SB375: Bill Text

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SB375,104 Section 104. 452.137 (1) (b) of the statutes is repealed.

SB375,105 Section 105. 452.137 (1) (d) of the statutes is repealed.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

SB375,127 Section 127. 452.14 (3) (intro.) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

SB375,46,5 452.14 (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:

SB375,128 Section 128. 452.14 (3) (a) of the statutes is amended to read:

SB375,46,8 452.14 (3) (a) Made a material misstatement in the application for a license or registration, or in any information furnished to the board or department;.

SB375,129 Section 129. 452.14 (3) (b) of the statutes is amended to read:

SB375,46,12 452.14 (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;.

SB375,130 Section 130. 452.14 (3) (c) of the statutes is amended to read:

SB375,46,15 452.14 (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;.

SB375,131 Section 131. 452.14 (3) (d) of the statutes is amended to read:

SB375,46,19 452.14 (3) (d) Pursued a continued and flagrant course of misrepresentation or made false promises through agents or salespersons other licensees or through advertising;.

SB375,132 Section 132. 452.14 (3) (f) of the statutes is amended to read:

SB375,47,3 452.14 (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;.

SB375,133 Section 133. 452.14 (3) (g) of the statutes is amended to read:

SB375,47,6 452.14 (3) (g) Represented or attempted to represent a broker other than the employer, firm without the express knowledge and consent of the employer; firm.

SB375,134 Section 134. 452.14 (3) (h) of the statutes is amended to read:

SB375,47,10 452.14 (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;.

SB375,135 Section 135. 452.14 (3) (i) of the statutes is amended to read:

SB375,47,14 452.14 (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;.

SB375,136 Section 136. 452.14 (3) (j) of the statutes is amended to read:

SB375,47,17 452.14 (3) (j) Paid or offered to pay a commission or valuable consideration to any person for acts or services in violation of this chapter;.

SB375,137 Section 137. 452.14 (3) (jm) of the statutes is amended to read:

SB375,47,23 452.14 (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);.

SB375,138 Section 138. 452.14 (3) (k) of the statutes is amended to read:

SB375,48,3 452.14 (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;.

SB375,139 Section 139. 452.14 (3) (L) of the statutes is amended to read:

SB375,48,6 452.14 (3) (L) Violated any provision of this chapter or any rule promulgated under this chapter;.

SB375,140 Section 140. 452.14 (3) (m) of the statutes is amended to read:

SB375,48,8 452.14 (3) (m) Failed to use forms approved under s. 452.05 (1) (b); or.

SB375,141 Section 141. 452.14 (3) (p) of the statutes is amended to read:

SB375,48,11 452.14 (3) (p) Been convicted of a felony that is a bar to licensure or registration under s. 452.25 (1) (a).

SB375,142 Section 142. 452.14 (4) of the statutes is amended to read:

SB375,48,18 452.14 (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.

SB375,143 Section 143. 452.14 (4m) (intro.) of the statutes is amended to read:

SB375,48,22 452.14 (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:

SB375,144 Section 144. 452.14 (4m) (a) of the statutes is amended to read: