REEB 24.05
REEB 24.05
Disclosure of compensation and interests. REEB 24.05(2)
(2)
Disclosure of interest. A licensee shall follow the requirements for disclosure of interest as specified under s.
452.133 (3) (b), Stats.
REEB 24.05(4)
(4)
Disclosure to seller. A listing firm may not pay any compensation or incentive to a licensee who is acting as a buyer in a transaction without prior written consent from the seller.
REEB 24.05(5)(a)(a) A licensee acting as a principal in a real estate or business opportunity transaction shall disclose his, her, or its license status and intent to act in the transaction as a principal at the earliest of all of the following:
REEB 24.05(5)(a)1.
1. The first contact with the other party or an agent representing the other party where information regarding the other party or the transaction is being exchanged.
REEB 24.05(5)(a)3.
3. Any other negotiation with the seller, the listing firm, or other party or firm representing the other party.
REEB 24.05(5)(b)
(b) The disclosure under this subsection shall be made in writing to the other party in a transaction or to an agent representing the other party.
REEB 24.05 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; renum. (3) and (4) to be (4) and (5), cr. (3),
Register, December, 1980, No. 300, eff. 1-1-81; am. (5),
Register, March, 1981, No. 303, eff. 4-1-81; renum. from REB 15.05,
Register, February, 1983, No. 326, eff. 3-1-83; am. (1) and (5),
Register, June, 1988, No. 390, eff. 7-1-88; r. and recr.
Register, July, 1993, No. 451, eff. 8-1-93; am. (1), (2), (3), (5),
Register, April, 1995, No. 472, eff. 5-1-95; renum. (5) to be (5) (a) (intro.), cr. (5) (a) 1. to 3., and (b),
Register, January, 2001, No. 541, eff. 2-1-01;
CR 10-136: am. (title), (1) (title), renum. (1) to be (1) (a) and am., am. (2), r. (3) (title), renum. (3) to be (1) (b) and am., r. and recr. (4), am. (5) (b)
Register April 2012 No. 676, eff. 7-1-12;
EmR1620: emerg. am. (1) (a), (2), (4), (5) (a) 3., eff. 7-1-16;
CR 16-042: am. (1) (a), (2), (4), (5) (a) 3.
Register February 2017 No. 734, eff. 3-1-17;
CR 21-043: r. and recr. (1), (2), am. (5) (a) 3. Register March 2022 No. 795, eff. 4-1-22.
REEB 24.06
REEB 24.06
Unauthorized practice of law. REEB 24.06(1)(1)
Unauthorized practice of law prohibited. Licensees shall not engage in activities that constitute the unauthorized practice of law.
REEB 24.06(2)
(2)
Legal counsel not to be discouraged. Licensees shall not discourage any person from retaining an attorney.
REEB 24.06 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; renum. from REB 15.06,
Register, February, 1983, No. 326, eff. 3-1-83.
REEB 24.07
REEB 24.07
Inspection and disclosure duties. REEB 24.07(1)(a)
(a) General requirement. A licensee, when engaging in real estate practice that involves real estate improved with a structure, shall conduct a reasonably competent and diligent inspection of accessible areas of the structure and immediately surrounding areas of the property to detect observable, material adverse facts. A licensee, when engaging in real estate practice that involves vacant land, shall, if the vacant land is accessible, conduct a reasonably competent and diligent inspection of the vacant land to detect observable material adverse facts.
REEB 24.07(1)(b)
(b)
Listing firm. When listing real estate and prior to execution of the listing contract, a licensee shall inspect the real estate as required by sub.
(1), and shall make inquiries of the seller on the condition of the structure, mechanical systems and other relevant aspects of the property as applicable. The licensee shall request that the seller provide a written response to the licensee's inquiry.
REEB 24.07(1)(c)
(c)
Other licensees. Licensees, other than listing firms, shall inspect the real estate as required by sub.
(1) prior to or during a showing of the property, unless the licensee is not given access for a showing.
REEB 24.07(1)(d)
(d)
Specific conduct regarding inspections. A reasonably competent and diligent inspection of real estate improved with a structure does not require the operation of mechanical equipment; the opening of panels, doors or covers for access to mechanical systems; or the moving of furniture, boxes or other property; nor does it require a licensee to observe areas of the property for which entry presents an unreasonable risk of injury or areas accessible only by ladder, by crawling or other equivalent means of access. A licensee is not required to retain third party inspectors or investigators to complete a reasonably competent and diligent inspection. A reasonably competent and diligent inspection of vacant land does not require an observation of the entire property, but shall include, if given access, an observation of the property from at least one point on or adjacent to the property.
REEB 24.07(2)
(2)
Disclosure of material adverse facts. A licensee may not exaggerate or misrepresent facts in the practice of real estate. A licensee, when engaging in real estate practice, shall disclose to each party, in writing and in a timely fashion, all material adverse facts that the licensee knows and that the party does not know or cannot discover through a reasonably vigilant observation, unless the disclosure of the material adverse fact is prohibited by law. This provision is not limited to the condition of the property, but includes other material adverse facts in the transaction.
REEB 24.07 Note
Note: Certain “material adverse facts", as defined in s.
REEB 24.02 (12), may not be disclosed by law. For example, unless specifically authorized by a seller, a licensee may not disclose to a potential buyer the actual minimum sales price the seller will accept. See s.
452.133 (1) (d), Stats.
REEB 24.07(3)
(3)
Disclosure of information suggesting material adverse facts. A licensee, when engaging in real estate practice, who becomes aware of information suggesting the possibility of material adverse facts to the transaction, is practicing competently if the licensee discloses to the parties the information suggesting the possibility of material adverse facts to the transaction in writing and in a timely fashion, recommends the parties obtain expert assistance to inspect or investigate for possible material adverse facts to the transaction, and, if directed by the parties, drafts appropriate inspection or investigation contingencies. This provision is not limited to the condition of the property, but includes other material adverse facts to the transaction, including defects and conditions included within the report form under ss.
709.03 and
709.033, Stats. A licensee is not required to retain third party inspectors or investigators to perform investigations of information suggesting the possibility of a material adverse fact to the transaction.
REEB 24.07(4)
(4)
Disclosure of side agreements. A licensee, when engaging in real estate practice, who becomes aware of the fact that a party to the transaction has not disclosed that party's entire agreement regarding the transaction to that party's secured lender, shall disclose this fact, in writing and in a timely manner, to the party's secured lender.
REEB 24.07(5)
(5)
Reliance upon third party inspections and investigations. If a licensee or a party in a transaction engages the services of a qualified third party to conduct a property inspection or investigation of material facts, the licensee may rely on the results of the inspection or investigation providing the licensee obtains a written report of the inspection or investigation and delivers a copy of the report to all parties in a timely manner.
REEB 24.07(6)
(6)
Inconsistencies. If a licensee's reasonably competent and diligent inspection reveals facts materially inconsistent with or materially contradictory to the seller's statements provided under sub.
(1) (a), or the inspection or investigation report of a third party, the inconsistency shall be disclosed in writing and in a timely manner to the parties.
REEB 24.07(7)
(7)
False information. Licensees shall not knowingly give false information about another licensee or property listed with another licensee.
REEB 24.07(8)(a)1r.
1r. If a firm is negotiating on behalf of a party who is not the client of another firm and the negotiations are related to real estate primarily intended for use as a residential property containing one to 4 dwelling units, the firm shall request the party's signed acknowledgement that the party has received a copy of the written disclosure statement.
REEB 24.07(8)(a)2.
2. Licensees acting as agents of potential buyers of real estate that is used or intended to be used principally for one to 4 family residential purposes, who are negotiating directly with the seller or who are aware that the owner of the real estate has granted a listing
firm the exclusive right to sell, shall notify the seller or the listing firm, as applicable, of the licensee's buyer agency relationship at the earlier of all of the following:
REEB 24.07(8)(a)2.a.
a. The first contact with the seller or the listing firm where information regarding the seller or transaction is being exchanged.
REEB 24.07(8)(a)3.
3. When the nature of a licensee's representation of a client or customer changes such that it makes the initial disclosure that was provided under s.
452.135, Stats., incomplete, misleading, or inaccurate, the licensee shall provide the customer or client with a new disclosure, as required in s.
452.135, Stats.
REEB 24.07(8)(b)1.1. Firms and the licensees associated with the firm shall explain to their clients the responsibilities of listing agents, buyer's agents, and subagents before entering into an agency agreement.
REEB 24.07(8)(b)2.
2. No firm or licensees associated with the firm may permit other firms to act as subagents in a transaction unless the firm's client has authorized the use of a subagent in the agency agreement.
REEB 24.07(8)(c)
(c)
Written proposals. Licensees shall state, in the offer to purchase, the lease, the option to purchase, or the exchange agreement, whom the licensee represents as an agent in a transaction.
REEB 24.07(8)(d)1.1. A listing firm shall provide a disclosure statement to a customer as required in s.
452.135 (1), Stats., to the buyer if negotiations are being conducted directly with the buyer and not through a buyer's firm. This requirement may be waived if the buyer's firm has an exclusive right to locate buyer agency agreement that includes a provision removing the exclusive right to negotiate.
REEB 24.07(8)(d)2.
2. A buyer's firm shall provide a disclosure statement to a customer as required in s.
452.135 (1), Stats., to a seller if negotiations are being conducted directly with the seller and not through a seller's firm, unless the seller has waived the firm's duty to negotiate under s.
452.133(6), Stats.
REEB 24.07(8)(d)3.
3. A subagent shall provide a disclosure statement to a customer as required in s.
452.135 (1), Stats., with whom the subagent is working but not to the principal firm's client.
REEB 24.07(8)(d)4.
4. A principal firm is not required to provide a disclosure statement to a customer as required in s.
452.135 (1), Stats., to a customer of their subagents.
REEB 24.07(8)(e)
(e)
Agency agreements for lease and property management contracts. REEB 24.07(8)(e)1.1. A licensee who is entering into agency agreements for lease or property management contracts shall provide to the client the disclosure statement as required in s.
452.135 (2), Stats.
REEB 24.07(8)(e)2.
2. A licensee shall provide to prospective tenants a disclosure statement as required in s.
452.135 (1), Stats., when negotiating the terms of a lease on behalf of the client.
REEB 24.07 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; emerg. r. (2), eff. 10-14-80; cr. (3),
Register, December, 1980, No. 300, eff. 1-1-81; r. (2),
Register, March, 1981, No. 303, eff. 4-1-81; renum. from REB 15.07,
Register, February, 1983, No. 326, eff. 3-1-83; cr. (2),
Register, January, 1987, No. 373, eff. 2-1-87; am. (1), r. and recr. (2), cr. (4),
Register, June, 1988, No. 390, eff. 7-1-88; am. (1), cr. (1) (a) to (c) and (4) (d), r. and recr. (2),
Register, September, 1990, No. 417, eff. 10-1-90; r. and recr. (1), renum. (2), (3), (4) to be (5), (6), (7), cr. (2), (3), (4),
Register, July, 1993, No. 451, eff. 8-1-93; am. (1) (a), (d), (2), (3), (5), renum. (1) (a), (b) to be (1) (b), (c) and am., (6) to be (7), r. (1) (c), (7), r. and recr. (4), cr. (6), (8),
Register, April, 1995, No. 472, eff. 5-1-95; am. (8) (a) 2. (intro.), a. and c.,
Register, January, 2001, No. 541, eff. 2-1-01; CR-136: r. and recr. (8) (a) 1., cr. (8) (a) 1g., 1r., am. (8) (a) 2. (intro.), 3., r. (8) (a) 4., am. (8) (b) (title), 1., 2., (c), r. and recr. (8) (d), (e)
Register April 2012 No. 676, eff. 7-1-12;
EmR1620: emerg. am. (1) (b) (title), (c), (3), (8) (a) 1. to 1r., 2. (intro.), a., c., (b), (d), (e), eff. 7-1-16;
CR 16-042: am. (1) (b) (title), (c), (3), (8) (a) 1. to 1r., 2. (intro.), a., c., (b), (d), (e)
Register February 2017 No. 734, eff. 3-1-17;
CR 21-043: am. (1) (a), (c), (3), (5), r. and recr. (8) (a) 1., r. (8) (a) 1g., am. (8) (a) 1r., (d) (title), 1. to 3., (e) 1. Register March 2022 No. 795, eff. 4-1-22; correction in (3) made under s. 13.92 (4) (b) 7., Stats., Register March 2022 No. 795. REEB 24.075
REEB 24.075 Tie-in arrangements. Licensees shall not:
REEB 24.075(1)
(1) Condition the sale of real estate owned by the licensee or whose sale is effectively controlled by the licensee to a buyer upon the buyer's agreement to purchase another parcel or real estate.
REEB 24.075(2)
(2) Condition the sale of real estate owned by the licensee or whose sale is effectively controlled by the licensee upon the buyer's agreement to list the real estate or other real estate owned by the buyer with the licensee.
REEB 24.075 Note
Note: The following are 2 common examples of activities which would violate this subsection: (1) requiring a builder to list a speculation home with the licensee; and (2) requiring a buyer to list a present home with the licensee.
REEB 24.075(3)
(3) Condition the sale of vacant real estate owned by the licensee or whose sale is effectively controlled by the licensee upon the buyer's agreement to employ one or more specific builders to make improvements on the real estate unless:
REEB 24.075(3)(b)
(b) The builder and the licensee or the builder and the owner of the real estate are the same person or are commonly controlled corporations and whose business is selling improved property and not vacant land; and there is full disclosure as specified in s.
452.133 (3) (c), Stats.
REEB 24.075(3)(c)
(c) The agreement is a bona fide effort to maintain development quality or architectural uniformity and no consideration passes from a builder to a licensee for soliciting this agreement.
REEB 24.075 History
History: Cr.
Register, December, 1980, No. 300, eff. 1-1-81; renum. from REB 15.075 and am. (3) (a) and (b),
Register, February, 1983, No. 326, eff. 3-1-83; correction in (3) (a), (b) made under s.
13.92 (4) (b) 7., Stats.,
Register November 2011 No. 671; correction in (3) (a), (b) made under s.
13.92 (4) (b) 7. Stats.,
Register April 2012 No. 676;
CR 21-043: am. (3) (a) to (c) Register March 2022 No. 795, eff. 4-1-22. REEB 24.08
REEB 24.08
Agreements to be in writing. A licensee shall put in writing all listing contracts, guaranteed sales agreements, buyer agency agreements, offers to purchase, property management agreements, options, financial obligations and any other written proposals regarding transactions, expressing the exact agreement of the parties. This section does not apply if the writing is completed by the parties or their attorneys or the writing is outside the scope of the licensee's authority under ch.
REEB 16.
REEB 24.08 History
History:
Cr.
Register, February, 1980, No. 290, eff. 3-1-80; renum. from REB 15.08,
Register, February, 1983, No. 326, eff. 3-1-83; am.
Register, January, 1987, No. 373, eff. 2-1-87; am.
Register, June, 1988, No. 390, eff. 7-1-88; am. 24.08,
Register, July, 1993, No. 451, eff. 8-1-93; correction made under s.
13.92 (4) (b) 7., Stats.,
Register November 2011 No. 671;
CR 21-043: am. Register March 2022 No. 795, eff. 4-1-22. REEB 24.085
REEB 24.085 False portrayal of interest, prohibited. No licensee shall draft or use any document that the licensee knows falsely portrays an interest in real estate.
REEB 24.085 History
History: Cr.
Register, December, 1980, No. 300, eff. 1-1-81; renum. from REB 15.085,
Register, February, 1983, No. 326, eff. 3-1-83;
CR 21-043: am. Register March 2022 No. 795, eff. 4-1-22. REEB 24.09
REEB 24.09
Securing agency agreements. A licensee may not mislead a potential client regarding the benefits that might be realized by using the licensee's services. A licensee also may not mislead a potential client regarding the market value of real estate or a business opportunity to be leased, rented, purchased, optioned, or sold under an agency agreement.
REEB 24.09 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; renum. from REB 15.09,
Register, February, 1983, No. 326, eff. 3-1-83; r. and recr.
Register, April, 1995, No. 472, eff. 5-1-95;
CR 10-136: am.
Register April 2012 No. 676, eff. 7-1-12;
CR 21-043: am. Register March 2022 No. 795, eff. 4-1-22.
REEB 24.10
REEB 24.10
Net listing prohibited. Licensees shall not obtain, negotiate or attempt to obtain or negotiate any listing contract providing for a stipulated net price to the owner with the excess over the stipulated net price to be received by the firm as commission.
REEB 24.10 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; renum. from REB 15.10,
Register, February, 1983, No. 326, eff. 3-1-83;
EmR1620: emerg. am., eff. 7-1-16;
CR 16-042: am.
Register February 2017 No. 734, eff. 3-1-17.
REEB 24.12(1)(1)
Except as provided in sub.
(2), a licensee acting as a principal or an agent in a real estate or business opportunity transaction shall not disclose any of the terms of one prospective buyer's offer to purchase, exchange agreement, or option to any other prospective buyer or to any person with the intent that this information be disclosed to any other prospective buyer. Licensees shall encourage all prospective buyers to submit their best offers. A licensee may, but is not required to, disclose information known by the licensee regarding the existence of other offers on the property, that a seller has accepted an offer, that the offer is subject to contingencies, and that the offer is subject to a clause requiring removal of certain contingencies upon the occurrence of an event such as receipt, acceptance, or conditional acceptance of another offer.
REEB 24.12(2)
(2) If a licensee is providing brokerage services in a transaction and the licensee has knowledge that the property is subject to a right of first refusal, the licensee shall disclose the right of first refusal, in writing and in a timely manner, to all persons seeking to acquire an interest subject to the right of first refusal. After disclosure of the right of first refusal to a party seeking to acquire an interest in the property, the licensee may deliver a copy of that party's offer to purchase, exchange agreement, option, or lease to the party holding the right of first refusal.
REEB 24.12 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; am.
Register, March, 1981, No. 303, eff. 4-1-81; renum. from REB 15.12,
Register, February, 1983, No. 326, eff. 3-1-83; am.
Register, July, 1993, No. 451, eff. 8-1-93; renum. RL 24.12 to be (1), cr. (2),
Register, January, 2001, No. 541, eff. 2-1-01;
CR 21-043: am. Register March 2022 No. 795, eff. 4-1-22. REEB 24.13
REEB 24.13
Drafting and submission of written proposals. REEB 24.13(1)(1)
Refusal prohibited. Licensees shall not refuse to draft or submit any written proposal unless the terms of the written proposal would be contrary to specific written instructions of the other party.
REEB 24.13(2)
(2)
Access to property for showings. Listing firms shall permit access to listed property for showing purposes, to all buyers and persons assisting or advising buyers, without unreasonable delay, unless the buyer's or other person's access is contrary to specific written instructions of the seller.
REEB 24.13(3)(a)
(a) Licensees shall present all written proposals in an objective and unbiased manner to their clients and customers. Licensees shall inform their clients and customers of the advantages and disadvantages of all submitted written proposals.
REEB 24.13(3)(b)
(b) If a firm has a property listed, no licensee associated with the listing firm, including a licensed individual broker acting as a sole proprietor and licensed broker business entity, or listing firm, may submit a personal written proposal or offer to purchase a property, if the licensee has knowledge of the terms of any pending offer, except that a firm may arrange for a guaranteed sale at the time of listing.
REEB 24.13(3)(c)
(c) A licensee shall promptly present all written proposals received to the licensee's client or customer unless the presentation would be contrary to specific written instructions from the licensee's client or customer. A licensee shall not withhold any written proposal from presentation pending the party's action on a written proposal previously presented unless the presentation would be contrary to specific written instructions from the licensee's client or customer.
REEB 24.13(4)
(4)
Notification of action on written proposal. Licensees shall promptly inform their clients and customers whether the other party has accepted, rejected, or countered their written proposal. A licensee shall immediately provide a written statement to the other party's firm that includes the date and time when the written proposal was presented when such a statement is requested by the other party or the other party's firm. A licensee shall immediately provide a written statement to the other party's firm that includes the date and time when the written proposal was rejected or had expired without acceptance when such a statement is requested by the other party or the other party's firm.
REEB 24.13(5)
(5)
Negotiation through firm. A licensee may not negotiate a sale or lease of real estate directly with a party if the licensee knows that the party has an unexpired written contract in connection with the real estate that grants to another licensee an exclusive right to sell, lease, or negotiate. All negotiations shall be conducted with the firm holding the exclusive right to sell, lease, or negotiate, and not with the party, except with the consent of the firm or where the absence of the firm, or other similar circumstances, reasonably compels direct negotiation with the party. A listing firm has no duty to investigate whether a buyer has granted a buyer's agent an exclusive right to negotiate.
REEB 24.13 Note
Note: The Department of Safety and Professional Services' approved form, WB-36, does not grant the buyer's agent an exclusive right to negotiate.
REEB 24.13 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; cr. (5),
Register, March, 1981, No. 303, eff. 4-1-81; renum. from REB 15.13,
Register, February, 1983, No. 326, eff. 3-1-83; renum. (3) to be (3) (a), cr. (3) (b), am. (4),
Register, January, 1987, No. 373, eff. 2-1-87; am. (3) (a),
Register, June, 1988, No. 390, eff. 7-1-88; am. (3) (b), r. and recr. (2),
Register, July, 1993, No. 451, eff. 8-1-93; am. (3) (b) and (5),
Register, January, 2001, No. 541, eff. 2-1-01;
CR 10-136: am. (title), (1), (2) (title), (b), (3) (title), (a), (4), (5)
Register April 2012 No. 676, eff. 7-1-12;
EmR1620: emerg. am. (2) (a), (3) (b), (4), (5), eff. 7-1-16;
CR 16-042: am. (2) (a), (3) (b), (4), (5)
Register February 2017 No. 734, eff. 3-1-17;
CR 21-043: am. (1), (2) (title), renum. (2) (a) to (2), r. (2) (b), am. (3) (b), cr. (3) (c), am. (5) Register March 2022 No. 795, eff. 4-1-22. REEB 24.15
REEB 24.15
Adequate funds required. Licensees may not issue checks upon business or trust accounts that contain insufficient funds.
REEB 24.15 History
History: Cr.
Register, February, 1980, No. 290, eff. 3-1-80; renum. from REB 15.15,
Register, February, 1983, No. 326, eff. 3-1-83;
CR 21-043: am. Register March 2022 No. 795, eff. 4-1-22. REEB 24.17(1)(1)
Violations of law. Licensees may not violate, or aid or abet the violation of, any law the circumstances of which substantially relate to the practices of a real estate licensee. A licensee, who has been convicted of a crime, shall send to the board, within 48 hours after the judgment of conviction, a copy of the complaint or other information that describes the nature of the crime and the judgment of conviction in order that the board determine whether the circumstances of the crime of which the licensee was convicted are substantially related to the practice of a real estate licensee, pursuant to s.
111.335 (3) (a), Stats.
REEB 24.17(2)
(2)
Conviction. The board may discipline a licensee on the basis of a conviction of any crime, the circumstances of which substantially relate to the practice of real estate. A certified copy of a judgment of a court of record showing such conviction, within this state or without, shall be presumptive evidence of conviction.
REEB 24.17(2m)
(2m)
Felony conviction. The board may revoke a license based on a conviction of a felony that is a bar to licensure under s.
452.25 (1) (a), Stats.
REEB 24.17(3)
(3)
Violation of statutes, administrative code and board orders. Licensees may not violate any provisions or terms or conditions of, or aid or abet the violation of ch.
452, Stats., chs.
REEB 11 to
25 or any order of, the board.
