The proposed rule includes a comprehensive review of the chapter to ensure statutory compliance and to ensure it is current with professional standards and practices.
Section 1. is revised to improve grammatical clarity.
Section 2. is revised for updates to the practice.
Section 3. is revised for grammatical clarity.
Section 4. is created to define right of first refusal.
Section 5. is revised for clarity and current practices.
Section 6. is revised to clarify that the role of an assisting licensee.
Section 7. is repeals and recreates provisions to refer to the statutes related to advertising standards of practice.
Section 8. repeals provisions and revises codes related to compensation requirements.
Section 9. revises code provisions to include other parties representing a seller as it relates to disclosure requirements.
Section 10. clarifies that if a licensee is granted access to a property, the licensee shall inspect the real estate.
Section 11. is revised for corrected statutory references.
Section 12. amends the section to include all parties in the delivery of a copy of the written report.
Section 13. deletes the provisions related to negotiations and disclosure to improve consistency with statutory requirements.
Section 14. is created to improve consistency with s. 452.135, Stats. regarding licensees providing a written disclosure statement to customers. Section 15. is revised to reflect negotiating practice and statutory requirements.
Section 16. is revised to improve the title to reflect provisions in the section and add language to clarify disclosure statement requirements when a buyer’s firm has exclusive right to locate and a seller’s limited service listing with the seller’s firm.
Section 17. is revised to include statutory requirements and clarify the intent includes the agreement with a home builder and a licensee, not a contractor. The current language can be confused with contractor for improvements rather than new home construction.
Section 18. revises rule language to update for current practices and statutory compliance.
Sections 19. and 20. are revised to improve grammatical clarity.
Section 21. is revised for clarity and to remove the “right of first refusal” reference to be consistent with current practice.
Section 22. is revised to identify that specific instructions are written and to improve the title for the section to better address the section content.
Section 23. is renumbered and revised to update that persons assisting or advising buyers under the subsection does not include any inspectors, testers, appraisers, or contractors unless the seller has provided specific written permission.
Section 24. repeals the provision related to written disclosure to be consistent with s. 435.135, Stats. Section 25. is revised to improve grammatical clarity and to include a licensed broker and broker business entity.
Section 26. creates a provision indicating that licensees must present all written proposals to a customer unless otherwise directed by the customer in writing and must not withhold any written proposal. This provision is added to improve consistency with s. 435.135, Stats. Section 27. and 28. are revised to improve grammatical clarity.
Section 29. is repealed as an outdated requirement.
Section 30. improves grammatical clarity and consistency with s. 452.25, Stats. related to conviction of a felony to bar licensure related to the Real Estate Examining Board orders. Section 31. is the effective date of the changes.
Summary of, and comparison with, existing or proposed federal regulation:
None
Comparison with rules in adjacent states:
Illinois: Illinois provides criteria for unprofessional conduct for real estate brokers, salespersons, and other real estate professions as governed under the Illinois Real Estate License Act of 2000 and updated in 2019 under 225 ILCS 454/Art. 20. Further administrative rules outline additional direction for the provisions found under the laws.
Summary of factual data and analytical methodologies:
The Board hears and reviews disciplinary cases related to conduct and ethical practices of real estate licensees under s. 452.14, Stats. This proposed order clarifies and updates professional conduct and ethical practices rule provisions to meet current practice and statutory changes. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The proposed rules will be posted for a period of 14 days to solicit public comment on economic impact, including how the proposed rules may affect businesses, local government units, and individuals.
Fiscal Estimate and Economic Impact Analysis:
A fiscal estimate and economic impact analysis will be conducted.
