1. Tenants in Common

Taking title to real estate as tenants in common is sometimes a deliberate choice or can be the default when no other method is specified. In a tenancy in common, two or more people can share ownership rights to real property with each owner having a right to use and possess the entire parcel, regardless of the fractional share each owner paid. So, for example, if A pays $40K and B pays $60K for the property, this does not mean that B gets to divide the property up consistent with his 60% share and exclude A from it. Rather, both A and B must share the entire property.
The 50/50 rule applies to most aspects of a tenancy in common. For example, owners are equally responsible for maintenance costs and taxes. Only one property tax bill will be issued for the parcel, thus it is the responsibility of the parties to divide costs up as they see fit. The most efficient way to do this is through a tenancy in common agreement. Further, each owner is said to own his or her interest “severally”, meaning that he or she is free to sell or dispose of his or her interest, and no consent of the other co-owner is necessary to do so. It is easy to see some of the pros and cons of a tenancy in common, compiled below:

Pros of a tenancy in common:

• Allows individuals to pool their resources so that they can afford property,

• Each party can own different sections of the property if specified by a tenancy in common agreement, and

• Property taxes and other expenses are split between all owners

Cons of a tenancy in common:

• There are no survivorship rights in a tenancy in common, which means that when one owner dies, his/her share does not pass to the other owner, but rather to the decedent’s estate,

• Each owner must share the entire parcel with the other owner, unless the parties agree otherwise, and

• Owners may end up with unanticipated co-owners as a result of each owner’s right to freely transfer or sell their interest or when one owner passes away.

2. Joint tenancy

A joint tenancy, like a tenancy in common, allows two or more people or entities to share a property equally. However, unlike a tenancy in common, joint tenants have survivorship rights, meaning that if one owner dies, his or her share passes to the remaining owner or owners.
Joint tenants, like tenants in common, must share the entire parcel with the other owners. There is still the option of drafting a joint tenancy agreement to fractionally divide each owner’s share. However, there are some unexpected nuances here. For example, if joint tenants agreed to fractionally divide the parcel and one joint tenant decides to lease his or her share, most would presume that the owner offering the lease gets to keep all proceeds from the lease. However, this is incorrect – the typical presumption is that the lease proceeds must be split 50/50 or equally with the other owners.

Pros of a joint tenancy:

• Survivorship rights when one owner dies; his or her interest passes to the remaining owner(s), thus affording the opportunity to become a sole owner,

• Each owner can own specified sections of the property if specified by a joint tenancy agreement, and

• Property taxes and other expenses are split between all owners

Cons of a joint tenancy:

• Each owner must share the parcel with the other owners, unless the parties agree otherwise, and

• Equal rights and responsibilities of all owners mean that if one owner takes a loan out against the property, all co-owners may responsible.

3. Marital property

Wisconsin, being a marital property state views all property as owned by the marriage, not each individual in it. Thus, each spouse automatically owns a ½ share of all property acquired in the marriage, unless a marital property agreement specifies otherwise. For Wisconsin transplants who have acquired property out-of-state before moving to Wisconsin, property is recognized as quasi-community property, which is complex and helps courts determine how to divide property upon divorce or death.
Marital property, like property taken in joint tenancy, has survivorship rights. In the marital context, this means that if one spouses dies, the surviving spouse receives the deceased spouse’s half of the property. A common example is a home held in title as marital property. If both spouses are on the deed to the home, then the entire home goes to the surviving spouse. Depending on each couple’s situation, this may be either a pro or a con. Some of these pros and cons are outlined below:

Pros of marital property:

• Survivorship rights: If one spouse dies, his or her share goes to the surviving spouse

Cons of marital property:

• Frustrated interests: If one spouse wants to sell, but the other does not, it can cause a gridlock on being able to sell the property. Both spouses need to agree to sell.

• Even if one spouse was the one to acquire the property at first, the other spouse may acquire a ½ share if the property is used as a primary residence or marital funds are used to pay or upkeep the property. This can be a con in the context of divorce or estate planning.

Summary:

Now that you understand the three ways co-owners can take title to property and the cons that may arise when co-owners interest become frustrated, you may be wondering what solutions are available when co-owners cannot come to an agreement.

One option is asking the court to petition the property, which will be discussed in our upcoming blog post. Stay tuned and read on!

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Wills

If you have a will that was drafted in a different state before moving to Wisconsin, it will still be valid so long as it satisfies Wisconsin’s requirements of a valid will. These requirements include having the will in writing and having at least two disinterested witnesses at the time of signing.

In Wisconsin, your will may be changed through a codicil, which allows an individual to make amendments or changes at any time during their life. Some reasons that you may need a codicil to your will after moving to Wisconsin include, but are not limited to, changes to property, location of assets, location of beneficiaries, etc. For example, you may need to change the executor of your will if they live out of state. This is not only for practical reasons, in that the executor may have to handle matters in the decedent’s state, but also because Wisconsin law requires nonresidents to appoint an in-state resident to accept service of process and further, non-residency itself may be enough to disqualify an executor. See Wis Stat § 856.23.

Trusts

A living trust, also known as a revocable trust, is transferrable between states. However, it is important to speak with an attorney to update your trust to include any new assets and discuss whether moving your trust’s situs, aka its home, is advisable. On the other hand, an irrevocable trust’s situs may or may not be transferrable depending on the language of the trust. You should speak with an experienced estate planning attorney to understand the implications of having your trust’s situs in or out of state.

Similar to wills, it is advisable to have your trust’s situs as your state of residency. This is because unlike wills, which are attached to a person, trusts are entities governed by their respective state’s laws. Having a trust in a state other than your state of residency may require that your successor trustee hire an attorney in the state of the trust’s situs. Speaking with an attorney regarding your trust’s situs can help you understand other implications such as state fiduciary and inheritance taxes.

Transfer on Death Deed

A transfer on death deed allows property to be transferred to your beneficiaries without going through probate. If you have an existing transfer on death deed, it may need to be tweaked to reflect Wisconsin’s marital property laws. Moving to Wisconsin may make you to reconsider who is the beneficiary of your transfer on death deed. If it is the case that the beneficiary no longer seems appropriate, then you should speak with an attorney to revoke the deed and/or draft a new one.

Powers of Attorney

Your estate planning will typically include two kinds of powers of attorney (POA) – a financial power of attorney and a heath care power of attorney. The authority of someone granted to serve as a power of attorney is acknowledged in all states. However, moving is a perfect time to re-examine your agent selection. Wisconsin has adopted the Uniform Power of Attorney Act (UPOAA), along with 25 other states, which streamlines the laws governing POA’s. So, if your POA was created in a state that has not adopted the UPOAA, your POA could be challenged, and you should consult an attorney to clarify agent and grantor responsibilities.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

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Wisconsin’s Small Estate Affidavit statute allows estates under $50,000 to avoid probate and instead be transferred via affidavit. See Wis Stat. §867.03. It can be used by an heir, a trustee of a revocable trust, a person named in the decedent’s will, or a guardian after the passing of the decedent.

Why use a transfer by affidavit

A transfer by affidavit avoids the costly and time-consuming probate process and thus allows the estate’s assets to pass more quickly.

What assets apply to a transfer by affidavit?

A transfer by affidavit applies to any probate assets cumulatively worth under $50,000. Probate assets are any assets that do not have a specifically designated beneficiary or payable on death (POD) designation. Jointly owned items, such as bank accounts or vehicles with two names on the title, are considered non-probate assets because it is presumed that the property will transfer to the other joint owner upon the death of the other owner. Some examples of probate assets that could be transferred by affidavit include property titled solely in the decedents name such a vehicle, small parcels of hunting or fishing land, or bank accounts with no POD.

What is the process for a transfer by affidavit?

To transfer assets under Wisconsin’s Small Estate Affidavit statute, the heir, trustee of a revocable trust, beneficiary of the decedent’s will, or a guardian of the decedent, must complete the Transfer by Affidavit form. This form includes the name of the decedent’s estate, the total fair market value of the assets, and a description of the assets being transferred. If real estate is being transferred, then you must also complete an Affidavit of Heirship and the Affidavit of Service. If these additional forms are required, then you must present copies of them to the decedent’s heirs at least 30 days before filing the forms. Lastly, you must get the forms notarized and filed with the court. The property can then be claimed within 30 days of presenting the notarized affidavit.

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Suppose your neighbor does not perform regular maintenance on trees located on your adjacent property line. As a result, the branches are overgrown, not pleasant-looking, and provide too much shade in an area that you had previously used for sun-bathing. You want your neighbor to cut the tree branches so that they are no longer encroaching over your sun-bathing area, but your neighbor’s yard lacks signs of any landscape maintenance. Thus, you are worried that asking your neighbor to trim the trees will result in a “no.” Can you take matters into your own hands and cut the trees yourself? Could you face legal consequences?

The Right To Self-Help:

Wisconsin recognizes the common law right of self-help to cut encroaching branches at the property line. As an owner of real property, you not only own the physical ground itself, but also the airspace extending from your property. So, if your neighbor’s trees are encroaching your airspace, you are entitled to cut the overhang at the property line without informing your neighbor that you are doing so. However, it is wise to hire a professional to do the job, as you do not want to risk damaging the trees, or cutting too far onto your neighbor’s property, which could result in a trespass.

Issue – Building Obstructing Sunlight:

Suppose the facts are a bit different and instead of your neighbor’s trees encroaching on your sunbathing area, it is the construction of a 2-story shed. The shed now completely obstructs your sunbathing area, and now obviously a much larger issue that cannot be addressed with the right to self-help.

Private Nuisance Law:

Wisconsin’s Supreme Court took up a similar “building obstructing sunlight” issue in the case Prah v. Maretti in 1982. A landowner, Prah, relied on sunlight for his rooftop solar panels. His neighbor began constructing a home on the adjacent lot, which effectively blocked the sun from reaching the solar panels. Prah sued his neighbor for private nuisance and won. The court determined that Prah’s claim for private nuisance was reasonable and could therefore go forward, or in other words, back to the court to determine the appropriate remedy. The remedy the court granted is not stated, but it likely either barred the neighbor from building the home or required him to redesign it in a manner that did not block Prah’s solar panels.

The key factor that weighed into Prah’s successful private nuisance claim is that it was “reasonable.” In our example above, the building encroaching on one’s “sunbathing area” is likely to be deemed “unreasonable” and therefore, an unsuccessful private nuisance claim. In addition to a requirement of reasonableness, the nuisance must also be substantial; this is measured by asking whether the nuisance would be inconvenient or offensive to a reasonable member living in the same community. Again, it is unlikely that other neighbors value sunbathing as much as the sunbather in our example, thus making the encroachment insubstantial and an unlikely candidate for a successful private nuisance claim.

Schedule a Consultation Today!

If you are having issues or questions with your neighbor’s trees on your property, reach out to Wynn at Law, LLC for a real estate law consultation today! Wynn at Law, LLC has three convenient law office locations throughout Southeastern Wisconsin covering vacant land transactions in:

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Despite being steadier and less cyclical than the ‘regular’ real estate market, buying and selling vacant land can be challenging for the unprepared. It is critical to understand how to buy and sell vacant land before embarking on your investment journey. Let’s explore some of the key concepts to keep in mind when buying or selling a piece of land.

Is Buying and Selling Vacant Land A Good Investment?

People often get the impression that because vacant land sits idly by, without any paying tenants, it is not a good choice for producing cash flow. The truth is that certain vacant land can be great at producing hefty returns while minimizing ongoing expenses on the maintenance side. For a thorough look at vacant land’s potential as an investment, we will weigh some of the pros and cons.

Pros of Buying and Selling Vacant Land

Let’s start with analyzing the positives of vacant land investment. 

Solid ROI

Investors are always looking to diversify their portfolios, finding creative ways to maximize growth. Buying and selling vacant land can be a dependable way to achieve a healthy return on investment. It just takes the right timing and know-how to execute a successful transaction. 

First, it is critical to assess the quality of the land you are looking at. One of the keys to ensuring a good return on investment is purchasing raw land in areas where there is high demand and potential growth. 

It is critical to survey the land, identify potential risks, and analyze the surrounding market. If you cannot complete this process yourself, you will want to hire a third-party consulting firm to help evaluate the property. It is also important to remember that timing is critical for capturing a good return on investment.

Low Initial Cost

Often, purchasing raw, undeveloped, or otherwise vacant land requires low upfront costs. Unless you aim to buy vacant land in an already-developed or particularly in-demand area, you may not need to acquire the capital that residential or commercial real estate requires. 

Lower upfront costs mean that many vacant landowners can make their initial investment in a property without securing outside financing. A lower upfront cost can lead to greater returns and minimize potential losses.

Little Maintenance

Many of the risks associated with purchasing real estate comes from maintenance costs. Homes and commercial properties deteriorate as they are exposed to the elements and tenants, which means real estate investors must continue to reinvest capital into their properties to sell or rent the buildings. However, with vacant land, investors do not have those additional maintenance costs. 

Aside from some possible land upkeep, which is dependent on the type of parcel, there is little maintenance that needs to be performed, thus lowering costs and maximizing return associated with the investment. 

Big Opportunities

The possibility of making significant financial gains from the buying and selling of vacant land can make it a great opportunity. Investors can create a chance of turning a profit from purchasing a valuable plot of land. It just takes research, patience, and the ability to evaluate properties. Whether you are an experienced landowner or someone just getting started, there is an immense opportunity for those who want to buy and sell vacant land. 

Cons of Buying and Selling Vacant Land

Despite many positives to land transactions, there are a few drawbacks that you will need to consider before completing a purchase. It is highly recommended to consult with a local Wisconsin real estate lawyer before entering into a vacant land transaction. 

Fewer Tax Advantages 

One of the benefits of buying a home or commercial building is the tax breaks available for owners. Tax incentives like basic deductions, depreciation, and tax credits can help shield income for property owners. Unfortunately, these benefits do not often extend to vacant land properties. A real estate lawyer can help you identify the practical benefits of a parcel of land that you are interested in purchasing. 

Difficulty in Financing

If you are unable to purchase vacant land outright, you will need to secure financing. Home mortgages are one of the most common loans for people to take on, but buying vacant land requires different financing. The financing is generally more difficult to obtain than a traditional mortgage for a residential or commercial property. Lenders require many processes, such as surveying and zoning approval to be completed before the loan can be approved. 

Delayed ROI

Unlike flipping a home, buying and selling vacant land can take more time to realize the return on your investment. You may be waiting for factors outside of your control, such as the surrounding area to turn into viable commercial or residential developments before you are able to make a significant return on your investment.

Vacant land is an illiquid asset. The market for buyers is much smaller for vacant land than for residential homes. You may need to hold onto your property for decades to see the ROI you are looking for. 

Permits and Approvals Required

If you intend to develop on the land, you will need to obtain several permits and may need to tap into public amenities such as sewer services, water lines, and the electrical grid. You may need zoning permits, building permits and depending on your property location, you may need to subdivide the land.

Do I Need a Real Estate Lawyer for the Purchase?

While you are not required to have a lawyer to buy or sell vacant land in Wisconsin, it may be a good idea to have one to help you wade through potential issues that may arise. Real estate lawyers can help you through every step of the transaction. Much like with other real estate purchases, lawyers can ensure the process runs smoothly. This can range from filing the proper paperwork to appearing in front of zoning boards.

A Lawyer’s Advice on How to Buy Vacant Land in Wisconsin

After you’ve hired legal representation to assist in the process, there are some steps to take to make sure your vacant land investment goes as intended. Here are some things to keep in mind when buying or selling land. 

Identify Your Goals

Like any other big decision, it is critical to identify your goals before going into a vacant land transaction. You must ask yourself what you’re trying to get out of buying or selling vacant land. 

Are you trying to create a passive source of income? Are you trying to parlay the investment into further real estate transactions? Are you looking for a place to build your dream home?

The answer to these questions will help you define which parcel of land is the right fit for you, the timeline you want to hold onto it for, and other important decisions. 

Assess Your Financial Situation

Your financial standing is one of the most important things to evaluate when deciding if vacant land investments are a good idea for you. Do you have the personal capital for the purchase? Or will you need to secure outside financing? 

Additionally, it would be best to gauge whether you can afford a less than perfect transaction on your land. As explained above, sometimes it can take quite a while for investors to see their ROI on vacant land purchases, and it may be challenging to sell the property quickly. 

Find Your Ideal Piece of Land

Before making a purchase, you must identify your ideal piece of land. Do you want undeveloped property in a remote location? Or maybe you want to find an empty lot in a developing neighborhood that you can use to build a home on. Your ideal piece of land will guide you toward making the right purchase, whether a raw, vacant, or an undeveloped parcel. 

What is Raw Land in Wisconsin? 

Raw land, simply put, is land in its most undisturbed state. It is a piece of property that has not been improved or developed in any way. Often previously ignored, raw land is quickly becoming a popular choice for investors due to its typically low cost and higher upside.

Be Prepared to Wait

Securing the return on your vacant land investment doesn’t happen overnight. Often, it takes months, years, or even decades to reap the rewards of your purchase. Waiting for other activity to drive up the price of your property is vital. Buyers too often sell their land before it has reached its desired value. Prematurely selling can substantially undercut the profitability of your investment. Land purchases can, and should, be viewed as a long-term investment to help round out a comprehensive portfolio. 

Pick the Right Price

As with any investment, it’s crucial to set a predetermined price point based on your perception of the value of that vacant land. Then, wait until the property reaches that threshold before completing the transaction. 

Staging Can Help Sell Vacant Land 

When you’re ready to sell, make sure you make the property look as presentable as possible. Staging a property isn’t just for residential sales. It can also help sell your vacant land after you have decided to put it on the market. Remove unwanted debris, clear downed tree branches, remove the trash, and cut back undergrowth. Not only can proper upkeep entice a sale, but it can also increase the value of the property. 

Finance the Land Sale

Financing a vacant land sale is another dependable way for sellers to attract more buyers to their property. While it is uncommon in the residential real estate market, seller-financed land sales can benefit both parties involved in the transaction. 

Buyers who have trouble qualifying for traditional financing can purchase properties through owner-financed sales, and sellers can typically get a higher interest rate since the seller is the one arranging the terms of the financing. It can often be a mutually beneficial relationship, and one sellers should consider, especially if their property is having difficulty selling. This type of seller-financing is a complex process that should not be attempted without an experienced real estate lawyer involved.

How a Real Estate Lawyer Can Help You with Vacant Land Purchases

If you’ve decided that a Wisconsin vacant land purchase is right for you, a real estate lawyer will be a valuable member of your team to ensure that things go smoothly. Here is how a real estate lawyer can help you with vacant land purchases. 

Protection From Fraud

Unfortunately, fraudulent transactions in the vacant land market occur more often than one might think. Sellers can attempt to offload property that is unusable due to hazardous materials on-site, easement issues, or judgments that have been placed on the parcel. By hiring a real estate lawyer for your vacant land purchases, you can stop these situations before they occur, which will save you time and money in legal fees. 

Things to Know Before Buying and Selling Vacant Land

Real estate lawyers have a wealth of knowledge about properties and will assist you with any pre-sale contingencies along with reviewing the title to make sure it is clear. They can help you prepare for your purchase by identifying what to look out for on the parcel such as easements, encroachments and liens on the title. A real estate attorney will also help you after you have purchased the land with obtaining permits, variances, zoning changes or lot line adjustments.

Get a Wisconsin Vacant Land Legal Consultation

If you are looking into purchasing vacant land or any other type of property in Wisconsin, it is highly recommended to consult with a local real estate lawyer. To prepare for the ins and outs of your vacant land transaction, reach out to Wynn at Law, LLC for a real estate law consultation today! Wynn at Law, LLC has three convenient law office locations throughout Southeastern Wisconsin covering vacant land transactions in:

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Before you can move into your new home, there are a few critical steps to complete. As a buyer, it is essential to check off every requirement to avoid issues and delays at closing.

Buying a home is often the largest purchase a person makes in their life. Before signing any paperwork, you must review and understand the documents. A real estate lawyer is beneficial in explaining the complicated legal documents and inspecting the contracts. To assist with the buying process, Wisconsin real estate lawyer, Shannon Wynn, created this buying guide and buyer’s checklist to help new home buyers. This helpful guide will review the closing timeline, answer common questions, and provide a closing checklist for real estate buyers. 

Real Estate Closing Timeline for Buyers

Buying a home is generally a long, complicated process with many steps and procedural formalities. The Offer to Purchase begins the process and includes the price the buyer will pay for the property, the closing date, contingencies that must be met, and other important terms and conditions for the transaction. Once an offer is accepted, it is time to prepare for closing. The purchasing process usually takes 30-60 days from when an offer is accepted.  

Hiring an experienced real estate lawyer and realtor make the closing process significantly smoother. These professionals are valuable in assisting you through the stressful contract-to-closing period. If you are looking for a Wisconsin real estate lawyer to help you with the closing of your new home, contact Wynn at Law, LLC at 262-725-0175 or send us a message.

Home Buyers Pre-Closing Checklist

Resolve Contingencies

The initial Offer to Purchase will have contingencies that need to be met before the transaction is finalized or closed. The most common contingencies are: home inspection, appraisal, and financing. The steps below will cover these contingencies and other common transaction conditions. 

Order A Home Inspection

It is highly recommended to have a professional home inspection conducted by a licensed home inspector. The inspection is the buyer’s opportunity to identify any significant issues, known as defects, before closing. The home inspection is also a chance for a buyer to learn more about the features of the home. There are many systems and features for the inspector to check. Below is a list of items that you may want to have the inspector review: 

• Building structure and foundation
• Roof and chimney
• Plumbing
• Electrical
• Heating/cooling system (HVAC)
• Windows, doors, floors, and walls
• Land grading and drainage

Once the inspection is finished, the inspector will create a report that notes any defects that were identified during the physical inspection. 

Depending on the transaction, the Offer to Purchase may include additional tests which are separate from the home inspection, such as:  

• Septic inspection
• Radon test
• Mold test
• Well inspection
• Well water test
• Asbestos test

If the home inspection or test identifies defects in the property, it may be worthwhile to negotiate with the sellers for a credit/price reduction or for the repairs to be completed prior to closing. A Wisconsin real estate lawyer can advise buyers about inspection contingencies and prepare an Amendment to the Offer to Purchase to account for the repairs.

Order An Appraisal

Lenders require the real estate to be appraised and will not commit or approve  a loan until the appraisal is completed. For this step, an appraiser may visit the property and ensure that the purchase price is considered fair market value. The buyer must check that the appraisal value is at or above the contract price before proceeding with the closing process. 

Order A Survey

As the buyer, you may be interested in having a survey of the property conducted. If listed as a contingency in the offer, the seller will typically pay for the survey. In some cases, there may already be a recent survey on record.

Get Final Mortgage Approval & Lock In Your Rates

Buyers usually finance their purchase with a mortgage from a bank, credit union, or other commercial lenders. Once your final contract has been signed, it is vital to provide your lender a copy. Before closing, it is beneficial to discuss the interest rate with the lender. Locking in the interest rate is important because even small fluctuations in the rate can increase your monthly payments. 

Shortly before closing, your lender will be able to provide you with a loan commitment; the commitment states that you will receive a loan from the lender in the amount necessary to purchase the real estate.  

Note: All interested home buyers should be pre-qualified for a mortgage loan before beginning a home search. Pre-qualification makes the offer to purchase and final approval process quicker.

Check The Property Title

Prior to closing, you need to conduct a full review of the property title to ensure that the seller is legally able to sell the property. A title search is an essential step in the pre-closing process. A title search verifies that the seller can legally transfer ownership of the property and that the property has no easements, disputes, or liens.

In this step, all existing records, including deeds, mortgages, paving assessments, divorce settlements, liens, and other public documents are thoroughly reviewed and examined. A property owner must fix errors, disputes, tax debts, and liens on the title prior closing. Buyers should have a real estate lawyer review the title insurance commitment for an additional layer of protection against issues with the title.      

Purchase Homeowners Insurance

All lenders require that buyers purchase homeowners insurance. This type of insurance protects the lender from a loss if the home is damaged or destroyed. Some lenders only require you to purchase homeowners insurance in the amount equal to your loan. It is recommended to have coverage equal to your property value and personal belongings replacement cost.

Conduct A Final Walk-Through Of The Home

The final walk-through allows the buyer to confirm that the condition of the property has not changed since the Offer was accepted. Typically, the final walk-through occurs in the 24 hours before the closing. This step enables buyers to check that the home is vacated, clean, and in the expected condition. During the final walk-through, take your time to verify all repairs and that all items/appliances/furniture included in the Offer to Purchase are correct. 

Review The Closing Disclosures (CD)

The Closing Disclosure is a document sent to a Buyer from their lender. This document will include important information about your mortgage, including your monthly mortgage payments, loan interest rate, length of your mortgage, and additional fees related to the closing. The buyer must sign the CD at least three business days prior to closing to ensure there are no issues.

Confirm The Closing & Move-In Dates

The closing date is set in the original Offer to Purchase. Most often, you are able to move in the same day as closing, but occupancy information is also in your Offer to Purchase.

Some additional steps may be unique to your home buying situation. Contact a local Wisconsin real estate lawyer to ensure that all legal documents, correspondence, and closing criteria are lawfully met.

Buyers Closing Day Checklist – What To Expect 

Once all the contract contingencies are met and the steps listed above have been completed, the transaction can close. At the closing, the buyer and seller will meet at the title company’s office at the agreed-upon date and time. Buyers should plan to sign numerous, complex legal documents and spend up to an hour at the closing.  

Below are some of the documents that buyers may sign at the closing: 

• Promissory note
• Closing Disclosure
• Closing Statement
• Mortgage
• Title Company Disclosure

It’s wise to have your real estate lawyer attend the closing with you to explain the documents and to answer questions. Lawyers often spot potential problems that can be fixed and will assist with unanticipated issues that may arise. 

Items Buyers Should Bring To Closing

• Photo ID (official government-issued ID, such as driver’s license or passport)
• Proof of wire transfer, escrow account information, or cashier’s check
• Checkbook 

After Closing Checklist

After closing, the property deed is recorded at the county Register of Deeds office. The deed is then returned to the buyer via mail. This filing puts the buyer’s ownership of the property on the public record. After the closing, the buyer will also receive a copy of the title insurance policy for their records. 

Congratulations – once the closing process is completed, you have purchased your new home!

Do I Need A Lawyer For The House Closing Process?

Wisconsin does not require a real estate lawyer for real estate transactions, but it is highly recommended for buyers. Your Wisconsin real estate lawyer will protect your interests and make sure all legal documents, correspondence, and closing criteria are lawfully met. 

Wynn at Law, LLC Helps Buyers Throughout The Real Estate Closing Process

Buying a home is a detailed process that takes time to complete. As the buyer in a real estate transaction, it is always better to have a real estate lawyer on your side. By law, only a real estate lawyer can provide you with legal advice during the home buying process, not a real estate agent, loan officer, or closing agent. If you need a Wisconsin real estate lawyer when buying a property, please contact Wynn at Law, LLC by phone at 262-725-0175 or send us a message on our website’s contact page. Wynn at Law, LLC has law offices located in Lake Geneva, Salem, and Delavan, Wisconsin.

Continue Reading: Real Estate Closing Checklist for Sellers

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A real estate closing is the transfer of property ownership from the seller to the buyer. This complicated process has many steps and procedural formalities that make up the closing timeline. On average, it takes 30-60 days from when an offer is accepted until the transaction is complete.

Thankfully, Wisconsin real estate attorney, Shannon Wynn, created this article to help sellers navigate the complicated real estate closing process. Below is a breakdown of what sellers can expect during the closing process and a helpful real estate closing checklist for sellers. This guide splits the closing timeline into four phases:

• Offer
• Contingencies
• Title Work
• Closing

Hiring a real estate attorney makes selling real estate significantly smoother. If you are looking for a Wisconsin real estate attorney to help close on the sale of your property, contact Wynn at Law, LLC at 262-725-0175 or send us a message.

Real Estate Pre-Closing Checklist for Sellers

Below is a checklist of typical steps that sellers should plan for:

• Acceptance of Offer
• Provide Condominium Disclosures
• Prepare for Home Inspection
• Respond to Inspection Repair Requests
• Order Septic Test
• Order Well Water Test
• Respond to Testing Repair Requests
• Order Survey
• Prepare for the Appraisal
• Order Title Insurance
• Prepare the Deed or Conveyance Documents
• Review Transaction Paperwork and Legal Documents
• Move Out
• Clean the House
• Transfer Utilities

There may be additional steps that are specific to your situation. It is highly recommended that sellers contact a real estate attorney to ensure that all legal documents, communications, and closing criteria are lawfully met.

Contingencies – What Problems Could Cause Closing Delays?

A seller needs to meet every contract contingency requirement and deadline or request an extension to the Offer. While some issues may arise that may be out of the seller’s control, it is valuable to understand the most common reasons for closing delays.

Financing Problems – The most common reason for a closing delay is a financing issue on the buyer’s side. In these situations, buyers may have submitted an offer without loan pre-approval or offered a price outside their budget. In other cases, it may not be the buyer’s fault at all, but the lender is simply unable to meet the deadline and needs an extension to finalize the financing. 

Appraisal Problems – Issues during the appraisal process are rare but can occur. One such problem is that the home’s appraisal value is lower than the price in the offer to purchase. Discrepancies in the appraisal value can lead to lender financing issues and may require renegotiating the sale price. Another, more common, issue is that the appraiser is simply unable to finish the appraisal by the contract deadline and requires an extension.

Inspection Problems – An official home inspection may reveal unexpected issues with the property. Depending on the severity of the inspection defects, you may have to hire a licensed contractor to make repairs or discount the sale price.

While these problems can be frustrating and delay the closing process, an attorney can resolve most of these issues. Talk to your real estate attorney to develop a plan if any of these problems arise.

Title Work

Title preparation is an essential part of the real estate closing process for buyers and sellers. A house title is the historical ownership record of a property that shows who currently owns the property, contains the legal description of the property, and shows any liens encumbering the property. Liens against the property prevent a property owner from having a ‘clean’ title. A property owner may need to fix the title before selling the property. A complete title review is a necessary step to ensure that the property is able to be sold to a buyer.

Typically, a title commitment is ordered, and a title search is conducted to review any existing records including deeds, mortgages, municipal assessments, liens, and other public documents that may impact the owner’s ability to sell the property. Once the title search and examination are complete, the title company prepares a title commitment and provides a copy to the buyer, seller and attorney.

Sellers Closing Day Checklist – What to Expect

Once your closing date has arrived, the contact contingencies are met, and the title has been checked, it is finally time to complete the sale. 

The closing is hosted at the title company, and all involved parties will want to be there on time to sign the closing paperwork. If you would prefer, most closing companies allow sellers to pre-sign the closing documents as well.

Sellers should prepare to sign multiple documents for the closing, including:

• Closing Statement
• Closing Disclosure
• Deed
• Bill of Sale
• FIRPTA
• GAP Insurance
• Disclosure Statement
• Tenant/Work Affidavit

It’s wise for sellers to have a real estate attorney attend the closing. Attorneys often assist with unanticipated problems that can arise at closing, review documents, provide legal advice, protect your interests, and answer questions.

What Sellers Need to Bring to the Closing:

• House Keys and Access Codes
• Personal Checkbook for Minor Incidentals
• Lien Waivers from Contractors
• Government-Issued Photo ID for All Sellers Listed on the Contract

Ask your real estate attorney if any additional documents or items are needed, such as property tax statements, utility bills, proof of home warranty, or homeowners insurance documents. 

Closing Costs for Sellers

Sellers are responsible for paying a variety of expenses involved in the closing. In addition to the remaining mortgage balance (if applicable), sellers can expect to pay 5-10% of the home sale price in closing costs. If the sale of the property is less than the total balance due, the remainder is often deposited into an escrow account by the seller prior to the closing. Below are some of the typical closing expenses for sellers:

• Real Estate Agent Commission
• State Transfer Taxes
• Loan Payoff Costs
• Outstanding Homeowner Association Dues
• Property Taxes
• Title Insurance Fees
• Title Company Closing Fees
• Real Estate Attorney Fees

After Closing Checklist

After signing the closing paperwork, the title is transferred and the keys are turned over to the buyer––it is finally time for the seller to receive the remaining balance of the property sale funds.

• Verify that the proceeds of the sale are correctly deposited into your account.
• Cancel your homeowner’s insurance policy.
• Keep your closing paperwork in a safe location.
• Change your address with the USPS and forward your mail.

Do I Need an Attorney to Close a Real Estate Transaction?

A real estate attorney is not required for closing a Wisconsin real estate transaction, but attorneys often play a crucial role in a successful real estate transaction. A licensed Wisconsin attorney can provide personalized guidance throughout the process while ensuring all legal documents, communications, and closing criteria are met.

When Should Sellers Hire a Wisconsin Real Estate Attorney?

It is beneficial for sellers to contact a real estate attorney at the listing stage, rather than waiting until later in the sales process. This allows your attorney to help with pre-offer tasks such as addressing contract negotiations and reviewing offer contingencies when you have an interested buyer. Once an offer is accepted, your attorney can help you manage the contingencies and closing process. The State Bar of Wisconsin explicitly lays out these six ways that real estate attorneys can help a seller:

• Write or review the listing agreement with the seller’s real estate agent
• Review the buyer’s Offer to Purchase
• Draft or review the seller’s Counteroffer and Amendments
• Help satisfy contingencies to the Offer
• Draft the Deed and other legal documents required to close the sale
• Advise the seller at closing to be sure all closing documents, including financial arrangements are in order

Wynn at Law, LLC Helps Real Estate Sellers Throughout The Closing Process

Selling a home or property is a complex process. By law, only a real estate attorney can provide you with legal advice during the home sale process, not a real estate agent, loan officer, or title company. Sellers need an experienced Wisconsin real estate attorney in their corner who will look out for their interests. Wynn at Law LLC’s real estate attorneys are active members of the Wisconsin Realtors Association and are available to address all of your questions and concerns.

Wynn at Law, LLC represents sellers in residential, commercial and vacant land real estate transactions. If you are interested in selling property, please contact Wynn at Law, LLC by phone at 262-725-0175 or send us a message. Wynn at Law, LLC has offices located in Lake Geneva, Salem, and Delavan, Wisconsin.

Continue Reading: Real Estate Closing Checklist for Buyers

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