Section 7. REEB 24.05 (1) and (2) are repealed and recreated to read:
REEB 24.05 (1) Compensation. A licensee shall follow the requirements for compensation as specified under s. 452.133 (3) (a) and (c), Stats. REEB 24.05 (2) DISCLOSURE OF INTEREST. A licensee shall follow the requirements for disclosure of interest as specified under s. 452.133(3) (b), Stats. Section 8. REEB 24.05 (5) (a) 3. is amended to read:
REEB 24.05 (5) (a) 3. Any other negotiation with the seller, or the listing firm, or other party or firm representing the other party.
Section 9. REEB 24.07 (1) (a) and (c), (3), and (5) are amended to read:
REEB 24.07 (1) (a) General requirement. A licensee, when engaging in real estate practice which that involves real estate improved with a structure, shall conduct a reasonably competent and diligent inspection of accessible areas of the structure and immediately surrounding areas of the property to detect observable, material adverse facts. A licensee, when engaging in real estate practice which that involves vacant land, shall, if the vacant land is accessible, conduct a reasonably competent and diligent inspection of the vacant land to detect observable material adverse facts.
REEB 24.07 (1) (c) Other licensees. Licensees, other than listing firms, shall inspect the real estate as required by sub. (1) prior to or during the a showing of the property, unless the licensee is not given access for a showing.
REEB 24.07 (3) Disclosure of information suggesting material adverse facts. A licensee, when engaging in real estate practice, who becomes aware of information suggesting the possibility of material adverse facts to the transaction, shall be is practicing competently if the licensee discloses to the parties the information suggesting the possibility of material adverse facts to the transaction in writing and in a timely fashion, recommends the parties obtain expert assistance to inspect or investigate for possible material adverse facts to the transaction, and, if directed by the parties, drafts appropriate inspection or investigation contingencies. This provision is not limited to the condition of the property, but includes other material adverse facts to the transaction, including but not limited to defects and conditions included within the report form under ss. 703.33 and 709.03 and 709.33, Stats. A licensee is not required to retain third party inspectors or investigators to perform investigations of information suggesting the possibility of a material adverse fact to the transaction. REEB 24.07 (5) Reliance upon third party inspections and investigations. If a licensee or a party in a transaction engages the services of a qualified third party to conduct a property inspection or investigation of material facts, the licensee may rely on the results of the inspection or investigation providing the licensee obtains a written report of the inspection or investigation and delivers a copy of the report to all interested parties in a timely manner.
Section 10. REEB 24.07 (8) (a) 1. is repealed and recreated to read:
REEB 24.07 (8) (a) General requirements. 1. A firm or licensee shall provide a written disclosure statement as prescribed under s. 452.135, Stats. Section 11. REEB 24.07 (8) (a) 1g. is repealed
Section 12. REEB 24.07 (8) (a) 1r. is amended to read:
REEB 24.07 (8) (a) 1r. If a client enters into an agency agreement with a firm is negotiating on behalf of a party who is not the client of another firm and the negotiations are to receive brokerage services related to real estate primarily intended for use as a residential property containing one to 4 dwelling units, and the disclosure to clients is not incorporated into the agency agreement, the firm shall request the party's signed acknowledgement that the client party has received a copy of the written disclosure statement required in s. 452.135 (2), Stats. Section 13. REEB 24.07 (8) (d) (title), 1., 2., 3. and (8) (e) 1. are amended to read:
REEB 24.07 (8) (d) (title) Subagency arrangements Disclosure statements.
REEB 24.07 (8) (d) 1. A listing firm shall provide a disclosure statement to a customer as required in s. 452.135 (1), Stats., to the buyer if negotiations are being conducted directly with the buyer and not through a buyers buyer’s firm. This requirement may be waived if the buyer’s firm has an exclusive right to locate buyer agency agreement that includes a provision removing the exclusive right to negotiate. REEB 24.07 (8) (d) 2. A buyer's firm shall provide a disclosure statement to a customer as required in s. 452.135 (1), Stats., to a seller if negotiations are being conducted directly with the seller and not through a seller's firm, unless the seller has waived the firm’s duty to negotiate under s. 452.133(6), Stats. REEB 24.07 (8) (d) 3. A subagent shall provide a disclosure statement to a customer as required in s. 452.135 (1), Stats., with whom he or she the subagent is working but not to the principal firm's client. REEB 24.07 (8) (e) 1. A licensee who is entering into agency agreements for lease or property management contracts shall provide to his or her clients the client the disclosure statement as required in s. 452.135 (2), Stats. Section 14. REEB 24.075 (3) (a), (b) and (c) are amended to read:
REEB 24.075 (3) (a) The builder owns a bona fide interest in the real estate; and there is full disclosure as specified under s. REEB 24.05 (1) (b) 452.133 (3) (c), Stats. REEB 24.075 (3) (b) The builder and the licensee or the builder and the owner of the real estate are the same person or are commonly controlled corporations and whose business is selling improved property and not vacant land; and there is full disclosure as specified in s. REEB 24.05 (1) (b) 452.133 (3) (c), Stats. REEB 24.075 (3) (c) The agreement is a bona fide effort to maintain development quality or architectural uniformity and no consideration passes from contractor a builder to a licensee for soliciting this agreement.
Section 15. REEB 24.08 is amended to read:
REEB 24.08 Agreements to be in writing. A licensee shall put in writing all listing contracts, guaranteed sales agreements, buyer agency agreements, offers to purchase, property management agreements, option contracts options, financial obligations and any other commitments written proposals regarding transactions, expressing the exact agreement of the parties unless. This section does not apply if the writing is completed by the parties or their attorneys or the writing is outside the scope of the licensee's authority under ch. REEB 16. Section 16. REEB 24.085 is amended to read:
REEB 24.085 False portrayal of interest, prohibited. No licensee shall draft or use any document which that the licensee knows falsely portrays an interest in real estate.
Section 17. REEB 24.09 is amended to read:
REEB 24.09 Securing agency agreements. Licensees A licensee may not mislead a potential client regarding the benefits which that might be realized through the use of by using the licensee's services. A licensee also may not mislead a potential client regarding the market value of real estate or a business opportunity to be leased, rented, purchased, optioned, or sold under an agency agreement.
Section 18. REEB 24.12 (1) and (2) are amended to read:
REEB 24.12 (1) Except as provided in sub.(2), a licensee acting as a principal or an agent in a real estate or business opportunity transaction shall not disclose any of the terms of one prospective buyer's offer to purchase, exchange agreement, or option contract proposal to any other prospective buyer or to any person with the intent that this information be disclosed to any other prospective buyer. Licensees shall encourage all prospective buyers to submit their best offers. A licensee may, but is not required to, disclose information known by the licensee regarding the existence of other offers on the property, the fact that a seller has accepted an offer, that the offer is subject to contingencies, and that the offer is subject to a clause requiring removal of certain contingencies upon the occurrence of an event such as receipt, acceptance, or conditional acceptance of another offer.
REEB 24.12 (2) As used in this subsection, “right of first refusal" means the right of a person to have the first opportunity to purchase or lease real property. “Right of first refusal" does not mean a so-called “bump clause" which is a contingency provision in a purchase agreement that requires the prospective buyer to remove certain contingencies in the buyer's purchase agreement or to relinquish the buyer's primary status to a secondary offer. If a licensee is providing brokerage services in a transaction and the licensee has knowledge that the property is subject to a right of first refusal, the licensee shall disclose the right of first refusal, in writing and in a timely manner, to all persons seeking to acquire an interest subject to the right of first refusal. After disclosure of the right of first refusal to a party seeking to acquire an interest in the property, the licensee may deliver a copy of that party's subsequent offer to purchase, exchange agreement, option contract, or lease proposal to the party holding the right of first refusal.
Section 19. REEB 24.13 (1), and (2) (title), are amended to read:
REEB 24.13 (1) Licensees shall not refuse to draft or submit any written proposal unless the terms of the written proposal would be contrary to specific written instructions of the other party.
REEB 24.13 (2) (title) Withholding written proposals prohibited Access to property for showings.
Section 20. REEB 24.13 (2) (a) is renumbered to REEB 24.13 (2).
Section 21. REEB 24.13 (2) (b) is repealed.
Section 22. REEB 24.13 (3) (b) is amended to read:
REEB 24.13 (3) (b) A listing licensed individual broker acting as a sole proprietor or If a firm has a property listed, no licensee associated with a the listing firm, including a licensed individual broker acting as a sole proprietor and licensed broker business entity, or listing firm, may not submit his or her own a personal written proposal or offer to purchase a property, which the firm has listed if the licensee has knowledge of the terms of any pending offer, except that a firm may arrange for a guaranteed sale at the time of listing.
Section 23. REEB 24.13 (3) (c) is created to read:
REEB 24.13 (3) (c) A licensee shall promptly present all written proposals received to the licensee’s client or customer unless the presentation would be contrary to specific written instructions from the licensee’s client or customer. A licensee shall not withhold any written proposal from presentation pending the party’s action on a written proposal previously presented unless the presentation would be contrary to specific written instructions from the licensee’s client or customer.
Section 24. REEB 24.13 (5) is amended to read:
REEB 24.13 (5) Negotiation through firm. A licensee may not negotiate a sale or lease of real estate directly with a party if the licensee knows that the party has an unexpired written contract in connection with the real estate which that grants to another licensee an exclusive right to sell, lease, or negotiate. All negotiations shall be conducted with the firm holding the exclusive right to sell, lease, or negotiate, and not with the party, except with the consent of the firm or where the absence of the firm, or other similar circumstances, reasonably compels direct negotiation with the party. A listing firm has no duty to investigate whether a buyer has granted a buyer's agent an exclusive right to negotiate.
