Wis. Stat. § 452.138 — Firms providing services in more than one transaction

452.138 Firms providing services in more than one transaction.

Cross-reference: See definitions in s. 440.01. Cross-reference: See also REEB, Wis. adm. code.

452.01 Definitions. In this chapter: (1e) “Adverse fact” means any of the following: (a) A condition or occurrence that is generally recognized by a competent licensee as doing any of the following: 1. Significantly and adversely affecting the value of the property. 2. Significantly reducing the structural integrity of improvements to real estate. 3. Presenting a significant health risk to occupants of the property. (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction. (1m) “Agency agreement” means a written agreement between a firm and a client in which the client authorizes the firm to provide brokerage services to the client. (1o) “Associated with a firm” means to have been engaged by a firm to provide brokerage services to the firm’s clients and customers on behalf of the firm and under the firm’s supervision, including as an employee of the firm or as an independent contractor, or both. (1p) “Associated with a subagent” means to be associated with a firm that is engaged as a subagent. (1s) “Board” means real estate examining board. (2) “Broker” means any person not excluded by sub. (3), who does any of the following: (a) For another person, and for commission, money, or other thing of value, negotiates or offers or attempts to negotiate, whether directly or indirectly, a sale, exchange, purchase, or rental of, or the granting or acceptance of an option to sell, exchange, purchase, or rent, an interest or estate in real estate, a time share, or a business or its goodwill, inventory, or fixtures, whether or not the business includes real property. (b) Is engaged wholly or in part in the business of selling or exchanging interests or estates in real estate or businesses, including businesses’ goodwill, inventory, or fixtures, whether or not the business includes real property, to the extent that a pattern of sales or exchanges is established, whether or not the person owns the real estate or businesses. Five sales or exchanges in one year

452.139 452.14 452.142 452.15 452.17 452.18 452.19 452.20 452.21 452.22 452.23 452.24 452.25 452.30 452.34 452.38 452.40 452.42

Changes in common law duties and liabilities of brokers and parties. Investigation and discipline of licensees. Actions concerning licensees. Ineligibility. Penalties. Court review. Fees, commissions, and other compensation. Limitation on actions for commissions. Compensation presumed. Certifications as evidence. Disclosures and inspections by brokers and salespersons. Disclosure duty; immunity for providing notice about the sex offender registry. Criminal convictions and disclosures. Association with firm; independent practice. Unlicensed personal assistants. Independent contractor relationship. Use of forms; provision of legal advice. Records retention.

or 10 sales or exchanges in 5 years is presumptive evidence of a pattern of sales or exchanges. (bm) For another person, and for commission, money, or other thing of value shows real estate or a business or its inventory or fixtures, whether or not the business includes real property, except that this paragraph does not include showing a property that is offered exclusively for rent. (c) For another person, and for commission, money, or other thing of value, promotes the sale, exchange, purchase, option, rental, or leasing of real estate, a time share, or a business or its goodwill, inventory, or fixtures, whether or not the business includes real property. This paragraph does not apply to a person who only publishes or disseminates verbatim information provided by another person. (d) Issues a written report of property value that is prepared for another person and that is not an appraisal, as defined in s. 458.01 (1). (3) “Broker” does not include any of the following: (a) Receivers, trustees, personal representatives, guardians, or other persons appointed by or acting under the judgment or order of any court. (b) Public officers while performing their official duties. (c) Any bank, trust company, savings bank, savings and loan association, insurance company, or any land mortgage or farm loan association organized under the laws of this state or of the United States, when engaged in the transaction of business within the scope of its corporate powers as provided by law. (d) Employees of persons enumerated in pars. (a) to (c), (f), and (i) when engaged in the specific performance of their duties as such employees. (dm) Any employee of an attorney under par. (h) if all of the following are true: 1. The employee’s activities are directly supportive of the attorney’s provision of legal services to the attorney’s client. 2. The employee’s activities are activities that the attorney may perform under par. (h). 3. The employee is under the direction and supervision of the attorney. (e) Any custodian, janitor, employee or agent of the owner or manager of a residential building who exhibits a residential unit therein to prospective tenants, accepts applications for leases and furnishes such prospective tenants with information relative to

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the rental of such unit, terms and conditions of leases required by the owner or manager, and similar information. (f) Any credit union which negotiates loans secured by real estate mortgages or any licensee under ch. 138 which negotiates loans secured by real estate mortgages or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan, secured or to be secured by mortgage or other transfer of or encumbrance on real estate. (g) A person licensed as a mortgage banker under s. 224.72 who does not engage in activities described under sub. (2). (h) Attorneys licensed to practice in this state while acting within the scope of their attorney’s license. (i) A developer, as defined in s. 707.02 (11), negotiating a transaction involving a time share. (3e) “Brokerage service” means any service described under sub. (2) provided to a person by a firm and any licensees associated with the firm. (3j) “Business entity” means any organization or enterprise, other than a sole proprietorship, which is operated for profit or that is nonprofit and nongovernmental, including an association, business trust, corporation, joint venture, limited liability company, limited liability partnership, partnership or syndicate. (3k) “Business representative” means a director, manager, member, officer, owner or partner of a business entity. (3m) “Client” means a party to a transaction who has an agency agreement with a firm for brokerage services. (3p) “Crime” does not include a crime for which the individual has been pardoned; a crime for which the conviction has been reversed, set aside, or vacated; or a crime for which the conviction has been expunged under s. 973.015. (3s) “Customer” means a party to a transaction who is provided brokerage services by a firm and any licensees associated with the firm but who is not a client. (3w) “Designated agency” means a multiple representation relationship in which each client of the firm in the multiple representation relationship receives negotiation services from the firm only from licensees associated with the firm who are not providing negotiation services to any other client of the firm in the transaction. (4) “Disciplinary proceeding” means a proceeding against one or more licensees in which the board may revoke, suspend, or limit a license, reprimand a licensee, or assess a forfeiture or require education or training under s. 452.14 (4m) or (4r). (4v) “Felony” means a felony under the laws of this state or a crime committed elsewhere that would be a felony if committed in this state. “Felony” does not include a felony for which the applicant has been pardoned; a felony for which the conviction has been reversed, set aside, or vacated; or a felony for which the conviction has been expunged under s. 973.015. (4w) “Firm” means a licensed individual broker acting as a sole proprietorship or a licensed broker business entity. (4x) “Licensed broker business entity” means a broker licensed under s. 452.12 that is a business entity. (4y) “Licensed individual broker” means a broker licensed under s. 452.12 who is an individual. (5) “Licensee” means any person licensed under this chapter. (5c) “License number” means a number assigned to a person under s. 452.05 (1) (j). (5e) “Listing firm” means a firm that has entered into an agency agreement with a seller or landlord pursuant to which the firm lists property for sale or lease. (5g) “Material adverse fact” means an adverse fact that a party indicates is of such significance, or that is generally recog-

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nized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party’s decision to enter into a contract or agreement concerning a transaction or affects or would affect the party’s decision about the terms of such a contract or agreement. (5j) “Multiple representation relationship” means a relationship between a firm and 2 or more of the firm’s clients in which the clients are parties in the same transaction. (5m) “Negotiate” means to provide to a party assistance within the scope of the knowledge, skills, and training required under this chapter in developing a proposal or agreement relating to a transaction, including doing any of the following: (a) Acting, whether directly or indirectly, as an intermediary by facilitating or participating in communications between parties related to the parties’ interests in a transaction. In this paragraph, providing advice or opinions on matters that are material to a transaction in which a person is engaged or intends to engage or showing a party real estate does not, in and of itself, constitute acting as an intermediary by facilitating or participating in communications between parties. (b) Completing, when requested by a party, appropriate board-approved forms or other writings to document the party’s proposal consistent with the party’s instruction. (c) Presenting to a party the proposals of other parties to the transaction and giving the party a general explanation of the provisions of the proposal. (5n) “Out-of-state broker” means a person who is not licensed under this chapter and who is regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States, or a foreign country. (5p) “Out-of-state salesperson” means a person who is not licensed under this chapter and who is employed or engaged as an independent contractor by an out-of-state broker. (5r) “Party” means a person seeking to engage in a transaction. (5w) “Principal firm” means a firm that engages a subagent to provide brokerage services in a transaction. (6) “Real estate practice” means engaging in conduct which requires a license under this chapter. (7) “Salesperson” means any individual who is associated with a firm, other than a broker or an individual who is not required to hold a license under this chapter as provided under s. 452.03 (2). (7r) “Subagent” means a firm that is engaged by a principal firm to provide brokerage services in a transaction, but that is not associated with the principal firm. (8) “Time share” has the meaning given in s. 707.02 (24). (10) “Transaction” means the sale, exchange, purchase or rental of, or the granting or acceptance of an option to sell, exchange, purchase or rent, an interest in real estate, a business or a business opportunity. History: 1981 c. 94; 1983 a. 27; 1985 a. 305; 1987 a. 359, 399; 1987 a. 403 s. 256; 1989 a. 341; 1991 a. 221; 1993 a. 127; 1995 a. 27, 400; 1997 a. 263; 2001 a. 102; 2005 a. 87; 2009 a. 2; 2011 a. 32; 2013 a. 124, 259, 288; 2015 a. 195, 258; 2017 a. 110. A foreign corporation that entered into a brokerage contract to sell a radio station without being licensed in this state could not sue for its commission. The licensing requirement is not an unlawful burden on interstate commerce. Chapman Co. v. Service Broadcasting Corp., 52 Wis. 2d 32, 187 N.W.2d 794 (1971). Units of interest in a limited partnership are personalty and not real estate, and no real estate broker’s license is required for their sale. 60 Atty. Gen. 254. That one who owns stock in a corporation owns “an interest” in a business under sub. (2) (a) and that therefore anyone who negotiates a sale of stock requires a license under this section cannot be right. That would require every securities broker in Wisconsin to have a real estate broker’s license as well as a securities license. Schlueter v. Latek, 683 F.3d 350 (2012). The ‘New’ Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.

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452.03 Brokers and salespersons licensed. (1) Except as provided in s. 452.137, no person may engage in or follow the business or occupation of, or advertise or hold himself or herself out as, or act temporarily or otherwise as a broker or salesperson without a license issued under this chapter. The board may grant a license only to a person who is competent to transact that business or occupation in a manner that safeguards the interests of the public, and only after satisfactory proof of the person’s competence has been presented to the board. (2) No license under this chapter is required for an individual who, on behalf of and under the direction of a firm or one or more licensees associated with a firm, provides the firm or licensee with services that are limited to those that are purely administrative, clerical, or personal in nature. History: 1981 c. 94, 391; 1989 a. 307; 2011 a. 32; 2015 a. 258. Under this section, an agreement to pay a real estate brokerage commission to a person not licensed as a broker is void at its inception. Using a licensed broker who provides no actual services as a conduit for a fee to an unlicensed person does not create a co-brokerage arrangement authorized by s. 452.19. Badger III Ltd. Partnership v. Howard, Needles, Tammen & Bergendoff, 196 Wis. 2d 891, 539 N.W.2d 904 (Ct. App. 1995), 94-2531. Officers of a corporation or partners of a partnership can act for the corporation or partnership in the rental of real estate owned by the entity without being licensed as real estate brokers. 60 Atty. Gen. 1. Actions of a tenants’ union on behalf of its members may require a real estate broker’s license. 60 Atty. Gen. 118. Discussing the permitted limits of nonlicensed independent contractor agents. 70 Atty. Gen. 23.

452.05 Duties and powers of board. (1) In addition to the other duties and responsibilities of the board under this chapter, the board shall advise the secretary on matters relating to real estate practice and shall: (a) Grant and issue licenses to individuals and business entities to act as brokers and to individuals to act as salespersons. (b) Approve forms for use in real estate practice. The board may conduct public hearings on matters relating to the approval of forms used in real estate practice. The board may also solicit comments relating to forms used in real estate practice from the council on forms created under s. 452.06 (1) (a) or from a professional trade association whose members consist primarily of licensees actively engaged in real estate practice. (c) After consultation with the council on real estate curriculum and examinations, promulgate rules establishing criteria for the approval of educational programs and training sessions under s. 452.09 (2) and approve such programs and sessions in accordance with the established criteria. (d) After consultation with the council on real estate curriculum and examinations, brokers and salespersons licensed under this chapter, and interested members of the public, establish criteria for the approval of continuing educational programs and courses in real estate related subjects required for renewal under s. 452.12 (5) (c). (g) Approve continuing educational programs and courses in accordance with the criteria established under par. (d). In order to be approved, a continuing educational program or course must require brokers and salespersons to pass an examination on the information presented at the program or course in order to successfully complete and receive continuing education credit for the program or course under s. 452.12 (5) (c). (i) Create a form on which an individual applying to renew a broker’s or salesperson’s license may do all of the following: 1. State whether he or she has been convicted of a crime since he or she last applied to renew the license or, for an initial renewal, since he or she initially applied for the license. 2. Identify the date of conviction for any crime described under subd. 1. and describe the nature and circumstances of the crime. 3. Sign his or her name to attest to the accuracy and truthful-

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ness of the information under subds. 1. and 2. and to acknowledge all of the following: a. The department’s authority to conduct an investigation under s. 440.03 (13). b. The board’s authority to revoke the license under s. 452.14 (3) (o). c. The board’s authority to assess forfeitures under s. 452.14 (4r). (j) Assign a unique license number to each person licensed under this chapter. (1m) (a) In this subsection: 1. “Certified local register of historic property” means a register of historic property that is part of a historic preservation ordinance enacted by a city, village, town or county if the ordinance is certified by the state historical society under s. 44.44. 2. “Commercial real property” means real property that is classified as commercial under s. 70.32 (2) (a) 2. 3. “Historic building” means a building that fulfills at least one of the following requirements: a. Is listed on a certified local register of historic property, if that fact is specified in a statement recorded in the office of the register of deeds for the county in which the commercial real estate is located. b. Is included in a district that is listed on a certified local register of historic property, if that fact is specified in a statement recorded in the office of the register of deeds for the county in which the commercial real estate is located, and has been determined by the city, village, town or county to contribute to the historic significance of the district. (b) In preparing the form for the offer to purchase commercial real property under sub. (1) (b), the board shall include a statement that the seller represents to the buyer that the seller has no notice or knowledge that the commercial real property is a historic building. (2) The board may prepare letters and bulletins and conduct clinics disseminating information to its licensees. (3) The board may enter into reciprocal agreements with officials of other states or territories of the United States for licensing brokers and salespersons and grant licenses to applicants who are licensed as brokers or salespersons in those states or territories according to the terms of the reciprocal agreements. History: 1981 c. 94, 391; 1985 a. 305 ss. 1t, 7; 1987 a. 399; 1989 a. 307, 341; 1991 a. 39; 1993 a. 141; 1995 a. 27; 1997 a. 27; 2003 a. 168; 2011 a. 32; 2013 a. 288; 2015 a. 258; 2017 a. 110, 278; 2017 a. 365 s. 111. A corporation cannot be licensed as a real estate salesperson. 71 Atty. Gen. 38.

452.06 Councils and committees. (1) (a) The board shall create a council on forms that shall meet when directed by the board, be chaired by a member of the board, and report to the board. (b) Any proposed change in a form relating to real estate practice shall be referred to the council on forms for review before the form is approved. (c) The board may direct the council on forms to create or modify a form relating to real estate practice and submit that form to the board for approval. If the board directs the council to create or modify a form, the board shall establish a deadline for the council to submit the form to the board. (2) The council on real estate curriculum and examinations shall do all of the following: (a) Advise the board on establishing continuing education requirements under s. 452.05 (1) (d). (b) Not less than annually, review subjects covered on examinations for licensure under this chapter and the qualifications for instructors of and performance evaluations for educational and

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continuing educational programs, training sessions, and courses approved under this chapter. (3) If the secretary creates any councils or committees under s. 15.04 (1) (c) to provide advice to the department or board on matters relating to real estate practice, such councils or committees shall be chaired by a member of the board, if available, and shall report to the board and the secretary. (4) The secretary shall provide staff and other support required for the operation of councils and committees created under this section or under s. 15.04 (1) (c) to provide advice to the department or board, as appropriate, on matters relating to real estate practice. History: 1981 c. 94; 1989 a. 341; 1991 a. 39; 2011 a. 32; 2017 a. 110.

452.07 Rules. (1) The board shall promulgate rules for the guidance of the real estate profession and define professional conduct and unethical practice. (1m) The board may promulgate rules regarding the supervisory responsibilities of brokers under s. 452.132. (3) The board may promulgate rules regarding advertising by brokers or salespersons that do not conflict with s. 452.136. History: 1981 c. 94; 1985 a. 182 s. 57; 1987 a. 403 s. 256; 2001 a. 16; 2011 a. 32; 2013 a. 288; 2015 a. 258; 2017 a. 110, 278.

452.08 Board receipt of proposed legislation. The secretary shall submit to the board in writing any legislation proposed by the department relating to licensees or the board prior to introduction in the legislature. History: 1981 c. 94.

452.09

Application for license, contents. (1) FORM OF APPLICATION. Any person desiring to act as a broker or salesperson shall submit to the board an application for a license. The application shall be in such form as the board prescribes and shall include the following: (a) The kind of license desired. (b) The name and address of the applicant. If the applicant is a business entity, the application shall also include the name and address of each business representative and the license number of each business representative licensed as a broker under this chapter. (d) The business or occupation engaged in by the applicant, or if a business entity, by each business representative, for a period of at least 2 years immediately preceding the date of the application. (e) Any other information that the board may reasonably require to enable it to determine the competency of each applicant, including each business representative of the business entity, to transact the business of a broker or salesperson in a manner that safeguards the interests of the public. (2) EDUCATIONAL REQUIREMENTS FOR APPLICANTS FOR LICENSES. (a) Except as provided in a reciprocal agreement under s. 452.05 (3), each applicant for a salesperson’s license shall submit to the board evidence satisfactory to the board of successful completion of educational programs approved for this purpose under s. 452.05 (1) (c). The board may waive the requirement under this paragraph upon proof that the applicant has received 10 academic credits in real estate or real estate related law courses from an accredited institution of higher education. (c) Except as provided in par. (d) or a reciprocal agreement under s. 452.05 (3), each applicant for a broker’s license to be issued to an individual shall do all of the following: 1. Satisfy or obtain a waiver of the requirement under par. (a) or submit proof of licensure as a salesperson under this chapter. 2. Submit to the board evidence satisfactory to the board of

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successful completion of educational programs in business management approved for this purpose under s. 452.05 (1) (c). No educational programs applied to satisfy the requirement under subd. 1. may be applied to satisfy the requirement under this subdivision. (d) The board may waive the requirements under par. (c) upon proof that the applicant has received 20 academic credits in real estate or real estate related law courses from an accredited institution of higher education or that the applicant is licensed to practice law in this state. (3) COMPETENCY OF APPLICANT. (a) In determining competency, the board shall require proof that the applicant for a broker’s or salesperson’s license has a fair knowledge of the English language; a fair understanding of the general purposes and general legal effect of deeds, mortgages, land contracts of sale, leases, bills of sale, and conditional sales contracts; and a general and fair understanding of the obligations between principal and agent, as well as of this chapter. The board shall deny a license to an applicant receiving a failing grade, as established by rules of the board, on any examination given under this section, but any applicant may review his or her examination results in a manner established by rules of the board. (b) The board shall determine competency under par. (a) by means of only an oral examination for any applicant who is unable to write because of a physical handicap. (c) Examinations shall reliably measure an applicant’s ability to competently engage in real estate practice. (d) Except as provided under s. 452.12 (2) or in a reciprocal agreement under s. 452.05 (3), the board may not grant a broker’s license to an applicant unless the applicant passes the salesperson’s examination and the broker’s examination and meets the requirements under sub. (4). (4) EXPERIENCE REQUIREMENTS FOR BROKER’S LICENSE APPLICANTS. (a) 1. An applicant for a broker’s license who is an individual shall submit to the board evidence satisfactory to the board that the applicant has practiced as a licensed salesperson under the direct supervision of a licensed broker for at least 2 years within the last 4 years preceding the date of the applicant’s application for a broker’s license. 2. Except as provided under pars. (b) to (e), the board may not accept evidence as satisfactory under subd. 1. unless the evidence demonstrates that the applicant’s experience as a licensed salesperson qualifies the applicant for a total of at least 40 points based on the following point system: a. Each completed or closed residential transaction is worth 5 points. b. Each completed or closed commercial transaction is worth 10 points. c. Each property management contract is worth 0.5 points per month. d. Each completed or closed time share is worth one point. (b) An applicant who is licensed to practice law in this state may satisfy the requirement under par. (a) by submitting to the board evidence satisfactory to the board that the applicant has experience related to real estate. (c) An applicant who holds a current certificate of financial responsibility under s. 101.654 may satisfy the requirement under par. (a) by submitting to the board evidence satisfactory to the board that the applicant has experience related to real estate sales. (d) Except as provided in a reciprocal agreement under s. 452.05 (3), an applicant for a broker’s license who is a nonresident may satisfy the requirement under par. (a) by submitting to the board evidence satisfactory to the board that the applicant has been a licensed broker under the laws of another state for at least

May 22, 2026, are designated by NOTES. (Published 5-22-26)

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2 years within the last 4 years preceding the date of the applicant’s application for a broker’s license. (e) The board may waive any requirement under par. (a), (b), (c), or (d) for any applicant based on standards established by the board by rule. History: 1981 c. 94, 391; 1983 a. 273; 1985 a. 305; 1989 a. 341; 1995 a. 400; 1997 a. 27; 2003 a. 168; 2009 a. 110; 2011 a. 32; 2013 a. 114, 133; 2015 a. 258.

452.10 Applications, verification, fees, exceptions. (1) An application shall be verified by the applicant. If made by a business entity it shall be verified by a business representative that is a licensed individual broker or a licensed broker business entity and that is acting as a business representative for the business entity. (2) (a) Each new application for a license under this chapter shall be for the remainder of the biennial license period. (b) Unless an application is withdrawn in writing before the board has made any investigation, no part of the fee shall be returned. (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). (6) In the case of applications for renewals of licenses the board may dispense with such matters contained in s. 452.09 (1) as it deems unnecessary in view of prior applications. History: 1981 c. 94, 314, 391; 1983 a. 27, 273; 1985 a. 305; 1987 a. 264, 399; 1989 a. 307; 1991 a. 39; 1995 a. 400; 2007 a. 20; 2011 a. 32; 2015 a. 258. 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 Nonresident applicants and licensees. (1) A nonresident may become a broker or salesperson by conforming to all the provisions of this chapter. (3) Every nonresident applicant, and every resident licensee who becomes a nonresident, shall file with the board 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 board 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. (4) Any process or pleading under this section shall be served in duplicate upon the board or its duly authorized employee. One copy shall be filed with the board 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 board by the nonresident licensee. No default in any such proceeding or action may be taken unless it appears by affidavit of the chairperson of the board 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. History: 1981 c. 94; 1983 a. 27; 1987 a. 399; 1991 a. 207; 2011 a. 32; 2015 a. 258.

452.12 Licenses. (1) EXPIRATION. A license granted by the board 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). (2) BUSINESS ENTITIES. (a) A broker’s 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 busi-

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ness entity licensed as a broker to act as a broker on behalf of the business entity. A broker may act as a business representative for more than one business entity if the broker obtains the express, written consent of each business entity for which the broker desires to act as a business representative. A broker may act as a broker on behalf each business entity for which it is serving as a business representative. (c) Application for a broker’s license to be issued to a business entity shall be made on forms prescribed by the board, listing the names and addresses of all business representatives and the license numbers of all business representatives that are licensed brokers, 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 board, on the same form, within 30 days after the effective date of the change. (3) FIRM’S RESPONSIBILITY FOR ACTS OF LICENSEES. Subject to s. 452.139 (3), a firm is responsible for the brokerage services provided on behalf of the firm by a licensee associated with the firm only to the extent that the firm fails to comply with s. 452.132 and any rules promulgated under s. 452.07 (1m) with respect to that licensee. (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. (5) RENEWAL. (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). (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. (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: 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. 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. 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. (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). (d) At the time of renewal, each broker or salesperson who is an individual shall complete the form under s. 452.05 (1) (i). History: 1981 c. 94; 1983 a. 27; 1985 a. 305; 1987 a. 264, 399; 1989 a. 307, 341; 1991 a. 39; 1995 a. 27, 400; 1997 a. 27, 191, 237; 2001 a. 16; 2005 a. 87; 2007 a. 20; 2011 a. 32; 2013 a. 288; 2015 a. 258, 269; 2017 a. 365.

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452.13 Trust accounts. (1) DEFINITIONS. In this section: (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. (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. (2) INTEREST-BEARING COMMON TRUST ACCOUNT. (a) A firm that holds client funds shall establish an interest-bearing common trust account in a depository institution. The interestbearing 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. (b) Any firm that maintains an interest-bearing common trust account shall do all of the following: 1. Register with the department the name and address of the depository institution and the number of the interest-bearing common trust account. 2. Notify the department when any of the information required under subd. 1. is changed. 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. (bm) The department shall forward to the department of administration the information and documents furnished under par. (b). (c) A firm shall deposit all client funds in the interest-bearing common trust account. (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. (e) For each interest-bearing common trust account, the firm shall direct the depository institution to do all of the following: 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. 2. When the interest remittance is sent, furnish to the department of administration and to the firm maintaining the interestbearing 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. (f) A depository institution: 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. 2. May not assess a service charge or fee for an interest-bearing common trust account against the department of administration. 3. May deduct a service charge or fee from the interest earned by an interest-bearing common trust account, and if a bal-

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ance 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. 4. May not deduct a service charge or fee from the principal of an interest-bearing common trust account. (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. (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. (5) RULES. In consultation with the department, the department of administration shall promulgate rules necessary to administer this section. History: 1981 c. 94, 391; 1985 a. 305; 1987 a. 399; 1989 a. 307; 1991 a. 221; 1993 a. 33; 2005 a. 25; 2011 a. 32; 2015 a. 258. Cross-reference: See also chs. Adm 91 and REEB 18, Wis. adm. code. Security deposits by a tenant usually create a debtor-creditor relationship. A broker retaining a deposit should deposit it in the broker’s trust account. 60 Atty. Gen. 1. The Federal National Mortgage Association (FNMA) is exempt from the requirements of this section, but private mortgage bankers or mortgage brokers licensed as real estate brokers under this chapter, and servicing mortgages for FNMA must deposit loan, insurance, and tax escrow moneys in an authorized trust account in a bank located in Wisconsin, subject to audit by the board. 60 Atty. Gen. 514.

452.132 Responsibilities of firms and licensees. (1) A firm shall supervise the brokerage service activities of each licensee associated with the firm, including by doing all of the following: (a) Ensuring that a supervising broker for the firm complies with sub. (4). (b) Providing a licensee with reasonable access to a supervising broker for the purpose of consultation regarding real estate practice issues. (2) A firm shall do all of the following: (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. (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. (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. (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). (4) (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): 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). 2. All trust account records relating to the transaction.

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(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. (5) (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. (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. (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. (d) A firm may delegate the duty to supervise licensees to more than one supervising broker. (6) (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. (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. History: 2015 a. 258.

452.133 Duties of licensees; prohibitions. (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: (a) The duty to provide brokerage services honestly and fairly. (b) The duty to provide brokerage services with reasonable skill and care. (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. (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. (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. (f) The duty to safeguard trust funds and other property held as required by rules promulgated under s. 452.13 (5). (g) When the firm is negotiating on behalf of a party, the duty

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to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals. (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: (a) The duty to loyally represent the client’s interests by doing all of the following: 1. Placing the client’s interests ahead of the interests of the firm. 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. (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. (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. (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. (d) The duty to negotiate on behalf of the client. (3) PROHIBITED CONDUCT. In providing brokerage services, a licensee may not do any of the following: (a) Accept any fee or compensation related to the transaction from any person other than the licensee’s client or firm without the prior written consent of all parties to the transaction. This paragraph does not prohibit an out-of-state broker from accepting a fee or compensation in the case of a cooperative agreement under s. 452.137 (2) (am). NOTE: Par. (a) is shown as amended eff. 1-1-27 by 2025 Wis. Act 69. Prior to 1-1-27 it reads: (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.

(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. (c) Except as provided in s. 452.19 (1m) (a), 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. NOTE: Par. (c) is shown as amended eff. 1-1-27 by 2025 Wis. Act 69. Prior to 1-1-27 it reads: (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.

(d) Negotiate the sale, exchange, purchase, or rental of personal property unless related to the transaction. The licensee may

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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). (4) SUBAGENT’S DUTIES. (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). (b) A subagent may not do any of the following: 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. 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. (4m) DUTIES AND PROHIBITIONS; APPLICATION TO LICENSEES. (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). (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). (c) 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). 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). (d) The duties and prohibitions under pars. (a) to (c) extend only to a licensee providing brokerage services to a party to the transaction. (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. (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: (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). (b) A statement that as a consequence of the client’s waiver, the client may require the assistance of an attorney or another ser-

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vice provider to fulfill the client’s goals and contractual duties in the transaction. History: 1993 a. 127; 1995 a. 400; 2005 a. 87; 2015 a. 258; 2017 a. 110; 2025 a. 69. The New Real Estate Agency Law: Redefining the Role of Real Estate Brokers. Smith & Staff. Wis. Law. Oct. 1994. The ‘New’ Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.

452.134 Agency relationships; multiple representation relationships. (1) AGENCY RELATIONSHIP NOT REQUIRED. (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. (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: 1. The firm’s client. 2. A client of a principal firm who has engaged the firm as a subagent. (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. (3) DESIGNATED AGENCY. (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. (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. (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. History: 2005 a. 87; 2015 a. 258; 2017 a. 110. The ‘New’ Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.

452.135 Disclosure of duties. (1) (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.

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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. The duty to safeguard trust funds and other property held by the firm or its agents. The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals. Please review this information carefully. An agent of the firm 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 to a customer under section 452.133 (1) of the Wisconsin statutes. (b) If a firm is providing brokerage services as a subagent to a principal firm, the subagent, or a licensee associated with the subagent, shall provide a copy of the written disclosure statement under par. (a) to any person who is not the principal firm’s client and who receives brokerage services from the subagent within the scope of the agreement between the subagent and the principal firm. (2) (a) Except as provided in par. (b), a firm shall provide to a client a copy of the following written disclosure statement not later than the time the firm enters into an agency agreement with the client: DISCLOSURE TO CLIENTS Under Wisconsin law, a brokerage firm (hereinafter firm) and its brokers and salespersons (hereinafter agents) owe certain duties to all parties to a transaction: 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. The duty to safeguard trust funds and other property the firm or its agents holds. The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals. 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

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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. SUBAGENCY Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by

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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. (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. History: 1993 a. 127; 2005 a. 87; 2007 a. 97; 2015 a. 258; 2017 a. 365 s. 111. The ‘New’ Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.

452.1355 Transactions involving residential property. (1) A listing firm representing an owner in a transaction involving the owner’s residential property containing one to 4 dwelling units shall, except as provided in sub. (4), do all of the following: (a) Share information on the property with any licensees representing prospective buyers or tenants. (b) Respond to inquiries from any licensees representing prospective buyers or tenants. (c) Make the property available for showing to prospective buyers or tenants. (d) Within one business day from the start date of any agency agreement authorizing the listing firm to sell or lease the owner’s property, advertise or market the owner’s property for sale or lease on one or more Internet platforms or websites accessible to the general public and any real estate licensees representing prospective buyers or tenants, unless the owner completes and signs a disclosure and opt-out form prescribed by the department that includes all of the following: 1. The owner’s written request that the listing firm withhold the owner’s property from public marketing or advertising identified by the owner, along with a statement of the reason for the request. 2. The owner’s written acknowledgment, initialed by the owner, that all of the following apply: a. Real estate licensees and prospective buyers or tenants may not be aware that the owner’s property is available for sale or lease. b. The owner’s property will not appear on Internet platforms or websites that are used by the general public to search for property listings. c. Licensees and prospective buyers or tenants may not be aware of the terms and conditions under which the owner is offering the property for sale or lease. d. The reduced exposure of the property may reduce the number of offers to purchase or lease the property, may result in reduced sales or lease price for the property, and may negatively affect the owner’s ability to sell or lease the property at terms favorable to the owner. (2) A licensee who, in good faith, acts to fulfill the duties under sub. (1) may not be held civilly liable for any disclosure or representation made in fulfilling those duties, unless the licensee knowingly makes a false, deceptive, or misleading representation.

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(3) The owner of a residential property containing one to 4 dwelling units may authorize the use of electronic signatures for all documents related to any agency agreement or any disclosure for which a signature is required. (4) The owner of a residential property containing one to 4 dwelling units may identify by name any licensee, prospective buyer, or prospective tenant that the owner does not wish to work with or allow to view the property, provided that such restrictions comply with all applicable state and federal laws. (5) The board shall develop and make publicly available a consumer brochure that includes all of the following: (a) An explanation of the benefits of publicly marketing property to increase exposure and attract interest from prospective buyers or tenants. (b) Information on the potential impacts of limiting the marketing of a property. (c) An explanation of the purpose and implications of signing the disclosure and opt-out form under sub. (1) (d). (d) Guidance on how marketing restrictions may affect exposure, competition, and final sale price. (e) Sample questions for consumers to ask listing firms regarding their marketing strategies. NOTE: This section is created eff. 1-1-27 by 2025 Wis. Act 69. History: 2025 a. 69.

452.136 Advertising by licensees. (1) FALSE ADVERTISING. A licensee may not advertise in a manner that is false, deceptive, or misleading. (1m) ADVERTISING ENHANCED BY TECHNOLOGY. A licensee shall in all advertising disclose if the advertising has been altered or modified using technology, including artificial intelligence, to add, remove, or change elements of the property, that creates a false or misleading impression of the property. NOTE: Sub. (1m) is created eff. 1-1-27 by 2025 Wis. Act 69.

(2) DISCLOSURE OF NAME. (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. (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). (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. (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: (a) The firm is the listing firm for the property. (b) The firm or a licensee associated with the firm has obtained consent to advertise the property from the listing firm for the property. (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. History: 2017 a. 110; 2025 a. 69; s. 35.17 correction in (1m).

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats.

452.137 Cooperation with out-of-state brokers and salespersons. (1) DEFINITIONS. In this section: (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. (cm) 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. 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 unitby-unit basis. (d) “Cooperative agreement” means an agreement entered into between an out-of-state broker and a firm as provided in this section. (e) “Dwelling unit” has the meaning given in s. 440.97 (3). (h) “Licensed salesperson” means a salesperson who is licensed under this chapter. (2) OUT-OF-STATE BROKERS. (a) An out-of-state broker may act as a broker in this state only as provided in par. (ag) or (am). (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: 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. 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. (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: 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. 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. 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-ofstate 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. (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: 1. Enter into a listing agreement concerning any property located in this state. 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. 3. Enter into a cooperative agreement with a person who is

REAL ESTATE PRACTICE

452.137

not licensed under this chapter as authority to sell, lease, rent, exchange, or attempt to sell, lease, rent, or exchange property in this state. (bm) An out-of-state broker acting under par. (am) may not do any of the following: 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. 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. 3. Have contact with another firm or another firm’s seller or landlord, unless otherwise agreed to in the cooperative agreement. (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. (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. (e) 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. 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. (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. (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. (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: (a) The out-of-state broker who employs the out-of-state salesperson satisfies all of the applicable requirements under sub. (2).

May 22, 2026, are designated by NOTES. (Published 5-22-26)

452.137

REAL ESTATE PRACTICE

(b) The out-of-state salesperson works under the direct supervision of the out-of-state broker. (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. (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. (4) COOPERATIVE AGREEMENT. (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. (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: 1. Establish the terms of cooperation between the out-of state broker, any out-of-state salesperson, and the firm. 2. Establish the terms of the out-of-state broker’s compensation. 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. (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. (5) PENALTY. (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. (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: 1. Five thousand dollars. 2. For a sales transaction, 1 percent of the purchase price of the property subject to the cooperative agreement. 3. For a lease or rental transaction, 1 percent of the total lease or rental value of the property subject to the cooperative agreement. History: 2013 a. 259; 2015 a. 47; 2015 a. 195 s. 83; 2015 a. 258; 2017 a. 110.

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. History: 1993 a. 127; 2005 a. 87; 2015 a. 258.