AB534: Bill Text

AB534,10 Section 10 . 452.133 (title) of the statutes is amended to read:

AB534,5,7 452.133 (title) Duties of licensees ; prohibitions.

AB534,11 Section 11. 452.133 (3) (d) of the statutes is created to read:

AB534,5,13 452.133 (3) (d) Negotiate the sale, exchange, purchase, or rental of personal property unless related to the transaction. The licensee may use a form approved by the board under s. 452.05 (1) (b) for the conveyance of the seller's interest in the personal property. In this paragraph, “use a form” has the meaning given in s. 452.40 (1) (a).

AB534,12 Section 12 . 452.134 (1) (a) of the statutes is amended to read:

AB534,5,18 452.134 (1) (a) Subject to par. (b), a firm and any licensees associated with the firm may provide brokerage services to any party to a transaction, whether or not the firm has entered into an agency agreement with a party to the transaction or the firm has been engaged to provide brokerage services in the transaction as a subagent.

AB534,13 Section 13. 452.136 of the statutes is created to read:

AB534,5,21 452.136 Advertising by licensees. (1) False advertising. A licensee may not advertise in a manner that is false, deceptive, or misleading.

AB534,6,2 (2) Disclosure of name. (a) Except for advertisements for the rental of real estate owned by the licensee, a licensee shall in all advertising disclose the firm's name exactly as printed on the license of the licensed individual broker or licensed 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 enterprise and not a private party.

AB534,6,7 (b) Except for advertisements for the rental of real estate owned by the licensee, a licensee associated with a firm shall advertise under the supervision of and in the name of the firm. The firm's name as used in advertising shall be clear and conspicuous. This paragraph does not apply to a licensee engaged in independent practice as provided in s. 452.30 (6).

AB534,6,12 (c) Notwithstanding pars. (a) and (b), a licensee may advertise the occasional sale of real estate owned by the licensee or may engage in the occasional solicitation of real estate for purchase by the licensee without complying with pars. (a) and (b), provided that the licensee clearly identifies himself, herself, or itself as a real estate licensee in the advertisement.

AB534,6,15 (3) Advertising without agency agreement prohibited. A firm and any licensees associated with the firm may not advertise a property unless one of the following applies:

AB534,6,16 (a) The firm is the listing firm for the property.

AB534,6,18 (b) The firm or a licensee associated with the firm has obtained consent to advertise the property from the listing firm for the property.

AB534,6,21 (4) Advertised price. A licensee may not advertise property at a price other than that agreed upon with the owner, except that the price may be stated as a range or in general terms if it reflects the agreed upon price.

AB534,14 Section 14. 452.137 (1) (a) of the statutes is renumbered 452.137 (1) (d) and amended to read:

AB534,7,3 452.137 (1) (d) “Cooperative agreement" means the an agreement established by the board under sub. (4) entered into between an out-of-state broker and a firm as provided in this section.

AB534,15 Section 15. 452.137 (1) (am) of the statutes is created to read:

AB534,7,7 452.137 (1) (am) Notwithstanding s. 452.01 (1m), “agency agreement" includes a written agreement between an out-of-state broker and a client in which the client authorizes the out-of-state broker to provide brokerage services to the client.

AB534,16 Section 16. 452.137 (1) (c) of the statutes is renumbered 452.137 (1) (h).

AB534,17 Section 17. 452.137 (1) (cm) of the statutes is created to read:

AB534,7,12 452.137 (1) (cm) 1. “Commercial transaction” means a transaction concerning any real property, other than real property containing 1 to 4 dwelling units or real property zoned for agricultural use.

AB534,7,15 2. “Commercial transaction” does not include any transaction concerning a dwelling unit that is a part of real property containing more than 4 dwelling units and that is being sold on a unit-by-unit basis.

AB534,18 Section 18. 452.137 (1) (e) of the statutes is created to read:

AB534,7,17 452.137 (1) (e) “Dwelling unit” has the meaning given in s. 440.97 (3).

AB534,19 Section 19. 452.137 (2) (a) (intro.) of the statutes is renumbered 452.137 (2) (a) and amended to read:

AB534,7,21 452.137 (2) (a) Except as provided in par. (b), an An out-of-state broker may act as a broker in this state only as provided in par. (ag) or (am).

AB534,7,23 (ag) An out-of state broker may, subject to par. (b), act as a broker in this state if the out-of-state broker does all of the following:

AB534,20 Section 20. 452.137 (2) (a) 1. of the statutes is renumbered 452.137 (2) (ag) 1. and amended to read:

AB534,8,4 452.137 (2) (ag) 1. Enters into a cooperative agreement with a listing firm and cooperates with the listing firm on the listing agreement that is subject to the cooperative agreement. Each cooperative agreement may cover only one listing agreement.

AB534,21 Section 21. 452.137 (2) (a) 2. of the statutes is renumbered 452.137 (2) (ag) 2. and amended to read:

AB534,8,9 452.137 (2) (ag) 2. Submits to the listing 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.

AB534,22 Section 22. 452.137 (2) (am) of the statutes is created to read:

AB534,8,14 452.137 (2) (am) An out-of-state broker representing a person who is seeking to buy or rent property located in this state in a commercial transaction may, subject to pars. (b) and (bm), act as a broker in this state if the out-of-state broker does all of the following:

AB534,8,18 1. Enters into a cooperative agreement with a firm and cooperates with the firm. Each cooperative agreement shall 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.

AB534,8,20 2. Submits to the 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.

AB534,9,5 3. Either the out-of-state-broker or the firm enters into an agency agreement with the prospective buyer or tenant. The cooperative agreement shall acknowledge whether the out-of-state broker or firm has the agency agreement. If the out-of-state broker has entered into the agency agreement with the prospective buyer or tenant, the out-of-state broker and the prospective buyer or tenant shall, notwithstanding s. 452.01 (3m) and (5w), be considered to be a principal firm and client for purposes of this chapter, and the firm shall be a subagent and shall provide the out-of-state broker with a copy of the disclosure statement under s. 452.135 (2) to be given to the client. The out-of-state broker is not required to request that the client sign the statement.

AB534,23 Section 23. 452.137 (2) (b) 3. of the statutes is created to read:

AB534,9,9 452.137 (2) (b) 3. Enter into a cooperative agreement with a person who is not licensed under this chapter as authority to sell, lease, rent, exchange, or attempt to sell, lease, rent, or exchange property in this state.

AB534,24 Section 24. 452.137 (2) (bm) of the statutes is created to read:

AB534,9,12 452.137 (2) (bm) An out-of-state broker acting under par. (am) may not do any of the following:

AB534,9,15 1. Negotiate with a seller or landlord, unless authorized under the cooperative agreement. If a property is not listed with a listing firm, the firm shall conduct all negotiations with the seller or landlord of that property.

AB534,9,19 2. View or show commercial property in this state for sale or lease without the firm or a licensee associated with the firm being present, unless authorized under the cooperative agreement. If a property is not listed with a listing firm, the firm shall view or show the property with the out-of-state broker.

AB534,9,21 3. Have contact with another firm or another firm's seller or landlord, unless otherwise agreed to in the cooperative agreement.

AB534,25 Section 25 . 452.137 (2) (c) of the statutes is amended to read:

AB534,9,25 452.137 (2) (c) An out-of-state broker who is a party to a cooperative agreement with a firm, and any out-of-state salesperson of the out-of-state broker, are not required to be licensed under this chapter but shall otherwise be treated as licensees for purposes of this chapter and shall comply with the laws of this state as they apply to licensees, 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.

AB534,26 Section 26. 452.137 (4) (a) of the statutes is amended to read:

AB534,10,13 452.137 (4) (a) The board shall establish a form one or more forms to be used for a cooperative agreement agreements under this section, which shall include any required terms for such an agreement.

AB534,27 Section 27. 452.137 (4) (b) (intro.) of the statutes is amended to read:

AB534,10,17 452.137 (4) (b) (intro.) A cooperative agreement may be entered into only through the use of the a form established by the board under par. (a) and shall do at least all of the following:

AB534,28 Section 28. 452.137 (4) (c) of the statutes is created to read:

AB534,10,22 452.137 (4) (c) A cooperative agreement under sub. (2) (am) shall describe the type, function, location, approximate size, and functional or geographic limitations of the property being sought. A separate cooperative agreement shall be entered into for each type of property.

AB534,29 Section 29. 452.14 (3) (p) of the statutes is repealed and recreated to read:

AB534,10,25 452.14 (3) (p) Subject to ss. 111.321, 111.322, and 111.335, been convicted of an offense the circumstances of which substantially relate to real estate practice.

AB534,30 Section 30. 452.25 (1) (a) of the statutes is amended to read:

AB534,11,4 452.25 (1) (a) Notwithstanding ss. 111.321, 111.322, and 111.335, and except as provided in pars. (b) to (e), no applicant who is an individual may be issued a an initial broker's or salesperson's license if the applicant has been convicted of a felony.

AB534,31 Section 31. 452.25 (1) (f) of the statutes is created to read:

AB534,11,6 452.25 (1) (f) This subsection does not apply to the renewal of a license.

AB534,32 Section 32 . Effective dates. This act takes effect on the day after publication, except as follows:

AB534,11,12 (1) The treatment of section 452.137 (1) (a), (am), (c), (cm), and (e), (2) (a) (intro.), 1., and 2., (am), (b) 3., (bm), and (c), and (4) (a), (b) (intro.), and (c) of the statutes takes effect on March 1, 2018, or on the day after publication, whichever is later.

AB534,11,13 (End)