AB783: Bill Text

AB783, s. 42 Section 42. 452.133 (6) of the statutes is created to read:

AB783,13,16 452.133 (6) Waiver of duties. The duties imposed by subs. (1), (2) (a), (am), (b), and (c), (4), and (5) may not be waived. A client may waive, in part or in full, the broker's duty under sub. (2) (d), except that a waiver under this subsection is not effective unless the broker provides to the client a written disclosure containing all of the following:

AB783,13,19 (a) A copy of the text of sub. (2) (d) and s. 452.01 (5m), and a statement that, as a consequence of the client's waiver, the broker will have no legal duty to perform the duty imposed by sub. (2) (d).

AB783,13,22 (b) A statement that as a consequence of the client's waiver, the client may require the assistance of an attorney or another service provider to fulfill the client's goals and contractual duties in the transaction.

AB783, s. 43 Section 43. 452.134 of the statutes is created to read:

AB783,14,3 452.134 Agency relationships; multiple representation relationships. (1) Agency relationship not required. (a) Subject to par. (b), a broker may provide brokerage services to any person in a transaction, whether or not the broker has entered into an agency agreement with a party to the transaction or the broker has been engaged to provide brokerage services in the transaction as a subagent.

AB783,14,5 (b) A broker may not negotiate on behalf of a party to a transaction unless a party to the transaction is one of the following:

AB783,14,6 1. The broker's client.

AB783,14,7 2. A client of a principal broker who has engaged the broker as a subagent.

AB783,14,11 (2) Multiple representation relationships; consent required. A broker may not provide brokerage services in a multiple representation relationship unless all of the broker's clients in the multiple representation relationship have consented to a multiple representation relationship in writing.

AB783,14,16 (3) Designated agency; consent required. (a) A broker in a multiple representation relationship may not engage in designated agency unless all of the broker's clients in the relationship have consented to designated agency in writing. A client may withdraw consent to designated agency by written notice to the broker at any time.

AB783,14,22 (b) If a broker is engaged in designated agency, the broker's employee who is negotiating on behalf of a client of the broker in the transaction may provide to the client on whose behalf the employee is negotiating information, opinions, and advice to assist the client in the negotiations, whether or not the information, opinions, and advice place the interests of one of the broker's clients ahead of the interests of another client of the broker.

AB783,15,2 (4) Multiple representations relationship without designated agency. If a broker's client in a multiple representation relationship does not consent to designated agency or withdraws consent to designated agency, the broker and the broker's employees may not place the interests of any client ahead of the interests of any other in the negotiations.

AB783, s. 44 Section 44. 452.135 of the statutes is repealed and recreated to read:

AB783,15,6 452.135 Disclosure of duties. (1) (a) A broker may not negotiate on behalf of a party who is not the broker's client unless the broker provides to the party a copy of the following written disclosure statement:

AB783,15,7 BROKER DISCLOSURE TO CUSTOMERS

AB783,15,12 You are a customer of the broker. The broker is either an agent of another party in the transaction or a subagent of another broker who is the agent of another party in the transaction. The broker, or a salesperson acting on behalf of the broker, may provide brokerage services to you. Whenever the broker is providing brokerage services to you, the broker owes you, the customer, the following duties:

AB783,15,13 The duty to provide brokerage services to you fairly and honestly.

AB783,15,15 The duty to exercise reasonable skill and care in providing brokerage services to you.

AB783,15,18 The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law.

AB783,15,20 The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

AB783,15,23 The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential information or the confidential information of other parties.

AB783,15,24 The duty to safeguard trust funds and other property the broker holds.

AB783,16,2 The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

AB783,16,5 Please review this information carefully. A broker or salesperson can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector.

AB783,16,8 This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain-language summary of a broker's duties to a customer under section 452.133 (1) of the Wisconsin statutes.

AB783,16,13 (b) If a broker is providing brokerage services as a subagent to a principal broker, the broker shall provide a copy of the written disclosure statement under par. (a) to any person who is not the principal broker's client and who receives brokerage services from the broker within the scope of the agreement between the broker and the principal broker.

AB783,16,16 (2) (a) Except as provided in sub. (b), a broker shall provide to a client a copy of the following written disclosure statement not later than the time the broker enters into an agency agreement with the client:

AB783,16,17 BROKER DISCLOSURE TO CLIENTS

AB783,16,19 Under Wisconsin law, a broker owes certain duties to all parties to a transaction:

AB783,16,20 The duty to provide brokerage services to you fairly and honestly.

AB783,16,22 The duty to exercise reasonable skill and care in providing brokerage services to you.

AB783,16,25 The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law.

AB783,17,2 The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

AB783,17,5 The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential information or the confidential information of other parties.

AB783,17,6 The duty to safeguard trust funds and other property the broker holds.

AB783,17,8 The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

AB783,17,10 Because you have entered into an agency agreement with a broker, you are the broker's client. A broker owes additional duties to a client.

AB783,17,14 The broker will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the broker from this duty. The broker must provide you with all material facts affecting the transaction, not just adverse facts.

AB783,17,16 The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement.

AB783,17,17 The broker will negotiate for you, unless you release the broker from this duty.

AB783,17,21 The broker will not place the broker's interests ahead of your interests. The broker will not, unless required by law, give information or advice to other parties who are not the broker's clients, if giving the information or advice is contrary to your interests.

AB783,17,23 If you become involved in a transaction in which another party is also the broker's client (a "multiple representation relationship"), different duties may apply.

AB783,17,25 Multiple Representation Relationships And Designated Agency

AB783,18,4 A multiple representation relationship exists if a broker has an agency agreement with more than one client who is a party in the same transaction. In a multiple representation relationship, if all of the broker's clients in the transaction consent, the broker may provide services to the clients through designated agency.

AB783,18,13 Designated agency means that different salespersons employed by the broker will negotiate on behalf of you and the other client or clients in the transaction, and the broker's duties will remain the same. Each salesperson will provide information, opinions, and advice to the client for whom the salesperson is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the broker's other clients. A salesperson will not reveal any of your confidential information to another party unless required to do so by law.

AB783,18,21 If a designated agency relationship is not in effect you may authorize or reject a multiple representation relationship. If you authorize a multiple representation relationship the broker may provide brokerage services to more than one client in a transaction but neither the broker nor any of the broker's salespersons may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. If you do not consent to a multiple representation relationship the broker will not be allowed to provide brokerage services to more than one client in the transaction.

AB783,18,22 INITIAL ONLY ONE OF THE THREE LINES BELOW:

AB783,18,23 ________I consent to designated agency.

AB783,18,25 ________I consent to multiple representation relationships, but I do not consent to designated agency.

AB783,19,1 ________I reject multiple representation relationships.

AB783,19,10 NOTE: YOU MAY WITHDRAW YOUR CONSENT TO DESIGNATED AGENCY OR TO MULTIPLE REPRESENTATION RELATIONSHIPS BY WRITTEN NOTICE TO THE BROKER AT ANY TIME. YOUR BROKER IS REQUIRED TO DISCLOSE TO YOU IN YOUR AGENCY AGREEMENT THE COMMISSION OR FEES THAT YOU MAY OWE TO YOUR BROKER. IF YOU HAVE ANY QUESTIONS ABOUT THE COMMISSION OR FEES THAT YOU MAY OWE BASED UPON THE TYPE OF AGENCY RELATIONSHIP YOU SELECT WITH YOUR BROKER YOU SHOULD ASK YOUR BROKER BEFORE SIGNING THE AGENCY AGREEMENT.

AB783,19,11 SUBAGENCY

AB783,19,16 The broker may, with your authorization in the agency agreement, engage other brokers who assist your broker by providing brokerage services for your benefit. A subagent will not put the subagent's own interests ahead of your interests. A subagent will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.

AB783,19,19 Please review this information carefully. A broker or salesperson can answer your questions about brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home inspector.

AB783,19,22 This disclosure is required by s. 452.135 of the Wisconsin statutes and is for information only. It is a plain-language summary of a broker's duties to you under section 452.133 (3) of the Wisconsin statutes.

AB783,20,3 (b) If a client enters into an agency agreement with a broker to receive brokerage services related to real estate primarily intended for use as a residential property containing one to 4 dwelling units, and the written disclosure statement under par. (a) is not incorporated into the agency agreement, the broker shall request the client's signed acknowledgment that the client has received a copy of the written disclosure statement.

AB783, s. 45 Section 45. 452.137 of the statutes is repealed.

AB783, s. 46 Section 46. 452.138 of the statutes is amended to read:

AB783,20,11 452.138 Brokers providing services in more than one transaction. A broker may provide brokerage services simultaneously to more than one party in different transactions unless the broker agrees with a client that the broker is to provide brokerage services only to that client. If the broker and a client agree that the broker is to provide brokerage services only to that client, the agency agreement under s. 452.135 (1) shall contain a statement of that agreement.

AB783, s. 47 Section 47. 452.139 (1) of the statutes is amended to read:

AB783,20,18 452.139 (1) Fiduciary Common law duties of broker. The duties of a broker specified in this chapter or in rules promulgated under this chapter shall supersede any fiduciary duties of a broker to a party based on duties or obligations under common law principles of agency to the extent that those common law fiduciary duties or obligations are inconsistent with the duties specified in this chapter or in rules promulgated under this chapter.

AB783, s. 48 Section 48. 452.14 (3) (f) of the statutes is amended to read:

AB783,21,2 452.14 (3) (f) Accepted from any person except the broker's, salesperson's, or time-share salesperson's employer, if the broker, salesperson, or time-share salesperson is employed as a salesperson or time-share salesperson by a broker, a commission or valuable consideration as a salesperson or time-share salesperson for the performance of any act specified in this chapter or as compensation for referring a person to another broker, salesperson, or time-share salesperson or to any other person in connection with a real estate transaction;

AB783, s. 49 Section 49. Initial applicability.

AB783,21,8 (1) The treatment of sections 452.133 (1) (intro.) (a), (b), (c), (d), (e), (f), and (g), (2) (intro.), (am), (b), (c), and (d), (4), (5), and (6) and 452.134 of the statutes, the renumbering and amendment of section 452.133 (2) (a) of the statutes, and the creation of section 452.133 (2) (a) 2. of the statutes first apply to agency agreements entered into, modified, or renewed on the effective date of this subsection.

AB783,21,10 (2) The treatment of section 452.12 (3) of the statutes first applies to brokerage services provided on the effective date of this subsection.

AB783, s. 50 Section 50. Effective date.

AB783,21,13 (1) This act takes effect on the first day of the 6th month beginning after the effective date of this subsection.

AB783,21,14 (End)