(3k) “Licensee" has the meaning under s. 452.01 (5), Stats.
SECTION 3. RL 17.02 (5) is amended to read:
RL 17.02 (5) “Unlicensed personal assistant" means a person not licensed under ch. 452, Stats., or a person who is licensed but not employed for the purpose of providing services for which a licensee is required under ch. 452, Stats., who on behalf of and under the direction of a licensee, provides the licensee with administrative, clerical or personal services for which a license under sh. 452, Stats., is not required.
SECTION 4. RL 17.03 (title), (2), (3) and (4) are amended to read:
RL 17.03 Limitations on broker and salesperson employes of a broker.
(2) A broker or salesperson licensee who is employed by a broker-employer may personally employ licensed persons only as unlicensed personal assistants within the meaning of s. RL 17.02 (5), subject to the provisions in s. RL 17.12.
(3) A broker or salesperson licensee may be employed by only one broker-employer at any time.
(4) A salesperson or time-share salesperson may engage in real estate practice only when employed by a broker.
SECTION 5. RL 17.04 is amended to read:
RL 17.04 Notice of employment. A broker or salesperson licensee who wishes to engage in real estate practice as an employe of a broker-employer shall notify the department of the name of the broker-employer on forms prescribed by the department. If this notice is provided at the time of application for original licensure, the department may not charge a fee in addition to the fee specified in s. 440.05 (1), Stats. If the notice is provided other than at the time of application for original licensure, the licensee shall pay the fee specified in s. 440.05 (7), Stats.
SECTION 6. RL 17.05 (1) and (2) are amended to read:
RL 17.05 (1) A broker or salesperson licensee who wishes to transfer employment from one broker-employer to another shall submit to the department a transfer application accompanied by the fee specified in s. 440.05 (7), Stats.
(2) A broker or salesperson licensee who transfers employment to another broker-employer may not engage in real estate practice for the new employer until the broker or salesperson licensee has delivered or mailed a completed transfer application and the required fee to the department.
SECTION 7. RL 17.06 is amended to read:
RL 17.06 Termination of employment. A broker or salesperson licensee who terminates employment with a broker-employer shall send written notice to the department within 10 days after the termination.
SECTION 8. RL 17.08 (1) is amended to read:
RL 17.08 (1) A broker-employer shall supervise the activities of any broker or salesperson licensee employed by the broker-employer. Supervision includes, but is not limited, to reviewing all listing contracts, offers to purchase, trust account records and other documents related to transactions. A broker-employer may delegate this responsibility to other brokers. Broker-employers shall provide all licensed employes with a written statement of procedures under which the office and employes shall operate with respect to handling leases, listing contracts, offers to purchase and other documents relating to transactions.
SECTION 9. RL 17.12 (1) is amended to read:
RL 17.12 (1) A real estate salesperson or broker-employe licensed employe, prior to employing an unlicensed personal assistant, shall enter into a written agreement with his or her broker-employer, setting forth the duties of the unlicensed personal assistant, the manner in which the personal assistant will be compensated for his or her services and the responsibilities between the salesperson or broker-employe licensed employe and broker-employer for supervision of the personal assistant's activities.
SECTION 10. The Note following s. RL 24.03 (1) is amended to read:
Note: The primary references for federal and state fair housing laws are the 1988 amendments to the Federal Housing Act (Title VII of the Civil Rights Act of 1968) and 1991 Wis. Act 295 Chapter 106, Subchapter II, Stats.
SECTION 11. RL 24.04 (2) (a) and (b) are amended to read:
RL 24.04 (2) (a) A Except for advertisements for the rental of real estate owned by the broker, a broker shall in all advertising disclose the broker's name exactly as printed on the broker's license or disclose a trade name previously filed with the department, as required by s. RL 23.03, and in either case clearly indicate that the broker is a business concern and not a private party.
(b) A broker or salesperson Except for advertisements for the rental of real estate owned by the licensee, a licensee employed by a broker shall advertise under the supervision of and in the name of the employing broker.
SECTION 12. RL 24.05 (5) is renumbered RL 25.05 (5) (a) (intro.) and amended to read:
RL 24.05 Disclosure of licensure. (5) (a) A licensee acting as a principal in a real estate or business opportunity transaction shall disclose his, her, or its license status prior to entering into a binding purchase agreement, option, exchange agreement, lease or other contract creating an interest in the real estate or business opportunity. and intent to act in the transaction as a principal at the earlier of all of the following:
SECTION 13. RL 25.05 (5) (a) 1., 2., 3. and (b) are created to read:
RL 25.05 (5) (a) 1. The first contact with the other party or an agent representing the other party where information regarding the other party or the transaction is being exchanged.
2. A showing of the property.
3. Any other negotiation with the seller or the listing broker.
(b) The disclosure under this section shall be made to the other party in a transaction or to an agent representing the other party.
SECTION 14. RL 24.07 (8) (a) 2. (intro.), a. and c. are amended to read:
RL 24.07 (8) (a) 2. Licensees acting as agents of potential buyers of real estate used or intended to be used principally for one to 4 family residential purposes, who are negotiating directly with the seller or who are aware that the owner of the real estate has granted another licensee the exclusive right to sell, shall notify the seller or the listing broker, as applicable, of the licensee's buyer agency relationship at the earlier of all of the following:
a. The first contact with the seller or the listing broker where information regarding the seller or transaction is being exchanged.
c. Any other negotiation with the seller or the listing broker.
SECTION 15. RL 24.12 is renumbered RL 24.12 (1) and amended to read:
RL 24.12 Confidentiality of offers. (1) A Except as provided in sub. (2), a licensee acting as a principal or an agent in a real estate or business opportunity transaction shall not disclose any of the terms of one prospective buyer's offer to purchase, exchange agreement or option contract proposal to any other prospective buyer or to any person with the intent that this information be disclosed to any other prospective buyer. Licensees shall encourage all prospective buyers to submit their best offers. A licensee may, but is not required to, disclose information known by the licensee regarding the existence of other offers on the property, the fact that a seller has accepted an offer, that the offer is subject to contingencies and that the offer is subject to a clause requiring removal of certain contingencies upon the occurrence of an event such as receipt, acceptance or conditional acceptance of another offer.
SECTION 16. RL 24.12 (2) is created to read:
RL 24.12 (2) As used in this subsection, “right of first refusal" means the right of a person to have the first opportunity to purchase or lease real property. “Right of first refusal" does not mean a so-called “bump clause" which is a contingency provision in a purchase agreement that requires the prospective buyer to remove certain contingencies in the buyer's purchase agreement or to relinquish the buyer's primary status to a secondary offer. If a licensee is providing brokerage services in a transaction and the licensee has knowledge that the property is subject to a right of first refusal, the licensee shall disclose the right of first refusal, in writing and in a timely manner, to all persons seeking to acquire an interest subject to the right of first refusal. After disclosure of the right of first refusal to a party seeking to acquire an interest in the property, the licensee may deliver a copy of that party's subsequent offer to purchase, exchange agreement, option contract or lease proposal to the party holding the right of first refusal.
SECTION 17. RL 24.13 (3) (b), (5) (title) and (5) are amended to read:
RL 24.13 (3) (b) A listing broker or the listing broker's employe may not submit his or her own offer to purchase a property which the broker has listed if the broker or broker's employe has knowledge of the terms of any pending offer, except that a broker may arrange for a guaranteed sale at the time of listing.
(5) NEGOTIATION THROUGH LISTING BROKER. Licensees shall may not negotiate a sale or lease of real estate directly with an owner a party if the licensee knows that such owner has an unexpired written contract in connection with such property which grants to another licensee an exclusive right to sell, lease or negotiate. All negotiations shall be conducted with the listing broker holding the exclusive right to sell, and not with the owner party, except with the consent of the listing broker or where the absence of the listing broker, or other similar circumstances, reasonably compels direct negotiation with the owner. A listing broker has no duty to investigate whether a buyer has granted a buyer's agent an exclusive right to negotiate.
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the Department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Stats.
Copies of Rule and Contact Information
Copies of this proposed rule are available without cost upon request to:
Pamela Haack
Dept. of Regulation and Licensing
Office of Administrative Rules
1400 East Washington Avenue, Room 171
P.O. Box 8935
Madison, WI 53708
Telephone: (608) 266-0495
Notice of Hearing
Regulation and Licensing
Notice is hereby given that pursuant to authority vested in the Department of Regulation and Licensing in ss. 227.11 (2), 480.06 and 480.08 (7), Stats., and interpreting ss. 480.08 (7), 480.20 and 480.24, Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to amend the Note following s. RL 125.03, and s. RL 126.02 (13); and to create ss. RL 121.025 and 126.03, relating to the regulation of auctioneers and auction companies.
Hearing Information
The hearing will be held as follows:
Date and Time Location
July 24, 2000 Room 180
Monday 1400 East Washington Ave.
9:15 a.m. MADISON, WI
Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by Monday, August 7, 2000, to be included in the record of rule-making proceedings.
Analysis Prepared by the Dept. of Regulation and Licensing
Statutes authorizing promulgation: ss. 227.11 (2), 480.06 and 480.08 (7)
Statutes interpreted: ss. 480.08 (7), 480.20 and 480.24
This proposed rule-making order of the Department of Regulation and Licensing amends rules relating to the regulation of auctioneers and auction companies. A new rule section is created in ch. RL 126, to describe the effect of a suspension or revocation.
The Note following s. RL 125.03 is amended to correct a citation.
Section RL 126.02 (13) is amended to correct an error. The term “buyer's fee or surcharge" is substituted for “buyer's premium or surcharge." The term “buyer's fee or surcharge" is defined in s. RL 120.02 (4).
The Wisconsin Statutes require in s. 480.08 (7), Stats., that a temporary registration certificate shall be valid for a period designated by the Department, not to exceed one year. Section RL 121.025 is created to specify that a temporary registration certificate is valid for 60 days.
Section RL 126.03 is created to describe the auctioneer-related activities that may not be performed by a person whose registration as an auctioneer or auction company has been suspended or revoked. Under the rule, a suspended or revoked auctioneer or auction company must notify all persons with whom the auctioneer or auction company has a contract for auctioneer services of the suspension or revocation. The rule also describes specific activities that may not be performed by a suspended or revoked auctioneer or auction company.
Text of Rule
SECTION 1. RL 121.025 is created to read:
RL 121.025 Temporary registration. A temporary registration certificate issued under s. 480.08 (7), Stats., shall be valid for no more than 60 days after the date that the applicant has filed an application for registration as an auctioneer with the department.
SECTION 2. The Note following s. RL 125.03 is amended to read:
Note: This provision applies only to registrants not required to maintain a trust account. Registrants for whom a trust account is required must use the trust account bookkeeping system described in s. RL 125.11 125.12.
