Who needs the WB-12 Farm Offer to Purchase?
WB-12 Farm Offer to Purchase is a form approved by the Wisconsin Real Estate Examining Board. The form was created for use of real estate brokers representing the the seller and buyer in the sale and purchase of a farm.
What is the form for?
The WB-12 Farm Offer to Purchase is supposed to record the details of the farm transaction and legally bind the parties to follow its provisions. Therefore, it serves as a legal confirmation of the purchase and sale of the farm.
Is the WB-12 Farm Offer to Purchase accompanied by other documents?
Seller has to deliver to the buyer the following:
- A list of all federal, state, county, and local conservation, environmental, farmland, or other land use programs, restrictions, agreements, or conservation easements, that apply to any part of the property.
- Evidence of title in the form on an owner’s policy of title insurance in the amount of the purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin.
- Documents evidencing that the sale of the property has been properly authorized, if seller is a business entity.
- An inventory of all equipment, fixtures, appliances, supplies, tools and other personal property included in the transaction.
- Uniform Commercial Code lien search as to the personal property included in the purchase price, showing the property to be free of all liens, other than liens to be released prior to closing.
- Any available agricultural operational records including pesticide, fertilizer and herbicide application, handling and storage, and livestock waste storage and spreading.
- Documentation confirming tillable land acreage, crop allocation, different crop bases, crop yields such as Farm Service Agency reports.
- Financial records including profit and loss statements, balance sheets, accounts payable and receivable, and records pertaining to any accrued or payable income, sales, payroll, unemployment or Social Security taxes relative to the farm operations.
- Municipal records, reports or other documentation confirming what development rights have been transferred or received under the applicable municipal Transfer of Development Rights ordinances.
- Any contracts, leases, permits, licenses, distributorships or franchises relative to the farm operations.
When is the form due?
The offer is binding upon the seller and buyer if a copy of the accepted offer is delivered to the buyer on or before the day agreed by the parties. The offer may be withdrawn prior to delivery of the accepted offer.
How do I fill out the form?
As a rule, the form is completed by the real estate broker involved in the transaction. The text of the form is self-explanatory.
Where do I send the WB-12 Farm Offer to Purchase?
Two original copies of the offer must be retained by the buyer and the seller, and one more copy should be made for the broker’s records.