The truth: If the developer/builder has a Wisconsin real estate license, then Wis sees. Admin. Code § REEB 24.075 (3) stipulates that the customer may enter into certain binding agreements. Have you ever wondered how a builder can require a buyer to build with the builder if the buyer bought the land from the builder? Try to say this sentence 20 times quickly. Developers who also have a real estate license have the legal ability under Wisconsin law to draft subdivision restrictions and agreements and condition the sale of a property by tying the developer to the land in one form or another. This concept is better known as the manufacturer`s connection arrangement. For example, a builder who also has a real estate license can create a binding agreement that connects the builder and the construction of the house: the buyer must use the builder to build the house when the buyer buys the land. Wisconsin`s administrative code allows a real estate licensor, who is also the builder, to condition the sale of vacant land or upgrade certain properties as long as the developer meets certain requirements. The corresponding part of Wis. Admin. Code § REEB 24.075 is provided for reference. The truth: Given that the developer is a licensee who owns the properties in a number of different entities, there seems to be a question of whether the restrictions and agreements might violate licensing law, especially wis. Admin.
Code § REEB 24.075 (1) and (2) with regard to binding agreements. In addition, restrictions and obligations that owners who wish to sell their property register with the developer or licensee or pay a fee to the builder would not be binding on properties sold prior to the imposition of this requirement. This article is part of a series that reveals the truths of real estate practice and dispels all the myths immortalized. Since 2011, these articles have dealt specifically with protected buyers, “as is” transactions, the buyer`s agency, the cause of supply, the use of unauthorized forms, and three elements specifically related to inspection contingency and inspection report when the transaction fails, as well as the determination of inspection and testing. The truth: Wis. Admin. Code § REEB 24.075 (3) allows the builder / developer with a real estate license to enter into certain binding agreements that could make the sale of the land belonging to the builder / developer subject to the buyer`s obligation to use the builder to build the house. An agreement is an agreement that requires a buyer to purchase other goods or services through the seller as a condition of purchasing the desired goods or services, or that the buyer does not purchase that product from another supplier.