Effective date note
NOTE: Sub. (3) is amended eff. 7-1-09 by
2007 Wis. Act 20 to read:
Effective date text
(3) The fees for examinations and licenses granted under this chapter are specified under s. 440.05, and the renewal fee for such licenses is determined by the department under s. 440.03 (9) (a).
452.10(4)(a)(a) Any licensed salesperson or broker may transfer to the employment of a licensed broker by first paying the transfer fee specified in
s. 440.05 (7) and filing a transfer form with the department.
452.10(4)(b)
(b) No salesperson, time-share salesperson or broker may be employed by a broker whose license has been suspended or revoked during the period of suspension or revocation. The salesperson, time-share salesperson or broker may apply for transfer to some other licensed broker by complying with this chapter, provided the salesperson, time-share salesperson or broker is not a party to the activities causing the suspension or revocation of the license of the broker.
452.10(6)
(6) In the case of applications for renewals of licenses the department may dispense with such matters contained in
s. 452.09 (1) as it deems unnecessary in view of prior applications.
452.10 Cross-reference
Cross Reference: See also ch.
RL 12 and
23, Wis. adm. code.
452.10 Annotation
The real estate examining board cannot prescribe the name to be used on an application for a real estate broker's license. 66 Atty. Gen. 21.
452.11
452.11
Nonresident applicants and licensees. 452.11(1)
(1) A nonresident may become a broker, salesperson or time-share salesperson by conforming to all the provisions of this chapter.
452.11(3)
(3) Every nonresident applicant, and every resident licensee who becomes a nonresident, shall file with the department an irrevocable consent that actions may be commenced against the applicant or licensee in the proper court of any county of the state in which a cause of action arises or in which the plaintiff resides, by the service of any process or pleading authorized by the laws of this state on the department or any duly authorized employee. The consent shall stipulate and agree that such service is valid and binding as due service upon the applicant or licensee in all courts in this state. The consent shall be duly acknowledged and, if made by a corporation, shall be authenticated by the corporate seal.
452.11(4)
(4) Any process or pleading under this section shall be served in duplicate upon the department or its duly authorized employee. One copy shall be filed with the department and the other immediately forwarded by certified mail to the nonresident licensee against whom the process or pleading is directed at the last address provided to the department by the nonresident licensee. No default in any such proceeding or action may be taken unless it appears by affidavit of the secretary or any duly authorized employee that a copy of the process or pleading was mailed to the nonresident licensee as required in this subsection. No judgment by default may be taken in any action or proceeding within 20 days after the date of mailing the process or pleading to the nonresident licensee.
452.11 Cross-reference
Cross Reference: See also ch.
RL 12, Wis. adm. code.
452.12(1)(1)
Expiration. A license granted by the department entitles the holder to act as a broker or salesperson, as the case may be, until the applicable renewal date specified under
s. 440.08 (2) (a).
452.12(2)(a)(a) A license may be issued to a business entity if the business entity has at least one business representative licensed as a broker. The license issued to the business entity entitles each business representative of the business entity who is a licensed broker to act as a broker on behalf of the business entity.
452.12(2)(c)
(c) Application for a business entity license shall be made on forms prescribed by the department, listing the names and addresses of all business representatives, and shall be accompanied by the fee specified in
s. 440.05 (1). If there is a change in any of the business representatives, the change shall be reported to the department, on the same form, within 30 days after the effective date of the change.
Effective date note
NOTE: Par. (c) is amended eff. 7-1-09 by
2007 Wis. Act 20 to read:
Effective date text
(c) Application for a business entity license shall be made on forms prescribed by the department, listing the names and addresses of all business representatives, and shall be accompanied by the initial credential fee determined by the department under s. 440.03 (9) (a). If there is a change in any of the business representatives, the change shall be reported to the department, on the same form, within 30 days after the effective date of the change.
452.12(3)
(3) Broker's liability for acts of employees. Each broker shall supervise, and is responsible for, the brokerage services provided on behalf of the broker by any broker, salesperson, or time-share salesperson who is an employee of the broker.
452.12(4)
(4) Register of brokers and salespersons. The department shall maintain the register required by
s. 440.035 (4). The names of all brokers and salespersons whose licenses have been revoked at any time within 2 years prior to the issuance thereof shall be included in the register. The register shall be available for purchase at cost.
452.12(5)(a)(a) Renewal applications for all licenses shall be submitted with the applicable renewal fee specified under
s. 440.08 (2) (a) on or before the applicable renewal date specified under
s. 440.08 (2) (a).
Effective date note
NOTE: Par. (a) is amended eff. 7-1-09 by
2007 Wis. Act 20 to read:
Effective date text
(a) Renewal applications for all licenses shall be submitted with the applicable renewal fee determined by the department under s. 440.03 (9) (a) on or before the applicable renewal date specified under s. 440.08 (2) (a).
452.12(5)(b)
(b) If an application for renewal is not filed with the department on or before the renewal date, the applicant may not engage in any of the activities covered by the license until the license is renewed or a new license is issued.
452.12(5)(c)1.1. At the time of renewal, each broker or salesperson shall submit proof of attendance at and successful completion of continuing education programs or courses approved under
s. 452.05 (1) (g), except as provided in
subd. 2.
452.12(5)(c)2.
2. Not later than June 30 of each even-numbered year, the department shall conduct an examination on those subjects required for continuing education under
s. 452.05 (1) (d). Any broker or salesperson who passes the examination under this subdivision is not required to comply with
subd. 1.
452.12(6)(a)(a) Any licensee, except a time-share salesperson registered under
s. 452.025, may apply for registration as an inactive licensee on or before the license renewal date. This paragraph does not apply after October 31, 1995.
452.12(6)(b)
(b) Unless an applicant's license has been revoked or suspended under
s. 452.14 (3), the department may register the applicant under
par. (a) as an inactive licensee upon payment of a $15 fee.
452.12(6)(c)
(c) Inactive licensees may not engage in real estate practice.
452.12(6)(d)
(d) If an inactive licensee files an application for reinstatement before January 1, 1996, the department shall reinstate the inactive licensee's original license in accordance with the requirements for late renewal under
s. 440.08 (3).
452.12(6)(e)1.
1. If a person has registered as an inactive licensee before November 1, 1990, the department shall reinstate the person's original license if that person applies to the department for reinstatement of his or her original license, pays the fees specified under
s. 440.05 (1) (a) and
(b), passes an examination under
s. 452.09 (3) and completes the education requirements established by the department under
par. (f).
Effective date note
NOTE: Subd. 1. is amended eff. 7-1-09 by
2007 Wis. Act 20 to read:
Effective date text
1. If a person has registered as an inactive licensee before November 1, 1990, the department shall reinstate the person's original license if that person applies to the department for reinstatement of his or her original license, pays the fee specified under s. 440.05 (1), passes an examination under s. 452.09 (3) and completes the education requirements established by the department under par. (f).
452.12(6)(e)2.
2. If a person has registered as an inactive licensee on or after November 1, 1990, the department shall reinstate the person's original license if that person applies to the department for reinstatement of his or her original license, pays the renewal fee specified under
s. 440.08 (2) (a) for the original license and completes 12 hours of continuing education as established by the department under
par. (f). A person who is eligible for reinstatement of his or her original license under this subdivision shall complete the requirements for reinstatement under this subdivision before January 1, 1996, or within 5 years after the date on which the person registered as an inactive licensee, whichever is later.
Effective date note
NOTE: Subd. 2. is amended eff. 7-1-09 by
2007 Wis. Act 20 to read:
Effective date text
2. If a person has registered as an inactive licensee on or after November 1, 1990, the department shall reinstate the person's original license if that person applies to the department for reinstatement of his or her original license, pays the renewal fee determined by the department under s. 440.03 (9) (a) for the original license and completes 12 hours of continuing education as established by the department under par. (f). A person who is eligible for reinstatement of his or her original license under this subdivision shall complete the requirements for reinstatement under this subdivision before January 1, 1996, or within 5 years after the date on which the person registered as an inactive licensee, whichever is later.
452.12(6)(e)3.
3. If a person who is eligible for reinstatement of his or her original license under
subd. 2. does not complete the requirements for reinstatement within the time specified under
subd. 2., the department shall reinstate the original license of that person if he or she meets the requirements specified under
subd. 1.
452.12(6)(f)
(f) The department shall promulgate rules establishing the education requirements that applicants for reinstatement of original licenses under
par. (e) must satisfy.
452.12 Cross-reference
Cross Reference: See also chs.
RL 17,
23, and
25, Wis. adm. code.
452.13(1)(a)
(a) "Client funds" means all downpayments, earnest money deposits or other money related to a conveyance of real estate that is received by a broker, salesperson or time-share salesperson on behalf of the broker's, salesperson's or time-share salesperson's principal or any other person. "Client funds" does not include promissory notes.
452.13(1)(b)
(b) "Depository institution" means a bank, savings bank, savings and loan association or credit union that is authorized by federal or state law to do business in this state and that is insured by the federal deposit insurance corporation or by the national credit union share insurance fund.
452.13(2)
(2) Interest-bearing common trust account. 452.13(2)(a)(a) A broker who holds client funds shall establish an interest-bearing common trust account in a depository institution. The interest-bearing common trust account shall earn interest at a rate not less than that applicable to individual accounts of the same type, size and duration and for which withdrawals or transfers can be made without delay, subject to any notice period that the depository institution is required to observe by law or regulation.
452.13(2)(b)
(b) Any broker who maintains an interest-bearing common trust account shall do all of the following:
452.13(2)(b)1.
1. Register with the department of regulation and licensing the name and address of the depository institution and the number of the interest-bearing common trust account.
452.13(2)(b)2.
2. Notify the department of regulation and licensing when any of the information required under
subd. 1. is changed.
452.13(2)(b)3.
3. Furnish the department of regulation and licensing with a letter authorizing the department of regulation and licensing and the department of commerce to examine and audit the interest-bearing common trust account whenever the department of regulation and licensing or the department of commerce considers it necessary.
452.13(2)(bm)
(bm) The department of regulation and licensing shall forward to the department of commerce the information and documents furnished under
par. (b).
452.13(2)(c)
(c) A broker shall deposit all client funds in the interest-bearing common trust account.
452.13(2)(d)
(d) The department of commerce is the beneficial owner of the interest accruing to the interest-bearing common trust account, minus any service charges or fees.
452.13(2)(e)
(e) For each interest-bearing common trust account, the broker shall direct the depository institution to do all of the following:
452.13(2)(e)1.
1. Annually, before February 1, remit to the department of commerce the total interest or dividends, minus service charges or fees, earned on the average daily balance in the interest-bearing common trust account during the 12 months ending on the previous December 31. A depository institution is not required to remit any amount if the total interest or dividends for that period is less than $10 before any deduction for service charges or fees.
452.13(2)(e)2.
2. When the interest remittance is sent, furnish to the department of commerce and to the broker maintaining the interest-bearing common trust account a statement that includes the name of the broker for whose account the remittance is made, the rate of interest applied, the amount of service charges or fees deducted, if any, and the account balance for the period that the statement covers.
452.13(2)(f)1.
1. May not assess a service charge or fee that is due on an interest-bearing common trust account against any broker or, except as provided in
subd. 3., against any other account, regardless of whether the same broker maintains the other account.
452.13(2)(f)2.
2. May not assess a service charge or fee for an interest-bearing common trust account against the department of commerce.
452.13(2)(f)3.
3. May deduct a service charge or fee from the interest earned by an interest-bearing common trust account, and if a balance remains, may deduct the remaining charge or fee from the interest earned on any other interest-bearing common trust account maintained in that depository institution, before remitting interest to the department of commerce.
452.13(2)(f)4.
4. May not deduct a service charge or fee from the principal of an interest-bearing common trust account.
452.13(3)
(3) Deposit provisions. A broker who deposits client funds in an interest-bearing common trust account in compliance with this section may not be held liable to the owner or beneficial owner of the client funds for damages due to compliance with this section. A broker, salesperson or time-share salesperson who deposits client funds in an interest-bearing common trust account in compliance with this section is not required to disclose alternative depository arrangements that could be made by the parties or to disclose that a deposit will be made under this section.
452.13(4)
(4) Trust account optional. This section does not require a broker to hold client funds or require a person to transfer client funds to a broker.
452.13(5)
(5) Rules. In consultation with the department of regulation and licensing, the department of commerce shall promulgate rules necessary to administer this section.
452.13 Cross-reference
Cross Reference: See also chs.
Comm 155 and
RL 18, Wis. adm. code.
452.13 Annotation
Security deposits by a tenant usually create a debtor-creditor relationship. A broker retaining a deposit should deposit it in his or her trust account. 60 Atty. Gen. 1.
452.13 Annotation
The Federal National Mortgage Association is exempt from the requirements of this section, but private mortgage bankers or mortgage brokers licensed as real estate brokers under ch. 452, and servicing mortgages for FNMA must deposit loan, insurance and tax escrow moneys in authorized trust account in a bank located in Wisconsin, subject to audit by the board. 60 Atty. Gen. 514.
452.133(1)(1)
Broker's duties to all persons in a transaction. A broker who is providing brokerage services to a person in a transaction owes all of the following duties to the person:
452.133(1)(a)
(a) The duty to provide brokerage services honestly and fairly.
452.133(1)(b)
(b) The duty to provide brokerage services with reasonable skill and care.
452.133(1)(c)
(c) The duty to timely disclose in writing all material adverse facts that the broker knows and that the person does not know or cannot discover through reasonably vigilant observation, unless the disclosure of a material adverse fact is prohibited by law.
452.133(1)(d)
(d) The duty to keep confidential any information given to the broker in confidence, or any information obtained by the broker that he or she 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 shall continue to keep the information confidential after the transaction is complete and after the broker is no longer providing brokerage services to the person.
452.133(1)(e)
(e) The duty to provide accurate information about market conditions that affect the person's transaction, within a reasonable time after the person's request, unless disclosure of the information is prohibited by law.
452.133(1)(f)
(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).
452.133(1)(g)
(g) When the broker 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.
452.133(2)
(2) Broker's duties to a client. A broker providing brokerage services to his or her client owes the client the duties that the broker owes to a person under
sub. (1) and all of the following additional duties:
452.133(2)(a)
(a) The duty to loyally represent the client's interests by doing all of the following:
452.133(2)(a)1.
1. Placing the client's interests ahead of the broker's interests.
452.133(2)(a)2.
2. Placing the client's interests ahead of the interests of persons in the transaction who are not the broker's clients by not disclosing to persons in the transaction other than the broker's clients information or advice the disclosure of which is contrary to the interests of a client of the broker, unless the disclosure is required by law.
