When a Home Floods Mid-Sale in Wisconsin

This past weekend, Wisconsin saw record rainfall — and many basements took on water.
If you’re under contract to buy or sell a home, you might be wondering:
What happens now?

Here’s a breakdown of how flooding during a transaction is handled in Wisconsin, and how disclosure plays into it.

1. When Flooding Happens While You’re Under Contract

If water damage occurs after you’re already under contract, Wisconsin law — and your purchase agreement — will guide the process.

  • The seller typically must maintain the property in the same condition as it was on the date of the offer (normal wear and tear excepted).

  • New flooding is not “normal wear and tear,” so the seller must disclose it to the buyer as soon as it’s discovered.

  • This usually triggers negotiations: repairs, credits, price adjustments, or in extreme cases, the buyer’s right to walk away.

2. If Past Water Problems Were Already Disclosed in the RECR

The Real Estate Condition Report (RECR) is a required seller disclosure in most residential sales.
If it was already disclosed that the home has experienced water in the basement or flooding:

  • Buyers are entering the deal knowing it’s a risk.

  • If similar water damage happens during the contract, it may not be a “new defect” — but if the damage is worse than expected, the buyer can still request repairs or credits.

  • Inspections, further evaluations, and negotiation are common.

3. If Past Water Problems Were Not Disclosed — But They Occur During the Contract

If flooding happens and the seller never disclosed prior issues in the RECR, there are two possibilities:

  1. This is truly the first time the property has had water — in which case it’s a new disclosure and part of the normal under-contract negotiation process.

  2. The seller knew about prior water issues but didn’t disclose them — this can become a misrepresentation issue, and in serious cases, grounds for legal action.

  • In Wisconsin, failing to disclose known defects can open a seller up to liability, even after closing.

4. How It’s Usually Handled

Most of the time, buyers and sellers work it out without courtrooms or drama:

  • Inspection & Damage Assessment – How much damage is there? Is it surface-level cleanup or a major structural issue?

  • Negotiation – Repairs, credits, or price adjustments are the most common solutions.

  • Financing Considerations – Lenders may require re-inspections or additional appraisals if damage is significant.

  • Walk-Away Option – If the issue can’t be resolved, the contract may allow the buyer to cancel and get their earnest money back.

5. Pro Tips for Buyers & Sellers in Flood-Prone Areas

  • Buyers: Always ask about past water issues, even if you don’t see signs. Consider a flood inspection and check FEMA maps for flood zones.

  • Sellers: Disclose everything. It protects you from future claims and surprises during the sale.

  • Both Parties: Act quickly when damage happens — delays make it harder to resolve and may impact insurance coverage.

Bottom line:
Flooding during a home sale can feel overwhelming, but with quick action, honest communication, and a solid understanding of your rights and obligations, it’s usually possible to navigate it successfully — without sinking the deal.

jennifer Sloan