required votes are obtained. Some of these changes may alter your legal rights and responsibilities with regard to your condominium unit. For specific information about condominium document amendment procedures and requirements, see Other restrictions or features (optional):

This Executive Summary was prepared on by

(insert date) (state name and title or position).

*Note: A "Statutory Reserve Account" is a specific type of reserve account established under Wis. Stat. § 703.163 to be used for the repair and replacement of the common elements in a residential condominium (optional for a small condominium with less than 13 units or a mixed-use condominium with residential and non-residential units). In a new condominium, the developer initially decides whether to have a statutory reserve account, but after the declarant control period ends, the association may opt-in or opt-out of a statutory reserve account with the written consent of a majority of the unit votes. Existing condominiums must establish a statutory reserve account by May 1, 2006 unless the association elects to not establish the account by the written consent of a majority of the unit votes. Condominiums may also have other reserve fund accounts used for the repair and replacement of the common elements that operate apart from §703.165.

This Executive Summary was developed and distributed by the Wisconsin REALTORS® Association (2004). Drafted by: Attorneys Debra Peterson Conrad (WRA), Jonathan B. Levine, and Lisa M. Pardon (Brennan, Steil & Basting, S.C.) Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road Madison, Wisconsin 53704

Page 1 of 2

CONDOMINIUM ADDENDUM TO REAL ESTATE CONDITION REPORT 1 THIS CONDOMINIUM ADDENDUM TO REAL ESTATE CONDITION REPORT (REPORT) IS AN ADDENDUM TO THE REAL ESTATE 2 CONDITION REPORT DATED CONCERNING THE PROPERTY LOCATED AT 3 4 (STREET ADDRESS), IN THE (CITY) (VILLAGE) (TOWN) STRIKE TWO 5 OF , COUNTY OF , STATE OF WISCONSIN. 6 This Report is given in compliance with Wis. Stat. § 709.02(2) and is not a substitute for a professional review of the condominium 7 documents and disclosure materials. 8 9 10 11 12

I. CONDOMINIUM IDENTIFICATION and SELLER CONTACT INFORMATION Name of Condominium: Unit Number: This Condominium was created by the recording of the condominium instruments with the Office of the Register of Deeds on (insert date).

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The contact information for the (Unit Owner) (Unit Owner's agent/listing broker) STRIKE ONE is as follows: Name: Address: Phone Number(s): E-mail address (optional):

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II. CONDOMINIUM ASSOCIATION INFORMATION Name of the Condominium Association: Address of the Condominium Association: This Condominium Association is self-managed has hired or retained management CHECK ONE . Contact Information (Association representative who can address the sale or the condominium in general): Name: Address: Phone Number(s): E-mail address (optional):

27 III. CONDOMINIUM ASSESSMENTS, FEES and CHARGES 28 The Unit Owner is responsible for the following current condominium assessments, fees, special assessments and other charges 29 (itemize) (Optional: attach a copy of the current budget for easy reference.): 30 Have all current charges been paid? Yes No CHECK ONE 31 IV. EXECUTIVE SUMMARY 32 A copy of the Executive Summary is attached unless this is a small condominium electing Wis. Stat. § 703.365(8) disclosure 33 requirements. Check with the Condominium Association to be sure that it is the most current version. 34 The information in this Report is true, correct and current to the best of the Unit Owner's knowledge. 35 Unit Unit 36 Owner Date Owner Print Name Here 37 Print Name Here 38 Buyer acknowledges receipt of a copy of this Report. 39 Buyer 40 Print Name Here

Date

Check

Date

if condominium disclosure materials have been received.

Buyer

Print Name Here

Date

Copyright© 2008 by Wisconsin REALTORS® Association Drafted by: Attorney Debra Peterson Conrad No representation is made as to the legal validity of any provision or the adequacy of any provision in any specific transaction. Wisconsin REALTORS Association 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax: Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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RESIDENTIAL CONDOMINIUM CONCEPTS In general terms, residential Condominiums take what otherwise might have been an apartment, townhouse or house, and permits individual sales of the separate dwelling Units. All of the dwelling Unit owners own the common areas together and collectively pay for the upkeep and other common expenses. A Condominium, however, is not like living in an apartment because the owner is usually responsible for the maintenance and repair of everything within the Unit - the property manager does not take care of it, as would be the case with a tenant. To understand Condominium ownership, an understanding of certain key concepts is needed.

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Declaration: The Declaration is a written document that creates a Condominium from one or more parcels of real estate. In the Declaration, the owner declares his or her property to now be a Condominium. The Declaration divides the property into several smaller parcels: Units, which are individually owned, and the Common Elements, which are owned in common by all of the Unit owners together. The Declaration sets out what percentage of ownership interest in the Common Elements is assigned to each Unit, and the number of votes that the owner of each Unit has in the Association.

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Declarant: The Declarant is the builder or developer who declares his or her property to be a Condominium by recording the Declaration and plat maps. The Declarant may reserve a period of "Declarant Control" that gives the Declarant time to finish construction of the Condominium project and/or to sell the Units. During this period, the Declarant exercises the powers and responsibilities of the Association through its exclusive right to appoint the directors to the Association board. As the Units are sold to purchasers, elections are held at different intervals and the Unit owners (other than the Declarant) elect an increasing number of the directors. Declarant Control lasts up to ten years in expandable Condominiums and up to three years in other Condominiums.

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Unit: A Unit is the part of the Condominium that is privately owned and used by the Unit owner. A Unit owner has exclusive ownership and possession of his or her Unit. The statutes define Unit in terms of cubicles of air, enclosed spaces located on one or more floors, and rooms. A Unit may also include structural parts of a building (walls, wood frame) or a Unit may be a whole building, a building plus the surrounding land, or just land (similar to a lot). Units may also include separate areas that are some distance apart. For example, a Unit may include a dwelling plus a storage area, patio or parking space. The boundaries of each Unit are defined in the Declaration, which may describe the perimeter walls, sometimes known as the "perimetric boundaries," the upper boundaries and the lower boundaries. Generally, everything within these boundaries will be part of the Unit. Therefore, each Unit's boundaries may impact the Unit owner's maintenance responsibilities, ability to make improvements or alterations, and insurance liability.

67 Common Elements: Common Elements means everything else in the Condominium that is not a Unit. In a typical residential 68 Condominium, the Common Elements may include the land, the exterior and common areas of buildings (entranceway, halls, 69 elevator, meeting room, etc.), landscaping, roads, any outside parking areas, outdoor lighting, any recreational facilities (swimming 70 pool, tennis courts, clubhouse, etc.) and all other common areas and amenities. 71 72 73 74 75

Limited Common Elements: The Limited Common Elements are Common Elements that are identified in the Declaration or plat as reserved for the exclusive use of less than all of the Unit owners. Typically, a Limited Common Element will be reserved for the use of just one Unit. Basically, you don't own it individually, but you are the only one who may use it. This exclusive use, however, may be subject to restrictions stated in the Declaration, Bylaws or Condominium rules and regulations. Limited Common Elements may include features like a storage area, patio, balcony, garage parking space, or a boat slip.

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Percentage Interests: Every Unit owner shares in the ownership of the Common Elements with the other owners. Each Unit is allotted a portion of this ownership interest called the Percentage Interests. The Percentage Interests are stated in the Declaration and come automatically with the ownership of a Unit. The Percentage Interests often determine the share of common expenses that the Unit owner must pay for the repair and maintenance of the Common Elements and for the operation of the Association. Percentage Interests may be an equal percentage for all Units, in proportion to the square footage of the Units, based upon the location or value of the Units, or based upon some other formula stated in the Declaration.

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Association: The Association is the entity that the Unit owners use to act together as a group to manage and maintain the Condominium property and finances. This group will be either a nonstock, nonprofit corporation or an unincorporated Association. Every Unit owner is automatically a member of the Association and votes for the Association directors who, on behalf of the Association, manage and maintain the Common Elements, adopt budgets and set the amount of the fees or assessments paid by the Unit owners for the Association's common expenses. The Association directors typically are responsible for the maintenance of the Condominium property, including lawn and garden care, snow removal, painting, roofs, and amenities such as swimming pools and tennis courts. They are responsible for collecting assessment fees, maintaining books and records, overseeing reserve funds, preparing financial reports, and filing tax returns. The board of directors is responsible for enforcing the rules and providing disclosure materials for Unit sales. Some or all of these functions may be delegated to a Condominium manager or other professionals such as accountants.

92 Assessment Fees: The Association sets a budget for all of the Condominium expenses and divides those expenses among the 93 Unit owners. These fees are called "common assessments" or "condo maintenance fees" and typically are paid monthly. The 94 Association may also create reserves for future maintenance and repairs. Residential Condominium Concepts was developed and distributed by the Wisconsin REALTORS® Association (2005). Drafted by: Attorneys Debra Peterson Conrad (WRA) and Lisa M. Pardon (Brennan, Steil & Basting, S.C.) Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road Madison, Wisconsin 53704

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Wisconsin REALTORS Association

OFFER ADDENDUM S - LEAD BASED PAINT DISCLOSURES AND ACKNOWLEDGMENTS

Page 1 of 3

LEAD WARNING STATEMENT: Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. Disclosures and Acknowledgments made with respect to the Property at , Wisconsin.

SELLER DISCLOSURE AND CERTIFICATION.

Note: See Seller Obligations at lines 27 - 54 and 55 - 112.

(1) SELLER DISCLOSURES: (a) Seller hereby represents that Seller has no knowledge of any lead-based paint or lead-based paint hazards (collectively referred to as LBP) present in or on the Property except:

(Explain the information known to Seller, including any additional information available about the basis for the determination that LBP exists in or on the Property, the location of any LBP, and the condition of painted surfaces, or indicate "none.") (b) Seller hereby confirms that Seller has provided the Buyer with the following records and reports which comprise all of the reports and records available to Seller pertaining to lead-based paint or lead-based paint hazards (LBP) in or on the Property: (Identify the LBP record(s) and report(s) (e.g. LBP abatements, inspections, reductions, risk assessments, etc., as defined at lines 89 - 107) provided to Buyer, or indicate "none available.") (2) SELLER CERTIFICATION: The undersigned Seller has reviewed the information above and certifies, to the best of their knowledge, that the information provided by them is true and accurate.

(X)

(ALL Sellers' signatures)

Print Names Here Seller Obligations under the Federal Lead-Based Paint Disclosure Rules

(Date)

(Based upon 40 CFR Chapter 1, Part 745, Subpart F, §§745.103, 745.107, 745.110, 745.113 & 745.115; and 24 CFR subtitle A,

Part 35, Subpart H, §§35.86, 35.88, 35.90, 35.92 & 35.94, which all are collectively referred to in this Addendum as Federal LBP Law.) DISCLOSURE REQUIREMENTS FOR SELLERS. (a) The following activities shall be completed before the Buyer is obligated under any contract to purchase target housing that is not otherwise an exempt transaction pursuant to Federal Law. Nothing in this section implies a positive obligation on the Seller to conduct any risk assessment and/or inspection or any reduction activities. (1) Provide LBP Pamphlet to Buyer. The Seller shall provide the Buyer with an EPA-approved lead hazard information pamphlet. Such pamphlets include the EPA document entitled Protect Your Family From Lead In Your Home (EPA #747-K-99-001) or an equivalent pamphlet that has been approved for use in this state by EPA. (2) Disclosure of Known LBP to Buyer. The Seller shall disclose to the Buyer the presence of any known lead-based paint and/or lead-based paint hazards in the target housing being sold. The Seller shall also disclose any additional information available concerning the known lead-based paint and/or lead-based paint hazards, such as the basis for the determination that lead-based paint and/or lead-based paint hazards exist, the location of lead-based paint and/or lead-based paint hazards, and the condition of painted surfaces (chipping, cracked, peeling). (3) Disclosure of Known LBP & LBP Records to Agent. The Seller shall disclose to each agent the presence of any known lead-based paint and/or lead-based paint hazards in the target housing being sold and the existence of any available records or reports pertaining to lead-based paint and/or lead-based paint hazards. The Seller shall also disclose any additional information available concerning the known lead-based paint and/or lead-based paint hazards, such as the basis for the determination that lead-based paint and/or lead-based paint hazards exist, the location of lead-based paint and/or lead-based paint hazards, and the condition of the painted surfaces (chipping, cracked, peeling). (4) Provision of Available LBP Records & Reports to Buyer. The Seller shall provide the Buyer with any records or reports available (see line 88) to the Seller pertaining to lead-based paint and/or lead-based paint hazards in the target housing being sold. This requirement includes records or reports regarding common areas. This requirement also includes records or reports regarding other residential dwellings in multifamily target housing, provided that such information is part of a risk assessment and/or inspection or a reduction of lead-based paint and/or lead-based paint hazards in the target housing as a whole. (b) Disclosure Prior to Acceptance of Offer. If any of the disclosure activities identified in lines 30-51 occurs after the Buyer has provided an offer to purchase the housing, the Seller shall complete the required disclosure activities prior to accepting the Buyer's offer and allow the Buyer an opportunity to review the information and possibly amend the offer.

Wisconsin REALTORS Association 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

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page 2 of 3, Addendum S

CERTIFICATION AND ACKNOWLEDGMENT OF LBP DISCLOSURE. (a) Seller requirements. Each contract to sell target 55 56 housing shall include an attachment or addendum containing the following elements, in the language of the contract (e.g., English,

57 Spanish): (1) Lead Warning Statement. A Lead Warning Statement consisting of the following language: 58 Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified 59 60 that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead 61 poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, 62 reduced intelligence quotient, behavorial problems, and impaired memory. Lead poisoning also poses a particular risk to 63 pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on 64 lead-based paint hazards from risk assessments or inspections in the Seller's possession and notify the buyer of any known 65 lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to 66 purchase. (2) Disclosure of Known LBP & LBP Information Re: the Property. A statement by the Seller disclosing the presence of 67 68 known lead-based paint and/or lead-based paint hazards in the target housing being sold or indicating no knowledge of the 69 presence of lead-based paint and/or lead-based paint hazards. The Seller shall also provide any additional information 70 available concerning the known lead-based paint and/or lead-based paint hazards, such as the basis for the determination 71 that lead-based paint and/or lead-based paint hazards exist, the location of the lead-based paint and/or lead-based paint 72 hazards, and the condition of the painted surfaces (chipping, cracked, peeling, dust, etc.). (3) List of Available LBP Records & Reports Provided to Buyer. A list of any records or reports available to the Seller 73 74 pertaining to lead-based paint and/or lead-based paint hazards in the housing that have been provided to the Buyer. If no 75 such records or reports are available, the Seller shall so indicate. (4) Buyer Acknowledgment of Receipt of Disclosures, Records & Pamphlet. A statement by the Buyer affirming receipt 76 77 of the information set out in lines 67 - 75 and a lead hazard information pamphlet approved by EPA. (5) Buyer Acknowledgment of Receipt of Opportunity for LBP Inspection. A statement by the Buyer that he or she has either: 78 79 (i) received the opportunity to conduct the risk assessment or inspection required per lines 123 - 127; or (ii) waived the opportunity. (6) Agent Certification. When one or more real estate agents are involved in the transaction to sell target housing, 80 81 a statement from each agent that: (i) The agent has informed the Seller of the Seller's obligations under 82 Federal LBP Law; and (ii) the agent is aware of his or her duty to ensure compliance with Federal LBP Law. Agents ensure 83 compliance by informing Seller of his or her obligations and by making sure that the Seller or the agent personally completes 84 the required activities. Buyer's agents paid solely by Buyer are exempt. (7) Signatures. The signatures of all Sellers and Buyers, and all agents subject to Federal LBP Law (see lines 80 - 84) 85 86 certifying to the accuracy of their statements to the best of their knowledge, along with the dates of the signatures. 87 DEFINITIONS: 88 Available means in the possession of or reasonably obtainable by the Seller at the time of the disclosure. 89 Abatement means the permanent elimination of lead-based paint and/or lead-based paint hazards by methods such as 90 removing, replacing, encapsulating, containing, sealing or enclosing lead-based paint with special materials, in conformance 91 with any applicable legal requirements. 92 Buyer means one or more individuals or entities who enter into a contract to purchase an interest in target housing (referred 93 to in the singular whether one or more). 94 Inspection means: (1) a surface-by-surface investigation to determine the presence of lead-based paint, and (2) the provision 95 of a report explaining the results of the investigation. 96 Lead-based paint means paint or other surface coatings that contain lead equal to or in excess of 1.0 milligram per square 97 centimeter or 0.5 percent by weight. 98 Lead-based paint hazard means any condition that causes exposure to lead from lead-contaminated dust, lead-contaminated 99 soil, or lead-contaminated paint that is deteriorated or present in accessible surfaces, friction surfaces, or impact surfaces 100 that would result in adverse human health effects as established by the appropriate Federal agency. 101 Reduction means designed to reduce or eliminate human exposure to lead-based paint hazards through interim controls, 102 abatement, etc. 103 Risk assessment means an on-site investigation to determine and report the presence of lead-based paint, and to evaluate 104 and report the extent, nature, severity, and location of lead-based paint hazards in residential dwellings, including: (1) 105 information gathering regarding the age and history of the housing and occupancy by children under 6; (2) visual inspection; 106 (3) limited wipe sampling or other environmental sampling techniques; (4) other activity as may be appropriate; and (5) 107 provision of a report explaining the results of the investigation. 108 Seller means one or more individuals or entities who transfer, in return for consideration, (1) legal title to target housing, in 109 whole or in part; (2) shares in a cooperatively owned project; or (3) an interest in a leasehold (referred to in the singular 110 whether one or more). 111 Target housing means any housing constructed prior to 1978, except housing for the elderly or persons with disabilities (unless 112 any child who is less than 6 years of age resides or is expected to reside in such housing) or any 0-bedroom dwelling. 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[page 3 of 3, Addendum S] 113 114 115 116 117 118

AGENT(S) ACKNOWLEDGMENT AND CERTIFICATION. (1) ACKNOWLEDGMENT: All agent(s) in this transaction subject to Federal LBP Law (see lines 80 - 84) hereby acknowledge that: (1) the Seller was informed of his or her obligations under the Federal LBP Law (see lines 27 - 54 and 55 112); and (2) they are aware of their duty to ensure compliance with the requirements of Federal LBP Law. (2) CERTIFICATION: The undersigned agents have reviewed the information above and certify, to the best of their knowledge, that the information provided by them is true and accurate.

119 (X) 120 (Agent's signature)

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121 (X) 122 (Agent's signature)

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123 124 125 126 127

BUYER'S OPPORTUNITY TO CONDUCT AN EVALUATION (LBP Inspection Contingency). (a) Before a Buyer is obligated under any contract to purchase target housing, the Seller shall permit the Buyer a 10-day period (unless the parties mutually agree, in writing, upon a different period of time) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. (b) Not withstanding lines 123 - 126, a Buyer may waive the opportunity to conduct the risk assessment or inspection by so indicating in writing.

128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148

BUYER INSPECTION CONTINGENCY, ACKNOWLEDGMENT AND CERTIFICATION. (1) LEAD-BASED PAINT INSPECTION CONTINGENCY: [Buyer to check one box at lines 131, 147 or 148. If no box is checked, Buyer is deemed to have elected a 10-day contingency per lines 131 - 146.] LEAD-BASED PAINT INSPECTION CONTINGENCY: This Offer is contingent upon a federal or state certified lead inspector or lead risk assessor conducting an inspection or risk assessment of the Property, at Buyer's cost, which discloses no lead-based paint and/or lead-based paint hazards (see lines 96 - 100) (collectively referred to as LBP). This contingency shall be deemed satisfied, and Buyer will have elected to take the Property "as is" with respect to LBP, unless Buyer, within days of acceptance, delivers to Seller a copy of the inspector's or risk assessor's written report and a written notice listing the LBP identified in the report to which the Buyer objects. Buyer agrees to concurrently deliver a copy of the report and notice to the listing broker, if any. A proposed amendment will not satisfy this notice requirement. RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE have a right to cure [if neither struck, Seller shall have the right to cure]. If Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering, within 10 days of receipt of Buyer's notice, written notice of Seller's election to abate the LBP identified by the Buyer; and (2) providing Buyer, no later than 3 days prior to closing, with certification from a certified lead supervisor or project designer, or other certified lead contractor that the identified LBP has been abated. This Offer shall be null and void if Buyer makes timely delivery of the above notice and report and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: a) Seller delivers notice that Seller will not cure or b) Seller does not timely deliver the notice of election to cure. "Abate" shall mean to permanently eliminate the identified LBP by methods such as removing, replacing, encapsulating, containing, sealing or enclosing the identified LBP, in conformance with the requirements of all applicable law. Buyer elects the LBP contingency Buyer has attached to this Addendum S. Buyer waives the opportunity for a LBP inspection or assessment.

149 150 151 152

(2) BUYER ACKNOWLEDGMENT: Buyer hereby acknowledges and certifies that Buyer has: (a) received the Seller's above-listed disclosures, reports and records concerning any known LBP in or on the Property (see lines 12 - 22); (b) received a lead hazard information pamphlet approved by the EPA; and (c) received the opportunity to conduct a LBP risk assessment or inspection of the Property or has waived the opportunity (see lines 131 - 148 above).

153 (3) BUYER CERTIFICATION: The undersigned Buyer has reviewed the information above and certifies, to the best of their 154 knowledge, that the information provided by them is true and accurate. 155 (X) 156 (ALL Buyers' signatures) 157

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Copyright © 2007 by Wisconsin REALTORS® Association Drafted by Attorney Debra Peterson Conrad No representation is made as to the legal validity of any provision or the adequacy of any provision in any specific transaction.

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Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Page 1 of 9, WB-11

WB-11 RESIDENTIAL OFFER TO PURCHASE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

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LICENSEE DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER) (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE GENERAL PROVISIONS The Buyer, _____________________________________________________________________ _______________________________, offers to purchase the Property known as [Street Address] _____________________ ______________________________________________________________ in the _________________________________ of __________________________________, County of _____________________________ Wisconsin (insert additional description, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434), on the following terms: ■ PURCHASE PRICE: _________________________________________________________________________________ ____________________________________________________________ Dollars ($___________________________ ______). ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or ________________________________________________________________________________________________ ______. ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ _________________________________________________________________________________________________________. ■ NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ _________________________________________________________________________________________________________. CAUTION: Identify Fixtures that are on the Property (see lines 185-193) to be excluded by Seller or which are rented and will continue to be owned by the lessor. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included/excluded. ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or before _______________________________________________________________. Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer. CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF MARKED “N/A” OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 36-54. (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 38 or 39. Seller's recipient for delivery (optional): _______________________________________________________________________ Buyer's recipient for delivery (optional): _______________________________________________________________________ (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: (________) ________________________________ Buyer: (_________) _______________________________ ______ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. Delivery address for Seller: ________________________________________________________________________________ ___ Delivery address for Buyer: ________________________________________________________________________________ ___ (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address for Seller (optional): _______________________________________________________________________ E-Mail address for Buyer (optional): _______________________________________________________________________ PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers.

FORMS APPENDIX Page 2 of 9, WB-11 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115

OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at lines 165-172 or 435-442 or in an addendum attached per line 434. At time of Buyer's occupancy, Property shall be in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. DEFINITIONS ■ ACTUAL RECEIPT: “Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or written notice physically in the Party’s possession, regardless of the method of delivery. ■ CONDITIONS AFFECTING THE PROPERTY OR TRANSACTION: “Conditions Affecting the Property or Transaction” are defined to include: a. Defects in the roof. b. Defects in the electrical system. c. Defects in part of the plumbing system (including the water heater, water softener and swimming pool) that is included in the sale. d. Defects in the heating and air conditioning system (including the air filters and humidifiers). e. Defects in the well, including unsafe well water. f. Property is served by a joint well. g. Defects in the septic system or other sanitary disposal system. h. Underground or aboveground fuel storage tanks on or previously located on the Property. (If "yes", the owner, by law, may have to register the tanks with the Department of Commerce at P.O. Box 7970, Madison, Wisconsin, 53707, whether the tanks are in use or not. Regulations of the Department of Commerce may require the closure or removal of unused tanks.) i. “LP” tank on the Property (specify in the additional information whether the tank is owned or leased). j. Defects in the basement or foundation (including cracks, seepage and bulges). k. Property is located in a floodplain, wetland or shoreland zoning area. l. Defects in the structure of the Property. m. Defects in mechanical equipment included in the sale either as Fixtures or personal property. n. Boundary or lot line disputes, encroachments or encumbrances (including a joint driveway). o. Defect caused by unsafe concentrations of, or unsafe conditions relating to, radon, radium in water supplies, lead in paint, lead in soil, lead in water supplies or plumbing system, or other potentially hazardous or toxic substances on the Property. NOTE: Specific federal lead paint disclosure requirements must be complied with in the sale of most residential properties built before 1978. p. Presence of asbestos or asbestos-containing materials on the Property. q. Defect caused by unsafe concentrations of, unsafe conditions relating to, or the storage of, hazardous or toxic substances on neighboring properties. r. Current or previous termite, powder-post beetle or carpenter ant infestations or Defects caused by animal or other insect infestations. s. Defects in a wood burning stove or fireplace or Defects caused by a fire in a stove or fireplace or elsewhere on the Property. t. Remodeling affecting the Property's structure or mechanical systems or additions to Property during Seller’s ownership without required permits. u. Federal, state, or local regulations requiring repairs, alterations or corrections of an existing condition. v. Notice of property tax increases, other than normal annual increases, or pending property reassessment. w. Remodeling that may increase Property's assessed value. x. Proposed or pending special assessments. y. Property is located within a special purpose district, such as a drainage district, that has the authority to impose assessments against the real property located within the district. z. Proposed construction of a public project that may affect the use of the Property. aa. Subdivision homeowners' associations, common areas co-owned with others, zoning violations or nonconforming uses, rights-of-way, easements or another use of a part of the Property by non-owners, other than recorded utility easements. bb. Structure on the Property is designated as an historic building or part of the Property is in an historic district. cc. Any land division involving the Property for which required state or local permits had not been obtained. dd. Violation of state or local smoke and carbon monoxide detector laws. ee. High voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property. ff. The Property is subject to a mitigation plan required by Wisconsin Department of Natural Resources (DNR) rules related to county shoreland zoning ordinances that obligates the owner to establish or maintain certain measures related to shoreland conditions, enforceable by the county. gg. Other Defects affecting the Property. (Definitions Continued on page 4)

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Property Address: _________________________________________________________________________________________________________Page 3 of 9, WB-11 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172

CLOSING This transaction is to be closed no later than _______________________________________________________ ___________________________________ __ at the place selected by Seller, unless otherwise agreed by the Parties in writing. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and _________________________________________________________________________________. CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) Current assessment times current mill rate (current means as of the date of closing) Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate (current means as of the date of closing) _____________________________________________________________________________________________. CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re-prorate within 30 days of Buyer’s receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are _____________________________________________________________ _____________________. Insert additional terms, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434. RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from Wisconsin Rental Weatherization Standards (Wis. Admin. Code Ch. Comm 67). If not exempt, (Buyer) (Seller) STRIKE ONE (“Buyer” if neither is stricken) shall be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall provide a Certificate of Compliance at closing. REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to provide Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, personal representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The law provides: "§ 709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance of the contract of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of sale . . . by delivering a written notice of rescission to the owner or the owner's agent." Buyer may also have certain rescission rights if a Real Estate Condition Report disclosing defects is furnished before expiration of the 10 days, but after the Offer is submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding rescission rights. PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or knowledge of Conditions Affecting the Property or Transaction (lines 64-114) other than those identified in Seller's Real Estate Condition Report dated ____________________________________, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and ____________________________________________________________________________________________________ _________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT _____ ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________

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Page 4 of 9, WB-11 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215

DEFINITIONS CONTINUED FROM PAGE 2 ■ DEADLINES: “Deadlines” expressed as a number of “days” from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of “hours” from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day. ■ DEFECT: “Defect” means 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 affect the expected normal life of the premises. ■ FIXTURE: A “Fixture” is an item of property which is physically attached to or so closely associated with land or improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accessories; inground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 17-18. ■ PROPERTY: Unless otherwise stated, “Property” means the real estate described at lines 4-7. PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room dimensions, or total acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless verified by survey or other means. CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building or room dimensions, if material. BUYER’S PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and tear and changes approved by Buyer, and that any defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Property until the earlier of closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear. If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the selling price, Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Property.

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Property Address: _________________________________________________________________________________________________________Page 5 of 9, WB-11 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271

IF LINE 217 IS NOT MARKED OR IS MARKED N/A LINES 257-263 APPLY. FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written __________________ ______________________________________________________ [INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within _______ days of acceptance of this Offer. The financing selected shall be in an amount of not less than $ _____________________ for a term of not less than ______ years, amortized over not less than _____ years. Initial monthly payments of principal and interest shall not exceed $ _____________. Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and/or loan origination fee in an amount not to exceed ________% of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 228 or 229.  FIXED RATE FINANCING: The annual rate of interest shall not exceed _______%.  ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed _______%. The initial interest rate shall be fixed for _______ months, at which time the interest rate may be increased not more than ________% per year. The maximum interest rate during the mortgage term shall not exceed ________%. Monthly payments of principal and interest may be adjusted to reflect interest changes. If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 165-172 or 435-442 or in an addendum attached per line 434. ■ BUYER’S LOAN COMMITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to provide evidence of application promptly upon request of Seller. If Buyer qualifies for the loan described in this Offer or another loan acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline at line 219. Buyer and Seller agree that delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy Buyer’s financing contingency if, after review of the loan commitment, Buyer has directed, in writing, delivery of the loan commitment. Buyer’s written direction shall accompany the loan commitment. Delivery shall not satisfy this contingency if accompanied by a notice of unacceptability. CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. BUYER, BUYER’S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN COMMITMENT TO SELLER OR SELLER’S AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. ■ SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment; Seller may terminate this Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. ■ FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. ■ IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party in control of Buyer’s funds shall provide Seller with reasonable written verification that Buyer has, at the time of verification, sufficient funds to close. If such written verification is not provided, Seller has the right to terminate this Offer by delivering written notice to Buyer. Buyer may or may not obtain mortgage financing but does not need the protection of a financing contingency. Seller agrees to allow Buyer’s appraiser access to the Property for purposes of an appraisal. Buyer understands and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this Offer is subject to an appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency. APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer’s lender having the Property appraised at Buyer’s expense by a Wisconsin licensed or certified independent appraiser who issues an appraisal report dated subsequent to the date of this Offer indicating an appraised value for the Property equal to or greater than the agreed upon purchase price. This contingency shall be deemed satisfied unless Buyer, within _____________ days of acceptance, delivers to Seller a copy of the appraisal report which indicates that the appraised value is not equal to or greater than the agreed upon purchase price, accompanied by a written notice of termination. CAUTION: An appraisal ordered by Buyer’s lender may not be received until shortly before closing. Consider whether deadlines provide adequate time for performance.

250

FORMS APPENDIX

Page 6 of 9, WB-11 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303

DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry. DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability for damages or other legal remedies. If Buyer defaults, Seller may: (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual damages. If Seller defaults, Buyer may: (1) sue for specific performance; or (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. In addition, the Parties may seek any other remedies available in law or equity. The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration agreement. NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds and inures to the benefit of the Parties to this Offer and their successors in interest. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608) 240-5830.

251

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Property Address: _________________________________________________________________________________________________________Page 7 of 9, WB-11 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359

252

CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's property located at _____________________________________________, no later than ______________. If Seller accepts a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written waiver of the Closing of Buyer's Property Contingency and ______________________________________________________ _____________________________________________________________________________________________________ [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within ____ hours of Buyer's Actual Receipt of said notice, this Offer shall be null and void. SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. Buyer may declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller's notice that this Offer is primary. Buyer may not deliver notice of withdrawal earlier than _____ days after acceptance of this Offer. All other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this Offer except: _________________________________________________________________________________________ _________________________________________________________________________________________________ _____ ______________________________________________________________. If “Time is of the Essence” applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. TITLE EVIDENCE ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (trustee’s deed if Seller is a trust, personal representative’s deed if Seller is an estate or other conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate Condition Report and in this Offer, general taxes levied in the year of closing and ___________________________________ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making improvements to Property or a use other than the current use. ■ TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) STRIKE ONE (“Seller’s” if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy exclusions and exceptions, provided the title company will issue the endorsement. If a gap endorsement or equivalent gap coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 353-359). ■ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance commitment is delivered to Buyer's attorney or Buyer not less than 5 business days before closing, showing title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 326-335, subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. ■ TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to remove the objections, and the time for closing shall be extended as necessary for this purpose. In the event that Seller is unable to remove said objections, Buyer shall have 5 days from receipt of notice thereof, to deliver written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does not waive the objections, this Offer shall be null and void. Providing title evidence acceptable for closing does not extinguish Seller's obligations to give merchantable title to Buyer.

FORMS APPENDIX

Page 8 of 9, WB-11 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409

■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement if area assessments, property owners association assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. “Other expenses” are one-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). EARNEST MONEY ■ HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (Buyer's agent if Property is not listed or Seller's account if no broker is involved), until applied to the purchase price or otherwise disbursed as provided in the Offer. CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special disbursement agreement. ■ DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from payor's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. At closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest money shall be disbursed according to a written disbursement agreement signed by all Parties to this Offer. If said disbursement agreement has not been delivered to broker within 60 days after the date set for closing, broker may disburse the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) any other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed $250, prior to disbursement. ■ LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties in relation to this Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or Seller disagree with broker's proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith disbursement of earnest money in accordance with this Offer or applicable Department of Regulation and Licensing regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies are included as a part of this Offer. An “inspection” is defined as an observation of the Property which does not include an appraisal or testing of the Property, other than testing for leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, which are hereby authorized. A “test” is defined as the taking of samples of materials such as soils, water, air or building materials from the Property and the laboratory or other analysis of these materials. Seller agrees to allow Buyer’s inspectors, testers and appraisers reasonable access to the Property upon advance notice, if necessary to satisfy the contingencies in this Offer. Buyer and licensees may be present at all inspections and testing. Except as otherwise provided, Seller’s authorization for inspections does not authorize Buyer to conduct testing of the Property. NOTE: Any contingency authorizing testing should specify the areas of the Property to be tested, the purpose of the test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other material terms of the contingency. Buyer agrees to promptly restore the Property to its original condition after Buyer’s inspections and testing are completed unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources.

253

REAL ESTATE SALES

Property Address: _________________________________________________________________________________________________________Page 9 of 9, WB-11

442

INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). This Offer is contingent upon a Wisconsin registered home inspector performing a home inspection of the Property which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party performing an inspection of _____________________________________________________________________________ _____________________________________________ (list any Property component(s) to be separately inspected, e.g., swimming pool, roof, foundation, chimney, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting from an authorized inspection, provided they occur prior to the deadline specified at line 421. Inspection(s) shall be performed by a qualified independent inspector or independent qualified third party. CAUTION: Buyer should provide sufficient time for the home inspection and/or any specialized inspection(s), as well as any follow-up inspection(s). This contingency shall be deemed satisfied unless Buyer, within ________ days of acceptance, delivers to Seller a copy of the written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. For the purposes of this contingency, Defects (see lines 182-184) do not include structural, mechanical or other conditions the nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. ■ RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE (“shall” if neither is stricken) have a right to cure the Defects. If Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects stating Seller’s election to cure Defects; (2) curing the Defects in a good and workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure. ADDENDA: The attached __________________________________________________ is/are made part of this Offer. ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________

443

This Offer was drafted by [Licensee and Firm] _______________________________________________________________

444

_____________________________________________________________ on ____________________________________.

445

(x) _________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441

446

448

(x) _________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

449

EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer.

447

________________________________________________ Broker (By) _________________________________________ ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER 452 SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY 453 ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS 454 OFFER. 450

451 SELLER

455 456

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

458

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

459

This Offer was presented to Seller by [Licensee and Firm] _____________________________________________________

460

__________________________________________ on __________________________ at ________________ a.m./p.m.

461

This Offer is rejected _____________ _________ This Offer is countered [See attached counter] _____________ _________ Seller Initials▲ Date▲ Seller Initials▲ Date▲

457

462

254

FORMS APPENDIX

Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Page 1 of 9, WB-14

WB-14 RESIDENTIAL CONDOMINIUM OFFER TO PURCHASE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58

LICENSEE DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER) (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) SSTRIKE THOSE NOT APPLICABLEE GENERAL PROVISIONS The Buyer, __________________________________________________________________________ ___ ___ _______________________, offers to purchase the Property known as [Street Address] _______________________________________ in the _____________________ of ______________________, County of ____________________, Wisconsin, particularly described as Unit: _______ (Building ____________) of _______________________________________________________________ Condominium (Insert additional description, if any, at lines 174-188 or 514-519 or attach as an addendum per line 513), on the following terms: * PURCHASE PRICE: ________________________________________________________ Dollars ($_________________________). * EARNEST MONEY of $ ________________________ accompanies this Offer and earnest money of $ _______________________ will be mailed, or commercially or personally delivered within _____________________________ days of acceptance to listing broker or _____________________________________________________________________________________________________________. * THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. * INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price: (1) the Property; (
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Elements and Limited Common Elements (see lines 75-80 and 327-332) appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set forth in the Condominium Declaration and plat (and all amendments thereto); (
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interests in any common surplus and reserves in the Condominium allocated to the Property; (4) all Fixtures on the Property on the date of this Offer not excluded at lines 20-21; and (5) the following additional items:_______________________________________________ _____________________________________________________________________________________________________________ ___. __________________________________________________________________________________________________________ * NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________________ __ ___________________________________________________________________________________________________________ __. CAUTION: Identify Fixtures that are on the Property (see lines 317-324) to be excluded by Seller or which are rented and will continue to be owned by the lessor. * STORAGE UNIT: A storage unit (is) (is not) SSTRIKE ONEE included in the purchase price. Storage unit number: ________________. * PARKING: The parking for the Unit is ______________________________________. The parking fee is $______________________. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included/excluded. ____. * ASSOCIATION FEE: The Association fee for the Property is $_______________________________ per____________________ * OTHER FEES: The Association may charge other fees at, or subsequent to, closing which may include storage, Additional Association, reserves, start-up, administrative, etc. fees. NOTE: Buyer is advised to review the Condominium disclosure materials including, but not limited to, current financial disclosure statements and other Condominium materials described on lines 204-234, as relevant. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or before ________________________________________________________________________. Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer. (See Acceptance information at lines 61-64.) CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (
) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH A
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PART OF THIS OFFER IF MARKED 'N/A( OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 41-58. (1) Personal Delivery: $
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livery if named at line 42 or 43. Seller's recipient for delivery (optional): _____________________________________________________________________________ Buyer's recipient for delivery (optional): ______________________________________________________________________________ (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: (_______) _______________________________________ Buyer: (_______) _______________________________________ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 42 or 43, for delivery to the Party's delivery address at line 51 or 52. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at lines 42 or 43, for delivery to the Party's delivery address at line 51 or 52. Delivery address for Seller: ______________________________________________________________________________________ ___ Delivery address for Buyer: _____________________________________________________________________________________ (5) E-Mail: electronically transmitting the document or written notice to the P "&)!
-mail address, if given below at line 57 or 58. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. __ E-Mail address for Seller (optional): _______________________________________________________________________________ ___ E-Mail address for Buyer (optional): _______________________________________________________________________________

255

REAL ESTATE SALES

Page 2 of 9, WB-14 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

256

PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers. ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance. DEFINITIONS
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ADDITIONAL ASSOCIATION: Refers to any community, neighborhood, subdivision, master or umbrella association with the power to levy fees or assessments on the Property owner.
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roperty (specify in the additional information whether the tank is owned or leased). j. Defects in the basement or foundation (including cracks, seepage and bulges). k. Property is located in a floodplain, wetland or shoreland zoning area. l. Defects in the structure of the Property. m. Defects in mechanical equipment included in the sale either as Fixtures or personal property. n. Boundary or lot line disputes, encroachments or encumbrances (including a joint driveway). o. Defect caused by unsafe concentrations of, or unsafe conditions relating to, radon, radium in water supplies, lead in paint, lead in soil, lead in water supplies or plumbing system, or other potentially hazardous or toxic substances on the premises. Note: specific federal lead paint disclosure requirements must be complied with in the sale of most residential properties built before 1978. p. Presence of asbestos or asbestos-containing materials on the premises. q. Defect caused by unsafe concentrations of, unsafe conditions relating to, or the storage of, hazardous or toxic substances on neighboring properties. r. Current or previous termite, powder-post beetle or carpenter ant infestations or Defects caused by animal or other insect infestations. s. Defects in a wood burning stove or fireplace or Defects caused by a fire in a stove or fireplace or elsewhere on the Property. t. Remodeling affecting the Property's structure or mecha!
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FORMS APPENDIX

Property Address: ___________________________________________________________________________________________________________Page 3 of 9, WB-14 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188

PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or knowledge of Conditions Affecting the Property or Transaction (lines 83-127) with regard to the Unit, Condominium Common Elements and Limited Common Elements, other than those identified in Seller's Real Estate Condition Report dated ________________________ ___________________________, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by reference ICOMPLETE DATE OR STRIKE AS APPLICABLEI and ______________________________________________________ ___________________________________________________________________________________________________________ ______________________________________ IINSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITIONI IREPORTI CLOSING This transaction is to be closed no later than ______________________________________________________________ ____________________________________________at the place selected by Seller, unless otherwise agreed by the Parties in writing. Immediately after closing, Buyer and Seller shall notify the Condominium Association, and any Additional Association, of the transfer. OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at lines 174-188 or 514-519 or in an addendum attached per line 513. At time of Buyer's occupancy, the Unit and any Limited Common Elements (used exclusively by the Unit owner) shall be in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association and Condominium Association standard recurring assessments and fees, fuel and ____________________________________________________________________. CAUTION: Provide basis for utility charges, fuel and other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) Current assessment times current mill rate (current means as of the date of closing) Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate (current means as of the date of closing) ___________________________________________________________________________________________________. CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re-
  



 
receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) SSTRIKE ONEE lease(s), if any, are ______________________________________________________________________________________ ______________________________. Insert additional terms, if any, at lines 174-188 or 514-519 or attach as an addendum per line 513. CAUTION: The Association may have the power to prohibit, limit or regulate Unit rentals now or in the future. RENTAL WEATHERIZATION This transaction (is) (is not) SSTRIKE ONEE exempt from Wisconsin Rental Weatherization Standards (Wis. Admin. Code Ch. Comm 67). If not exempt, (Buyer) (Seller) SSTRIKE ONEE ( 

  

  
shall be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall provide a Certificate of Compliance at closing. ___ ADDITIONALPROVISIONS/CONTINGENCIES ____________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ______ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ______ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________ ______ ________________________________________________________________________________________________________

257

REAL ESTATE SALES

Page 4 of 9, WB-14 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246

REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to provide buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries (for example, personal representatives who have never '-(#
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#+$'+-* . . . the owner of the property shall furnish, not later than 10 days after acceptance of the contract of sale . . ., to the prospective buyer of the property a completed copy of the report . . . A prospective buyer who does not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of sale . . . by delivering a written notice of rescission to the owner or the owner's !&,3
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'ndition Report disclosing defects is furnished before expiration of the 10 days, but after the Offer is submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding rescission rights. Wis. Stat. § 709.03 provides that when the Property is a Condominium Unit, the property to which the Real Estate Condition Report applies is the Condominium Unit, the Common Elements of the Condominium and any Limited Common Elements that may be used only by the owner of the Condominium Unit being transferred. Wis. Stat. § 709.02(2) requires that Seller also furnish a Condominium addendum to the Real Estate Condition Report and a copy of the executive summary along with the Real Estate Condition Report. NOTE: Small Condominiums may not be required to have an executive summary per Wis. Stat. § 703.365(1)(b) and (8). 5 CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide Buyer, within 10 days of acceptance of Offer, but no later than 15 days prior to closing, current and accurate copies of the Condominium disclosure materials required by Wis. Stat. § 703.33. The Condominium disclosure materials include a copy of the following and any amendments to any of these [except as may be limited for small Condominiums with no more than 12 units per Wis. Stat. § 703.365(1)(b) and (8)]: (a) proposed or existing Declaration, bylaws and any rules or regulations, and an index of the contents; (b) proposed or existing articles of incorporation of the Association, if it is or is to be incorporated; (c) proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all or part of the Condominium; (d) projected annual operating budget for the Condominium including reasonable details concerning the estimated monthly payments by the purchaser for assessments and other monthly charges; (e) leases to which Unit owners or the Association will be a party; (f) general description of any contemplated expansion of Condominium including each stage of expansion and the maximum number of Units that can be added to the Condominium; (g) Unit floor plan showing location of Common Elements and other facilities available to Unit owners; (h) the executive summary. 
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the minutes of the last 3 Unit owners4 meetings, the minutes of Condominium board meetings during the 12 months prior to acceptance, information about contemplated or pending Condominium special assessments, the Association's certificate of insurance, a statement from the Association indicating the balance of reserve accounts controlled by the Association, a statement from the Association of the amount of any unpaid assessments on the Unit (per Wis. Stat. § 703.165), any Common Element inspection reports (e.g. roof, swimming pool, elevator and parking garage inspections, etc.), any pending litigation involving the Association and the Declaration, bylaws, budget and/or most recent financial statement of any master association or Additional Association the Unit may be part of. Contingencies for review and approval of those additional materials which may be available may be provided for in additional contingencies per lines 174-188 or 514-519 or in an addendum per line 513. Because not all of these materials may exist or be available from the Condominium Association, Seller may wish to verify availability prior to acceptance if the Offer is contingent upon Seller providing these materials to Buyer.

258

FORMS APPENDIX

_______ Property Address: _________________________________________________________________________________________________ _______Page 5 of 9, WB-14 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309

NOTE: IF LINE 248 IS NOT MARKED OR IS MARKED N/A LINES 285-291 APPLY. FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written____________________[INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within __________ days of acceptance of this Offer. The financing selected shall be in an amount of not less than $ ___________________ for a term of not less than _______ years, amortized over not less than _______ years. Initial monthly payments of principal and interest shall not exceed $ ____________________. Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and/or loan origination fee in an amount not to exceed ________% of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 258 or 259.
FIXED RATE FINANCING The annual rate of interest shall not exceed __________%.
ADJUSTABLE RATE FINANCING The initial annual interest rate shall not exceed __________%. The initial interest rate shall be fixed for __________ months, at which time the interest rate may be increased not more than __________% per year. The maximum interest rate during the mortgage term shall not exceed __________%. Monthly payments of principal and interest may be adjusted to reflect interest changes. If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 174-188 or 514-519 or in an addendum attached per line 513. /  0

  : Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to provide evidence of application promptly upon request of Seller. If Buyer qualifies for the loan described in this Offer or another loan acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline at line 249. Buyer and Seller agree that delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall ()!(-*-'.(financing contingency, if after review of the loan commitment Buyer has directed, in writing, delivery of the loan %##!)#$) *-'.( ,'!))$ !')!%$ ( "" %#&$- )  "%$ %##!)#$) "!+'- ( "" $%) ()!(- ) !( %$)!$$- ! accompanied by a notice of unacceptability. CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan.   .                   .      BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. / SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment, Seller may terminate this Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. / FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. / IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party in control of (,%0&
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259

REAL ESTATE SALES

Page 6 of 9, WB-14 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374

260

from one or more parcels of real estate. The owner declares his or her property to be a Condominium. The Declaration divides the property into Units, which are individually owned, and the Common Elements, which are owned in common by all of the Unit owners together. DEFECT
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PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, Unit, building or room dimensions, or total acreage or building or Unit square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless verified by survey or other means. CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building, Unit or room dimensions, if material. PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Unit and any Limited Common Elements until the earlier of closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear. If, prior to closing, the Unit is damaged in an amount of not more than five percent (5%) of the selling price, Seller shall be obligated to repair the Unit and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Unit, plus a credit towards the purchase price equal to the amount of Seller's deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Unit.  PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's agent, Buyer shall have the right to walk through the Unit and any Limited Common Elements to determine that there has been no significant change in the condition of the Unit and any Limited Common Elements, except for ordinary wear and tear and changes approved by Buyer, and that any defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry. DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability for damages or other legal remedies. If Buyer defaults, Seller may: (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual damages. If Seller defaults, Buyer may: (1) sue for specific performance; or (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. In addition, the Parties may seek any other remedies available in law or equity.

FORMS APPENDIX

Property Address: __________________________________________________________________________________________________________Page 7 of 9, WB-14 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432

The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration agreement. NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608) 240-5830. CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's property located at _______________________________________________, no later than __________________. If Seller accepts a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written waiver of the Closing of Buyer's Property Contingency and________________________________________________________________________________ _____________________________________________________________________________________________________________ [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALLI CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within _________ hours of Buyer's Actual Receipt of said notice, this Offer shall be null and void. SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. Buyer may declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller's notice that this Offer is primary. Buyer may not deliver notice of withdrawal earlier than ___________ days after acceptance of this Offer. All other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. TIME IS OF THE ESSENCE -!
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date of closing; (5) contingency Deadlines; (6) delivery of Condominium disclosure materials (see lines 204-234) STRIKE AS APPLICABLE and all other dates and Deadlines in this Offer except: _____________________________________________________ _____________________________________________________________________________________________________________ 

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       provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility, municipal and Association services, easements for the performance of Condominium duties, recorded building and use restrictions and covenants, present uses of the Property in violation of the foregoing disc #'
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TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a current ALTA form (including the ALTA Condominium endorsement or equivalent) issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer/'
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261

REAL ESTATE SALES

Page 8 of 9, WB-14 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489

262

& PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance commitment is delivered to Buyer's attorney or Buyer not less than 5 business days before closing, showing title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 409-419, subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. &
TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to remove the objections, and the time for closing shall be extended as necessary for this purpose. In the event that Seller is unable to remove said objections, Buyer shall have 5 days from receipt of notice thereof, to deliver written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does not waive the objections, this Offer shall be null and void. Providing title evidence acceptable for closing does not extinguish Seller's obligations to give merchantable title to Buyer. &
UNPAID CONDOMINIUM ASSESSMENTS: All unpaid assessments shall be paid by Seller no later than closing. & SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, including those by any applicable homeowners or Condominium Association, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement if area assessments, property owners or Condominium Association special assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. 
   
 
-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, sanitary and stormwater and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). EARNEST MONEY &
HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (buyer's agent if Property is not listed or Seller's account if no broker is involved), until applied to the purchase price or otherwise disbursed as provided in the Offer. CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special disbursement agreement. & DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from payor's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. At closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest money shall be disbursed according to a written disbursement agreement signed by all Parties to this Offer. If said disbursement agreement has not been delivered to broker within 60 days after the date set for closing, broker may disburse the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) any other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed $250, prior to disbursement. &
LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties in relation to this Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or Seller disagree with broker's proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith disbursement of earnest money in accordance with this Offer or applicable Department of Regulation and Licensing regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies are included as a part of this Offer. 
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unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources.

FORMS APPENDIX

Property Address: __________________________________________________________________________________________________________Page 9 of 9, WB-14 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512

INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 476-489). This Offer is contingent upon a Wisconsin registered home inspector performing a home inspection of the Unit and any Limited Common Elements which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party performing an inspection of _______________________________________________________________________________________ _____________________________________________________ (list any Property component(s) to be separately inspected, e.g., roof, foundation, chimney, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting from an authorized inspection performed provided they occur prior to the deadline specified at line 501. Inspection(s) shall be performed by a qualified independent inspector or independent qualified third party. CAUTION: Buyer should provide sufficient time for the home inspection and/or any specialized inspection(s), as well as any follow-up inspection(s). This contingency shall be deemed satisfied unless Buyer, within ___________________ days of acceptance, delivers to Seller a copy of the written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. For the purposes of this contingency, Defects (see lines 313-316) do not include structural, mechanical or other conditions the nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. ! RIGHT TO CURE: Seller (shall)(shall not) ISTRIKE ONEI  



 
 





 


 

right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of  
 
  election to cure Defects; (2) curing the Defects in a good and workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure.

513

ADDENDA: The attached ___________________________________________________________ is/are made part of this Offer.

514

522

ADDITIONALPROVISIONS/CONTINGENCIES ______________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds and inures to the benefit of the Parties to this Offer and their successors in interest.

523

This Offer was drafted on_________________________ [date] by [Licensee and Firm] _______________________________________

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_____________________________________________________________________________________________________________.

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EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 9 of the above Offer.

530

_______________________________________________ Broker (By) ____________________________________________________ SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OFFER.

527

531 532 533 534 535

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This Offer was presented to Seller by [Licensee and Firm] ______________________________________________________________ __

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__________________________________________on_________________________________________ at ____________ a.m./p.m.

540

This Offer is rejected __________________ ________ This Offer is countered [See attached counter] __________________ ________ 
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263

REAL ESTATE SALES

Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Page 1 of 10, WB-13

WB-13 VACANT LAND OFFER TO PURCHASE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58

LICENSEE DRAFTING THIS OFFER ON ____________________________________ [DATE] IS (AGENT OF BUYER) (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE GENERAL PROVISIONS The Buyer, _____________________________________________________________________ _________________________________________________________________________, offers to purchase the Property known as [Street Address] _____________________________________________________________________________ in the _____________________ of ________________________, County of ________________________, Wisconsin (Insert additional description, if any, at lines 458-464 or 526-534 or attach as an addendum per line 525), on the following terms: ■ PURCHASE PRICE: _________________________________________________________________________________ ____________________________________________________________ Dollars ($_________________________________). ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or _____________________________________________________________________________________________________. ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Offer not excluded at lines 18-19, and the following additional items: ___________________________________ __________________________________________________________________________________________________ ____ __________________________________________________________________________________________________ ____ ■ NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________ _____________________________________________________________________________________________________. CAUTION: Identify Fixtures that are on the Property (see lines 290-294) to be excluded by Seller or which are rented and will continue to be owned by the lessor. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included/excluded. Annual crops are not part of the purchase price unless otherwise agreed. ■ ZONING: Seller represents that the Property is zoned: _________________________________________________ ______. ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or before _______________________________________________________________. Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer. CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF MARKED “N/A” OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 38-56. (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 40 or 41. Seller's recipient for delivery (optional): ______________________________________________________________________ Buyer's recipient for delivery (optional): ______________________________________________________________________ (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: (________) _________________________________ Buyer: (_________) ______________________________ ______ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 40 or 41, for delivery to the Party's delivery address at line 49 or 50. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 40 or 41, for delivery to the Party's delivery address at line 49 or 50. Delivery address for Seller: ________________________________________________________________________________ Delivery address for Buyer: _______________________________________________________________________________ (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 55 or 56. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address for Seller (optional): _________________________________________________________________________ E-Mail address for Buyer (optional): _________________________________________________________________________ PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers.

264

FORMS APPENDIX

Property Address: ________________________________________________________________________________________________________Page 2 of 10, WB-13 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120

OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at lines 458-464 or 526-534 or in an addendum attached per line 525. At time of Buyer's occupancy, Property shall be free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or knowledge of Conditions Affecting the Property or Transaction (see lines 163-187 and 246-278) other than those identified in the Seller's disclosure report dated ________________________________, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and ________________________________________________________________________________________________ _____________________________________________________________________________________________________ _______________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE DISCLOSURE REPORT CLOSING This transaction is to be closed no later than ______________________________________________________ _________________________________at the place selected by Seller, unless otherwise agreed by the Parties in writing. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and _________________________________________________________________________________. CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) Current assessment times current mill rate (current means as of the date of closing) Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate (current means as of the date of closing) ____________________________________________________________________________________________. CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re-prorate within 30 days of Buyer’s receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are _______________________________________________________________ _______________________. Insert additional terms, if any, at lines 458-464 or 526-534 or attach as an addendum per line 525. GOVERNMENT PROGRAMS: Seller shall deliver to Buyer, within ________days of acceptance of this Offer, a list of all federal, state, county, and local conservation, farmland, environmental, or other land use programs, agreements, restrictions, or conservation easements, which apply to any part of the Property (e.g., farmland preservation agreements, farmland preservation or exclusive agricultural zoning, use value assessments, Forest Crop, Managed Forest, Conservation Reserve Program, wetland mitigation, shoreland zoning mitigation plan or comparable programs), along with disclosure of any penalties, fees, withdrawal charges, or payback obligations pending, or currently deferred, if any. This contingency will be deemed satisfied unless Buyer delivers to Seller, within seven (7) days of Buyer’s Actual Receipt of said list and disclosure, or the deadline for delivery, whichever is earlier, a notice terminating this Offer based upon the use restrictions, program requirements, and/or amount of any penalty, fee, charge, or payback obligation. CAUTION: If Buyer does not terminate this Offer, Buyer is hereby agreeing that Buyer will continue in such programs, as may apply, and Buyer agrees to reimburse Seller should Buyer fail to continue any such program such that Seller incurs any costs, penalties, damages, or fees that are imposed because the program is not continued after sale. The Parties agree this provision survives closing. MANAGED FOREST LAND: All, or part, of the Property is managed forest land under the Managed Forest Law (MFL). This designation will continue after closing. Buyer is advised as follows: The MFL is a landowner incentive program that encourages sustainable forestry on private woodlands by reducing and deferring property taxes. Orders designating lands as managed forest lands remain in effect for 25 or 50 years. When ownership of land enrolled in the MFL program changes, the new owner must sign and file a report of the change of ownership on a form provided by the Department of Natural Resources and pay a fee. By filing this form, the new owner agrees to the associated MFL management plan and the MFL program rules. The DNR Division of Forestry monitors forest management plan compliance. Changes you make to property that is subject to an order designating it as managed forest land, or to its use, may jeopardize your benefits under the program or may cause the property to be withdrawn from the program and may result in the assessment of penalties. For more information call the local DNR forester or visit http://www.dnr.state.wi.us.

265

REAL ESTATE SALES

Page 3 of 10, WB-13 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188

266

FENCES: Wis. Stat. § 90.03 requires the owners of adjoining properties to keep and maintain legal fences in equal shares where one or both of the properties is used and occupied for farming or grazing purposes. CAUTION: Consider an agreement addressing responsibility for fences if Property or adjoining land is used and occupied for farming or grazing purposes. USE VALUE ASSESSMENTS: The use value assessment system values agricultural land based on the income that would be generated from its rental for agricultural use rather than its fair market value. When a person converts agricultural land to a non-agricultural use (e.g., residential or commercial development), that person may owe a conversion charge. To obtain more information about the use value law or conversion charge, contact the Wisconsin Department of Revenue's Equalization Section or visit http://www.revenue.wi.gov/. FARMLAND PRESERVATION: Rezoning a property zoned farmland preservation to another use or the early termination of a farmland preservation agreement or removal of land from such an agreement can trigger payment of a conversion fee equal to 3 times the class 1 “use value” of the land. Contact the Wisconsin Department of Agriculture, Trade and Consumer Protection Division of Agricultural Resource Management or visit http://www.datcp.state.wi.us/ for more information. CONSERVATION RESERVE PROGRAM (CRP): The CRP encourages farmers, through contracts with the U.S. Department of Agriculture, to stop growing crops on highly erodible or environmentally sensitive land and instead to plant a protective cover of grass or trees. CRP contracts run for 10 to 15 years, and owners receive an annual rent plus one-half of the cost of establishing permanent ground cover. Removing lands from the CRP in breach of a contract can be quite costly. For more information call the state Farm Service Agency office or visit http://www.fsa.usda.gov/. SHORELAND ZONING ORDINANCES: All counties must adopt shoreland zoning ordinances that meet or are more restrictive than Wis. Admin. Code Chapter NR 115. County shoreland zoning ordinances apply to all unincorporated land within 1,000 feet of a navigable lake, pond or flowage or within 300 feet of a navigable river or stream and establish minimum standards for building setbacks and height limits, cutting trees and shrubs, lot sizes, water runoff, impervious surface standards (that may be exceeded only if a mitigation plan is adopted) and repairs to nonconforming structures. Buyers must conform to any existing mitigation plans. For more information call the county zoning office or visit http://www.dnr.state.wi.us/. Buyer is advised to check with the applicable city, town or village for additional shoreland zoning restrictions, if any. BUYER’S PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and tear and changes approved by Buyer, and that any defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Property until the earlier of closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear. If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the selling price, Seller shall be obligated to repair the Property and restore it to the same condition that is was on the day of this Offer. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller’s deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Property. DEFINITIONS ■ ACTUAL RECEIPT: “Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or written notice physically in the Party’s possession, regardless of the method of delivery. ■ CONDITIONS AFFECTING THE PROPERTY OR TRANSACTION: “Conditions Affecting the Property or Transaction” are defined to include: a. Proposed, planned or commenced public improvements or public construction projects which may result in special assessments or otherwise materially affect the Property or the present use of the Property. b. Government agency or court order requiring repair, alteration or correction of any existing condition. c. Land division or subdivision for which required state or local approvals were not obtained. d. A portion of the Property in a floodplain, wetland or shoreland zoning area under local, state or federal regulations. e. A portion of the Property being subject to, or in violation of, a farmland preservation agreement or in a certified farmland preservation zoning district (see lines 130-133), or enrolled in, or in violation of, a Forest Crop, Managed Forest (see lines 111-120), Conservation Reserve (see lines 134-138), or comparable program. f. Boundary or lot disputes, encroachments or encumbrances, a joint driveway or violation of fence laws (Wis. Stat. ch. 90) (where one or both of the properties is used and occupied for farming or grazing). g. Material violations of environmental rules or other rules or agreements regulating the use of the Property. h. Conditions constituting a significant health risk or safety hazard for occupants of the Property. i. Underground storage tanks presently or previously on the Property for storage of flammable or combustible liquids, including, but not limited to, gasoline and heating oil. j. A Defect or contamination caused by unsafe concentrations of, or unsafe conditions relating to, pesticides, herbicides, fertilizer, radon, radium in water supplies, lead or arsenic in soil, or other potentially hazardous or toxic substances on the premises. k. Production of methamphetamine (meth) or other hazardous or toxic substances on the Property. l. High voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property. m. Defects in any well, including unsafe well water due to contaminants such as coliform, nitrates and atrazine, and out-ofservice wells and cisterns required to be abandoned (Wis. Admin. Code § NR 812.26) but that are not closed/abandoned according to applicable regulations. (Definitions Continued on page 5)

FORMS APPENDIX

Property Address: ________________________________________________________________________________________________________Page 4 of 10, WB-13 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244

IF LINE 190 IS NOT MARKED OR IS MARKED N/A, LINES 230-236 APPLY. FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written___________________ _____________________________________________________ [INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within _____ days of acceptance of this Offer. The financing selected shall be in an amount of not less than $____________ for a term of not less than _____ years, amortized over not less than _____ years. Initial monthly payments of principal and interest shall not exceed $ __________________________. Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and/or loan origination fee in an amount not to exceed _______ % of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 201 or 202.  FIXED RATE FINANCING: The annual rate of interest shall not exceed _______ %.  ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed _______ %. The initial interest rate shall be fixed for _____ months, at which time the interest rate may be increased not more than _______ % per year. The maximum interest rate during the mortgage term shall not exceed _______ %. Monthly payments of principal and interest may be adjusted to reflect interest changes. If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 458-464 or 526-534 or in an addendum attached per line 525. ■ BUYER’S LOAN COMMITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to provide evidence of application promptly upon request of Seller. If Buyer qualifies for the loan described in this Offer or another loan acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline at line 192. Buyer and Seller agree that delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy the Buyer's financing contingency if, after review of the loan commitment, Buyer has directed, in writing, delivery of the loan commitment. Buyer’s written direction shall accompany the loan commitment. Delivery shall not satisfy this contingency if accompanied by a notice of unacceptability. CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. BUYER, BUYER'S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN COMMITMENT TO SELLER OR SELLER’S AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. ■ SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment, Seller may terminate this Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. ■ FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. ■ IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party in control of Buyer’s funds shall provide Seller with reasonable written verification that Buyer has, at the time of verification, sufficient funds to close. If such written verification is not provided, Seller has the right to terminate this Offer by delivering written notice to Buyer. Buyer may or may not obtain mortgage financing but does not need the protection of a financing contingency. Seller agrees to allow Buyer’s appraiser access to the Property for purposes of an appraisal. Buyer understands and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this Offer is subject to an appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency. APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer’s lender having the Property appraised at Buyer’s expense by a Wisconsin licensed or certified independent appraiser who issues an appraisal report dated subsequent to the date of this Offer indicating an appraised value for the Property equal to or greater than the agreed upon purchase price. This contingency shall be deemed satisfied unless Buyer, within __________ days of acceptance, delivers to Seller a copy of the appraisal report which indicates that the appraised value is not equal to or greater than the agreed upon purchase price, accompanied by a written notice of termination. CAUTION: An appraisal ordered by Buyer’s lender may not be received until shortly before closing. Consider whether deadlines provide adequate time for performance.

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268

DEFINITIONS CONTINUED FROM PAGE 3 n. Defects in any septic system or other sanitary disposal system on the Property or out-of-service septic systems not closed/abandoned according to applicable regulations. o. Subsoil conditions which would significantly increase the cost of development including, but not limited to, subsurface foundations or waste material; organic or non-organic fill; dumpsites where pesticides, herbicides, fertilizer or other toxic or hazardous materials or containers for these materials were disposed of in violation of manufacturer's or government guidelines or other laws regulating said disposal; high groundwater; adverse soil conditions (e.g. low load bearing capacity, earth or soil movement, slides) or excessive rocks or rock formations. p. Brownfields (abandoned, idled or under-used land which may be subject to environmental contamination) or other contaminated land, or soils contamination remediated under PECFA, the Department of Natural Resources (DNR) Remediation and Redevelopment Program, the Agricultural Chemical Cleanup Program or other similar program. q. Lack of legal vehicular access to the Property from public roads. r. Homeowners' associations, common areas shared or co-owned with others, zoning violations or nonconforming uses, conservation easements, restrictive covenants, rights-of-way, easements, easement maintenance agreements, or use of a part of Property by non-owners, other than recorded utility easements. s. Special purpose district, such as a drainage district, lake district, sanitary district or sewer district, that has the authority to impose assessments against the real property located within the district. t. Federal, state or local regulations requiring repairs, alterations or corrections of an existing condition. u. Property tax increases, other than normal annual increases; completed or pending property tax reassessment of the Property, or proposed or pending special assessments. v. Burial sites, archeological artifacts, mineral rights, orchards or endangered species. w. Flooding, standing water, drainage problems or other water problems on or affecting the Property. x. Material damage from fire, wind, floods, earthquake, expansive soils, erosion or landslides. y. Significant odor, noise, water intrusion or other irritants emanating from neighboring property. z. Substantial crop damage from disease, insects, soil contamination, wildlife or other causes; diseased trees; or substantial injuries or disease in livestock on the Property or neighboring properties. aa. Existing or abandoned manure storage facilities on the Property. bb. Impact fees, or other conditions or occurrences that would significantly increase development costs or reduce the value of the Property to a reasonable person with knowledge of the nature and scope of the condition or occurrence. cc. The Property is subject to a mitigation plan required by DNR rules related to county shoreland zoning ordinances that obligates the owner to establish or maintain certain measures related to shoreland conditions, enforceable by the county (see lines 139-145). dd. All or part of the land has been assessed as agricultural land, the owner has been assessed a use-value conversion charge or the payment of a use-value conversion charge has been deferred. ■ DEADLINES: “Deadlines” expressed as a number of “days” from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of “hours” from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day. ■ DEFECT: “Defect” means 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 affect the expected normal life of the premises. ■ FIXTURE: A “Fixture” is an item of property which is physically attached to or so closely associated with land so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises, and items customarily treated as fixtures, including, but not limited to, all: perennial crops; garden bulbs; plants; shrubs and trees and fences; storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented on lines 18-19. ■ PROPERTY: Unless otherwise stated, “Property” means the real estate described at lines 4-7. PROPERTY DEVELOPMENT WARNING If Buyer contemplates developing Property for a use other than the current use, there are a variety of issues which should be addressed to ensure the development or new use is feasible. Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain improvements or uses and therefore should be reviewed. Building permits, zoning variances, Architectural Control Committee approvals, estimates for utility hook-up expenses, special assessments, changes for installation of roads or utilities, environmental audits, subsoil tests, or other development related fees may need to be obtained or verified in order to determine the feasibility of development of, or a particular use for, a property. Optional contingencies which allow Buyer to investigate certain of these issues can be found at lines 306-350 and Buyer may add contingencies as needed in addenda (see line 525). Buyer should review any plans for development or use changes to determine what issues should be addressed in these contingencies.

FORMS APPENDIX Property Address: ________________________________________________________________________________________________________Page 6 of 10, WB-13 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364

PROPOSED USE CONTINGENCIES: Buyer is purchasing the Property for the purpose of: _______________________ __________________________________________________________________________________________________ ____ __________________________________________________________________________________________________ ____ [insert proposed use and type and size of building, if applicable; e.g. three bedroom single family home]. The optional provisions checked on lines 314-345 shall be deemed satisfied unless Buyer, within ______ days of acceptance, delivers written notice to Seller specifying those items which cannot be satisfied and written evidence substantiating why each specific item included in Buyer’s notice cannot be satisfied. Upon delivery of Buyer’s notice, this Offer shall be null and void. Seller agrees to cooperate with Buyer as necessary to satisfy the contingencies checked at lines 314-350. ZONING CLASSIFICATION CONFIRMATION: This Offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither is stricken) expense, verification that the Property is zoned ______________________ ________________________ and that the Property’s zoning allows the Buyer’s proposed use described at lines 306-308. SUBSOILS: This offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither is stricken) expense, written evidence from a qualified soils expert that the Property is free of any subsoil condition which would make the proposed use described at lines 306-308 impossible or significantly increase the costs of such development. PRIVATE ONSITE WASTEWATER TREATMENT SYSTEM (POWTS) SUITABILITY: This Offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither is stricken) expense, written evidence from a certified soils tester that (a) the soils at the Property locations selected by Buyer, and (b) all other conditions that must be approved, meet the legal requirements in effect on the date of this Offer to obtain a permit for a POWTS for use of the Property as stated on lines 306-308. The POWTS (septic system) allowed by the written evidence must be one of the following POWTS that is approved by the State for use with the type of property identified at lines 306-308 CHECK ALL THAT APPLY:  conventional in-ground;  mound;  at grade;  in-ground pressure distribution;  holding tank;  other: ___________________________________________________________________________________________. EASEMENTS AND RESTRICTIONS: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if neither is stricken) expense, copies of all public and private easements, covenants and restrictions affecting the Property and a written determination by a qualified independent third party that none of these prohibit or significantly delay or increase the costs of the proposed use or development identified at lines 306-308. APPROVALS: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if neither is stricken) expense, permits, approvals and licenses, as appropriate, or the final discretionary action by the granting authority prior to the issuance of such permits, approvals and licenses, for the following items related to Buyer’s proposed use: _____________________________________________________________________________________ __________________________________________________________________________________________________. UTILITIES: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if neither is stricken) expense, written verification of the following utility connections at the listed locations (e.g., on the Property, at the lot line, across the street, etc.) CHECK AND COMPLETE AS APPLICABLE:  electricity________________________;  gas ____________________________;  sewer_____________________;  water___________________________;  telephone_______________________;  cable _______________________;  other__________________________. ACCESS TO PROPERTY: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE (“Buyer’s” if neither is stricken) expense, written verification that there is legal vehicular access to the Property from public roads. LAND USE APPROVAL: This Offer is contingent upon Buyer obtaining, at (Buyer’s) (Seller’s) STRIKE ONE (“Buyer’s” if neither is stricken) expense, a  rezoning;  conditional use permit;  license;  variance;  building permit;  occupancy permit;  other ___________________________________________ CHECK ALL THAT APPLY, and delivering written notice to Seller if the item cannot be obtained, all within ______ days of acceptance for the Property for its proposed use described at lines 306-308. MAP OF THE PROPERTY: This Offer is contingent upon (Buyer obtaining) (Seller providing) STRIKE ONE (“Seller providing” if neither is stricken) a Map of the Property dated subsequent to the date of acceptance of this Offer prepared by a registered land surveyor, within _____ days of acceptance, at (Buyer's) (Seller's) STRIKE ONE (“Seller’s” if neither is stricken) expense. The map shall show minimum of __________ acres, maximum of __________ acres, the legal description of the Property, the Property's boundaries and dimensions, visible encroachments upon the Property, the location of improvements, if any, and: ___________________________________________________________________________________________ [STRIKE AND COMPLETE AS APPLICABLE] Additional map features which may be added include, but are not limited to: staking of all corners of the Property; identifying dedicated and apparent streets; lot dimensions; total acreage or square footage; easements or rights-of-way. CAUTION: Consider the cost and the need for map features before selecting them. Also consider the time required to obtain the map when setting the deadline. This contingency shall be deemed satisfied unless Buyer, within five days of the earlier of: (1) Buyer's receipt of the map; or (2) the deadline for delivery of said map, delivers to Seller a copy of the map and a written notice which identifies: (1) the significant encroachment; (2) information materially inconsistent with prior representations; or (3) failure to meet requirements stated within this contingency. Upon delivery of Buyer’s notice, this Offer shall be null and void.

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270

PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land dimensions, total square footage, acreage figures, or allocation of acreage information, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless verified by survey or other means. CAUTION: Buyer should verify land dimensions, total square footage/acreage figures and allocation of acreage information if material to Buyer's decision to purchase. EARNEST MONEY ■ HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (Buyer's agent if Property is not listed or Seller’s account if no broker is involved), until applied to the purchase price or otherwise disbursed as provided in the Offer. CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special disbursement agreement. ■ DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from payor's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. At closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest money shall be disbursed according to a written disbursement agreement signed by all Parties to this Offer. If said disbursement agreement has not been delivered to broker within 60 days after the date set for closing, broker may disburse the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) any other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed $250, prior to disbursement. ■ LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties in relation to this Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or Seller disagree with broker's proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith disbursement of earnest money in accordance with this Offer or applicable Department of Regulation and Licensing regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608) 240-5830.

FORMS APPENDIX

Property Address: ________________________________________________________________________________________________________Page 8 of 10, WB-13 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464

SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. Buyer may declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller's notice that this Offer is primary. Buyer may not deliver notice of withdrawal earlier than _____ days after acceptance of this Offer. All other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this Offer except: __________________________________________________________________________________________. If “Time is of the Essence” applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If “Time is of the Essence” does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. TITLE EVIDENCE ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (or trustee’s deed if Seller is a trust, personal representative’s deed if Seller is an estate or other conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s disclosure report and in this Offer, general taxes levied in the year of closing and _____________________________________________________ ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. ■ TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s) (Buyer’s) STRIKE ONE (“Seller’s” if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy exclusions and exceptions, provided the title company will issue the endorsement. If a gap endorsement or equivalent gap coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 442-449). ■ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance commitment is delivered to Buyer's attorney or Buyer not more than _____ days after acceptance (“15” if left blank), showing title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 418-427, subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. ■ TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title within _____days (“15” if left blank) after delivery of the title commitment to Buyer or Buyer’s attorney. In such event, Seller shall have a reasonable time, but not exceeding _____ days (“5” if left blank) from Buyer’s delivery of the notice stating title objections, to deliver notice to Buyer stating Seller’s election to remove the objections by the time set for closing. In the event that Seller is unable to remove said objections, Buyer may deliver to Seller written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does not waive the objections, Buyer shall deliver written notice of termination and this Offer shall be null and void. Providing title evidence acceptable for closing does not extinguish Seller’s obligations to give merchantable title to Buyer. ■ SPECIAL ASSESSMENTS: Special assessments, if any, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement if area assessments, property owners association assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. "Other expenses" are one-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). ADDITIONAL PROVISIONS/CONTINGENCIES ________________________________________________________ _______ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____

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DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability for damages or other legal remedies. If Buyer defaults, Seller may: (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual damages. If Seller defaults, Buyer may: (1) sue for specific performance; or (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. In addition, the Parties may seek any other remedies available in law or equity. The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration agreement. NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds and inures to the benefit of the Parties to this Offer and their successors in interest. INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies are included as a part of this Offer. An “inspection” is defined as an observation of the Property which does not include an appraisal or testing of the Property, other than testing for leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, which are hereby authorized. A “test” is defined as the taking of samples of materials such as soils, water, air or building materials from the Property and the laboratory or other analysis of these materials. Seller agrees to allow Buyer’s inspectors, testers and appraisers reasonable access to the Property upon advance notice, if necessary to satisfy the contingencies in this Offer. Buyer and licensees may be present at all inspections and testing. Except as otherwise provided, Seller’s authorization for inspections does not authorize Buyer to conduct testing of the Property. NOTE: Any contingency authorizing testing should specify the areas of the Property to be tested, the purpose of the test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other material terms of the contingency. Buyer agrees to promptly restore the Property to its original condition after Buyer’s inspections and testing are completed unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources.

FORMS APPENDIX

Property Address: _______________________________________________________________________________________________________Page 10 of 10, WB-13 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524

INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 488-502). This Offer is contingent upon a qualified independent inspector(s) conducting an inspection(s), of the Property which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party performing an inspection of _______________________________________________________________________________________ (list any Property feature(s) to be separately inspected, e.g., dumpsite, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting from an authorized inspection performed provided they occur prior to the deadline specified at line 513. Inspection(s) shall be performed by a qualified independent inspector or independent qualified third party. CAUTION: Buyer should provide sufficient time for the primary inspection and/or any specialized inspection(s), as well as any follow-up inspection(s). This contingency shall be deemed satisfied unless Buyer, within ______ days of acceptance, delivers to Seller a copy of the written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. For the purposes of this contingency, Defects (see lines 287-289) do not include conditions the nature and extent of which the Buyer had actual knowledge or written notice before signing this Offer. ■ RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE (“shall” if neither is stricken) have a right to cure the Defects. If Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects stating Seller’s election to cure Defects; (2) curing the Defects in a good and workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure.

525

ADDENDA: The attached ___________________________________________________is/are made part of this Offer.

526

534

ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ _____ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________

535

This Offer was drafted by [Licensee and Firm] _______________________________________________________________

536

_____________________________________________________________ on ______________________________ _______.

537

(x) ___________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

527 528 529 530 531 532 533

538 539 540

(x) ___________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

541

EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer.

542

_______________________________________________ Broker (by) ____________________________________ __________ SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OFFER.

543 544 545 546 547

_________________ (x) ___________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

549

_________________ (x) ____________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

550

This Offer was presented to Seller by [Licensee and Firm] ______________________________________________________

551

__________________________________________ on __________________________ at __________________ a.m./p.m.

552

This Offer is rejected _______________ _______ This Offer is countered [See attached counter] _______________ _______ Seller Initials▲ Date▲ Seller Initials▲ Date▲

548

553

273

REAL ESTATE SALES

Approved by Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-44 COUNTER-OFFER Counter-Offer No. __________ by (Buyer/Seller) STRIKE ONE NOTE: Number this Counter-Offer sequentially, e.g. Counter-Offer No. 1 by Seller, Counter-Offer No. 2 by Buyer, etc. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

The Offer to Purchase dated ____________________ and signed by Buyer __________________________________ for purchase of real estate at _______________________________________________________________________ _______________________________________________ is rejected and the following Counter-Offer is hereby made. CAUTION: This Counter-Offer does not include the terms or conditions in any other counter-offer or multiple counter-proposal unless incorporated by reference. All terms and conditions remain the same as stated in the Offer to Purchase except the following: _________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________ The attached _____________________________________________________ is/are made part of this Counter-Offer. Any warranties, covenants and representations made in this Counter-Offer survive the closing of this transaction. This Counter-Offer is binding upon Seller and Buyer only if a copy of the accepted Counter-Offer is delivered to the Party making the Counter-Offer on or before ________________________________________________________ (Time is of the Essence). Delivery of the accepted Counter-Offer may be made in any manner specified in the Offer to Purchase, unless otherwise provided in this Counter-Offer. NOTE: The Party making this Counter-Offer may withdraw the Counter-Offer prior to acceptance and delivery as provided at lines 30-33.

36 37

This Counter-Offer was drafted by _________________________________________ on _______________________ Licensee and Firm ▲ Date ▲

38 39 40

(x) ___________________________________________ Signature of Party Making Counter-Offer ▲ Date ▲ Print name

(x) ____________________________________________ Signature of Party Accepting Counter-Offer ▲ Date ▲ Print name

41 42 43

(x) ___________________________________________ Signature of Party Making Counter-Offer ▲ Date ▲ Print name

(x) ____________________________________________ Signature of Party Accepting Counter-Offer ▲ Date ▲ Print name

44 45

This Counter-Offer was presented by __________________________________________ on ____________________ Licensee and Firm ▲ Date ▲

46

This Counter-Offer is (rejected)(countered) STRIKE ONE (Party’s Initials) ___________ (Party’s Initials) __________

47 48 49 50

NOTE: Provisions from a previous Counter-Offer may be included by reproduction of the entire provision or incorporation by reference. Provisions incorporated by reference may be indicated in the subsequent CounterOffer by specifying the number of the provision or the lines containing the provision. In transactions involving more than one Counter-Offer, the Counter-Offer referred to should be clearly specified.

274

FORMS APPENDIX

Wisconsin REALTORS Association

Approved by Wisconsin Department of Regulation and Licensing 11-1-09 (Optional Use Date) 3-1-10 (Mandatory Use Date)

WB-46 MULTIPLE COUNTER-PROPOSAL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

A Multiple Counter-Proposal is being made by Seller to one or more other prospective buyers. The terms of this Multiple Counter-Proposal may differ from the terms of multiple counter-proposals being submitted to other prospective buyers. This Multiple Counter-Proposal is not binding on Seller or Buyer until Seller's binding acceptance per lines 45-47. Seller or Buyer may withdraw their Multiple Counter-Proposal or accepted Multiple Counter-Proposal, at any time prior to binding acceptance per lines 45-47. , for The Offer to Purchase dated and signed by Buyer, purchase of real estate at is rejected and the following Multiple Counter-Proposal is made. All terms and conditions remain the same as stated in the Offer to Purchase except the following: [CAUTION: This Multiple Counter-Proposal does not include the terms or conditions in any other counter-offer or multiple counter-proposal unless incorporated by reference.]

Any warranties, covenants and representations made in this Multiple Counter-Proposal survive the closing of this transaction. This Multiple Counter-Proposal by Seller will expire and be null and void unless a copy of the approved Multiple Counter-Proposal (see (Time is of the lines 31-33) is delivered to Seller in any manner authorized in the Offer to Purchase on or before by Essence). This Multiple Counter-Proposal was drafted on . Date

Licensee and Firm

26 (x) 27 Seller's Signature

Print Name Here

Date

28 (x) 29 Seller's Signature

Print Name Here

Date

30 31 32 33 34 35

APPROVAL BY BUYER This Multiple Counter-Proposal by Seller is approved by Buyer. Approval of this Multiple Counter-Proposal is not binding on Buyer or Seller until binding acceptance of this approved Multiple Counter-Proposal by Seller (per lines 45-47) on or before , (Time is of the Essence). NOTE: If the above Multiple Counter-Proposal by Seller is not approved by Buyer in its entirety, do not use this form for a counter-offer by Buyer. Instead, submit a CounterOffer (WB-44) or a new offer to purchase.

36 (x) 37 Buyer's Signature

Print Name Here

Date

38 (x) 39 Buyer's Signature

Print Name Here

Date

40 41 42 43

This Multiple Counter-Proposal is (rejected) (countered) STRIKE ONE (Buyer's Initials) This Multiple Counter-Proposal was presented to Buyer by on

Licensee and Firm

Date

, at

a.m./p.m.

44

ACCEPTANCE BY SELLER

45 46 47 48

By signing below, Seller accepts Buyer's approved Multiple Counter-Proposal. The terms of this Multiple Counter-Proposal shall be binding on Seller and Buyer if Seller delivers a copy of the accepted Multiple Counter-Proposal to Buyer in any manner authorized in the Offer to Purchase on or before the deadline stated at line 33. NOTE: Seller should not sign below if there is an existing accepted offer unless this Multiple Counter-Proposal provides for a secondary offer.

49 (x) 50 Seller's Signature 51 52 53

Date

The accepted Multiple Counter-Proposal was presented to Seller by Licensee and Firm

(x)

Seller's Signature

Date

on

Date

Wisconsin REALTORS Association 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax: Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

, at

a.m./p.m. Untitled

275

REAL ESTATE SALES

Wisconsin REALTORS Association

Approved by the Wisconsin Real Estate Examining Board 7-1-16 (Mandatory Use Date)

WB-42 AMENDMENT TO LISTING CONTRACT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

It is agreed that the Listing Contract dated property known as (Street Address/Description)

, between the undersigned, for sale/rental of the in the

of , Wisconsin is amended as follows: The list price is changed from $ to $ . The expiration date of the contract is changed from midnight , . to midnight , The following items are (added to)(deleted from) STRIKE ONE the list of property to be included in the list price: , County of

. Other:

34

ALL OTHER TERMS OF THIS CONTRACT AND ANY PRIOR AMENDMENTS REMAIN UNCHANGED.

35 36 Firm Name 37 38 (x) 39 By Agent for Firm 40 Print name

Date

(x) Seller's/Owner's Signature Print name

Date

(x) Seller's/Owner's Signature Print name

Date

41 CAUTION: This Listing belongs to the Firm. Agents for Firm do not have the authority to enter into a mutual 42 agreement to terminate a listing contract, amend the commission amount or shorten the term of a listing 43 contract, without the written consent of the Agent(s)’ supervising broker. 44 This written consent may be obtained with the supervising broker’s signature below or a separate consent. 45 (x) 46 Supervising Broker’s Signature

Date

Print name

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

276

Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

forms appendix www.zipLogix.com

FORMS APPENDIX

Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-40 AMENDMENT TO OFFER TO PURCHASE CAUTION: Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. Use a WB-41 Notice if a Party is giving a Notice which does not require the other Party’s agreement.

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Buyer and Seller agree to amend the Offer dated ___________________, and accepted _____________________, for the purchase and sale of real estate at ________________________________________________________________ _____________________________________________________________________________, Wisconsin as follows: Closing date is changed from ______________________, ______, to _______________________________, ______. Purchase price is changed from $________________________________ to $________________________________. Other: _________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ The attached ______________________________________________________ is/are made part of this Amendment. ALL OTHER TERMS OF THE OFFER TO PURCHASE AND ANY PRIOR AMENDMENTS REMAIN THE SAME. This Amendment is binding upon Seller and Buyer only if a copy of the accepted Amendment is delivered to the Party offering the Amendment on or before _____________________________________ (Time is of the Essence). Delivery of the accepted Amendment may be made in any manner specified in the Offer to Purchase, unless otherwise provided in this Amendment. NOTE: The Party offering this Amendment may withdraw the offered Amendment prior to acceptance and delivery as provided at lines 30-33.

36 37

This Amendment was drafted by ________________________________________________on _________________ Licensee and Firm  Date 

38 39

This Amendment was presented by ______________________________________________on _________________ Licensee and Firm  Date 

40 41 42

(x) ___________________________________________ (x) _____________________________________________ Buyer’s Signature  Date  Seller’s Signature Date  Print name  Print name 

43 44 45

(x) ___________________________________________ (x) ______________________________________________ Buyer’s Signature  Date  Seller’s Signature  Date  Print name  Print name 

46

This Amendment was rejected _______________________ __________ __________________________ _________ Party Initials▲ Date▲ Party Initials▲ Date▲

1 2 3 4 5

47

277

REAL ESTATE SALES

Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-41 NOTICE RELATING TO OFFER TO PURCHASE CAUTION: Use a WB-41 Notice if a Party is giving a Notice which does not require the other Party's agreement. Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

This Notice by (Seller)(Buyer) STRIKE ONE relates to the Offer to Purchase dated _____________________, _______ and accepted __________________, ______, for the purchase and sale of real estate at ________________________ _____________________________________________________________________________________, Wisconsin. Notice is given that (Attach supporting documents, if required): ____________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ The attached ___________________________________________________________ is/are made part of this Notice.

28 29

This Notice was drafted by _________________________________________________ on _____________________ Licensee and Firm for Initiating Party Date 

30 31

CAUTION: Once delivered, a Notice cannot be withdrawn by the Initiating Party without the written consent of the Receiving Party.

32 (x) ________________________________________________ (x) ___________________________________________________ 33 Signature of Party Initiating Notice  Date  Signature of Party Initiating Notice  Date  34 Print name ► Print name ►

37

This Notice was delivered by ________________________________________________ on ___________________ Licensee and Firm for Initiating Party Date  at ____________a.m./p.m. STRIKE ONE using an authorized method of delivery.

38

ACTUAL RECEIPT If the Offer requires Actual Receipt the following may be completed

39 40

This Notice was sent to the Receiving Party by ___________________________________________ on ___________ Licensee and Firm for Receiving Party Date at _____________a.m./p.m. STRIKE ONE

35 36

41 42 43 44

278

Receiving Party acknowledges Actual Receipt of this Notice occurred on ___________________ at ______________ a.m./p.m. STRIKE ONE (x) ________________________________________________________________________ Initials of Receiving Party 

FORMS APPENDIX

Approved by the Wisconsin Real Estate Examining Board 10-1-15 (Optional Use Date) 1-1-16 (Mandatory Use Date)

WB-45 Cancellation Agreement & Mutual Release

3 4 5

The undersigned Parties agree that the ____________________________________________________________ insert type of contract, e.g., offer to purchase, lease, option, etc. (Contract) dated _______________________, for the property located at ___________________________________________________________________________, in the ______________________of_______________________, State of Wisconsin, be canceled and the Parties hereby release all of their right, title, and interest in and to the Contract, and any and all claims arising out of the transaction.

6 7

The Parties hereby release the broker(s) from any and all liability for disbursing the trust funds as directed and hereby authorize and direct the broker(s) to disburse the trust funds held on behalf of the Parties as follows:

8

$ ________________________ shall be disbursed to __________________________________________________ at

9

the following address _____________________________________________________________________________,

10

$ ________________________ shall be disbursed to __________________________________________________ at

11

the following address ____________________________________________________________________________.

12 13 14 15

This Cancellation Agreement and Mutual Release (CAMR) shall be effective only if all Parties to the Contract have signed an identical copy of this CAMR (including signatures on separate but identical copies of the CAMR), and if the fully-executed CAMR has been delivered to the Party initiating the CAMR on or before ____________________ __________________________________________. Delivery may be made in any manner authorized in the Contract.

16 17

NOTE: The Party initiating this CAMR may withdraw the CAMR prior to acceptance and delivery as provided at lines12-15.

18 19

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

20 21

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

22 23

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

24 25

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

26 27

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

28 29

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

30 31

(X) ______________________________________________________________________ _____________________ Party's Signature  Print Name Here • Date 

1 2

279

REAL ESTATE SALES

Approved by the Wisconsin Real Estate Examining Board 10-1-12 (Optional Use Date) 01-1-13 (Mandatory Use Date)

Page 1 of 7, WB-24

WB-24 OPTION TO PURCHASE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61

LICENSEE DRAFTING THIS OPTION ON _______________________________________________________ [DATE] IS (AGENT OF BUYER) (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE The Seller (Optionor), _____________________________________________________________________________________________, hereby grants to the Buyer (Optionee), __________________________________________________________________________________________________________, an option to purchase (Option) the Property known as [Street Address] ____________________________________________________________________ ______________________________________________________________________________________ in the ________________________________ of _______________________________________________ , County of ______________________________________ , Wisconsin, on the following terms: DEADLINE FOR GRANT OF OPTION This Option is void unless a copy of the Option, or separate but identical copies, is/are signed by all Sellers and delivered to Buyer on or before _____________________________________________________________ (Time is of the Essence). OPTION TERMS ■ INITIAL OPTION TERM: A nonrefundable option fee of $_________________________ will be paid by Buyer to Seller within ______________ days of the later of: (i) the granting of this Option, or (ii) the deadline for execution of a lease if line 141 of this Option is checked. This Option may only be exercised if Buyer delivers written notice to Seller no later than midnight _____________________________________________ unless extended below. ■ EXTENDED OPTION TERM: The Deadline to exercise this Option shall be extended until midnight ___________________________________, upon payment of $_______________________________ to Seller on or before ____________________________________________________, as an option extension fee which shall not be refundable. ■ EXERCISE: To exercise this Option, Buyer must sign and deliver (i) the notice at lines 355-361, or (ii) any other written notice which states that Buyer exercises this Option. If the Option is exercised, $_________________________ of the option fee and $_________________________ of the option extension fee, if any, shall be a credit against the purchase price at closing. CAUTION: If the option fees are to be paid into listing broker’s trust account or to a third party, specify in additional provisions at lines 256-268 or 326-330 or in a separate agreement attached per line 325. TERMS OF PURCHASE If this Option is exercised per the terms of this Option, the following shall be the terms of purchase: ■ PURCHASE PRICE:____________________________________________________________________________________________________ Dollars ($ _______________________________________________________ ) will be paid in cash or equivalent at closing unless otherwise provided below. ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Option not excluded at lines 28-29, and the following additional items: __________________________________________________________________ _________________________________________________________________________________________________________________________. ■ NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________________________ _________________________________________________________________________________________________________________________. CAUTION: Identify trade fixtures owned by tenant, if applicable, and Fixtures that are on the Property (see lines 75-82) to be excluded by Seller or which are rented and will continue to be owned by the lessor. NOTE: The terms of this Option, not the listing contract or marketing materials, determine what items are included/excluded. OPTIONAL PROVISIONS TERMS OF THIS OPTION THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS OPTION ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OPTION IF MARKED “N/A” OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Option, delivery of documents and written notices to a party shall be effective only when accomplished by one of the methods specified at lines 37-54. (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 38 or 39. Seller's recipient for delivery (optional): ________________________________________________________________________________________ Buyer's recipient for delivery (optional): ________________________________________________________________________________________ (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: (___________) _______________________________________ Buyer: (___________) _______________________________________ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. Delivery address for Seller: _________________________________________________________________________________________________ Delivery address for Buyer: _________________________________________________________________________________________________ (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address for Seller (optional): _______________________________________________________________________________________ E-Mail address for Buyer (optional): _______________________________________________________________________________________ TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) payment of option fees; (2) payment of extension fees; (3) Seller’s grant of this Option; (4) Buyer’s exercise of this Option; (5) occupancy; (6) date of closing; STRIKE AS APPLICABLE and all other dates and Deadlines in this Option except: ____________________________________________________________________________. If “Time is of the Essence” applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers.

280

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FORMS APPENDIX

Page 2 of 7, WB-24

62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111

DEFINITIONS  ACTUAL RECEIPT
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from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number 
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"  and by counting 24 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day.  DEFECT: &  '


 

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 y impair the health or safety of future occupants of the Property; or that if not repaired, removed or replaced would significantly shorten or adversely affect the expected normal life of the premises or adversely affect the use of the Property.  FIXTURE

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  to or so closely associated with land or improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accessories; in-ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent foundations and docks/piers on permanent foundations. A "Fixture" does not include trade fixtures owned by tenants of the Property. CAUTION: Exclude any Fixtures to be retained by Seller or which are not owned by Seller, such as rented fixtures (e.g., water softener or other water conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 28-29.  PROPERTY: 
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5-7. PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room dimensions, or total acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless verified by survey or other means. CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building or room dimensions, if material.
 WALK-THROUGHS Within 3 days of the earlier of: (



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this Option; and again within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and tear and changes approved by Buyer, and that any Defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. PROPERTY DAMAGE BETWEEN EXERCISE OF OPTION AND CLOSING Seller shall maintain the Property until the earlier of closing or occupancy of Buyer in materially the same condition as of the date Buyer exercises this Option, except for ordinary wear and tear. If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the purchase price, Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day this Option was exercised. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Option may be canceled at the option of Buyer. Should Buyer elect to carry out this Option despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Property. DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Option to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608) 2405830.

281

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REAL ESTATE SALES

Property Address: _________________________________________________________________________________________________________Page 3 of 7, WB-24 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169

282

CLOSING This transaction is to be closed (within ___________________________ days after the exercise of this Option) (no later than___________________________________) STRIKE AND COMPLETE AS APPLICABLE at the place selected by Seller, unless otherwise agreed by the Parties in writing. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and _________________ ___________________________________________________________________________________________________________________. CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) Current assessment times current mill rate (current means as of the date of closing) Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate (current means as of the date of closing) ___________________________________________________________________________________________________________. CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re- 


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bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. LEASED PROPERTY 
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d transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are _________________________________________________________________________________________________________________________ _______________________________________. Insert additional terms, if any, at lines 256-268 or 326-330 or attach as an addendum per line 325. LEASE-OPTION PROVISIONS [CHECK BOX ON LINE 140 OR 141, IF APPLICABLE]: Concurrent with the granting of the Option, Seller and Buyer have entered into a written lease for the Property. This Option is contingent upon Seller and Buyer, within ___________ days from the granting of this Option, entering into a written lease for the Property with minimum terms which shall include: term from _______________________ to _______________________ and an initial rent of $__________________ per month or this Option shall be null and void. [CHECK ANY OF THE FOLLOWING THAT APPLY, IF LINE 140 OR 141 WAS CHECKED ABOVE]: In the event that this Option is timely exercised, $__________________ of each monthly rent payment of $__________________ shall be applied to the purchase price while the balance shall be deemed solely rent that is retained by Seller. NOTE: Lenders may not recognize a credit for rent paid under a lease. Buyer may not exercise this Option unless Buyer is current with all rent. Any material breach of the lease by Buyer shall also constitute a default under this Option. PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that, as of the date Seller grants this Option, Seller has no notice or knowledge of any Defects (lines 72-74

 



"


 
__________________________ and, if applicable, Real Estate Condition Report dated ________________________________, and, if applicable, Vacant Land Disclosure Report dated _____________________, which was/were received by Buyer prior to Buyer signing this Option and which is/are made a part of this Option by reference COMPLETE DATES OR STRIKE AS APPLICABLE and ___________________________________________________________ ____________________________________________________________________________________________________________________ _______________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE DISCLOSURE OR CONDITION REPORT(S) CAUTION: If the Property includes 1-4 dwelling units, a Real Estate Condition Report containing the disclosures provided in Wis. Stat. § 709.03 may be required. If the Property does not include any buildings, a Vacant Land Disclosure Report containing the disclosures provided in Wis. Stat. § 709.033 may be required. Excluded from these requirements are sales of property with 1-4 dwelling units that has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries (for example, personal representatives who have never occupied the Property). The buyer may have certain rescission rights per Wis. Stat. § 709.05 if Seller does not furnish such report(s) within 10 days after Seller grants this Option or if a report disclosing Defects is furnished before expiration of those 10 days, but after the Option is submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding rescission rights. 


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Option, which is materially inconsistent with the above representations. For purposes of this provision (lines 150-156), Defect does not include structural, mechanical or other conditions of which the Buyer has actual knowledge or written notice or which Buyer discovers prior to the exercise of this Option. ZONING Seller represents that the property is zoned _____________________________________________________________________________.

FORMS APPENDIX

Page 4 of 7, WB-24

OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Option at lines 256171 268 or 326-330 or in an addendum attached per line 325. At time of Buyer's occupancy, Property shall be in broom swept condition and free of all 172 debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. 173 Occupancy shall be given subject to tenant's rights, if any. 174 CAUTION: Consider an agreement which addresses responsibility for clearing the Property of personal property and debris, if applicable. 175 RENTAL WEATHERIZATION Unless otherwise agreed, Buyer shall be responsible for compliance with Rental Weatherization Standards (Wis. 176 Admin. Code Ch. SPS 367), if applicable. 177 DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Option. A 178 material failure to perform any obligation under this Option is a default which may subject the defaulting party to liability for damages or other legal 179 remedies. 180 If Buyer defaults, Seller may: 181 (1) sue for specific performance if Buyer has exercised this Option; or 182 (2) terminate the Option and may sue for actual damages. 183 If Seller defaults, Buyer may: 184 (1) sue for specific performance; or 185 (2) terminate the Option and may sue for actual damages. 186 In addition, the Parties may seek any other remedies available in law or equity. 187 The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the 188 courts. If either Party defaults, the Parties may renegotiate the Option or seek nonjudicial dispute resolution instead of the remedies outlined 189 above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration 190 agreement. 191 NOTE: IF ACCEPTED, THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS 192 DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OPTION BUT ARE 193 PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OPTION OR HOW TITLE 194 SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. 195 ENTIRE CONTRACT This Option, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the 196 transaction. All prior negotiations and discussions have been merged into this Option. This agreement binds and inures to the benefit of the 197 Parties to this Option and their successors in interest. 198 BUYER DUE DILIGENCE Prior to the granting or exercising of this Option, Buyer may wish to perform certain authorized inspections, 199 investigations and testing of the Property. Buyer shall provide for any specific inspections, investigations or tests Buyer intends to perform as part 200 
 

 
 


256-268, 314-321, or 326-330 or attach as an addendum per line 325. In addition, Buyer may need to obtain 201 and review documents relevant to financing approval, appraisals, or perform general due diligence activities for the transaction, including but not 202 limited to: business records, condominium documents, maps or other information, municipal and zoning ordinances, recorded building and use 203 restrictions, covenants and easements of record, as they may prohibit or restrict certain uses and improvements for the Property. Buyer may also 204 need to obtain or verify certain permits, zoning variances, other governmental or private approvals, environmental audits and subsoil tests, 205 required road improvements, utility hook-up and installation costs, or other development related costs and fees, in order to fully determine the 206 feasibility of any proposed or planned development of the Property. Seller agrees to cooperate with Buyer as necessary to complete any due 207 diligence items or any authorized investigations, testing and inspections as provided for in this Option, without cost to Seller, unless otherwise 208 agreed by the Parties in writing. 170

283

Ply 1,2,3 face: black (8.5 x 12.25)

177695 WB-24 A & B_Layout 1 11/2/12 7:06 AM Page 5

REAL ESTATE SALES WB-24-B

DISTRIBUTED BY WISCONSIN REALTORS® ASSOCIATION

Property Address: _________________________________________________________________________________________________________Page 5 of 7, WB-24 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268

284

RECORDING OF OPTION Buyer (may) (may not) STRIKE ONE ""
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CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (or condominium deed if Property is a condominium unit, t 







 








conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and &$#
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gations to give merchantable title to Buyer. - SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date this Option is exercised shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement if area assessments, property owners association assessments, special charges for current  
 








 



-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). ADDITIONAL PROVISIONS ___________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________

FORMS APPENDIX

Page 6 of 7, WB-24

269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313

CONDOMINIUM UNITS CAUTION: If this Option involves a condominium unit, Buyer should obtain and review the condominium disclosure documents before entering into this Option. See lines (198-208) If the Property is a residential condominium unit, Seller must comply with the following: 4 CONDOMINIUM DISCLOSURE MATERIALS: !!'
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of the documents. NOTE: BUYER SHOULD READ ALL DOCUMENTS CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE DOCUMENTS BUT ARE PROHIBITED BY LAW FROM GIVING LEGAL ADVICE OR OPINIONS. 4 ADDITIONAL CONDOMINIUM ISSUES: In addition to the disclosure materials required by Wis. Stat. § 703.33, Buyer may wish to consider reviewing other condominium materials as may be available, such as copies of: )
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OPTION FEES NOT A DEPOSIT: The Parties agree that if this Option is for a residential condominium unit, the option fee and any option extension fee are not deposits subject to return under Wis. Stat. § 703.33(4)(c). INSPECTIONS AND TESTING *.'
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285

177695 WB-24 A & B_Layout 1 11/2/12 7:06 AM Page 7

Ply 4,5,6 face: black (8.5 x 12.25)

REAL ESTATE SALES

Property Address: _________________________________________________________________________________________________________Page 7 of 7, WB-24

334

AUTHORIZATION FOR APPRAISAL, INSPECTIONS AND TESTS Buyer is authorized to have the Property appraised by a Wisconsin licensed or certified appraiser and to conduct the following inspections and tests (see lines 304-313) 

 
 


. Any inspection(s) and test(s) shall be performed by a qualified independent inspector or expert, or an independent qualified third party. Inspections and testing shall be conducted pursuant to government or industry protocols and standards, as applicable. List inspections (e.g., home, roof, foundation, septic) here: ______________________________________________________________________________ ____________________________________________________________________________________________________________________________ List tests (e.g., radon, lead-based paint, well water) here: _______________________________________________________________________________ ____________________________________________________________________________________________________________________________ Describe additional inspections and tests, if any, at lines 256-263 or 326-330 or attach as an addendum per line 325. NOTE: Any testing authorizations should specify the areas of the Property to be tested, the purpose of the test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other material terms. ADDENDA: The attached _________________________________________________________________ is/are made part of this Option. ADDITIONAL PROVISIONS ___________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ IF GRANTED, THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS OPTION AND ALL ATTACHMENTS CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OPTION BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OPTION OR HOW TITLE SHOULD BE TAKEN AT CLOSING IF THE OPTION IS EXERCISED. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED.

335

This Option was drafted by [Licensee and Firm] _____________________________________________________________________________

336

_________________________________________________ on ______________________________________________________________.

337

Buyer Entity Name (if any): _____________________________________________________________________________________________

314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333

338 339 340 341

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344

SELLER GRANTS THIS OPTION. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OPTION SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OPTION.

345

Seller Entity Name (if any): _____________________________________________________________________________________________

342 343

346 347

(x) _________________________________________________________________________________________________________________

 
 
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(x) _________________________________________________________________________________________________________________

 
 
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350

This Option was presented to Seller by [Licensee and Firm] ____________________________________________________________________

351

_____________________________________ on __________________________________________ at _____________________ a.m./p.m.

348

352 353 354

This Option is rejected _______________________ ______________ This Option is countered _______________________ _______________ Seller Initials !




Date !
























































Seller Initials !


Date ! NOTE: Parties wishing to counter this Option should draft a new Option (WB-24) or draft a Counter-Offer (WB-44) to reference this Option.

356

NOTICE OF EXERCISE OF OPTION By signing below and delivering this notice (see lines 35-54) to Seller, Buyer hereby exercises this Option to Purchase.

357

Buyer Entity Name (if any): ______________________________________________________________________________________________

358

(x)__________________________________________________________________________________________________________________

359

 
 
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355

360 361

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FORMS APPENDIX

Approved by the Wisconsin Department of Regulation and Licensing 4-1-01 (Optional Use Date) 12-1-01 (Mandatory Use Date)

WB-25 BILL OF SALE

2

Seller conveys to (Buyer), for a good and valuable consideration, all of Seller's interest in the personal property identified in the schedule at lines 3 to 25 and in the addenda per line 26.

3

PERSONAL PROPERTY SCHEDULE

1

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

ADDENDA

The attached

is/are made part of this Bill of Sale.

Seller hereby warrants and represents that Seller owns said personal property free and clear of all liens and encumbrances, that Seller has good right to sell the same and Seller will warrant and defend the same against the lawful claims and demands of all persons, except:

32 33

Note: The above warranty applies only to title, if there are any other warranties or representations as to other characteristics of the personal property, a separate agreement must be drafted.

34

This Bill of Sale was drafted on

[date] by [Licensee and firm] .

35

36

(X)

37 38

43 Phone:

Date

Seller's Signature

Print Name Here:

Date

Seller's Signature

Print Name Here:

Date

Seller's Signature

Print Name Here:

Date

(X)

41 42

Print Name Here:

(X)

39 40

Seller's Signature

(X)

Fax: Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipform.com

287

REAL ESTATE SALES

Wisconsin REALTORS Association WISCONSIN REALTORS® ASSOCIATION

Page 1 of 2

4801 Forest Run Road Madison, Wisconsin 53704

REAL ESTATE INDEPENDENT CONTRACTOR AGREEMENT 1 THIS AGREEMENT is entered into this

day of

, , by and , a real estate broker licensed under the laws of the State of Wisconsin , who holds a current license as 3 ("Broker"), and a real estate (broker) (salesperson) STRIKE ONE in Wisconsin ("Sales Agent"), to establish and document the affiliation of Sales 4 Agent as an independent contractor real estate agent with Broker and to set the terms and conditions of this affiliation. 5 2 between

INDEPENDENT CONTRACTOR REAL ESTATE SALES AGENT: Broker hereby retains Sales Agent as an independent

6

7 contractor real estate agent to serve as a salesperson in the real estate brokerage business conducted by Broker under the business 8 name of 9 (City/Village/Town) of

in the , Wisconsin.

EXCLUSIVE AGREEMENT: Sales Agent hereby agrees to serve as a salesperson for Broker in the capacity of an independent

10

11 contractor real estate agent. Except as may be specifically agreed in writing and subject to the provisions of applicable laws and 12 regulations, Sales Agent shall perform services as a real estate salesperson and shall use Sales Agent's best efforts to undertake those 13 acts normally related to such services exclusively for Broker. Sales Agent agrees to perform all services in a manner which increases 14 the good will and reputation of Broker. Sales Agent shall not accept compensation for services as a real estate agent from anyone 15 other than Broker.

REAL ESTATE SERVICES: Services as a real estate salesperson under this Agreement shall include: the solicitation, drafting and

16

17 acceptance of agency contracts on behalf of Broker for the purchase, sale or rental of interests in real estate, business opportunities or 18 time shares; the negotiation, drafting, presentation and closing of contracts for the purchase, sale or rental of interests in real estate, 19 business opportunities or time shares; and all acts normally related to the above, including without limitation advertising, marketing, 20 office management and training.

26 27

COMPLIANCE WITH LAW AND REALTOR ® CODE OF ETHICS: In connection with the performance of services hereunder, Sales Agent agrees to abide by all applicable laws, regulations and ordinances, to perform these services in a manner consistent with policies established by Broker to promote their common economic and professional interest and avoid shared liabilities, to maintain and expand (his/her) expertise in the field of real estate, to become and remain a member of the Board of REALTORS ® , the Wisconsin REALTORS® Association and the National Association of REALTORS ® or reimburse Broker for the increased dues paid by Broker arising out of Sales Agent's affiliation with Broker, and to competently perform all services provided under this Agreement.

28

INDEPENDENT CONTRACTOR/EMPLOYEE STATUS: Sales Agent will not be treated as an employee for state or federal income

21 22 23 24 25

29 tax purposes and both parties agree to make all tax reports and returns in a manner consistent with Sales Agent's status as an 30 independent contractor. Unless Sales Agent receives compensation other than commission from Broker, Sales Agent shall not be 31 considered an employee for unemployment tax purposes. 32

TERMINATION: Either party may terminate this Agreement at any time without cause by delivery of a written notice to the other

33 party setting a termination date not less than two (2) weeks after the date of delivery. Broker may, in its discretion, limit Sales Agent's 34 scope of activities and authority hereunder during the period between delivery of the termination notice and the termination date. If the 35 termination is based upon or concurrent with the loss of Sales Agent's real estate license, the termination shall be effective for all 36 purposes on the earlier of the stated termination date or the date the license terminates. 37

COMPENSATION: As compensation for the services performed under this Agreement, Broker shall pay Sales Agent exclusively

38 on the basis of production and output (commission) according to the attached Compensation Exhibit. Compensation payments shall 39 be due to Sales Agent within 48 hours after receipt by Broker of the commission on which they are based or performance of the task 40 for which they are made, provided payments may be deferred so long as there is a bona fide dispute over Sales Agent's entitlement to 41 them. Broker may revise the Compensation Exhibit from time to time, provided any revision shall not be effective until the end of the 42 third calendar day following actual receipt of it by Sales Agent. Broker may, in its discretion and on terms and conditions set in the 43 Compensation Exhibit, pay advances or draws to Sales Agent provided these are charged against amounts earned as calculated 44 pursuant to the Compensation Exhibit.

288

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

forms appendix

FORMS APPENDIX

Page 2 of 2

49 50

ADMINISTRATIVE SERVICES: In connection with the performance of services hereunder, Broker will provide Sales Agent with the following desk, telephone, secretarial and reception services, stationery, postage, business cards, signs, forms, CHECK AS APPLICABLE and broker supervision and support, all in accordance with Broker's standard business operations and practice. Broker (shall) (shall not) STRIKE ONE make available to Sales Agent on a cost-sharing basis established by Broker participation in any fringe benefit or special promotional program or other activities of the brokerage made available to Broker's staff generally. Note: Consult tax counsel regarding impact on independent contractor status.

51

COMPENSATION FOLLOWING TERMINATION: Prior to and subsequent to the termination of this Agreement, all agency

45 46 47 48

52 agreements solicited on behalf of Broker by Sales Agent shall remain the exclusive property of Broker. Broker shall owe Sales Agent 53 the compensation accrued through the termination date. For this purpose: the commission on all listings shall be deemed to have 54 accrued upon Broker's receipt of an offer on the property which eventually closes; the commission for sale of a property shall be 55 deemed to have accrued upon delivery to the seller of an offer on the property which eventually closes. Amounts payable as 56 compensation for work fully completed but not due before the termination date shall be paid as they become due. Amounts payable 57 as compensation for work not completed before the termination date shall be discounted as follows:

A) offer accepted and all contingencies removed, B) offer accepted with contingencies to be removed, C) offer received but not accepted, %.

58 59 60 61

%; %;

COSTS/ EXPENSES: Sales Agent shall pay (his/her) pro rata share of any costs incurred by Broker in collection of fees or

62 commissions in which Sales Agent shares. Broker shall not be liable for any expenses incurred by Sales Agent without Broker's prior 63 approval. This provision shall survive termination of this Agreement. 64

CONFIDENTIALITY/TRADE SECRETS: During the term of this Agreement and following termination, Sales Agent shall maintain

65 the confidentiality of information of all Clients, customers and Broker. Sales Agent shall not use or disclose any information which has 66 been provided to (him/her) by Broker as a trade secret and which has been treated and protected as such by Broker. 67

AUTHORITY FOR SIGNATURES: Sales Agent, in (his/her) capacity as an agent of Broker, is authorized to execute for and in the

68 name of Broker listing contracts and buyer agency/tenant representation agreements, extensions of the term of listing contracts and 69 buyer agency/tenant representation agreements, closing statements and receipts for earnest money. All other signatures by Sales 70 Agent on behalf of Broker shall be invalid unless approved in advance or ratified by Broker. Sales Agent may not execute any 71 document as agent on behalf of any party to a transaction without Broker's specific prior consent. 72

CLAIMS AGAINST SALES AGENT OR BROKER: Sales Agent shall report any actual or threatened claim against Broker or Sales

73 Agent relating to Sales Agent's brokerage practice on behalf of Broker, including claims for damages or arbitration, or asserted 74 violations of ethics or law, including license law. In the event of any such claim, Sales Agent will consult with Broker and comply with 75 Broker's directions in the matter. These duties survive termination of this Agreement. 76

USE OF FORMS: Sales Agent will use the standard language and forms provided by Broker for matters covered by them unless

77 Broker or Sales Agent's supervising broker has authorized variation from them. 78

RECORD KEEPING: Sales Agent shall make appropriate records on all transactions in which Sales Agent is involved and

79 maintain them in Broker's files. Sales Agent may make and retain copies of these records. 80

AUTOMOBILE INSURANCE: Sales Agent shall provide evidence of and maintain automobile liability insurance in an amount .

81 of at least $ 82

ADDITIONAL PROVISIONS: See attached addendum:

that are made a

83 part of this Agreement. 84

ENTIRE AGREEMENT: This Agreement and its Exhibits and addenda constitute the entire Agreement of the parties relating to

85 their brokerage activities. Except as provided herein, it may only be amended or modified by a writing executed by both parties. Both 86 parties waive any right they may have to seek or rely on oral amendment hereof.

Broker

87 88 By: (X) (Signature) 89 90 91

Print Name Here

(Date)

(X) (Sales Agent's Signature)

Print Name Here

(Date)

REALTORS ®

Copyright © 2016 by Wisconsin Association Drafted by: Attorney Richard J. Staff No representation is made as to the legal validity of any provision or the adequacy of any provision in any specific transaction or relationship.

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Story Problem

Story Problem Instructions: Read the transactional story problem and complete the blank forms that follow. An

answer key is provided at the end of the story problem. As you complete the forms, remember that there may be more than one correct way to complete the forms. As long as the necessary information is in the form and it clearly expresses the intent of the parties, it is correct. On July 23, Andrew and Beth Wallace sign a listing contract with Evelyn Ortega of Ortega Properties to list their Dane County home located at 110 Ginger Drive, Madison, WI 53715. They would like to list the property for $385,800 through December 15. The Wallaces would like to leave the stove and the refrigerator but want to take the deer-antler chandelier and built-in gun rack. The Wallaces would like to use email as a form of delivery for the listing contract using [email protected] for their email address and [email protected] for Evelyn Ortega’s email address. Evelyn negotiates a 6% commission and agrees to market the property in the MLS, local paper, and with open houses. Evelyn’s company offers 2.4% to cooperating firms within Evelyn’s MLS. The Wallaces do not want showings on Sundays after 7:00 p.m. and want a single agency relationship with Evelyn. The Wallaces complete a real estate condition report on July 23. On the report, they disclose that the property needs sewer repairs. An engineer estimated repairs at $980. They authroize Evelyn to disclose this information. They also disclose that their neighbors have an easement over the property to the well. The sellers are offering a one-year home warranty from Warranty Best as a buyer incentive. For offers, the Wallaces would like to use email as a form of delivery using Evelyn’s email address of [email protected]. The Wallaces designate Evelyn as their recipient for delivery. Her office is located at 452 Paper Mill Drive, Madison, WI 53704. Her phone number is 608-555-7890 and her fax number is 608-555-7891. On August 3, Evelyn drafts an offer for Margo Moore for $369,500. Margo includes $2,000 earnest money with her offer and will pay an additional $1,000 within five days of acceptance of her offer. Margo wants the stove but not the refrigerator, deer-antler chandelier, or built-in gun rack. Margo reviewed the Wallaces’ condition report dated July 23 and makes her offer contingent upon seller, at seller’s expense, providing buyer with a copy of an acceptable shared-well agreement no later than 10 days before closing. The shared-well agreement will be acceptable if it provides an equal allocation of all operation and maintenance expenses to each property sharing the well, limits use to residential purposes, and includes reasonable access to the well for necessary maintenance and repairs. This contingency shall be deemed satisfied unless buyer, within five days of receipt of the agreement, delivers to seller a written notice listing the defects in the agreement to which buyer objects. Upon receipt of the notice, seller shall then have ten days to cure the defects and the time for closing shall be extended accordingly. If the agreement has not already been recorded, it shall be provided in recordable form, with recording fees to be seller’s expense at closing. Margo’s offer is also contingent on a home inspection. She will does not want the seller to have a right to cure. Her deadline for issuing a notice of defects based on the inspection contingency is 15 days from acceptance. Margo would like to purchase the property with a $250,000 conventional mortgage at a 7% interest rate for 30 years. She does not want the discount points and the origination fees to exceed 1% of the 291

REAL ESTATE SALES

loan. Margo will provide the written loan commitment to the seller within 45 days of acceptance. Margo also includes an appraisal contingency with a deadline of 45 days from acceptance. Margo selects the use of last year’s tax bill for the tax proration formula and she would like to reprorate taxes after closing. Margo wants binding acceptance by August 5. She wants delivery by personal or email. Her address is 1210 Hideaway Terrace, Spring Green, WI 53702 and her email address is margo@internet. com. Margo wants closing to occur on or before October 15. She wants the Wallaces to pay for title insurance with a gap endorsement and she will be responsible for repairing the sewer after closing. Evelyn presents the offer to Andrew and Beth on August 3 at 5:00 p.m. Andrew and Beth accept the offer on August 3. Margo is purchasing the property for her personal residence. It will be owner-occupied within 60 days of closing and is exempt from Wisconsin Rental Weatherization Standards.

292

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Approved by the Wisconsin Real Estate Examining Board 7-1-16 (Mandatory Use Date)

Wisconsin REALTORS Association Page 1 of 6, WB-1

WB-1 RESIDENTIAL LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: PROPERTY DESCRIPTION: Street address is: in the of , County of , Wisconsin. Insert additional description, if any, at lines 303-308 or attach as an addendum per lines 309-310. INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, and the following items:

. NOT INCLUDED IN LIST PRICE:

.

CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the lessor. (See lines 181-194). LIST PRICE: Dollars ($ ). MARKETING Seller authorizes and the Firm and its agents agree to use reasonable efforts to market the Property. Seller agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term of this Listing. The marketing may include: . The Firm and its agents may advertise the following special financing and incentives offered by Seller: . Seller has a duty to cooperate with the marketing efforts of the Firm and its agents. See lines 246-252 regarding the Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. Seller agrees that the Firm and its agents may market other properties during the term of this Listing. COMMISSION The Firm's commission shall be . EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: 1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property; 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the list price and on substantially the same terms set forth in this Listing and the current WB-11 Residential Offer to Purchase, even if Seller does not accept the buyer's offer. A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer’s obligations under the written offer. The Firm’s commission shall be earned if, during the term of the Listing, one seller of the Property sells, conveys, exchanges or options, as described above, an interest in all or any part of the Property to another owner, except by divorce judgment. DUE AND PAYABLE: Once earned, the Firm’s commission is due and payable in full at the earlier of closing or the date set for closing, even if the transaction does not close, unless otherwise agreed in writing. CALCULATION: A percentage commission shall be calculated based on the following, if earned above: • Under 1) or 2) the total consideration between the parties in the transaction. • Under 3) or 4) the list price if the entire Property is involved. • Under 3) if the exchange involves less than the entire Property or under 4) if the effective change in ownership or control involves less than the entire Property, the fair market value of the portion of the Property exchanged or for which there was an effective change in ownership or control. • Under 5) the total offered purchase price. NOTE: If a commission is earned for a portion of the Property it does not terminate the Listing as to any remaining Property. COMPENSATION TO OTHERS The Firm offers the following commission to cooperating firms: . (Exceptions if any): . BUYER FINANCIAL CAPABILITY The Firm and its agents are not responsible under Wisconsin statutes or regulations to qualify a buyer’s financial capability. If Seller wishes to confirm a buyer’s financial capability, Seller may negotiate inclusion of a contingency for financing, proof of funds, qualification from a lender, sale of buyer’s property, or other confirmation in any offer to purchase or contract.

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

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58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

DISPUTE RESOLUTION The parties understand that if there is a dispute about this Listing or an alleged breach, and the parties cannot resolve the dispute by mutual agreement, the parties may consider judicial resolution in court or may consider alternative dispute resolution. Alternative dispute resolution may include mediation and binding arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended that the parties add such in Additional Provisions or in an Addendum. FAIR HOUSING Seller and the Firm and its agents agree that they will not discriminate against any prospective buyer on account of race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, family status, status as a victim of domestic abuse, sexual assault, or stalking, or in any other unlawful manner. DISCLOSURE TO CLIENTS Under Wisconsin law, a brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe certain duties to all parties to a transaction: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the information is prohibited by law. (See lines 195-198.) (e) The duty to protect your confidentiality. Unless the law requires it, the firm and its agents will not disclose your confidential information or the confidential information of other parties. (See lines 135-150.) (f) The duty to safeguard trust funds and other property the firm or its agents holds. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

81 BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A FIRM, YOU ARE THE FIRM'S CLIENT. 82 A FIRM OWES ADDITIONAL DUTIES TO YOU AS A CLIENT OF THE FIRM: 83 (a) The firm or one of its agents will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the firm from this duty. 84 85 (b) The firm or one of its agents must provide you with all material facts affecting the transaction, not just Adverse Facts. 86 87 (c) The firm and its agents will fulfill the firm’s obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement. 88 89 (d) The firm and its agents will negotiate for you, unless you release them from this duty. 90 (e) The firm and its agents will not place their interests ahead of your interests. The firm and its agents will not, unless required by law, give information or advice to other parties who are not the firm’s clients, if giving the information or 91 advice is contrary to your interests. 92 93 If you become involved in a transaction in which another party is also the firm’s client (a "multiple representation 94 relationship"), different duties may apply. 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111

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MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a party in the same transaction. If you and the firm’s other clients in the transaction consent, the firm may provide services through designated agency, which is one type of multiple representation relationship. Designated agency means that different agents with the firm will negotiate on behalf of you and the other client or clients in the transaction, and the firm’s duties to you as a client will remain the same. Each agent will provide information, opinions, and advice to the client for whom the agent is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the firm’s other clients. An agent will not reveal any of your confidential information to another party unless required to do so by law. If a designated agency relationship is not authorized by you or other clients in the transaction you may still authorize or reject a different type of multiple representation relationship in which the firm may provide brokerage services to more than one client in a transaction but neither the firm nor any of its agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same agent may represent more than one client in a transaction. If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.

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Property Address:

112

CHECK ONLY ONE OF THE THREE BELOW:

113 114

The same firm may represent me and the other party as long as the same agent is not representing us both (multiple representation relationship with designated agency).

115 116 117

The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved (multiple representation relationship without designated agency).

118 119

The same firm cannot represent both me and the other party in the same transaction (I reject multiple representation relationships).

120 121 122 123 124

NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.

125 126 127 128 129

SUBAGENCY Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.

130 PLEASE REVIEW THIS INFORMATION CAREFULLY. An agent can answer your questions about brokerage 131 services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax 132 advisor, or home inspector. 133 This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language 134 summary of the duties owed to you under section 452.133 (2) of the Wisconsin statutes. 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150

CONFIDENTIALITY NOTICE TO CLIENTS: The Firm and its agents will keep confidential any information given to the Firm or its agents in confidence, or any information obtained by the Firm and its agents that a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to disclose particular information. The Firm and its agents shall continue to keep the information confidential after the Firm is no longer providing brokerage services to you. The following information is required to be disclosed by law: 1) Material Adverse Facts, as defined in section 452.01 (5g) of the Wisconsin statutes (see lines 195-198). 2) Any facts known by the Firm and its agents that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the Firm and its agents are aware of what specific information you consider confidential, you may list that information below (see lines 147-148). At a later time, you may also provide the Firm with other information you consider to be confidential. CONFIDENTIAL INFORMATION: . NON-CONFIDENTIAL INFORMATION (The following may be disclosed by the Firm and its agents): .

151 152 153 154 155 156 157 158

COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION The parties agree that the Firm and its agents will work and cooperate with other firms and agents in marketing the Property, including firms acting as subagents (other firms engaged by the Firm - see lines 125-129) and firms representing buyers. Cooperation includes providing access to the Property for showing purposes and presenting offers and other proposals from these firms to Seller. Note any firms with whom the Firm shall not cooperate, any firms or agents or buyers who shall not be allowed to attend showings, and the specific terms of offers which should not be submitted to Seller: . CAUTION: Limiting the Firm's cooperation with other firms may reduce the marketability of the Property.

159 160 161 162 163 164 165 166

EXCLUSIONS All persons who may acquire an interest in the Property who are Protected Buyers under a prior listing contract are excluded from this Listing to the extent of the prior firm's legal rights, unless otherwise agreed to in writing. Within seven days of the date of this Listing, Seller agrees to deliver to the Firm a written list of all such Protected Buyers. NOTE: If Seller fails to timely deliver this list to the Firm, Seller may be liable to the Firm for damages and costs. The following other buyers are excluded from this Listing until [INSERT DATE]. These other buyers are no longer excluded from this Listing after the specified date unless, on or before the specified date, Seller has either accepted a written offer from the buyer or sold the Property to the buyer. Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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167 DEFINITIONS 168 ADVERSE FACT: An "Adverse Fact" means any of the following: 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 170 1) Significantly and adversely affecting the value of the Property; 171 2) Significantly reducing the structural integrity of improvements to real estate; or 172 3) Presenting a significant health risk to occupants of the Property. 173 (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her 174 obligations under a contract or agreement made concerning the transaction. 175 DEADLINES – DAYS: Deadlines expressed as a number of "days" from an event are calculated by excluding the day the 176 event occurred and by counting subsequent calendar days. 177 DEFECT: “Defect” means a condition that would have a significant adverse effect on the value of the Property; that 178 would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or 179 replaced would significantly shorten or adversely affect the expected normal life of the premises. 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224

FIRM: “Firm” means a licensed sole proprietor broker or a licensed broker business entity. FIXTURES: A "Fixture" is an item of property which is physically attached to or so closely associated with land or buildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises, and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters, water softeners and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas and satellite dishes; audio/visual wall mounting brackets (but not the audio/visual equipment); garage door openers and remote controls; installed security systems; central vacuum systems and accessories; in-ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; in-ground pet containment systems (but not the collars); storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water treatment systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 12-14 and in the offer to purchase. MATERIAL ADVERSE FACT: A "Material Adverse Fact" means an Adverse Fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shall mean any person joined in interest with buyer, or otherwise acting on behalf of buyer, including but not limited to buyer's immediate family, agents, employees, directors, managers, members, officers, owners, partners, incorporators and organizers, as well as any and all corporations, partnerships, limited liability companies, trusts or other entities created or controlled by, affiliated with or owned by buyer, in whole or in part whether created before or after expiration of this Listing. PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5. PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the term of this Listing: 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential terms upon which the buyer might acquire an interest in the Property; or 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the individuals in the Listing; or, b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm or agents with whom the buyer negotiated and the date(s) of any individual showings or other negotiations. A Protected Buyer also includes any Person Acting on Behalf of Buyer joined in interest with or otherwise acting on behalf of a Protected Buyer, who acquires an interest in the Property during the extension of listing period as noted on lines 220-224. EXTENSION OF LISTING The Listing term is extended for a period of one year as to any Protected Buyer. Upon receipt of a written request from Seller or a firm that has listed the Property, the Firm agrees to promptly deliver to Seller a written list of those buyers known by the Firm and its agents to whom the extension period applies. Should this Listing be terminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271). Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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225 OCCUPANCY Unless otherwise provided, Seller agrees to give the buyer occupancy of the Property at time of closing 226 and to have the Property in broom swept condition and free of all debris and personal property except for personal 227 property belonging to current tenants, sold to the buyer or left with the buyer's consent. 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279

LEASED PROPERTY If Property is currently leased and lease(s) will extend beyond closing, Seller shall assign Seller's rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations) thereunder to buyer at closing. Seller acknowledges that Seller remains liable under the lease(s) unless released by tenants. CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the lease(s) unless released by tenants. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.doc.wi.gov or by telephone at (608)240-5830. REAL ESTATE CONDITION REPORT Seller agrees to complete the real estate condition report provided by the Firm to the best of Seller's knowledge. Seller agrees to amend the report should Seller learn of any Defect(s) after completion of the report but before acceptance of a buyer's offer to purchase. Seller authorizes the Firm and its agents to distribute the report to all interested parties and agents inquiring about the Property. Seller acknowledges that the Firm and its agents have a duty to disclose all Material Adverse Facts as required by law. SELLER REPRESENTATIONS REGARDING DEFECTS Seller represents to the Firm that as of the date of this Listing, Seller has no notice or knowledge of any Defects affecting the Property other than those noted on the real estate condition report. WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAY BE LIABLE FOR DAMAGES AND COSTS. SELLER COOPERATION WITH MARKETING EFFORTS Seller agrees to cooperate with the Firm in the Firm's marketing efforts and to provide the Firm with all records, documents and other material in Seller's possession or control which are required in connection with the sale. Seller authorizes the Firm and its agents to do those acts reasonably necessary to effect a sale and Seller agrees to cooperate fully with these efforts which may include use of a multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly refer all persons making inquiries concerning the Property to the Firm and notify the Firm in writing of any potential buyers with whom Seller negotiates or who view the Property with Seller during the term of this Listing. OPEN HOUSE AND SHOWING RESPONSIBILITIES Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an "individual showing" or an "open house." Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold the Firm and its agents harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during "individual showings" or "open houses" other than those caused by the negligence or intentional wrongdoing of the Firm or its agents. Seller acknowledges that individual showings and open houses may be conducted by licensees other than agents of the Firm, that appraisers and inspectors may conduct appraisals and inspections without being accompanied by agents of the Firm or other licensees, and that buyers or licensees may be present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in additional provisions at lines 303-308 or in an addendum per lines 309-310. TERMINATION OF LISTING Neither Seller nor the Firm has the legal right to unilaterally terminate this Listing absent a material breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the Firm. Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend the commission amount or shorten the term of this Listing, without the written consent of the agent(s)’ supervising broker. Seller and the Firm agree that any termination of this Listing by either party before the date stated on line 312 shall be effective by the Seller only if stated in writing and delivered to the Firm in accordance with lines 280-302 and effective by the Firm only if stated in writing by the supervising broker and delivered to Seller in accordance with lines 280-302. CAUTION: Early termination of this Listing may be a breach of contract, causing the terminating party to potentially be liable for damages. EARNEST MONEY If the Firm holds trust funds in connection with the transaction, they shall be retained by the Firm in the Firm's trust account. The Firm may refuse to hold earnest money or other trust funds. Should the Firm hold the earnest money, the Firm shall hold and disburse earnest money funds in accordance with Wis. Stat. Ch. 452 and Wis. Admin. Code Ch. REEB 18. If the transaction fails to close and the Seller requests and receives the earnest money as the total liquidated damages, then upon disbursement to Seller, the earnest money shall be paid first to reimburse the Firm for cash advances made by the Firm on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to the Firm as full commission in connection with said purchase transaction and the balance shall belong to Seller. This payment to the Firm shall not terminate this Listing.

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Property Address:

280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313

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DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Listing, delivery of documents and written notices to a party shall be effective only when accomplished by one of the methods specified at lines 283-302. (1) Personal Delivery: giving the document or written notice personally to the party, or the party's recipient for delivery if named at line 285 or 286. Seller's recipient for delivery (optional): Firm’s recipient for delivery (optional): (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: ( ) Firm: ( ) (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the party, or to the party's recipient for delivery if named at line 285 or 286, for delivery to the party's delivery address at line 295 or 296. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the party, or to the party's recipient for delivery if named at line 285 or 286, for delivery to the party's delivery address at line 295 or 296. Delivery address for Seller: Delivery address for Firm: (5) E-Mail: electronically transmitting the document or written notice to the party’s e-mail address, if given below at line 301 or 302. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically as required by federal law. E-Mail address for Seller: E-Mail address for Firm: ADDITIONAL PROVISIONS

ADDENDA The attached addenda TERM OF THE CONTRACT From the to the earlier of midnight of the conveyance of the entire Property.

is/are made part of this Listing. , , up , or the ,

day of day of

314 BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS LISTING CONTRACT AND 315 THAT HE/SHE HAS READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS 316 INCORPORATED INTO THE LISTING. 317 (x) 318 Seller's Signature

Print Name Here

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319 (x) 320 Seller's Signature

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321 (x) 322 Seller's Signature

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323 (x) 324 Seller's Signature

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325 Seller Entity Name (if any): 326

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327 (x) 328 Authorized Signature 329 (x) 330 Agent for Firm

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Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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Date forms appendix

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Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Page 1 of 9, WB-11

WB-11 RESIDENTIAL OFFER TO PURCHASE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

LICENSEE DRAFTING THIS OFFER ON ________________________________________ [DATE] IS (AGENT OF BUYER) (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE GENERAL PROVISIONS The Buyer, _____________________________________________________________________ _______________________________, offers to purchase the Property known as [Street Address] _____________________ ______________________________________________________________ in the _________________________________ of __________________________________, County of _____________________________ Wisconsin (insert additional description, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434), on the following terms: ■ PURCHASE PRICE: _________________________________________________________________________________ ____________________________________________________________ Dollars ($___________________________ ______). ■ EARNEST MONEY of $ ____________________accompanies this Offer and earnest money of $ ____________________ will be mailed, or commercially or personally delivered within ____________________ days of acceptance to listing broker or ________________________________________________________________________________________________ ______. ■ THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. ■ INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Offer not excluded at lines 17-18, and the following additional items: __________________________________ _________________________________________________________________________________________________________. ■ NOT INCLUDED IN PURCHASE PRICE: ___________________________________________________________________ _________________________________________________________________________________________________________. CAUTION: Identify Fixtures that are on the Property (see lines 185-193) to be excluded by Seller or which are rented and will continue to be owned by the lessor. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included/excluded. ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or before _______________________________________________________________. Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer. CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OFFER IF MARKED “N/A” OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 36-54. (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 38 or 39. Seller's recipient for delivery (optional): _______________________________________________________________________ Buyer's recipient for delivery (optional): _______________________________________________________________________ (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: (________) ________________________________ Buyer: (_________) _______________________________ ______ (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. Delivery address for Seller: ________________________________________________________________________________ ___ Delivery address for Buyer: ________________________________________________________________________________ ___ (5) E-Mail: electronically transmitting the document or written notice to the Party’s e-mail address, if given below at line 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address for Seller (optional): _______________________________________________________________________ E-Mail address for Buyer (optional): _______________________________________________________________________ PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers.

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Page 2 of 9, WB-11 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115

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OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at lines 165-172 or 435-442 or in an addendum attached per line 434. At time of Buyer's occupancy, Property shall be in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. DEFINITIONS ■ ACTUAL RECEIPT: “Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or written notice physically in the Party’s possession, regardless of the method of delivery. ■ CONDITIONS AFFECTING THE PROPERTY OR TRANSACTION: “Conditions Affecting the Property or Transaction” are defined to include: a. Defects in the roof. b. Defects in the electrical system. c. Defects in part of the plumbing system (including the water heater, water softener and swimming pool) that is included in the sale. d. Defects in the heating and air conditioning system (including the air filters and humidifiers). e. Defects in the well, including unsafe well water. f. Property is served by a joint well. g. Defects in the septic system or other sanitary disposal system. h. Underground or aboveground fuel storage tanks on or previously located on the Property. (If "yes", the owner, by law, may have to register the tanks with the Department of Commerce at P.O. Box 7970, Madison, Wisconsin, 53707, whether the tanks are in use or not. Regulations of the Department of Commerce may require the closure or removal of unused tanks.) i. “LP” tank on the Property (specify in the additional information whether the tank is owned or leased). j. Defects in the basement or foundation (including cracks, seepage and bulges). k. Property is located in a floodplain, wetland or shoreland zoning area. l. Defects in the structure of the Property. m. Defects in mechanical equipment included in the sale either as Fixtures or personal property. n. Boundary or lot line disputes, encroachments or encumbrances (including a joint driveway). o. Defect caused by unsafe concentrations of, or unsafe conditions relating to, radon, radium in water supplies, lead in paint, lead in soil, lead in water supplies or plumbing system, or other potentially hazardous or toxic substances on the Property. NOTE: Specific federal lead paint disclosure requirements must be complied with in the sale of most residential properties built before 1978. p. Presence of asbestos or asbestos-containing materials on the Property. q. Defect caused by unsafe concentrations of, unsafe conditions relating to, or the storage of, hazardous or toxic substances on neighboring properties. r. Current or previous termite, powder-post beetle or carpenter ant infestations or Defects caused by animal or other insect infestations. s. Defects in a wood burning stove or fireplace or Defects caused by a fire in a stove or fireplace or elsewhere on the Property. t. Remodeling affecting the Property's structure or mechanical systems or additions to Property during Seller’s ownership without required permits. u. Federal, state, or local regulations requiring repairs, alterations or corrections of an existing condition. v. Notice of property tax increases, other than normal annual increases, or pending property reassessment. w. Remodeling that may increase Property's assessed value. x. Proposed or pending special assessments. y. Property is located within a special purpose district, such as a drainage district, that has the authority to impose assessments against the real property located within the district. z. Proposed construction of a public project that may affect the use of the Property. aa. Subdivision homeowners' associations, common areas co-owned with others, zoning violations or nonconforming uses, rights-of-way, easements or another use of a part of the Property by non-owners, other than recorded utility easements. bb. Structure on the Property is designated as an historic building or part of the Property is in an historic district. cc. Any land division involving the Property for which required state or local permits had not been obtained. dd. Violation of state or local smoke and carbon monoxide detector laws. ee. High voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property. ff. The Property is subject to a mitigation plan required by Wisconsin Department of Natural Resources (DNR) rules related to county shoreland zoning ordinances that obligates the owner to establish or maintain certain measures related to shoreland conditions, enforceable by the county. gg. Other Defects affecting the Property. (Definitions Continued on page 4)

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Property Address: _________________________________________________________________________________________________________Page 3 of 9, WB-11 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172

CLOSING This transaction is to be closed no later than _______________________________________________________ ___________________________________ __ at the place selected by Seller, unless otherwise agreed by the Parties in writing. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and _________________________________________________________________________________. CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) Current assessment times current mill rate (current means as of the date of closing) Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate (current means as of the date of closing) _____________________________________________________________________________________________. CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re-prorate within 30 days of Buyer’s receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are _____________________________________________________________ _____________________. Insert additional terms, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434. RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from Wisconsin Rental Weatherization Standards (Wis. Admin. Code Ch. Comm 67). If not exempt, (Buyer) (Seller) STRIKE ONE (“Buyer” if neither is stricken) shall be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall provide a Certificate of Compliance at closing. REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to provide Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, personal representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The law provides: "§ 709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance of the contract of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of sale . . . by delivering a written notice of rescission to the owner or the owner's agent." Buyer may also have certain rescission rights if a Real Estate Condition Report disclosing defects is furnished before expiration of the 10 days, but after the Offer is submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding rescission rights. PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or knowledge of Conditions Affecting the Property or Transaction (lines 64-114) other than those identified in Seller's Real Estate Condition Report dated ____________________________________, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and ____________________________________________________________________________________________________ _________________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT _____ ADDITIONAL PROVISIONS/CONTINGENCIES _________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________

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DEFINITIONS CONTINUED FROM PAGE 2 ■ DEADLINES: “Deadlines” expressed as a number of “days” from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of “hours” from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day. ■ DEFECT: “Defect” means 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 affect the expected normal life of the premises. ■ FIXTURE: A “Fixture” is an item of property which is physically attached to or so closely associated with land or improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accessories; inground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 17-18. ■ PROPERTY: Unless otherwise stated, “Property” means the real estate described at lines 4-7. PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room dimensions, or total acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless verified by survey or other means. CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building or room dimensions, if material. BUYER’S PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and tear and changes approved by Buyer, and that any defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Property until the earlier of closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear. If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the selling price, Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Property.

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Property Address: _________________________________________________________________________________________________________Page 5 of 9, WB-11 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271

IF LINE 217 IS NOT MARKED OR IS MARKED N/A LINES 257-263 APPLY. FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written __________________ ______________________________________________________ [INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within _______ days of acceptance of this Offer. The financing selected shall be in an amount of not less than $ _____________________ for a term of not less than ______ years, amortized over not less than _____ years. Initial monthly payments of principal and interest shall not exceed $ _____________. Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and/or loan origination fee in an amount not to exceed ________% of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 228 or 229.  FIXED RATE FINANCING: The annual rate of interest shall not exceed _______%.  ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed _______%. The initial interest rate shall be fixed for _______ months, at which time the interest rate may be increased not more than ________% per year. The maximum interest rate during the mortgage term shall not exceed ________%. Monthly payments of principal and interest may be adjusted to reflect interest changes. If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 165-172 or 435-442 or in an addendum attached per line 434. ■ BUYER’S LOAN COMMITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to provide evidence of application promptly upon request of Seller. If Buyer qualifies for the loan described in this Offer or another loan acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline at line 219. Buyer and Seller agree that delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy Buyer’s financing contingency if, after review of the loan commitment, Buyer has directed, in writing, delivery of the loan commitment. Buyer’s written direction shall accompany the loan commitment. Delivery shall not satisfy this contingency if accompanied by a notice of unacceptability. CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. BUYER, BUYER’S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN COMMITMENT TO SELLER OR SELLER’S AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. ■ SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment; Seller may terminate this Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. ■ FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. ■ IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party in control of Buyer’s funds shall provide Seller with reasonable written verification that Buyer has, at the time of verification, sufficient funds to close. If such written verification is not provided, Seller has the right to terminate this Offer by delivering written notice to Buyer. Buyer may or may not obtain mortgage financing but does not need the protection of a financing contingency. Seller agrees to allow Buyer’s appraiser access to the Property for purposes of an appraisal. Buyer understands and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this Offer is subject to an appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency. APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer’s lender having the Property appraised at Buyer’s expense by a Wisconsin licensed or certified independent appraiser who issues an appraisal report dated subsequent to the date of this Offer indicating an appraised value for the Property equal to or greater than the agreed upon purchase price. This contingency shall be deemed satisfied unless Buyer, within _____________ days of acceptance, delivers to Seller a copy of the appraisal report which indicates that the appraised value is not equal to or greater than the agreed upon purchase price, accompanied by a written notice of termination. CAUTION: An appraisal ordered by Buyer’s lender may not be received until shortly before closing. Consider whether deadlines provide adequate time for performance.

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DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as 274 defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple 275 listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information 276 and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers 277 researching comparable sales, market conditions and listings, upon inquiry. 278 DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and 279 conditions of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the 280 defaulting party to liability for damages or other legal remedies. 281 If Buyer defaults, Seller may: 282 (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or 283 (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual 284 damages. 285 If Seller defaults, Buyer may: 286 (1) sue for specific performance; or 287 (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. 288 In addition, the Parties may seek any other remedies available in law or equity. 289 The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the 290 discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution 291 instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of 292 law those disputes covered by the arbitration agreement. 293 NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD 294 READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS 295 OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL 296 RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE 297 CONSULTED IF LEGAL ADVICE IS NEEDED. 298 ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller 299 regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds 300 and inures to the benefit of the Parties to this Offer and their successors in interest. 301 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons 302 registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at 303 http://www.widocoffenders.org or by telephone at (608) 240-5830. 272 273

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Property Address: _________________________________________________________________________________________________________Page 7 of 9, WB-11 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359

CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's property located at _____________________________________________, no later than ______________. If Seller accepts a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written waiver of the Closing of Buyer's Property Contingency and ______________________________________________________ _____________________________________________________________________________________________________ [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within ____ hours of Buyer's Actual Receipt of said notice, this Offer shall be null and void. SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. Buyer may declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller's notice that this Offer is primary. Buyer may not deliver notice of withdrawal earlier than _____ days after acceptance of this Offer. All other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this Offer except: _________________________________________________________________________________________ _________________________________________________________________________________________________ _____ ______________________________________________________________. If “Time is of the Essence” applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. TITLE EVIDENCE ■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (trustee’s deed if Seller is a trust, personal representative’s deed if Seller is an estate or other conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate Condition Report and in this Offer, general taxes levied in the year of closing and ___________________________________ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ _________________________________________________________________________________________________ _____ which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making improvements to Property or a use other than the current use. ■ TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer’s lender. ■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) STRIKE ONE (“Seller’s” if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy exclusions and exceptions, provided the title company will issue the endorsement. If a gap endorsement or equivalent gap coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 353-359). ■ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance commitment is delivered to Buyer's attorney or Buyer not less than 5 business days before closing, showing title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 326-335, subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. ■ TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to remove the objections, and the time for closing shall be extended as necessary for this purpose. In the event that Seller is unable to remove said objections, Buyer shall have 5 days from receipt of notice thereof, to deliver written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does not waive the objections, this Offer shall be null and void. Providing title evidence acceptable for closing does not extinguish Seller's obligations to give merchantable title to Buyer.

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Page 8 of 9, WB-11 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409

■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement if area assessments, property owners association assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. “Other expenses” are one-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). EARNEST MONEY ■ HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (Buyer's agent if Property is not listed or Seller's account if no broker is involved), until applied to the purchase price or otherwise disbursed as provided in the Offer. CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special disbursement agreement. ■ DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from payor's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. At closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest money shall be disbursed according to a written disbursement agreement signed by all Parties to this Offer. If said disbursement agreement has not been delivered to broker within 60 days after the date set for closing, broker may disburse the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) any other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed $250, prior to disbursement. ■ LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties in relation to this Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or Seller disagree with broker's proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith disbursement of earnest money in accordance with this Offer or applicable Department of Regulation and Licensing regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies are included as a part of this Offer. An “inspection” is defined as an observation of the Property which does not include an appraisal or testing of the Property, other than testing for leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, which are hereby authorized. A “test” is defined as the taking of samples of materials such as soils, water, air or building materials from the Property and the laboratory or other analysis of these materials. Seller agrees to allow Buyer’s inspectors, testers and appraisers reasonable access to the Property upon advance notice, if necessary to satisfy the contingencies in this Offer. Buyer and licensees may be present at all inspections and testing. Except as otherwise provided, Seller’s authorization for inspections does not authorize Buyer to conduct testing of the Property. NOTE: Any contingency authorizing testing should specify the areas of the Property to be tested, the purpose of the test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other material terms of the contingency. Buyer agrees to promptly restore the Property to its original condition after Buyer’s inspections and testing are completed unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources.

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Property Address: _________________________________________________________________________________________________________Page 9 of 9, WB-11

442

INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). This Offer is contingent upon a Wisconsin registered home inspector performing a home inspection of the Property which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party performing an inspection of _____________________________________________________________________________ _____________________________________________ (list any Property component(s) to be separately inspected, e.g., swimming pool, roof, foundation, chimney, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting from an authorized inspection, provided they occur prior to the deadline specified at line 421. Inspection(s) shall be performed by a qualified independent inspector or independent qualified third party. CAUTION: Buyer should provide sufficient time for the home inspection and/or any specialized inspection(s), as well as any follow-up inspection(s). This contingency shall be deemed satisfied unless Buyer, within ________ days of acceptance, delivers to Seller a copy of the written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. For the purposes of this contingency, Defects (see lines 182-184) do not include structural, mechanical or other conditions the nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. ■ RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE (“shall” if neither is stricken) have a right to cure the Defects. If Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects stating Seller’s election to cure Defects; (2) curing the Defects in a good and workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure. ADDENDA: The attached __________________________________________________ is/are made part of this Offer. ADDITIONAL PROVISIONS/CONTINGENCIES ____________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________

443

This Offer was drafted by [Licensee and Firm] _______________________________________________________________

444

_____________________________________________________________ on ____________________________________.

445

(x) _________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441

446

448

(x) _________________________________________________________________________________________________ Buyer’s Signature▲ Print Name Here► Date▲

449

EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 10 of the above Offer.

447

________________________________________________ Broker (By) _________________________________________ ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER 452 SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY 453 ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS 454 OFFER. 450

451 SELLER

455 456

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

458

(x) _________________________________________________________________________________________________ Seller’s Signature▲ Print Name Here► Date▲

459

This Offer was presented to Seller by [Licensee and Firm] _____________________________________________________

460

__________________________________________ on __________________________ at ________________ a.m./p.m.

461

This Offer is rejected _____________ _________ This Offer is countered [See attached counter] _____________ _________ Seller Initials▲ Date▲ Seller Initials▲ Date▲

457

462

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Wisconsin REALTORS Association

Addendum

to the Offer to Purchase

Addendum attached to and made part of the Offer to Purchase dated

made by the Buyer,

with respect to the Property at , Wisconsin.

(Buyer's Signature)

(Date)

(Seller's Signature)

(Date)

(Buyer's Signature)

(Date)

(Seller's Signature)

(Date)

Copyright 2000 by Wisconsin REALTORS® Association

Wisconsin REALTORS Association,4801 Forest Run Rd Ste 201 Madison,WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

308

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Approved by the Wisconsin Real Estate Examining Board 7-1-16 (Mandatory Use Date)

Wisconsin REALTORS Association Page 1 of 6, WB-1

WB-1 RESIDENTIAL LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

SELLER GIVES THE FIRM THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS: 110 Ginger Drive PROPERTY DESCRIPTION: Street address is: N/A City Madison Dane in the of , County of , Wisconsin. Insert additional description, if any, at lines 303-308 or attach as an addendum per lines 309-310. INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 12-14, and the following items: stove, refrigerator

.

NOT INCLUDED IN LIST PRICE: gun-rack, deer-antler chandelier

.

CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will continue to be owned by the lessor. (See lines 181-194). Three Hundred Eighty-Five Thousand, Eight Hundred LIST PRICE: Dollars ($ 385,800.00 ). MARKETING Seller authorizes and the Firm and its agents agree to use reasonable efforts to market the Property. Seller agrees that the Firm and its agents may market Seller’s personal property identified on lines 7-11 during the term of this Listing. The marketing may include: MLS, local paper, open houses . The Firm and its agents may advertise the following special financing and incentives offered by Seller: one-year home warranty from Warranty Best . Seller has a duty to cooperate with the marketing efforts of the Firm and its agents. See lines 246-252 regarding the Firm’s role as marketing agent and Seller’s duty to notify the Firm of any potential buyer known to Seller. Seller agrees that the Firm and its agents may market other properties during the term of this Listing. COMMISSION The Firm's commission shall be 6% . EARNED: Seller shall pay the Firm's commission, which shall be earned, if, during the term of this Listing: 1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property; 2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised; 3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property; 4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or 5) A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the list price and on substantially the same terms set forth in this Listing and the current WB-11 Residential Offer to Purchase, even if Seller does not accept the buyer's offer. A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer’s obligations under the written offer. The Firm’s commission shall be earned if, during the term of the Listing, one seller of the Property sells, conveys, exchanges or options, as described above, an interest in all or any part of the Property to another owner, except by divorce judgment. DUE AND PAYABLE: Once earned, the Firm’s commission is due and payable in full at the earlier of closing or the date set for closing, even if the transaction does not close, unless otherwise agreed in writing. CALCULATION: A percentage commission shall be calculated based on the following, if earned above: • Under 1) or 2) the total consideration between the parties in the transaction. • Under 3) or 4) the list price if the entire Property is involved. • Under 3) if the exchange involves less than the entire Property or under 4) if the effective change in ownership or control involves less than the entire Property, the fair market value of the portion of the Property exchanged or for which there was an effective change in ownership or control. • Under 5) the total offered purchase price. NOTE: If a commission is earned for a portion of the Property it does not terminate the Listing as to any remaining Property. COMPENSATION TO OTHERS The Firm offers the following commission to cooperating firms: 2.4% to MLS cooperating firms . (Exceptions if any): N/A . BUYER FINANCIAL CAPABILITY The Firm and its agents are not responsible under Wisconsin statutes or regulations to qualify a buyer’s financial capability. If Seller wishes to confirm a buyer’s financial capability, Seller may negotiate inclusion of a contingency for financing, proof of funds, qualification from a lender, sale of buyer’s property, or other confirmation in any offer to purchase or contract.

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

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Page 2 of 6, WB-1

58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

DISPUTE RESOLUTION The parties understand that if there is a dispute about this Listing or an alleged breach, and the parties cannot resolve the dispute by mutual agreement, the parties may consider judicial resolution in court or may consider alternative dispute resolution. Alternative dispute resolution may include mediation and binding arbitration. Should the parties desire to submit any potential dispute to alternative dispute resolution, it is recommended that the parties add such in Additional Provisions or in an Addendum. FAIR HOUSING Seller and the Firm and its agents agree that they will not discriminate against any prospective buyer on account of race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 111.32(13m), disability, religion, national origin, marital status, lawful source of income, age, ancestry, family status, status as a victim of domestic abuse, sexual assault, or stalking, or in any other unlawful manner. DISCLOSURE TO CLIENTS Under Wisconsin law, a brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe certain duties to all parties to a transaction: (a) The duty to provide brokerage services to you fairly and honestly. (b) The duty to exercise reasonable skill and care in providing brokerage services to you. (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law. (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the information is prohibited by law. (See lines 195-198.) (e) The duty to protect your confidentiality. Unless the law requires it, the firm and its agents will not disclose your confidential information or the confidential information of other parties. (See lines 135-150.) (f) The duty to safeguard trust funds and other property the firm or its agents holds. (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

81 BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A FIRM, YOU ARE THE FIRM'S CLIENT. 82 A FIRM OWES ADDITIONAL DUTIES TO YOU AS A CLIENT OF THE FIRM: 83 (a) The firm or one of its agents will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the firm from this duty. 84 85 (b) The firm or one of its agents must provide you with all material facts affecting the transaction, not just Adverse Facts. 86 87 (c) The firm and its agents will fulfill the firm’s obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement. 88 89 (d) The firm and its agents will negotiate for you, unless you release them from this duty. 90 (e) The firm and its agents will not place their interests ahead of your interests. The firm and its agents will not, unless required by law, give information or advice to other parties who are not the firm’s clients, if giving the information or 91 advice is contrary to your interests. 92 93 If you become involved in a transaction in which another party is also the firm’s client (a "multiple representation 94 relationship"), different duties may apply. 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111

310

MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a party in the same transaction. If you and the firm’s other clients in the transaction consent, the firm may provide services through designated agency, which is one type of multiple representation relationship. Designated agency means that different agents with the firm will negotiate on behalf of you and the other client or clients in the transaction, and the firm’s duties to you as a client will remain the same. Each agent will provide information, opinions, and advice to the client for whom the agent is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the firm’s other clients. An agent will not reveal any of your confidential information to another party unless required to do so by law. If a designated agency relationship is not authorized by you or other clients in the transaction you may still authorize or reject a different type of multiple representation relationship in which the firm may provide brokerage services to more than one client in a transaction but neither the firm nor any of its agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same agent may represent more than one client in a transaction. If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.

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Story Problem - Answer Key

Property Address: 110 Ginger Drive, ,

112

Page 3 of 6, WB-1

CHECK ONLY ONE OF THE THREE BELOW:

113 114

The same firm may represent me and the other party as long as the same agent is not representing us both (multiple representation relationship with designated agency).

115 116 117

The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved (multiple representation relationship without designated agency).

118 119

X

The same firm cannot represent both me and the other party in the same transaction (I reject multiple representation relationships).

120 121 122 123 124

NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.

125 126 127 128 129

SUBAGENCY Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.

130 PLEASE REVIEW THIS INFORMATION CAREFULLY. An agent can answer your questions about brokerage 131 services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax 132 advisor, or home inspector. 133 This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain language 134 summary of the duties owed to you under section 452.133 (2) of the Wisconsin statutes. 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150

CONFIDENTIALITY NOTICE TO CLIENTS: The Firm and its agents will keep confidential any information given to the Firm or its agents in confidence, or any information obtained by the Firm and its agents that a reasonable person would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to disclose particular information. The Firm and its agents shall continue to keep the information confidential after the Firm is no longer providing brokerage services to you. The following information is required to be disclosed by law: 1) Material Adverse Facts, as defined in section 452.01 (5g) of the Wisconsin statutes (see lines 195-198). 2) Any facts known by the Firm and its agents that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction. To ensure that the Firm and its agents are aware of what specific information you consider confidential, you may list that information below (see lines 147-148). At a later time, you may also provide the Firm with other information you consider to be confidential. CONFIDENTIAL INFORMATION: N/A . NON-CONFIDENTIAL INFORMATION (The following may be disclosed by the Firm and its agents): Sellers disclose . that property is in need of sewer repair, estimated costs of $980.

151 152 153 154 155 156 157 158

COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION The parties agree that the Firm and its agents will work and cooperate with other firms and agents in marketing the Property, including firms acting as subagents (other firms engaged by the Firm - see lines 125-129) and firms representing buyers. Cooperation includes providing access to the Property for showing purposes and presenting offers and other proposals from these firms to Seller. Note any firms with whom the Firm shall not cooperate, any firms or agents or buyers who shall not be allowed to attend showings, and the specific terms of offers which should not be submitted to Seller: N/A . CAUTION: Limiting the Firm's cooperation with other firms may reduce the marketability of the Property.

159 160 161 162 163 164 165 166

EXCLUSIONS All persons who may acquire an interest in the Property who are Protected Buyers under a prior listing contract are excluded from this Listing to the extent of the prior firm's legal rights, unless otherwise agreed to in writing. Within seven days of the date of this Listing, Seller agrees to deliver to the Firm a written list of all such Protected Buyers. NOTE: If Seller fails to timely deliver this list to the Firm, Seller may be liable to the Firm for damages and costs. The following other buyers N/A are excluded from this Listing until [INSERT DATE]. These other buyers are no longer excluded from this Listing after the specified date unless, on or before the specified date, Seller has either accepted a written offer from the buyer or sold the Property to the buyer. Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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167 DEFINITIONS 168 ADVERSE FACT: An "Adverse Fact" means any of the following: 169 (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 170 1) Significantly and adversely affecting the value of the Property; 171 2) Significantly reducing the structural integrity of improvements to real estate; or 172 3) Presenting a significant health risk to occupants of the Property. 173 (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her 174 obligations under a contract or agreement made concerning the transaction. 175 DEADLINES – DAYS: Deadlines expressed as a number of "days" from an event are calculated by excluding the day the 176 event occurred and by counting subsequent calendar days. 177 DEFECT: “Defect” means a condition that would have a significant adverse effect on the value of the Property; that 178 would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or 179 replaced would significantly shorten or adversely affect the expected normal life of the premises. 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224

FIRM: “Firm” means a licensed sole proprietor broker or a licensed broker business entity. FIXTURES: A "Fixture" is an item of property which is physically attached to or so closely associated with land or buildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises, and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters, water softeners and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas and satellite dishes; audio/visual wall mounting brackets (but not the audio/visual equipment); garage door openers and remote controls; installed security systems; central vacuum systems and accessories; in-ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; in-ground pet containment systems (but not the collars); storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water treatment systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 12-14 and in the offer to purchase. MATERIAL ADVERSE FACT: A "Material Adverse Fact" means an Adverse Fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. PERSON ACTING ON BEHALF OF BUYER: "Person Acting on Behalf of Buyer" shall mean any person joined in interest with buyer, or otherwise acting on behalf of buyer, including but not limited to buyer's immediate family, agents, employees, directors, managers, members, officers, owners, partners, incorporators and organizers, as well as any and all corporations, partnerships, limited liability companies, trusts or other entities created or controlled by, affiliated with or owned by buyer, in whole or in part whether created before or after expiration of this Listing. PROPERTY: Unless otherwise stated, “Property“, means all property included in the list price as described on lines 2-5. PROTECTED BUYER: Means a buyer who personally, or through any Person Acting on Behalf of Buyer, during the term of this Listing: 1) Delivers to Seller or the Firm or its agents a written offer to purchase, exchange or option on the Property; 2) Views the Property with Seller or negotiates directly with Seller by communicating with Seller regarding any potential terms upon which the buyer might acquire an interest in the Property; or 3) Attends an individual showing of the Property or communicates with agents of the Firm or cooperating firms regarding any potential terms upon which the buyer might acquire an interest in the Property, but only if the Firm or its agents deliver the buyer’s name to Seller, in writing, no later than three days after the earlier of expiration or termination (lines 263-271) of the Listing. The requirement in 3), to deliver the buyer’s name to Seller in writing, may be fulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by the identification of the individuals in the Listing; or, b) If a buyer has requested that the buyer’s identity remain confidential, by delivery of a written notice identifying the firm or agents with whom the buyer negotiated and the date(s) of any individual showings or other negotiations. A Protected Buyer also includes any Person Acting on Behalf of Buyer joined in interest with or otherwise acting on behalf of a Protected Buyer, who acquires an interest in the Property during the extension of listing period as noted on lines 220-224. EXTENSION OF LISTING The Listing term is extended for a period of one year as to any Protected Buyer. Upon receipt of a written request from Seller or a firm that has listed the Property, the Firm agrees to promptly deliver to Seller a written list of those buyers known by the Firm and its agents to whom the extension period applies. Should this Listing be terminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on the same terms, for one year after the Listing is terminated (lines 263-271). Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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Story Problem - Answer Key

Page 5 of 6, WB-1

225 OCCUPANCY Unless otherwise provided, Seller agrees to give the buyer occupancy of the Property at time of closing 226 and to have the Property in broom swept condition and free of all debris and personal property except for personal 227 property belonging to current tenants, sold to the buyer or left with the buyer's consent. 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279

LEASED PROPERTY If Property is currently leased and lease(s) will extend beyond closing, Seller shall assign Seller's rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations) thereunder to buyer at closing. Seller acknowledges that Seller remains liable under the lease(s) unless released by tenants. CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the lease(s) unless released by tenants. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.doc.wi.gov or by telephone at (608)240-5830. REAL ESTATE CONDITION REPORT Seller agrees to complete the real estate condition report provided by the Firm to the best of Seller's knowledge. Seller agrees to amend the report should Seller learn of any Defect(s) after completion of the report but before acceptance of a buyer's offer to purchase. Seller authorizes the Firm and its agents to distribute the report to all interested parties and agents inquiring about the Property. Seller acknowledges that the Firm and its agents have a duty to disclose all Material Adverse Facts as required by law. SELLER REPRESENTATIONS REGARDING DEFECTS Seller represents to the Firm that as of the date of this Listing, Seller has no notice or knowledge of any Defects affecting the Property other than those noted on the real estate condition report. WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAY BE LIABLE FOR DAMAGES AND COSTS. SELLER COOPERATION WITH MARKETING EFFORTS Seller agrees to cooperate with the Firm in the Firm's marketing efforts and to provide the Firm with all records, documents and other material in Seller's possession or control which are required in connection with the sale. Seller authorizes the Firm and its agents to do those acts reasonably necessary to effect a sale and Seller agrees to cooperate fully with these efforts which may include use of a multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptly refer all persons making inquiries concerning the Property to the Firm and notify the Firm in writing of any potential buyers with whom Seller negotiates or who view the Property with Seller during the term of this Listing. OPEN HOUSE AND SHOWING RESPONSIBILITIES Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an "individual showing" or an "open house." Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold the Firm and its agents harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during "individual showings" or "open houses" other than those caused by the negligence or intentional wrongdoing of the Firm or its agents. Seller acknowledges that individual showings and open houses may be conducted by licensees other than agents of the Firm, that appraisers and inspectors may conduct appraisals and inspections without being accompanied by agents of the Firm or other licensees, and that buyers or licensees may be present at all inspections and testing and may photograph or videotape Property unless otherwise provided for in additional provisions at lines 303-308 or in an addendum per lines 309-310. TERMINATION OF LISTING Neither Seller nor the Firm has the legal right to unilaterally terminate this Listing absent a material breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the Firm. Agents for the Firm do not have the authority to enter into a mutual agreement to terminate the Listing, amend the commission amount or shorten the term of this Listing, without the written consent of the agent(s)’ supervising broker. Seller and the Firm agree that any termination of this Listing by either party before the date stated on line 312 shall be effective by the Seller only if stated in writing and delivered to the Firm in accordance with lines 280-302 and effective by the Firm only if stated in writing by the supervising broker and delivered to Seller in accordance with lines 280-302. CAUTION: Early termination of this Listing may be a breach of contract, causing the terminating party to potentially be liable for damages. EARNEST MONEY If the Firm holds trust funds in connection with the transaction, they shall be retained by the Firm in the Firm's trust account. The Firm may refuse to hold earnest money or other trust funds. Should the Firm hold the earnest money, the Firm shall hold and disburse earnest money funds in accordance with Wis. Stat. Ch. 452 and Wis. Admin. Code Ch. REEB 18. If the transaction fails to close and the Seller requests and receives the earnest money as the total liquidated damages, then upon disbursement to Seller, the earnest money shall be paid first to reimburse the Firm for cash advances made by the Firm on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall be paid to the Firm as full commission in connection with said purchase transaction and the balance shall belong to Seller. This payment to the Firm shall not terminate this Listing.

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313 750 story problem

REAL ESTATE SALES

Property Address: 110 Ginger Drive, ,

280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313

Page 6 of 6, WB-1

DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Listing, delivery of documents and written notices to a party shall be effective only when accomplished by one of the methods specified at lines 283-302. (1) Personal Delivery: giving the document or written notice personally to the party, or the party's recipient for delivery if named at line 285 or 286. Seller's recipient for delivery (optional): N/A Firm’s recipient for delivery (optional): N/A (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: ( N/A ) N/A Firm: ( N/A ) N/A (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the party, or to the party's recipient for delivery if named at line 285 or 286, for delivery to the party's delivery address at line 295 or 296. (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the party, or to the party's recipient for delivery if named at line 285 or 286, for delivery to the party's delivery address at line 295 or 296. Delivery address for Seller: N/A Delivery address for Firm: N/A X (5) E-Mail: electronically transmitting the document or written notice to the party’s e-mail address, if given below at line 301 or 302. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically as required by federal law. E-Mail address for Seller: [email protected] E-Mail address for Firm: [email protected] ADDITIONAL PROVISIONS no showings after 7:00 p.m. on Sundays. Property subject to easement for neighbors to access shared well.

ADDENDA The attached addenda N/A 23rd TERM OF THE CONTRACT From the day of 15th to the earlier of midnight of the day of conveyance of the entire Property.

July December

is/are made part of this Listing. , 2016 , up , or the , 2016

314 BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS LISTING CONTRACT AND 315 THAT HE/SHE HAS READ ALL 6 PAGES AS WELL AS ANY ADDENDA AND ANY OTHER DOCUMENTS 316 INCORPORATED INTO THE LISTING. 317 (x) Andrew Wallace 318 Seller's Signature

07/06/2016 11:00:08

319 (x) Beth Wallace 320 Seller's Signature

07/06/2016 10:59:19

Andrew Wallace Print Name Here

07/23/2016 Date

Beth Wallace Print Name Here

07/23/2016 Date

321 (x) 322 Seller's Signature

N/A Print Name Here

Date

323 (x) 324 Seller's Signature

N/A Print Name Here

Date

325 Seller Entity Name (if any): 326

N/A Print Name Here

327 (x) 328 Authorized Signature 329 (x) Evelyn Ortega 330 Agent for Firm

Print Name & Title Here 07/06/2016 10:58:18

Evelyn Ortega Print Name Here

N/A

Date Ortega Properties Firm Name

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07/23/2016 Date 750 story problem

Story Problem - Answer Key

Approved by the Wisconsin Department of Regulation and Licensing 03-1-11 (Optional Use Date) 07-1-11 (Mandatory Use Date)

Wisconsin REALTORS Association Page 1 of 9, WB-11

WB-11 RESIDENTIAL OFFER TO PURCHASE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

August 3, 2016 LICENSEE DRAFTING THIS OFFER ON [DATE] IS (AGENT OF BUYER) (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE GENERAL PROVISIONS The Buyer, Margo Moore , offers to purchase the Property known as [Street Address] 110 Ginger Drive City in the Madison Dane Wisconsin (insert additional of , County of description, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434), on the following terms: PURCHASE PRICE: Three Hundred Sixty-Nine Thousand, Five Hundred Dollars ($ 369,500.00 ). EARNEST MONEY of $ 2,000.00 accompanies this Offer and earnest money of $ 1,000.00 5 will be mailed, or commercially or personally delivered within days of acceptance to listing broker or N/A . THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Offer not excluded at lines 17-18, and the following additional items: stove . NOT INCLUDED IN PURCHASE PRICE: deer-antler chandelier, gun rack, refrigerator . CAUTION: Identify Fixtures that are on the Property (see lines 185-193) to be excluded by Seller or which are rented and will continue to be owned by the lessor. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included/excluded. ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on August 5, 2016 or before . Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer. CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX ( ) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN "X." THEY ARE NOT PART OF THIS OFFER IF MARKED "N/A" OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 36-54. (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 38 or 39. Seller's recipient for delivery (optional): N/A Buyer's recipient for delivery (optional): N/A N/A (2) Fax: fax transmission of the document or written notice to the following telephone number: Seller: ( N/A ) N/A Buyer: ( N/A ) N/A N/A (3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. N/A (4) U.S. Mail: depositing the document or written notice postage prepaid in the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. Delivery address for Seller: N/A Delivery address for Buyer: N/A x (5) E-Mail: electronically transmitting the document or written notice to the Party's e-mail address, if given below at line 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address for Seller (optional): [email protected] E-Mail address for Buyer (optional): [email protected] PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Sellers.

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Phone: (608)241-2047 Fax: Jennifer Lindsley Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

750 story problem

315

REAL ESTATE SALES

Page 2 of 9, WB-11

57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115

OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at lines 165-172 or 435-442 or in an addendum attached per line 434. At time of Buyer's occupancy, Property shall be in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. DEFINITIONS ACTUAL RECEIPT: "Actual Receipt" means that a Party, not the Party's recipient for delivery, if any, has the document or written notice physically in the Party's possession, regardless of the method of delivery. CONDITIONS AFFECTING THE PROPERTY OR TRANSACTION: "Conditions Affecting the Property or Transaction" are defined to include: a. Defects in the roof. b. Defects in the electrical system. c. Defects in part of the plumbing system (including the water heater, water softener and swimming pool) that is included in the sale. d. Defects in the heating and air conditioning system (including the air filters and humidifiers). e. Defects in the well, including unsafe well water. f. Property is served by a joint well. g. Defects in the septic system or other sanitary disposal system. h. Underground or aboveground fuel storage tanks on or previously located on the Property. (If "yes", the owner, by law, may have to register the tanks with the Department of Commerce at P.O. Box 7970, Madison, Wisconsin, 53707, whether the tanks are in use or not. Regulations of the Department of Commerce may require the closure or removal of unused tanks.) i. "LP" tank on the Property (specify in the additional information whether the tank is owned or leased). j. Defects in the basement or foundation (including cracks, seepage and bulges). k. Property is located in a floodplain, wetland or shoreland zoning area. l. Defects in the structure of the Property. m. Defects in mechanical equipment included in the sale either as Fixtures or personal property. n. Boundary or lot line disputes, encroachments or encumbrances (including a joint driveway). o. Defect caused by unsafe concentrations of, or unsafe conditions relating to, radon, radium in water supplies, lead in paint, lead in soil, lead in water supplies or plumbing system, or other potentially hazardous or toxic substances on the Property. NOTE: Specific federal lead paint disclosure requirements must be complied with in the sale of most residential properties built before 1978. p. Presence of asbestos or asbestos-containing materials on the Property. q. Defect caused by unsafe concentrations of, unsafe conditions relating to, or the storage of, hazardous or toxic substances on neighboring properties. r. Current or previous termite, powder-post beetle or carpenter ant infestations or Defects caused by animal or other insect infestations. s. Defects in a wood burning stove or fireplace or Defects caused by a fire in a stove or fireplace or elsewhere on the Property. t. Remodeling affecting the Property's structure or mechanical systems or additions to Property during Seller's ownership without required permits. u. Federal, state, or local regulations requiring repairs, alterations or corrections of an existing condition. v. Notice of property tax increases, other than normal annual increases, or pending property reassessment. w. Remodeling that may increase Property's assessed value. x. Proposed or pending special assessments. y. Property is located within a special purpose district, such as a drainage district, that has the authority to impose assessments against the real property located within the district. z. Proposed construction of a public project that may affect the use of the Property. aa. Subdivision homeowners' associations, common areas co-owned with others, zoning violations or nonconforming uses, rights-of-way, easements or another use of a part of the Property by non-owners, other than recorded utility easements. bb. Structure on the Property is designated as an historic building or part of the Property is in an historic district. cc. Any land division involving the Property for which required state or local permits had not been obtained. dd. Violation of state or local smoke and carbon monoxide detector laws. ee. High voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property. ff. The Property is subject to a mitigation plan required by Wisconsin Department of Natural Resources (DNR) rules related to county shoreland zoning ordinances that obligates the owner to establish or maintain certain measures related to shoreland conditions, enforceable by the county. gg. Other Defects affecting the Property. (Definitions Continued on page 4) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

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750 story problem

Story Problem - Answer Key

Property Address: 110

116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168

Ginger Drive, ,

Page 3 of 9, WB-11

October 15, 2016 This transaction is to be closed no later than N/A at the place selected by Seller, unless otherwise agreed by the Parties in writing. CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owner's association N/A assessments, fuel and . CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: x The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) N/A Current assessment times current mill rate (current means as of the date of closing) N/A Sale price, multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate (current means as of the date of closing) N/A N/A . CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. x Buyer and Seller agree to re-prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro-rata share. Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seller agrees to provide at closing. The Parties shall re-prorate within 30 days of Buyer's receipt of the actual tax bill. Buyer and Seller agree this is a post-closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this transaction. LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller's rights under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are N/A . Insert additional terms, if any, at lines 165-172 or 435-442 or attach as an addendum per line 434. RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from Wisconsin Rental Weatherization Standards (Wis. Admin. Code Ch. Comm 67). If not exempt, (Buyer) (Seller) STRIKE ONE ("Buyer" if neither is stricken) shall be responsible for compliance, including all costs, with Wisconsin Rental Weatherization Standards. If Seller is responsible for compliance, Seller shall provide a Certificate of Compliance at closing. REAL ESTATE CONDITION REPORT Wisconsin law requires owners of property which includes 1-4 dwelling units to provide Buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, personal representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The law provides: "§ 709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance of the contract of sale . . ., to the prospective Buyer of the property a completed copy of the report . . . A prospective Buyer who does not receive a report within the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of sale . . . by delivering a written notice of rescission to the owner or the owner's agent." Buyer may also have certain rescission rights if a Real Estate Condition Report disclosing defects is furnished before expiration of the 10 days, but after the Offer is submitted to Seller. Buyer should review the report form or consult with an attorney for additional information regarding rescission rights. PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that as of the date of acceptance Seller has no notice or knowledge of Conditions Affecting the Property or Transaction (lines 64-114) other than those identified in Seller's July 23, 2016 Real Estate Condition Report dated , which was received by Buyer prior to Buyer signing this Offer and which is made a part of this Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and N/A

CLOSING

INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT

ADDITIONAL PROVISIONS/CONTINGENCIES on or before closing, seller to pay for one year home warranty from Warranty Best for 110 Ginger Drive, Madison, WI 53715

169 170 171 172

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750 story problem

317

REAL ESTATE SALES

Page 4 of 9, WB-11

173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215

318

DEFINITIONS CONTINUED FROM PAGE 2 DEADLINES: "Deadlines" expressed as a number of "days" from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number of "business days" exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of "hours" from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day. DEFECT: "Defect" means 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 affect the expected normal life of the premises. FIXTURE: A "Fixture" is an item of property which is physically attached to or so closely associated with land or improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; attached antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accessories; inground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent foundations and docks/piers on permanent foundations. CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or other water conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 17-18. PROPERTY: Unless otherwise stated, "Property" means the real estate described at lines 4-7. PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room dimensions, or total acreage or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless verified by survey or other means. CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building or room dimensions, if material. BUYER'S PRE-CLOSING WALK-THROUGH Within 3 days prior to closing, at a reasonable time pre-approved by Seller or Seller's agent, Buyer shall have the right to walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and tear and changes approved by Buyer, and that any defects Seller has agreed to cure have been repaired in the manner agreed to by the Parties. PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the Property until the earlier of closing or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear. If, prior to closing, the Property is damaged in an amount of not more than five percent (5%) of the selling price, Seller shall be obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. No later than closing, Seller shall provide Buyer with lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on such policy, if any. However, if this sale is financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for the sole purpose of restoring the Property.

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750 story problem

Story Problem - Answer Key

Property Address: 110

216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271

Ginger Drive, ,

Page 5 of 9, WB-11

IF LINE 217 IS NOT MARKED OR IS MARKED N/A LINES 257-263 APPLY. x FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written conventional [INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within 45 days of acceptance of this Offer. The financing selected shall be in an 30 amount of not less than $ 250,000.00 for a term of not less than years, amortized over not less than 30 years. Initial monthly payments of principal and interest shall not exceed $ 1,662.50 . Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and/or loan origination 1.000 fee in an amount not to exceed % of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 228 or 229. 7.000 X FIXED RATE FINANCING: The annual rate of interest shall not exceed %. ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed %. The initial interest rate shall be fixed for N/A months, at which time the interest rate may be increased not more than % per year. The maximum interest rate during the mortgage term shall not exceed %. Monthly payments of principal and interest may be adjusted to reflect interest changes. If Buyer is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 165-172 or 435-442 or in an addendum attached per line 434. BUYER’S LOAN COMMITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to provide evidence of application promptly upon request of Seller. If Buyer qualifies for the loan described in this Offer or another loan acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline at line 219. Buyer and Seller agree that delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy Buyer’s financing contingency if, after review of the loan commitment, Buyer has directed, in writing, delivery of the loan commitment. Buyer’s written direction shall accompany the loan commitment. Delivery shall not satisfy this contingency if accompanied by a notice of unacceptability. CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. BUYER, BUYER'S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN COMMITMENT TO SELLER OR SELLER’S AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY. SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment; Seller may terminate this Offer if Seller delivers a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this Offer, Seller shall then have 10 days to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably appropriate to determine Buyer's credit worthiness for Seller financing. IF THIS OFFER IS NOT CONTINGENT ON FINANCING: Within 7 days of acceptance, a financial institution or third party in control of Buyer's funds shall provide Seller with reasonable written verification that Buyer has, at the time of verification, sufficient funds to close. If such written verification is not provided, Seller has the right to terminate this Offer by delivering written notice to Buyer. Buyer may or may not obtain mortgage financing but does not need the protection of a financing contingency. Seller agrees to allow Buyer's appraiser access to the Property for purposes of an appraisal. Buyer understands and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this Offer is subject to an appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency. x APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer's lender having the Property appraised at Buyer's expense by a Wisconsin licensed or certified independent appraiser who issues an appraisal report dated subsequent to the date of this Offer indicating an appraised value for the Property equal to or greater than the agreed upon 45 days of acceptance, delivers purchase price. This contingency shall be deemed satisfied unless Buyer, within to Seller a copy of the appraisal report which indicates that the appraised value is not equal to or greater than the agreed upon purchase price, accompanied by a written notice of termination. CAUTION: An appraisal ordered by Buyer's lender may not be received until shortly before closing. Consider whether deadlines provide adequate time for performance.

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320

DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry. DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability for damages or other legal remedies. If Buyer defaults, Seller may: (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or (2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) sue for actual damages. If Seller defaults, Buyer may: (1) sue for specific performance; or (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. In addition, the Parties may seek any other remedies available in law or equity. The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution instead of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration agreement. NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OFFER BUT ARE PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds and inures to the benefit of the Parties to this Offer and their successors in interest. NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608) 240-5830.

Story Problem - Answer Key

Property Address: 110

304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332

Ginger Drive, ,

Page 7 of 9, WB-11

N/A CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's N/A N/A property located at , no later than . If Seller accepts a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written waiver of the Closing of Buyer's Property Contingency and N/A

[INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL CONTINGENCIES, OR PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within N/A hours of Buyer's Actual Receipt of said notice, this Offer shall be null and void. N/A SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery of written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior to any deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. Buyer may declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller's notice that this Offer is primary. Buyer may not deliver notice of withdrawal earlier than N/A days after acceptance of this Offer. All other Offer deadlines which are run from acceptance shall run from the time this Offer becomes primary. TIME IS OF THE ESSENCE "Time is of the Essence" as to: (1) earnest money payment(s); (2) binding acceptance; (3) occupancy; (4) date of closing; (5) contingency Deadlines STRIKE AS APPLICABLE and all other dates and Deadlines in this Offer except: N/A . If "Time is of the Essence" applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If "Time is of the Essence" does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. TITLE EVIDENCE CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (trustee's deed if Seller is a trust, personal representative's deed if Seller is an estate or other conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and covenants, present uses of the Property in violation of the foregoing disclosed in Seller's Real Estate Condition Report and in this Offer, general taxes levied in the year of closing and N/A

333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359

which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents necessary to record the conveyance at Seller’s cost and pay the Wisconsin Real Estate Transfer Fee. WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making improvements to Property or a use other than the current use. TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner's policy of title insurance in the amount of the purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. Buyer shall pay all costs of providing title evidence required by Buyer's lender. GAP ENDORSEMENT: Seller shall provide a "gap" endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) STRIKE ONE ("Seller's" if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance commitment and before the deed is recorded, subject to the title insurance policy exclusions and exceptions, provided the title company will issue the endorsement. If a gap endorsement or equivalent gap coverage is not available, Buyer may give written notice that title is not acceptable for closing (see lines 353-359). PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance commitment is delivered to Buyer's attorney or Buyer not less than 5 business days before closing, showing title to the Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 326-335, subject only to liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to remove the objections, and the time for closing shall be extended as necessary for this purpose. In the event that Seller is unable to remove said objections, Buyer shall have 5 days from receipt of notice thereof, to deliver written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does not waive the objections, this Offer shall be null and void. Providing title evidence acceptable for closing does not extinguish Seller's obligations to give merchantable title to Buyer.

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Page 8 of 9, WB-11

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SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement if area assessments, property owner's association assessments, special charges for current services under Wis. Stat. § 66.0627 or other expenses are contemplated. "Other expenses" are one-time charges or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, municipal water, sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). EARNEST MONEY HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (Buyer's agent if Property is not listed or Seller's account if no broker is involved), until applied to the purchase price or otherwise disbursed as provided in the Offer. CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or an attorney. If someone other than Buyer makes payment of earnest money, consider a special disbursement agreement. DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from payor's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. At closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest money shall be disbursed according to a written disbursement agreement signed by all Parties to this Offer. If said disbursement agreement has not been delivered to broker within 60 days after the date set for closing, broker may disburse the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) any other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed $250, prior to disbursement. LEGAL RIGHTS/ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties in relation to this Offer. Buyer's or Seller's legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or Seller disagree with broker's proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith disbursement of earnest money in accordance with this Offer or applicable Department of Regulation and Licensing regulations concerning earnest money. See Wis. Admin. Code Ch. RL 18. INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific contingencies are included as a part of this Offer. An "inspection" is defined as an observation of the Property which does not include an appraisal or testing of the Property, other than testing for leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, which are hereby authorized. A "test" is defined as the taking of samples of materials such as soils, water, air or building materials from the Property and the laboratory or other analysis of these materials. Seller agrees to allow Buyer's inspectors, testers and appraisers reasonable access to the Property upon advance notice, if necessary to satisfy the contingencies in this Offer. Buyer and licensees may be present at all inspections and testing. Except as otherwise provided, Seller's authorization for inspections does not authorize Buyer to conduct testing of the Property. NOTE: Any contingency authorizing testing should specify the areas of the Property to be tested, the purpose of the test, (e.g., to determine if environmental contamination is present), any limitations on Buyer's testing and any other material terms of the contingency. Buyer agrees to promptly restore the Property to its original condition after Buyer's inspections and testing are completed unless otherwise agreed to with Seller. Buyer agrees to promptly provide copies of all inspection and testing reports to Seller. Seller acknowledges that certain inspections or tests may detect environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources.

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750 story problem

Story Problem - Answer Key

Property Address: 110

410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436

Ginger Drive, ,

Page 9 of 9, WB-11

x INSPECTION CONTINGENCY: This contingency only authorizes inspections, not testing (see lines 395-409). This Offer is contingent upon a Wisconsin registered home inspector performing a home inspection of the Property which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or independent qualified third party performing an inspection of N/A (list any Property component(s) to be separately inspected, e.g., swimming pool, roof, foundation, chimney, etc.) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow-up inspections recommended in a written report resulting from an authorized inspection, provided they occur prior to the deadline specified at line 421. Inspection(s) shall be performed by a qualified independent inspector or independent qualified third party. CAUTION: Buyer should provide sufficient time for the home inspection and/or any specialized inspection(s), as well as any follow-up inspection(s). This contingency shall be deemed satisfied unless Buyer, within 15 days of acceptance, delivers to Seller a copy of the written inspection report(s) and a written notice listing the Defect(s) identified in those report(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. For the purposes of this contingency, Defects (see lines 182-184) do not include structural, mechanical or other conditions the nature and extent of which Buyer had actual knowledge or written notice before signing this Offer. RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE ("shall" if neither is stricken) have a right to cure the Defects. If Seller has right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects stating Seller’s election to cure Defects; (2) curing the Defects in a good and workmanlike manner; and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure. Addendum 1 x ADDENDA: The attached is/are made part of this Offer. ADDITIONAL PROVISIONS/CONTINGENCIES N/A

437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454

Evelyn Ortega, Ortega Properties

This Offer was drafted by [Licensee and Firm] N/A (x) Margo Moore

on

07/06/2016 11:06:10

Buyer’s Signature

Print Name Here

Buyer’s Signature

Print Name Here

(x) EARNEST MONEY RECEIPT

Date

Broker acknowledges receipt of earnest money as per line 10 of the above Offer.

Ortega Properties Evelyn Ortega Broker (By) SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OFFER.

07/06/2016 11:09:07

August 3, 2016 Date

07/06/2016 11:06:55

August 3, 2016 Date

456

Print Name Here

Andrew Wallace

457 458

(x) Beth Wallace Seller’s Signature

Print Name Here

Beth Wallace

459

This Offer was presented to Seller by [Licensee and Firm] N/A

460 461 462

.

August 3, 2016 Date

Margo Moore

(x) Andrew Wallace Seller’s Signature

455

August 3, 2016

on

This Offer is rejected

Evelyn Ortega

August 3, 2016

at

5

a.m./p.m.

This Offer is countered [See attached counter] Seller Initials

Date

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Date

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Wisconsin REALTORS Association

Addendum

1

to the Offer to Purchase

Addendum attached to and made part of the Offer to Purchase dated

Margo Moore

53715

August 3, 2016 made by the Buyer, 110 Ginger Drive,Madison Wi

with respect to the Property at

, Wisconsin.

This offer is contingent upon seller, at seller's expense, obtaining an acceptable shared-well agreement no later than 10 days prior to closing. The shared well agreement will be acceptable if it provides an equal allocation of all operation and maintenance expenses to each property sharing the well, limits use of the well to residential purposes, and includes reasonable access to to the well for necessary maintenance and repairs. This contingency shall be satisfied unless buyer, within 5 days of receipt of the agreement, delivers to seller a written notice listing the defects in the agreement to which buyer objects. Upon receipt of the notice, Seller shall have 10 days to cure the defects and the time for closing shall be extended accordingly. If the agreement has not already been recorded, it shall be provided in recordable form, with recording fees to be seller's expense at closing.

Margo Moore

07/01/2016 13:00:58

(Buyer's Signature)

Margo Moore

(Buyer's Signature)

N/A

08/03/2016

Andrew Wallace

(Date)

(Seller's Signature)

(Date)

(Seller's Signature)

07/01/2016 12:58:47

Andrew Wallace

Beth Wallace

07/01/2016 12:59:43

Beth Wallace

08/03/2016 (Date)

08/03/2016 (Date)

Copyright 2000 by Wisconsin REALTORS® Association

Wisconsin REALTORS Association, 4801 Forest Run Rd Ste 201 Madison, WI 53704 Jennifer Lindsley Phone: (608)241-2047 Fax:

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Glossary

0-Bedroom Dwelling Any residential dwelling in which the living area is not separated from the sleeping area. Abstract of Title A condensed history of a property’s title showing, in ­chronological sequence, matters such as conveyances, liens, and encumbrances that have been recorded against the title in the office of the register of deeds or other public recording place.

A

Acceleration Clause A clause within a mortgage permitting a lender to accelerate the amount due upon default and declare the entire balance due.

Acceptance Acceptance occurs when all buyers and sellers have signed an identical copy or separate but identical copies of the offer. Accession The right of a property owner to become entitled to all that a property produces and to all that is added to it, either naturally or artificially. For example, the owner of an office building would acquire the abandoned trade fixtures of a tenant as real property by accession. Active Property Property currently for sale. Actual Notice The actual knowledge a person has about the existence of a particular fact when notice is expressly and actually given. Ad Valorem Latin for according to valuation. Refers to a tax based on a property’s value, not the income of the property owner. Addenda Additional material attached to and made part of a document. Adjustable Rate Loan A loan with a fluctuating interest rate. Advance Fee A fee paid to a firm before any services are rendered. Adverse Fact Something that significantly and adversely affects the value of a property, significantly reduces the structural integrity of improvements to real estate, presents a health risk to occupants of the property, or information that indicates that a party to a transaction is not able to or does not intend to meet the obligations under a ­contract made concerning a transaction. Age A protected class under Wisconsin fair housing laws that refers to any person at least 18 years of age.

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Agency A relationship in which one person acts for or represents another. Agent A person who is authorized to act on behalf of another. Amendment An amendment is used to change terms of a contract. Amenities Features of a property that add value or desirability. Amenities can be either tangible, such as a skylight, or intangible, such as an ocean view. American with Disabilities Act (ADA) A federal law designed to eliminate discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, government services, public transportation, and telecommunications. Amortization The gradual paying of a debt through systematic payments of principal and interest over a predetermined period of time. Ancestry A person’s racial and ethnic background. Annexation An addition to property by the act of joining one thing to another. Annual Percentage Rate (APR) The relationship of the total finance charge to the total amount to be financed as required under the federal Truth in Lending Act. Anticipation Future physical, economic, social, or political changes that may affect present value of property. Antitrust Laws Laws that make it illegal to conspire to restrain trade or the free flow of goods and services in a market place. Appraisal An estimate or opinion of value based on supportable evidence and approved methods. Appraiser An independent person trained to provide an unbiased estimate of value for a fee. Approved Form A contractual or conveyance form that is prepared and approved by the Real Estate Examining Board (REEB). Appurtenant Easement An appurtenant easement exists between two adjacent property owners where one is the dominant estate and the other is the servient estate. The easement attaches to the land and transfers to future owners.

326

Glossary

Arbitration The non-judicial submission of a controversy to third parties for a ­determination in a manner provided by agreement or by law. Arsenic An element found in soil and rock that is thought to increase the likelihood of several types of cancers. Asbestos A mineral fiber that has been used in a variety of ways within homes, but usually as an insulator around plumbing. Asbestos can be friable or non-friable and may be hazardous to health. Assessed Value The determination of a property’s value for determining property taxes. Assessed value is usually a percentage of the appraised value. Assumable Loan A financing instrument with terms that are transferable to another party. Atrazine A popular corn herbicide that has been used in Wisconsin for more than 25 years to control weeds in cornfields.

B

Balloon Loan A loan originated with a short repayment term of 3 to 7 years while being fully amortized for 30 years. Balloon Payment A lump-sum payment due at the end of a mortgage contract period.

Bilateral Contract A contract that binds two parties. Two promises are given, one in exchange for another. Bill of Sale A legal document used to transfer ownership of personal property. Binding Acceptance Creates an enforceable contract between parties. An offer is binding upon both parties only if a copy of an accepted offer is delivered to the party making the offer prior to the date established for binding acceptance. Blockbusting The practice of exploiting racial prejudices and the fear of a general decline in a neighborhood’s real estate values to induce homeowners to sell their properties at a low price. Breach A failure to perform as promised in a contract.

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Bridge Loan A residential financing arrangement in which the buyer of a new home borrows money and gives a second mortgage on the buyer’s unsold home to fund the acquisition of a new home. Broker One who for another person, and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase, or rental of or the granting or acceptance of an option to sell, exchange, purchase, or rent and interest or estate in real estate; one who shows real estate or a business or its inventory; or one who promotes the sale, exchange, purchase, option, rental, or leasing of a real estate, a time share, or a business or its goodwill, inventory or fixtures. Brokerage The business of bringing buyers and sellers together in the marketplace. Building Codes Ordinances specifying minimum standards of construction. Building Permits Written government permission for the construction of a new building or improvement to an existing structure. The purpose of the building permit is to show compliance with the zoning code to local authorities. Bundle of Rights Real property ownership right including the right of quiet enjoyment, possession, disposal, exclusion, control, and the right to encumber. Business Sale The sale or lease of a business and the business’s good will, enterprise, or opportunity, including a sale of the majority of assets or stocks of the business. Buyer Agency Agreement A written employment agreement that creates an agency relationship between a firm and a buyer. The buyer employs the firm to put forth a reasonable effort to find a property for the buyer to purchase and to negotiate on the buyer’s behalf. Buyer’s Firm/Licensee A firm that has entered into a buyer agency agreement with the buyer indicating that the firm will be representing the interests of the buyer. The buyer’s licensee is the person within the buyer firm that procured the buyer.

C

Cancellation Agreement and Mutual Release A contract used to terminate a contract for sale or agency agreement when the parties mutually agree to terminate their original agreement. Certificate of Eligibility The document provided by the Veterans Administration to a veteran that establishes the maximum guarantee to which the veteran is entitled.

Certificate of Reasonable Value Prepared by an appraiser for property financed with a Veterans Administration loan.

328

Glossary

Chain of Title Chronological record of a property’s ownership. Change An appraisal theory that a value placed on a property is good for a snapshot in time because no physical or economic condition remains the same. Chattel An item of moveable personal property, such as furniture and draperies. Client The person who employs an agent to perform a service on the client’s behalf. Client Funds All downpayments, earnest money deposits, or other money related to a conveyance of real estate that is received by a licensee on behalf of a firm or any other person. “Client funds” does not include promissory notes. Closing Costs Expenses of a sale that a buyer must pay in addition to the property’s purchase price or that are deducted from a seller’s proceeds. Responsibility for closing costs is negotiated by the parties. Closing (Settlement) Completion of a real estate transaction where mortgage funds are given to a buyer who exchanges them with a seller for legal title to the property. Cloud on Title A claim or encumbrance that would affect or burden an owner’s title to real estate. Coliform Bacteria Microorganisms found in the intestines and feces of humans and other warm-blooded animals as well as in soil, on vegetation, and in surface water runoff. Color A protected class under fair housing laws that refers to a person’s skin color. Commercial Easement in Gross An easement between a landowner and a company that binds subsequent owners. Commission The amount owed to a firm as payment for services rendered in connection with a listing contract or buyer agency agreement. Common Elements All real property in a condominium development that is not described as a unit. Common Law A body of law based on usage, general acceptance, and custom as manifested in decrees and judgments of the court’s case law. Comparable Property A benchmark used in the Market Data Approach to make a property value estimate based on other properties that have recently sold and are similar to the subject property in terms of location, physical features, price, and date of sale.

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Competent Parties To be considered a competent party to a contract, a party must be of legal age and sound mind. Condemnation A judicial or administrative proceeding to exercise the power of eminent domain. Conditional Use Permit Land uses allowed under certain conditions that a government has decided are not well suited to all locations within the zoning district. Condominium Ownership Fee simple unit ownership of real property. Residents own their units plus a share of ­common elements. Condominium Unit The part of the condominium development that is intended for individual use. Conformity The maximum value of a property that is realized when the other properties in the neighborhood are similar. Consideration A bargained for thing from a promisor to a promisee that is necessary for a valid contract. It may take the form of good consideration such as a promise or it may be valuable consideration such as money or other material possession. Construction Lien A specific, involuntary lien placed against real property for the purpose of securing a debt. The lien may be placed by those who perform labor, furnish material, or professional services in the improvement of real estate. Constructive Notice Knowledge that the law presumes a person has because of documents that have been recorded as a matter of public record. Contingency A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding. Contract A legally enforceable promise or set of promises that must be performed, and for which, if a breach occurs, the law provides a remedy. Contract for Sale An agreement between a buyer and a seller for the sale and purchase of a property. Contribution Any component to a property is worth only what it adds to the property’s value regardless of the cost of the improvement. Control The right to use a property within the boundaries of the law.

330

Glossary

Conventional Financing Financing that does not give the lender the added security of a government ­guarantee or insurance. Conveyance An instrument by which some estate or interest in land is transferred from one p ­ erson to another, such as a deed, mortgage, lease, or contract for sale. Cooperating Firm A firm who works in conjunction with another firm in procuring a buyer for the s­ eller’s property. Cooperative Lease A written lease in a cooperative apartment building, between the owner/corporation and the tenant/stockholder, in which the tenant is given the right to occupy a particular unit. Cooperative Ownership A multi-unit building that is owned by a corporation. Residents living in the building own stock as shareholders in the corporation and have a lease as a tenant for the living space. Cost The current reproduction cost of a building plus the value of the land tends to set the upper limit of a property’s value. Counter-Offer An offer that rejects a prior offer and proposes new terms. Covenant A promise contained in a deed by which one of the parties agrees or pledges to the other that something will be done or shall not be done. Also called a deed restriction. Creditor As defined by Regulation Z, a party who arranges for or extends credit more than 25 times a year or more than 5 times a year if the transaction is secured by a dwelling. Credit Score A statistical method of assessing the credit risk of a loan applicant. Customer A person who receives services given on behalf of and for the benefit of a client.

D

Damages Compensation recoverable in a lawsuit by a party who sustained an injury. Deed A document that transfers ownership of title.

Deed Conditions Stipulations imposed from grantor to grantee, usually with a fee simple defeasible estate.

331

REAL ESTATE SALES

Deed in Lieu of Foreclosure A borrower deeds the property to the lender in full or partial payment of the mortgage debt. The title to be transferred must be free of all encumbrances. Also referred to as a “friendly foreclosure.” Deed Restrictions Clauses in a deed that limit the future use of the property, such as the type of structure that can be erected or the purpose for which a structure may be erected. Defeasance Clause A clause within a mortgage that legally binds the lender to release the lien from the title once the mortgage has been satisfied. Deficiency Judgment A judgment against a person when the sale of a person’s property is not sufficient to satisfy the mortgage debt. Delivery A component of binding acceptance. Delivery can occur by fax, by mail, electronically, or personally. Depreciation A loss of value in a property. Designated Agency A multiple representation relationship in which both the buyer and the seller are clients of the same firm in the same transaction and each client receives negotiation services from an agent of the firm. Developer One who transfers undeveloped land into parcels ready for construction. Disability A physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment. Discount Points, see Points Disposition The right held by a property owner to lease, sell, or will the property away. Dominant Estate/ Tenement A party to an easement who received an easement right to use another’s property. Downzoning A change in zoning from a more active to a less active classification; such as commercial to residential. Dwelling Any building or part of a building designed for occupancy as a residence by one or more families.

332

E

Glossary

Earnest Money Up-front cash or item of value from the potential buyer that indicates an intention to make good on an offer to purchase. Easement An incorporeal right held by one party to make use of the land of another for a limited purpose.

Easement by Condemnation Easement acquired through operation of law by a government for a public use. Easement by Necessity An easement that is acquired through the operation of law allowing a purchaser of land ingress and egress. Easement by Prescription An easement created by adverse use of a property over a statutory period of time. Easement in Gross A personal easement in gross is an interest to use another’s land that usually ends with the death of the grantee or transfer of property. A commercial easement in gross is an interest granted to a company and binds successive owners. Eminent Domain A government’s right to take private land for public use. Encroachment To advance upon, or trespass upon the property of another as in the extension of some improvement or object across the boundary of a neighboring tract. Encumbrance Any claim against a property that may diminish its value. Equitable Title The right to obtain absolute ownership of a property when legal title is held in another’s name. Equity The excess of a property’s fair market value over the outstanding debts. Escheat The reversion of property to the state or county, as provided by state law, in cases where a decedent dies intestate and there are no heirs. Escrow The process by which money and/or documents are held by a disinterested third party until satisfaction of the terms and conditions of the escrow instructions have been achieved. Escrow Agent A disinterested or neutral third party who coordinates the closing activities. Estate in Land A recognized interest in the use possession, control, and disposition a person has in land.

333

REAL ESTATE SALES

Exchange A way to defer capital gains tax by exchanging like property for like property. Exclusion The right held by a property owner or lessee to keep others from using a property. Exclusive Agency Listing Contract An agency agreement giving the listing firm the exclusive right to market the seller’s property. The seller promises to pay a commission to the listing firm if the terms of the contract are fulfilled, except if the seller finds the buyer. Exclusive Right to Sell Listing Contract An agency agreement giving the listing firm the exclusive right to market the seller’s property. The seller promises to pay a commission to the listing firm if the terms of the contract are fulfilled no matter who finds the buyer. Expired Property A property that was listed for sale but did not sell during the term of the listing contract. Express Agency An agency relationship created through spoken or written words. Express Agreement (Express Contract) A written or oral contract between parties.

F

Familial Status A protected class that protects families in which one or more children under 18 years old lives with a parent, a person who has legal custody, or the designee of the parent or legal custodian. Federal Housing Administration (FHA) A government agency that insures mortgage loans for financial institutions against loss in the event of foreclosure.

Fee Estate An estate of inheritance in land that is absolute or without limitation. Fee Simple Absolute (Fee Simple) The largest estate of ownership that automatically passes upon death to the owner’s heirs and devisees, either by will or by descent. The estate includes the complete bundle of legal rights. Fee Simple Defeasible Estate An estate of inheritance that may be nullified upon the occurrence or non-occurrence of a particular event. Fee Splitting A fee or commission paid to an unlicensed person for performing a brokerage activity. Fiduciary One who is placed in a position of trust and confidence, normally responsible for the money or property of another.

334

Glossary

Firm A licensed individual broker acting as a sole proprietorship or a licensed broker business entity. Finance Charge A charge incurred by a consumer for the service of borrowing money. Fixed Rate Loan A loan with a rate that does not change over the life of the loan. Fixture An article that was once personal property but has been so affixed to real estate that it has become real property. Floodplain The flat portions of land located along watercourses and streams that are subject to overflow and flooding. Foreclosure A legal process used when a borrower defaults on a debt. A court orders the sale of a property to satisfy a debt. Fraud An intentional distortion of the truth, a false representation, or non-disclosure where ­disclosure should have been made. Freehold Estate An estate in land characterized by an interest in something immobile and of an indefinite duration.

G

Gap Endorsement When a title company will provide coverage for liens that occur between the title commitment and the recording of the deed. Gap in Title A break in the chain of title.

Gap Period The time between the effective date of a title commitment and the recording of the owner’s interest. General Agency An agency relationship where an agent is authorized to conduct all of a principal’s affairs within the context of an agency contract. General Lien A claim on both real and personal property owned by an individual. Government Financing Loan programs that are insured or guaranteed by the federal government. Government Powers The rights of a government to limit private ownership of property for the general welfare of the community.

335

REAL ESTATE SALES

Grant The transfer of real estate by means of a deed. Grantee A party who is receiving an interest in real property. Grantor A party who is conveying an interest in real property. Group Boycott Competitors conspiring against another business or agreeing to withhold their patronage to limit competition.

H I

Highest and Best Use The use of a property that would generate the most profit. Homestead The home or dwelling of a married person and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, but not less than one-fourth acre, if available, and not exceeding 40 acres. Implied Agency An agency relationship created between parties by their actions. Improvement Valuable additions made to property that cost labor and capital and are intended to enhance the value of the property.

Increasing and Decreasing Returns Increasing returns are demonstrated when improvements are made to the property and the costs of those improvements are recovered upon sale due to the increased value of the property. Decreasing returns are demonstrated by an over-improved property when the costs of the improvements are not likely to be recoverable upon sale. Individual Property Property of married persons acquired prior to marriage, income designated as individual property, appreciation of value from individual property, or gifts and inheritance received during marriage. In-house Sale A sale in which a listing firm is the only firm in the transaction. Interest A charge for the use of money.

336

Glossary

J

Joint Tenancy Two or more persons holding title to real property who are named on the same deed and share an undivided possession of the property. Joint tenants benefit by the right of survivorship. Judgment The official decision of a court regarding the rights and obligations of the parties of a law suit.

Judgment Lien A lien binding the real estate of one who is in debt to the holder of a judgment, giving the holder a right to foreclose on the land for the satisfaction of the judgment. Judicial Foreclosure A method of foreclosure where a mortgagee files suit to have the property sold by court order in an advertised public sale. Junior Lien A lien that is subordinate to other existing liens.

L

Land Contract A type of seller financing in which title does not transfer from seller to buyer until the contract has been paid in full. Under a land contract, a buyer gains equitable title and a seller maintains legal title. Latent Defect A property defect that is known by a seller and is not discoverable by an ordinary inspection of the property by an agent or a buyer.

Lawful Source of Income A legal source of a person’s income. Laws of Agency The body of law that determines the rights and duties owed by an agent to a principal. Lead-Based Paint Hazard Any condition that causes exposure to lead from contaminated dust, soil, or paint that is deteriorated or present on accessible, friction, or impact surfaces that would result in adverse human health effects. Lead Poisoning An illness caused by lead that may be found in a home’s paint or water pipes. Leasehold A personal property interest in land acquired under a lease. Lessee Tenant. Lessor Property owner who leased property to a tenant. Landlord. Licensee Any person licensee under Chapter 452 of the Wisconsin Statutes. A licensee generally refers to a licensee salesperson, broker, or business entity. 337

REAL ESTATE SALES

Lien A legal right to place a claim or encumbrance on property or have it sold for payment of a debt. Lien Theory States that use lien theory view the buyer as the owner of the property even though the lender has not received payment in full. The mortgage creates a lien on the real estate, which is used as collateral for a loan. Wisconsin is a lien theory state. Life Estate An estate with a duration limited to the life of the party holding it or of some other ­person. Life Tenant One who holds an estate in land for the period of the tenant’s own life or the life of another person. Limited Common Element Common elements of the condominium that are identified in the declaration or plat as reserved for the exclusive use of one or more unit owner. Liquidated Damages A remedy for breach of contract available to a seller where the seller retains the buyer’s earnest money. If a seller chooses this remedy, the seller forfeits all other remedies. Lis Pendens Litigation pending. A notice filed on public record to give constructive notice that a property is in litigation and there may be a forthcoming lien. Listing Firm/Licensee The listing firm is the firm that the seller has employed under a listing contract. The listing licensee is the licensee associated with the listing firm who acquired the listing. Listing Contract A written employment agreement that creates an agency relationship between a firm and a seller. Loan-to-Value Ratio The relationship between the loan amount and the selling price.

M

Management and Control The ability that a married person has under Wisconsin’s marital property laws to control marital property. Marital Property A classification of property ownership recognized in Wisconsin. Each spouse has an undivided one-half interest in each item of marital property.

Marital Status Whether a person is single, married, divorced, separated, or widowed.

338

Glossary

Market Analysis (Market Data Approach) A study of a property by a real estate agent or appraiser to establish a likely selling price of the property. It involves a study of recent sales in the market area that are similar to the subject property on the basis of location, terms, physical features, and date of sale. Market Price The price a ready, willing, and able buyer actually pays for a property. Market Value The price at which a property would sell on the open market to a buyer who is not under duress, not related to the seller, is well-informed about the property, and who has been found within a reasonable amount of time. Marketable Title A title that is free from defects and encumbrances and may be transferred to another party. Master Plan A comprehensive plan used to guide development of an area. It takes into consideration, growth, and expansion of public service, transportation, etc. Material Adverse Fact An adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects the party’s decision to enter into a contract or the terms of a contract. Material Fact Any fact that is relevant to a person making a decision. Agents must disclose all material facts to their clients. Meeting of the Minds Mutual assent or agreement between the parties to a contract regarding the substance of the contract. There can be no contract unless there is a meeting of the minds. Mirror Image Offer An offer to purchase that is written at the price and on substantially the terms set forth in the listing. Even if the seller does not accept this offer, the firm may be owed a commission. Misrepresentation Any statement of fact by one person to another, either by words or actions, which is not in accordance with the actual facts. Mixed Property A classification of property ownership recognized in Wisconsin. A combination of both individual and marital property is treated as marital property. Mobile Home Considered personal property for property tax purposes unless permanently attached to the ground, attached to utilities, and sits upon land owned by the mobile home owner.

339

REAL ESTATE SALES

Mold A variety of fungous growths that can cause disintegration of organic matter. Mortgage A financing instrument used to purchase property comprised of the mortgage document and mortgage note. Mortgagee Lender. Mortgage Document The document pledging real estate as security for the repayment of a debt. Mortgage Lien Lien rights given to a lender by a borrower in exchange for the loan. Mortgage Note A document signed by a borrower that states the loan amount, the interest rate, the time and method of repayment, and the obligation to repay. Mortgagor Borrower. Multiple Counter-Proposal A way for a seller to negotiate with multiple buyers. The seller is not bound to a particular buyer unless the seller accepts the buyer’s approval of the multiple counterproposal. Multiple Listing Service (MLS) A service permitting firms to pool their listings and offer to cooperate and compensate other firms. Voluntary organization where members agree to market their properties and offer subagency to other agents. Multiple Representation Relationship A relationship between a firm and two or more of the firm’s clients where the clients are parties in the same transaction.

N

National Origin The country from which a person or the person’s ancestors originated. Navigable Waterway A waterway with a bed and banks where it is possible to float a small water craft at some point during the year.

Net Listing An employment contract in which the firm receives, as commission, all excess monies over and above the minimum sales price agreed on by firm and seller. Nitrates A natural component of plants that is found at varying levels depending on the amount of fertilizer applied and on other growing conditions. Non-conforming Loans Loans that do not conform to the guidelines of conventional loans.

340

Glossary

Non-conforming Use When a property’s use does not conform to current zoning because of a change in the zoning ordinance. The use of the property is permitted to continue until the property is destroyed or the use is discontinued. Notice Relating to the Offer to Purchase A form used by a party to a purchase contract to unilaterally give notice to another party.

O

Offer to Purchase A promise made to purchase a seller’s property under certain terms. Open House A showing of real estate open to the public for viewing without an individual appointment.

One-party Listing A listing that specifies a particular buyer. The listing firm will earn a commission if the named buyer purchases the property. Open Listing A listing that gives more than one firm the right to sell a property. The firm that procures a buyer earns the commission. Operation of Law A term that describes the way a right is created for a party by the application of established rules of law. Opinion of Title An opinion by a person competent in examining title, usually an attorney, as to the status of the recorded title of a property. Option to Purchase An agreement to keep open, for a set period, an offer to sell or lease real property. Optionee The purchaser under an option contract. Optionor The seller under an option contract. Ordinary High Water Mark The point on the bank or shore where water is present often enough so that the upland begins to look different from the lake or stream bed. Origination Fee The dollar amount charged by a lender to cover the time and expenses incurred to arrange a loan. The fee covers the lender’s overhead for processing the loan throughout the loan term.

341

REAL ESTATE SALES

P

Parol Evidence Rule Prevents the admission into court evidence of any oral negotiations or agreements that vary or contradict the terms of the written contract. Partition Suit A court process that divides co-tenants interests in real property when the parties do not all voluntarily agree to terminate the co-ownership.

Party Wall Easement A wall that is located on a boundary line between two adjoining parcels of land. Pattern of Sales Presumptive evidence of practicing real estate requiring a real estate license by engaging in five real estate sales in one year or 10 sales in five years. Pending Property A property that has an accepted offer to purchase with all the contingencies removed. Percentage Interests Determines the extent of a condominium unit owner’s ownership interest in common elements, responsibilities for common expenses, voting power, and the amount of proceeds in the event that the condominium is terminated. Permitted Use Uses that are permitted for a particular zoning classification. Personal Easement in Gross An easement that exists between a landowner and another person that typically ends upon the death of the easement holder or transfer of title. Personal Property Property that is portable or unattached to the real estate. Personal Representative’s Deed A deed used by a personal representative when conveying property from an estate. A personal representative’s deed does not warranty the title of the conveyed property. Planned Unit Development (PUD) A zoning district written and negotiated specifically for the subject property. It may allow a developer to cluster buildings and services together in a way that would not be possible or permissible according to a municipality’s regular zoning ordinances. . Plat A map showing the specific location and boundaries of land that has been sub­divided into lots. Plot Plan A plan showing the layout of improvements on a property site. It usually includes location, dimensions, parking areas, and landscaping. Points Prepaid interest that is collected at closing. This money is used to buy down the interest rate of a mortgage. Police Power The power of a government to preserve order and protect the public health and general welfare.

342

Glossary

Possession The act of occupying a property. Power of Attorney A written instrument giving a person the authority to act on behalf of another. Predetermination Date Property A classification of property under Wisconsin’s marital property law describing property of married people acquired prior to their determination date. Prepayment Penalty A charge imposed against a borrower for paying a loan off early. Price-fixing Competitors conspiring together to eliminate competition by agreeing on the prices they will charge consumers. Primary Market The market where loans are originated and sold. Principal 1. One who has permitted or directed another to act for his/her benefit and subject to his/her direction and control. 2. The amount of money that is borrowed, not including the payment of interest. 3. A firm that has engaged a subagent firm to provide brokerage services. Priority of Liens The order in which liens are paid in a foreclosure sale. Private Mortgage Insurance (PMI) An insurance policy written to insure a portion of a mortgage amount for a borrower. Probate Formal judicial proceedings to prove or confirm the validity of a will, to collect the assets of a decedent’s estate, to pay debts and taxes, and to determine the persons to whom the remainder of the estate is to pass. Procurement The uninterrupted chain of events that lead to a sale. Promissory Note An unconditional promise of one person to pay a certain sum of money to another at a future specified time. Property Taxes Taxes levied by the government against real estate. Puffing The common practice expressing an exaggerated opinion of a property’s benefits. Purchase Money Mortgage A form of seller financing where the seller acts as a lender in granting a loan to the buyer for a portion of the purchase price.

343

REAL ESTATE SALES

Q R

Quiet Enjoyment The right of a property owner to the uninterrupted use of the property without disturbance from superior titles. Quitclaim Deed A deed that conveys title to real property without making warranties or representations regarding the quality of the deed. Race A person’s membership in a group possessing characteristics and traits transmitted by descent. Radium A naturally occurring radioactive metal that is usually found at low levels in soil, rock, water, and plants.

Radon An odorless radioactive gas that can enter a home through cracks in a foundation or drains in the floor. Ready, Willing, and Able Buyer A prospective buyer of property who is legally capable and financially able to complete the transaction. Real Estate Condition Report (RECR) A report used by a seller to disclose to a buyer any known adverse facts. Real Estate Settlement Procedures Act (RESPA) A law enforced by HUD to ensure that borrowers in mortgage loan transactions have knowledge of all settlement costs. Recording A written instrument affecting any estate, right, title, or interest in land that is recorded in the public records in the county where the land is located. Redlining A lender’s refusal to mortgage or an insurance company’s refusal to insure property within a geographic area on the belief that issuing loans or insurance in the area would be a high risk. Regression The value of a lesser property decreases the value of a better property. Religion A person’s religious or spiritual beliefs, practices, or denominational affiliations. Rescission A way of terminating the rights of the parties under a contract whereby the parties act as if the contract never existed and forfeit their rights to sue.

344

Glossary

Reverse Mortgage A loan program to provide older homeowners with monthly payments by permitting the homeowner to withdraw equity from the home. Monthly payments are made by the lender to the borrower based on the equity in the home. The loan is usually paid off from the sale of the property upon the borrower’s death. Revocation The act of terminating, canceling, or annulling. Right of First Refusal The right of a person to have the first opportunity to purchase or lease real property. Right of Redemption The time frame granted to a foreclosed property owner during which the borrower can pay the lender in full, stop the foreclosure proceeding, and keep possession of the property. Riparian Rights The rights that govern lakes and running waters, such as rivers and streams. Property owners with riparian rights own the land to the center of the n ­ avigable water or the ordinary high water mark. Rural Housing Loan A loan program under the Department of Agriculture designed to meet the needs of low-income and moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities.

S

Sales Contract, see Contract for Sale Salesperson Any individual who is associated with a firm, other than a broker or a person who is not required to have a license. Satisfaction of Mortgage A certificate issued by the mortgagee when a mortgage is paid in full. The certificate serves to remove the mortgagee’s lien on the property from public records.

Secondary Market A market for the purchase and sale of existing mortgages. Selling Firm/Licensee The selling firm is the firm that found the buyer for a seller. The selling licensee is the person, within the selling firm, who found the buyer. Servient Estate/Tenement The landowner who grants or serves the right to use property to another in an appurtenant easement. Setback The amount of space required by zoning restrictions between the lot line and any improvements on the lot. Severalty Sole ownership of real property. 345

REAL ESTATE SALES

Sex A class protected under fair housing laws referring to gender. Sexual Orientation Having a preference for heterosexuality, homosexuality, bisexuality, having a history of such a preference, or being identified with such a preference. Single Agency The practice of representing either the buyer or the seller but not both in the same transaction. Special Agency An agency relationship where an agent is authorized by a principal to perform one particular act or transaction. Special Assessment A tax on property owners in the area of an improvement such as new curbs and gutters. Specific Lien A claim against a piece of property. Specific Performance An action brought by a court to force a party to carry out the terms of a contract. Spot Zoning Occurs when a single parcel is granted special privileges that are not extended to other land that is similarly situated. Permissible when in the public interest. Statute of Frauds The statute requiring that all contracts that transfer an interest in real estate are in writing, state the date, describe the property, state the terms of payment, and be signed by the party incurring the debt. Statute of Limitations The law pertaining to the period of time during which certain actions must be brought to court or the right to sue is lost. Statutory Authorized by statute or state law. Statutory Lien A lien created by the enactment of a law established by legislation. Steering The illegal practice of channeling home seekers to or away from certain areas. Stigmatized Property A property defect which is more psychological than material. Strict Foreclosure A method of foreclosure where the seller sues the defaulted buyer for possession of the property. In Wisconsin, strict foreclosure is permitted in land contracts.

346

Glossary

Subagent A firm who is engaged by another firm to provide brokerage services in a transaction, but who is not associated with the firm. Subject Property A reference to the real property under an appraisal. Substitution A property’s value is determined by the cost of acquiring an equally desirable substitute property. Sue for Damages A remedy for breach of contract whereby a party sues the breaching party for cash ­damages. Suit to Quiet Title A court action intended to establish the title to a particular property where there is a cloud on title. Supply and Demand Economic theory of pricing stating that demand increases price and that over-supply reduces price. Survey A process by which the physical boundaries of a property are measured. Survivorship Marital Property A classification of property ownership in Wisconsin. Upon the death of a spouse, all property passes to the surviving spouse without going through probate.

T

Target Housing Housing where construction began or for which a building permit was issued prior to January 1, 1978. Transactions involving target housing require leadbased paint disclosures prior to binding acceptance of an offer. Target housing does not include housing for the elderly, housing for the disabled or 0-bedroom dwellings. Taxation The right of a government to place a charge on real estate to raise funds to meet the public need.

Tenant in Common A form of ownership where two or more people hold title on the same property. Each ­person’s interest is held in severalty and each person retains the right to will away the person’s interest. Tie-in Agreement Selling one product only if the buyer agrees to purchase another product. Time is of the Essence The specified date in the contract by which agreed-upon acts must be completely performed or the non-performing party will be in breach of the contract.

347

REAL ESTATE SALES

Title The legal right to the possession of property. It implies that the title owner has acquired the property and the bundle of legal rights that accompany ownership. Title Insurance Policy An insurance policy that protects the insured against loss or defects that may occur in the title. Trade Fixtures (Chattel Fixtures) Items of personal property that have become permanently attached to leasehold property and are used for the purpose of operating a trade or business. Trade Name A name filed with the department under which a firm provides services. Transfer Fee A state-imposed fee on the sale of property. The fee is 30 cents for each $100 of value that a party transfers. Triggering Terms Advertising phrases that may not be used unless all of the terms of the loan are disclosed in the advertisement. Truth in Lending Act A law enforced by the Federal Trade Commission requiring lenders to disclose to borrowers the true cost of obtaining credit.

U

Underground Storage Tank (UST) Tanks used in the storage of fuel or heating oil for non-commercial purposes or ­consumptive use. Unenforceable Contract A contract whereby neither party can sue the other for performance. However, an ­unenforceable contract may be valid between the parties by their mutual agreement.

Unilateral Contract A one-sided agreement where one party makes a promise to another and is bound by the promise. The second party is not bound. Unlicensed Personal Assistant Person not licensed under Chapter 452 or licensed but not employed for the purpose of providing services for which a license is required. Use-value Assessment A method of assessing Wisconsin agricultural land for property tax purposes. The land is assessed based upon its agricultural productivity rather than its potential for development or fair market value.

V 348

Valid Contract A contract that contains all of the necessary elements and is enforceable in a court of law. Variance Grants permission to deviate from a zoning restriction.

Glossary

Vendee The purchaser of realty under a land contract. Vendor The seller of realty under a land contract. Veteran’s Administration Loans (VA) A government-sponsored mortgage assistance program, where eligible veterans or ­unmarried widows of veterans who died in service may obtain partially guaranteed loans for the purchase or construction of a home. Volatile Organic Compound (VOC) Widely used as cleaning and liquefying agents in fuels, paints, degreasers, solvents, polishes, cosmetics, and dry cleaning solutions. Void Contract An unenforceable contract that lacks legal purpose or essential requirements. Voidable Contract A contract that can be voided by an injured party. Voluntary Lien A lien created by the debtor’s action.

W

Warranty Deed A deed in which the grantor warrants clear title to the property. Wetland An area where water is at, near, or above the land surface long enough to be capable of supporting aquatic or hydrophytic vegetation.

Writ of Attachment The method by which the court gains custody of a deed to assure that the collateral will not be sold without satisfaction of a court ordered judgment. Writ of Execution A court order instructing the officer of the court to carry out the decision of the court.

Z

Zoning The laws that determine how land may be used so that an area has orderly development and there is a minimization of conflicts between incompatible land uses.

349

Math Appendix

I.

Problem Solving Tips



A) Read the question carefully



B) Identify and label all of the numbers in the question



C) Determine the appropriate formula to use to solve the problem



D) Calculate the answer



E) Verify that your answer is actually answering the question

II.

Math Terminology

A) Annual: yearly B) Biannual: twice a year C) Biennial: every two years D) Capitalization rate: used to calculate the rate of return on an investment E) Fraction: one or more parts of a whole F) Income: the amount of money that a property produces G) Interest: the cost of borrowing money H) Linear: measurement made on a line I) Mill: a tax rate expressed as so many mills on each dollar; 1/1000 of a dollar J) Percentage: per hundred K) Principal: the amount of money borrowed L) Quarterly: four times a year M) Tax: money paid in order to fund government programs N) Time: a specific measured period III.

Measurements

A) Linear: to calculate add the units together.  1 foot        + 1 foot       + 1 foot = 3 linear feet or 1 yard B) Area (square): to calculate area, multiply length by width. 5 feet

20 feet



20 feet x 5 feet = 100 square feet

350

REAL ESTATE SALES

C) Volume (cubic): to calculate volume, multiply length by width by height.

3 feet x 3 feet x 3 feet = 27 cubic feet



3 feet

3 feet

3 feet

IV.

Units of Measure



A) 12 inches = 1 foot



B) 3 feet = 1 yard



C) 5,280 feet = 1 mile



D) 1 section = 1 square mile



E) 43,560 square feet = 1 acre



F) 640 acres = 1 section



G) 36 sections = 1 township square



H) 1 township square = 36 square miles

V.

Converting Percentages

A) Converting % to fraction 25% = 25/100 = 1/4 B) Converting % to decimal: drop the percent sign and move the decimal two places to the left. 25% = .25

351

C) Converting decimal to percent: move the decimal two places to the right and add the percent sign. .25 = 25%

Amortization Chart

Amortization Chart

Loan Payment Factors Principal and Interest Factors Per $1000 of Loan Amount Based upon Monthly Payments RATE 30yrs 25yrs 20yrs 15yrs 7.000 6.65 7.07 7.75 8.99 7.125 6.74 7.15 7.83 9.06 7.250 6.82 7.23 7.90 9.13 7.375 6.91 7.31 7.98 9.20 7.500 6.99 7.39 8.06 9.27 7.625 7.08 7.47 8.13 9.34 7.750 7.16 7.55 8.21 9.41 7.875 7.25 7.64 8.29 9.48 8.000 7.34 7.72 8.36 9.56 8.125 7.42 7.80 8.44 9.63 8.250 7.51 7.83 8.52 9.70 8.375 7.60 7.97 8.60 9.77 8.500 7.69 8.05 8.68 9.85 8.625 7.78 8.14 8.76 9.92 8.750 7.87 8.22 8.84 9.99 8.875 7.96 8.31 8.92 10.07 9.000 8.05 8.39 9.00 10.14 9.125 8.14 8.48 9.08 10.22 9.250 8.23 8.56 9.16 10.29 9.375 9.32 8.65 9.24 10.37 9.500 8.41 8.74 9.32 10.44 9.625 8.50 8.82 9.40 10.52 9.750 8.59 8.91 9.49 10.59 9.875 8.68 9.00 9.57 10.67 10.000 8.78 9.09 9.65 10.75 10.125 8.87 9.18 9.73 10.82 10.250 8.96 9.26 9.81 10.90 10.375 9.05 9.35 9.90 10.98 10.500 9.15 9.44 9.98 11.05 10.625 9.24 9.53 10.07 11.13 10.750 9.33 9.62 10.15 11.18 10.875 9.43 9.71 10.24 11.29 11.000 9.52 9.80 10.32 11.37 11.125 9.62 9.89 10.41 11.44 11.250 9.71 9.98 10.49 11.52 11.375 9.81 10.07 10.58 11.60 11.500 9.90 10.16 10.66 11.68 11.625 10.00 10.26 10.75 11.76 11.750 10.09 10.35 10.84 11.84 11.875 10.19 10.44 10.92 11.92

RATE 30yrs 25yrs 20yrs 12.000 10.29 10.53 11.01 12.125 10.38 10.62 11.10 12.250 10.48 10.72 11.19 12.375 10.58 10.81 11.27 12.500 10.67 10.90 11.36 12.625 10.77 11.00 11.45 12.750 10.87 11.09 11.54 12.875 10.96 11.18 11.63 13.000 11.06 11.28 11.72 13.125 11.16 11.37 11.80 13.250 11.26 11.47 11.89 13.375 11.36 11.56 11.98 13.500 11.45 11.66 12.07 13.625 11.55 11.75 12.16 13.750 11.65 11.85 12.25 13.875 11.75 11.94 12.34 14.000 11.85 12.04 12.44 14.125 11.95 12.13 12.53 14.250 12.05 12.23 12.62 14.500 12.25 12.42 12.80 14.750 12.44 12.61 12.98 14.875 12.54 12.71 13.08 15.000 12.64 12.81 13.17 15.125 12.74 12.91 13.26 15.250 12.84 13.00 13.35 15.375 12.94 13.10 13.45 15.500 13.05 13.20 13.54 15.625 13.15 13.30 13.63 15.750 13.25 13.39 13.73 15.875 13.35 13.49 13.82 16.000 13.45 13.59 13.91 16.125 13.55 13.69 14.01 16.250 13.65 13.79 14.10 16.375 13.75 13.88 14.19 16.500 13.85 13.98 14.29 16.625 13.95 14.08 14.38 16.750 14.05 14.18 14.48 16.875 14.16 14.28 14.57 17.000 14.26 14.38 14.67

15yrs 12.00 12.08 12.16 12.24 12.33 12.41 12.49 12.57 12.62 12.73 12.82 12.90 12.98 13.07 13.15 13.23 13.32 13.40 13.49 13.66 13.83 13.91 14.00 14.08 14.17 14.25 14.34 14.43 14.51 14.60 14.69 14.77 14.86 14.95 15.04 15.13 15.21 15.30 15.39

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