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[WI] Can a buyer require the seller to fully credit a defective siding repair found during inspection?

Liz
Liz

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The WB-11 Residential Offer to Purchase form includes an inspection contingency, which allows buyers to renegotiate or terminate the contract if significant defects are found during the inspection. In Wisconsin, sellers are also required to complete a real estate condition report, and under Wis. Stat. § 709.033, a buyer generally retains remedies where the report fails to accurately disclose a known defect, with Wis. Stat. § 709.035 outlining the buyer's available remedies for a violation of those disclosure requirements. Since your inspector identified the siding as defective, this contingency could be used as a basis for your request. The seller could try to contest it, since they are claiming it's a minor issue. However, your inspection report could be evidence in your favor.

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Hello. My husband and I made an offer on a home in Wisconsin. We signed form WB-11 RESIDENTIAL OFFER TO PURCHASE, with inspection contingency. On the inspection report, the inspector listed the siding as defective because installation did not follow manufacturer install instructions and is missing flashing with exposed tyvek house wrap visible between butt joints. His conclusion is that overall it is defective and must be replaced and cannot be repaired. The sellers noted on the disclosure form "minor cracks visible, believed to be cosmetic." The sellers are now disputing our inspector's findings (even though Wisconsin building code ASTM 1186 installation standard deems the problem a defect) and not willing to replace the siding or credit us the full amount to do so. Our agent has this property as her listing and directed us to look at it, but has shifted the representation of the home to her associate. Later today we will be receiving evaluations and estimates from siding contractors, and we are seeking legal confirmation on our position with the seller. Thank you!

Lexi

Lexi, Chatbot

I understand how frustrating it can be to deal with disputes over property inspections. Have you already communicated your concerns and the inspector's findings to the sellers in writing?

No, we want legal advice before we do so.

Lexi

Lexi, Chatbot

Are there any specific terms in the purchase agreement that you believe support your position regarding the siding issue?

Yes, line 212 to 215 defines the term defect and our inspector specifies the defect.

Lexi

Lexi, Chatbot

Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they'll be able to help with your siding dispute.

No.

Liz

Liz

Hi there! Welcome. My name is Liz and I've been an attorney for more than a decade, and I am here to assist with your legal concerns. Just so you are aware, our service is a legal information-only site. No attorney-client relationship is formed from our conversation. So I can best help, has the seller offered any accommodations?

Hi Elizabeth, thank you! It was a verbal offer through the agent of covering 25% of the replacement cost but not including tear off and disposal.

Liz

Liz

And they are unwilling to offer more?

The inspector documented the problem. They made that offer before 3 contractors are providing their evaluations later today. So we do not have an updated offer.

Liz

Liz

Got it, thanks for explaining. If they won't fix it or offer more, do you want to terminate the contract?

Closing is scheduled for June 5, 2026. We do not expect the seller to fix the siding before closing, and would like the seller to credit us the full cost of replacement including tear off and disposal. If they are not willing to do that, we would like to terminate the contract and receive our $5,000 earnest money back.

Liz

Liz

The WB-11 Residential Offer to Purchase form includes an inspection contingency, which allows buyers to renegotiate or terminate the contract if significant defects are found during the inspection. In Wisconsin, sellers are also required to complete a real estate condition report, and under Wis. Stat. § 709.033, a buyer generally retains remedies where the report fails to accurately disclose a known defect, with Wis. Stat. § 709.035 outlining the buyer's available remedies for a violation of those disclosure requirements. Since your inspector identified the siding as defective, this contingency could be used as a basis for your request. The seller could try to contest it, since they are claiming it's a minor issue. However, your inspection report could be evidence in your favor.

Liz

Liz

Does that all make sense?

Yes, thank you. Since our agent signed with us first, but then took the seller on as a client, but after she forwarded us the property to look at she "pushed the listing to her associate in house," do you feel we need legal representation to terminate the contract? We feel at this point she is protecting the seller's interests more than ours.

Liz

Liz

Did she request your consent to the dual representation in writing?

It is in the buyer-agent agreement we signed when we started working with her that a property would be assigned to another in-house agent if the property agent represented both buyer and seller. That is fine, no issue. We found that once the defect was noted by our inspector, and before an estimator even came out to further evaluate, she called and told us that "in a situation like this" it is typical for the seller to credit 25% of the replacement cost. That comment alone felt that she was representing the seller's interests and not ours. She did not even ask if we'd consider this compromise, or what our position was. Basically, here's what's standard, when everything we are reading on this states it's a clear defect and there's no "repair remedy," it must be torn off and replaced. We ended the conversation by saying we want to see what the estimators come back with.

Liz

Liz

The minute there was a conflict, continuing to represent both of you could have been an ethics violation.

Ok, thank you. If the sellers do not offer full replacement cost and we would like to terminate the contract, do you recommend that we have clear standing to do so without securing an attorney or should we secure a real estate lawyer to serve them notice?

Liz

Liz

If the sellers do not offer the full replacement cost and you wish to terminate the contract, you should be able to do so with a notice of termination. If they resist though, then you may want to hire a local attorney.

Thank you SOOOOO much! You have given us peace of mind. I sincerely appreciate it. Thank you for this service and your valuable time. Have a good day!

Liz

Liz

You're very welcome! Have a wonderful day!

Liz

Liz

46,810 satisfied customers

Liz
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