Legal Question in Real Estate Law in Wisconsin

RE Condominium Sales Prorations Real estate

I could not begin to advise you without seeing all of your sales contract paperwork as well as your condo association rules (including those pertaining to the savings account for assessments which you describe). At real estate closings in WI, property taxes and other municipal assessments are generally handled via calculating a per diem cost, then prorating that amount over the year of the sale. The seller gives the buyer a credit at closing for all days when the buyer owned the property. This compensates that seller in advance for the yearly bill he will later receive. This would certainly be a fair way to handle condo assessments as well, but I do not know what your contract anticipates. Yours might also be a multi-year assessment which further complicates how to pro-rate it. And, if it is all for future work from which the seller has received no benefit prior to closing, there is a good argument that it should be solely the buyer's problem. In WI,however, sellers are required to disclose known special assessments of certain types in the property condition report. Sellers can be sued for misrepresentation if they do not disclose such a known upcoming assessment, and can also be liable for the actual reasonable attorney fees incured by the buyer to sue them and also even punitive damages in flagrant cases. If this is disclosed, the buyer will likely demand a proration. Whether or not will prevail will depend upon the legal rules pertaining to contract interpretation, if the answer is not clearly spelled out in the sales contract/offer acceptance documents.

Re: Real estate

This is not an easy question and the answer depends on what you knew at the time you entered into the contract and what was disclosed to the buyer as well as the status of the assessments by the association. The reason we need to know about what was disclosed to the buyer is because the real estate condition report discusses whether you are aware of proposed or pending assessments. As a result the answer to your question will be fact specific. You really need to consult with an attorney about the specifics of this transaction to get an idea of your legal rights and responsibilities. I am not working full time during the holidays and am unable to take on this work at this time. If you require immediate assistance I would contact Ethan Miller at 608.256.7902. Thanks. Jason Greller.