Real Estate Examining Board
The statement of scope for this rule, SS 021-16, was approved by the Governor on March 11, 2016, published in Register 723A2 on March 14, 2016, and approved by the Real Estate Examining Board on March 28, 2016. This emergency rule as approved by the Governor on June 23, 2016.
An order of the Real Estate Examining Board to repeal REEB 15.03, 17.02, 17.025, 17.03 (1), 17.04, 17.05, 17.06, 17.07, 17.08, 17.12, 18.02 (2) and 24.02 (2); to renumber REEB 11.02 (1); to renumber and amend REEB 15.04; to amend REEB 12.011 (1), Chapter 15 (title), 15.02 (1) and (3), 16.02 (1m), (2e), (2m), (2s), (3), (3m), (4), (4m) and (5), 16.03 (1) (intro.), (d) and (e), 16.04 (2), 16.06 (1) (c), (4) (a) and (8), 17.03 (title), 17.03 (2), 17.03 (4), 18.02 (6) (intro.) and (g), 18.031 (1) (intro.) and (a), (2), (3) and (5)(b), 18.032, 18.033, 18.034, 18.035, 18.036,18.037, 18.04, 18.05, 18.06, 18.07, 18.09 (1)(intro.), (2) and (3), 18.10, 18.11, 18.13 (intro), (1) (intro.), (2), (3), (4), (5) and (6) (intro) and (e), 18.14, 23.03, 23.04, 24.01 (3), 24.02 (3), (5), (6), (9) and (13m), 24.04 (2) (a) and (b), (3) and (4), 24.05 (1) (a), (2), (4) and (5) (a) 3., 24.07 (1) (b) (title), (c), (3), (8) (a) 1., 1g., 1r., and 2 (intro.), a. and c. and (8) (b), (d) and (e), 24.10, 24.13 (2) (a), (3) (b), (4) and (5), 24.16 and 24.17 (1); to repeal and recreate Chapter REEB 17 (title) and 17.03 (3); and to create REEB 11.02 (1d), (1h), (1p), (5g) and (6m), 12.011 (1) (am), 15.02 (4) and 15.04 (2) relating to real estate practice.
Analysis prepared by the Department of Safety and Professional Services.
The Legislature by SECTION 179 in 2015 Act 258 provides an exemption from a finding of emergency for the adoption of the rules under chapter 452, Stats. that are necessary to implement the changes in 2015 Act 258.
Statutes interpreted: Chapter 452, Stats.
Statutory authority: 15.08(5) (b), Stats.
Explanation of agency authority:
Each examining board shall promulgate rules for its own guidance and for the guidance of the profession to which it pertains, and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or profession. [s. 15.08 (5) (b), Stats.]
Related statute or rule: N/A
Plain language analysis:
This rule updates the real estate code chapters to reflect current real estate practice as provided in 2015 Act 258 including: terminology, provisions relating to independent contractor relationship, duties of licensees, supervision of licensees, use of unlicensed personal assistants, business representations, inactive license references, fees for predeterminations on criminal records, electronic records retention, use of forms and elimination of timeshare credential references.
Sections 1 and 2 create definitions for three new terms defined in statute: “associated with a firm”, “associated with a subagent” and firm” by referring to the same definition as the statute. These sections also create a definition for “agency agreement” referring to the statutory definition. Lastly, the sections create a definition for “member of the licensee’s immediate family” which clarifies a previous definition for “immediate family”.
Sections 3 and 4 removes the reference to timeshare salespersons due to Act 258 removing the requirement for credentialing of timeshare salespersons. These sections also create a $68.00 fee for the binding determination as to whether the individual’s criminal record would disqualify the individual from obtaining a license prior to the individual submitting an application for the license. This provision allows an applicant who receives a favorable determination to credit the amount toward their application fee if the person applies within 1 year of the determination. Act 258 permits the Board to charge a fee for the cost of making this determination.
Sections 5, 13, 15, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 35, 36, 38, 39, 41, and 42 update terminology.
Section 6 clarifies documents prepared or received by the licensee in addition to utilized shall be promptly provided. The section also includes rental agreements and clarifies the lease or rental agreement shall be provided upon execution of the lease or rental agreement.
Sections 7 clarifies a broker or salesperson shall promptly distribute a copy of an agency agreement that has been accepted and signed by all parties to the client when the client signs an agency agreement.
Section 8 repeals the obsolete provision relating to closing statements.
Section 9 updates terminology and clarifies the record retention period in transactions without a date of closing or consummation begins from the date the listing contract or agency agreement is terminated. In addition, this section clarifies electronic or digital record retention may be utilized.
Section 10 creates a provision requiring brokers and salespersons to submit documents to the firm in a timely manner so that the firm can be in compliance with the record retention requirements.
Sections 11 and 14 updates terminology and reflects forms are filled out based upon instruction and not intent of the party.
Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.