AB456: Bill Text

AB456,27,13 452.133 (title) Duties of brokers licensees.

AB456,91 Section 91. 452.133 (1) (intro.), (c), (d), (e), (f) and (g) of the statutes are amended to read:

AB456,27,18 452.133 (1) Broker's duties Duties to all persons in parties to a transaction. (intro.) A broker who is firm providing brokerage services to a person in party to a transaction owes all of the following duties to the person party:

AB456,27,22 (c) The duty to timely disclose in writing all material adverse facts that the broker firm knows and that the person party does not know or cannot discover through reasonably vigilant observation, unless the disclosure of a material adverse fact is prohibited by law.

AB456,28,5 (d) The duty to keep confidential any information given to the broker firm in confidence, or any information obtained by the broker firm that he or she the firm knows a reasonable person would want to be kept confidential, unless the information must be disclosed by law or the person whose interests may be adversely affected by the disclosure specifically authorizes the disclosure of particular information. A broker The firm shall continue to keep the information confidential after the transaction is complete and after the broker firm is no longer providing brokerage services to the person party.

AB456,28,9 (e) The duty to provide accurate information about market conditions that affect the person's transaction, within a reasonable time after the person's a request for such information by the party, unless disclosure of the information is prohibited by law.

AB456,28,11 (f) The duty to safeguard trust funds and other property held by the broker as required by rules promulgated by the department under s. 452.13 (5).

AB456,28,14 (g) When the broker firm 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.

AB456,92 Section 92. 452.133 (2) (intro.), (a) 1. and 2., (b) and (c) of the statutes are amended to read:

AB456,28,20 452.133 (2) Broker's duties to a client Duties to clients. (intro.) A broker firm providing brokerage services to his or her a client owes the client the duties that the broker firm owes to a person party under sub. (1) and all of the following additional duties:

AB456,28,21 (a) 1. Placing the client's interests ahead of the broker's interests of the firm.

AB456,29,2 2. Placing the client's interests ahead of the interests of persons in the transaction who are not the broker's firm's clients by not disclosing to persons in the transaction other than the broker's firm's clients information or advice the disclosure of which is contrary to the interests of a client of the broker firm, unless the disclosure is required by law.

AB456,29,7 (b) The duty to disclose to the client all information known by the broker firm that is material to the transaction and that is not known by the client or discoverable by the client through reasonably vigilant observation, except for confidential information under sub. (1) (d) and other information the disclosure of which is prohibited by law.

AB456,29,11 (c) The duty to fulfill any obligation required by the agency agreement, and any order of the client that is within the scope of the agency agreement, that is not inconsistent with another duty that the broker firm has under this chapter or any other law.

AB456,93 Section 93. 452.133 (3) of the statutes is amended to read:

AB456,29,14 452.133 (3) Prohibited conduct. In providing brokerage services, a broker licensee may not do any of the following:

AB456,29,17 (a) Accept any fee or compensation related to the transaction from any person other than the broker's licensee's client, unless the broker has principal firm, or firm, without the prior written consent of all parties to the transaction.

AB456,29,24 (b) Act in a transaction on the broker's licensee's own behalf, on behalf of the broker's licensee's immediate family if the firm is an individual, on behalf of the licensee's firm, or on behalf of any organization or business entity in which the broker licensee has an interest, unless without the broker has the prior written consent of all parties to the transaction. For the purpose of complying with this paragraph, a licensee shall obtain the written consent in the offer to purchase, option, lease, or other transaction contract.

AB456,30,6 (c) Except as provided in s. 452.19 (1), refer, recommend, or suggest to a party to the transaction the services of an individual or entity from which the broker licensee may receive compensation for a referral or in which the broker licensee has an interest, unless the broker licensee has disclosed in writing the fact that he or she the licensee may receive compensation or has disclosed his or her in writing an interest in the individual or entity providing the services.

AB456,94 Section 94. 452.133 (4) (a) and (b) 1. and 2. of the statutes are amended to read:

AB456,30,10 452.133 (4) (a) A subagent owes all persons parties to whom a broker the subagent is providing brokerage services in a transaction the duties specified in sub. (1) but does not owe the clients of the principal broker firm the duties under sub. (2).

AB456,30,13 (b) 1. Place the subagent's interests ahead of the interests of the clients of the principal broker firm in the transaction in which the subagent has been engaged by the principal broker firm.

AB456,30,17 2. Provide advice or opinions to parties in the transaction if providing the advice or opinions is contrary to the interests of the clients of the principal broker firm in the transaction in which the subagent has been engaged by the principal broker firm, unless required by law.

AB456,95 Section 95. 452.133 (4m) of the statutes is created to read:

AB456,30,22 452.133 (4m) Duties and prohibitions; application to licensees. (a) A firm's duties under sub. (1) extend to each licensee associated with that firm, and each licensee associated with a firm owes the same duties to a party that the firm owes to that party under sub. (1).

AB456,31,2 (b) Except as provided in s. 452.134 (3) (b), a firm's duties under sub. (2) extend to each licensee associated with that firm, and each licensee associated with a firm owes the same duties to a client of the firm that the firm owes to that client under sub. (2).

AB456,31,5 (c) 1. A subagent's duties under sub. (4) (a) extend to each licensee associated with that subagent, and each licensee associated with a subagent owes the same duties to a party that the subagent owes to that party under sub. (4) (a).

AB456,31,8 2. The prohibitions that apply to a subagent under sub. (4) (b) extend to each licensee associated with that subagent, and no licensee associated with a subagent may take any action that the subagent is prohibited from taking under sub. (4) (b).

AB456,96 Section 96. 452.133 (5) of the statutes is amended to read:

AB456,31,19 452.133 (5) Duties without agency or subagency relationship. If a broker firm is providing brokerage services to a person who is a party or a prospective party to a current or prospective transaction, and the broker firm does not have an agency agreement with the person and is not a subagent of another broker firm in the transaction, then the broker owes firm and any licensees associated with the firm owe the person the duties under sub. (1) and may not, unless required by law, provide advice or opinions relating to the transaction in which the person is receiving brokerage services if providing the advice or opinions is contrary to the interests of a party to a current or prospective transaction with the person receiving the brokerage services.

AB456,97 Section 97. 452.133 (6) (intro.) and (a) of the statutes are amended to read:

AB456,31,25 452.133 (6) Waiver of duties. (intro.) 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 firm or a licensee associated with the firm provides to the client a written disclosure containing all of the following:

AB456,32,3 (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 firm and any licensees associated with the firm will have no legal duty to perform the duty imposed by sub. (2) (d).

AB456,98 Section 98. 452.134 (1) (a) of the statutes is amended to read:

AB456,32,9 452.134 (1) (a) Subject to par. (b), a broker firm and any licensees associated with the firm may provide brokerage services to any person in party to a transaction, whether or not the broker firm has entered into an agency agreement with a party to the transaction or the broker firm has been engaged to provide brokerage services in the transaction as a subagent.

AB456,99 Section 99. 452.134 (1) (b) of the statutes is amended to read:

AB456,32,13 452.134 (1) (b) A broker firm and any licensees associated with the firm may not negotiate on behalf of a party to a transaction unless a party to the transaction is one of the following:

AB456,32,14 1. The broker's firm's client.

AB456,32,16 2. A client of a principal broker firm who has engaged the broker firm as a subagent.

AB456,100 Section 100. 452.134 (2) of the statutes is amended to read:

AB456,32,22 452.134 (2) Multiple representation relationships; consent required. A broker firm and any licensees associated with the firm may not provide brokerage services in a multiple representation relationship unless all of the broker's firm's clients in the multiple representation relationship have consented to a multiple representation relationship in writing.

AB456,101 Section 101. 452.134 (3) of the statutes is amended to read:

AB456,33,3 452.134 (3) Designated agency; consent required. (a) A broker firm in a multiple representation relationship may not engage in designated agency unless all of the broker's firm'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 firm at any time.

AB456,33,10 (b) If a broker firm is engaged in designated agency, the broker's employee who licensee associated with the firm that is negotiating on behalf of a client of the broker firm in the transaction may provide to the client on whose behalf the employee licensee 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 firm's clients ahead of the interests of another client of the broker firm.

AB456,102 Section 102. 452.134 (4) of the statutes is amended to read:

AB456,33,17 452.134 (4) Multiple representations relationship representation relationships without designated agency. If a broker's firm's client in a multiple representation relationship does not consent to designated agency or withdraws consent to designated agency, the broker firm and the broker's employees any licensees associated with the firm may not place the interests of any client ahead of the interests of any other in the negotiations.

AB456,103 Section 103. 452.135 (1) and (2) of the statutes are amended to read:

AB456,33,22 452.135 (1) (a) A broker No firm, and no licensee associated with a firm, may not negotiate on behalf of a party who is not the broker's firm's client unless the broker firm, or a licensee associated with the firm, provides to the party a copy of the following written disclosure statement:

AB456,33,23 BROKER DISCLOSURE TO CUSTOMERS

AB456,34,5 You are a customer of the broker brokerage firm (hereinafter firm). The broker firm is either an agent of another party in the transaction or a subagent of another broker who firm that is the agent of another party in the transaction. The A broker, or a salesperson acting on behalf of the broker, firm may provide brokerage services to you. Whenever the broker firm is providing brokerage services to you, the broker owes firm and its brokers and salespersons (hereinafter agents) owes you, the customer, the following duties:

AB456,34,6 The duty to provide brokerage services to you fairly and honestly.

AB456,34,8 The duty to exercise reasonable skill and care in providing brokerage services to you.

AB456,34,11 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.

AB456,34,13 The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

AB456,34,16 The duty to protect your confidentiality. Unless the law requires it, the broker firm and its agents will not disclose your confidential information or the confidential information of other parties.

AB456,34,18 The duty to safeguard trust funds and other property the broker holds held by the firm or its agents.

AB456,34,20 The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

AB456,34,24 Please review this information carefully. A broker or salesperson An agent of the firm 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.

AB456,35,3 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 the duties to a customer under section 452.133 (1) of the Wisconsin statutes.

AB456,35,9 (b) If a broker firm is providing brokerage services as a subagent to a principal broker firm, the broker subagent, or a licensee associated with the subagent, shall provide a copy of the written disclosure statement under par. (a) to any person who is not the principal broker's firm's client and who receives brokerage services from the broker subagent within the scope of the agreement between the broker subagent and the principal broker firm.

AB456,35,12 (2) (a) Except as provided in par. (b), a broker firm shall provide to a client a copy of the following written disclosure statement not later than the time the broker firm enters into an agency agreement with the client:

AB456,35,13 BROKER DISCLOSURE TO CLIENTS

AB456,35,16 Under Wisconsin law, a broker owes brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe certain duties to all parties to a transaction:

AB456,35,17 The duty to provide brokerage services to you fairly and honestly.

AB456,35,19 The duty to exercise reasonable skill and care in providing brokerage services to you.

AB456,35,22 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.

AB456,35,24 The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

AB456,36,3 The duty to protect your confidentiality. Unless the law requires it, the broker firm and its agents will not disclose your confidential information or the confidential information of other parties.

AB456,36,5 The duty to safeguard trust funds and other property the broker firm or its agents holds.

AB456,36,7 The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

AB456,36,10 Because you have entered into an agency agreement with a broker firm, you are the broker's firm's client. A broker firm owes additional duties to you as a client. of the firm:

AB456,36,14 The broker firm or one of its agents will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the broker firm from this duty. The broker firm or one of its agents must provide you with all material facts affecting the transaction, not just adverse facts.

AB456,36,17 The broker firm and its agents will fulfill the broker's firm's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement.

AB456,36,19 The broker firm and its agents will negotiate for you, unless you release the broker them from this duty.

AB456,36,23 The broker firm and its agents will not place the broker's their interests ahead of your interests. The broker firm and its agents will not, unless required by law, give information or advice to other parties who are not the broker's firm's clients, if giving the information or advice is contrary to your interests.

AB456,37,3 If you become involved in a transaction in which another party is also the broker's firm's client (a "multiple representation relationship"), different duties may apply.

AB456,37,5 MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY

AB456,37,11 A multiple representation relationship exists if a broker firm 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 If you and the firm's other clients in the transaction consent, the broker firm may provide services to the clients through designated agency, which is one type of multiple representation relationship.

AB456,37,21 Designated agency means that different salespersons employed by the broker agents with the firm will negotiate on behalf of you and the other client or clients in the transaction, and the broker's firm's duties to you as a client will remain the same. Each salesperson agent will provide information, opinions, and advice to the client for whom the salesperson agent 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 firm's other clients. A salesperson An agent will not reveal any of your confidential information to another party unless required to do so by law.

AB456,38,6 If a designated agency relationship is not in effect authorized by you or other clients in the transaction, you may still authorize or reject a different type of multiple representation relationship. If you authorize a multiple representation relationship in which the broker firm may provide brokerage services to more than one client in a transaction but neither the broker firm nor any of the broker's salespersons its agents 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 Under this neutral approach, the same agent may represent more than one client in a transaction.

AB456,38,8 If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.

AB456,38,10 INITIAL CHECK ONLY ONE OF THE THREE LINES BELOW:

AB456,38,13 ________I consent to The same firm may represent me and the other party as long as the same agent is not representing us both. (multiple representation relationship with designated agency.)

AB456,38,17 ________I consent to The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved. (multiple representation relationships, but I do not consent to relationship without designated agency.)

AB456,38,19 ________The same firm cannot represent both me and the other party in the same transaction. (I reject multiple representation relationships .)

AB456,39,3 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.

AB456,39,10 NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. 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 firm, you should ask your firm before signing the agency agreement.

AB456,39,11 SUBAGENCY

AB456,39,17 The broker Your firm may, with your authorization in the agency agreement, engage other brokers who firms (subagent firms) to assist your broker firm by providing brokerage services for your benefit. A subagent firm and the agents with the subagent firm will not put the subagent's their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.