LRB-3914/1
MED:emw
2017 - 2018 LEGISLATURE
October 12, 2017 - Introduced by Representatives Allen, Gannon, Jagler and R.
Brooks
, cosponsored by Senator Lasee. Referred to Committee on Housing
and Real Estate.
AB534,1,10 1An Act to renumber 452.01 (2) (h) and 452.137 (1) (c); to renumber and amend
2452.06 (1), 452.137 (1) (a), 452.137 (2) (a) (intro.), 452.137 (2) (a) 1. and 452.137
3(2) (a) 2.; to amend 452.01 (2) (a), 452.01 (5m) (a), 452.05 (1) (b), 452.133 (title),
4452.134 (1) (a), 452.137 (2) (c), 452.137 (4) (a), 452.137 (4) (b) (intro.) and 452.25
5(1) (a); to repeal and recreate 452.14 (3) (p); and to create 452.01 (2) (d),
6452.01 (5e), 452.06 (1) (c), 452.07 (3), 452.133 (3) (d), 452.136, 452.137 (1) (am),
7452.137 (1) (cm), 452.137 (1) (e), 452.137 (2) (am), 452.137 (2) (b) 3., 452.137 (2)
8(bm), 452.137 (4) (c) and 452.25 (1) (f) of the statutes; relating to: various
9changes regarding the laws governing real estate practice and the licensure of
10real estate brokers and salespersons and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Current law regulates the practice of real estate, which can only be practiced
by real estate brokers and real estate salespersons. Real estate brokers and
salespersons (licensees) are licensed by the Real Estate Examining Board, which is
attached to the Department of Safety and Professional Services. A real estate
broker's license may be issued to either an individual or a business entity. This bill

makes various changes to real estate practice law, described in further detail as
follows:
Cooperative agreements with out-of-state brokers
Generally, under current law, no person may act as a real estate broker in this
state unless he or she is licensed as a broker or salesperson by the board. Current
law, however, includes an exception to this requirement for a real estate broker who
is licensed in another state (out-of-state broker) and is a party to a cooperative
agreement with a real estate firm licensed in this state, subject to certain
requirements and prohibitions. The bill makes a number of changes and
clarifications to the provisions regarding cooperative agreements with out-of-state
brokers, including:
1. The bill clarifies the provisions in current law to provide that an out-of-state
broker may only enter into a cooperative agreement with a firm that is listing
property for sale or lease.
2. In addition to the provisions in current law that allow cooperative
agreements with listing firms, the bill also allows an out-of-state broker
representing a person who is seeking to buy or rent property located in this state in
a commercial transaction, as defined in the bill, to enter into a cooperative agreement
with a real estate firm licensed in this state. Each such cooperative agreement must
be limited to a type of property, type of function, geographic area, or other criteria
specified in the buyer's or tenant's search parameters, and out-of-state brokers who
enter into such cooperative agreements are subject to various requirements and
prohibitions.
Criminal convictions and licenses
Current law prohibits an applicant from being issued a broker's or salesperson's
license from the board if the applicant has been convicted of a felony unless certain
conditions have been met, including that three years have have elapsed since the
date on which the confinement portion of the applicant's sentence was completed or
the applicant was released. The bill limits the provision described above regarding
felony convictions so that it only disqualifies an individual from being granted an
initial license by the board, and does not prohibit an individual from renewing a
license previously granted.
Current law also allows the board to revoke, suspend, or limit the license of any
licensee, or reprimand the licensee, if it finds that the licensee has been convicted of
a felony described above. The bill instead provides that the board may revoke,
suspend, or limit the license of any licensee, or reprimand the licensee if the licensee
has been convicted of an offense the circumstances of which substantially relate to
real estate practice, consistent with the Fair Employment Law, which generally
prohibits an agency from refusing to license an individual because the individual has
been convicted of a crime unless he or she has been convicted of an offense the
circumstances of which substantially relate to the circumstances of the particular
licensed activity.
Other changes
The bill makes various other changes regarding real estate practice, including:

1. The bill explicitly prohibits a licensee from negotiating the sale, exchange,
purchase, or rental of personal property (i.e., property other than real estate) unless
related to a transaction, as defined under current law.
2. The bill creates statutory provisions to govern the practice of advertising by
licensees, including provisions governing when a licensee may advertise property.
3. The bill makes a number of changes to certain definitions in the real estate
practice law that are used to define the extent of regulated practices and conduct.
4. The bill makes various changes regarding the approval by the board of forms
used in real estate practice and the creation of councils to assist the board in
performing that function.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB534,1 1Section 1. 452.01 (2) (a) of the statutes is amended to read:
AB534,3,72 452.01 (2) (a) For another person, and for commission, money, or other thing
3of value, negotiates or offers or attempts to negotiate, whether directly or indirectly,
4a sale, exchange, purchase, or rental of, or the granting or acceptance of an option
5to sell, exchange, purchase, or rent, an interest or estate in real estate, a time share,
6or a business or its goodwill, inventory, or fixtures, whether or not the business
7includes real property.
AB534,2 8Section 2. 452.01 (2) (d) of the statutes is created to read:
AB534,3,109 452.01 (2) (d) Issues a written report of property value that is prepared for
10another person and that is not an appraisal, as defined in s. 458.01 (1).
AB534,3 11Section 3. 452.01 (2) (h) of the statutes is renumbered 452.01 (2) (c).
AB534,4 12Section 4. 452.01 (5e) of the statutes is created to read:
AB534,3,1513 452.01 (5e) “Listing firm” means a firm that has entered into an agency
14agreement with a seller or landlord pursuant to which the firm lists property for sale
15or lease.
AB534,5 16Section 5. 452.01 (5m) (a) of the statutes is amended to read:
AB534,4,7
1452.01 (5m) (a) Acting, whether directly or indirectly, as an intermediary by
2facilitating or participating in communications between parties related to the
3parties' interests in a transaction. In this paragraph, providing advice or opinions
4on matters that are material to a transaction in which a person is engaged or intends
5to engage or showing a party real estate does not, in and of itself, constitute acting
6as an intermediary by facilitating or participating in communications between
7parties.
AB534,6 8Section 6. 452.05 (1) (b) of the statutes is amended to read:
AB534,4,149 452.05 (1) (b) Approve forms for use in real estate practice. The board may
10conduct public hearings on matters relating to the approval of forms used in real
11estate practice. The board may also solicit comments relating to forms used in real
12estate practice from the council on forms created under s. 452.06 (1) (a) or from a
13professional trade association whose members consist primarily of licensees actively
14engaged in real estate practice.
AB534,7 15Section 7. 452.06 (1) of the statutes is renumbered 452.06 (1) (a) and amended
16to read:
AB534,4,1917 452.06 (1) (a) The board shall create one or more councils a council on forms
18which that shall meet on a regular basis when directed by the board, be chaired by
19a member of the board, and report to the board.
AB534,4,21 20(b) Any proposed change in a form relating to real estate practice shall be
21referred to the appropriate council on forms for review before the form is approved.
AB534,8 22Section 8. 452.06 (1) (c) of the statutes is created to read:
AB534,5,223 452.06 (1) (c) The board may direct the council on forms to create or modify a
24form relating to real estate practice and submit that form to the board for approval.

1If the board directs the council to create or modify a form, the board shall establish
2a deadline for the council to submit the form to the board.
AB534,9 3Section 9. 452.07 (3) of the statutes is created to read:
AB534,5,54 452.07 (3) The board may promulgate rules regarding advertising by brokers
5or salespersons that do not conflict with s. 452.136.
AB534,10 6Section 10. 452.133 (title) of the statutes is amended to read:
AB534,5,7 7452.133 (title) Duties of licensees ; prohibitions.
AB534,11 8Section 11. 452.133 (3) (d) of the statutes is created to read:
AB534,5,139 452.133 (3) (d) Negotiate the sale, exchange, purchase, or rental of personal
10property unless related to the transaction. The licensee may use a form approved by
11the board under s. 452.05 (1) (b) for the conveyance of the seller's interest in the
12personal property. In this paragraph, “use a form” has the meaning given in s. 452.40
13(1) (a).
AB534,12 14Section 12. 452.134 (1) (a) of the statutes is amended to read:
AB534,5,1815 452.134 (1) (a) Subject to par. (b), a firm and any licensees associated with the
16firm may provide brokerage services to any party to a transaction, whether or not the
17firm has entered into an agency agreement with a party to the transaction or the firm
18has been engaged to provide brokerage services in the transaction as a subagent.
AB534,13 19Section 13. 452.136 of the statutes is created to read:
AB534,5,21 20452.136 Advertising by licensees. (1) False advertising. A licensee may
21not advertise in a manner that is false, deceptive, or misleading.
AB534,6,2 22(2) Disclosure of name. (a) Except for advertisements for the rental of real
23estate owned by the licensee, a licensee shall in all advertising disclose the firm's
24name exactly as printed on the license of the licensed individual broker or licensed
25broker business entity or disclose a trade name previously filed by the firm with the

1department and shall in either case clearly indicate that the firm is a business
2enterprise and not a private party.
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