SB375,23,1716 452.13 (2) (c) A broker firm shall deposit all client funds in the interest-bearing
17common trust account.
SB375,82 18Section 82. 452.13 (2) (e) (intro.) of the statutes is amended to read:
SB375,23,2019 452.13 (2) (e) (intro.) For each interest-bearing common trust account, the
20broker firm shall direct the depository institution to do all of the following:
SB375,83 21Section 83. 452.13 (2) (e) 2. of the statutes is amended to read:
SB375,24,222 452.13 (2) (e) 2. When the interest remittance is sent, furnish to the
23department of administration and to the broker firm maintaining the
24interest-bearing common trust account a statement that includes the name of the
25broker firm for whose account the remittance is made, the rate of interest applied,

1the amount of service charges or fees deducted, if any, and the account balance for
2the period that the statement covers.
SB375,84 3Section 84. 452.13 (2) (f) 1. of the statutes is amended to read:
SB375,24,74 452.13 (2) (f) 1. May not assess a service charge or fee that is due on an
5interest-bearing common trust account against any broker firm or, except as
6provided in subd. 3., against any other account, regardless of whether the same
7broker firm maintains the other account.
SB375,85 8Section 85. 452.13 (3) of the statutes is amended to read:
SB375,24,169 452.13 (3) Deposit provisions. A broker who firm that deposits client funds in
10an interest-bearing common trust account in compliance with this section may not
11be held liable to the owner or beneficial owner of the client funds for damages due
12to compliance with this section. A broker, salesperson or time-share salesperson
13who
licensee that deposits client funds in an interest-bearing common trust account
14in compliance with this section on behalf of a firm is not required to disclose
15alternative depository arrangements that could be made by the parties or to disclose
16that a deposit will be made under this section.
SB375,86 17Section 86. 452.13 (4) of the statutes is amended to read:
SB375,24,1918 452.13 (4) Trust account optional. This section does not require a broker firm
19to hold client funds or require a person to transfer client funds to a broker firm.
SB375,87 20Section 87. 452.13 (5) of the statutes is amended to read:
SB375,24,2321 452.13 (5) Rules. In consultation with the department of safety and
22professional services
, the department of administration shall promulgate rules
23necessary to administer this section.
SB375,88 24Section 88. 452.132 of the statutes is created to read:
SB375,25,3
1452.132 Responsibilities of firms and licensees. (1) A firm shall supervise
2the brokerage service activities of each licensee associated with the firm, including
3by doing all of the following:
SB375,25,44 (a) Ensuring that a supervising broker for the firm complies with sub. (4).
SB375,25,65 (b) Providing a licensee with reasonable access to a supervising broker for the
6purpose of consultation regarding real estate practice issues.
SB375,25,7 7(2) A firm shall do all of the following:
SB375,25,118 (a) Provide each licensee associated with the firm with a written statement of
9the procedures under which the firm and licensees associated with the firm must
10operate with respect to handling leases, agency agreements, offers to purchase, and
11other documents and records relating to transactions.
SB375,25,1412 (b) Notify each licensee associated with the firm where a copy of the rules
13promulgated by the board related to the conduct, ethical practices, and
14responsibilities of licensees may be obtained.
SB375,25,1715 (c) Before a licensee becomes associated with the firm and at the beginning of
16each biennial licensure period, ensure that the licensee holds a valid license or
17registration.
SB375,25,19 18(3) A firm shall be responsible for the custody and safety of all documents and
19records relating to transactions submitted to the firm as required under sub. (6) (b).
SB375,25,22 20(4) (a) A supervising broker for a firm, as determined under sub. (5), shall
21review all of the following prior to the closing of a transaction in accordance with par.
22(b):
SB375,26,223 1. All agency agreements, offers to purchase, leases, and other documents that
24are executed by the parties and records relating to the transaction that are used by

1a licensee associated with the firm and submitted to the firm as required under sub.
2(6) (b).
SB375,26,33 2. All trust account records relating to the transaction.
SB375,26,114 (b) The review under par. (a) shall be limited to confirming that a written
5disclosure statement to a customer or client has been provided by a licensee
6associated with the firm in accordance with s. 452.135, confirming that any
7applicable form approved by the board has been used and the forms have been
8completed by filling in the blanks in a manner consistent with the structure of the
9form, and communicating to the licensee any errors in how the forms were completed
10that are apparent on the face of the document and known to the person reviewing the
11document.
SB375,26,14 12(5) (a) A firm that is a licensed broker business entity shall delegate the
13performance of the duty to supervise licensees associated with the firm to a
14supervising broker who is a licensed individual broker.
SB375,26,1815 (b) A firm that is not a licensed broker business entity may delegate the duty
16to supervise licensees associated with the firm to a supervising broker who is a
17licensed individual broker, but in the absence of a specific supervising broker
18delegation, the firm itself is deemed to be the supervising broker for that firm.
SB375,26,2119 (c) A delegation under par. (a) or (b) shall be written and signed by or on behalf
20of the delegating firm, identify the duty delegated, and be signed by the broker to
21whom the delegation is made.
SB375,26,2322 (d) A firm may delegate the duty to supervise licensees to more than one
23supervising broker.
SB375,27,2 24(6) (a) A licensee associated with a firm shall be responsible for discussing with
25the party with whom the licensee is working with or representing any error

1communicated to the licensee as provided in sub. (4) (b), and the party shall
2determine whether to request any changes to address the error.
SB375,27,63 (b) A licensee associated with a firm shall submit to the firm in a timely manner
4all agency agreements, offers to purchase, leases, and other documents that are
5executed by the parties and records related to the brokerage services provided on
6behalf of the firm and transactions that are used or received by the licensee.
SB375,89 7Section 89. 452.132 (2) (c) of the statutes, as created by 2015 Wisconsin Act
8.... (this act), is amended to read:
SB375,27,119 452.132 (2) (c) Before a licensee becomes associated with the firm and at the
10beginning of each biennial licensure period, ensure that the licensee holds a valid
11license or registration.
SB375,90 12Section 90. 452.133 (title) of the statutes is amended to read:
SB375,27,13 13452.133 (title) Duties of brokers licensees.
SB375,91 14Section 91. 452.133 (1) (intro.), (c), (d), (e), (f) and (g) of the statutes are
15amended to read:
SB375,27,1816 452.133 (1) Broker's duties Duties to all persons in parties to a transaction.
17(intro.) A broker who is firm providing brokerage services to a person in party to a
18transaction owes all of the following duties to the person party:
SB375,27,2219 (c) The duty to timely disclose in writing all material adverse facts that the
20broker firm knows and that the person party does not know or cannot discover
21through reasonably vigilant observation, unless the disclosure of a material adverse
22fact is prohibited by law.
SB375,28,523 (d) The duty to keep confidential any information given to the broker firm in
24confidence, or any information obtained by the broker firm that he or she the firm
25knows a reasonable person would want to be kept confidential, unless the

1information must be disclosed by law or the person whose interests may be adversely
2affected by the disclosure specifically authorizes the disclosure of particular
3information. A broker The firm shall continue to keep the information confidential
4after the transaction is complete and after the broker firm is no longer providing
5brokerage services to the person party.
SB375,28,96 (e) The duty to provide accurate information about market conditions that
7affect the person's transaction, within a reasonable time after the person's a request
8for such information by the party, unless disclosure of the information is prohibited
9by law.
SB375,28,1110 (f) The duty to safeguard trust funds and other property held by the broker as
11required by rules promulgated by the department under s. 452.13 (5).
SB375,28,1412 (g) When the broker firm is negotiating on behalf of a party, the duty to present
13contract proposals in an objective and unbiased manner and disclose the advantages
14and disadvantages of the proposals.
SB375,92 15Section 92. 452.133 (2) (intro.), (a) 1. and 2., (b) and (c) of the statutes are
16amended to read:
SB375,28,2017 452.133 (2) Broker's duties to a client Duties to clients. (intro.) A broker
18firm providing brokerage services to his or her a client owes the client the duties that
19the broker firm owes to a person party under sub. (1) and all of the following
20additional duties:
SB375,28,2121 (a) 1. Placing the client's interests ahead of the broker's interests of the firm.
SB375,29,222 2. Placing the client's interests ahead of the interests of persons in the
23transaction who are not the broker's firm's clients by not disclosing to persons in the
24transaction other than the broker's firm's clients information or advice the disclosure

1of which is contrary to the interests of a client of the broker firm, unless the disclosure
2is required by law.
SB375,29,73 (b) The duty to disclose to the client all information known by the broker firm
4that is material to the transaction and that is not known by the client or discoverable
5by the client through reasonably vigilant observation, except for confidential
6information under sub. (1) (d) and other information the disclosure of which is
7prohibited by law.
SB375,29,118 (c) The duty to fulfill any obligation required by the agency agreement, and any
9order of the client that is within the scope of the agency agreement, that is not
10inconsistent with another duty that the broker firm has under this chapter or any
11other law.
SB375,93 12Section 93. 452.133 (3) of the statutes is amended to read:
SB375,29,1413 452.133 (3) Prohibited conduct. In providing brokerage services, a broker
14licensee may not do any of the following:
SB375,29,1715 (a) Accept any fee or compensation related to the transaction from any person
16other than the broker's licensee's client, unless the broker has principal firm, or firm,
17without
the prior written consent of all parties to the transaction.
SB375,29,2418 (b) Act in a transaction on the broker's licensee's own behalf, on behalf of the
19broker's licensee's immediate family if the firm is an individual, on behalf of the
20licensee's firm
, or on behalf of any organization or business entity in which the broker
21licensee has an interest, unless without the broker has the prior written consent of
22all parties to the transaction. For the purpose of complying with this paragraph, a
23licensee shall obtain the written consent in the offer to purchase, option, lease, or
24other transaction contract.
SB375,30,6
1(c) Except as provided in s. 452.19 (1), refer, recommend, or suggest to a party
2to the transaction the services of an individual or entity from which the broker
3licensee may receive compensation for a referral or in which the broker licensee has
4an interest, unless the broker licensee has disclosed in writing the fact that he or she
5the licensee may receive compensation or has disclosed his or her in writing an
6interest in the individual or entity providing the services.
SB375,94 7Section 94. 452.133 (4) (a) and (b) 1. and 2. of the statutes are amended to read:
SB375,30,108 452.133 (4) (a) A subagent owes all persons parties to whom a broker the
9subagent
is providing brokerage services in a transaction the duties specified in sub.
10(1) but does not owe the clients of the principal broker firm the duties under sub. (2).
SB375,30,1311 (b) 1. Place the subagent's interests ahead of the interests of the clients of the
12principal broker firm in the transaction in which the subagent has been engaged by
13the principal broker firm.
SB375,30,1714 2. Provide advice or opinions to parties in the transaction if providing the
15advice or opinions is contrary to the interests of the clients of the principal broker
16firm in the transaction in which the subagent has been engaged by the principal
17broker firm, unless required by law.
SB375,95 18Section 95. 452.133 (4m) of the statutes is created to read:
SB375,30,2219 452.133 (4m) Duties and prohibitions; application to licensees. (a) A firm's
20duties under sub. (1) extend to each licensee associated with that firm, and each
21licensee associated with a firm owes the same duties to a party that the firm owes
22to that party under sub. (1).
SB375,31,223 (b) Except as provided in s. 452.134 (3) (b), a firm's duties under sub. (2) extend
24to each licensee associated with that firm, and each licensee associated with a firm

1owes the same duties to a client of the firm that the firm owes to that client under
2sub. (2).
SB375,31,53 (c) 1. A subagent's duties under sub. (4) (a) extend to each licensee associated
4with that subagent, and each licensee associated with a subagent owes the same
5duties to a party that the subagent owes to that party under sub. (4) (a).
SB375,31,86 2. The prohibitions that apply to a subagent under sub. (4) (b) extend to each
7licensee associated with that subagent, and no licensee associated with a subagent
8may take any action that the subagent is prohibited from taking under sub. (4) (b).
SB375,96 9Section 96. 452.133 (5) of the statutes is amended to read:
SB375,31,1910 452.133 (5) Duties without agency or subagency relationship. If a broker
11firm is providing brokerage services to a person who is a party or a prospective party
12to a current or prospective transaction, and the broker firm does not have an agency
13agreement with the person and is not a subagent of another broker firm in the
14transaction, then the broker owes firm and any licensees associated with the firm
15owe
the person the duties under sub. (1) and may not, unless required by law, provide
16advice or opinions relating to the transaction in which the person is receiving
17brokerage services if providing the advice or opinions is contrary to the interests of
18a party to a current or prospective transaction with the person receiving the
19brokerage services.
SB375,97 20Section 97. 452.133 (6) (intro.) and (a) of the statutes are amended to read:
SB375,31,2521 452.133 (6) Waiver of duties. (intro.) The duties imposed by subs. (1), (2) (a),
22(am), (b), and (c), (4), and (5) may not be waived. A client may waive, in part or in
23full, the broker's duty under sub. (2) (d), except that a waiver under this subsection
24is not effective unless the broker firm or a licensee associated with the firm provides
25to the client a written disclosure containing all of the following:
SB375,32,3
1(a) A copy of the text of sub. (2) (d) and s. 452.01 (5m), and a statement that,
2as a consequence of the client's waiver, the broker firm and any licensees associated
3with the firm
will have no legal duty to perform the duty imposed by sub. (2) (d).
SB375,98 4Section 98. 452.134 (1) (a) of the statutes is amended to read:
SB375,32,95 452.134 (1) (a) Subject to par. (b), a broker firm and any licensees associated
6with the firm
may provide brokerage services to any person in party to a transaction,
7whether or not the broker firm has entered into an agency agreement with a party
8to the transaction or the broker firm has been engaged to provide brokerage services
9in the transaction as a subagent.
SB375,99 10Section 99. 452.134 (1) (b) of the statutes is amended to read:
SB375,32,1311 452.134 (1) (b) A broker firm and any licensees associated with the firm may
12not negotiate on behalf of a party to a transaction unless a party to the transaction
13is one of the following:
SB375,32,1414 1. The broker's firm's client.
SB375,32,1615 2. A client of a principal broker firm who has engaged the broker firm as a
16subagent.
SB375,100 17Section 100. 452.134 (2) of the statutes is amended to read:
SB375,32,2218 452.134 (2) Multiple representation relationships; consent required. A
19broker firm and any licensees associated with the firm may not provide brokerage
20services in a multiple representation relationship unless all of the broker's firm's
21clients in the multiple representation relationship have consented to a multiple
22representation relationship in writing.
SB375,101 23Section 101. 452.134 (3) of the statutes is amended to read:
SB375,33,324 452.134 (3) Designated agency; consent required. (a) A broker firm in a
25multiple representation relationship may not engage in designated agency unless all

1of the broker's firm's clients in the relationship have consented to designated agency
2in writing. A client may withdraw consent to designated agency by written notice
3to the broker firm at any time.
SB375,33,104 (b) If a broker firm is engaged in designated agency, the broker's employee who
5licensee associated with the firm that is negotiating on behalf of a client of the broker
6firm in the transaction may provide to the client on whose behalf the employee
7licensee is negotiating information, opinions, and advice to assist the client in the
8negotiations, whether or not the information, opinions, and advice place the interests
9of one of the broker's firm's clients ahead of the interests of another client of the
10broker firm.
SB375,102 11Section 102. 452.134 (4) of the statutes is amended to read:
SB375,33,1712 452.134 (4) Multiple representations relationship representation
13relationships
without designated agency. If a broker's firm's client in a multiple
14representation relationship does not consent to designated agency or withdraws
15consent to designated agency, the broker firm and the broker's employees any
16licensees associated with the firm
may not place the interests of any client ahead of
17the interests of any other in the negotiations.
SB375,103 18Section 103. 452.135 (1) and (2) of the statutes are amended to read:
SB375,33,2219 452.135 (1) (a) A broker No firm, and no licensee associated with a firm, may
20not negotiate on behalf of a party who is not the broker's firm's client unless the
21broker firm, or a licensee associated with the firm, provides to the party a copy of the
22following written disclosure statement:
SB375,33,23 23BROKER DISCLOSURE TO CUSTOMERS
SB375,34,524 You are a customer of the broker brokerage firm (hereinafter firm). The broker
25firm is either an agent of another party in the transaction or a subagent of another

1broker who firm that is the agent of another party in the transaction. The A broker,
2or a salesperson acting on behalf of the broker, firm may provide brokerage services
3to you. Whenever the broker firm is providing brokerage services to you, the broker
4owes
firm and its brokers and salespersons (hereinafter agents) owes you, the
5customer, the following duties:
SB375,34,66 The duty to provide brokerage services to you fairly and honestly.
SB375,34,87 The duty to exercise reasonable skill and care in providing brokerage services
8to you.
SB375,34,119 The duty to provide you with accurate information about market conditions
10within a reasonable time if you request it, unless disclosure of the information is
11prohibited by law.
SB375,34,1312 The duty to disclose to you in writing certain material adverse facts about a
13property, unless disclosure of the information is prohibited by law.
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