Is an inspection an automatic buyer right in Wisconsin?
No. Buyers can only conduct an inspection if they ask for one as part of their offer to purchase. There are two ways to do this. A buyer can request an inspection under the inspection contingency, which gives the buyer certain rights if the inspection discloses defects (more on this below), or, a buyer can request an inspection for informational purposes only.
The Scope of the Inspection Contingency:
The inspection contingency in Wisconsin’s residential offer to purchase allows a buyer to use a Wisconsin licensed home inspector to inspect the home for defects. Inspectors are governed by certain standards under Wisconsin law – namely that the inspector must “perform a reasonably competent and diligent inspection to detect observable conditions” of a home.[1]
Note the statute’s reference to “observable” conditions – the statute specifically states that an inspector is not required “to disassemble any component of an improvement to residential real property” in order to inspect it.[2] For example, if a seller has moving boxes piled up against a wall, the inspector is not required to move those boxes. The inspector may make note of the obstruction in their report, however, it is best practice for the buyer to attend the inspection so that they can ask the inspector questions and take note of any areas that may need further attention. Buyers are allowed to conduct follow-up inspections within their inspection contingency time frame.
There are certain areas of a home that an inspector must observe and report the condition of, which includes: the foundation, columns, flooring systems, roof(s), plumbing, interior, exterior, and heating/ air conditioning system to name a few.[3] The Wisconsin Administrative Code specifies which aspects of these areas that an inspector is and is not required to report on. For example, an inspector observing a roof must report on the roof’s drainage systems, flashing, and signs of leakage, but is not required to physically walk on the roof or inspect any roof solar systems .[4]
A buyer can also negotiate for an inspection of an area that would typically not be inspected by a Wisconsin licensed home inspector, such as a pool’s plumbing components or a more comprehensive look at the home’s chimney. If the buyer negotiates for these further inspections, the buyer should hire a licensed contractor who specializes in inspections of the specified area and consider whether they want to make their offer contingent upon a contractor disclosing no defects of these areas.
What are Defects in a Wisconsin Home Inspection?
Before delving into what a defect is, it is important to understand why they are important. If a buyer has negotiated for an inspection contingency, then he or she may present the seller with a “Notice of Defects.” A Notice of Defects outlines a buyer’s objection to specified defects identified in the home inspection report.
If the offer has given the seller the right to cure such defects, then upon presentation of the Notice of defects, the seller can elect to cure or fix the defects, at the seller’s expense, and before closing. However, a seller who has been given the right to cure or fix the defects can also choose not to fix the defects, at which point the offer becomes null and void.
Now, onto what a defect is. . . an inspection report will specifically label something as a defect if the inspector believes the condition will either: (1) significantly impair the health or safety of the occupants of a property if the issue is not repaired, removed, or replaced, or (2) would significantly shorten or adversely affect the normal life of the component.[5] However, the offer allows a buyer to object to one other type of defect that an inspector would not categorize as a defect in their report. The residential offer to purchase defines the third type of defect as “a condition that would have a significant adverse effect on the value of the Property”.
Inspections vs. Tests – What is and is NOT Included in a Home Inspection:
A buyer should be aware that the right to conduct an inspection under the inspection contingency does NOT give the buyer the right to conduct a test. The offer defines a test as “the taking of samples of materials such as soils, water, air or building materials from the Property for laboratory or other analysis”. Common types of tests include: mold, water, asbestos, radon, and lead-based paint. If a buyer does not specifically ask for these tests, then the buyer has no right to conduct the test.
This means that if the buyer has a specific concern, such as mold for health reasons, the buyer should be sure to ask for a separate mold test and to hire a certified mold inspector to conduct the test.
Wisconsin licensed home inspectors have certain minimum conditions that they must report on. However, an inspector may report on additional findings as he or she deems appropriate.[6] For example, an inspector may make note of a mold-like substance or rodent droppings, even though the inspector is not required to take note of such items.
Conclusion
An inspection is a crucial aspect of being an informed buyer. Understanding what a standard inspection covers, what constitutes a defect, and the distinction between inspections and test empowers you as a buyer. By proactively including an inspection contingency in your offer and knowing your rights, you can approach your home purchase with greater confidence and clarity.
Schedule a consultation with Wynn at Law, LLC today to discuss the home buying process
To provide you with the utmost confidence and security, Wynn at Law, LLC can assist you with the process of buying a home and can help you navigate the inspection process, including assistance with drafting a Notice of Defects, if needed.
Contact Wynn at Law, LLC today at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.
[1] Wis. Stat. 440.975(2) (emphasis added)
[2] Id.
[3] Wis. Admin. Code SPS 131.32
[4] Wis. Admin. Code SPS 131.32(4)
[5] Wis. Stat. 440.97(2m)
[6] Wis. Stat. 440.975(8)(a)
