SB375: Bill Text

SB375,34,11 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.

SB375,34,13 The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

SB375,34,16 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.

SB375,34,18 The duty to safeguard trust funds and other property the broker holds held by the firm or its agents.

SB375,34,20 The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

SB375,34,24 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.

SB375,35,3 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.

SB375,35,9 (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.

SB375,35,12 (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:

SB375,35,13 BROKER DISCLOSURE TO CLIENTS

SB375,35,16 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:

SB375,35,17 The duty to provide brokerage services to you fairly and honestly.

SB375,35,19 The duty to exercise reasonable skill and care in providing brokerage services to you.

SB375,35,22 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.

SB375,35,24 The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

SB375,36,3 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.

SB375,36,5 The duty to safeguard trust funds and other property the broker firm or its agents holds.

SB375,36,7 The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

SB375,36,10 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:

SB375,36,14 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.

SB375,36,17 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.

SB375,36,19 The broker firm and its agents will negotiate for you, unless you release the broker them from this duty.

SB375,36,23 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.

SB375,37,3 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.

SB375,37,5 MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY

SB375,37,11 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.

SB375,37,21 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.

SB375,38,6 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.

SB375,38,8 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.

SB375,38,10 INITIAL CHECK ONLY ONE OF THE THREE LINES BELOW:

SB375,38,13 ________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.)

SB375,38,17 ________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.)

SB375,38,19 ________The same firm cannot represent both me and the other party in the same transaction. (I reject multiple representation relationships .)

SB375,39,3 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.

SB375,39,10 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.

SB375,39,11 SUBAGENCY

SB375,39,17 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.

SB375,39,21 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.

SB375,39,24 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.

SB375,40,6 (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.

SB375,104 Section 104. 452.137 (1) (b) of the statutes is repealed.

SB375,105 Section 105. 452.137 (1) (d) of the statutes is repealed.

SB375,106 Section 106. 452.137 (2) (a) 1. of the statutes is amended to read:

SB375,40,13 452.137 (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.

SB375,107 Section 107. 452.137 (2) (a) 2. of the statutes is amended to read:

SB375,40,17 452.137 (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.

SB375,108 Section 108. 452.137 (2) (b) 1. of the statutes is amended to read:

SB375,40,20 452.137 (2) (b) 1. Enter into a listing agreement concerning real estate any property located in this state.

SB375,109 Section 109. 452.137 (2) (b) 2. of the statutes is amended to read:

SB375,40,24 452.137 (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.

SB375,110 Section 110. 452.137 (2) (c) of the statutes is amended to read:

SB375,41,11 452.137 (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.

SB375,111 Section 111. 452.137 (2) (d) of the statutes is amended to read:

SB375,41,17 452.137 (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.

SB375,112 Section 112. 452.137 (2) (e) of the statutes is amended to read:

SB375,41,25 452.137 (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.

SB375,42,5 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.

SB375,113 Section 113. 452.137 (2) (f) of the statutes is amended to read:

SB375,42,9 452.137 (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.

SB375,114 Section 114. 452.137 (2) (g) of the statutes is amended to read:

SB375,42,14 452.137 (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.

SB375,115 Section 115. 452.137 (3) (intro.) of the statutes is amended to read:

SB375,42,18 452.137 (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:

SB375,116 Section 116. 452.137 (3) (c) of the statutes is amended to read:

SB375,42,23 452.137 (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.

SB375,117 Section 117 . 452.137 (3) (c) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

SB375,43,4 452.137 (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.

SB375,118 Section 118. 452.137 (4) (a) of the statutes, as affected by 2015 Wisconsin Act 47, is amended to read:

SB375,43,9 452.137 (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.

SB375,119 Section 119. 452.137 (4) (b) (intro.) of the statutes is amended to read:

SB375,43,13 452.137 (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:

SB375,120 Section 120. 452.137 (4) (b) 1. of the statutes is amended to read:

SB375,43,16 452.137 (4) (b) 1. Establish the terms of cooperation between the out-of state broker, any out-of-state salesperson, and the licensed broker firm.

SB375,121 Section 121. 452.137 (4) (b) 3. of the statutes is amended to read:

SB375,43,21 452.137 (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.

SB375,122 Section 122. 452.138 of the statutes is amended to read:

SB375,44,3 452.138 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.

SB375,123 Section 123. 452.139 (1), (2) and (3) of the statutes are amended to read:

SB375,44,9 452.139 (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.

SB375,44,14 (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.

SB375,44,21 (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.

SB375,45,2 (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.

SB375,45,11 (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.

SB375,124 Section 124. 452.14 (1) of the statutes is amended to read:

SB375,45,17 452.14 (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.

SB375,125 Section 125. 452.14 (2) of the statutes is amended to read:

SB375,45,20 452.14 (2) The board may commence disciplinary proceedings on any matter under investigation concerning a licensee or registrant.

SB375,126 Section 126. 452.14 (3) (intro.) of the statutes is repealed and recreated to read:

SB375,45,25 452.14 (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: