Under s. 452.03 an agreement to pay a real estate brokerage commission to a person not licensed as a broker is void at its inception. Using a licensed broker who provides no actual services as a conduit for a fee to an unlicensed person does not create a co-brokerage arrangement authorized by s. 452.19. Badger III Ltd. v. Howard, Needles, Tammen & Bergendoff, 196 Wis. 2d 891
, 539 N.W.2d 904
(Ct. App. 1995), 94-2531
Officers of a corporation or partners of a partnership can act for the corporation or partnership in the rental of real estate owned by the entity without being licensed as real estate brokers. 60 Atty. Gen. 1 (1971).
Actions of a tenants union on behalf of its members may require a real estate broker's license. 60 Atty. Gen. 118 (1971).
The permitted limits of nonlicensed independent contractor agents are discussed. 70 Atty. Gen. 23.
Duties and powers of board. 452.05(1)
In addition to the other duties and responsibilities of the board under this chapter, the board shall advise the secretary on matters relating to real estate practice and shall:
Grant and issue licenses to brokers and salespersons and registrations to time-share salespersons.
Approve forms for use in real estate practice. The board may conduct public hearings on matters relating to the approval of forms used in real estate practice.
After consultation with the council on real estate curriculum and examinations, promulgate rules establishing criteria for the approval of educational programs and training sessions under s. 452.09 (2)
and approve such programs and sessions in accordance with the established criteria.
After consultation with the council on real estate curriculum and examinations, brokers and salespersons licensed under this chapter, and interested members of the public, establish criteria for the approval of continuing educational programs and courses in real estate related subjects required for renewal under s. 452.12 (5) (c)
Approve continuing educational programs and courses in accordance with the criteria established under par. (d)
. In order to be approved, a continuing educational program or course must require brokers and salespersons to pass an examination on the information presented at the program or course in order to successfully complete and receive continuing education credit for the program or course under s. 452.12 (5) (c)
"Certified local register of historic property" means a register of historic property that is part of a historic preservation ordinance enacted by a city, village, town or county if the ordinance is certified by the state historical society under s. 44.44
"Historic building" means a building that fulfills at least one of the following requirements:
Is listed on a certified local register of historic property, if that fact is specified in a statement recorded in the office of the register of deeds for the county in which the commercial real estate is located.
Is included in a district that is listed on a certified local register of historic property, if that fact is specified in a statement recorded in the office of the register of deeds for the county in which the commercial real estate is located, and has been determined by the city, village, town or county to contribute to the historic significance of the district.
In preparing the form for the offer to purchase commercial real property under sub. (1) (b)
, the board shall include a statement that the seller represents to the buyer that the seller has no notice or knowledge that the commercial real property is a historic building.
The board may prepare letters and bulletins and conduct clinics disseminating information to its licensees.
The board may enter into reciprocal agreements with officials of other states or territories of the United States for licensing brokers and salespersons and grant licenses to applicants who are licensed as brokers or salespersons in those states or territories according to the terms of the reciprocal agreements.
A corporation cannot be licensed as real estate salesperson. 71 Atty. Gen. 38
Councils and committees. 452.06(1)
The board shall create one or more councils on forms which shall meet on a regular basis, be chaired by a member of the board, and report to the board. Any proposed change in a form relating to real estate practice shall be referred to the appropriate council on forms for review before the form is approved.
The council on real estate curriculum and examinations shall do all of the following:
Not less than annually, review subjects covered on examinations for licensure under this chapter and the qualifications for instructors of and performance evaluations for educational and continuing educational programs, training sessions, and courses approved under this chapter.
If the secretary creates any councils or committees under s. 15.04 (1) (c)
to provide advice to the department or board on matters relating to real estate practice, such councils or committees shall be chaired by a member of the board, if available, and shall report to the board and the secretary.
The secretary shall provide staff and other support required for the operation of councils and committees created under this section or under s. 15.04 (1) (c)
to provide advice to the department or board, as appropriate, on matters relating to real estate practice.
The board shall promulgate rules for the guidance of the real estate profession and define professional conduct and unethical practice.
The board shall promulgate rules that specify the supervisory duties of brokers under s. 452.12 (3)
See also chs. REEB 11
, and 26
, Wis. adm. code.
Board receipt of proposed legislation.
The secretary shall submit to the board in writing any legislation proposed by the department relating to licensees or the board prior to introduction in the legislature.
History: 1981 c. 94
Application for license, contents. 452.09(1)
Form of application.
Any person desiring to act as a broker or salesperson shall submit to the board an application for a license. The application shall be in such form as the board prescribes and shall include the following:
The name and address of the applicant; if the applicant is a business entity, the name and address of each business representative.
The place or places, including the town, village or city, street number and county, where the business is to be conducted, and the manner in which the place of business is designated.
The business or occupation engaged in by the applicant, or if a business entity, by each business representative, for a period of at least 2 years immediately preceding the date of the application.
Any other information that the board may reasonably require to enable it to determine the competency of each applicant, including each business representative of the business entity, to transact the business of a broker or salesperson in a manner that safeguards the interests of the public.
(2) Educational requirements for applicants for licenses. 452.09(2)(a)(a)
Except as provided in a reciprocal agreement under s. 452.05 (3)
, each applicant for a salesperson's license shall submit to the board evidence satisfactory to the board of successful completion of educational programs approved for this purpose under s. 452.05 (1) (c)
. The board may waive the requirement under this paragraph upon proof that the applicant has received 10 academic credits in real estate or real estate related law courses from an accredited institution of higher education.
Except as provided in par. (d)
or a reciprocal agreement under s. 452.05 (3)
, each applicant for a broker's license shall do all of the following:
Satisfy or obtain a waiver of the requirement under par. (a)
or submit proof of licensure as a salesperson under this chapter.
Submit to the board evidence satisfactory to the board of successful completion of educational programs in business management approved for this purpose under s. 452.05 (1) (c)
. No educational programs applied to satisfy the requirement under subd. 1.
may be applied to satisfy the requirement under this subdivision.
The board may waive the requirements under par. (c)
upon proof that the applicant has received 20 academic credits in real estate or real estate related law courses from an accredited institution of higher education or that the applicant is licensed to practice law in this state.
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.
The board shall determine competency under par. (a)
by means of only an oral examination for any applicant who is unable to write because of a physical handicap.
Examinations shall reliably measure an applicant's ability to competently engage in real estate practice.
Except as provided in a reciprocal agreement under s. 452.05 (3)
, the board may not grant a broker's license to an applicant who does not hold a salesperson's license unless the applicant passes the salesperson's examination and the broker's examination.
An applicant is not eligible for examination unless the applicant has satisfied the applicable requirements under sub. (2)
Any person who is a resident of this state and 18 years of age or over may, upon application filed in accordance with sub. (1)
, be indentured to a licensed resident broker in accordance with rules promulgated by the board. These rules shall be promulgated so as to protect the public and may limit the real estate sales and brokerage activity of the apprentice. The board may require an apprentice to take a preliminary examination covering general knowledge and may prescribe the character and extent of his or her work during apprenticeship. The board may issue a temporary salesperson's permit to the individual for a period not to exceed one year upon payment of the fee under s. 440.05 (6)
. The temporary permit is not renewable.
See also chs. REEB 12
, and 25
, Wis. adm. code.
Applications, verification, fees, exceptions. 452.10(1)(1)
An application shall be verified by the applicant. If made by a business entity it shall be verified by a business representative.
Each new application for a broker's or salesperson's license shall be for the remainder of the biennial license period.
Unless an application is withdrawn in writing before the board has made any investigation, no part of the fee shall be returned.
The fees for examinations and licenses granted under this chapter are specified under s. 440.05
, and the renewal fee for such licenses is determined by the department under s. 440.03 (9) (a)
Any licensed salesperson or broker may transfer to the employment of a licensed broker by first paying the transfer fee specified in s. 440.05 (7)
and filing a transfer form with the board.
No salesperson, time-share salesperson or broker may be employed by a broker whose license has been suspended or revoked during the period of suspension or revocation. The salesperson, time-share salesperson or broker may apply for transfer to some other licensed broker by complying with this chapter, provided the salesperson, time-share salesperson or broker is not a party to the activities causing the suspension or revocation of the license of the broker.
In the case of applications for renewals of licenses the board may dispense with such matters contained in s. 452.09 (1)
as it deems unnecessary in view of prior applications.
See also ch. REEB 12
, Wis. adm. code.
The real estate examining board cannot prescribe the name to be used on an application for a real estate broker's license. 66 Atty. Gen. 21.
Nonresident applicants and licensees. 452.11(1)
A nonresident may become a broker, salesperson or time-share salesperson by conforming to all the provisions of this chapter.
Every nonresident applicant, and every resident licensee who becomes a nonresident, shall file with the board an irrevocable consent that actions may be commenced against the applicant or licensee in the proper court of any county of the state in which a cause of action arises or in which 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 applicant or licensee 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.
Any process or pleading under this section shall be served in duplicate upon the board or its duly authorized employee. One copy shall be filed with the board and the other immediately forwarded by certified mail to the nonresident licensee against whom the process or pleading is directed at the last address provided to the board by the nonresident licensee. No default in any such proceeding or action may be taken unless it appears by affidavit of the chairperson of the board or any duly authorized employee that a copy of the process or pleading was mailed to the nonresident licensee as required in this subsection. No judgment by default may be taken in any action or proceeding within 20 days after the date of mailing the process or pleading to the nonresident licensee.
See also ch. REEB 12
, Wis. adm. code.
A license granted by the board entitles the holder to act as a broker or salesperson, as the case may be, until the applicable renewal date specified under s. 440.08 (2) (a)
A 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 broker to act as a broker on behalf of the business entity.
Application for a business entity license shall be made on forms prescribed by the board, listing the names and addresses of all business representatives, 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.
(3) Broker's liability for acts of employees.
Each broker shall supervise, and is responsible for, the brokerage services provided on behalf of the broker by any broker, salesperson, or time-share salesperson who is an employee of the broker.
(4) Register of brokers and salespersons.
The board shall include in the register the board maintains under s. 440.035 (4)
the names of all brokers and salespersons whose licenses were revoked within the past 2 years. The register shall be available for purchase at cost.
Renewal applications for all licenses shall be submitted with the applicable renewal fee determined by the department under s. 440.03 (9) (a)
on or before the applicable renewal date specified under s. 440.08 (2) (a)
. The department shall pay $10 of each renewal fee received under this paragraph to the Board of Regents of the University of Wisconsin System for research and educational, public outreach, and grant activities under s. 36.25 (34)
If an application for renewal is not filed with the board on or before the renewal date, 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.