2015 WISCONSIN ACT
258
An Act
to repeal
106.03, 440.03 (11m) (a) 2., 440.03 (13) (b) 72., 440.08 (2) (a) 69., 452.01 (4d), 452.01 (4h), 452.01 (4p), 452.01 (4t), 452.01 (9), 452.025, 452.025 (4), 452.09 (1) (c), 452.09 (5), 452.10 (4) (a), 452.12 (6), 452.137 (1) (b), 452.137 (1) (d) and 452.17 (2);
to renumber and amend
452.03, 452.10 (4) (b) and 452.19;
to consolidate, renumber and amend
440.03 (11m) (a) (intro.) and 1.;
to amend
71.63 (2), 73.0301 (1) (a), 102.07 (8) (a), 103.001 (5), 103.10 (1) (b), 106.01 (1), 108.227 (1) (b), 109.01 (1r), 111.32 (5), 186.113 (19), 440.03 (11m) (am), 440.03 (11m) (b), 440.03 (11m) (c), 440.13 (2) (c), 452.01 (1m), 452.01 (3) (d), 452.01 (3e), 452.01 (3m), 452.01 (3s), 452.01 (3w), 452.01 (4), 452.01 (5), 452.01 (5), 452.01 (5j), 452.01 (5m) (b), 452.01 (5p), 452.01 (5p), 452.01 (5w), 452.01 (7), 452.01 (7r), 452.01 (9), 452.025 (1) (b) 3., 452.025 (3) (a), 452.025 (3) (b) 2. g., 452.05 (1) (a), 452.05 (1) (a), 452.05 (1) (i) (intro.), 452.05 (1) (i) 1., 452.05 (1) (i) 3. b., 452.07 (1m), 452.07 (2), 452.07 (2), 452.09 (1) (b), 452.09 (2) (c) (intro.), 452.09 (3) (a), 452.09 (4) (a) 1., 452.10 (1), 452.10 (2) (a), 452.11 (1), 452.12 (2) (a), 452.12 (2) (c), 452.12 (3), 452.12 (4), 452.12 (5) (b), 452.12 (5) (c), 452.13 (1) (a), 452.13 (2) (a), 452.13 (2) (b), 452.13 (2) (bm), 452.13 (2) (c), 452.13 (2) (e) (intro.), 452.13 (2) (e) 2., 452.13 (2) (f) 1., 452.13 (3), 452.13 (4), 452.13 (5), 452.132 (2) (c), 452.133 (title), 452.133 (1) (intro.), (c), (d), (e), (f) and (g), 452.133 (2) (intro.), (a) 1. and 2., (b) and (c), 452.133 (3), 452.133 (4) (a) and (b) 1. and 2., 452.133 (5), 452.133 (6) (intro.) and (a), 452.134 (1) (a), 452.134 (1) (b), 452.134 (2), 452.134 (3), 452.134 (4), 452.135 (1) and (2), 452.137 (2) (a) 1., 452.137 (2) (a) 2., 452.137 (2) (b) 1., 452.137 (2) (b) 2., 452.137 (2) (c), 452.137 (2) (d), 452.137 (2) (e), 452.137 (2) (f), 452.137 (2) (g), 452.137 (3) (intro.), 452.137 (3) (c), 452.137 (3) (c), 452.137 (4) (a), 452.137 (4) (b) (intro.), 452.137 (4) (b) 1., 452.137 (4) (b) 3., 452.138, 452.139 (1), (2) and (3), 452.14 (1), 452.14 (2), 452.14 (3) (intro.), 452.14 (3) (a), 452.14 (3) (b), 452.14 (3) (c), 452.14 (3) (d), 452.14 (3) (f), 452.14 (3) (g), 452.14 (3) (h), 452.14 (3) (i), 452.14 (3) (j), 452.14 (3) (jm), 452.14 (3) (k), 452.14 (3) (L), 452.14 (3) (m), 452.14 (3) (p), 452.14 (4), 452.14 (4m) (intro.), 452.14 (4m) (a), 452.14 (4m) (b), 452.14 (4r), 452.15 (1) and (2), 452.17 (4) (a), 452.17 (4) (a) 1. and 2., 452.19 (1), 452.20, 452.21, 452.22 (2), 452.23 (1), 452.23 (2) (intro.), 452.23 (2) (b), 452.23 (3), 452.23 (4), 452.24 (2), 452.25 (1) (a), 452.25 (1) (b), 452.25 (1) (c) 2., 452.25 (1) (d), 452.25 (1) (e), 452.25 (2) (b), 452.30 (7) (b), 707.55 (5) and 707.55 (7);
to repeal and recreate
104.01 (2) (b) 2., 108.02 (15) (k) 7., 452.01 (7), 452.14 (3) (intro.) and 452.19 (title); and
to create
102.07 (8) (bm), 102.078, 452.01 (1o), 452.01 (1p), 452.01 (3) (i), 452.01 (4w), 452.01 (4x), 452.01 (4y), 452.01 (5c), 452.03 (2), 452.05 (1) (j), 452.12 (5) (bm), 452.132, 452.133 (4m), 452.142, 452.19 (2), 452.30, 452.34, 452.38, 452.40 and 452.42 of the statutes;
relating to:
various changes regarding the laws governing real estate practice, employment relationships between real estate licensees and real estate brokerage firms, a statute of limitations for actions against persons engaged in real estate practice, extending the time limit for emergency rule procedures, providing an exemption from emergency rule procedures, and granting rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Section
1b
.
71.63 (2) of the statutes is amended to read:
71.63
(2)
"Employee" means a resident individual who performs or performed services for an employer anywhere or a nonresident individual who performs or performed such services within this state, and includes an officer, employee or elected official of the United States, a state, territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of these entities. The term includes an officer of a corporation, an entertainer and an entertainment corporation, but does not include a
qualified real estate agent or a
direct seller who is not treated as an employee under section
3508
of the Internal Revenue Code
or a real estate broker or salesperson who is excluded under s. 452.38
.
Section
1c
.
73.0301 (1) (a) of the statutes is amended to read:
73.0301
(1)
(a) "Credential" has the meaning given in s. 440.01 (2) (a)
, but does not include a registration as an inactive licensee under s. 452.12 (6) (b)
.
Section
1d
.
102.07 (8) (a) of the statutes is amended to read:
102.07
(8)
(a) Except as provided in
par.
pars.
(b)
and (bm)
, every independent contractor is, for the purpose of this chapter, an employee of any employer under this chapter for whom he or she is performing service in the course of the trade, business, profession or occupation of such employer at the time of the injury.
Section
1e
.
102.07 (8) (bm) of the statutes is created to read:
102.07
(8)
(bm) A real estate broker or salesperson who is excluded under s. 452.38 is not an employee of a firm, as defined in s. 452.01 (4w), for whom the real estate broker or salesperson performs services unless the firm elects under s. 102.078 to name the real estate broker or salesperson as its employee.
Section
1f
.
102.078 of the statutes is created to read:
102.078
Election by real estate firm.
(1)
A firm, as defined in s. 452.01 (4w), may elect to name as its employee for purposes of this chapter a real estate broker or salesperson who is excluded under s. 452.38 by an endorsement on its policy of worker's compensation insurance or, if the firm is self-insured under s. 102.28 (2) (b), by filing a declaration with the department in the manner provided in s. 102.31 (2) (a) naming the real estate broker or salesperson as an employee of the firm for purposes of this chapter. A declaration under this subsection shall state all of the following:
(a) The name of the real estate broker or salesperson to be covered under this chapter.
(b) That a written agreement has been entered into that provides that the real estate broker or salesperson shall not be treated as an employee for federal and state tax purposes.
(c) That 75 percent or more of the compensation related to sales or other output, as measured on a calendar year basis, paid to the real estate broker or salesperson under the written agreement specified in par. (b) is directly related to the brokerage services performed by the real estate broker or salesperson on behalf of the firm.
(2)
A firm, as defined in s. 452.01 (4w), may revoke a declaration under sub. (1) by providing written notice to the department in the manner provided in s. 102.31 (2) (a) and to the real estate broker or salesperson named in the declaration. A revocation under this subsection is effective 30 days after the department receives notice of that revocation.
Section
1g
.
103.001 (5) of the statutes is amended to read:
103.001
(5)
"Employee" means
, except as provided in s. 452.38,
any person who may be required or directed by any employer, in consideration of direct or indirect gain or profit, to engage in any employment, or to go or work or be at any time in any place of employment.
Section
1h
.
103.10 (1) (b) of the statutes is amended to read:
103.10
(1)
(b) Except as provided in sub. (1m) (b) 2.
and s. 452.38
, "employee" means an individual employed in this state by an employer, except the employer's parent, spouse, domestic partner, or child.
Section
1k
.
104.01 (2) (b) 2. of the statutes is repealed and recreated to read:
104.01
(2)
(b) 2. An individual excluded under s. 452.38.
Section
1m
.
106.01 (1) of the statutes is amended to read:
106.01
(1)
Formation of apprentice contract.
Any person 16 years of age or over may enter into an apprentice contract binding himself or herself to serve as an apprentice as provided in this section. Except as provided in ss. 106.02
,
and
106.025,
and 106.03,
the term of service of an apprenticeship shall be for not less than one year. Every apprentice contract shall be in writing and shall be signed by the apprentice, the department, and the sponsor or an apprenticeship committee acting as the agent of the sponsor. If the apprentice has not reached 18 years of age, the apprentice contract shall also be signed by one of the apprentice's parents or, if both parents are deceased or legally incapable of giving consent, by the guardian of the apprentice or, if there is no guardian, by a deputy of the department. The department shall specify the provisions that are required to be included in an apprentice contract by rule promulgated under sub. (11).
Section
1n
.
106.03 of the statutes is repealed.
Section
1p
.
108.02 (15) (k) 7. of the statutes is repealed and recreated to read:
108.02
(15)
(k) 7. By an individual to whom all of the following apply:
a. The individual is a real estate licensee, as defined in s. 452.01 (5).
b. Seventy-five percent or more of the remuneration, whether or not paid in cash, for the services performed by the individual as a real estate licensee is directly related to sales or other output, including the performance of services, rather than to the number of hours worked.
c. The services performed by the individual are performed pursuant to a written contract between the individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to the services for federal tax purposes;
Section
2
.
108.227 (1) (b) of the statutes is amended to read:
108.227
(1)
(b) "Credential" has the meaning given in s. 440.01 (2) (a)
, but does not include a registration as an inactive licensee under s. 452.12 (6) (b)
.
Section
2d
.
109.01 (1r) of the statutes is amended to read:
109.01
(1r)
"Employee" means any person employed by an employer, except that "employee" does not include an officer or director of a corporation, a member or manager of a limited liability company, a partner of a partnership or a joint venture, the owner of a sole proprietorship, an independent contractor
or person otherwise excluded under s. 452.38
, or a person employed in a managerial, executive, or commissioned sales capacity or in a capacity in which the person is privy to confidential matters involving the employer-employee relationship.
Section
2f
.
111.32 (5) of the statutes is amended to read:
111.32
(5)
"Employee" does not include any individual employed by his or her parents, spouse
,
or child
or any individual excluded under s. 452.38
.
Section
3
.
186.113 (19) of the statutes is amended to read:
186.113
(19)
Client fund accounts.
Maintain real estate broker trust accounts under s. 452.13 for
brokers who
firms, as defined in s. 452.01 (4w), that
are eligible for membership in the credit union, attorney trust accounts under s. 757.293 for attorneys who are eligible for membership in the credit union
,
and collection agency trust accounts under s. 218.04 (9g) for persons who are eligible for membership in the credit union.
Section
4
.
440.03 (11m) (a) (intro.) and 1. of the statutes are consolidated, renumbered 440.03 (11m) (a) and amended to read:
440.03
(11m)
(a) Each application form for a credential issued or renewed under chs. 440 to 480 shall provide a space for the department to require
each of the following
an applicant for the initial credential or credential renewal
, other than an individual who does not have a social security number and who submits a statement made or subscribed under oath or affirmation as required under par. (am), to provide his or her social security number
: 1. An applicant for an initial credential or credential renewal
. If the applicant is not an individual, the department shall require the applicant to provide its federal employer identification number.
Section
5
.
440.03 (11m) (a) 2. of the statutes is repealed.
Section
6
.
440.03 (11m) (am) of the statutes is amended to read:
440.03
(11m)
(am) If an applicant specified in par. (a)
1. or 2.
is an individual who does not have a social security number, the applicant shall submit a statement made or subscribed under oath that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. A credential or license issued in reliance upon a false statement submitted under this paragraph is invalid.
Section
7
.
440.03 (11m) (b) of the statutes is amended to read:
440.03
(11m)
(b) The real estate examining board shall deny an application for an initial credential or deny an application for credential renewal
or for reinstatement of an inactive license under s. 452.12 (6) (e)
if any information required under par. (a) is not included in the application form or, in the case of an applicant who is an individual and who does not have a social security number, if the statement required under par. (am) is not included with the application form.
Section
8
.
440.03 (11m) (c) of the statutes is amended to read:
440.03
(11m)
(c) The department of safety and professional services may not disclose a social security number obtained under par. (a) to any person except the coordinated licensure information system under s. 441.50 (7); the department of children and families for purposes of administering s. 49.22; and, for a social security number obtained under par. (a)
1.
, the department of revenue for the purpose of requesting certifications under s. 73.0301 and administering state taxes and the department of workforce development for the purpose of requesting certifications under s. 108.227.
Section
9
.
440.03 (13) (b) 72. of the statutes is repealed.
Section
10
.
440.08 (2) (a) 69. of the statutes is repealed.
Section
11
.
440.13 (2) (c) of the statutes is amended to read:
440.13
(2)
(c) With respect to a credential granted by a credentialing board, a credentialing board shall restrict, limit
,
or suspend a credential held by a person or deny an application for an initial credential
or for reinstatement of an inactive license under s. 452.12 (6) (e)
when directed to do so by the department.
Section
12
.
452.01 (1m) of the statutes is amended to read:
452.01
(1m)
"Agency agreement" means a written agreement between a
broker
firm
and a client in which the client authorizes the
broker
firm
to provide brokerage services to the client.
Section
13
.
452.01 (1o) of the statutes is created to read:
452.01
(1o)
"Associated with a firm" means to have been engaged by a firm to provide brokerage services to the firm's clients and customers on behalf of the firm and under the firm's supervision, including as an employee of the firm or as an independent contractor, or both.
Section
14
.
452.01 (1p) of the statutes is created to read:
452.01
(1p)
"Associated with a subagent" means to be associated with a firm that is engaged as a subagent.
Section
15
.
452.01 (3) (d) of the statutes is amended to read:
452.01
(3)
(d) Employees of persons enumerated in pars. (a) to (c)
and
,
(f)
, and (i)
when engaged in the specific performance of their duties as such employees.
Section
16
.
452.01 (3) (i) of the statutes is created to read:
452.01
(3)
(i) A developer, as defined in s. 707.02 (11), negotiating a transaction involving a time share.
Section
17
.
452.01 (3e) of the statutes is amended to read:
452.01
(3e)
"Brokerage service" means any service described under sub. (2) provided
to a person
by a
broker to another person
firm and any licensees associated with the firm
.
Section
18
.
452.01 (3m) of the statutes is amended to read:
452.01
(3m)
"Client" means a party to a transaction who has an agency agreement with a
broker
firm
for brokerage services.
Section
19
.
452.01 (3s) of the statutes is amended to read:
452.01
(3s)
"Customer" means a party to a transaction who is provided brokerage services by a
broker
firm and any licensees associated with the firm
but who is not a client.
Section
20
.
452.01 (3w) of the statutes is amended to read:
452.01
(3w)
"Designated agency" means a multiple representation relationship in which each client of the
broker
firm
in the multiple representation relationship receives negotiation services from the
broker
firm
only from
employees of
licensees associated with
the
broker
firm
who are not providing negotiation services to any other client of the
broker
firm
in the transaction.
Section
21
.
452.01 (4) of the statutes is amended to read:
452.01
(4)
"Disciplinary proceeding" means a proceeding against one or more licensees
or registrants
in which the board may revoke, suspend, or limit a license
or registration
, reprimand a licensee
or registrant
, or assess a forfeiture or require education or training under s. 452.14 (4m) or (4r).
Section
22
.
452.01 (4d) of the statutes is repealed.
Section
23
.
452.01 (4h) of the statutes is repealed.
Section
24
.
452.01 (4p) of the statutes is repealed.
Section
25
.
452.01 (4t) of the statutes is repealed.
Section
26
.
452.01 (4w) of the statutes is created to read:
452.01
(4w)
"Firm" means a licensed individual broker acting as a sole proprietorship or a licensed broker business entity.
Section
27
.
452.01 (4x) of the statutes is created to read:
452.01
(4x)
"Licensed broker business entity" means a broker licensed under s. 452.12 that is a business entity.
Section
28
.
452.01 (4y) of the statutes is created to read:
452.01
(4y)
"Licensed individual broker" means a broker licensed under s. 452.12 who is an individual.
Section
29
.
452.01 (5) of the statutes is amended to read:
452.01
(5)
"Licensee" means any person licensed or registered under this chapter
, other than an inactive licensee registered under s. 452.12 (6)
.
Section
30
.
452.01 (5) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.01
(5)
"Licensee" means any person licensed
or registered
under this chapter.
Section
31
.
452.01 (5c) of the statutes is created to read:
452.01
(5c)
"License number" means a number assigned to a person under s. 452.05 (1) (j).
Section
32
.
452.01 (5j) of the statutes is amended to read:
452.01
(5j)
"Multiple representation relationship" means a relationship between a
broker
firm
and 2 or more of the
broker's
firm's
clients in which the clients are parties in the same transaction.
Section
33
.
452.01 (5m) (b) of the statutes is amended to read:
452.01
(5m)
(b) Completing, when requested by a party, appropriate
department-approved
board-approved
forms or other writings to document the party's proposal consistent with the party's
intent
instruction
.
Section
34
.
452.01 (5p) of the statutes is amended to read:
452.01
(5p)
"Out-of-state salesperson" means a person who is not licensed under this chapter and who is employed
or engaged as an independent contractor
by an out-of-state broker. "Out-of-state salesperson" includes a time-share salesperson employed by an out-of-state broker.
Section
35
.
452.01 (5p) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.01
(5p)
"Out-of-state salesperson" means a person who is not licensed under this chapter and who is employed or engaged as an independent contractor by an out-of-state broker.
"Out-of-state salesperson" includes a time-share salesperson employed by an out-of-state broker.
Section
36
.
452.01 (5w) of the statutes is amended to read:
452.01
(5w)
"Principal
broker
firm
" means a
broker who
firm that
engages a subagent to provide brokerage services in a transaction.
Section
37
.
452.01 (7) of the statutes is repealed and recreated to read:
452.01
(7)
"Salesperson" means any individual who is associated with a firm, other than a broker, a time-share salesperson, or an individual who is not required to hold a license under this chapter as provided under s. 452.03 (2).
Section
38
.
452.01 (7) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.01
(7)
"Salesperson" means any individual who is associated with a firm, other than a broker
, a time-share salesperson,
or an individual who is not required to hold a license under this chapter as provided under s. 452.03 (2).
Section
39
.
452.01 (7r) of the statutes is amended to read:
452.01
(7r)
"Subagent" means a
broker who
firm that
is engaged by
another broker
a principal firm
to provide brokerage services in a transaction, but
who
that
is not
the other broker's employee
associated with the principal firm
.
Section
40
.
452.01 (9) of the statutes is amended to read:
452.01
(9)
"Time-share salesperson" means a person, other than a person licensed under s. 452.09, who is
employed by a licensed broker to sell or offer or attempt
associated with a firm for the purpose of selling or offering or attempting
to negotiate an initial sale or purchase of a time share but who may not perform any other acts authorized by this chapter to be performed by a broker or salesperson.
Section
41
.
452.01 (9) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is repealed.
Section
42
.
452.025 of the statutes, as affected by 2015 Wisconsin Act .... (this act), is repealed.
Section
43
.
452.025 (1) (b) 3. of the statutes is amended to read:
452.025
(1)
(b) 3. Certification from the
licensed broker employing
firm with which
the applicant
is associated
that the applicant is competent to act as a time-share salesperson.
Section
44
.
452.025 (3) (a) of the statutes is amended to read:
452.025
(3)
(a) A time-share salesperson registered under this section may act as a time-share salesperson only when
employed by a licensed broker
associated with a firm
.
Section
45
.
452.025 (3) (b) 2. g. of the statutes is amended to read:
452.025
(3)
(b) 2. g. The signature of the time-share salesperson and the name of the
employing broker
firm with which the time-share salesperson is associated
.
Section
46
.
452.025 (4) of the statutes is repealed.
Section
47
.
452.03 of the statutes is renumbered 452.03 (1) and amended to read:
452.03
(1)
No
Except as provided in s. 452.137, no
person may engage in or follow the business or occupation of, or advertise or hold himself or herself out as, or act temporarily or otherwise as a broker or salesperson without a license
issued under this chapter
. The board may grant a license only to a person who is competent to transact
such businesses
that business or occupation
in a manner that safeguards the interests of the public, and only after satisfactory proof of the person's competence has been presented to the board.
Section
48
.
452.03 (2) of the statutes is created to read:
452.03
(2)
No license under this chapter is required for an individual who, on behalf of and under the direction of a firm or one or more licensees associated with a firm, provides the firm or licensee with services that are limited to those that are purely administrative, clerical, or personal in nature.
Section
49
.
452.05 (1) (a) of the statutes is amended to read:
452.05
(1)
(a) Grant and issue licenses to
individuals and business entities to act as
brokers and
to individuals to act
salespersons and
grant and issue
registrations to time-share salespersons.
Section
50
.
452.05 (1) (a) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.05
(1)
(a) Grant and issue licenses to individuals and business entities to act as brokers and to individuals to act salespersons
and grant and issue registrations to time-share salespersons
.
Section
51
.
452.05 (1) (i) (intro.) of the statutes is amended to read:
452.05
(1)
(i) (intro.) Create a form on which an individual applying to renew a broker's or salesperson's license
or a time-share salesperson's certificate of registration
may do all of the following:
Section
52
.
452.05 (1) (i) 1. of the statutes is amended to read:
452.05
(1)
(i) 1. State whether he or she has been convicted of a crime since he or she last applied to renew the license
or certificate
or, for an initial renewal, since he or she initially applied for the license
or certificate
.
Section
53
.
452.05 (1) (i) 3. b. of the statutes is amended to read:
452.05
(1)
(i) 3. b. The board's authority to revoke the license
or certificate
under s. 452.14 (3) (o).
Section
54
.
452.05 (1) (j) of the statutes is created to read:
452.05
(1)
(j) Assign a unique license number to each person licensed under this chapter.
Section
55
.
452.07 (1m) of the statutes is amended to read:
452.07
(1m)
The board
shall
may
promulgate rules
that specify
regarding
the supervisory
duties
responsibilities
of brokers under s.
452.12 (3)
452.132
.
Section
56
.
452.07 (2) of the statutes is amended to read:
452.07
(2)
The board may promulgate rules establishing a procedure that allows an individual who does not possess a broker's or salesperson's license or a time-share salesperson's certificate of registration to, without submitting a full application and without paying the fees applicable to applicants, apply to the board for a determination of whether the individual would be disqualified from obtaining a license or certificate due to his or her criminal record. A determination made under this subsection, with respect to criminal convictions reviewed by the board as part of the determination, is binding upon the board and the department if the individual subsequently applies for a license or certificate, unless there is information relevant to the determination that was not available to the board at the time of the determination.
The board may require a fee to be paid to the department for a determination issued under this subsection of an amount necessary to cover the cost of making the determination.
Section
57
.
452.07 (2) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.07
(2)
The board may promulgate rules establishing a procedure that allows an individual who does not possess a broker's or salesperson's license
or a time-share salesperson's certificate of registration
to, without submitting a full application and without paying the fees applicable to applicants, apply to the board for a determination of whether the individual would be disqualified from obtaining a license
or certificate
due to his or her criminal record. A determination made under this subsection, with respect to criminal convictions reviewed by the board as part of the determination, is binding upon the board and the department if the individual subsequently applies for a license
or certificate
, unless there is information relevant to the determination that was not available to the board at the time of the determination. The board may require a fee to be paid to the department for a determination issued under this subsection of an amount necessary to cover the cost of making the determination.
Section
58
.
452.09 (1) (b) of the statutes is amended to read:
452.09
(1)
(b) The name and address of the applicant
; if
. If
the applicant is a business entity, the
application shall also include the
name and address of each business representative
and the license number of each business representative licensed as a broker under this chapter
.
Section
59
.
452.09 (1) (c) of the statutes is repealed.
Section
60
.
452.09 (2) (c) (intro.) of the statutes is amended to read:
452.09
(2)
(c) (intro.) Except as provided in par. (d) or a reciprocal agreement under s. 452.05 (3), each applicant for a broker's license
to be issued to an individual
shall do all of the following:
Section
61
.
452.09 (3) (a) of the statutes is amended to read:
452.09
(3)
(a) In determining competency, the board shall require proof that the applicant for a broker's or salesperson's license has a fair knowledge of the English language; a fair understanding of the general purposes and general legal effect of deeds, mortgages, land contracts of sale, leases, bills of sale,
chattel mortgages,
and conditional sales contracts; and a general and fair understanding of the obligations between principal and agent, as well as of this chapter. The board shall deny a license to an applicant receiving a failing grade, as established by rules of the board, on any examination given under this section, but any applicant may review his or her examination results in a manner established by rules of the board.
Section
62
.
452.09 (4) (a) 1. of the statutes is amended to read:
452.09
(4)
(a) 1. An applicant for a broker's license who is an individual shall submit to the board evidence satisfactory to the board that the applicant has practiced as a licensed salesperson under the direct supervision of a licensed broker for at least 2 years within the last 4 years preceding the date of the applicant's application for a broker's license
, excluding any time the applicant spent in an apprenticeship under sub. (5)
.
Section
63
.
452.09 (5) of the statutes is repealed.
Section
64
.
452.10 (1) of the statutes is amended to read:
452.10
(1)
An application shall be verified by the applicant. If made by a business entity it shall be verified by a business representative
that is a licensed individual broker or a licensed broker business entity and that is acting as a business representative for the business entity
.
Section
65
.
452.10 (2) (a) of the statutes is amended to read:
452.10
(2)
(a) Each new application for a
broker's or salesperson's
license
under this chapter
shall be for the remainder of the biennial license period.
Section
66
.
452.10 (4) (a) of the statutes is repealed.
Section
67
.
452.10 (4) (b) of the statutes is renumbered 452.30 (5) and amended to read:
452.30
(5)
No
salesperson, time-share salesperson or broker may be employed by a broker whose
licensee may be associated with a firm if the firm's
license has been suspended or revoked during the period of suspension or revocation. The
salesperson, time-share salesperson or broker
licensee
may
apply for transfer to
some other licensed broker by complying with this chapter
become associated with another firm
, provided the
salesperson, time-share salesperson or broker
licensee
is not a party to the activities causing the suspension or revocation of the
firm's
license
of the broker
. If the licensee becomes associated with another firm, the licensee may not provide brokerage services on behalf of that firm until sub. (1) (b) has been satisfied
.
Section
68
.
452.11 (1) of the statutes is amended to read:
452.11
(1)
A nonresident may become a broker
,
or
salesperson
or time-share salesperson
by conforming to all the provisions of this chapter.
Section
69
.
452.12 (2) (a) of the statutes is amended to read:
452.12
(2)
(a) A
broker's
license may be issued to a business entity if the business entity has at least one business representative licensed as a broker. The license issued to the business entity entitles each business representative of the business entity
who is a
licensed
as a
broker to act as a broker on behalf of the business entity.
A broker may act as a business representative for more than one business entity if the broker obtains the express, written consent of each business entity for which the broker desires to act as a business representative. A broker may act as a broker on behalf each business entity for which it is serving as a business representative.
Section
70
.
452.12 (2) (c) of the statutes is amended to read:
452.12
(2)
(c) Application for a
business entity
broker's
license
to be issued to a business entity
shall be made on forms prescribed by the board, listing the names and addresses of all business representatives
and the license numbers of all business representatives that are licensed brokers
, and shall be accompanied by the initial credential fee determined by the department under s. 440.03 (9) (a). If there is a change in any of the business representatives, the change shall be reported to the board, on the same form, within 30 days after the effective date of the change.
Section
71
.
452.12 (3) of the statutes is amended to read:
452.12
(3)
Broker's liability
Firm's responsibility
for acts of
employees
licensees
.
Subject to s. 452.139 (3),
each broker shall supervise, and
a firm
is responsible for
,
the brokerage services provided on behalf of the
broker
firm
by
any broker, salesperson, or time-share salesperson who is an employee of the broker
a licensee associated with the firm only to the extent that the firm fails to comply with s. 452.132 and any rules promulgated under s. 452.07 (1m) with respect to that licensee
.
Section
72
.
452.12 (4) of the statutes is amended to read:
452.12
(4)
Register of
brokers and salespersons
licensees
.
The board shall include in the register the board maintains under s. 440.035 (4) the names of all
brokers and salespersons
persons
whose licenses
issued under this chapter
were revoked within the past 2 years. The register shall be available for purchase at cost.
Section
73
.
452.12 (5) (b) of the statutes is amended to read:
452.12
(5)
(b) If an application for renewal
of a license issued to an individual
is not filed with the board on or before the renewal date
with the proof required under par. (c) or if the renewal is not granted
, the applicant may not engage in any of the activities covered by the license until the license is renewed or a new license is issued.
Section
74
.
452.12 (5) (bm) of the statutes is created to read:
452.12
(5)
(bm) If an application for renewal of a license issued to a firm is not filed with the board on or before the renewal date or if the renewal is not granted, all of the following apply:
1. The firm may not engage in any of the activities covered by the license until the license is renewed or a new license is issued.
2. Any licensees associated with the firm may not engage in any of the activities covered by the firm's license on behalf of the firm until the firm's license is renewed or a new license is issued.
3. A licensed individual broker or licensed broker business entity who is serving as a business representative for the firm shall notify each licensee associated with the firm that the firm's license was not renewed and, within 10 days after notifying a licensee, file with the department a notice of termination for each such licensee on a form prescribed by the department.
Section
75
.
452.12 (5) (c) of the statutes is amended to read:
452.12
(5)
(c) At the time of renewal, each broker or salesperson
who is an individual
shall submit proof of attendance at and successful completion of continuing education programs or courses approved under s. 452.05 (1) (g).
Section
76
.
452.12 (6) of the statutes is repealed.
Section
77
.
452.13 (1) (a) of the statutes is amended to read:
452.13
(1)
(a) "Client funds" means all downpayments, earnest money deposits
,
or other money related to a conveyance of real estate that is received by a
broker, salesperson or time-share salesperson
licensee
on behalf of
the broker's, salesperson's or time-share salesperson's principal
a firm
or any other person. "Client funds" does not include promissory notes.
Section
78
.
452.13 (2) (a) of the statutes is amended to read:
452.13
(2)
(a) A
broker who
firm that
holds client funds shall establish an interest-bearing common trust account in a depository institution. The interest-bearing common trust account shall earn interest at a rate not less than that applicable to individual accounts of the same type, size
,
and duration and for which withdrawals or transfers can be made without delay, subject to any notice period that the depository institution is required to observe by law or regulation.
Section
79
.
452.13 (2) (b) of the statutes is amended to read:
452.13
(2)
(b) Any
broker who
firm that
maintains an interest-bearing common trust account shall do all of the following:
1. Register with the department
of safety and professional services
the name and address of the depository institution and the number of the interest-bearing common trust account.
2. Notify the department
of safety and professional services
when any of the information required under subd. 1. is changed.
3. Furnish the department
of safety and professional services
with a letter authorizing the department
of safety and professional services
and the department of administration to examine and audit the interest-bearing common trust account whenever
the
either
department
of safety and professional services or the department of administration
considers it necessary.
Section
80
.
452.13 (2) (bm) of the statutes is amended to read:
452.13
(2)
(bm) The department
of safety and professional services
shall forward to the department of administration the information and documents furnished under par. (b).
Section
81
.
452.13 (2) (c) of the statutes is amended to read:
452.13
(2)
(c) A
broker
firm
shall deposit all client funds in the interest-bearing common trust account.
Section
82
.
452.13 (2) (e) (intro.) of the statutes is amended to read:
452.13
(2)
(e) (intro.) For each interest-bearing common trust account, the
broker
firm
shall direct the depository institution to do all of the following:
Section
83
.
452.13 (2) (e) 2. of the statutes is amended to read:
452.13
(2)
(e) 2. When the interest remittance is sent, furnish to the department of administration and to the
broker
firm
maintaining the interest-bearing common trust account a statement that includes the name of the
broker
firm
for whose account the remittance is made, the rate of interest applied, the amount of service charges or fees deducted, if any, and the account balance for the period that the statement covers.
Section
84
.
452.13 (2) (f) 1. of the statutes is amended to read:
452.13
(2)
(f) 1. May not assess a service charge or fee that is due on an interest-bearing common trust account against any
broker
firm
or, except as provided in subd. 3., against any other account, regardless of whether the same
broker
firm
maintains the other account.
Section
85
.
452.13 (3) of the statutes is amended to read:
452.13
(3)
Deposit provisions.
A
broker who
firm that
deposits client funds in an interest-bearing common trust account in compliance with this section may not be held liable to the owner or beneficial owner of the client funds for damages due to compliance with this section. A
broker, salesperson or time-share salesperson who
licensee that
deposits client funds in an interest-bearing common trust account in compliance with this section
on behalf of a firm
is not required to disclose alternative depository arrangements that could be made by the parties or to disclose that a deposit will be made under this section.
Section
86
.
452.13 (4) of the statutes is amended to read:
452.13
(4)
Trust account optional.
This section does not require a
broker
firm
to hold client funds or require a person to transfer client funds to a
broker
firm
.
Section
87
.
452.13 (5) of the statutes is amended to read:
452.13
(5)
Rules.
In consultation with the department
of safety and professional services
, the department of administration shall promulgate rules necessary to administer this section.
Section
88
.
452.132 of the statutes is created to read:
452.132
Responsibilities of firms and licensees.
(1)
A firm shall supervise the brokerage service activities of each licensee associated with the firm, including by doing all of the following:
(a) Ensuring that a supervising broker for the firm complies with sub. (4).
(b) Providing a licensee with reasonable access to a supervising broker for the purpose of consultation regarding real estate practice issues.
(2)
A firm shall do all of the following:
(a) Provide each licensee associated with the firm with a written statement of the procedures under which the firm and licensees associated with the firm must operate with respect to handling leases, agency agreements, offers to purchase, and other documents and records relating to transactions.
(b) Notify each licensee associated with the firm where a copy of the rules promulgated by the board related to the conduct, ethical practices, and responsibilities of licensees may be obtained.
(c) Before a licensee becomes associated with the firm and at the beginning of each biennial licensure period, ensure that the licensee holds a valid license or registration.
(3)
A firm shall be responsible for the custody and safety of all documents and records relating to transactions submitted to the firm as required under sub. (6) (b).
(4)
(a) A supervising broker for a firm, as determined under sub. (5), shall review all of the following prior to the closing of a transaction in accordance with par. (b):
1. All agency agreements, offers to purchase, leases, and other documents that are executed by the parties and records relating to the transaction that are used by a licensee associated with the firm and submitted to the firm as required under sub. (6) (b).
2. All trust account records relating to the transaction.
(b) The review under par. (a) shall be limited to confirming that a written disclosure statement to a customer or client has been provided by a licensee associated with the firm in accordance with s. 452.135, confirming that any applicable form approved by the board has been used and the forms have been completed by filling in the blanks in a manner consistent with the structure of the form, and communicating to the licensee any errors in how the forms were completed that are apparent on the face of the document and known to the person reviewing the document.
(5)
(a) A firm that is a licensed broker business entity shall delegate the performance of the duty to supervise licensees associated with the firm to a supervising broker who is a licensed individual broker.
(b) A firm that is not a licensed broker business entity may delegate the duty to supervise licensees associated with the firm to a supervising broker who is a licensed individual broker, but in the absence of a specific supervising broker delegation, the firm itself is deemed to be the supervising broker for that firm.
(c) A delegation under par. (a) or (b) shall be written and signed by or on behalf of the delegating firm, identify the duty delegated, and be signed by the broker to whom the delegation is made.
(d) A firm may delegate the duty to supervise licensees to more than one supervising broker.
(6)
(a) A licensee associated with a firm shall be responsible for discussing with the party with whom the licensee is working with or representing any error communicated to the licensee as provided in sub. (4) (b), and the party shall determine whether to request any changes to address the error.
(b) A licensee associated with a firm shall submit to the firm in a timely manner all agency agreements, offers to purchase, leases, and other documents that are executed by the parties and records related to the brokerage services provided on behalf of the firm and transactions that are used or received by the licensee.
Section
89
.
452.132 (2) (c) of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:
452.132
(2)
(c) Before a licensee becomes associated with the firm and at the beginning of each biennial licensure period, ensure that the licensee holds a valid license
or registration
.
Section
90
.
452.133 (title) of the statutes is amended to read:
452.133
(title)
Duties of
brokers
licensees
.
Section
91
.
452.133 (1) (intro.), (c), (d), (e), (f) and (g) of the statutes are amended to read:
452.133
(1)
Broker's duties
Duties
to all
persons in
parties to
a transaction.
(intro.) A
broker who is
firm
providing brokerage services to a
person in
party to
a transaction owes all of the following duties to the
person
party
:
(c) The duty to timely disclose in writing all material adverse facts that the
broker
firm
knows and that the
person
party
does not know or cannot discover through reasonably vigilant observation, unless the disclosure of a material adverse fact is prohibited by law.
(d) The duty to keep confidential any information given to the
broker
firm
in confidence, or any information obtained by the
broker
firm
that
he or she
the firm
knows a reasonable person would want to be kept confidential, unless the information must be disclosed by law or the person whose interests may be adversely affected by the disclosure specifically authorizes the disclosure of particular information.
A broker
The firm
shall continue to keep the information confidential after the transaction is complete and after the
broker
firm
is no longer providing brokerage services to the
person
party
.
(e) The duty to provide accurate information about market conditions that affect the
person's
transaction, within a reasonable time after
the person's
a
request
for such information by the party
, unless disclosure of the information is prohibited by law.
(f) The duty to safeguard trust funds and other property held
by the broker
as required by rules promulgated
by the department
under s. 452.13 (5).
(g) When the
broker
firm
is negotiating on behalf of a party, the duty to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.
Section
92
.
452.133 (2) (intro.), (a) 1. and 2., (b) and (c) of the statutes are amended to read:
452.133
(2)
Broker's duties to a client
Duties to clients
.
(intro.) A
broker
firm
providing brokerage services to
his or her
a
client owes the client the duties that the
broker
firm
owes to a
person
party
under sub. (1) and all of the following additional duties:
(a) 1. Placing the client's interests ahead of the
broker's
interests
of the firm
.
2. Placing the client's interests ahead of the interests of persons in the transaction who are not the
broker's
firm's
clients by not disclosing to persons in the transaction other than the
broker's
firm's
clients information or advice the disclosure of which is contrary to the interests of a client of the
broker
firm
, unless the disclosure is required by law.
(b) The duty to disclose to the client all information known by the
broker
firm
that is material to the transaction and that is not known by the client or discoverable by the client through reasonably vigilant observation, except for confidential information under sub. (1) (d) and other information the disclosure of which is prohibited by law.
(c) The duty to fulfill any obligation required by the agency agreement, and any order of the client that is within the scope of the agency agreement, that is not inconsistent with another duty that the
broker
firm
has under this chapter or any other law.
Section
93
.
452.133 (3) of the statutes is amended to read:
452.133
(3)
Prohibited conduct.
In providing brokerage services, a
broker
licensee
may not do any of the following:
(a) Accept any fee or compensation related to the transaction from any person other than the
broker's
licensee's
client,
unless the broker has
principal firm, or firm, without
the
prior
written consent of all parties to the transaction.
(b) Act in a transaction on the
broker's
licensee's
own behalf, on behalf of the
broker's
licensee's
immediate family
if the firm is an individual, on behalf of the licensee's firm
, or on behalf of any organization or business entity in which the
broker
licensee
has an interest,
unless
without
the
broker has the
prior
written consent of all parties to the transaction.
For the purpose of complying with this paragraph, a licensee shall obtain the written consent in the offer to purchase, option, lease, or other transaction contract.
(c) Except as provided in s. 452.19
(1)
, refer, recommend
,
or suggest to a party to the transaction the services of an individual or entity from which the
broker
licensee
may receive compensation for a referral or in which the
broker
licensee
has an interest, unless the
broker
licensee
has disclosed
in writing
the fact that
he or she
the licensee
may receive compensation or has disclosed
his or her
in writing an
interest in the individual or entity providing the services.
Section
94
.
452.133 (4) (a) and (b) 1. and 2. of the statutes are amended to read:
452.133
(4)
(a) A subagent owes all
persons
parties
to whom
a broker
the subagent
is providing brokerage services in a transaction the duties specified in sub. (1) but does not owe the clients of the principal
broker
firm
the duties under sub. (2).
(b) 1. Place the subagent's interests ahead of the interests of the clients of the principal
broker
firm
in the transaction in which the subagent has been engaged by the principal
broker
firm
.
2. Provide advice or opinions to parties in the transaction if providing the advice or opinions is contrary to the interests of the clients of the principal
broker
firm
in the transaction in which the subagent has been engaged by the principal
broker
firm
, unless required by law.
Section
95
.
452.133 (4m) of the statutes is created to read:
452.133
(4m)
Duties and prohibitions; application to licensees.
(a) Subject to par. (d), a firm's duties under sub. (1) extend to each licensee associated with that firm, and each licensee associated with a firm owes the same duties to a party that the firm owes to that party under sub. (1).
(b) Except as provided in s. 452.134 (3) (b) and subject to par. (d), a firm's duties under sub. (2) extend to each licensee associated with that firm, and each licensee associated with a firm owes the same duties to a client of the firm that the firm owes to that client under sub. (2).
(c) 1. Subject to par. (d), a subagent's duties under sub. (4) (a) extend to each licensee associated with that subagent, and each licensee associated with a subagent owes the same duties to a party that the subagent owes to that party under sub. (4) (a).
2. Subject to par. (d), the prohibitions that apply to a subagent under sub. (4) (b) extend to each licensee associated with that subagent, and no licensee associated with a subagent may take any action that the subagent is prohibited from taking under sub. (4) (b).
(d) The duties and prohibitions under pars. (a) to (c) extend only to a licensee providing brokerage services to a party to the transaction.
Section
96
.
452.133 (5) of the statutes is amended to read:
452.133
(5)
Duties without agency or subagency relationship.
If a
broker
firm
is providing brokerage services to a person who is a party or a prospective party to a
current or prospective
transaction, and the
broker
firm
does not have an agency agreement with the person and is not a subagent of another
broker
firm
in the transaction, then the
broker owes
firm and any licensees associated with the firm owe
the person the duties under sub. (1) and may not, unless required by law, provide advice or opinions relating to the transaction in which the person is receiving brokerage services if providing the advice or opinions is contrary to the interests of a party to a current or prospective transaction with the person receiving the brokerage services.
Section
97
.
452.133 (6) (intro.) and (a) of the statutes are amended to read:
452.133
(6)
Waiver of duties.
(intro.) The duties imposed by subs. (1), (2) (a), (am), (b), and (c), (4), and (5) may not be waived. A client may waive, in part or in full, the
broker's
duty under sub. (2) (d), except that a waiver under this subsection is not effective unless the
broker
firm or a licensee associated with the firm
provides to the client a written disclosure containing all of the following:
(a) A copy of the text of sub. (2) (d) and s. 452.01 (5m), and a statement that, as a consequence of the client's waiver, the
broker
firm and any licensees associated with the firm
will have no legal duty to perform the duty imposed by sub. (2) (d).
Section
98
.
452.134 (1) (a) of the statutes is amended to read:
452.134
(1)
(a) Subject to par. (b), a
broker
firm and any licensees associated with the firm
may provide brokerage services to any
person in
party to
a transaction, whether or not the
broker
firm
has entered into an agency agreement with a party to the transaction or the
broker
firm
has been engaged to provide brokerage services in the transaction as a subagent.
Section
99
.
452.134 (1) (b) of the statutes is amended to read:
452.134
(1)
(b) A
broker
firm and any licensees associated with the firm
may not negotiate on behalf of a party to a transaction unless a party to the transaction is one of the following:
1. The
broker's
firm's
client.
2. A client of a principal
broker
firm
who has engaged the
broker
firm
as a subagent.
Section
100
.
452.134 (2) of the statutes is amended to read:
452.134
(2)
Multiple representation relationships
; consent required
.
A
broker
firm and any licensees associated with the firm
may not provide brokerage services in a multiple representation relationship unless all of the
broker's
firm's
clients in the multiple representation relationship have consented to a multiple representation relationship in writing.
Section
101
.
452.134 (3) of the statutes is amended to read:
452.134
(3)
Designated agency
; consent required
.
(a) A
broker
firm
in a multiple representation relationship may not engage in designated agency unless all of the
broker's
firm's
clients in the relationship have consented to designated agency in writing. A client may withdraw consent to designated agency by written notice to the
broker
firm
at any time.
(b) If a
broker
firm
is engaged in designated agency, the
broker's employee who
licensee associated with the firm that
is negotiating on behalf of a client of the
broker
firm
in the transaction may provide to the client on whose behalf the
employee
licensee
is negotiating information, opinions, and advice to assist the client in the negotiations, whether or not the information, opinions, and advice place the interests of one of the
broker's
firm's
clients ahead of the interests of another client of the
broker
firm
.
Section
102
.
452.134 (4) of the statutes is amended to read:
452.134
(4)
Multiple
representations relationship
representation relationships
without designated agency.
If a
broker's
firm's
client in a multiple representation relationship does not consent to designated agency or withdraws consent to designated agency, the
broker
firm
and
the broker's employees
any licensees associated with the firm
may not place the interests of any client ahead of the interests of any other in the negotiations.
Section
103
.
452.135 (1) and (2) of the statutes are amended to read:
452.135
(1)
(a)
A broker
No firm, and no licensee associated with a firm,
may
not
negotiate on behalf of a party who is not the
broker's
firm's
client unless the
broker
firm, or a licensee associated with the firm,
provides to the party a copy of the following written disclosure statement:
BROKER
DISCLOSURE TO CUSTOMERS
You are a customer of the
broker
brokerage firm (hereinafter firm)
. The
broker
firm
is either an agent of another party in the transaction or a subagent of another
broker who
firm that
is the agent of another party in the transaction.
The
A
broker
,
or a salesperson acting on behalf of the
broker,
firm
may provide brokerage services to you. Whenever the
broker
firm
is providing brokerage services to you, the
broker owes
firm and its brokers and salespersons (hereinafter agents)
owes you, the customer, the following duties:
The duty to provide brokerage services to you fairly and honestly.
The duty to exercise reasonable skill and care in providing brokerage services to you.
The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law.
The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.
The duty to protect your confidentiality. Unless the law requires it, the
broker
firm and its agents
will not disclose your confidential information or the confidential information of other parties.
The duty to safeguard trust funds and other property
the broker holds
held by the firm or its agents
.
The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.
Please review this information carefully.
A broker or salesperson
An agent of the firm
can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector.
This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain-language summary of
a broker's
the
duties to a customer under section 452.133 (1) of the Wisconsin statutes.
(b) If a
broker
firm
is providing brokerage services as a subagent to a principal
broker
firm
, the
broker
subagent, or a licensee associated with the subagent,
shall provide a copy of the written disclosure statement under par. (a) to any person who is not the principal
broker's
firm's
client and who receives brokerage services from the
broker
subagent
within the scope of the agreement between the
broker
subagent
and the principal
broker
firm
.
(2)
(a) Except as provided in par. (b), a
broker
firm
shall provide to a client a copy of the following written disclosure statement not later than the time the
broker
firm
enters into an agency agreement with the client:
BROKER
DISCLOSURE TO CLIENTS
Under Wisconsin law, a
broker owes
brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe
certain duties to all parties to a transaction:
The duty to provide brokerage services to you fairly and honestly.
The duty to exercise reasonable skill and care in providing brokerage services to you.
The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law.
The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.
The duty to protect your confidentiality. Unless the law requires it, the
broker
firm and its agents
will not disclose your confidential information or the confidential information of other parties.
The duty to safeguard trust funds and other property the
broker
firm or its agents
holds.
The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.
Because you have entered into an agency agreement with a
broker
firm
, you are the
broker's
firm's
client. A
broker
firm
owes additional duties to
you as
a client
.
of the firm:
The
broker
firm or one of its agents
will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the
broker
firm
from this duty. The
broker
firm or one of its agents
must provide you with all material facts affecting the transaction, not just adverse facts.
The
broker
firm and its agents
will fulfill the
broker's
firm's
obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement.
The
broker
firm and its agents
will negotiate for you, unless you release
the broker
them
from this duty.
The
broker
firm and its agents
will not place
the broker's
their
interests ahead of your interests. The
broker
firm and its agents
will not, unless required by law, give information or advice to other parties who are not the
broker's
firm's
clients, if giving the information or advice is contrary to your interests.
If you become involved in a transaction in which another party is also the
broker's
firm's
client (a "multiple representation relationship"), different duties may apply.
MULTIPLE REPRESENTATION RELATIONSHIPS
AND DESIGNATED AGENCY
A multiple representation relationship exists if a
broker
firm
has an agency agreement with more than one client who is a party in the same transaction.
In a multiple representation relationship, if all of the broker's
If you and the firm's other
clients in the transaction consent, the
broker
firm
may provide services
to the clients
through designated agency
, which is one type of multiple representation relationship
.
Designated agency means that different
salespersons employed by the broker
agents with the firm
will negotiate on behalf of you and the other client or clients in the transaction, and the
broker's
firm's
duties
to you as a client
will remain the same. Each
salesperson
agent
will provide information, opinions, and advice to the client for whom the
salesperson
agent
is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the
broker's
firm's
other clients.
A salesperson
An agent
will not reveal any of your confidential information to another party unless required to do so by law.
If a designated agency relationship is not
in effect
authorized by you or other clients in the transaction,
you may
still
authorize or reject a
different type of
multiple representation relationship
. If you authorize a multiple representation relationship
in which
the
broker
firm
may provide brokerage services to more than one client in a transaction but neither the
broker
firm
nor any of
the broker's salespersons
its agents
may assist any client with information, opinions, and advice which may favor the interests of one client over any other client.
If you do not consent to a multiple representation relationship the broker will not be allowed to provide brokerage services to more than one client in the transaction
Under this neutral approach, the same agent may represent more than one client in a transaction
.
If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.
INITIAL
CHECK
ONLY ONE OF THE THREE
LINES
BELOW:
________
I consent to
The same firm may represent me and the other party as long as the same agent is not representing us both. (multiple representation relationship with
designated agency
.
)
________
I consent to
The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved. (
multiple representation
relationships, but I do not consent to
relationship without
designated agency
.
)
________
The same firm cannot represent both me and the other party in the same transaction. (
I reject multiple representation relationships
.
)
NOTE: YOU MAY WITHDRAW YOUR CONSENT TO DESIGNATED AGENCY OR TO MULTIPLE REPRESENTATION RELATIONSHIPS BY WRITTEN NOTICE TO THE BROKER AT ANY TIME. YOUR BROKER IS REQUIRED TO DISCLOSE TO YOU IN YOUR AGENCY AGREEMENT THE COMMISSION OR FEES THAT YOU MAY OWE TO YOUR BROKER. IF YOU HAVE ANY QUESTIONS ABOUT THE COMMISSION OR FEES THAT YOU MAY OWE BASED UPON THE TYPE OF AGENCY RELATIONSHIP YOU SELECT WITH YOUR BROKER YOU SHOULD ASK YOUR BROKER BEFORE SIGNING THE AGENCY AGREEMENT.
NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.
SUBAGENCY
The broker
Your firm
may, with your authorization in the agency agreement, engage other
brokers who
firms (subagent firms) to
assist your
broker
firm
by providing brokerage services for your benefit. A subagent
firm and the agents with the subagent firm
will not put
the subagent's
their
own interests ahead of your interests. A subagent
firm
will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.
Please review this information carefully.
A broker or salesperson
An agent
can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector.
This disclosure is required by
s.
section
452.135 of the Wisconsin statutes and is for information only. It is a plain-language summary of
a broker's
the
duties
owed
to you under section 452.133
(3)
(2)
of the Wisconsin statutes.
(b) If a client enters into an agency agreement with a
broker
firm
to receive brokerage services related to real estate primarily intended for use as a residential property containing one to 4 dwelling units, and the written disclosure statement under par. (a) is not incorporated into the agency agreement, the
broker
firm
shall request the client's signed acknowledgment that the client has received a copy of the written disclosure statement.
Section
104
.
452.137 (1) (b) of the statutes is repealed.
Section
105
.
452.137 (1) (d) of the statutes is repealed.
Section
106
.
452.137 (2) (a) 1. of the statutes is amended to read:
452.137
(2)
(a) 1. Enters into a cooperative agreement with a
licensed broker
firm
and cooperates with the
licensed broker
firm
on the listing agreement that is subject to the cooperative agreement. Each cooperative agreement may cover only one listing agreement.
Section
107
.
452.137 (2) (a) 2. of the statutes is amended to read:
452.137
(2)
(a) 2. Submits to the
licensed broker
firm
evidence that the out-of-state broker is licensed in good standing to engage in real estate brokerage in a jurisdiction other than this state.
Section
108
.
452.137 (2) (b) 1. of the statutes is amended to read:
452.137
(2)
(b) 1. Enter into a listing agreement concerning
real estate
any property
located in this state.
Section
109
.
452.137 (2) (b) 2. of the statutes is amended to read:
452.137
(2)
(b) 2. For commission, money, or other thing of value, promote in this state the sale, exchange, purchase, option, rental, or leasing of
real estate
any property
located in this state, including by posting signs on the property.
Section
110
.
452.137 (2) (c) of the statutes is amended to read:
452.137
(2)
(c) An out-of-state broker who is a party to a cooperative agreement with a
licensed broker
firm
, and any out-of-state salesperson of the out-of-state broker, shall comply with the laws of this state, and the out-of-state broker shall file with the board an irrevocable consent that actions may be commenced against the out-of-state broker in the proper court of any county in this state in which a cause of action arises or the plaintiff resides, by the service of any process or pleading authorized by the laws of this state on the board or any duly authorized employee. The consent shall stipulate and agree that such service is valid and binding as due service upon the out-of-state broker in all courts in this state. The consent shall be duly acknowledged and, if made by a corporation, shall be authenticated by the corporate seal.
Section
111
.
452.137 (2) (d) of the statutes is amended to read:
452.137
(2)
(d) A
licensed broker who
firm that
is a party to a cooperative agreement with an out-of-state broker, and any
licensed salesperson or licensed time-share salesperson of
licensee associated with
the
licensed broker
firm
, may not act under the cooperative agreement on behalf of a broker who is not a party to the cooperative agreement.
Section
112
.
452.137 (2) (e) of the statutes is amended to read:
452.137
(2)
(e) 1. An out-of-state broker who is a party to a cooperative agreement with a
licensed broker
firm
shall maintain the originals or copies of all documents the out-of-state broker receives, maintains, or generates in connection with any transaction subject to the cooperative agreement, for at least 3 years after the date of closing or completion of the transaction, or, if no closing or completion occurs, 3 years after the date on which the parties execute the cooperative agreement.
2. An out-of-state broker who is a party to a cooperative agreement with a
licensed broker
firm
shall deposit with the
licensed broker
firm
copies of all documents the out-of-state broker is required to maintain under subd. 1., unless the out-of-state broker and
licensed broker
the firm
agree in writing that the out-of-state broker is not required to do so.
Section
113
.
452.137 (2) (f) of the statutes is amended to read:
452.137
(2)
(f) No person may pay an out-of-state broker a commission, money, or
any
other thing of value for brokerage services unless the out-of-state broker is a party to a cooperative agreement with a
licensed broker
firm
.
Section
114
.
452.137 (2) (g) of the statutes is amended to read:
452.137
(2)
(g) Notwithstanding s. 452.01 (2) (bm), no out-of-state broker may, for commission, money, or other thing of value, show a property in this state that is offered exclusively for rent unless that showing is authorized under a cooperative agreement between the out-of-state broker and a
licensed broker
firm
.
Section
115
.
452.137 (3) (intro.) of the statutes is amended to read:
452.137
(3)
Out-of-state salespersons.
(intro.) An out-of-state salesperson may act as a salesperson
or time-share salesperson
in this state only if all of the following conditions are met:
Section
116
.
452.137 (3) (c) of the statutes is amended to read:
452.137
(3)
(c) The out-of-state salesperson submits evidence to the
licensed broker
firm
that the out-of-state salesperson is licensed in good standing or is otherwise authorized to act as a salesperson or time-share salesperson in a jurisdiction other than this state.
Section
117
.
452.137 (3) (c) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.137
(3)
(c) The out-of-state salesperson submits evidence to the firm that the out-of-state salesperson is licensed in good standing or is otherwise authorized to act as a salesperson
or time-share salesperson
in a jurisdiction other than this state.
Section
118
.
452.137 (4) (a) of the statutes, as affected by
2015 Wisconsin Act 47
, is amended to read:
452.137
(4)
(a) The board shall establish
the
a
form
and terms of the
to be used for a
cooperative agreement
under this section, which shall include any required terms for such an agreement
.
Section
119
.
452.137 (4) (b) (intro.) of the statutes is amended to read:
452.137
(4)
(b) (intro.)
The
A
cooperative agreement
may be entered into only through the use of the form established by the board under par. (a) and
shall do at least all of the following:
Section
120
.
452.137 (4) (b) 1. of the statutes is amended to read:
452.137
(4)
(b) 1. Establish the terms of cooperation between the out-of state broker, any out-of-state salesperson, and the
licensed broker
firm
.
Section
121
.
452.137 (4) (b) 3. of the statutes is amended to read:
452.137
(4)
(b) 3. Provide that all client funds, as defined in s. 452.13 (1) (a), that the out-of-state broker and
licensed broker
the firm
receive in connection with a transaction subject to the cooperative agreement shall be deposited in a trust account maintained by the
licensed broker
firm
.
Section
122
.
452.138 of the statutes is amended to read:
452.138
Brokers
Firms
providing services in more than one transaction.
A
broker
firm
may provide brokerage services simultaneously to more than one party in different transactions
,
unless the
broker
firm
agrees with a client that the
broker
firm
is to provide brokerage services only to that client. If the
broker
firm
and a client agree that the
broker
firm
is to provide brokerage services only to that client, the agency agreement shall contain a statement of that agreement.
Section
123
.
452.139 (1), (2) and (3) of the statutes are amended to read:
452.139
(1)
Common law duties of
broker
firms
.
The duties of a
broker
firm
specified in this chapter or in rules promulgated under this chapter shall supersede duties or obligations under common law to the extent that those common law duties or obligations are inconsistent with the duties specified in this chapter or in rules promulgated under this chapter.
(2)
Misrepresentation
by broker
.
(a) A client is not liable for a misrepresentation made
by a broker
in connection with the
broker providing
provision of
brokerage services
by a firm or any licensee associated with the firm
, unless the client knows or should have known of the misrepresentation or the
broker
firm or licensee
is repeating a misrepresentation made
to him or her
by the client.
(b) A
broker who
firm that
is providing brokerage services to a client and
who
that
retains another
broker
firm
to provide brokerage services
to that client
as a subagent
is not liable for a misrepresentation made by the
other broker
subagent or any licensee associated with the subagent
, unless the
broker
firm
knew or should have known of the
other broker's
misrepresentation or the
other broker
subagent or licensee
is repeating a misrepresentation made to
him or her
by the
broker
firm or any licensee associated with the firm
.
(c) Nothing in this subsection limits the
liability
responsibility
of a
broker
firm
under s. 452.12 (3) for misrepresentations made by
an employee who is a broker
a licensee associated with the firm
. Nothing in this subsection limits the liability of a client for a misrepresentation that the client makes in connection with brokerage services.
(3)
Liability for negligent hiring.
An employing broker that hires an individual who is licensed or registered under this chapter and who
If a licensee associated with a firm
commits a crime under the laws of this state or another wrongful act
, the firm
may not be held civilly liable for hiring that
individual
licensee
in a claim brought for negligent hiring if, regardless of whether the
employing broker
firm
conducted its own investigation, the
employing broker
firm
relied on the investigations conducted by the department under s. 440.03 (13) or on any determination made by the board, including a determination under s. 452.07 (2) or 452.25.
Section
124
.
452.14 (1) of the statutes is amended to read:
452.14
(1)
The board shall, upon motion of the secretary or his or her designee or upon its own determination, conduct investigations and, as appropriate, may hold hearings and make findings, if the board or the department receives credible information that a broker
,
or
salesperson
, or time-share salesperson
has violated this chapter or any rule promulgated under this chapter.
Section
125
.
452.14 (2) of the statutes is amended to read:
452.14
(2)
The board may commence disciplinary proceedings on any matter under investigation concerning a licensee
or registrant
.
Section
126
.
452.14 (3) (intro.) of the statutes is repealed and recreated to read:
452.14
(3)
(intro.) The board may revoke, suspend, or limit the license or registration of any licensee, or reprimand the licensee, if it finds that the licensee has done any of the following:
Section
127
.
452.14 (3) (intro.) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.14
(3)
(intro.) The board may revoke, suspend, or limit the license
or registration
of any licensee, or reprimand the licensee, if it finds that the licensee has done any of the following:
Section
128
.
452.14 (3) (a) of the statutes is amended to read:
452.14
(3)
(a) Made a material misstatement in the application for a license
or registration
, or in any information furnished to the board or department
;
.
Section
129
.
452.14 (3) (b) of the statutes is amended to read:
452.14
(3)
(b) Made any substantial misrepresentation with reference to a transaction injurious to a
seller or purchaser
party
in which the
broker, salesperson
or time share salesperson
licensee
acts as agent
;
.
Section
130
.
452.14 (3) (c) of the statutes is amended to read:
452.14
(3)
(c) Made any false promises of a character such as to influence, persuade
,
or induce
the seller or purchaser
a party
to his or her injury or damage
;
.
Section
131
.
452.14 (3) (d) of the statutes is amended to read:
452.14
(3)
(d) Pursued a continued and flagrant course of misrepresentation or made false promises through
agents or salespersons
other licensees
or
through
advertising
;
.
Section
132
.
452.14 (3) (f) of the statutes is amended to read:
452.14
(3)
(f) Accepted from any person except the
broker's, salesperson's, or time-share salesperson's employer
firm with which the licensee is associated
, if the
broker, salesperson, or time-share salesperson is employed as a salesperson or time-share salesperson by a broker
licensee is associated with a firm
, a commission or valuable consideration
as a salesperson or time-share salesperson
for the performance of any act specified in this chapter or as compensation for referring a person to another
broker, salesperson, or time-share salesperson
licensee
or to any other person in connection with a transaction
;
.
Section
133
.
452.14 (3) (g) of the statutes is amended to read:
452.14
(3)
(g) Represented or attempted to represent a
broker other than the employer,
firm
without the express knowledge and consent of the
employer;
firm.
Section
134
.
452.14 (3) (h) of the statutes is amended to read:
452.14
(3)
(h) Failed, within a reasonable time, to account for or remit any moneys coming into the
broker's, salesperson's or time-share salesperson's
licensee's
possession which belong to another person
;
.
Section
135
.
452.14 (3) (i) of the statutes is amended to read:
452.14
(3)
(i) Demonstrated incompetency to act as a broker
,
or
salesperson
or time-share salesperson
, whichever is applicable,
in a manner which safeguards the interests of the public
;
.
Section
136
.
452.14 (3) (j) of the statutes is amended to read:
452.14
(3)
(j) Paid or offered to pay a commission or valuable consideration to any person for acts or services in violation of this chapter
;
.
Section
137
.
452.14 (3) (jm) of the statutes is amended to read:
452.14
(3)
(jm) Intentionally encouraged or discouraged any person from purchasing or renting real estate in a particular area on the basis of race. If the board finds that any
broker, salesperson or time-share salesperson
licensee
has violated this paragraph, the board shall, in addition to any temporary penalty imposed under this subsection, apply the penalty provided in s. 452.17 (4)
;
.
Section
138
.
452.14 (3) (k) of the statutes is amended to read:
452.14
(3)
(k) Been guilty of any other conduct, whether of the same or a different character from that specified herein,
which
that
constitutes improper, fraudulent
,
or dishonest dealing
;
.
Section
139
.
452.14 (3) (L) of the statutes is amended to read:
452.14
(3)
(L) Violated any provision of this chapter or any rule promulgated under this chapter
;
.
Section
140
.
452.14 (3) (m) of the statutes is amended to read:
452.14
(3)
(m) Failed to use forms approved under s. 452.05 (1) (b)
; or
.
Section
141
.
452.14 (3) (p) of the statutes is amended to read:
452.14
(3)
(p) Been convicted of a felony that is a bar to licensure
or registration
under s. 452.25 (1) (a).
Section
142
.
452.14 (4) of the statutes is amended to read:
452.14
(4)
If a
broker
firm
is a business entity it shall be sufficient cause for reprimand or for the limitation, suspension
,
or revocation of
a broker's
the firm's
license that any business representative of the
business entity
firm
, or anyone who has a financial interest in or is in any way connected with the operation of
a
the firm's
brokerage business, has been guilty of any act or omission
which
that
would be cause for refusing a broker's license to such person as an individual.
Section
143
.
452.14 (4m) (intro.) of the statutes is amended to read:
452.14
(4m)
(intro.) In addition to or in lieu of a reprimand or a revocation, limitation, or suspension of a license
or certificate of registration
under sub. (3), the board may do any of the following:
Section
144
.
452.14 (4m) (a) of the statutes is amended to read:
452.14
(4m)
(a) Assess against a
person who is licensed or registered under this chapter
licensee
a forfeiture of not more than $1,000 for each violation enumerated under sub. (3).
Section
145
.
452.14 (4m) (b) of the statutes is amended to read:
452.14
(4m)
(b) Require a licensee to successfully complete education or training, in addition to any education or training required for licensure
or registration
or for renewal of a license
or certificate
under this chapter, as a condition of continued licensure
or registration
or reinstatement of a license
or certificate
.
Section
146
.
452.14 (4r) of the statutes is amended to read:
452.14
(4r)
The board may assess against
an individual who is licensed or registered under this chapter
a licensee who is an individual
a forfeiture of $1,000 for a violation under s. 452.25 (2) (a).
Section
147
.
452.142 of the statutes is created to read:
452.142
Actions concerning licensees.
(1)
Notwithstanding s. 100.18 (11) (b) 3., 893.43, 893.52, or 893.57, an action concerning any act or omission of a firm or any licensee associated with the firm relating to brokerage services shall be commenced within 2 years after whichever of the following that applies occurs first:
(a) A transaction is completed or closed.
(b) An agency agreement is terminated.
(c) An unconsummated transaction is terminated or expires.
(2)
The period of limitation under this section may not be reduced by agreement.
(3)
The period of limitation under this section does not apply to disciplinary actions initiated by the board.
Section
148
.
452.15 (1) and (2) of the statutes are amended to read:
452.15
(1)
Except as otherwise provided in sub. (2), no license
or certificate of registration
may be issued under this chapter to any person whose license
or certificate
under this chapter has been revoked until the expiration of a period determined in each case by the board or, in the case of revocation under s. 452.17 (4) (a) 2., a period determined in each case by the board of not less than 5 years from the date the revocation became finally effective.
(2)
Issuance of a license
or certificate of registration
to an individual whose license
or certificate
is revoked under s. 452.14 (3) (p) is subject to the provisions in s. 452.25 (1).
Section
149
.
452.17 (2) of the statutes is repealed.
Section
150
.
452.17 (4) (a) of the statutes is amended to read:
452.17
(4)
(a) (intro.) If the board finds that any
broker, salesperson or time-share salesperson
licensee
has violated s. 452.14 (3) (jm), the board:
1. Shall, for the first offense, suspend the license or registration of the
broker, salesperson or time-share salesperson
licensee
for not less than 90 days.
2. Shall, for the 2nd offense, revoke the license or registration of the
broker, salesperson or time-share salesperson
licensee
.
Section
151
.
452.17 (4) (a) 1. and 2. of the statutes, as affected by 2015 Wisconsin Act .... (this act), are amended to read:
452.17
(4)
(a) 1. Shall, for the first offense, suspend the license
or registration
of the licensee for not less than 90 days.
2. Shall, for the 2nd offense, revoke the license
or registration
of the licensee.
Section
152
.
452.19 (title) of the statutes is repealed and recreated to read:
452.19
(title)
Fees and commissions.
Section
153
.
452.19 of the statutes is renumbered 452.19 (1) and amended to read:
452.19
(1)
No
licensed broker
licensee
may pay a fee or a commission or any part thereof for performing any act specified in this chapter or as compensation for a referral or as a finder's fee to any person who is not licensed or registered under this chapter or who is not regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States
,
or a foreign country.
Section
154
.
452.19 (1) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:
452.19
(1)
No licensee may pay a fee or a commission or any part thereof for performing any act specified in this chapter or as compensation for a referral or as a finder's fee to any person who is not licensed
or registered
under this chapter or who is not regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States, or a foreign country.
Section
155
.
452.19 (2) of the statutes is created to read:
452.19
(2)
If a licensee is associated with a firm, all fees or commission and any part thereof for performing any act specified in this chapter and all compensation for a referral or as a finder's fee shall be paid to the firm.
Section
156
.
452.20 of the statutes is amended to read:
452.20
Limitation on actions for commissions.
No person engaged in the business or acting in the capacity of a broker
,
or
salesperson
or time-share salesperson
within this state may bring or maintain an action in the courts of this state for the collection of a commission or compensation for the performance of any act mentioned in this chapter without alleging and proving that he or she was a duly licensed broker
,
or
salesperson
or registered time-share salesperson
at the time the alleged cause of action arose.
Section
157
.
452.21 of the statutes is amended to read:
452.21
Compensation presumed.
In any prosecution for violation of this chapter, proof that a person acted as a broker
, agent,
or
salesperson
or time-share salesperson
is prima facie proof that compensation therefor was received or promised.
Section
158
.
452.22 (2) of the statutes is amended to read:
452.22
(2)
The certificate of the chairperson of the board or his or her designee to the effect that a specified individual or business entity is not or was not on a specified date the holder of a broker's
,
or
salesperson's
, or time-share salesperson's
license
or registration
, or that a specified license
or registration
was not in effect on a date specified, or as to the issuance, limitation, suspension, or revocation of any license
or registration
or the reprimand of any
license or registration holder
licensee
, the filing or withdrawal of any application or its existence or nonexistence, is prima facie evidence of the facts stated in the certificate for all purposes in any action or proceedings.
Section
159
.
452.23 (1) of the statutes is amended to read:
452.23
(1)
A broker or salesperson
No licensee
may
not
disclose to any person in connection with the sale, exchange, purchase
,
or rental of real property information, the disclosure of which constitutes unlawful discrimination in housing under s. 106.50 or unlawful discrimination based on handicap under
42 USC 3604
,
3605
,
3606
,
or
3617
.
Section
160
.
452.23 (2) (intro.) of the statutes is amended to read:
452.23
(2)
(intro.) A
broker or salesperson
licensee
is not required to disclose any of the following to any person in connection with the sale, exchange, purchase
,
or rental of real property:
Section
161
.
452.23 (2) (b) of the statutes is amended to read:
452.23
(2)
(b) Except as provided in sub. (3), information relating to the physical condition of the property or any other information relating to the real estate transaction, if a written report that discloses the information has been prepared by a qualified 3rd party and provided to the person. In this paragraph, "qualified 3rd party" means a federal, state
,
or local governmental agency, or any person whom the
broker, salesperson
licensee
or a party to the real estate transaction reasonably believes has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the 3rd party in order to prepare the written report.
Section
162
.
452.23 (3) of the statutes is amended to read:
452.23
(3)
A
broker or salesperson
licensee
shall disclose to the parties to a real estate transaction any facts known by the
broker or salesperson
licensee
that contradict any information included in a written report described under sub. (2) (b).
Section
163
.
452.23 (4) of the statutes is amended to read:
452.23
(4)
In performing an investigation or inspection and in making a disclosure in connection with a real estate transaction, a
broker or salesperson
licensee
shall exercise the degree of care expected to be exercised by a reasonably prudent person who has the knowledge, skills
,
and training required for licensure
as a broker or salesperson
under this chapter.
Section
164
.
452.24 (2) of the statutes is amended to read:
452.24
(2)
Notwithstanding sub. (1), the
broker or salesperson
licensee
is immune from liability for any act or omission related to the disclosure of information under sub. (1) if the
broker or salesperson
licensee
in a timely manner provides to the person requesting the information written notice that the person may obtain information about the sex offender registry and persons registered with the registry by contacting the department of corrections. The notice shall include the appropriate telephone number and Internet site of the department of corrections.
Section
165
.
452.25 (1) (a) of the statutes is amended to read:
452.25
(1)
(a) Notwithstanding ss. 111.321, 111.322, and 111.335, and except as provided in pars. (b) to (e), no applicant who is an individual may be issued a broker's or salesperson's license
or a time-share salesperson's certificate of registration
if the applicant has been convicted of a felony.
Section
166
.
452.25 (1) (b) of the statutes is amended to read:
452.25
(1)
(b) If an applicant has been convicted of a felony described under par. (a); the applicant has completed the confinement portion of his or her sentence, if the applicant is serving a bifurcated sentence, or has been released from prison to parole or released upon the completion of his or her sentence; and 3 years have elapsed since the date on which the confinement portion was completed or the applicant was released, the applicant may apply to the board for a determination as to whether the applicant is suitable to be granted a license
or certificate
.
Section
167
.
452.25 (1) (c) 2. of the statutes is amended to read:
452.25
(1)
(c) 2. Reviewing any supplemental information provided by the applicant bearing upon his or her suitability for licensure as a broker or salesperson
or for registration as a time-share salesperson
.
Section
168
.
452.25 (1) (d) of the statutes is amended to read:
452.25
(1)
(d) With respect to a determination under par. (c), the applicant bears the burden of demonstrating his or her suitability for licensure
or registration
.
Section
169
.
452.25 (1) (e) of the statutes is amended to read:
452.25
(1)
(e) If the board makes a determination under par. (c) to allow an applicant to be granted a broker's or salesperson's license
or a time-share salesperson's certificate of registration
, the applicant shall be granted the license
or certificate
if the applicant satisfies all other requirements for granting the license
or certificate of registration
.
Section
170
.
452.25 (2) (b) of the statutes is amended to read:
452.25
(2)
(b) No applicant may be issued an initial broker's or salesperson's license
or time-share salesperson's certificate of registration
, and no applicant may renew such a license
or certificate
, if the applicant has violated par. (a) and failed to pay any forfeiture assessed by the board under s. 452.14 (4r) for that violation.
Section
171
.
452.30 of the statutes is created to read:
452.30
Association with firm; independent practice.
(1)
No licensee may provide brokerage services on behalf of a firm unless all of the following apply:
(a) The licensee is associated with the firm.
(b) The licensee has notified the department that the licensee is associated with the firm.
(2)
A licensee may notify the department that the licensee is associated with a firm under sub (1) (b) by doing one of the following:
(a) Providing the notice at the time the licensee first applies for licensure as a broker or salesperson. No separate fee for notifying the department may be required for such a notification under this paragraph.
(b) Notifying the department through the use of a form prescribed by the department and paying the transfer fee specified in s. 440.05 (7).
(3)
A licensee who is associated with a firm may notify the department that the licensee has become associated with another firm using the method specified in sub. (2) (b).
(4)
(a) A licensee that ceases to be associated with a firm shall, through the use of a form prescribed by the department, send written notice to the department within 10 days after the date on which the licensee ceases to be associated with the firm.
(b) A firm that terminates a licensee from being associated with the firm shall, through the use of a form prescribed by the department, send written notice of that termination to the department within 10 days after the termination.
(6)
(a) A broker who is associated with a firm may also engage in independent real estate practice in his or her own name or under the name of a licensed broker business entity, if the broker obtains written approval from and avoids conflicts of interest with each firm with which the broker is associated. The written approval shall specify all of the following:
1. Whether the broker engaging in independent practice may engage other licensees to work under the broker.
2. That the broker engaging in independent practice is responsible for the supervision of any licensees associated with the broker.
(b) Before engaging in independent practice as provided in par. (a), a broker shall notify the department of that fact and of the name under which the broker will engage in independent practice. The broker shall notify the department using any form or other method prescribed by the department for that purpose.
(c) A broker that is engaging in independent practice shall not be considered to be associated with a firm that approved the broker engaging in independent practice under par. (a) with respect to the broker's independent practice activities.
(7)
(a) A salesperson may be associated with only one firm at a given time.
(b) A salesperson or time-share salesperson may not engage in independent real estate practice and may engage in real estate practice only when associated with a firm.
Section
172
.
452.30 (7) (b) of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:
452.30
(7)
(b) A salesperson
or time-share salesperson
may not engage in independent real estate practice and may engage in real estate practice only when associated with a firm.
Section
173
.
452.34 of the statutes is created to read:
452.34
Unlicensed personal assistants.
(1)
In this subsection, "unlicensed personal assistant" means an individual, including an individual who is licensed under this chapter, who is employed only to provide services for which a license is not required under this chapter as provided in s. 452.03 (2).
(2)
A licensee associated with a firm, prior to retaining an individual to serve as an unlicensed personal assistant, shall enter into a written agreement with the licensee's firm, setting forth the duties of the unlicensed personal assistant, the manner in which the unlicensed personal assistant will be compensated for his or her services, and the responsibilities of the licensee and the firm with respect to supervision of the unlicensed personal assistant's activities.
(3)
(a) In this subsection, "open house" means a showing of real estate open to the public for viewing without an individual appointment.
(b) An unlicensed personal assistant may not assist a licensee at an open house for the sale of real estate or a business without the direct, on-premises supervision and presence of a licensee, and may not provide any services at an open house for which a license is required under this chapter.
Section
174
.
452.38 of the statutes is created to read:
452.38
Independent contractor relationship.
(1)
Except as otherwise provided in s. 102.078, a licensee shall not, under ch. 102, 103, 104, or 109, under subch. X of ch. 71 or subch. II of ch. 111, under any other law or rule other than those specified under sub. (1m), or in any action or proceeding under the common law, be considered an employee of a firm if all of the following are satisfied:
(a) A written agreement has been entered into with the firm that provides that the licensee shall not be treated as an employee for federal and state tax purposes.
(b) Seventy-five percent or more of the compensation related to sales or other output, as measured on a calendar year basis, paid to the licensee pursuant to the written agreement referenced under par. (a) is directly related to the brokerage services performed by the licensee on behalf of the firm.
(1m)
This section does not apply with respect to ch. 108 or any rules promulgated thereunder.
(2)
(a) Subsection (1) applies notwithstanding the requirements and responsibilities of a firm under s. 452.132 and any rules promulgated by the board.
(b) Subsection (1) applies regardless of the licensee's status as a supervising broker under s. 452.132 and any actions taken by the licensee as a supervising broker under s. 452.132.
(3)
In the case of an individual who is engaged as both an independent contractor and an employee for the same firm, sub. (1) applies only with respect to activities covered under the written agreement referenced under sub. (1) (a).
Section
175
.
452.40 of the statutes is created to read:
452.40
Use of forms; provision of legal advice.
(1)
(a) In this subsection, "use a form" means to complete a form by filling in blanks or modifying printed provisions on the form at the instruction of one or more parties with whom a licensee is working or representing in a specific transaction.
(b) A firm and any licensee associated with the firm may use a form approved by the board under s. 452.05 (1) (b) in real estate practice.
(2)
A licensee may not provide advice or opinions concerning the legal rights or obligations of parties to a transaction, the legal effect of a specific contract or conveyance, or the state of title to real estate. A licensee may provide a general explanation of the provisions in a form approved by the board under s. 452.05 (1) (b) to the parties to a transaction at the time of completing the form or when delivering an approved form for the seller's or buyer's acceptance. Reviews conducted by a supervising broker under s. 452.132 (4) shall not be considered to be the provision of legal advice or opinion.
Section
176
.
452.42 of the statutes is created to read:
452.42
Records retention.
(1)
In this section, "electronic" has the meaning given in s. 137.11 (5).
(2)
A licensee shall retain documents or records related to a transaction, as determined by the board, in accordance with any rules promulgated by the board. Records described in this section may be retained in an electronic file format.
Section
177
.
707.55 (5) of the statutes is amended to read:
707.55
(5)
Salespersons.
Misrepresenting the identity, function
,
or authority of a salesperson
, including a time-share salesperson, as defined in s. 452.01 (9),
or team of salespersons.
Section
178
.
707.55 (7) of the statutes is amended to read:
707.55
(7)
Length of sales presentation.
Misrepresenting the reasonably estimated length of any sales presentation by a salesperson
, including a time-share salesperson, as defined in s. 452.01 (9),
or team of salespersons.
Section
179
.
Nonstatutory provisions.
(1)
Emergency rule authority.
Using the procedure under section 227.24 of the statutes, the real estate examining board may promulgate rules under chapter 452 of the statutes that are necessary to implement the changes in this act for the period before the effective date of any corresponding permanent rules, but not to exceed the period authorized under section 227.24 (1) (c) of the statutes, subject to extension under section 227.24 (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the board is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.
(2)
Elimination of time-share salesperson registrations.
Notwithstanding sections 440.08 and 452.025 (5) of the statutes, the department of safety and professional services and the real estate examining board shall not renew any time-share salesperson's certificate of registration issued under section 452.025 of the statutes. The department of safety and professional services shall, instead of giving a notice of renewal to each holder of a time-share salesperson's certificate of registration under section 440.08 (1) of the statutes, give notice of the elimination of such registration by this act.
Section
180
.
Initial applicability.
(1)
Actions against licensees.
The treatment of section 452.142 of the statutes first applies to an action that accrues on the effective date of this subsection.
(1m)
Employment exclusion; unemployment insurance.
The treatment of section 108.02 (15) (k) 7. of the statutes first applies to services performed on the effective date of this subsection.
Section
181
.
Effective dates.
This act takes effect on July 1, 2016, or on the day after publication, whichever is later, except as follows:
(1)
Elimination of time-share salesperson registrations.
The repeal of sections 440.03 (13) (b) 72., 440.08 (2) (a) 69., 452.01 (9), 452.025 (by
Section
42), 452.137 (1) (d), and 452.17 (2) of the statutes and the amendment of sections 452.01 (4), 452.01 (5) (by
Section
30), 452.01 (5p) (by
Section
35
), 452.01 (7) (by
Section
38), 452.05 (1) (a) (by
Section
50
), 452.05 (1) (i) (intro.), 452.05 (1) (i) 1., 452.05 (1) (i) 3. b., 452.07 (2) (by
Section
57
), 452.11 (1), 452.132 (2) (c), 452.137 (3) (intro.), 452.137 (3) (c) (by
Section
117), 452.14 (1), 452.14 (2), 452.14 (3) (intro.), 452.14 (3) (a), 452.14 (3) (i), 452.14 (3) (p), 452.14 (4m) (intro.), 452.14 (4m) (b), 452.15 (1) and (2), 452.17 (4) (a) 1. and 2. (by
Section
151), 452.19 (1) (by
Section
154), 452.20, 452.21, 452.22 (2), 452.25 (1) (a), 452.25 (1) (b), 452.25 (1) (c) 2., 452.25 (1) (d), 452.25 (1) (e), 452.25 (2) (b), 452.30 (7) (b), 707.55 (5), and 707.55 (7) of the statutes take effect on December 14, 2016.
(2)
Actions against licensees.
The treatment of section 452.142 of the statutes and
Section
180 (1
) of this act take effect on the day after publication.
(2m)
Employment exclusion; unemployment insurance.
The treatment of section 108.02 (15) (k) 7. of the statutes and
Section
180 (1m) of this act take effect on October 1, 2016.
