The Wisconsin Supreme Court in Below v. Norton, 2008 WI 77, 751 N.W. 2d 351, expanded the reach of the Economic Loss Doctrine (ELD) to bar claims of fraud and intentional misrepresentation in residential real estate transactions. The Wisconsin Legislature has fought back:
"In addition to any other remedies available under law, a transferee in a residential real estate transaction may maintain an action in tort against the real estate transferor for fraud committed, or an intentional misrepresentation made, by the transferor in the residential real estate transaction." Please see the full text of the Senate Bill here: http://www.legis.state.wi.us/insession/insessiondocs/docs/SB-9.pdf
This new legislation does three (3) things: 1) it protects purchasers of land in WI, without creating the duty to draft veracity warranties as was required by Below. 2) it strengthens the ELD as to all other contracts. Below came down July 1, 2008 and by January 21, 2009, the Senate was working to overturn this decision. ELD decisions in commercial real estate contracts came down long before Below, but no such legislation has been created and passed for commercial protection. 3) Creates an arbitrary deadline for the cessation of fraud. The first two effects are self-explanatory, the third desires further comment.
The legislation (creating Wis. Stat. § 895.10) includes a provision that this statute will not apply retroactively, but will apply to transactions that close on the effective date of the legislation. As Governor Jim Doyle signed the legislation on April 8, 2009, all falsehoods told before that date are immune, but after are punishable by tort. Yes, according to Below you can go after a seller for "false advertising" carrying far lessor penalties and a greatly shorter statute of limitations. So, for the next six (6) years, attorneys in this state must remember the magical April 8, 2009 deadline in determining whether tort actions can occur.
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Tenants on the other hand also have their basic rights according to the regulations issued by the housing development authority. Tenants have the right to a habitable and healthy environment and must acknowledge the landlord should they encounter certain problems that hinder the quality of their living conditions. Their primary obligation towards their tenant is to promptly and regularly pay their monthly rents as well as submitting to the terms and conditions in the rental agreement they have signed together with the property owner. Visit sitting tenant to get more information about this.
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