Effective date text (3)Broker's liability for acts of employees. Subject to s. 452.139 (3), 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 licensees. The board shall include in the register the board maintains under s. 440.035 (1m) (d) the names of all persons whose licenses issued under this chapter were revoked within the past 2 years. The register shall be available for purchase at cost.
Effective date note NOTE: Sub. (4) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258 and as affected by 2015 Wis. Acts 258 and 269 as merged by the legislative reference bureau under s. 13.92 (2) (i). Prior to 7-1-16, as affected by 2015 Wis. Act 269, it reads:
Effective date text (4)Register of brokers and salespersons. The board shall include in the register the board maintains under s. 440.035 (1m) (d) the names of all brokers and salespersons whose licenses were revoked within the past 2 years. The register shall be available for purchase at cost.
452.12(5) (5)Renewal.
452.12(5)(a)(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). The department shall pay $10 of each renewal fee received under this paragraph to the Board of Regents of the University of Wisconsin System for research and educational, public outreach, and grant activities under s. 36.25 (34).
452.12(5)(b) (b) If an application for renewal of a license issued to an individual is not filed with the board on or before the renewal date with the proof required under par. (c) or if the renewal is not granted, 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.
Effective date note NOTE: Par. (b) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (b) If an application for renewal is not filed with the board 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)(bm) (bm) If an application for renewal of a license issued to a firm is not filed with the board on or before the renewal date or if the renewal is not granted, all of the following apply:
452.12(5)(bm)1. 1. The firm 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)(bm)2. 2. Any licensees associated with the firm may not engage in any of the activities covered by the firm's license on behalf of the firm until the firm's license is renewed or a new license is issued.
452.12(5)(bm)3. 3. A licensed individual broker or licensed broker business entity who is serving as a business representative for the firm shall notify each licensee associated with the firm that the firm's license was not renewed and, within 10 days after notifying a licensee, file with the department a notice of termination for each such licensee on a form prescribed by the department.
Effective date note NOTE: Par. (bm) is created eff. 7-1-16 by 2015 Wis. Act 258.
452.12(5)(c) (c) At the time of renewal, each broker or salesperson who is an individual shall submit proof of attendance at and successful completion of continuing education programs or courses approved under s. 452.05 (1) (g).
Effective date note NOTE: Par. (c) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (c) 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).
452.12(5)(d) (d) At the time of renewal, each broker or salesperson who is an individual shall complete the form under s. 452.05 (1) (i).
452.12(6) (6)Inactive licensees.
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 board 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 board 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) (e) Except as provided in ss. 440.03 (11m) (b), 440.12 and 440.13 (2) (c), the board shall reinstate an inactive licensee's original license as follows:
452.12(6)(e)1. 1. If a person has registered as an inactive licensee before November 1, 1990, the board shall reinstate the person's original license if that person applies to the board 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 board 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 board shall reinstate the person's original license if that person applies to the board 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 the continuing education requirements established by the board 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 board 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 board shall promulgate rules establishing the education requirements that applicants for reinstatement of original licenses under par. (e) must satisfy.
Effective date note NOTE: Sub. (6) is repealed eff. 7-1-16 by 2015 Wis. Act 258.
452.12 Cross-reference Cross-reference: See also chs. REEB 17, 23, and 25, Wis. adm. code.
452.13 452.13 Trust accounts.
452.13(1)(1) Definitions. In this section:
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 licensee on behalf of a firm or any other person. "Client funds" does not include promissory notes.
Effective date note NOTE: Par. (a) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (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 firm that 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.
Effective date note NOTE: Par. (a) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (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 firm that maintains an interest-bearing common trust account shall do all of the following:
452.13(2)(b)1. 1. Register with the department 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 when any of the information required under subd. 1. is changed.
452.13(2)(b)3. 3. Furnish the department with a letter authorizing the department and the department of administration to examine and audit the interest-bearing common trust account whenever either department considers it necessary.
Effective date note NOTE: Par. (b) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (b) Any broker who maintains an interest-bearing common trust account shall do all of the following:
Effective date text 1. Register with the department of safety and professional services the name and address of the depository institution and the number of the interest-bearing common trust account.
Effective date text 2. Notify the department of safety and professional services when any of the information required under subd. 1. is changed.
Effective date text 3. Furnish the department of safety and professional services with a letter authorizing the department of safety and professional services and the department of administration to examine and audit the interest-bearing common trust account whenever the department of safety and professional services or the department of administration considers it necessary.
452.13(2)(bm) (bm) The department shall forward to the department of administration the information and documents furnished under par. (b).
Effective date note NOTE: Par. (bm) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (bm) The department of safety and professional services shall forward to the department of administration the information and documents furnished under par. (b).
452.13(2)(c) (c) A firm shall deposit all client funds in the interest-bearing common trust account.
Effective date note NOTE: Par. (c) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (c) A broker shall deposit all client funds in the interest-bearing common trust account.
452.13(2)(d) (d) The department of administration 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 firm shall direct the depository institution to do all of the following:
Effective date note NOTE: Par. (e) (intro.) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (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 administration 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 administration and to the firm maintaining the interest-bearing common trust account a statement that includes the name of the firm 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.
Effective date note NOTE: Subd. 2. is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text 2. When the interest remittance is sent, furnish to the department of administration 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) (f) A depository institution:
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 firm or, except as provided in subd. 3., against any other account, regardless of whether the same firm maintains the other account.
Effective date note NOTE: Subd. 1. is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text 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 administration.
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 administration.
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 firm that 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 licensee that deposits client funds in an interest-bearing common trust account in compliance with this section on behalf of a firm 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.
Effective date note NOTE: Sub. (3) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (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 firm to hold client funds or require a person to transfer client funds to a firm.
Effective date note NOTE: Sub. (4) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (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, the department of administration shall promulgate rules necessary to administer this section.
Effective date note NOTE: Sub. (5) is shown as amended eff. 7-1-16 by 2015 Wis. Act 258. Prior to 7-1-16 it reads:
Effective date text (5)Rules. In consultation with the department of safety and professional services, the department of administration shall promulgate rules necessary to administer this section.
452.13 Cross-reference Cross-reference: See also chs. Adm 91 and REEB 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.
452.132 452.132 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:
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2013-14 Wisconsin Statutes updated through 2015 Wis. Act 392 and all Supreme Court Orders entered before May 10, 2016. Published and certified under s. 35.18. Changes effective after May 10, 2016 are designated by NOTES. (Published 5-10-16)