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Register April 2012 No. 676
Chapter REEB 24
CONDUCT AND ETHICAL PRACTICES FOR REAL ESTATE LICENSEES
REEB 24.01 Authority and intent.
REEB 24.02 Definitions.
REEB 24.03 Competent services.
REEB 24.04 Advertising.
REEB 24.05 Disclosure of compensation and interests.
REEB 24.06 Unauthorized practice of law.
REEB 24.07 Inspection and disclosure duties.
REEB 24.075 Tie-in arrangements.
REEB 24.08 Agreements to be in writing.
REEB 24.085 False portrayal of interest, prohibited.
REEB 24.09 Securing agency agreements.
REEB 24.10 Net listing prohibited.
REEB 24.12 Confidentiality of offers.
REEB 24.13 Drafting and submission of written proposals.
REEB 24.15 Adequate funds required.
REEB 24.16 Availability of rules.
REEB 24.17 Miscellaneous requirements.
Ch. REEB 24 Note Note: Chapter REB 15 as it existed on February 29, 1980 was repealed and a new chapter REB 15 was created effective March 1, 1980. Renumbered from chapter REB 15, effective March 1, 1983. Chapter RL 24 was renumbered chapter REEB 24 under s. 13.92 (4) (b) 1., Stats., Register November 2011 No. 671.
REEB 24.01 REEB 24.01 Authority and intent.
REEB 24.01(1) (1) The rules in this chapter are adopted pursuant to ss. 227.11, 452.01, 452.07, 452.133, 452.138, 452.139 and 452.14, Stats.
REEB 24.01(2) (2) The intent of the board in adopting the rules in this chapter is to establish minimum standards of conduct for real estate licensees and to define that conduct which may result in board discipline pursuant to s. 452.14, Stats.
REEB 24.01(3) (3) If a licensee violates rules in this chapter, the licensee has demonstrated incompetency to act as a broker, salesperson or time-share salesperson in such manner as to safeguard the interests of the public under s. 452.14 (3) (i), Stats. However, the term "incompetency" is not limited in its meaning to violations of this chapter.
REEB 24.01(4) (4) If a licensee violates the rules set forth in s. REEB 24.075, the licensee has engaged in improper, fraudulent or dishonest dealing as used in s. 452.14 (3) (k), Stats. However, the terms "improper, fraudulent or dishonest dealing" are not limited in their meaning to violations of s. REEB 24.075.
REEB 24.01 History History: Cr. Register, February, 1980, No. 290, eff. 3-1-80; renum. (3) to be (5), (3) renum. from REB 15.02 (2) and cr. (4), Register, December, 1980, No. 300, eff. 1-1-81; renum. from REB 15.01 and am. (2) to (4), Register, February, 1983, No. 326, eff. 3-1-83; am. (1) and (3), r. (5) (intro.) and (d), renum. (5) (a) to (c) to be RL 24.025, RL 24.03 (2) (b) and (c), Register, January, 1987, No. 373, eff. 2-1-87; correction in (4) made under s. 13.93 (2m) (b) 4., Stats., Register, May, 1988, No. 389; am. Register, April, 1995, No. 472, eff. 5-1-95; correction in (2), (4) made under s. 13.92 (4) (b) 6., 7., Stats., Register November 2011 No. 671.
REEB 24.02 REEB 24.02 Definitions.
REEB 24.02(1)(1) "Adverse fact" means any of the following:
REEB 24.02(1)(a) (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following:
REEB 24.02(1)(a)1. 1. Significantly and adversely affecting the value of the property.
REEB 24.02(1)(a)2. 2. Significantly reducing the structural integrity of improvements to real estate.
REEB 24.02(1)(a)3. 3. Presenting a significant health risk to occupants of the property.
REEB 24.02(1)(b) (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction.
REEB 24.02(2) (2) "Agency agreement" means a written agreement between a broker and a client in which the client authorizes the broker to provide brokerage services to the client.
REEB 24.02(3) (3) "Brokerage service" means any service described under s. 452.01 (2), Stats., provided by a broker to another person.
REEB 24.02(4) (4) "Builder" means any person engaged in the business of constructing homes without a buyer under contract or constructing homes under a contract with the buyer.
REEB 24.02(5) (5) "Buyer's broker" means a licensee who has an agency agreement with a buyer.
REEB 24.02(6) (6) "Client" means a party to a transaction who has an agency agreement with a broker for brokerage services.
REEB 24.02(7) (7) "Commonly controlled corporation" means one of 2 or more corporations in which the same person or persons own stock in each of the corporations, possessing at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporations.
REEB 24.02(9) (9) "Customer" means a party to a transaction who is provided brokerage services by a broker but who is not a client.
REEB 24.02(10) (10) "Effectively controlled" means having the power or authority to cause the transfer of an interest in real estate for oneself or another but does not include the authority conferred by a real estate listing contract.
REEB 24.02(12) (12) "Material adverse fact" means an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement.
REEB 24.02(13) (13) "Party" means a person seeking to engage in a transaction.
REEB 24.02(13m) (13m) "Principal broker" means a broker who engages a subagent to provide brokerage services in a transaction.
REEB 24.02(14) (14) "Qualified third party" means a federal, state or local governmental agency, or any person whom the broker, salesperson or a party to the real estate transaction reasonably believes has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to prepare the written report described in s. 452.23 (2) (b), Stats.
REEB 24.02(15) (15) "Secured lender" means an individual or organization originating a loan in a real estate or business opportunity transaction secured by real estate or by the assets of a business or a business opportunity.
REEB 24.02(16) (16) "Real estate practice" means engaging in conduct which requires a license under ch. 452, Stats.
REEB 24.02(18) (18) "Transaction" means the sale, exchange, purchase or rental of, or the granting or acceptance of an option to sell, exchange, purchase or rent, an interest in real estate, a business or a business opportunity.
REEB 24.02(19) (19) "Written proposal" means any written document provided by one party to another during the course of a transaction, including but not limited to notices, offers, counteroffers, options, exchanges, rental agreements, and amendments.
REEB 24.02 History History: Cr. Register, February, 1980, No. 290, eff. 3-1-80; renum. (1) to be (5), renum. (2) to be REB 15.01 (3), cr. (1) to (4) and (6), Register, December, 1980, No. 300, eff. 1-1-81; renum. from REB 15.02, Register, February, 1983, No. 326, eff. 3-1-83; renum. (4) to (6) to be (7) to (9) under s. 13.93 (2m) (b) 1., Stats., Register, September, 1990, No. 417; renum. (1) to (3) to be (2), (4) and (6), cr. (1), (3) and (5), Register, September, 1990, No. 417, eff. 10-1-90; am. (1), Register, January, 1992, No. 433, eff. 2-1-92; am. (1), Register, July, 1993, No. 451, eff. 8-1-93; r. and recr. (1), renum. (2) to (4) to be (4), (5), (7), (6) and (7) to be (8) and (10), (8) to be (11) and am., (a) to be (17), r. (5), cr. (2), (3), (6), (9), (12) to (16), (18), Register, April, 1995, No. 472, eff. 5-1-95; am. (7), r. (11), Register, July, 1998, No. 511, eff. 8-1-98; correction in (3) made under s. 13.92 (4) (b) 7., Stats., Register November 2011 No. 671; CR 10-136: am. (2) to (5), r. (8), am. (13), cr. (13m), r. (17), cr. (19) Register April 2012 No. 676, eff. 7-1-12.
REEB 24.03 REEB 24.03 Competent services.
REEB 24.03(1)(1)Discrimination prohibited. Licensees may not discriminate against, nor deny equal services to, nor be a party to any plan or agreement to discriminate against any person in any manner unlawful under applicable federal, state or local fair housing law.
REEB 24.03 Note Note: The primary references for federal and state fair housing laws are the 1988 amendments to the Federal Housing Act (Title VII of the Civil Rights Act of 1968) and Chapter 106, Subchapter II, Stats.
REEB 24.03(2) (2)Competence required.
REEB 24.03(2)(a)(a) Licensees shall not provide services which the licensee is not competent to provide unless the licensee engages the assistance of one who is competent. Any person engaged to provide such assistance shall be identified and that person's contribution shall be described.
REEB 24.03(2)(b) (b) Licensees shall act to protect the public against fraud, misrepresentation and unethical practices.
REEB 24.03(2)(c) (c) Licensees shall be knowledgeable regarding laws, public policies and current market conditions on real estate matters and assist, guide and advise the buying or selling public based upon these factors.
REEB 24.03(2)(d) (d) Licensees are not required to have the technical knowledge, skills or training possessed by competent third party inspectors and investigators of real estate and related areas.
REEB 24.03 Note Note: Paragraph (d) recognizes that licensees are not required to have the knowledge, skills or training possessed by, for example, persons such as home inspectors, plumbers, electricians or land surveyors.
REEB 24.03 History History: Cr. Register, February, 1980, No. 290, eff. 3-1-80; am. (1), Register, March, 1981, No. 303, eff. 4-1-81; renum. from REB 15.03, Register, February, 1983, No. 326, eff. 3-1-83; am. (1), renum. (2) to be (2) (a), (2) (b) and (c) renum. from RL 24.01 (5) (b) and (c) and am., Register, January, 1987, No. 373, eff. 2-1-87; am. (1), cr. (2) (d), Register, July, 1993, No. 451, eff. 8-1-93.
REEB 24.04 REEB 24.04 Advertising.
REEB 24.04(1)(1)False advertising. Licensees shall not advertise in a manner which is false, deceptive, or misleading.
REEB 24.04(2) (2)Disclosure of name.
REEB 24.04(2)(a)(a) Except for advertisements for the rental of real estate owned by the broker, a broker shall in all advertising disclose the broker's name exactly as printed on the broker's license or disclose a trade name previously filed with the department, as required by s. REEB 23.03, and in either case clearly indicate that the broker is a business concern and not a private party.
REEB 24.04(2)(b) (b) Except for advertisements for the rental of real estate owned by the licensee, a licensee employed by a broker shall advertise under the supervision of and in the name of the employing broker.
REEB 24.04(2)(c) (c) A licensee may advertise the occasional sale of real estate owned by the licensee or the 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.
REEB 24.04(3) (3)Advertising without authority prohibited. Brokers shall not advertise property without the consent of the owner.
REEB 24.04(4) (4)Advertised price. Brokers shall not advertise property at a price other than that agreed upon with the owner; however, the price may be stated as a range or in general terms if it reflects the agreed upon price.
REEB 24.04 History History: Cr. Register, February, 1980, No. 290, eff. 3-1-80; am. (4), Register, March, 1981, No. 303, eff. 4-1-81; renum. from REB 15.04 and am. (2), Register, February, 1983, No. 326, eff. 3-1-83; renum. (2) to be (2) (a) and am., cr. (2) (b) and (c), Register, January, 1987, No. 373, eff. 2-1-87; am. (2) (c), Register, April, 1995, No. 472, eff. 5-1-95; correction in (2) (a) made under s. 13.92 (4) (b) 7., Stats., Register November 2011 No. 671.
REEB 24.05 REEB 24.05 Disclosure of compensation and interests.
REEB 24.05(1) (1)Compensation.
REEB 24.05(1)(a)(a) A licensee acting as an agent in a real estate or business opportunity transaction may not accept any fee or compensation related to the transaction from any person, other than the licensee's client, principal broker, or broker-employer without prior written consent from all parties to the transaction.
REEB 24.05(1)(b) (b) A licensee acting as an agent in a real estate or business opportunity transaction may not recommend or suggest to a party to the transaction the services of another individual or entity from which the licensee may receive compensation for a referral or in which the licensee has an interest, unless the licensee, prior to or at the time of the referral, discloses to the party in writing the fact that he or she may receive compensation for the referral or that he or she has an interest in the individual or entity providing the services. This paragraph does not apply when the licensee makes a referral to another licensee for real estate services under s. 452.19, Stats.
REEB 24.05(2) (2)Disclosure of interest. A licensee acting as an agent in a real estate or business opportunity transaction may not act in the transaction on the licensee's own behalf, on behalf of the licensee's immediate family or firm, or on behalf of any other organization or business entity in which the licensee has an interest without the prior written consent of all parties to the transaction. For the purpose of this subsection, a licensee shall obtain the written consent in the offer to purchase, option, lease or other transaction contract.
REEB 24.05(4) (4)Disclosure to seller. A listing broker may not pay any compensation or incentive to a licensee who is acting as a buyer in a transaction without prior written consent from the seller.
REEB 24.05(5) (5)Disclosure of licensure.
REEB 24.05(5)(a)(a) A licensee acting as a principal in a real estate or business opportunity transaction shall disclose his, her, or its license status and intent to act in the transaction as a principal at the earliest of all of the following:
REEB 24.05(5)(a)1. 1. The first contact with the other party or an agent representing the other party where information regarding the other party or the transaction is being exchanged.
REEB 24.05(5)(a)2. 2. A showing of the property.
REEB 24.05(5)(a)3. 3. Any other negotiation with the seller or the listing broker.
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