Because you have entered into an agency agreement with a firm, you are the firm's client. A firm owes additional duties to you as a client of the firm:
The firm or one of its agents will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the firm from this duty. The firm or one of its agents must provide you with all material facts affecting the transaction, not just adverse facts.
The firm and its agents will fulfill the firm's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement.
The firm and its agents will negotiate for you, unless you release them from this duty.
The firm and its agents will not place their interests ahead of your interests. The firm and its agents will not, unless required by law, give information or advice to other parties who are not the firm's clients, if giving the information or advice is contrary to your interests.
If you become involved in a transaction in which another party is also the firm's client (a “multiple representation relationship"), different duties may apply.
MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY
A multiple representation relationship exists if a firm has an agency agreement with more than one client who is a party in the same transaction. If you and the firm's other clients in the transaction consent, the firm may provide services through designated agency, which is one type of multiple representation relationship.
Designated agency means that different agents with the firm will negotiate on behalf of you and the other client or clients in the transaction, and the firm's duties to you as a client will remain the same. Each agent will provide information, opinions, and advice to the client for whom the agent is negotiating, to assist the client in the negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if the information, opinions, or advice gives the client advantages in the negotiations over the firm's other clients. An agent will not reveal any of your confidential information to another party unless required to do so by law.
If a designated agency relationship is not authorized by you or other clients in the transaction, you may still authorize or reject a different type of multiple representation relationship in which the firm may provide brokerage services to more than one client in a transaction but neither the firm nor any of its agents may assist any client with information, opinions, and advice which may favor the interests of one client over any other client. Under this neutral approach, the same agent may represent more than one client in a transaction.
If you do not consent to a multiple representation relationship the firm will not be allowed to provide brokerage services to more than one client in the transaction.
CHECK ONLY ONE OF THE THREE BELOW:
________The same firm may represent me and the other party as long as the same agent is not representing us both. (multiple representation relationship with designated agency)
________The same firm may represent me and the other party, but the firm must remain neutral regardless if one or more different agents are involved. (multiple representation relationship without designated agency)
________The same firm cannot represent both me and the other party in the same transaction. (I reject multiple representation relationships)
NOTE: All clients who are parties to this agency agreement consent to the selection checked above. You may modify this selection by written notice to the firm at any time. Your firm is required to disclose to you in your agency agreement the commission or fees that you may owe to your firm. If you have any questions about the commission or fees that you may owe based upon the type of agency relationship you select with your firm, you should ask your firm before signing the agency agreement.
Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by providing brokerage services for your benefit. A subagent firm and the agents with the subagent firm will not put their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests.
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.
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.
History: 1993 a. 127
; 2005 a. 87
; 2007 a. 97
; 2015 a. 258
; s. 35.17 correction in (1) (a).
The `New' Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.
Cooperation with out-of-state brokers and salespersons. 452.137(1)(a)
“Cooperative agreement" means the agreement established by the board under sub. (4)
“Licensed salesperson" means a salesperson who is licensed under this chapter.
Except as provided in par. (b)
, an out-of-state broker may act as a broker in this state only if the out-of-state broker does all of the following:
Enters into a cooperative agreement with a firm and cooperates with the firm on the listing agreement that is subject to the cooperative agreement. Each cooperative agreement may cover only one listing agreement.
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.
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:
Enter into a listing agreement concerning any property located in this state.
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.
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, shall comply with the laws of this state, 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.
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.
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.
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.
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.
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.
(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:
The out-of-state broker who employs the out-of-state salesperson satisfies all of the applicable requirements under sub. (2)
The out-of-state salesperson works under the direct supervision of the out-of-state broker.
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.
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.
The board shall establish a form to be used for a cooperative agreement under this section, which shall include any required terms for such an agreement.
A cooperative agreement may be entered into only through the use of the form established by the board under par. (a)
and shall do at least all of the following:
Establish the terms of cooperation between the out-of state broker, any out-of-state salesperson, and the firm.
Establish the terms of the out-of-state broker's compensation.
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.
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.
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:
For a sales transaction, 1 percent of the purchase price of the property subject to the cooperative agreement.
For a lease or rental transaction, 1 percent of the total lease or rental value of the property subject to the cooperative agreement.
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.
See also ch. REEB 24
, Wis. adm. code.
Changes in common law duties and liabilities of brokers and parties. 452.139(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.
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.
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.
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.
(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. 452.07 (2)
See also ch. REEB 24
, Wis. adm. code.
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.
The board may commence disciplinary proceedings on any matter under investigation concerning a licensee.
The board shall conduct disciplinary proceedings in accordance with the rules adopted under s. 440.03 (1)
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:
Made a material misstatement in the application for a license, or in any information furnished to the board or department.
Made any substantial misrepresentation with reference to a transaction injurious to a party in which the licensee acts as agent.
Made any false promises of a character such as to influence, persuade, or induce a party to his or her injury or damage.
Pursued a continued and flagrant course of misrepresentation or made false promises through other licensees or through advertising.
Accepted from any person except the firm with which the licensee is associated, if the licensee is associated with a firm, a commission or valuable consideration for the performance of any act specified in this chapter or as compensation for referring a person to another licensee or to any other person in connection with a transaction.
Represented or attempted to represent a firm without the express knowledge and consent of the firm.
Failed, within a reasonable time, to account for or remit any moneys coming into the licensee's possession which belong to another person.
Demonstrated incompetency to act as a broker or salesperson, whichever is applicable, in a manner which safeguards the interests of the public.
Paid or offered to pay a commission or valuable consideration to any person for acts or services in violation of this chapter.
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 licensee 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)
Been guilty of any other conduct, whether of the same or a different character from that specified herein, that constitutes improper, fraudulent, or dishonest dealing.
Violated any provision of this chapter or any rule promulgated under this chapter.