Please review this information carefully. An agent 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.
This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a plain-language summary of the duties owed to you under section 452.133 (2) of the Wisconsin statutes.
452.135(2)(b)
(b) If a client enters into an agency agreement with a firm to receive brokerage services related to real estate primarily intended for use as a residential property containing one to 4 dwelling units, and the written disclosure statement under par.
(a) is not incorporated into the agency agreement, the firm shall request the client's signed acknowledgment that the client has received a copy of the written disclosure statement.
452.135 Annotation
The `New' Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.
452.136
452.136
Advertising by licensees. 452.136(1)(1)
False advertising. A licensee may not advertise in a manner that is false, deceptive, or misleading.
452.136(2)(a)(a) Except for advertisements for the rental of real estate owned by the licensee, a licensee shall in all advertising disclose the firm's name exactly as printed on the license of the licensed individual broker or licensed broker business entity or disclose a trade name previously filed by the firm with the department and shall in either case clearly indicate that the firm is a business enterprise and not a private party.
452.136(2)(b)
(b) Except for advertisements for the rental of real estate owned by the licensee, a licensee associated with a firm shall advertise under the supervision of and in the name of the firm. The firm's name as used in advertising shall be clear and conspicuous. This paragraph does not apply to a licensee engaged in independent practice as provided in s.
452.30 (6).
452.136(2)(c)
(c) Notwithstanding pars.
(a) and
(b), a licensee may advertise the occasional sale of real estate owned by the licensee or may engage in the occasional solicitation of real estate for purchase by the licensee without complying with pars.
(a) and
(b), provided that the licensee clearly identifies himself, herself, or itself as a real estate licensee in the advertisement.
452.136(3)
(3)
Advertising without agency agreement prohibited. A firm and any licensees associated with the firm may not advertise a property unless one of the following applies:
452.136(3)(b)
(b) The firm or a licensee associated with the firm has obtained consent to advertise the property from the listing firm for the property.
452.136(4)
(4)
Advertised price. A licensee may not advertise property at a price other than that agreed upon with the owner, except that the price may be stated as a range or in general terms if it reflects the agreed upon price.
452.136 History
History: 2017 a. 110.
452.137
452.137
Cooperation with out-of-state brokers and salespersons. 452.137(1)(am)
(am) Notwithstanding s.
452.01 (1m), “agency agreement" includes a written agreement between an out-of-state broker and a client in which the client authorizes the out-of-state broker to provide brokerage services to the client.
452.137(1)(cm)1.1. “Commercial transaction” means a transaction concerning any real property, other than real property containing 1 to 4 dwelling units or real property zoned for agricultural use.
452.137(1)(cm)2.
2. “Commercial transaction” does not include any transaction concerning a dwelling unit that is a part of real property containing more than 4 dwelling units and that is being sold on a unit-by-unit basis.
452.137(1)(d)
(d) “Cooperative agreement" means an agreement entered into between an out-of-state broker and a firm as provided in this section.
452.137(1)(h)
(h) “Licensed salesperson" means a salesperson who is licensed under this chapter.
452.137(2)(a)(a) An out-of-state broker may act as a broker in this state only as provided in par.
(ag) or
(am).
452.137(2)(ag)
(ag) An out-of state broker may, subject to par.
(b), act as a broker in this state if the out-of-state broker does all of the following:
452.137(2)(ag)1.
1. Enters into a cooperative agreement with a listing firm and cooperates with the listing firm on the listing agreement that is subject to the cooperative agreement. Each cooperative agreement may cover only one listing agreement.
452.137(2)(ag)2.
2. Submits to the listing firm evidence that the out-of-state broker is licensed in good standing to engage in real estate brokerage in a jurisdiction other than this state.
452.137(2)(am)
(am) An out-of-state broker representing a person who is seeking to buy or rent property located in this state in a commercial transaction may, subject to pars.
(b) and
(bm), act as a broker in this state if the out-of-state broker does all of the following:
452.137(2)(am)1.
1. Enters into a cooperative agreement with a firm and cooperates with the firm. Each cooperative agreement shall be limited to a type of property, type of function, geographic area, or other criteria specified in the buyer's or tenant's search parameters.
452.137(2)(am)2.
2. Submits to the firm evidence that the out-of-state broker is licensed in good standing to engage in real estate brokerage in a jurisdiction other than this state.
452.137(2)(am)3.
3. Either the out-of-state-broker or the firm enters into an agency agreement with the prospective buyer or tenant. The cooperative agreement shall acknowledge whether the out-of-state broker or firm has the agency agreement. If the out-of-state broker has entered into the agency agreement with the prospective buyer or tenant, the out-of-state broker and the prospective buyer or tenant shall, notwithstanding s.
452.01 (3m) and
(5w), be considered to be a principal firm and client for purposes of this chapter, and the firm shall be a subagent and shall provide the out-of-state broker with a copy of the disclosure statement under s.
452.135 (2) to be given to the client. The out-of-state broker is not required to request that the client sign the statement.
452.137(2)(b)
(b) An out-of-state broker, including an out-of-state broker who is a party to a cooperative agreement, may not do any of the following:
452.137(2)(b)1.
1. Enter into a listing agreement concerning any property located in this state.
452.137(2)(b)2.
2. For commission, money, or other thing of value, promote in this state the sale, exchange, purchase, option, rental, or leasing of any property located in this state, including by posting signs on the property.
452.137(2)(b)3.
3. Enter into a cooperative agreement with a person who is not licensed under this chapter as authority to sell, lease, rent, exchange, or attempt to sell, lease, rent, or exchange property in this state.
452.137(2)(bm)
(bm) An out-of-state broker acting under par.
(am) may not do any of the following:
452.137(2)(bm)1.
1. Negotiate with a seller or landlord, unless authorized under the cooperative agreement. If a property is not listed with a listing firm, the firm shall conduct all negotiations with the seller or landlord of that property.
452.137(2)(bm)2.
2. View or show commercial property in this state for sale or lease without the firm or a licensee associated with the firm being present, unless authorized under the cooperative agreement. If a property is not listed with a listing firm, the firm shall view or show the property with the out-of-state broker.
452.137(2)(bm)3.
3. Have contact with another firm or another firm's seller or landlord, unless otherwise agreed to in the cooperative agreement.
452.137(2)(c)
(c) An out-of-state broker who is a party to a cooperative agreement with a firm, and any out-of-state salesperson of the out-of-state broker, are not required to be licensed under this chapter but shall otherwise be treated as licensees for purposes of this chapter and shall comply with the laws of this state as they apply to licensees, and the out-of-state broker shall file with the board an irrevocable consent that actions may be commenced against the out-of-state broker in the proper court of any county in this state in which a cause of action arises or the plaintiff resides, by the service of any process or pleading authorized by the laws of this state on the board or any duly authorized employee. The consent shall stipulate and agree that such service is valid and binding as due service upon the out-of-state broker 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.
452.137(2)(d)
(d) A firm that is a party to a cooperative agreement with an out-of-state broker, and any licensee associated with the firm, may not act under the cooperative agreement on behalf of a broker who is not a party to the cooperative agreement.
452.137(2)(e)1.1. An out-of-state broker who is a party to a cooperative agreement with a firm shall maintain the originals or copies of all documents the out-of-state broker receives, maintains, or generates in connection with any transaction subject to the cooperative agreement, for at least 3 years after the date of closing or completion of the transaction, or, if no closing or completion occurs, 3 years after the date on which the parties execute the cooperative agreement.
452.137(2)(e)2.
2. An out-of-state broker who is a party to a cooperative agreement with a firm shall deposit with the firm copies of all documents the out-of-state broker is required to maintain under subd.
1., unless the out-of-state broker and the firm agree in writing that the out-of-state broker is not required to do so.
452.137(2)(f)
(f) No person may pay an out-of-state broker a commission, money, or any other thing of value for brokerage services unless the out-of-state broker is a party to a cooperative agreement with a firm.
452.137(2)(g)
(g) Notwithstanding s.
452.01 (2) (bm), no out-of-state broker may, for commission, money, or other thing of value, show a property in this state that is offered exclusively for rent unless that showing is authorized under a cooperative agreement between the out-of-state broker and a firm.
452.137(3)
(3)
Out-of-state salespersons. An out-of-state salesperson may act as a salesperson in this state only if all of the following conditions are met:
452.137(3)(a)
(a) The out-of-state broker who employs the out-of-state salesperson satisfies all of the applicable requirements under sub.
(2).
452.137(3)(b)
(b) The out-of-state salesperson works under the direct supervision of the out-of-state broker.
452.137(3)(c)
(c) The out-of-state salesperson submits evidence to the firm that the out-of-state salesperson is licensed in good standing or is otherwise authorized to act as a salesperson in a jurisdiction other than this state.
452.137(3)(d)
(d) In any transaction subject to the cooperative agreement, the out-of-state salesperson represents only the out-of-state broker who is a party to the cooperative agreement and with whom the out-of-state salesperson is employed.
452.137(4)(a)(a) The board shall establish one or more forms to be used for cooperative agreements under this section, which shall include any required terms for such an agreement.
452.137(4)(b)
(b) A cooperative agreement may be entered into only through the use of a form established by the board under par.
(a) and shall do at least all of the following:
452.137(4)(b)1.
1. Establish the terms of cooperation between the out-of state broker, any out-of-state salesperson, and the firm.
452.137(4)(b)2.
2. Establish the terms of the out-of-state broker's compensation.
452.137(4)(b)3.
3. Provide that all client funds, as defined in s.
452.13 (1) (a), that the out-of-state broker and the firm receive in connection with a transaction subject to the cooperative agreement shall be deposited in a trust account maintained by the firm.
452.137(4)(c)
(c) A cooperative agreement under sub.
(2) (am) shall describe the type, function, location, approximate size, and functional or geographic limitations of the property being sought. A separate cooperative agreement shall be entered into for each type of property.
452.137(5)(a)(a) Subject to the rules promulgated under s.
440.03 (1), the board may conduct investigations and hold hearings to determine whether a person has violated this section or a rule promulgated under this section.
452.137(5)(b)
(b) Notwithstanding s.
452.17 (3), any person who violates this section or a rule promulgated under this section may be fined, for each violation, not more than the greater of the following:
452.137(5)(b)2.
2. For a sales transaction, 1 percent of the purchase price of the property subject to the cooperative agreement.
452.137(5)(b)3.
3. For a lease or rental transaction, 1 percent of the total lease or rental value of the property subject to the cooperative agreement.
452.138
452.138
Firms providing services in more than one transaction. A firm may provide brokerage services simultaneously to more than one party in different transactions, unless the firm agrees with a client that the firm is to provide brokerage services only to that client. If the firm and a client agree that the firm is to provide brokerage services only to that client, the agency agreement shall contain a statement of that agreement.
452.138 Cross-reference
Cross-reference: See also ch.
REEB 24, Wis. adm. code.
452.139
452.139
Changes in common law duties and liabilities of brokers and parties. 452.139(1)(1)
Common law duties of firms. The duties of a firm specified in this chapter or in rules promulgated under this chapter shall supersede duties or obligations under common law to the extent that those common law duties or obligations 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 in connection with the provision of brokerage services by a firm or any licensee associated with the firm, unless the client knows or should have known of the misrepresentation or the firm or licensee is repeating a misrepresentation made by the client.
452.139(2)(b)
(b) A firm that is providing brokerage services to a client and that retains another firm to provide brokerage services as a subagent is not liable for a misrepresentation made by the subagent or any licensee associated with the subagent, unless the firm knew or should have known of the misrepresentation or the subagent or licensee is repeating a misrepresentation made to by the firm or any licensee associated with the firm.
452.139(2)(c)
(c) Nothing in this subsection limits the responsibility of a firm under s.
452.12 (3) for misrepresentations made by a licensee associated with the firm. Nothing in this subsection limits the liability of a client for a misrepresentation that the client makes in connection with brokerage services.
452.139(3)
(3)
Liability for negligent hiring. If a licensee associated with a firm commits a crime under the laws of this state or another wrongful act, the firm may not be held civilly liable for hiring that licensee in a claim brought for negligent hiring if, regardless of whether the firm conducted its own investigation, the firm relied on the investigations conducted by the department under s.
440.03 (13) or on any determination made by the board, including a determination under s.
111.335 (4) (f) or
452.25.
452.139 Cross-reference
Cross-reference: See also ch.
REEB 24, Wis. adm. code.
452.14
452.14
Investigation and discipline of licensees. 452.14(1)(1)
The board shall, upon motion of the secretary or his or her designee or upon its own determination, conduct investigations and, as appropriate, may hold hearings and make findings, if the board or the department receives credible information that a broker or salesperson has violated this chapter or any rule promulgated under this chapter.
452.14(2)
(2) The board may commence disciplinary proceedings on any matter under investigation concerning a licensee.
452.14(2m)
(2m) The board shall conduct disciplinary proceedings in accordance with the rules adopted under s.
440.03 (1).
452.14(3)
(3) The board may revoke, suspend, or limit the license of any licensee, or reprimand the licensee, if it finds that the licensee has done any of the following:
452.14(3)(a)
(a) Made a material misstatement in the application for a license, 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 party in which the licensee acts as agent.
452.14(3)(c)
(c) Made any false promises of a character such as to influence, persuade, or induce a party 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 other licensees or through advertising.
