Would the new Time of Sale Requirement ( TOS ) law delay closing or create more seller finance opportunities in Milwaukee?

[Ramon Jenkins]

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. “

[Nick L.]

@Ramon Jenkins

Thanks for sharing. 

This is the first I've heard of this statute and I'm no lawyer. But it seems to be a result of heavy lobbying by the Wis. REALTORS' Association, which has a major political influence arm.

There's an interesting article on the subject from the WRA last October in this archive. And a little googling showed that Grafton has enacted such an ordinance. It seems the WRA is concerned about the effect on property sales and REALTOR liability.

It's now a standard play in WI politics to overrule local authority legislation at the state level. That's why this got shoved in as a budget provision.