Would the new Time of Sale Requirement ( TOS ) law delay closing or create more seller finance opportunities in Milwaukee?
Per Wisconsin Realtors Association
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“ On July 12, 2015 state budget into law (2015 Wis. Act 55). One provision
of great importance to the real estate industry is the new restriction on local
time of sale (TOS) requirements (section 4595c).
-> What is a TOS requirement? A TOS requirement is an obligation that must
be performed prior to closing when a property is sold; essentially it’s a
condition of closing imposed by local government. For example,
a city requirement that the property must be inspected by a city inspector
and noted items repaired before the property can be sold, or a community
requirement that a multi-family property must be retrofitted for sprinklers
prior to the sale of the property.
-> How do TOS requirements impact real estate transactions? While some
TOS requirements appear minor on the surface, others are more significant
such as requiring a property owner to pave a gravel driveway prior to the
sale of their property. TOS requirements often create confusing and
complex hurdles resulting in delayed closings and additional costs.
What is the new law? • Newly created Wis. Stat. § 706.22 stops
local governments (cities, villages, counties, towns, etc.) from creating
or enforcing TOS requirements. • Bars local governments from restricting
the owner from selling or transferring title by requiring compliance with an
ordinance or paying a related fee at the TOS. • The prohibition applies to
the sale, refinancing, transferring of title before, at the time of the event or
within a certain period of time after the event. • Bans a TOS requirement
related to the following: inspections; improvements or repairs; removing junk
or debris; mowing or pruning; performance of maintenance or upkeep
activities; weatherproofing; upgrading electrical systems; replacing or
installing fixtures or other items; and actions relating to compliance with
building codes or other property condition standards. • Existing TOS
requirements are unenforceable. • Statewide TOS requirements could
still be imposed. When do the restrictions on local TOS requirements
go into effect? The restrictions on local TOS requirements go into
effect on Tuesday, July 14, 2015. Beginning on this date, local governments
may no longer enforce new or preexisting TOS requirements. “