2005 WISCONSIN ACT 87
An Act to repeal 452.01 (2) (d), 452.01 (2) (e), 452.01 (2) (f), 452.01 (2) (g), 452.01 (5m) (d) and 452.137;
to renumber and amend 452.133 (2) (a); to amend 452.01 (1m), 452.01 (2) (a), 452.01 (2) (b), 452.01 (2) (h), 452.01 (3e), 452.01 (4d), 452.01 (4h), 452.01 (4p), 452.01 (4t), 452.01 (5m) (intro.), 452.01 (5m) (a), 452.01 (5m) (c), 452.01 (5r), 452.01 (7), 452.12 (3), 452.133 (1) (intro.), 452.133 (1) (a), 452.133 (1) (b), 452.133 (1) (c), 452.133 (1) (d), 452.133 (1) (e), 452.133 (1) (f), 452.133 (1) (g), 452.133 (2) (intro.), 452.133 (2) (b), 452.133 (2) (c), 452.138, 452.139 (1) and 452.14 (3) (f); to repeal and recreate 452.135; and to create 452.01 (2) (bm), 452.01 (3w), 452.01 (5j), 452.01 (5w), 452.01 (7r), 452.133 (2) (a) 2., 452.133 (2) (am), 452.133 (2) (d), 452.133 (4) and (5), 452.133 (6) and 452.134 of the statutes; relating to: duties of real estate brokers and salespersons.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
87,1
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1. 452.01 (1m) of the statutes is amended to read:
452.01 (1m) "Agency agreement" means a written agreement between a broker and a client under s. 452.135 (1) in which the client authorizes the broker to provide brokerage services to the client.
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2. 452.01 (2) (a) of the statutes is amended to read:
452.01 (2) (a) For another person, and for commission, money, or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase, or rental of, or the granting or acceptance of an option to sell, exchange, purchase, or rent, an interest or estate in real estate, a time share, or a business or its goodwill, inventory, or fixtures, whether or not the business includes real property.
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3. 452.01 (2) (b) of the statutes is amended to read:
452.01 (2) (b) Is engaged wholly or in part in the business of selling or exchanging interests or estates in real estate or businesses, including businesses' goodwill, inventory, or fixtures, whether or not the business includes real property, to the extent that a pattern of real estate sales or exchanges is established, whether or not such the person owns the real estate
is owned by such person or businesses. Five sales or exchanges in one year or 10 sales or exchanges in 5 years is presumptive evidence of a pattern of sales or exchanges.
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4. 452.01 (2) (bm) of the statutes is created to read:
452.01 (2) (bm) For another person, and for commission, money, or other thing of value shows real estate or a business or its inventory or fixtures, whether or not the business includes real property, except that this paragraph does not include showing a property that is offered exclusively for rent.
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5. 452.01 (2) (d) of the statutes is repealed.
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6. 452.01 (2) (e) of the statutes is repealed.
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7. 452.01 (2) (f) of the statutes is repealed.
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8. 452.01 (2) (g) of the statutes is repealed.
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9. 452.01 (2) (h) of the statutes is amended to read:
452.01 (2) (h) For another person, and for a commission, money, or other thing of value, promotes the sale, exchange, purchase, option, rental, or leasing of real estate, a time share, or a business
opportunities or its goodwill, inventory, or fixtures, whether or not the business includes real property. This paragraph does not apply to a person who only publishes or disseminates verbatim information provided by another person.
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10. 452.01 (3e) of the statutes is amended to read:
452.01 (3e) "Brokerage service" means any service described under sub. (2) (a) to (h) provided by a broker to another person.
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11. 452.01 (3w) of the statutes is created to read:
452.01 (3w) "Designated agency" means a multiple representation relationship in which each client of the broker in the multiple representation relationship receives negotiation services from the broker only from employees of the broker who are not providing negotiation services to any other client of the broker in the transaction.
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12. 452.01 (4d) of the statutes is amended to read:
452.01 (4d) "Employ",," when used in reference to a broker employing another broker, a salesperson, or a time-share salesperson, includes means engaging the services of another broker, a salesperson, or a time-share salesperson who provides to provide brokerage services to the broker broker's clients and customers on behalf of the broker and under the broker's supervision, including engaging a broker, salesperson, or time-share salesperson as an independent contractor.
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13. 452.01 (4h) of the statutes is amended to read:
452.01 (4h) "Employee",," when used in reference to an employee of a broker, includes means another broker, a salesperson, or a time-share salesperson who provides brokerage services to the broker broker's clients and customers on behalf of the broker and under the broker's supervision, including a broker, salesperson, or time-share salesperson engaged by the broker as an independent contractor.
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14. 452.01 (4p) of the statutes is amended to read:
452.01 (4p) "Employer",," when used in reference to a broker who is the employer of another broker, a salesperson, or a time-share salesperson, includes means a broker who engages the services of another broker, a salesperson, or a time-share salesperson who provides services to the broker to provide brokerage services to the broker's clients and customers on behalf of the broker and under the broker's supervision, including a broker who engages the services of another broker, salesperson, or time-share salesperson as an independent contractor.
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15. 452.01 (4t) of the statutes is amended to read:
452.01 (4t) "Employment",," when used in reference to a broker's employment of another broker, a salesperson, or a time-share salesperson, includes means the state of providing being engaged by a broker to provide services to the broker by the other broker's clients and customers on behalf of the broker and under the broker's supervision, including being engaged by the employing broker, the salesperson or the time-share salesperson as an independent contractor.
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16. 452.01 (5j) of the statutes is created to read:
452.01 (5j) "Multiple representation relationship" means a relationship between a broker and 2 or more of the broker's clients in which the clients are parties in the same transaction.
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17. 452.01 (5m) (intro.) of the statutes is amended to read:
452.01 (5m) (intro.) "Negotiate" means to act as an intermediary between the parties to a transaction provide to a party assistance within the scope of the knowledge, skills, and training required under this chapter in developing a proposal or agreement relating to a transaction, including doing any of the following:
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18. 452.01 (5m) (a) of the statutes is amended to read:
452.01 (5m) (a) Facilitating Acting as an intermediary by facilitating or participating in the parties' discussion of the terms of a contract or agreement concerning communications between parties related to the parties' interests in a transaction. In this paragraph, providing advice or opinions on matters that are material to a transaction in which a person is engaged or intends to engage or showing a party real estate does not, in and of itself, constitute acting as an intermediary by facilitating or participating in communications between parties.
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19. 452.01 (5m) (c) of the statutes is amended to read:
452.01 (5m) (c) Presenting to a party the proposals of other parties to the transaction and informing the party receiving a proposal of the advantages and disadvantages giving the party a general explanation of the provisions of the proposal.
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20. 452.01 (5m) (d) of the statutes is repealed.
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21. 452.01 (5r) of the statutes is amended to read:
452.01 (5r) "Party" means a person seeking to
sell, exchange, buy or rent an interest in real estate, a business or a business opportunity. "Party" includes a person who seeks to grant or accept an option to buy, sell or rent an interest in real estate, a business or a business opportunity engage in a transaction.
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22. 452.01 (5w) of the statutes is created to read:
452.01 (5w) "Principal broker" means a broker who engages a subagent to provide brokerage services in a transaction.
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23. 452.01 (7) of the statutes is amended to read:
452.01 (7) "Salesperson" means any person other than a broker or time-share salesperson who is employed by a broker to perform any act authorized by this chapter to be performed by a broker.
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24. 452.01 (7r) of the statutes is created to read:
452.01 (7r) "Subagent" means a broker who is engaged by another broker to provide brokerage services in a transaction, but who is not the other broker's employee.
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25. 452.12 (3) of the statutes is amended to read:
452.12 (3) Broker's liability for acts of employees. Each broker shall supervise, and is responsible for, the acts of, brokerage services provided on behalf of the broker by any broker, salesperson, or time-share salesperson employed by who is an employee of the broker.
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26. 452.133 (1) (intro.) of the statutes is amended to read:
452.133 (1) Broker's duties to all
parties to persons in a transaction. (intro.) In
A broker who is providing brokerage services to a party to person in a transaction, a broker shall do all of the following owes all of the following duties to the person:
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27. 452.133 (1) (a) of the statutes is amended to read:
452.133 (1) (a) Provide The duty to provide brokerage services to all parties to the transaction honestly
, and fairly and in good faith.
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28. 452.133 (1) (b) of the statutes is amended to read:
452.133 (1) (b) Diligently exercise
The duty to provide brokerage services with reasonable skill and care in providing brokerage services to all parties.
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29. 452.133 (1) (c) of the statutes is amended to read:
452.133 (1) (c) Disclose to each party
The duty to timely disclose in writing all material adverse facts that the broker knows and that the party person does not know or cannot discover through reasonably vigilant observation, unless the disclosure of a material adverse fact is prohibited by law.
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30. 452.133 (1) (d) of the statutes is amended to read:
452.133 (1) (d) Keep The duty to keep confidential any information given to the broker in confidence, or any information obtained by the broker that he or she knows a reasonable party person would want to be kept confidential, unless the information must be disclosed under par. (c) or s. 452.23 or is otherwise required by law to be disclosed or the party person whose interests may be adversely affected by the disclosure specifically authorizes the disclosure of particular confidential information. A broker shall continue to keep the information confidential after the transaction is complete and after the broker is no longer providing brokerage services to the party person.
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31. 452.133 (1) (e) of the statutes is amended to read:
452.133 (1) (e) Provide The duty to provide accurate information about market conditions that affect a
the person's transaction, to any party who requests the information, within a reasonable time of after the party's person's request, unless disclosure of the information is prohibited by law.
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32. 452.133 (1) (f) of the statutes is amended to read:
452.133 (1) (f) Account for all The duty to safeguard trust funds and other property coming into the possession of a held by the broker that belongs to any party within a reasonable time of receiving the property as required by rules promulgated by the department under s. 452.13 (5).
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33. 452.133 (1) (g) of the statutes is amended to read:
452.133 (1) (g) When the broker is negotiating on behalf of a party, the duty to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.
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34. 452.133 (2) (intro.) of the statutes is amended to read:
452.133 (2) Broker's duties to a client. (intro.) In addition to his or her duties under sub. (1), a
A broker providing brokerage services to his or her client shall do owes the client the duties that the broker owes to a person under sub. (1) and all of the following additional duties:
87,35
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35. 452.133 (2) (a) of the statutes is renumbered 452.133 (2) (a) (intro.) and amended to read:
452.133 (2) (a) (intro.) Loyally
The duty to loyally represent the client's interests by placing doing all of the following:
1. Placing the client's interests ahead of the broker's interests of any other party, unless loyalty to a client violates the broker's duties under sub. (1) or s. 452.137 (2).
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36. 452.133 (2) (a) 2. of the statutes is created to read:
452.133 (2) (a) 2. Placing the client's interests ahead of the interests of persons in the transaction who are not the broker's clients by not disclosing to persons in the transaction other than the broker's clients information or advice the disclosure of which is contrary to the interests of a client of the broker, unless the disclosure is required by law.
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37. 452.133 (2) (am) of the statutes is created to read:
452.133 (2) (am) The duty to provide, when requested by the client, information and advice to the client on matters that are material to the client's transaction and that are within the scope of the knowledge, skills, and training required under this chapter.
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38. 452.133 (2) (b) of the statutes is amended to read:
