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.
1An Act to renumber
452.01 (2) (h) and 452.137 (1) (c); to renumber and amend
452.06 (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), 4
452.134 (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), 6
452.01 (5e), 452.06 (1) (c), 452.07 (3), 452.133 (3) (d), 452.136, 452.137 (1) (am), 7
452.137 (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
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
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
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
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:
452.01 (2) (a) of the statutes is amended to read:
(a) For another person, and for commission, money, or other thing 3
of value, negotiates or offers or attempts to negotiate, whether directly or indirectly, 4
a sale, exchange, purchase, or rental of, or the granting or acceptance of an option 5
to sell, exchange, purchase, or rent, an interest or estate in real estate, a time share, 6
or a business or its goodwill, inventory, or fixtures, whether or not the business 7
includes real property.
452.01 (2) (d) of the statutes is created to read:
(d) Issues a written report of property value that is prepared for 10
another person and that is not an appraisal, as defined in s. 458.01 (1).
452.01 (2) (h) of the statutes is renumbered 452.01 (2) (c).
452.01 (5e) of the statutes is created to read:
“Listing firm” means a firm that has entered into an agency 14
agreement with a seller or landlord pursuant to which the firm lists property for sale 15
452.01 (5m) (a) of the statutes is amended to read:
(a) Acting, whether directly or indirectly,
as an intermediary by 2
facilitating or participating in communications between parties related to the 3
parties' interests in a transaction. In this paragraph, providing advice or opinions 4
on matters that are material to a transaction in which a person is engaged or intends 5
to engage or showing a party real estate does not, in and of itself, constitute acting 6
as an intermediary by facilitating or participating in communications between 7
452.05 (1) (b) of the statutes is amended to read:
(b) Approve forms for use in real estate practice. The board may 10
conduct public hearings on matters relating to the approval of forms used in real 11
estate 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.
452.06 (1) of the statutes is renumbered 452.06 (1) (a) and amended 16
(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 19
a member of the board, and report to the board.
Any proposed change in a form relating to real estate practice shall be 21
referred to the appropriate
council on forms for review before the form is approved.
452.06 (1) (c) of the statutes is created to read:
(c) The board may direct the council on forms to create or modify a 24
form relating to real estate practice and submit that form to the board for approval.
If the board directs the council to create or modify a form, the board shall establish 2
a deadline for the council to submit the form to the board.
452.07 (3) of the statutes is created to read:
The board may promulgate rules regarding advertising by brokers 5
or salespersons that do not conflict with s. 452.136.
452.133 (title) of the statutes is amended to read:
(title) Duties of licensees
452.133 (3) (d) of the statutes is created to read:
(d) Negotiate the sale, exchange, purchase, or rental of personal 10
property unless related to the transaction. The licensee may use a form approved by 11
the board under s. 452.05 (1) (b) for the conveyance of the seller's interest in the 12
personal property. In this paragraph, “use a form” has the meaning given in s. 452.40 13
452.134 (1) (a) of the statutes is amended to read:
(a) Subject to par. (b), a firm and any licensees associated with the 16
firm may provide brokerage services to any party to a transaction
, whether or not the 17
firm has entered into an agency agreement with a party to the transaction
or the firm 18
has been engaged to provide brokerage services in the transaction
as a subagent.
452.136 of the statutes is created to read:
20452.136 Advertising by licensees.
(1) False advertising.
A licensee may 21
not advertise in a manner that is false, deceptive, or misleading.
22(2) Disclosure of name.
(a) Except for advertisements for the rental of real 23
estate owned by the licensee, a licensee shall in all advertising disclose the firm's 24
name exactly as printed on the license of the licensed individual broker or licensed 25
broker business entity or disclose a trade name previously filed by the firm with the
department and shall in either case clearly indicate that the firm is a business 2
enterprise and not a private party.