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.
452.132
452.132
Responsibilities of firms and licensees. 452.132(1)(1)
A firm shall supervise the brokerage service activities of each licensee associated with the firm, including by doing all of the following:
452.132(1)(a)
(a) Ensuring that a supervising broker for the firm complies with sub.
(4).
452.132(1)(b)
(b) Providing a licensee with reasonable access to a supervising broker for the purpose of consultation regarding real estate practice issues.
452.132(2)
(2) A firm shall do all of the following:
452.132(2)(a)
(a) Provide each licensee associated with the firm with a written statement of the procedures under which the firm and licensees associated with the firm must operate with respect to handling leases, agency agreements, offers to purchase, and other documents and records relating to transactions.
452.132(2)(b)
(b) Notify each licensee associated with the firm where a copy of the rules promulgated by the board related to the conduct, ethical practices, and responsibilities of licensees may be obtained.
452.132(2)(c)
(c) Before a licensee becomes associated with the firm and at the beginning of each biennial licensure period, ensure that the licensee holds a valid license.
452.132(3)
(3) A firm shall be responsible for the custody and safety of all documents and records relating to transactions submitted to the firm as required under sub.
(6) (b).
452.132(4)(a)(a) A supervising broker for a firm, as determined under sub.
(5), shall review all of the following prior to the closing of a transaction in accordance with par.
(b):
452.132(4)(a)1.
1. All agency agreements, offers to purchase, leases, and other documents that are executed by the parties and records relating to the transaction that are used by a licensee associated with the firm and submitted to the firm as required under sub.
(6) (b).
452.132(4)(b)
(b) The review under par.
(a) shall be limited to confirming that a written disclosure statement to a customer or client has been provided by a licensee associated with the firm in accordance with s.
452.135, confirming that any applicable form approved by the board has been used and the forms have been completed by filling in the blanks in a manner consistent with the structure of the form, and communicating to the licensee any errors in how the forms were completed that are apparent on the face of the document and known to the person reviewing the document.
452.132(5)(a)(a) A firm that is a licensed broker business entity shall delegate the performance of the duty to supervise licensees associated with the firm to a supervising broker who is a licensed individual broker.
452.132(5)(b)
(b) A firm that is not a licensed broker business entity may delegate the duty to supervise licensees associated with the firm to a supervising broker who is a licensed individual broker, but in the absence of a specific supervising broker delegation, the firm itself is deemed to be the supervising broker for that firm.
452.132(5)(c)
(c) A delegation under par.
(a) or
(b) shall be written and signed by or on behalf of the delegating firm, identify the duty delegated, and be signed by the broker to whom the delegation is made.
452.132(5)(d)
(d) A firm may delegate the duty to supervise licensees to more than one supervising broker.
452.132(6)(a)(a) A licensee associated with a firm shall be responsible for discussing with the party with whom the licensee is working with or representing any error communicated to the licensee as provided in sub.
(4) (b), and the party shall determine whether to request any changes to address the error.
452.132(6)(b)
(b) A licensee associated with a firm shall submit to the firm in a timely manner all agency agreements, offers to purchase, leases, and other documents that are executed by the parties and records related to the brokerage services provided on behalf of the firm and transactions that are used or received by the licensee.
452.132 History
History: 2015 a. 258.
452.133
452.133
Duties of licensees; prohibitions. 452.133(1)(1)
Duties to all parties to a transaction. A firm providing brokerage services to a party to a transaction owes all of the following duties to the party:
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 firm knows and that the party 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 firm in confidence, or any information obtained by the firm that 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. The firm shall continue to keep the information confidential after the transaction is complete and after the firm is no longer providing brokerage services to the party.
452.133(1)(e)
(e) The duty to provide accurate information about market conditions that affect the transaction, within a reasonable time after a request for such information by the party, unless disclosure of the information is prohibited by law.
452.133(1)(f)
(f) The duty to safeguard trust funds and other property held as required by rules promulgated under s.
452.13 (5).
452.133(1)(g)
(g) When the 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.
452.133(2)
(2)
Duties to clients. A firm providing brokerage services to a client owes the client the duties that the firm owes to a party 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 interests of the firm.
452.133(2)(a)2.
2. Placing the client's interests ahead of the interests of persons in the transaction who are not the firm's clients by not disclosing to persons in the transaction other than the firm's clients information or advice the disclosure of which is contrary to the interests of a client of the firm, unless the disclosure is required by law.
452.133(2)(am)
(am) The duty to provide, when requested by the client, information and advice to the client on matters that are material to the client's transaction and that are within the scope of the knowledge, skills, and training required under this chapter.
452.133(2)(b)
(b) The duty to disclose to the client all information known by the 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.
452.133(2)(c)
(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 firm has under this chapter or any other law.
452.133(3)
(3)
Prohibited conduct. In providing brokerage services, a licensee 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 licensee's client, principal firm, or firm, without the prior written consent of all parties to the transaction.
452.133(3)(b)
(b) Act in a transaction on the licensee's own behalf, on behalf of the 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 licensee has an interest, without 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.
452.133(3)(c)
(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 licensee may receive compensation for a referral or in which the licensee has an interest, unless the licensee has disclosed in writing the fact that the licensee may receive compensation or has disclosed in writing an interest in the individual or entity providing the services.
452.133(3)(d)
(d) Negotiate the sale, exchange, purchase, or rental of personal property unless related to the transaction. The licensee may use a form approved by the board under s.
452.05 (1) (b) for the conveyance of the seller's interest in the personal property. In this paragraph, “use a form” has the meaning given in s.
452.40 (1) (a).
452.133(4)(a)(a) A subagent owes all parties to whom the subagent is providing brokerage services in a transaction the duties specified in sub.
(1) but does not owe the clients of the principal firm the duties under sub.
(2).
452.133(4)(b)1.
1. Place the subagent's interests ahead of the interests of the clients of the principal firm in the transaction in which the subagent has been engaged by the principal firm.
452.133(4)(b)2.
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 firm in the transaction in which the subagent has been engaged by the principal firm, unless required by law.
452.133(4m)
(4m)
Duties and prohibitions; application to licensees. 452.133(4m)(a)(a) Subject to par.
(d), 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).
452.133(4m)(b)
(b) Except as provided in s.
452.134 (3) (b) and subject to par.
(d), 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).
452.133(4m)(c)1.1. Subject to par.
(d), 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).
452.133(4m)(c)2.
2. Subject to par.
(d), 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).
452.133(4m)(d)
(d) The duties and prohibitions under pars.
(a) to
(c) extend only to a licensee providing brokerage services to a party to the transaction.
452.133(5)
(5)
Duties without agency or subagency relationship. If a firm is providing brokerage services to a person who is a party or a prospective party to a current or prospective transaction, and the firm does not have an agency agreement with the person and is not a subagent of another firm in the transaction, then the 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.
452.133(6)
(6)
Waiver of duties. 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 duty under sub.
(2) (d), except that a waiver under this subsection is not effective unless the firm or a licensee associated with the firm provides to the client a written disclosure containing all of the following:
452.133(6)(a)
(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 firm and any licensees associated with the firm will have no legal duty to perform the duty imposed by sub.
(2) (d).
452.133(6)(b)
(b) A statement that as a consequence of the client's waiver, the client may require the assistance of an attorney or another service provider to fulfill the client's goals and contractual duties in the transaction.
452.133 Cross-reference
Cross-reference: See also ch.
REEB 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.
452.133 Annotation
The `New' Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.
452.134
452.134
Agency relationships; multiple representation relationships. 452.134(1)(a)(a) Subject to par.
(b), a firm and any licensees associated with the firm may provide brokerage services to any party, whether or not the firm has entered into an agency agreement with a party or the firm has been engaged to provide brokerage services as a subagent.
452.134(1)(b)
(b) A 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:
452.134(1)(b)2.
2. A client of a principal firm who has engaged the firm as a subagent.
452.134(2)
(2)
Multiple representation relationships. A firm and any licensees associated with the firm may not provide brokerage services in a multiple representation relationship unless all of the firm's clients in the multiple representation relationship have consented to a multiple representation relationship in writing.
452.134(3)(a)(a) A firm in a multiple representation relationship may not engage in designated agency unless all of the 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 firm at any time.
452.134(3)(b)
(b) If a firm is engaged in designated agency, the licensee associated with the firm that is negotiating on behalf of a client of the firm in the transaction may provide to the client on whose behalf the 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 firm's clients ahead of the interests of another client of the firm.
452.134(4)
(4)
Multiple representation relationships without designated agency. If a firm's client in a multiple representation relationship does not consent to designated agency or withdraws consent to designated agency, the firm and any licensees associated with the firm may not place the interests of any client ahead of the interests of any other in the negotiations.
452.134 Annotation
The `New' Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.
452.135
452.135
Disclosure of duties. 452.135(1)(a)
(a) No firm, and no licensee associated with a firm, may negotiate on behalf of a party who is not the firm's client unless the firm, or a licensee associated with the firm, provides to the party a copy of the following written disclosure statement:
DISCLOSURE TO CUSTOMERS
You are a customer of the brokerage firm (hereinafter firm). The firm is either an agent of another party in the transaction or a subagent of another firm that is the agent of another party in the transaction. A broker or a salesperson acting on behalf of the firm may provide brokerage services to you. Whenever the firm is providing brokerage services to you, the firm and its brokers and salespersons (hereinafter agents) owe you, the customer, the following duties:
The duty to provide brokerage services to you fairly and honestly.
The duty to exercise reasonable skill and care in providing brokerage services to you.
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.
The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.
The duty to protect your confidentiality. Unless the law requires it, the firm and its agents will not disclose your confidential information or the confidential information of other parties.
