SB870,8
1Section 8. 452.14 (4m) (a) of the statutes is renumbered 452.14 (4m) (a) (intro.)
2and amended to read:
SB870,5,33 452.14 (4m) (a) (intro.) Assess a forfeiture against a licensee a as follows:
SB870,5,5 42. A forfeiture of not more than $1,000 for each violation enumerated under
5sub. (3) that is not enumerated under subd. 1.
SB870,9 6Section 9. 452.14 (4m) (a) 1. of the statutes is created to read:
SB870,5,87 452.14 (4m) (a) 1. A forfeiture of not more than $5,000 for each violation
8enumerated under sub. (3) (a), (b), (c), (d), (f), (h), (i), (im), (j), (jm), (k), or (n).
SB870,10 9Section 10. 452.14 (4r) of the statutes is amended to read:
SB870,5,1110 452.14 (4r) The board may assess against a licensee who is an individual a
11forfeiture of $1,000 $5,000 for a violation under s. 452.25 (2) (a).
SB870,11 12Section 11. 452.17 (1) of the statutes is amended to read:
SB870,5,1813 452.17 (1) Any person who engages in or follows the business or occupation of,
14or advertises or holds himself or herself out as or acts temporarily or otherwise as,
15a broker or salesperson in this state without a license under this chapter shall be
16prosecuted by the district attorney in the county where the violation occurs or by the
17attorney general and may be fined not more than $1,000 $5,000 or imprisoned not
18more than 6 months or both.
SB870,12 19Section 12. 452.17 (3) of the statutes is amended to read:
SB870,5,2220 452.17 (3) Any person who otherwise violates any provision of this chapter may
21be fined not more than $1,000 $5,000 or imprisoned for not more than 6 months or
22both.
SB870,13 23Section 13. 452.19 (1) of the statutes is amended to read:
SB870,6,524 452.19 (1) No licensee may pay a fee or a commission or any part thereof for
25performing any act specified in this chapter or as compensation for a referral or as

1a finder's fee to any person who is not licensed under this chapter or who is not
2regularly and lawfully engaged in the real estate brokerage business in another
3state, a territory or possession of the United States, or a foreign country, unless the
4person was licensed under this chapter when the commission was earned or when
5the referral fee arrangement was made
.
SB870,14 6Section 14. 452.23 (title) of the statutes is amended to read:
SB870,6,8 7452.23 (title) Disclosures, investigations and inspections by brokers
8and salespersons.
SB870,15 9Section 15. 452.23 (3) of the statutes is repealed and recreated to read:
SB870,6,1310 452.23 (3) (a) A licensee shall, except as provided in par. (b), disclose in writing
11to a party to a real estate transaction all material adverse facts known by the licensee
12that the party does not know or cannot discover through reasonably vigilant
13observation.
SB870,6,1514 (b) Paragraph (a) does not require the disclosure of a material adverse fact to
15a party if any of the following applies:
SB870,6,1716 1. The material adverse fact is addressed in a written report described under
17sub. (2) (b).
SB870,6,1918 2. The material adverse fact has otherwise been disclosed to the party in
19writing.
SB870,6,2020 3. Disclosure of the material adverse fact is prohibited by law.
SB870,16 21Section 16. 452.23 (4) of the statutes is amended to read:
SB870,6,2522 452.23 (4) In performing an investigation or inspection and in making a
23disclosure in connection with a real estate transaction, a licensee shall exercise the
24degree of care expected to be exercised by a reasonably prudent person who has the
25knowledge, skills, and training required for licensure under this chapter.
SB870,17
1Section 17. 452.23 (5) of the statutes is created to read:
SB870,7,72 452.23 (5) A licensee that in good faith provides information attributable to a
3state or local governmental or quasi-governmental entity, including an agency,
4department, board, commission, bureau, or division, or a military or public safety
5organization, may not be held civilly liable if that information is subsequently
6determined to be inaccurate. For the purpose of any proceeding, the good faith shall
7be presumed.
SB870,18 8Section 18. 710.13 of the statutes is created to read:
SB870,7,11 9710.13 Disclosures regarding real property wholesalers. (1)
10Definitions. (a) “Purchase agreement” means a contract for the sale, exchange,
11option, rental, or purchase of residential real property.
SB870,7,1412 (b) “Real property wholesaler” means a person that enters into a purchase
13agreement as a buyer and intends to assign the person's rights as buyer under the
14purchase agreement to a 3rd party for consideration.
SB870,7,1615 (c) “Residential real property" means real property in this state that includes
16one to 4 dwelling units, as defined in s. 101.61 (1).
SB870,7,18 17(2) Required disclosures. A real property wholesaler shall provide all of the
18following disclosures:
SB870,7,2119 (a) No later than entering into a purchase agreement as a buyer, written notice
20to the seller of the residential real property that the buyer is a real property
21wholesaler.
SB870,8,222 (b) No later than entering into a contract with a 3rd party to assign the real
23property wholesaler's rights as buyer under a purchase agreement to the 3rd party,
24written notice to the 3rd party that the assignor is a real property wholesaler that
25holds an equitable interest in the residential real property as a buyer under the

1purchase agreement and that the assignor is conveying the assignor's interest in the
2purchase agreement, not title to the residential real property.
SB870,8,8 3(3) Rights to rescind. (a) If a real property wholesaler fails to timely provide
4the disclosure to a seller as required under sub. (2) (a), the seller may rescind the
5purchase agreement at any time before the closing, without any liability on the
6seller's part, by providing written notice of rescission to the real property wholesaler,
7and the seller is entitled to retain any deposits or option fees paid by the real property
8wholesaler in connection with the transaction.
SB870,8,149 (b) If a real property wholesaler fails to timely provide the disclosure to a 3rd
10party assignee as required under sub. (2) (b), the assignee may rescind the
11assignment of the purchase agreement at any time before the closing, without any
12liability on the assignee's part, by providing written notice of rescission to the real
13property wholesaler, and the assignee is entitled to the return of any deposits or
14option fees paid by the assignee in connection with the transaction.
SB870,8,17 15(4) Waiver prohibited. A person may not waive the person's rights under this
16section. If the person proceeds to closing, the person's right to rescind under sub. (3)
17is terminated.
SB870,19 18Section 19. Initial applicability.
SB870,8,2119 (1) Disclosures regarding real property wholesalers. The treatment of s.
20710.13 first applies to a purchase agreement or an assignment of a purchase
21agreement entered into on the effective date of this subsection.
SB870,8,2222 (End)
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