SB401, s. 33
1Section
33. 452.133 (1) (g) of the statutes is amended to read:
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452.133
(1) (g) When
the broker is negotiating on behalf of a party,
the duty to 3present contract proposals in an objective and unbiased manner and disclose the
4advantages and disadvantages of the proposals.
SB401, s. 34
5Section
34. 452.133 (2) (intro.) of the statutes is amended to read:
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452.133
(2) Broker's duties to a client. (intro.)
In addition to his or her duties
7under sub. (1), a A broker providing brokerage services to his or her client
shall do 8owes the client the duties that the broker owes to a person under sub. (1) and all of
9the following
additional duties:
SB401, s. 35
10Section
35. 452.133 (2) (a) of the statutes is renumbered 452.133 (2) (a) (intro.)
11and amended to read:
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452.133
(2) (a) (intro.)
Loyally
The duty to loyally represent the client's
13interests by
placing doing all of the following:
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141. Placing the client's interests ahead of the
broker's interests
of any other
15party, unless loyalty to a client violates the broker's duties under sub. (1) or s. 452.137
16(2).
SB401, s. 36
17Section
36. 452.133 (2) (a) 2. of the statutes is created to read:
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452.133
(2) (a) 2. Placing the client's interests ahead of the interests of persons
19in the transaction who are not the broker's clients by not disclosing to persons in the
20transaction other than the broker's clients information or advice the disclosure of
21which is contrary to the interests of a client of the broker, unless the disclosure is
22required by law.
SB401, s. 37
23Section
37. 452.133 (2) (am) of the statutes is created to read:
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452.133
(2) (am) The duty to provide, when requested by the client, information
25and advice to the client on matters that are material to the client's transaction and
1that are within the scope of the knowledge, skills, and training required under this
2chapter.
SB401, s. 38
3Section
38. 452.133 (2) (b) of the statutes is amended to read:
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452.133
(2) (b)
Disclose The duty to disclose to the client all information known
5by the broker that is material to the transaction and that is not known by the client
6or discoverable by the client through reasonably vigilant observation, except for
7confidential information under sub. (1) (d) and other information the disclosure of
8which is prohibited by law.
SB401, s. 39
9Section
39. 452.133 (2) (c) of the statutes is amended to read:
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452.133
(2) (c)
Fulfill The duty to fulfill any obligation required by the agency
11agreement, and any order of the client that is within the scope of the agency
12agreement, that
are is not inconsistent with another duty that the broker has under
13this chapter or any other law.
SB401, s. 40
14Section
40. 452.133 (2) (d) of the statutes is created to read:
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452.133
(2) (d) The duty to negotiate on behalf of the client.
SB401, s. 41
16Section
41. 452.133 (4) and (5) of the statutes are created to read:
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452.133
(4) Subagent's duties. (a) A subagent owes all persons to whom a
18broker is providing brokerage services in a transaction the duties specified in sub.
19(1) but does not owe the clients of the principal broker the duties under sub. (2).
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(b) A subagent may not do any of the following:
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1. Place the subagent's interests ahead of the interests of the clients of the
22principal broker in the transaction in which the subagent has been engaged by the
23principal broker.
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2. Provide advice or opinions to parties in the transaction if providing the
25advice or opinions is contrary to the interests of the clients of the principal broker in
1the transaction in which the subagent has been engaged by the principal broker,
2unless required by law.
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3(5) Duties without agency or subagency relationship. If a broker is providing
4brokerage services to a person who is a party or a prospective party to a transaction,
5and the broker does not have an agency agreement with the person and is not a
6subagent of another broker in the transaction, then the broker owes the person the
7duties under sub. (1) and may not, unless required by law, provide advice or opinions
8relating to the transaction in which the person is receiving brokerage services if
9providing the advice or opinions is contrary to the interests of a party to a current
10or prospective transaction with the person receiving the brokerage services.
SB401, s. 42
11Section
42. 452.133 (6) of the statutes is created to read:
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452.133
(6) Waiver of duties. The duties imposed by subs. (1), (2) (a), (am), (b),
13and (c), (4), and (5) may not be waived. A client may waive, in part or in full, the
14broker's duty under sub. (2) (d), except that a waiver under this subsection is not
15effective unless the broker provides to the client a written disclosure containing all
16of the following:
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(a) A copy of the text of sub. (2) (d) and s. 452.01 (5m), and a statement that,
18as a consequence of the client's waiver, the broker will have no legal duty to perform
19the duty imposed by sub. (2) (d).
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(b) A statement that as a consequence of the client's waiver, the client may
21require the assistance of an attorney or another service provider to fulfill the client's
22goals and contractual duties in the transaction.
SB401, s. 43
23Section
43. 452.134 of the statutes is created to read:
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24452.134 Agency relationships; multiple representation relationships. 25(1) Agency relationship not required. (a) Subject to par. (b), a broker may provide
1brokerage services to any person in a transaction, whether or not the broker has
2entered into an agency agreement with a party to the transaction or the broker has
3been engaged to provide brokerage services in the transaction as a subagent.
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(b) A broker may not negotiate on behalf of a party to a transaction unless a
5party to the transaction is one of the following:
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1. The broker's client.
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2. A client of a principal broker who has engaged the broker as a subagent.
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8(2) Multiple representation relationships; consent required. A broker may
9not provide brokerage services in a multiple representation relationship unless all
10of the broker's clients in the multiple representation relationship have consented to
11a multiple representation relationship in writing.
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12(3) Designated agency; consent required. (a) A broker in a multiple
13representation relationship may not engage in designated agency unless all of the
14broker's clients in the relationship have consented to designated agency in writing.
15A client may withdraw consent to designated agency by written notice to the broker
16at any time.
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(b) If a broker is engaged in designated agency, the broker's employee who is
18negotiating on behalf of a client of the broker in the transaction may provide to the
19client on whose behalf the employee is negotiating information, opinions, and advice
20to assist the client in the negotiations, whether or not the information, opinions, and
21advice place the interests of one of the broker's clients ahead of the interests of
22another client of the broker.
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23(4) Multiple representations relationship without designated agency. If a
24broker's client in a multiple representation relationship does not consent to
25designated agency or withdraws consent to designated agency, the broker and the
1broker's employees may not place the interests of any client ahead of the interests
2of any other in the negotiations.
SB401, s. 44
3Section
44. 452.135 of the statutes is repealed and recreated to read:
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4452.135 Disclosure of duties. (1) (a) A broker may not negotiate on behalf
5of a party who is not the broker's client unless the broker provides to the party a copy
6of the following written disclosure statement:
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BROKER DISCLOSURE TO CUSTOMERS
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You are a customer of the broker. The broker is either an agent of another party
9in the transaction or a subagent of another broker who is the agent of another party
10in the transaction. The broker, or a salesperson acting on behalf of the broker, may
11provide brokerage services to you. Whenever the broker is providing brokerage
12services to you, the broker owes you, the customer, the following duties:
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The duty to provide brokerage services to you fairly and honestly.
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The duty to exercise reasonable skill and care in providing brokerage services
15to you.
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The duty to provide you with accurate information about market conditions
17within a reasonable time if you request it, unless disclosure of the information is
18prohibited by law.
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The duty to disclose to you in writing certain material adverse facts about a
20property, unless disclosure of the information is prohibited by law.
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The duty to protect your confidentiality. Unless the law requires it, the broker
22will not disclose your confidential information or the confidential information of
23other parties.
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The duty to safeguard trust funds and other property the broker holds.
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1The duty, when negotiating, to present contract proposals in an objective and
2unbiased manner and disclose the advantages and disadvantages of the proposals.
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Please review this information carefully. A broker or salesperson can answer
4your questions about brokerage services, but if you need legal advice, tax advice, or
5a professional home inspection, contact an attorney, tax advisor, or home inspector.
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This disclosure is required by section 452.135 of the Wisconsin statutes and is
7for information only. It is a plain-language summary of a broker's duties to a
8customer under section 452.133 (1) of the Wisconsin statutes.
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(b) If a broker is providing brokerage services as a subagent to a principal
10broker, the broker shall provide a copy of the written disclosure statement under par.
11(a) to any person who is not the principal broker's client and who receives brokerage
12services from the broker within the scope of the agreement between the broker and
13the principal broker.
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14(2) (a) Except as provided in sub. (b), a broker shall provide to a client a copy
15of the following written disclosure statement not later than the time the broker
16enters into an agency agreement with the client:
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BROKER DISCLOSURE TO CLIENTS
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Under Wisconsin law, a broker owes certain duties to all parties to a
19transaction:
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The duty to provide brokerage services to you fairly and honestly.
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The duty to exercise reasonable skill and care in providing brokerage services
22to you.
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The duty to provide you with accurate information about market conditions
24within a reasonable time if you request it, unless disclosure of the information is
25prohibited by law.
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1The duty to disclose to you in writing certain material adverse facts about a
2property, unless disclosure of the information is prohibited by law.
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The duty to protect your confidentiality. Unless the law requires it, the broker
4will not disclose your confidential information or the confidential information of
5other parties.
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The duty to safeguard trust funds and other property the broker holds.
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The duty, when negotiating, to present contract proposals in an objective and
8unbiased manner and disclose the advantages and disadvantages of the proposals.
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Because you have entered into an agency agreement with a broker, you are the
10broker's client. A broker owes additional duties to a client.
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The broker will provide, at your request, information and advice on real estate
12matters that affect your transaction, unless you release the broker from this duty.
13The broker must provide you with all material facts affecting the transaction, not
14just adverse facts.
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The broker will fulfill the broker's obligations under the agency agreement and
16fulfill your lawful requests that are within the scope of the agency agreement.
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The broker will negotiate for you, unless you release the broker from this duty.
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The broker will not place the broker's interests ahead of your interests. The
19broker will not, unless required by law, give information or advice to other parties
20who are not the broker's clients, if giving the information or advice is contrary to your
21interests.
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If you become involved in a transaction in which another party is also the
23broker's client (a "multiple representation relationship"), different duties may apply.
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24Multiple Representation Relationships And Designated
25Agency
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1A multiple representation relationship exists if a broker has an agency
2agreement with more than one client who is a party in the same transaction. In a
3multiple representation relationship, if all of the broker's clients in the transaction
4consent, the broker may provide services to the clients through designated agency.
SB401,18,135
Designated agency means that different salespersons employed by the broker
6will negotiate on behalf of you and the other client or clients in the transaction, and
7the broker's duties will remain the same. Each salesperson will provide information,
8opinions, and advice to the client for whom the salesperson is negotiating, to assist
9the client in the negotiations. Each client will be able to receive information,
10opinions, and advice that will assist the client, even if the information, opinions, or
11advice gives the client advantages in the negotiations over the broker's other clients.
12A salesperson will not reveal any of your confidential information to another party
13unless required to do so by law.
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If a designated agency relationship is not in effect you may authorize or reject
15a multiple representation relationship. If you authorize a multiple representation
16relationship the broker may provide brokerage services to more than one client in a
17transaction but neither the broker nor any of the broker's salespersons may assist
18any client with information, opinions, and advice which may favor the interests of
19one client over any other client. If you do not consent to a multiple representation
20relationship the broker will not be allowed to provide brokerage services to more than
21one client in the transaction.
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INITIAL ONLY ONE OF THE THREE LINES BELOW:
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________I consent to designated agency.
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________I consent to multiple representation relationships, but I do not consent
25to designated agency.
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1________I reject multiple representation relationships.
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NOTE: YOU MAY WITHDRAW YOUR CONSENT TO DESIGNATED
3AGENCY OR TO MULTIPLE REPRESENTATION RELATIONSHIPS BY
4WRITTEN NOTICE TO THE BROKER AT ANY TIME. YOUR BROKER IS
5REQUIRED TO DISCLOSE TO YOU IN YOUR AGENCY AGREEMENT THE
6COMMISSION OR FEES THAT YOU MAY OWE TO YOUR BROKER. IF YOU
7HAVE ANY QUESTIONS ABOUT THE COMMISSION OR FEES THAT YOU MAY
8OWE BASED UPON THE TYPE OF AGENCY RELATIONSHIP YOU SELECT
9WITH YOUR BROKER YOU SHOULD ASK YOUR BROKER BEFORE SIGNING
10THE AGENCY AGREEMENT.
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The broker may, with your authorization in the agency agreement, engage
13other brokers who assist your broker by providing brokerage services for your
14benefit. A subagent will not put the subagent's own interests ahead of your interests.
15A subagent will not, unless required by law, provide advice or opinions to other
16parties if doing so is contrary to your interests.
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Please review this information carefully. A broker or salesperson can answer
18your questions about brokerage services, but if you need legal advice, tax advice, or
19a professional home inspection, contact an attorney, tax advisor, or home inspector.
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This disclosure is required by s. 452.135 of the Wisconsin statutes and is for
21information only. It is a plain-language summary of a broker's duties to you under
22section 452.133 (3) of the Wisconsin statutes.
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(b) If a client enters into an agency agreement with a broker to receive
24brokerage services related to real estate primarily intended for use as a residential
25property containing one to 4 dwelling units, and the written disclosure statement
1under par. (a) is not incorporated into the agency agreement, the broker shall request
2the client's signed acknowledgment that the client has received a copy of the written
3disclosure statement.
SB401, s. 45
4Section
45. 452.137 of the statutes is repealed.
SB401, s. 46
5Section
46. 452.138 of the statutes is amended to read:
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6452.138 Brokers providing services in more than one transaction. A
7broker may provide brokerage services simultaneously to more than one party in
8different transactions unless the broker agrees with a client that the broker is to
9provide brokerage services only to that client. If the broker and a client agree that
10the broker is to provide brokerage services only to that client, the agency agreement
11under s. 452.135 (1) shall contain a statement of that agreement.
SB401, s. 47
12Section
47. 452.139 (1) of the statutes is amended to read:
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452.139
(1) Fiduciary
Common law duties of broker. The duties of a broker
14specified in this chapter or in rules promulgated under this chapter shall supersede
15any fiduciary duties of a broker to a party based on
duties or obligations under 16common law
principles of agency to the extent that those common law
fiduciary 17duties
or obligations are inconsistent with the duties specified in this chapter or in
18rules promulgated under this chapter.
SB401, s. 48
19Section
48. 452.14 (3) (f) of the statutes is amended to read:
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452.14
(3) (f) Accepted from any person except the broker's, salesperson's
, or
21time-share salesperson's employer, if the broker, salesperson
, or time-share
22salesperson is employed as a salesperson or time-share salesperson by a broker, a
23commission or valuable consideration as a salesperson or time-share salesperson for
24the performance of any act specified in this chapter or as compensation for referring
1a person to another broker, salesperson
, or time-share salesperson or to any other
2person in connection with a
real estate transaction;
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(1) The treatment of sections 452.133 (1) (intro.) (a), (b), (c), (d), (e), (f), and (g),
5(2) (intro.), (am), (b), (c), and (d), (4), (5), and (6) and 452.134 of the statutes, the
6renumbering and amendment of section 452.133 (2) (a) of the statutes, and the
7creation of section 452.133 (2) (a) 2. of the statutes first apply to agency agreements
8entered into, modified, or renewed on the effective date of this subsection.