AB456,19,1110
452.10
(2) (a) Each new application for a
broker's or salesperson's license
under
11this chapter shall be for the remainder of the biennial license period.
AB456,66
12Section
66. 452.10 (4) (a) of the statutes is repealed.
AB456,67
13Section
67. 452.10 (4) (b) of the statutes is renumbered 452.30 (5) and
14amended to read:
AB456,19,2415
452.30
(5) No
salesperson, time-share salesperson or broker may be employed
16by a broker whose licensee may be associated with a firm if the firm's license has been
17suspended or revoked during the period of suspension or revocation. The
18salesperson, time-share salesperson or broker licensee may
apply for transfer to 19some other licensed broker by complying with this chapter become associated with
20another firm, provided the
salesperson, time-share salesperson or broker licensee 21is not a party to the activities causing the suspension or revocation of the
firm's 22license
of the broker. If the licensee becomes associated with another firm, the
23licensee may not provide brokerage services on behalf of that firm until sub. (1) (b)
24has been satisfied.
AB456,68
25Section
68. 452.11 (1) of the statutes is amended to read:
AB456,20,2
1452.11
(1) A nonresident may become a broker
, or salesperson
or time-share
2salesperson by conforming to all the provisions of this chapter.
AB456,69
3Section
69. 452.12 (2) (a) of the statutes is amended to read:
AB456,20,124
452.12
(2) (a) A
broker's license may be issued to a business entity if the
5business entity has at least one business representative licensed as a broker. The
6license issued to the business entity entitles each business representative of the
7business entity
who is a licensed
as a broker to act as a broker on behalf of the
8business entity.
A broker may act as a business representative for more than one
9business entity if the broker obtains the express, written consent of each business
10entity for which the broker desires to act as a business representative. A broker may
11act as a broker on behalf each business entity for which it is serving as a business
12representative.
AB456,70
13Section
70. 452.12 (2) (c) of the statutes is amended to read:
AB456,20,2014
452.12
(2) (c) Application for a
business entity broker's license
to be issued to
15a business entity shall be made on forms prescribed by the board, listing the names
16and addresses of all business representatives
and the license numbers of all business
17representatives that are licensed brokers, and shall be accompanied by the initial
18credential fee determined by the department under s. 440.03 (9) (a). If there is a
19change in any of the business representatives, the change shall be reported to the
20board, on the same form, within 30 days after the effective date of the change.
AB456,71
21Section
71. 452.12 (3) of the statutes is amended to read:
AB456,21,322
452.12
(3) Broker's liability Firm's responsibility for acts of employees
23licensees. Subject to s. 452.139 (3),
each broker shall supervise, and a firm is
24responsible for
, the brokerage services provided on behalf of the
broker firm by
any
25broker, salesperson, or time-share salesperson who is an employee of the broker a
1licensee associated with the firm only to the extent that the firm fails to comply with
2s. 452.132 and any rules promulgated under s. 452.07 (1m) with respect to that
3licensee.
AB456,72
4Section
72. 452.12 (4) of the statutes is amended to read:
AB456,21,85
452.12
(4) Register of brokers and salespersons licensees. The board shall
6include in the register the board maintains under s. 440.035 (4) the names of all
7brokers and salespersons persons whose licenses
issued under this chapter were
8revoked within the past 2 years. The register shall be available for purchase at cost.
AB456,73
9Section
73. 452.12 (5) (b) of the statutes is amended to read:
AB456,21,1310
452.12
(5) (b) If an application for renewal
of a license issued to an individual 11is not filed with the board on or before the renewal date
with the proof required under
12par. (c) or if the renewal is not granted, the applicant may not engage in any of the
13activities covered by the license until the license is renewed or a new license is issued.
AB456,74
14Section
74. 452.12 (5) (bm) of the statutes is created to read:
AB456,21,1715
452.12
(5) (bm) If an application for renewal of a license issued to a firm is not
16filed with the board on or before the renewal date or if the renewal is not granted,
17all of the following apply:
AB456,21,1918
1. The firm may not engage in any of the activities covered by the license until
19the license is renewed or a new license is issued.
AB456,21,2220
2. Any licensees associated with the firm may not engage in any of the activities
21covered by the firm's license on behalf of the firm until the firm's license is renewed
22or a new license is issued.
AB456,22,223
3. A licensed individual broker or licensed broker business entity who is serving
24as a business representative for the firm shall notify each licensee associated with
25the firm that the firm's license was not renewed and, within 10 days after notifying
1a licensee, file with the department a notice of termination for each such licensee on
2a form prescribed by the department.
AB456,75
3Section
75. 452.12 (5) (c) of the statutes is amended to read:
AB456,22,64
452.12
(5) (c) At the time of renewal, each broker or salesperson
who is an
5individual shall submit proof of attendance at and successful completion of
6continuing education programs or courses approved under s. 452.05 (1) (g).
AB456,76
7Section
76. 452.12 (6) of the statutes is repealed.
AB456,77
8Section
77. 452.13 (1) (a) of the statutes is amended to read:
AB456,22,139
452.13
(1) (a) "Client funds" means all downpayments, earnest money deposits
, 10or other money related to a conveyance of real estate that is received by a
broker,
11salesperson or time-share salesperson licensee on behalf of
the broker's,
12salesperson's or time-share salesperson's principal a firm or any other person.
13"Client funds" does not include promissory notes.
AB456,78
14Section
78. 452.13 (2) (a) of the statutes is amended to read:
AB456,22,2015
452.13
(2) (a) A
broker who firm that holds client funds shall establish an
16interest-bearing common trust account in a depository institution. The
17interest-bearing common trust account shall earn interest at a rate not less than
18that applicable to individual accounts of the same type, size
, and duration and for
19which withdrawals or transfers can be made without delay, subject to any notice
20period that the depository institution is required to observe by law or regulation.
AB456,79
21Section
79. 452.13 (2) (b) of the statutes is amended to read:
AB456,22,2322
452.13
(2) (b) Any
broker who firm that maintains an interest-bearing common
23trust account shall do all of the following:
AB456,23,3
11. Register with the department
of safety and professional services the name
2and address of the depository institution and the number of the interest-bearing
3common trust account.
AB456,23,54
2. Notify the department
of safety and professional services when any of the
5information required under subd. 1. is changed.
AB456,23,106
3. Furnish the department
of safety and professional services with a letter
7authorizing the department
of safety and professional services and the department
8of administration to examine and audit the interest-bearing common trust account
9whenever
the either department
of safety and professional services or the
10department of administration considers it necessary.
AB456,80
11Section
80. 452.13 (2) (bm) of the statutes is amended to read:
AB456,23,1412
452.13
(2) (bm) The department
of safety and professional services shall
13forward to the department of administration the information and documents
14furnished under par. (b).
AB456,81
15Section
81. 452.13 (2) (c) of the statutes is amended to read:
AB456,23,1716
452.13
(2) (c) A
broker firm shall deposit all client funds in the interest-bearing
17common trust account.
AB456,82
18Section
82. 452.13 (2) (e) (intro.) of the statutes is amended to read:
AB456,23,2019
452.13
(2) (e) (intro.) For each interest-bearing common trust account, the
20broker firm shall direct the depository institution to do all of the following:
AB456,83
21Section
83. 452.13 (2) (e) 2. of the statutes is amended to read:
AB456,24,222
452.13
(2) (e) 2. When the interest remittance is sent, furnish to the
23department of administration and to the
broker firm maintaining the
24interest-bearing common trust account a statement that includes the name of the
25broker firm for whose account the remittance is made, the rate of interest applied,
1the amount of service charges or fees deducted, if any, and the account balance for
2the period that the statement covers.
AB456,84
3Section
84. 452.13 (2) (f) 1. of the statutes is amended to read:
AB456,24,74
452.13
(2) (f) 1. May not assess a service charge or fee that is due on an
5interest-bearing common trust account against any
broker firm or, except as
6provided in subd. 3., against any other account, regardless of whether the same
7broker firm maintains the other account.
AB456,85
8Section
85. 452.13 (3) of the statutes is amended to read:
AB456,24,169
452.13
(3) Deposit provisions. A
broker who firm that deposits client funds in
10an interest-bearing common trust account in compliance with this section may not
11be held liable to the owner or beneficial owner of the client funds for damages due
12to compliance with this section. A
broker, salesperson or time-share salesperson
13who licensee that deposits client funds in an interest-bearing common trust account
14in compliance with this section
on behalf of a firm is not required to disclose
15alternative depository arrangements that could be made by the parties or to disclose
16that a deposit will be made under this section.
AB456,86
17Section
86. 452.13 (4) of the statutes is amended to read:
AB456,24,1918
452.13
(4) Trust account optional. This section does not require a
broker firm 19to hold client funds or require a person to transfer client funds to a
broker firm.
AB456,87
20Section
87. 452.13 (5) of the statutes is amended to read:
AB456,24,2321
452.13
(5) Rules. In consultation with the department
of safety and
22professional services, the department of administration shall promulgate rules
23necessary to administer this section.
AB456,88
24Section
88. 452.132 of the statutes is created to read:
AB456,25,3
1452.132 Responsibilities of firms and licensees. (1) A firm shall supervise
2the brokerage service activities of each licensee associated with the firm, including
3by doing all of the following:
AB456,25,44
(a) Ensuring that a supervising broker for the firm complies with sub. (4).
AB456,25,65
(b) Providing a licensee with reasonable access to a supervising broker for the
6purpose of consultation regarding real estate practice issues.
AB456,25,7
7(2) A firm shall do all of the following:
AB456,25,118
(a) Provide each licensee associated with the firm with a written statement of
9the procedures under which the firm and licensees associated with the firm must
10operate with respect to handling leases, agency agreements, offers to purchase, and
11other documents and records relating to transactions.
AB456,25,1412
(b) Notify each licensee associated with the firm where a copy of the rules
13promulgated by the board related to the conduct, ethical practices, and
14responsibilities of licensees may be obtained.
AB456,25,1715
(c) Before a licensee becomes associated with the firm and at the beginning of
16each biennial licensure period, ensure that the licensee holds a valid license or
17registration.
AB456,25,19
18(3) A firm shall be responsible for the custody and safety of all documents and
19records relating to transactions submitted to the firm as required under sub. (6) (b).
AB456,25,22
20(4) (a) A supervising broker for a firm, as determined under sub. (5), shall
21review all of the following prior to the closing of a transaction in accordance with par.
22(b):
AB456,26,223
1. All agency agreements, offers to purchase, leases, and other documents that
24are executed by the parties and records relating to the transaction that are used by
1a licensee associated with the firm and submitted to the firm as required under sub.
2(6) (b).
AB456,26,33
2. All trust account records relating to the transaction.
AB456,26,114
(b) The review under par. (a) shall be limited to confirming that a written
5disclosure statement to a customer or client has been provided by a licensee
6associated with the firm in accordance with s. 452.135, confirming that any
7applicable form approved by the board has been used and the forms have been
8completed by filling in the blanks in a manner consistent with the structure of the
9form, and communicating to the licensee any errors in how the forms were completed
10that are apparent on the face of the document and known to the person reviewing the
11document.
AB456,26,14
12(5) (a) A firm that is a licensed broker business entity shall delegate the
13performance of the duty to supervise licensees associated with the firm to a
14supervising broker who is a licensed individual broker.
AB456,26,1815
(b) A firm that is not a licensed broker business entity may delegate the duty
16to supervise licensees associated with the firm to a supervising broker who is a
17licensed individual broker, but in the absence of a specific supervising broker
18delegation, the firm itself is deemed to be the supervising broker for that firm.
AB456,26,2119
(c) A delegation under par. (a) or (b) shall be written and signed by or on behalf
20of the delegating firm, identify the duty delegated, and be signed by the broker to
21whom the delegation is made.
AB456,26,2322
(d) A firm may delegate the duty to supervise licensees to more than one
23supervising broker.
AB456,27,2
24(6) (a) A licensee associated with a firm shall be responsible for discussing with
25the party with whom the licensee is working with or representing any error
1communicated to the licensee as provided in sub. (4) (b), and the party shall
2determine whether to request any changes to address the error.
AB456,27,63
(b) A licensee associated with a firm shall submit to the firm in a timely manner
4all agency agreements, offers to purchase, leases, and other documents that are
5executed by the parties and records related to the brokerage services provided on
6behalf of the firm and transactions that are used or received by the licensee.
AB456,89
7Section
89. 452.132 (2) (c) of the statutes, as created by 2015 Wisconsin Act
8.... (this act), is amended to read:
AB456,27,119
452.132
(2) (c) Before a licensee becomes associated with the firm and at the
10beginning of each biennial licensure period, ensure that the licensee holds a valid
11license
or registration.
AB456,90
12Section
90. 452.133 (title) of the statutes is amended to read:
AB456,27,13
13452.133 (title)
Duties of brokers licensees.
AB456,91
14Section
91. 452.133 (1) (intro.), (c), (d), (e), (f) and (g) of the statutes are
15amended to read:
AB456,27,1816
452.133
(1) Broker's duties
Duties to all persons in
parties to a transaction. 17(intro.) A
broker who is firm providing brokerage services to a
person in party to a
18transaction owes all of the following duties to the
person party:
AB456,27,2219
(c) The duty to timely disclose in writing all material adverse facts that the
20broker firm knows and that the
person party does not know or cannot discover
21through reasonably vigilant observation, unless the disclosure of a material adverse
22fact is prohibited by law.
AB456,28,523
(d) The duty to keep confidential any information given to the
broker firm in
24confidence, or any information obtained by the
broker
firm that
he or she the firm 25knows a reasonable person would want to be kept confidential, unless the
1information must be disclosed by law or the person whose interests may be adversely
2affected by the disclosure specifically authorizes the disclosure of particular
3information.
A broker The firm shall continue to keep the information confidential
4after the transaction is complete and after the
broker
firm is no longer providing
5brokerage services to the
person party.
AB456,28,96
(e) The duty to provide accurate information about market conditions that
7affect the
person's transaction, within a reasonable time after
the person's a request
8for such information by the party, unless disclosure of the information is prohibited
9by law.
AB456,28,1110
(f) The duty to safeguard trust funds and other property held
by the broker as
11required by rules promulgated
by the department under s. 452.13 (5).
AB456,28,1412
(g) When the
broker firm is negotiating on behalf of a party, the duty to present
13contract proposals in an objective and unbiased manner and disclose the advantages
14and disadvantages of the proposals.
AB456,92
15Section
92. 452.133 (2) (intro.), (a) 1. and 2., (b) and (c) of the statutes are
16amended to read:
AB456,28,2017
452.133
(2) Broker's duties to a client Duties to clients. (intro.) A
broker 18firm providing brokerage services to
his or her a client owes the client the duties that
19the
broker firm owes to a
person party under sub. (1) and all of the following
20additional duties:
AB456,28,2121
(a) 1. Placing the client's interests ahead of the
broker's interests
of the firm.
AB456,29,222
2. Placing the client's interests ahead of the interests of persons in the
23transaction who are not the
broker's firm's clients by not disclosing to persons in the
24transaction other than the
broker's firm's clients information or advice the disclosure
1of which is contrary to the interests of a client of the
broker firm, unless the disclosure
2is required by law.
AB456,29,73
(b) The duty to disclose to the client all information known by the
broker firm 4that is material to the transaction and that is not known by the client or discoverable
5by the client through reasonably vigilant observation, except for confidential
6information under sub. (1) (d) and other information the disclosure of which is
7prohibited by law.
AB456,29,118
(c) The duty to fulfill any obligation required by the agency agreement, and any
9order of the client that is within the scope of the agency agreement, that is not
10inconsistent with another duty that the
broker firm has under this chapter or any
11other law.
AB456,93
12Section
93. 452.133 (3) of the statutes is amended to read:
AB456,29,1413
452.133
(3) Prohibited conduct. In providing brokerage services, a
broker 14licensee may not do any of the following:
AB456,29,1715
(a) Accept any fee or compensation related to the transaction from any person
16other than the
broker's licensee's client,
unless the broker has principal firm, or firm,
17without the
prior written consent of all parties to the transaction.
AB456,29,2418
(b) Act in a transaction on the
broker's licensee's own behalf, on behalf of the
19broker's licensee's immediate family
if the firm is an individual, on behalf of the
20licensee's firm, or on behalf of any organization or business entity in which the
broker 21licensee has an interest,
unless
without the
broker has the prior written consent of
22all parties to the transaction.
For the purpose of complying with this paragraph, a
23licensee shall obtain the written consent in the offer to purchase, option, lease, or
24other transaction contract.