CR 21-043 Rule Text

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 and grammatical clarity.

Section 3. is created to define right of first refusal.

Section 4. is revised for clarity and current practices.

Section 5. is revised to clarify that the role of an assisting licensee.

Section 6. is repeals and recreates provisions to refer to the statutes related to advertising standards of practice.

Section 7. repeals provisions and revises codes related to compensation and disclosure of interest requirements.

Section 8. revises code provisions to include other parties representing a seller as it relates to disclosure requirements.

Section 9. clarifies that if a licensee is granted access to a property, the licensee shall inspect the real estate, is revised for corrected statutory references, and amends the section to include all parties in the delivery of a copy of the written report.

Section 10 and 11. delete the provisions related to negotiations and disclosure and is partially recreated to improve consistency with s. 452.135, Stats. regarding licensees providing a written disclosure statement to customers.

Section 12. is revised to reflect negotiating practice and statutory requirements.

Section 13. 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 14. 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 15. revises rule language to update for current practices and statutory compliance.

Sections 16. and 17. are revised to improve grammatical clarity.

Section 18. is revised for clarity and to remove the “right of first refusal” reference to be consistent with current practice.

Section 19. is revised to identify that specific instructions are written and to improve the title for the section to better address the section content.

Section 20. is renumbered for clarity.

Section 21. repeals the provision related to written disclosure to be consistent with s. 435.135, Stats.

Section 22. is revised to improve grammatical clarity and to include a licensed broker and broker business entity.

Section 23. 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 24. and 25. are revised to improve grammatical clarity.

Section 26. is repealed as an outdated requirement.

Section 27. 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 28. 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.

https://www.ilga.gov/commission/jcar/admincode/068/068014500I09000R.html

Iowa: Iowa provides for unprofessional conduct for real estate brokers and salesperson under IC §543B. (https://www.legis.iowa.gov/DOCS/ACO/IC/LINC/Chapter.543b.pdf.)

Iowa’s Administrative Rules 193E.18 further detail disciplinary and investigatory review in matters such as grounds for discipline and sanctions. https://www.legis.iowa.gov/law/administrativeRules/rules?agency=193E&chapter=18&pubDate=01-13-2021

Michigan: Michigan Laws under 299-1980, Section 339.501-339.559 and Michigan Administrative Rule R 339 Article 5 outlines provisions concerning complaints, disciplinary procedures, and other related issues for real estate professions. Complaints on violations of the occupational codes in Michigan can be filed through the Bureau of Professional Licensing in the Department of Licensing and Regulatory Affairs. http://www.legislature.mi.gov/(S(1ikbjpybafgho5pahhxyzkcp))/mileg.aspx?page=getObject&objectName=mcl-299-1980-5

Minnesota: Minnesota has adopted standards of conduct for real estate professionals found under s. 82.73, MN Statutes. https://www.revisor.mn.gov/statutes/cite/82.73 and disciplinary procedures entitled “Denial, Suspension and Revocation of Licensure” under s. 82.82, Stats. https://www.revisor.mn.gov/statutes/cite/82.82

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 were 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. No comments were received.

Fiscal Estimate and Economic Impact Analysis:

A fiscal estimate and economic impact analysis are attached.

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 [e-mail], or by calling [phone].

Agency contact person:

Nilajah Hardin, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708; telephone [phone]; email at [e-mail].

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TEXT OF RULE