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 is repealed as an outdated requirement.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.
Effect on small business:
These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at Daniel.Hereth@wisconsin.gov, or by calling (608) 267-2435. Agency contact person:
Kassandra Walbrun, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708; telephone 608-261-4463; email at DSPSAdminRules@wisconsin.gov. Place where comments are to be submitted and deadline for submission:
Comments may be submitted to Kassandra Walbrun, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, WI 53708-8366, or by email to DSPSAdminRules@wisconsin.gov. Comments must be received at or before the public hearing to be held on a future date to be included in the record of rule-making proceedings. ---------------------------------------------------------------------------------------------------------------------
TEXT OF RULE
Section 1. REEB 24.01 (2) is amended to read:
REEB 24.01 (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 that may result in board discipline pursuant to s. 452.14, Stats. Section 2. REEB 24.02 (13m) and (14) are amended to read:
REEB 24.02 (13m) “Principal firm” means a firm who that engages a subagent to provide brokerage services in a transaction.
REEB 24.02 (14) “Qualified third party” means a federal, state or local governmental agency, or any person whom the broker, salesperson licensee 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. Section 3. REEB 24.02 (16) is amended to read:
REEB 24.02 (16) “Real estate practice" means engaging in conduct which that requires a license under ch. 452, Stats.Section 4. REEB 24.02 (16m) is created to read:
