Wb 24 Form – Fill Out and Use This PDF

Approved by the Wisconsin Real Estate Examining Board	Page 1 of 7, WB-24
10-1-12 (Optional Use Date) 01-1-13 (Mandatory Use Date)

WB-24 OPTION TO PURCHASE

1LICENSEE DRAFTING THIS OPTION ON _______________________________________________________ [DATE] IS (AGENT OF BUYER)

2 (AGENT OF SELLER/LISTING BROKER) (AGENT OF BUYER AND SELLER) STRIKE THOSE NOT APPLICABLE

3 The Seller (Optionor), _____________________________________________________________________________________________, hereby grants to

4 the Buyer (Optionee), __________________________________________________________________________________________________________, 5 an option to purchase (Option) the Property known as [Street Address] ____________________________________________________________________

6 ______________________________________________________________________________________ in the ________________________________

7 of _______________________________________________ , County of ______________________________________ , Wisconsin, on the following terms:

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 9 Sellers and delivered to Buyer on or before _____________________________________________________________ (Time is of the Essence).

10OPTION TERMS

11■ INITIAL OPTION TERM: A nonrefundable option fee of $_________________________ will be paid by Buyer to Seller within ______________ days

12of 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

13exercised if Buyer delivers written notice to Seller no later than midnight _____________________________________________ unless extended below.

14■ EXTENDED OPTION TERM: The Deadline to exercise this Option shall be extended until midnight ___________________________________, upon

15payment of $_______________________________ to Seller on or before ____________________________________________________, as an option

16extension fee which shall not be refundable.

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

18Buyer exercises this Option. If the Option is exercised, $_________________________ of the option fee and $_________________________ of the

19option extension fee, if any, shall be a credit against the purchase price at closing.

20CAUTION: 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

21or 326-330 or in a separate agreement attached per line 325.

22 TERMS OF PURCHASE

23■ PURCHASE PRICE:____________________________________________________________________________________________________ Dollars

24($ _______________________________________________________ ) will be paid in cash or equivalent at closing unless otherwise provided 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

26not excluded at lines 28-29, and the following additional items: __________________________________________________________________

27_________________________________________________________________________________________________________________________.

28■ NOT INCLUDED IN PURCHASE PRICE: ________________________________________________________________________________

29_________________________________________________________________________________________________________________________.

30CAUTION: Identify trade fixtures owned by tenant, if applicable, and Fixtures that are on the Property (see lines 75-82) to be excluded by

31Seller or which are rented and will continue to be owned by the lessor.

32NOTE: The terms of this Option, not the listing contract or marketing materials, determine what items are included/excluded.

33OPTIONAL PROVISIONS TERMS OF THIS OPTION THAT ARE PRECEDED BY AN OPEN BOX (  ) ARE PART OF THIS OPTION ONLY IF

34THE BOX IS MARKED SUCH AS WITH AN “X.” THEY ARE NOT PART OF THIS OPTION IF MARKED “N/A” OR ARE LEFT BLANK.

35DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Option, delivery of documents and written notices to a

36party shall be effective only when accomplished by one of the methods specified at lines 37-54.

37(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.

38Seller's recipient for delivery (optional): ________________________________________________________________________________________

39Buyer's recipient for delivery (optional): ________________________________________________________________________________________

40

(2) Fax: fax transmission of the document or written notice to the following telephone number:

41Seller: (___________) _______________________________________ Buyer: (___________) _______________________________________

42

(3) Commercial Delivery: depositing the document or written notice fees prepaid or charged to an account with a commercial delivery

43service, 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

44line 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, or to the Party's

46recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48.

47Delivery address for Seller: _________________________________________________________________________________________________

48Delivery address for Buyer: _________________________________________________________________________________________________

49 (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

50consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes,

51each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and

52electronic signatures in the transaction, as required by federal law.

53E-Mail address for Seller (optional): _______________________________________________________________________________________

54E-Mail address for Buyer (optional): _______________________________________________________________________________________

55TIME 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

56Option; (4) Buyer’s exercise of this Option; (5) occupancy; (6) date of closing; STRIKE AS APPLICABLE and all other dates and Deadlines in this

57Option except: ____________________________________________________________________________. If “Time is of the Essence” applies

58to 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

59or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs.

60PERSONAL DELIVERY/ACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery

61to, or Actual Receipt by, all Buyers or Sellers.

Page 2 of 7, WB-24

62DEFINITIONS

63■ ACTUAL RECEIPT: “Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or written notice

64physically in the Party’s possession, regardless of the method of delivery.

65■ DEADLINES: “Deadlines” expressed as a number of “days” from an event, such as acceptance, are calculated by excluding the day the event

66occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number

67of “business days” exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the

68President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific

69number 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

70hours 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

71midnight of that day.

72■ DEFECT: “Defect” means a condition that would have a significant adverse effect on the value of the Property; that would significantly impair

73the health or safety of future occupants of the Property; or that if not repaired, removed or replaced would significantly shorten or adversely affect

74the expected normal life of the premises or adversely affect the use of the Property.

75■ 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

76treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises,

77items specifically adapted to the premises and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs

78and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central

79heating and cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings;

80attached antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accessories; in-ground

81sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent foundations and docks/piers on

82permanent foundations. A "Fixture" does not include trade fixtures owned by tenants of the Property.

83CAUTION: Exclude any Fixtures to be retained by Seller or which are not owned by Seller, such as rented fixtures (e.g., water softener

84or other water conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 28-29.

85■ PROPERTY: Unless otherwise stated, “Property” means the real estate described at lines 5-7.

86PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or room dimensions, or total acreage or building square

87footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless

88verified by survey or other means.

89CAUTION: Buyer should verify total square footage formula, total square footage/acreage figures, and land, building or room

90dimensions, if material.

91BUYER’S WALK-THROUGHS Within 3 days of the earlier of: (i) the Deadline for Buyer’s exercise of this Option; or (ii) the Buyer’s exercise of

92this 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

93walk through the Property to determine that there has been no significant change in the condition of the Property, except for ordinary wear and

94tear 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.

95PROPERTY DAMAGE BETWEEN EXERCISE OF OPTION AND CLOSING Seller shall maintain the Property until the earlier of closing or

96occupancy of Buyer in materially the same condition as of the date Buyer exercises this Option, except for ordinary wear and tear. If, prior to

97closing, 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

98Property 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

99lien waivers for all lienable repairs and restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in writing of the

100damage 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

101entitled 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

102Seller'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

103be held in trust for the sole purpose of restoring the Property.

104DISTRIBUTION OF INFORMATION Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Option to Buyer's

105lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate

106Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide

107active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions,

108incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry.

109NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons registered with the

110registry by contacting the Wisconsin Department of Corrections on the Internet at http://www.widocoffenders.org or by telephone at (608) 240-

1115830.

Property Address: _________________________________________________________________________________________________________Page 3 of 7, WB-24

112 CLOSING This transaction is to be closed (within ___________________________ days after the exercise of this Option) (no later

113than___________________________________) STRIKE AND COMPLETE AS APPLICABLE at the place selected by Seller, unless otherwise

114agreed by the Parties in writing.

115CLOSING PRORATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes,

116rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and _________________

117___________________________________________________________________________________________________________________.

118CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used.

119Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing.

120Real estate taxes shall be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]:

121

The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as

122general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED)

123		Current assessment times current mill rate (current means as of the date of closing)
124		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

125known, multiplied by current mill rate (current means as of the date of closing)

126			___________________________________________________________________________________________________________.
127	CAUTION: Buyer is informed that the actual real estate taxes for the year of closing and subsequent years may be substantially

128different than the amount used for proration especially in transactions involving new construction, extensive rehabilitation, remodeling

129or area-wide re-assessment. Buyer is encouraged to contact the local assessor regarding possible tax changes.

130

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

131the 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

132to 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

133bill. 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

134estate brokers in this transaction.

135LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller’s rights under the lease(s) and

136transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE lease(s), if any, are

137_________________________________________________________________________________________________________________________

138_______________________________________. Insert additional terms, if any, at lines 256-268 or 326-330 or attach as an addendum per line 325.

139LEASE-OPTION PROVISIONS [CHECK BOX ON LINE 140 OR 141, IF APPLICABLE]:

140

141

142

143

144[CHECK ANY OF THE FOLLOWING THAT APPLY, IF LINE 140 OR 141 WAS CHECKED ABOVE]:

145		In the event that this Option is timely exercised, $__________________ of each monthly rent payment of $__________________
146		shall be applied to the purchase price while the balance shall be deemed solely rent that is retained by Seller.
147		NOTE: Lenders may not recognize a credit for rent paid under a lease.
148		Buyer may not exercise this Option unless Buyer is current with all rent.
149		Any material breach of the lease by Buyer shall also constitute a default under this Option.

150PROPERTY CONDITION REPRESENTATIONS Seller represents to Buyer that, as of the date Seller grants this Option, Seller has no notice or

151knowledge of any Defects (lines 72-74) other than those identified in Seller’s disclosure report dated _________________________________

152and, if applicable, Real Estate Condition Report dated ________________________________, and, if applicable, Vacant Land Disclosure Report

153dated _____________________, which was/were received by Buyer prior to Buyer signing this Option and which is/are made a part of this Option

154by reference COMPLETE DATES OR STRIKE AS APPLICABLE and ___________________________________________________________

155____________________________________________________________________________________________________________________

156_______________________________ INSERT CONDITIONS NOT ALREADY INCLUDED IN THE DISCLOSURE OR CONDITION REPORT(S)

157CAUTION: If the Property includes 1-4 dwelling units, a Real Estate Condition Report containing the disclosures provided in Wis. Stat. §

158709.03 may be required. If the Property does not include any buildings, a Vacant Land Disclosure Report containing the disclo sures

159provided in Wis. Stat. § 709.033 may be required. Excluded from these requirements are sales of property with 1 -4 dwelling units that

160has never been inhabited, sales exempt from the real estate transfer fee, and sales by certain court -appointed fiduciaries (for example,

161personal representatives who have never occupied the Property). The buyer may have certain rescission rights per Wis. Stat. § 709.05 if

162Seller does not furnish such report(s) within 10 days after Seller grants this Option or if a report disclosing Defects is furnished before

163expiration of those 10 days, but after the Option is submitted to Seller. Buyer should review the report form or consult with an attorney

164for additional information regarding rescission rights.

165Seller agrees to notify Buyer in writing of any Defect which Seller becomes aware of after Seller’s granting of, but prior to Buyer’s exercise of this

166Option, which is materially inconsistent with the above representations. For purposes of this provision (lines 150-156), Defect does not include

167structural, mechanical or other conditions of which the Buyer has actual knowledge or written notice or which Buyer discovers prior to the exercise

168of this Option.

169ZONING Seller represents that the property is zoned _____________________________________________________________________________.

Page 4 of 7, WB-24

170OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Option at lines 256-

171268 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

172debris and personal property except for personal property belonging to current tenants, or that sold to Buyer or left with Buyer's consent.

173Occupancy shall be given subject to tenant's rights, if any.

174CAUTION: Consider an agreement which addresses responsibility for clearing the Property of personal property and debris, if applicable.

175RENTAL WEATHERIZATION Unless otherwise agreed, Buyer shall be responsible for compliance with Rental Weatherization Standards (Wis.

176Admin. Code Ch. SPS 367), if applicable.

177DEFAULT 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

178material failure to perform any obligation under this Option is a default which may subject the defaulting party to liability for damages or other legal

179remedies.

180If 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.

183If Seller defaults, Buyer may:

184(1) sue for specific performance; or

185(2) terminate the Option and may sue for actual damages.

186In addition, the Parties may seek any other remedies available in law or equity.

187The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the

188courts. If either Party defaults, the Parties may renegotiate the Option or seek nonjudicial dispute resolution instead of the remedies outlined

189above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration

190agreement.

191NOTE: IF ACCEPTED, THIS OPTION CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS

192DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OPTION BUT ARE

193PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OPTION OR HOW TITLE

194SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED.

195ENTIRE CONTRACT This Option, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the

196transaction. All prior negotiations and discussions have been merged into this Option. This agreement binds and inures to the benefit of the

197Parties to this Option and their successors in interest.

198BUYER DUE DILIGENCE Prior to the granting or exercising of this Option, Buyer may wish to perform certain authorized inspections,

199investigations and testing of the Property. Buyer shall provide for any specific inspections, investigations or tests Buyer intends to perform as part

200of Buyer’s due diligence items on lines 256-268, 314-321, or 326-330 or attach as an addendum per line 325. In addition, Buyer may need to obtain

201and review documents relevant to financing approval, appraisals, or perform general due diligence activities for the transaction, including but not

202limited to: business records, condominium documents, maps or other information, municipal and zoning ordinances, recorded building and use

203restrictions, covenants and easements of record, as they may prohibit or restrict certain uses and improvements for the Property. Buyer may also

204need to obtain or verify certain permits, zoning variances, other governmental or private approvals, environmental audits and subsoil tests,

205required road improvements, utility hook-up and installation costs, or other development related costs and fees, in order to fully determine the

206feasibility of any proposed or planned development of the Property. Seller agrees to cooperate with Buyer as necessary to complete any due

207diligence items or any authorized investigations, testing and inspections as provided for in this Option, without cost to Seller, unless otherwise

208agreed by the Parties in writing.

Property Address: _________________________________________________________________________________________________________Page 5 of 7, WB-24

209RECORDING OF OPTION Buyer (may) (may not) STRIKE ONE record this Option at Buyer’s expense.

210Buyer (may) (may not) STRIKE ONE (“may” if neither is stricken) record a separate instrument evidencing this Option at Buyer’s expense. If this

211Option 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

212addendum per line 325. If recording, the parties agree to provide authenticated or acknowledged signatures as may be required.

213CAUTION: Failure to record may give persons with subsequent interests in the Property priority over this Option.

214TITLE EVIDENCE

215■ CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (or condominium

216deed if Property is a condominium unit, trustee’s deed if Seller is a trust, personal representative’s deed if Seller is an estate or other

217conveyance as provided herein), free and clear of all liens and encumbrances, except: municipal and zoning ordinances and agreements

218entered under them, recorded easements for the distribution of utility and municipal services, recorded building and use restrictions and

219covenants, present uses of the Property in violation of the foregoing disclosed in Seller’s Real Estate Condition Report and in this Option, general

220taxes levied in the year of closing and _____________________________________________________________________________________

221____________________________________________________________________________________________________________________

222__________________________________________________________________________which constitutes merchantable title for purposes of

223this transaction. Seller shall complete and execute the documents necessary to record the conveyance at Seller’s cost and pay the Wisconsin

224Real Estate Transfer Fee. The Parties agree that Seller shall not rezone the Property or create any additional liens or encumbrances on title after

225Seller grants this Option without Buyer’s written consent except for liens and encumbrances that will be removed at closing.

226WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain

227improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making improvements to Property or a use

228other than the current use.

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

230current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. Seller shall pay all costs of providing title evidence to Buyer.

231Buyer shall pay all costs of providing title evidence required by Buyer’s lender.

232■ GAP ENDORSEMENT: Seller shall provide a “gap” endorsement or equivalent gap coverage at (Seller’s)(Buyer’s) STRIKE ONE (“Seller’s”

233if neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance

234commitment and before the deed is recorded, subject to the title insurance policy exclusions and exceptions, provided the title company will issue

235the endorsement. If a gap endorsement or equivalent gap coverage is not available, Buyer may give written notice that title is not acceptable for

236closing (see lines 242-248).

237■ PROVISION OF MERCHANTABLE TITLE: For purposes of closing, title evidence shall be acceptable if the required title insurance

238commitment is delivered to Buyer's attorney or Buyer not more than ___________ days after Seller grants this Option (“15” if left blank), showing

239title 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

240liens which will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate.

241CAUTION: Buyer should consider obtaining an update of the title commitment prior to exercising this Option.

242■ TITLE NOT ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title within

243___________ days (“15” if left blank) after delivery of the title commitment to Buyer or Buyer’s attorney. In such event, Seller shall have a

244reasonable time, but not exceeding ___________ days (“5” if left blank), from Buyer’s delivery of the notice stating title objections, to deliver notice

245to 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,

246Buyer may deliver to Seller written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does not waive

247the objections, Buyer shall deliver written notice of termination and this Option shall be null and void. Providing title evidence acceptable for

248closing does not extinguish Seller’s obligations to give merchantable title to Buyer.

249■ SPECIAL ASSESSMENTS/OTHER EXPENSES: Special assessments, if any, levied or for work actually commenced prior to the date this

250Option is exercised shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer.

251CAUTION: Consider a special agreement if area assessments, property owners association assessments, special charges for current

252services under Wis. Stat. § 66.0627 or other expenses are contemplated. “Other expenses” are one-time charges or ongoing use fees

253for public improvements (other than those resulting in special assessments) relating to curb, gutter, street, sidewalk, municipal water,

254sanitary and storm water and storm sewer (including all sewer mains and hook-up/connection and interceptor charges), parks, street

255lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f).

256ADDITIONAL PROVISIONS ___________________________________________________________________________________________

257____________________________________________________________________________________________________________________

258____________________________________________________________________________________________________________________

259____________________________________________________________________________________________________________________

260____________________________________________________________________________________________________________________

261____________________________________________________________________________________________________________________

262____________________________________________________________________________________________________________________

263____________________________________________________________________________________________________________________

264____________________________________________________________________________________________________________________

265____________________________________________________________________________________________________________________

266____________________________________________________________________________________________________________________

267____________________________________________________________________________________________________________________

268____________________________________________________________________________________________________________________

Page 6 of 7, WB-24

269CONDOMINIUM UNITS

270CAUTION: If this Option involves a condominium unit, Buyer should obtain and review the condominium disclosure documents before

271entering into this Option. See lines (198-208)

272If the Property is a residential condominium unit, Seller must comply with the following:

273■ CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide Buyer, at Seller’s cost, within 10 days of Buyer exercising this Option,

274but no later than 15 days prior to closing, current and accurate copies of the condominium disclosure materials required by Wis. Stat. § 703.33.

275The condominium disclosure materials include a copy of the following and any amendments to any of these [except as may be limited for small

276condominiums 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

277regulations, 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)

278proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all or part of the

279condominium; (d) projected annual operating budget for the condominium including reasonable details concerning the estimated monthly

280payments by the purchaser for assessments and other monthly charges; (e) leases to which unit owners or the association will be a party; (f)

281general description of any contemplated expansion of condominium including each stage of expansion and the maximum number of units that can

282be added to the condominium; (g) unit floor plan showing location of common elements and other facilities available to unit owners; (h) the

283executive summary.

284■ BUYER RESCISSION RIGHTS: As provided in Wis. Stat. § 703.33(4)(a), Buyer may, within 5 business days of receipt of all the required

285disclosure documents, rescind this Option by written notice delivered to Seller. If the disclosure materials are delivered to Buyer and Buyer does

286not receive all of the disclosure documents, Buyer may, within 5 business days of Buyer’s receipt of the disclosure materials, either rescind the

287Option or request any missing documents. Seller has 5 business days following receipt of Buyer’s request for missing documents to deliver the

288requested documents. Buyer may rescind the sale within 5 business days of the earlier of Buyer’s receipt of requested missing documents or the

289deadline for Seller’s delivery of the documents [Wis. Stat. § 703.33(4)(b)]. The Parties agree that the 5 business days begin upon the earlier

290of: (1) Buyer’s Actual Receipt of the disclosure materials or requested missing documents or (2) upon the deadline for Seller’s delivery

291of the documents.

292NOTE: BUYER SHOULD READ ALL DOCUMENTS CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE

293PROVISIONS OF THE DOCUMENTS BUT ARE PROHIBITED BY LAW FROM GIVING LEGAL ADVICE OR OPINIONS.

294■ ADDITIONAL CONDOMINIUM ISSUES: In addition to the disclosure materials required by Wis. Stat. § 703.33, Buyer may wish to consider reviewing

295other condominium materials as may be available, such as copies of: the condominium association’s financial statements for the last two years, the

296minutes of the last 3 Unit owners’ meetings, the minutes of condominium board meetings during the 12 months prior to acceptance, information about

297contemplated or pending condominium special assessments, the association's certificate of insurance, a statement from the association indicating the

298balance of reserve accounts controlled by the association, a statement from the association of the amount of any unpaid assessments on the unit (per Wis.

299Stat. § 703.165), any common element inspection reports (e.g. roof, swimming pool, elevator and parking garage inspections, etc.), any pending litigation

300involving the association and the declaration, bylaws, budget and/or most recent financial statement of any master association or additional association the

301unit may be part of. Not all of these materials may exist or be available from the condominium association.

302■ 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

303fee are not deposits subject to return under Wis. Stat. § 703.33(4)(c).

304INSPECTIONS AND TESTING Buyer may only conduct inspections or tests if specific authorizations are included in this Option. An “inspection”

305is defined as an observation of the Property which does not include an appraisal or testing of the Property, other than testing for leaking carbon

306monoxide, 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

307samples of materials such as soils, water, air or building materials from the Property and the laboratory or other analysis of these materials. Seller

308agrees to allow Buyer’s inspectors, testers, appraisers and qualified third parties reasonable access to the Property upon advance notice, if

309necessary to perform the activities authorized in this Option. Buyer and licensees may be present at all inspections and testing. Except as

310otherwise provided, Seller’s authorization for inspections does not authorize Buyer to conduct testing of the Property. Buyer agrees to promptly

311restore the Property to its original condition after Buyer’s inspections and testing are completed unless otherwise agreed to with Seller. Buyer

312agrees to promptly provide copies of all inspection and testing reports to Seller. Seller acknowledges that certain inspections or tests may detect

313environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources.