2015 Wisconsin Act 258

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:

258,120 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.

258,121 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.

258,122 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.

258,123 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.

258,124 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.

258,125 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.

258,126 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:

258,127 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:

258,128 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;.

258,129 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;.

258,130 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 ;.

258,131 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;.

258,132 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;.

258,133 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.

258,134 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; .

258,135 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;.

258,136 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;.

258,137 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); .

258,138 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;.

258,139 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;.

258,140 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.

258,141 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).

258,142 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.

258,143 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:

258,144 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).

258,145 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.

258,146 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).

258,147 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.

258,148 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).

258,149 Section 149. 452.17 (2) of the statutes is repealed.

258,150 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.

258,151 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.

258,152 Section 152. 452.19 (title) of the statutes is repealed and recreated to read:

452.19 (title) Fees and commissions.

258,153 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.

258,154 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.

258,155 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.

258,156 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.

258,157 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.