452.133(2)(a)
(a) Loyally represent the client's interests by placing the client's interests ahead of the interests of any other party, unless loyalty to a client violates the broker's duties under
sub. (1) or
s. 452.137 (2).
452.133(2)(b)
(b) Disclose to the client all information known by the broker 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.
452.133(2)(c)
(c) Fulfill any obligation required by the agency agreement, and any order of the client that is within the scope of the agency agreement, that are not inconsistent with another duty that the broker has under this chapter or any other law.
452.133(3)
(3) Prohibited conduct. In providing brokerage services, a broker may not do any of the following:
452.133(3)(a)
(a) Accept any fee or compensation related to the transaction from any person other than the broker's client, unless the broker has the written consent of all parties to the transaction.
452.133(3)(b)
(b) Act in a transaction on the broker's own behalf, on behalf of the broker's immediate family, or on behalf of any organization or business entity in which the broker has an interest, unless the broker has the written consent of all parties to the transaction.
452.133(3)(c)
(c) Except as provided in
s. 452.19, refer, recommend or suggest to a party to the transaction the services of an individual or entity from which the broker may receive compensation for a referral or in which the broker has an interest, unless the broker has disclosed the fact that he or she may receive compensation or has disclosed his or her interest in the individual or entity providing the services.
452.133 History
History: 1993 a. 127;
1995 a. 400.
452.133 Cross-reference
Cross Reference: See also ch.
RL 24, Wis. adm. code.
452.133 Annotation
The New Real Estate Agency Law: Redefining the Role of Real Estate Brokers. Smith and Staff. Wis. Law. Oct. 1994.
452.135
452.135
Confirmation and disclosure of relationship. 452.135(1)(1) No broker may provide brokerage services without an agency agreement that authorizes the broker to provide those brokerage services. The agency agreement shall contain a statement of the terms and conditions of the brokerage services that the broker will provide, including a statement required under
s. 452.138, if applicable.
452.135(2)
(2) No broker may provide brokerage services to a party to a transaction unless the broker has provided to the party a written agency disclosure form containing all of the following:
452.135(2)(a)
(a) A statement of which party is the broker's client or, if the broker is providing brokerage services to more than one client under
s. 452.137, a statement of which parties are the broker's clients.
452.135(2)(d)
(d) A statement regarding confidentiality that shall be in the following form:
NOTICE TO CLIENTS AND CUSTOMERS
A BROKER IS REQUIRED TO MAINTAIN THE CONFIDENTIALITY OF ALL INFORMATION GIVEN TO THE BROKER IN CONFIDENCE AND OF ALL INFORMATION OBTAINED BY THE BROKER THAT HE OR SHE KNOWS A REASONABLE PARTY WOULD WANT TO BE KEPT CONFIDENTIAL, UNLESS THE INFORMATION IS REQUIRED TO BE DISCLOSED BY LAW. THE FOLLOWING INFORMATION IS REQUIRED TO BE DISCLOSED BY LAW:
1. MATERIAL ADVERSE FACTS, AS DEFINED IN SECTION 452.01 (5g) OF THE WISCONSIN STATUTES.
2. ANY FACTS KNOWN BY THE BROKER THAT CONTRADICT ANY INFORMATION INCLUDED IN A WRITTEN INSPECTION REPORT ON THE PROPERTY OR REAL ESTATE THAT IS THE SUBJECT OF THE TRANSACTION.
TO ENSURE THAT THE BROKER IS AWARE OF WHAT SPECIFIC INFORMATION YOU CONSIDER CONFIDENTIAL, YOU MAY LIST THAT INFORMATION IN THE SPACE BELOW THAT IS MARKED "CONFIDENTIAL INFORMATION". AT A LATER TIME, YOU MAY ALSO PROVIDE THE BROKER WITH OTHER WRITTEN NOTIFICATION OF WHAT INFORMATION YOU CONSIDER TO BE CONFIDENTIAL.
CONFIDENTIAL INFORMATION:
452.135(2)(e)
(e) Any additional information that the broker determines is necessary to clarify the broker's relationship to his or her client or customer.
452.135 History
History: 1993 a. 127.
452.137
452.137
Brokers providing services to more than one client in a transaction. 452.137(1)
(1) No broker may provide brokerage services to more than one client in a transaction without an agency agreement under
s. 452.135 (1) with each client and a written consent to multiple representation. The consent to multiple representation shall contain a statement of the broker's duties under
s. 452.133 (1) to a party to the transaction who is not a client, a statement of the broker's duties to the client under
s. 452.133 (2), and a statement that the clients understand the broker's duties and consent to the broker providing brokerage services to more than one client. The consent to multiple representation may contain additional disclosures by the broker or additional agreements between the broker and the clients that do not violate any duty of a broker under this chapter.
452.137(2)
(2) A broker who represents more than one client in a transaction owes the duties specified in
s. 452.133 (2) to each client but may not place the interests of any client ahead of the interests of another client in the transaction.
452.137(3)
(3) If a broker is providing brokerage services to more than one client in a transaction, no client may be considered to know any information that the broker knows unless the broker informs the client of that information or the client has other actual knowledge of that information.
452.137 History
History: 1993 a. 127;
1997 a. 263.
452.138
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.
452.138 History
History: 1993 a. 127.
452.138 Cross-reference
Cross Reference: See also ch.
RL 24, Wis. adm. code.
452.139
452.139
Changes in common law duties and liabilities of brokers and parties. 452.139(1)
(1)
Fiduciary 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 common law principles of agency to the extent that those common law fiduciary duties are inconsistent with the duties specified in this chapter or in rules promulgated under this chapter.
452.139(2)(a)(a) A client is not liable for a misrepresentation made by a broker in connection with the broker providing brokerage services, unless the client knows or should have known of the misrepresentation or the broker is repeating a misrepresentation made to him or her by the client.
452.139(2)(b)
(b) A broker who is providing brokerage services to a client and who retains another broker to provide brokerage services to that client is not liable for a misrepresentation made by the other broker, unless the broker knew or should have known of the other broker's misrepresentation or the other broker is repeating a misrepresentation made to him or her by the broker.
452.139(2)(c)
(c) Nothing in this subsection limits the liability of a broker under
s. 452.12 (3) for misrepresentations made by an employee who is a broker. Nothing in this subsection limits the liability of a client for a misrepresentation that the client makes in connection with brokerage services.
452.139 History
History: 1993 a. 127;
2001 a. 16.
452.139 Cross-reference
Cross Reference: See also ch.
RL 24, Wis. adm. code.
452.14
452.14
Investigation and discipline of licensees. 452.14(1)(1) The department shall, upon motion of the board or upon its own determination, conduct investigations and, as appropriate, may hold hearings and make findings, if the department receives credible information that a broker, salesperson or time-share salesperson has violated this chapter or any rule promulgated under this chapter.
452.14(2)
(2) The department shall present the findings of any investigation of a licensee or registrant to the board for its consideration. The department shall upon motion of the board, and may, upon its own determination, commence disciplinary proceedings on any matter under investigation concerning a licensee or registrant. No investigation of a licensee or registrant may be closed without motion of the board.
452.14(3)
(3) Disciplinary proceedings shall be conducted by the board according to rules adopted under
s. 440.03 (1). The board may revoke, suspend or limit any broker's, salesperson's or time-share salesperson's license or registration, or reprimand the holder of the license or registration, if it finds that the holder of the license or registration has:
452.14(3)(a)
(a) Made a material misstatement in the application for a license or registration, or in any information furnished to the board or department;
452.14(3)(b)
(b) Made any substantial misrepresentation with reference to a transaction injurious to a seller or purchaser in which the broker, salesperson or time-share salesperson acts as agent;
452.14(3)(c)
(c) Made any false promises of a character such as to influence, persuade or induce the seller or purchaser to his or her injury or damage;
452.14(3)(d)
(d) Pursued a continued and flagrant course of misrepresentation or made false promises through agents or salespersons or advertising;
452.14(3)(f)
(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;
452.14(3)(g)
(g) Represented or attempted to represent a broker other than the employer, without the express knowledge and consent of the employer;
452.14(3)(h)
(h) Failed, within a reasonable time, to account for or remit any moneys coming into the broker's, salesperson's or time-share salesperson's possession which belong to another person;
452.14(3)(i)
(i) Demonstrated incompetency to act as a broker, salesperson or time-share salesperson in a manner which safeguards the interests of the public;
452.14(3)(j)
(j) Paid or offered to pay a commission or valuable consideration to any person for acts or services in violation of this chapter;
452.14(3)(jm)
(jm) Intentionally encouraged or discouraged any person from purchasing or renting real estate in a particular area on the basis of race. If the board finds that any broker, salesperson or time-share salesperson has violated this paragraph, the board shall, in addition to any temporary penalty imposed under this subsection, apply the penalty provided in
s. 452.17 (4);
452.14(3)(k)
(k) Been guilty of any other conduct, whether of the same or a different character from that specified herein, which constitutes improper, fraudulent or dishonest dealing;
452.14(3)(n)
(n) Treated any person unequally solely because of sex, race, color, handicap, national origin, ancestry, marital status or lawful source of income.
452.14(4)
(4) If a broker is a business entity it shall be sufficient cause for reprimand or for the limitation, suspension or revocation of a broker's license that any business representative of the business entity, or anyone who has a financial interest in or is in any way connected with the operation of a brokerage business, has been guilty of any act or omission which would be cause for refusing a broker's license to such person as an individual.
452.14(4m)
(4m) In addition to or in lieu of a reprimand, the issuance of a private letter of warning or a revocation, limitation or suspension of a license or certificate of registration under
sub. (3), the board may do any of the following:
452.14(4m)(a)
(a) Assess against a person who is licensed or registered under this chapter a forfeiture of not more than $1,000 for each violation enumerated under
sub. (3).
452.14(4m)(b)
(b) Require a licensee to successfully complete education or training, in addition to any education or training required for licensure or registration or for renewal of a license or certificate under this chapter, as a condition of continued licensure or registration or reinstatement of a license or certificate.
452.14(5)
(5) The department may seek judicial review under
ch. 227 of any final decision of the board. The department shall be represented in such review proceedings by an attorney within the department. Upon request of the board, the attorney general may represent the board. If the attorney general does not represent the board, the board may retain special counsel which shall be paid for out of the appropriation under
s. 20.165 (1) (g).
452.14 Cross-reference
Cross Reference: See also chs.
RL 15,
16, and
24, Wis. adm. code.
452.14 Annotation
Real estate brokers may engage in guaranteed sales plans if there is full disclosure and the broker does not engage in fraud, misrepresentation, or improper dealing. 61 Atty. Gen. 3.
452.14 Annotation
Provisions in Executive Order 67 (1973), with respect to duty of real estate brokers to advise prospective purchasers of floodplain zoning status of property, do not constitute a new standard but suggest a course of action that the real estate examining board might take. The action to be taken would depend on the facts in each case. 63 Atty. Gen. 236.
452.14 Annotation
Neither s. 440.20, 452.10 (2), 1977 stats., nor the rules of the department of regulation and licensing require the board to hold a hearing when a citizen files a verified complaint with the board requesting institution of disciplinary proceedings against a licensee. 68 Atty. Gen. 30.
452.15
452.15
Ineligibility. No license or certificate of registration may be issued under this chapter to any person whose license or certificate under this chapter has been revoked until the expiration of a period determined in each case by the board or, in the case of revocation under
s. 452.17 (4) (a) 2., a period determined in each case by the board of not less than 5 years from the date the revocation became finally effective.
452.17(1)(1) Any person who engages in or follows the business or occupation of, or advertises or holds himself or herself out as or acts temporarily or otherwise as a broker or salesperson in this state without a license under this chapter shall be prosecuted by the district attorney in the county where the violation occurs or by the attorney general and may be fined not more than $1,000 or imprisoned not more than 6 months or both.
452.17(2)
(2) Any person who engages in or follows the business or occupation of, or advertises or holds himself or herself out as or acts temporarily or otherwise as, a time-share salesperson in this state without being registered with the department shall be prosecuted by the district attorney in the county where the violation occurs and may be fined not less than $25 nor more than $200 or imprisoned not less than 10 days nor more than 6 months or both.
452.17(3)
(3) Any person who otherwise violates any provision of this chapter may be fined not more than $1,000 or imprisoned for not more than 6 months or both.
452.17(4)(a)1.
1. Shall, for the first offense, suspend the license or registration of the broker, salesperson or time-share salesperson for not less than 90 days.
452.17(4)(a)2.
2. Shall, for the 2nd offense, revoke the license or registration of the broker, salesperson or time-share salesperson.
452.18
452.18
Court review. Except as provided in
s. 73.0301 (2) (b) 1. a. and
2., orders of the board and department shall be subject to review as provided in
ch. 227.
452.18 History
History: 1981 c. 94;
1997 a. 237.
452.19
452.19
Fee-splitting. No licensed broker may pay a fee or a commission or any part thereof for performing any act specified in this chapter or as compensation for a referral or as a finder's fee to any person who is not licensed or registered under this chapter or who is not regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States or a foreign country.
452.19 Annotation
Under s. 452.03 an agreement to pay a real estate brokerage commission to a person not licensed as a broker is void at its inception. Using a licensed broker who provides no actual services as a conduit for a fee to an unlicensed person does not create a co-brokerage arrangement authorized by s. 452.19. Badger III Ltd. v. Howard, Needles, Tammen & Bergendoff,
196 Wis. 2d 891,
539 N.W.2d 904 (Ct. App. 1995).
452.20
452.20
Limitation on actions for commissions. No person engaged in the business or acting in the capacity of a broker, salesperson or time-share salesperson within this state may bring or maintain an action in the courts of this state for the collection of a commission or compensation for the performance of any act mentioned in this chapter without alleging and proving that he or she was a duly licensed broker, salesperson or registered time-share salesperson at the time the alleged cause of action arose.
