Welcome to the Wisconsin REALTORS®Association’s Distance Learning On Demand! Distance Learning On Demand is the most convenient method available from the WRA to complete your continuing education requirement.

The course is broken into chapters varying in length from 20 to 40 minutes. At the conclusion of each chapter video, you will be required to complete a short quiz. Each chapter video must play through from start to finish or you will not be able to advance to the next section. If you do not pass the quiz, you will need to wait 1 hour to re-take the quiz. Once all the chapters and corresponding quizzes are complete, you will be able to advance to the final exam. After you pass the exam, you can print your certificate of completion. If you do not pass the exam, you will need to wait 4 hours to re-take the exam.

Here are a few suggestions for completing the courses as efficiently as possible:

1. Ensure you meet the system requirements at the location where you plan to view your videos. Requirements can be found at: www.wra.org/dlodreq

2. Close all other software applications.3. Make sure only 1 copy of the video player is open.

Accessing your videos:

1. You will be able to re-access courses via myWRA at: www.wra.org/mywra

We have addressed other questions and concerns on the Frequently Asked Questions below.

Thank you for choosing the WRA for your continuing education needs!

FREQUENTLY ASKED QUESTIONS

Can I watch chapters out of order?No, each chapter video will be locked until completed. However, you will have the ability to watch them in any order after completion.

How do I switch to a new chapter?After you complete a chapter, the next available chapter will be highlighted in green. Simply click the highlighted chapter to begin. Please note that you must complete each chapter video and quiz to advance to the next chapter.

What are quizzes?The quizzes are a required part of Distance Learning On Demand. You must complete the quizzes before advancing to the next chapter. Each chapter has a bank of two questions. To take a quiz, simply click the quiz icon. Once you’ve taken and passed a quiz, the icon will show a check mark to verify completion.

RW ADISTANCE LEARNINGW AON DEMAND

Chapters Tab

What is the difference between a quiz and exam?Quizzes are mini-exams comprised of two questions. You must complete all quizzes before taking the final exam. The exam is your final test. You can take your final exam after you’ve completed watching all chapters and have taken all quizzes. Once you’ve passed the exam you will receive your certificate.

How do I take a quiz?In the “Chapters” tab in the far right column, find a label for “Quiz.” After completing the chapter video simply click the chapter quiz icon to proceed. Each quiz includes two questions.

How do I know if I passed all quizzes?In the “Chapters” tab, far right column, find a label for “quiz.” When you have completed a quiz, a checkmark will appear in the Quiz icon. If your icon is still locked or highlighted, you still need to complete that quiz before proceeding to the next video and/or final exam.

What is the “Notes” tab for?

The “Notes” tab is a place for you to take your notes on screen without leaving the video interface. If this functionality were not available you would need to take your notes manually. These WILL automatically save for you. You may want to print your notes and attach them to the outline for future reference.

What is the “outline” tab for?The “Outline” tab is an easy way to access a specific topic in a chapter. Simply click a link in the outline and you can instantly access the corresponding content in the video. It’s perfect for accessing a topic you would like to re-watch.

Exam Tab

Notes Tab

Outline Tab

I have no volume/sound.To troubleshoot sound, perform the following steps:

1. Can you hear sounds from other Windows applications?2. Make sure the volume slider in the player is turned up.3. Access your volume control panel in Windows (Accessories, Entertainment, Volume Control) and ensure

your sound is not muted.4. Double check your speaker connection in the back of the sound card, making sure it is plugged into the

right port.5. If all tests fail and you still do not have sound either from the player or other Windows-based applications,

contact your local computer technician.

My video is stuttering, pausing and stopping. How can I fix this problem?1. It is likely you are short on bandwidth. Internet Service Providers (ISPs) can have times when traffic is at

a maximum; thus slowing your connection. The WRA provides other feed options you can access that requires less bandwidth. To drop bandwidth, use the drop down box located under “Help” in the upper right-hand corner of the Media Player. The default bandwidth is 1000kbps.

2. Press the F5 key on your keyboard to refresh the player.3. Log-out of the website, then log back in.

If after dropping bandwidth you do not see an improvement in performance, what can I try next?1. Re-test your bandwidth making sure your download speed is at least 512 Kbps by following this link:

www.wra.org/bandwidthcheck2. Try connecting to a landline. Often wireless connections do not run smoothly which causes the video to

continuously stop-and-start.3. Try switching computers to see if you get the same result

Other Problems?For other problems please call the Wisconsin REALTORS® Association at 1-800-279-1972.

Troubleshooting

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2011-2012 Real Estate Continuing Education Program

Elective C - Other Approved Forms

During the 2011-2012 licensing biennium, Wisconsin real estate licensees must complete 18 hours of continuing education to be eligible for license renewal. To remain active, licenses must be renewed by December 14, 2012. Successful completion of the required continuing education may be accomplished by taking six Wisconsin approved courses worth three credit hours each. Licensees must take four mandatory and two elective courses and pass an examination for each course. The Wisconsin REALTORS® Association offers a total of eight continuing education courses to choose from, all of which are Wisconsin approved for license renewal requirements for the 2011-2012 biennium.

Licensing Renewal

A licensee, when submitting a license renewal application, must show completion of 18 hours of Wisconsin approved continuing education. Persons granted an original broker or salesperson license during the 2011-2012 biennium are not required to complete continuing education during the 2011-2012 licensing period. Only courses approved for 2011-2012 may be applied for credit. This course and exam qualifies for three hours of the required continuing education.

To apply for license renewal by December 14, 2012, a licensee must submit the course name, the course provider, and the date of successful completion of each continuing education course completed. At the time of renewal, licensees do not have to submit Certificates of Completion with the application. Wisconsin conducts audits of license renewals. Selected individuals will be asked to produce documentation in the form of a Certificate of Completion for each continuing education course.

Duplicate Certificates

Requests for a duplicate WRA course Certificate of Completion must be made within 60 days of completing a course. Requests for duplicate certificates made more than 60 days after completion must be in writing, accompanied by a $10 fee, and submitted to the Wisconsin REALTORS® Association, 4801 Forest Run Rd., Suite 201, Madison, WI 53704-7337. Individuals may print duplicate certificates free by logging into myWRA at www.wra.org.

Additional Resource

Answers for questions presented in this outline are available at http://www.wra.org/Education/Online/RECE/Real_Estate_CE_Exam_Practice_Questions/. Select the biennium followed by the PDF document for the desired course.

Special acknowledgement to the WRA Legal Department for the use of various Legal Updates, Hottips, and other WRA co-authored and sponsored publications.

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.

Copyright 2011 by

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Elective C – Other Approved Forms

I. Use of Approved Formsa. Wis. Admin. Code § RL 16.02(5) prohibits the “use” of unapproved

forms.i. Use is defined to mean completion of a form by filling in the blanks. ii. If a broker signs a listing contract presented by a seller on an

unapproved form the broker is not “using” it under the rules by signing the contract.

b. Licensees are prohibited from altering Department approved forms and must place additional material in the blank lines provided on the approved forms or use addenda. i. Wis. Admin. Code § RL 16.06(1) prohibits the altering of approved

forms by placing blank lines containing inserted provisions between provisions of the form text or adding text in white spaces in such a way as to create the appearance and implication that the changes are approved by the Department.

ii. Additional material must be placed on blank lines on an approved form or included in addenda.

c. Licensees can insert contingencies and other provisions as is necessary to modify approved contracts to accomplish the true intent of the parties.i. Ask the parties what they really want.

1. Do not just attach standard addenda. 2. Customize the offer to reflect the true intentions of the parties

instead of just filling in the blanks.ii. Line out items.

1. Licensees can to cross out provisions on approved forms to reflect the agreement of a party to a transaction provided that the deleted provisions remain legible. Wis. Admin. Code § RL 16.06(3).

2. When lining out preprinted provisions, licensees must take care to ensure that the original provision remains legible.

3. Whiteout and thick marker pens are not acceptable options. iii. Make sure modifications make sense.

1. Pay attention to sentences and make sure that the contract still makes sense after writing in any modifications.

2. Have a neutral person read the modified provisions see if that person can readily discern the parties’ intent.

3. If a neutral reviewer cannot discern the parties’ intent, the modifications should be revised to clearly express the intent of the parties.

iv. Set deadlines the parties can meet. 1. Clearly set the date of performance for satisfying each

contingency.2. Make them realistic, allowing for common delays and the

individual circumstances of the parties. v. Provide clear indicators of contingency completion.

1. A clause should require clear evidence of the satisfaction or non-satisfaction of a contingency.

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2. Requiring a specific act to advise the parties of the outcome of the contingency is better than leaving the parties to wonder what is to happen when the end of a contingency period is met with silence.

vi. Avoid ambiguity. 1. If a licensee or party does not clearly understand a provision,

avoid ambiguity and counter to seek clarification. 2. Do not rely upon verbal supplementary explanations if the

written document is not clear.vii. No signatures on blank forms.

1. Do not allow a party to sign an incomplete form with provisions to be completed later.

2. This is incompetent practice that does not fulfill the goal of making sure that the completed contract reflects the parties’ intent.

d. Licensees should use the blank lines provided in the approved forms. e. Licensees may also attach an addendum as authorized under Wis.

Admin. Code § RL 16.06(4) and (5) when additional provisions or language are desired to reflect the contractual intent of the parties.

f. Goals of the coursei. Review how to properly use approved forms. ii. Provide instruction on the use of addenda to achieve the intent of

the parties. iii. Look at proper drafting techniques for all approved forms. iv. Review the use of WB – 40 Amendment to Offer to Purchase, WB

– 41 Notice Relating to Offer to Purchase, WB – 44 Counter-Offer, WB – 45 Cancellation Agreement & Mutual Release, WB – 46 Multiple Counter-Proposal, and WB – 25 Bill of Sale.

v. All covered documents are included in the appendix.

II. Use of Addendaa. Addenda come in two varieties.

i. Drafted addendum1. A licensee may draft an addendum with provisions necessary

for a particular transaction, subject to office policy. 2. This is a one-time use addendum customized to reflect a set of

circumstances. ii. Pre-prepared addendum

1. Pre-prepared addenda may be included as additions to an approved form and must comply with Department license law rules.

2. Wis. Admin. Code § RL 16.06(4) provides that a licensee may use a pre-prepared addendum containing provisions that relate to the information that would be filled in on the blanks on a Department approved form, or that modify or supplant the optional secondary offer provision or the optional contingencies for financing, sale of buyer’s property or inspection that are set forth in the Department approved offer, exchange, or option forms.

3. A broker or a broker’s attorney may prepare this addendum.

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4. Under Wis. Admin. Code § RL 16.06(5), a licensee may use a pre-prepared addendum that supplants or alters the printed provisions of a Department approved form that are not optional.

5. The addendum must be drafted by an attorney who is identified on the addendum and there cannot be blanks, fill-in, optional, or multiple-choice provisions in the addendum other than spaces for the signatures of the parties and for incorporating the addendum by reference into an approved form.

6. If an addendum rewrites provisions of an offer that are not optional, it must be drafted by an attorney.

7. Examples of pre-prepared addenda drafted by attorneys include the various addenda developed by local associations to address common concerns present in that market area.

8. Pre-prepared addenda provide variations on the optional contingencies found in the approved forms and provisions on issues of local concern.

9. Many of these forms are available on zipForm.b. Incorporate all addenda by reference.

i. A licensee must incorporate the addendum by reference into the approved form and relate the approved form and the attached addenda to one another.

ii. An addendum does not need to be initialed or signed to be a part of the offer.

iii. If an addendum is properly incorporated into an offer to purchase, the terms and conditions of the addendum become a part of the offer.

iv. Brokers should confirm that all addenda are referenced in an offer, delivered to the parties and, when possible, initialed or otherwise acknowledged to minimize the potential for later disputes.

v. Wis. Stat. § 706.02(2) provides that additional terms and conditions can be added into a conveyance, such as a deed or an offer to purchase: 1. By specific reference to separate writings in existence at the

time when the conveyance is signed; 2. By physically attaching two or more writings to one another, with

the mutual consent of the parties; or 3. If separate writings show expressly on their faces that they refer

to the same transaction and the parties mutually acknowledge by conduct or agreement that the writings taken together document the transaction.

III. When an Attorney Should Do the Drafting?a. Some provisions should not be drafted by real estate licensees. b. An attorney should draft provisions such as environmental liability

waivers and complex title warranties, or agreements, such as letters of intent or rights of first refusal.

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IV. WB – 44 Counter-Offera. A counter-offer is used when the parties are still negotiating the

terms and conditions of a contract prior to acceptance and binding acceptance.

b. A counter-offer is a rejection of a prior offer or counter-offer and is a new offer.

c. Regardless of the seller’s action on the buyer’s original offer, the buyer may use a counter-offer to modify an offer for the seller’s consideration.

d. Offer negotiations do not require a back-and-forth pattern. i. A buyer can counter his or her own offer.ii. Alternately, a buyer could submit a new offer presuming it is not

being done as part of a fraudulent scheme. iii. If a new offer is used, a buyer must address property condition

disclosures, new timelines created by the new offer, and revisions to items to be included or excluded in the transaction.

e. A counter-offer may be used if an offer or counter-offer has expired or was rejected.

f. A party who writes a counter-offer that was not accepted may write a new counter-offer.

g. Each counter-offer is a new offer that incorporates the unchanged terms of the original offer and the new terms in the counter-offer.

h. All terms and conditions of the original offer to purchase remain the same except as stated in the final counter-offer accepted by the parties.

i. A counter-offer that references specific line numbers, sections, or dates provides the most protection against a misunderstanding between the parties.

j. If there are contract terms that create ambiguity in application, a new counter-offer should be drafted to express clearly the intentions of the parties.

k. The terms of the final contract are those stated in the original offer to purchase and the changes stated or referenced in the counter-offer that is accepted.

l. Terms and conditions stated in intervening counter-offers are not included.

m. Licensees should ensure that the final counter-offer does not omit any provisions the parties intended to include.

n. Counter-offers are to be drafted and numbered sequentially. For example, counter-offer #1 by the seller, counter-offer #2 by the buyer.

V. WB – 46 Multiple Counter-Proposal a. The WB – 46 Multiple Counter-Proposal presents a viable legal

method to continue negotiations with all buyers. b. Sellers can use the WB – 46 to issue distinct non-binding proposals to

each buyer. c. The proposal is a statement of terms acceptable to the seller.

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d. The WB – 46 Multiple Counter-Proposal is a formal alternative to simply telling each buyer to draft a new and more attractive offer. i. Each buyer is able to consider the proposal, accept it, reject it or let

it die. ii. A buyer can submit a new offer or counter-offer based on a seller’s

counter-proposal. e. Different proposals may go to different buyers.

i. For example, one WB – 46 issued by the seller may increase the price while another changes the closing date.

ii. Buyers will not know the terms of counter-proposals submitted to other buyers.

f. If a buyer accepts a seller’s counter-proposal, it becomes an offer from a buyer to a seller that can be confirmed (accepted) by a seller to create a binding sales contract.

g. A seller may receive more than one accepted counter-proposal back, at which time the seller would consider which offer was more attractive.

h. A seller could accept the best offer and let the other offers die or could counter them as secondary offers.

i. A seller is not required to respond to any offers.i. Sellers should make decisions on offers based upon legitimate

reasons. ii. Rejecting offers for discriminatory reasons could violate the Fair

Housing Act. iii. A seller trying to achieve higher-priced offers could use multiple

counter-proposals requesting an increase in the offered prices and buyers who chose not to increase the offered price would drop out of the pool of potential buyers.

iv. It is a seller’s decision whether to sell the property, to whom and at what terms.

j. When a seller is negotiating with one buyer, the WB – 46 Multiple Counter-Proposal would not ordinarily be appropriate. i. A standard WB – 44 Counter-Offer would be used in most cases.ii. In this situation, a seller may assume that the current offer is the

only offer and proceed with the standard WB – 44 Counter-Offer. iii. If a seller received a second offer before the first buyer accepts the

counter-offer, a seller may withdraw the counter and submit a WB – 46 Multiple Counter-Proposal.

iv. If a seller wished to submit a non-binding proposal to just one buyer, a WB – 46 could be used if it was modified to eliminate all references to multiple buyers.

v. An affirmative statement that a seller is issuing only one multiple counter-proposal is also advisable.

vi. A licensee involved in such a transaction could be subject to liability for misrepresentation if a buyer was not clearly informed in writing that only one buyer was receiving the multiple counter-proposal.

If a seller has more than one offer but only counters one of the offers, can they use form WB – 46 or must WB – 44 be used?

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VI. WB – 40 Amendment to Offer to Purchasea. Once there is an accepted offer, an amendment is the proper form to

use to modify any of the terms and conditions of the offer.i. Acceptance and binding acceptance are defined in the WB – 11

Residential Offer to Purchase. ii. An offer is accepted even if it is subject to contingencies for home

sale, inspection, or short sale lender approval. b. An amendment is used when parties want to modify the terms of an

accepted offer. c. An amendment has no effect on an offer unless all parties agree.

i. An amendment must be signed and delivered back to the originating party within the time allowed.

ii. If the party declines to sign an amendment, the amendment has no effect on the accepted offer and the offered amendment will expire by the passage of time.

iii. In this case, a party proposed a change but without mutual agreement the offer remains as it was before.

d. To reject an amendment, a party documents rejection on line 42 of the WB – 40.

VII. WB – 41 Notice Relating to Offer to Purchase a. The WB – 41 Notice is used when one party gives a notice that does

not require the other party’s agreement. b. A notice can be used by a buyer to give a seller a notice of defects or

by a seller to give a notice to a buyer that the seller is electing or not electing to cure defects.

c. The WB – 41 Notice Relating to Offer to Purchase includes the following language relating to the withdrawal of a notice:i. Withdrawal Warning: Once delivered, a Notice cannot be withdrawn

by the Party delivering the Notice without the consent of the Party receiving the Notice.

ii. A party delivering a WB – 41 Notice Relating to Offer to Purchase cannot withdraw the notice without the other party’s consent.

iii. A WB – 40 Amendment to Offer to Purchase may be used to document the parties’ agreement to the withdrawal of the Notice of Defects.

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d. The inspection contingency provides for a home inspection by a Wisconsin registered home inspector. i. If the home is not going to be inspected by a Wisconsin registered

home inspector, the buyer may wish to modify the inspection contingency to indicate who will be performing the home inspection.

ii. The seller may then decide if this is acceptable when deciding whether to accept, reject, or counter the buyer’s offer.

e. The inspection contingency has been designed so that the parties may also require additional concurrent inspections by qualified inspectors of particular features or components. i. A buyer who wants additional items inspected may designate those

items in the blank lines included in the contingency. ii. For inspection of other items such as a furnace, the buyer may

want to have a furnace contractor inspect that component. iii. The expert’s inspection of a particular component may be indicated

on the lines at the beginning of the inspection contingency in the offer.

f. Home inspection deadlinei. The deadline marks when a contingency is deemed satisfied if a

buyer has not given the seller a notice of defects. ii. When drafting an offer with a home inspection contingency, a

licensee must be sure to include a deadline that gives the parties sufficient time to accomplish the inspection, review the report, complete any additional inspections if recommended, and complete the back-and-forth negotiations before the buyer decides whether to give a notice of defects.

g. Amendment vs. noticei. The WB – 41 Notice Relating to Offer to Purchase is used if one

party is giving a notice which does not require the other party’s agreement.

ii. A notice should be used to give a notice of defects or a seller’s notice of electing or not electing to cure defects.

iii. A notice of defects should be prepared on the WB – 41 Notice Relating to Offer to Purchase.

iv. The inspection contingency specifically cautions that “A proposed amendment will not satisfy this notice requirement.”

v. Licensees must be clear when preparing a notice of defects for a buyer.

vi. Drafting a notice of defects1. The WB – 41 should specify, “This is a notice of defects. The

buyer objects to the following defects which appear in the attached copy of the inspection report of XYZ.”

2. Defects to which the buyer objects are then listed in the notice. 3. A notice of defects must be accompanied by a copy of the

inspection report and must be delivered to the seller and the listing broker by the specified deadline.

4. If a buyer wants to have a credit or wants the seller to use a specific contractor to repair defects, the buyer does not include those details in a notice of defects.

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5. These are extras, or specific requests that go beyond the procedure in the inspection contingency and should be addressed in an amendment rather than in a notice of defects.

6. To have these details incorporated in an offer, a buyer should propose an amendment to the offer.

7. The seller may or may not agree to the buyer’s request.vii. WB – 40 Amendment is used if the parties want to modify the

terms of an accepted offer. 1. An amendment should be used to document any new

agreement made by both parties regarding repair of defects. 2. A buyer could submit an amendment to a seller requesting that

the seller repair only some of the defects rather than the “all or nothing” process triggered when giving a notice of defects to a seller.

3. By using an amendment rather than giving a notice of defects, a seller and a buyer can negotiate further regarding defects, repairs, and costs involved.

4. For example, a buyer could submit an amendment to a seller requesting that the seller repair an electric wiring problem and replace the roof.

5. The seller may agree to repair the electric wiring problem but decline the buyer’s request for a new roof.

6. A WB – 40 may be used to specify the method or manner the seller will use to cure a particular defect in lieu of the “good and workmanlike manner” standard stated in the inspection contingency.

viii. Such an amendment may state “This is not a notice of defects. Seller agrees to [(cure the following defects in the specified manner) (give the following credit at closing) (establish the following repair escrow)-give details, time frames, etc.]. The Inspection Contingency at lines XXX-XXX of the offer is hereby deleted.”

ix. The seller then has the option to accept or reject the buyer’s proposed amendment or propose a different amendment back to the buyer.

x. A buyer’s proposed change has no effect unless the seller agrees and signs the amendment.

xi. If a seller declines to sign, this has no effect on the accepted offer. xii. A proposed amendment does not trigger a seller’s right to cure

provisions. xiii. Licensees must pay attention to a buyer’s deadline for giving a

notice of defects when attempting to use amendments to address defects. 1. A buyer’s use of amendments to address defects does not alter

a buyer’s deadline for providing notice of defects to a seller. 2. If a seller does not accept a buyer’s proposed amendment and

the deadline for providing a notice of defects passes, the buyer will have accepted the property as is.

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xiv. Providing an amendment and notice simultaneously1. This combination should be used with great care. 2. When a buyer wishes to propose an amendment, but does not

want to risk missing the deadline for giving a notice of defects, this strategy may be employed. The notice may begin, “If seller has not signed and delivered the buyer’s proposed amendment dated _____, by [insert amendment acceptance deadline], the following notice of defects is hereby given: [list items cited in the inspection report to which the buyer objects]. This notice of defects is invalid if the seller timely accepts the buyer’s proposed amendment.”

VIII. WB – 45 Cancellation Agreement & Mutual Release a. The Cancellation Agreement & Mutual Release (CAMR) provides that

the parties release all rights and interest in the contract and directs the broker to disburse the earnest money.

b. Once a CAMR is signed and delivered, it would be appropriate to use a new offer and obtain new earnest money.

c. Prior to a CAMR, parties could agree to modify an offer by the use of an amendment.

d. The WB – 45 CAMR is a form which permits the parties to an agreement or contract to cancel the contract and to authorize any real estate broker holding funds on behalf of the parties to disburse those monies.

e. A CAMR is intended to be used in a purchase transaction though the actual use of the form is more extensive such as for the release from an agency agreement.

f. In previous revisions of the CAMR, the Department expanded the potential range of uses for the updated WB – 45 CAMR.

g. Instead of limiting the references in the form to buyers and sellers, the CAMR instead refers to the “Parties.”

h. “Parties” are identified in the underlying agreement. i. For example, if a CAMR is used with the WB – 11 Residential Offer to

Purchase, it is evident that the parties referred to in the CAMR are the buyer and seller in the underlying offer.

j. The CAMR contains language that cancels the identified agreement. k. The CAMR states that the parties agree that the agreement “be

cancelled and the Parties hereby release all of their right, title, and interest in and to the Agreement, and any and all claims arising out of the transaction.”

l. This language makes it clear that a party signing the CAMR is releasing all claims against the other party and will not be able to sue the other party regarding any matter relating to the agreement and the transaction.

m. By using a CAMR, the parties authorize a broker holding transaction trust funds to disburse the specified amounts to the named persons at the stated addresses.

n. The CAMR does not specify listing, selling or buyer’s broker, so the form will legitimately pertain to the broker who is holding the trust funds.

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o. CAMR mechanicsi. A party should not sign a CAMR if he or she intends to sue the

other party.ii. Use a CAMR to cancel accepted contracts.iii. A broker may disburse earnest money in good faith based upon a

signed CAMR.iv. A broker may disburse earnest money based upon written

disbursement agreements other than a CAMR.v. There is no need to name a broker in the CAMR.

A buyer breached an offer to purchase. The buyer has asked to be released and would like to pay the earnest money to the seller as liquidated damages. The seller will not sign the CAMR. Another offer to purchase has been received. The seller’s attorney has advised the seller that they can enter into another offer to purchase and sell the home without the first issue being settled. What should a licensee tell the seller?

IX. WB – 25 Bill of Salea. A bill of sale is a document used to transfer title to personal property. b. The WB – 25 Bill of Sale is the Department approved form that

licensees should use for this purpose. c. The WB – 25 warrants free and clear title to the personal property

(except for any liens and encumbrances that are made exceptions to the warranty).

d. It does not provide any warranties regarding the condition of the personal property.

e. If such warranties are desired, the parties must provide for them in the contract.

f. Personal property transferred as part of a real estate or business opportunity closing should be conveyed at closing by a bill of sale.

g. If a schedule of personal property has been prepared as part of an offer to purchase, as in a rental property offer, a business offer, or a commercial offer, the schedule may simply be attached to the updated WB – 25 and referenced at line 26.

h. Although the use of a bill of sale is generally straightforward, lenders often raise a related worrisome issue with the inclusion of personal property in the purchase price.i. Lenders often ask licensees to write a residential offer to

purchase, or to amend an accepted offer to purchase, to indicate that the personal property (most often a stove and refrigerator) are “left at the convenience of seller,” “are left without monetary consideration,” or “are of no value.”

ii. Some brokers may include one of these phrases or a similar phrase in their standard office addendum.

iii. Many lenders insist that it is legal to use this language in offers to purchase.

iv. The use of these phrases may be fraud or lead to a distortion and misstatement of the purchase price.

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v. “Left at the convenience of seller.”1. This phrase suggests that the seller is not going to use the

personal property/ appliances, but does not want to go to the bother of properly disposing of it.

2. The monetary and tax consequences of this arrangement are that the seller is gifting the personal property to the buyer or simply deserting it.

3. The offer should be amended to deduct the value of the personal property/ appliances from the purchase price.

4. If this adjustment is not made, the purchase price may be overstated.

vi. “Are left without monetary consideration.”1. This phrase suggests that the seller is gifting the personal

property/appliances to the buyer. 2. The offer should be amended to deduct the value of the

personal property/ appliances from the purchase price. 3. If this adjustment is not made, the purchase price may be

overstated.vii. “Are of no value.”

1. This statement is simply false if the property has some actual value, and should never be used unless the items under discussion are worthless junk.

2. Even old used appliances and personal property may have some resale value.

3. The parties may consult with a personal property appraiser, an auctioneer, or a used appliance dealer, review the classified advertisements in the local newspaper, or simply agree upon a reasonable estimated value.

4. This personal property may be crucial to a buyer who makes his or her offer based upon the premise that this property will be included in the sale or who does not have the resources to purchase new appliances or personal property at the time of the home purchase.

viii. Note that it is not the licensee’s job to determine or track down these personal property values.

ix. If the personal property items at issue are new high-grade appliances purchased two months ago for $5,000, or if the personal property includes two washers, two dryers, two piers and two boats, there is no question that any offer (or offer addendum) that states that the personal property was “left at the convenience of the seller” or is “of no value” would be fraudulent.

x. What is the best way for a licensee to handle such a situation?1. One solution may be to see if the lender will accept a statement

to the effect that the personal property is included in the offer for “one dollar and other good consideration.”

2. This has the benefit of suggesting that the personal property has minimal value while still allowing for the possibility that the “other good consideration” may be hundreds or even thousands of dollars.

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3. By using this phraseology, the agent who includes this language does not have to misstate the value of the personal property.

4. Another solution may be for the offer to purchase to indicate that the buyer is purchasing certain personal property/appliances from the seller outside of closing.

5. The parties may have a separate personal property agreement and the buyer can pay the seller by separate check.

6. Another way may be to simply write the offer as always, with the preprinted offer provisions indicating that any personal property items listed on lines 13-14 are included in the purchase price.

7. If a lender requests a “no value” statement, the parties may decline to comply and may offer, instead, to negotiate a price allocation.

8. A lender may need a price allocation between real property and personal property.

9. A lender may not want to lend based upon personal property, and may need the price allocation data so that the value of the personal property may be deducted on the Wisconsin Real Estate Transfer Return.

10. It may be beneficial if the parties can agree early upon the value of the personal property outside of the offer to purchase.

11. Leaving this valuation process in the hands of the parties helps protect licensees who are not personal property appraisers and not qualified by virtue of their real estate licenses to determine personal property values.

xi. Licensees may document these agreements provided that a reasonable person would view the agreed value as reasonable.

xii. Licensees, on the other hand, should not draft any agreement where the agreed value is clearly fraudulent.

xiii. A real estate licensee who writes false statements into an offer to purchase is contributing to the parties making false statements, i.e., committing fraud. 1. If misstated purchase prices are then inserted into the

Wisconsin Real Estate Transfer Tax Return, the parties’ fraud is repeated to the Wisconsin Department of Revenue.

2. Wis. Stat. § 77.27 provides: “Penalty for falsifying value. Any person who intentionally falsifies value on a return required to be filed under this subchapter may for each such offense be fined not more than $1,000 or imprisoned in the county jail not more than one year, or both.”

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Approved by Wisconsin Department of Regulation and Licensing. 11-1-09 (Optional Use Date) 3-1-10 (Mandatory Use Date)

WB-44 COUNTER-OFFER

Counter-Offer No. __________ by (Buyer/Seller) STRIKE ONE

The Offer to Purchase dated __________ and signed by Buyer , 1 for purchase of real estate at 2 is rejected and the following Counter-Offer is hereby made. All terms and conditions remain the same as stated in the 3 Offer to Purchase except the following: [CAUTION: This Counter-Offer does not include the terms or conditions in 4 any other Counter-Offer unless incorporated by reference.] 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 Any warranties, covenants and representations made in this Counter-Offer survive the closing of this transaction. 30 This Counter-Offer is binding upon Seller and Buyer only if a copy of the accepted Counter-Offer is delivered to the Party 31 making the Counter-Offer on or before ___________________________________________________ (Time is of the 32 Essence). Delivery of the accepted Counter-Offer may be made in any manner specified in the Offer to Purchase, unless 33 otherwise provided in this Counter-Offer. 34 NOTE: The Party making this Counter-Offer may withdraw the Counter-Offer prior to acceptance and delivery as 35 provided at lines 31 to 34. 36

This Counter-Offer was drafted by on 37 Licensee and Firm ▲ Date ▲ 38

39 Signature of Party Making Counter-Offer ▲ Date ▲ Signature of Party Making Counter-Offer ▲ Date ▲ 40 Print name Print name 41

42 Signature of Party Accepting Counter-Offer ▲ Date ▲ Signature of Party Accepting Counter-Offer ▲ Date ▲ 43 Print name Print name 44

This Counter-Offer was presented by on 45 Licensee and Firm ▲ Date ▲ 46 This Counter-Offer is (rejected) (countered) STRIKE ONE (Party’s Initials) ______________ (Party’s Initials) __________ 47 NOTE: Provisions from a previous Counter-Offer may be included by reproduction of the entire provision or 48 incorporation by reference. Provisions incorporated by reference may be indicated in the subsequent Counter-Offer 49 by specifying the number of the provision or the lines containing the provision. In transactions involving more than 50 one Counter-Offer, the Counter-Offer referred to should be clearly specified. 51 NOTE: Number this Counter-Offer sequentially, e.g. Counter-Offer No. 1 by Seller, Counter-Offer No. 2 by Buyer, etc. 52

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Approved by Wisconsin Department of Regulation and Licensing 11-1-09 (Optional 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 this2345678910111213141516171819202122232425

26

Multiple Counter-Proposal may differ from the terms of multiple counter-proposals being submitted to other prospectivebuyers. 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

The Offer to Purchase datedpurchase of real estate at

and signed by Buyer,

is rejected and the following Multiple Counter-Proposal is made. All terms and conditions remain the same as stated in theOffer to Purchase except the following: [CAUTION: This Multiple Counter-Proposal does not include the terms orconditions 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. ThisMultiple Counter-Proposal by Seller will expire and be null and void unless a copy of the approved Multiple Counter-Proposal (seelines 31-33) is delivered to Seller in any manner authorized in the Offer to Purchase on or before

28

30

Essence). This Multiple Counter-Proposal was drafted on

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42

44

45464748

49

51

52

Dateby .

Licensee and Firm

(x)Seller's Signature Print Name Here Date

(x)Seller's Signature Print Name Here Date

APPROVAL BY BUYERThis Multiple Counter-Proposal by Seller is approved by Buyer. Approval of this Multiple Counter-Proposal is not binding on Buyeror Seller until binding acceptance of this approved Multiple Counter-Proposal by Seller (per lines 45-47) on or before

Seller is not approved by Buyer in its entirety, do not use this form for a counter-offer by Buyer. Instead, submit a Counter-, (Time is of the Essence). NOTE: If the above Multiple Counter-Proposal by

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

Licensee and Firm Dateon , at

a.m./p.m.

ACCEPTANCE BY SELLERBy signing below, Seller accepts Buyer's approved Multiple Counter-Proposal. The terms of this Multiple Counter-Proposal shall bebinding on Seller and Buyer if Seller delivers a copy of the accepted Multiple Counter-Proposal to Buyer in any manner authorizedin the Offer to Purchase on or before the deadline stated at line 33. NOTE: Seller should not sign below if there is an existingaccepted offer unless this Multiple Counter-Proposal provides for a secondary offer.

(x)Seller's Signature Seller's SignatureDate DateThe accepted Multiple Counter-Proposal was presented to Seller by

Licensee and Firm a.m./p.m.Dateon , at

3-1-10 (Mandatory Use Date)

Phone: Fax:Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

binding acceptance per lines 45-47., for

(Time is of the

27

29

Offer (WB-44) or a new offer to purchase.35

(x)36Buyer's Signature Print Name Here Date37

(x)3839 Buyer's Signature Print Name Here Date

43

50(x)

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Wisconsin REALTORS Association

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

15

Approved by the Wisconsin Department of Regulation and Licensing 11‐1‐09 (Optional Use Date)  3‐1‐10 (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.

Buyer and Seller agree to amend the Offer dated ____________, _____, and accepted ____________, _____, for 1 the purchase and sale of real estate at _____________________________________________________________ 2 ____________________________________________________________________________________as follows: 3 

Closing date is changed from ______________________, ________, to _____________________, ________. 4  Purchase price is changed from $____________________________ to $_____________________________. 5 Occupancy date is changed from ___________________, ________ to _____________________, ________. 6 Occupancy charge is changed from $_________________________ to $_____________________________. 7 Other: ___________________________________________________________________________________ 8 

____________________________________________________________________________________________9 ____________________________________________________________________________________________10 ____________________________________________________________________________________________11 ____________________________________________________________________________________________12 ____________________________________________________________________________________________13 ____________________________________________________________________________________________14 ____________________________________________________________________________________________15 ____________________________________________________________________________________________16 ____________________________________________________________________________________________17 ____________________________________________________________________________________________18 ____________________________________________________________________________________________19 ____________________________________________________________________________________________20 ____________________________________________________________________________________________21 ____________________________________________________________________________________________22 ALL OTHER TERMS OF THE OFFER TO PURCHASE AND ANY PRIOR AMENDMENTS REMAIN THE SAME. 23 This Amendment is binding upon Seller and Buyer only if a copy of the accepted Amendment is delivered to the 24 Party offering the Amendment on or before _____________________________________ (Time is of the Essence). 25 Delivery of the accepted Amendment may be made in any manner specified in the Offer to Purchase, unless 26 Otherwise provided in this Amendment. 27 NOTE: The Party offering this Amendment may withdraw the offered Amendment prior to acceptance and 28 delivery as provided at lines 24-27.29 

This Amendment was drafted by ______________________________________________on _________________ 30  Licensee and Firm Date31 

This Amendment was delivered by ____________________________________________on _________________ 32  Licensee and Firm Date33 

This Amendment was presented by ___________________________________________on _________________ 34  Licensee and Firm Date35 

(x) ________________________________________ (x) ________________________________________ 36 Buyer’s Signature Date Seller’s Signature Date37 Print name Print name38 

(x) ________________________________________ (x) ________________________________________ 39 Buyer’s Signature Date Seller’s Signature Date40 Print name Print name41 

This Amendment was rejected by ____________________________________________on _________________ 42  Party Name Date43 

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EApproved by the Wisconsin Department of Regulation and Licensing 11‐1‐09 (Optional Use Date)  3‐1‐10 (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.

This Notice by (Seller)(Buyer) STRIKE ONE relates to the Offer to Purchase dated __________________, ______, 1 and accepted _____________________, _______, for the purchase and sale of real estate at _________________ 2 ___________________________________________________________________________________________3 

The following are no longer contingencies or conditions of the Offer to Purchase (Note: Attach supporting 4 documents, if required): ________________________________________________________________________ 5 ____________________________________________________________________________________________6 ____________________________________________________________________________________________7 ____________________________________________________________________________________________8 ____________________________________________________________________________________________ 9 

Notice is given that: ________________________________________________________________________10 ____________________________________________________________________________________________11 ____________________________________________________________________________________________12 ____________________________________________________________________________________________13 ____________________________________________________________________________________________14 ____________________________________________________________________________________________15 ____________________________________________________________________________________________16 ____________________________________________________________________________________________17 ____________________________________________________________________________________________18 ____________________________________________________________________________________________19 ____________________________________________________________________________________________20 ____________________________________________________________________________________________21 ____________________________________________________________________________________________22 ____________________________________________________________________________________________23 ____________________________________________________________________________________________24 ____________________________________________________________________________________________25 ____________________________________________________________________________________________26 ____________________________________________________________________________________________27 ____________________________________________________________________________________________28 ____________________________________________________________________________________________ 29 

This Notice was drafted by ___________________________________________________on _________________ 30 Licensee and Firm Date 31 

Withdrawal Warning: Once delivered, a Notice cannot be withdrawn by the Party delivering the Notice 32 without the consent of the Party receiving the Notice.33 

(x) ____________________________________________ (x) ________________________________________ 34 Signature of Party Giving Notice Date Signature of Party Giving Notice Date35 Print name Print name36 

This Notice was delivered by _________________________________________________on _________________ 37  Licensee and Firm Date38 

at _________a.m./p.m. STRIKE ONE using the following method of delivery: U.S. Mail, commercial delivery, 39 

e-mail, fax, personal delivery, other _______________________________ CHECK AS APPLICABLE. 40 

This Notice was presented by ________________________________________________on _________________ 41  Licensee and Firm Date42 

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WB-45 Cancellation Agreement & Mutual ReleaseApproved by Wisconsin Department of Regulation and Licensing

The UNDERSIGNED Parties agree that the (Agreement), for

1

property located at , in the, State of

right, title, and interest in and to the Agreement, and any and all claims arising out of the transaction.

The Parties hereby authorize and direct the broker(s) to disburse the trust funds held on behalf of the Parties as follows:

3-1-00 (Optional Use Date) 7-1-00 (Mandatory Use Date)

INSERT TYPE OF AGREEMENT e.g. CONTRACT OF SALE, LEASE, OPTION, etc. dated 23 of45

6

, be canceled and the Parties hereby release all of their

7 $ shall be disbursed to at 8 the following address ,

9 $ shall be disbursed to at10 the following address ,11 and the Parties hereby release the broker(s) from any and all liability for disbursing the trust funds as directed.

121314

This Cancellation Agreement and Mutual Release shall be effective only if all Parties to the Agreement have signed an identicalcopy of this Cancellation Agreement and Mutual Release (including signatures on separate but identical copies of the CancellationAgreement and Mutual Release), and if the fully-executed Cancellation Agreement and Mutual Release has been delivered to the

1516

Party proposing the Cancellation Agreement and Mutual Release on or beforeDelivery may be made in any manner authorized in the Agreement.

.

1718

(X)Party's Signature DatePrint Name Here:

19 (X)Date20 Party's Signature Print Name Here:

21 (X)Date22 Party's Signature Print Name Here:

23 (X)Date24 Party's Signature Print Name Here:

25 (X)Date26 Party's Signature Print Name Here:

27 (X)Date28 Party's Signature Print Name Here:

29 (X)Date30 Party's Signature Print Name Here:

Phone:ax:Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Wisconsin REALTORS Association 4801 Forest Run Rd Ste 201 Madison, WI 53704(608)241-2047d

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WB-25 BILL OF SALE Approved by the Wisconsin Department of Regulation and Licensing

Seller conveys to1

PERSONAL PROPERTY SCHEDULE

4-1-01 (Optional Use Date) 12-1-01 (Mandatory Use Date)

23

45

36 (X)Date37 Seller's Signature Print Name Here:

38 (X)Date39 Seller's Signature Print Name Here:

40 (X)Date41 Seller's Signature Print Name Here:

42 (X)Date43 Seller's Signature Print Name Here:

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.

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26 ADDENDA The attached is/are made part of this Bill of Sale.

27 Seller hereby warrants and represents that Seller owns said personal property free and clear of all liens and2829

encumbrances, that Seller has good right to sell the same and Seller will warrant and defend the same against the lawfulclaims and demands of all persons, except:

30313233

3435

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

This Bill of Sale was drafted on [date] by [Licensee and firm]

(Buyer), for a good and valuable consideration,

.

PProduced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

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