Chapter REEB 25

REEB 25.023 REEB 25.023 Real estate broker’s pre-license business management program. An education program in business management for applicants for a real estate broker’s license shall consist of 72 hours. The education program in business management shall contain all of the following topics:

REEB 25.023(1) (1) Contracts. Instruction relating to real estate contracts shall include all of the following:

REEB 25.023(1)(a) (a) The definition of a contract, including the difference between a contract and an agreement.

REEB 25.023(1)(b) (b) Elements of a contract, including all of the following:

REEB 25.023(1)(b)1. 1. Offer.

REEB 25.023(1)(b)2. 2. Acceptance.

REEB 25.023(1)(b)3. 3. Consideration.

REEB 25.023(1)(b)4. 4. Competent parties.

REEB 25.023(1)(c) (c) Parties to a contract, including all of the following:

REEB 25.023(1)(c)1. 1. Parties to an agency agreement.

REEB 25.023(1)(c)2. 2. Parties to a sales contract, option, or lease.

REEB 25.023(1)(c)3. 3. Multiple parties.

REEB 25.023(1)(d) (d) Creating binding contracts, including all of the following:

REEB 25.023(1)(d)1. 1. Signatures.

REEB 25.023(1)(d)2. 2. Acceptance and binding acceptance.

REEB 25.023(1)(d)3. 3. Delivery.

REEB 25.023(1)(d)4. 4. Deadlines.

REEB 25.023(1)(d)5. 5. Time is of the essence.

REEB 25.023(1)(e) (e) Validity of contracts.

REEB 25.023(1)(f) (f) Drafting contracts and contingencies, including all of the following:

REEB 25.023(1)(f)1. 1. Properly drafting.

REEB 25.023(1)(f)2. 2. Pre-printed.

REEB 25.023(1)(f)3. 3. Customized.

REEB 25.023(1)(g) (g) Ending the contractual relationship, including all of the following:

REEB 25.023(1)(g)1. 1. Rescission.

REEB 25.023(1)(g)2. 2. Termination.

REEB 25.023(1)(g)3. 3. Modification.

REEB 25.023(1)(g)4. 4. Death of a party.

REEB 25.023(1)(g)5. 5. Default and breach.

REEB 25.023(1)(h) (h) Acceptance and counteroffers, including the difference between acceptance and counteroffers.

REEB 25.023(1)(i) (i) The law of conveyances, including all of the following:

REEB 25.023(1)(i)1. 1. Conveyance defined.

REEB 25.023(1)(i)2. 2. Requirements for a valid conveyance.

REEB 25.023(1)(j) (j) Agreement to arbitrate real estate transaction disputes under s. 788.015, Stats.

REEB 25.023(1)(k) (k) Commercial real estate commission lien under s. 779.32, Stats.

REEB 25.023(2) (2) Approved forms. Instruction relating to real estate approved forms shall include all of the following:

REEB 25.023(2)(a) (a) The forms approval process, including all of the following:

REEB 25.023(2)(a)1. 1. Forms committee.

REEB 25.023(2)(a)2. 2. Real estate examining board.

REEB 25.023(2)(a)3. 3. Department of safety and professional services.

REEB 25.023(2)(b) (b) The authorized practice of law, including all of the following:

REEB 25.023(2)(b)1. 1. Reynolds v. Dinger, 14 Wis. 2d 193.

REEB 25.023(2)(b)2. 2. Chapter REEB 16.

REEB 25.023(2)(c) (c) Review of forms, including all of the following:

REEB 25.023(2)(c)1. 1. Listing contracts for sale.

REEB 25.023(2)(c)2. 2. Offers.

REEB 25.023(2)(c)3. 3. Counter-offers.

REEB 25.023(2)(c)4. 4. Amendments.

REEB 25.023(2)(c)5. 5. Buyer agency agreements.

REEB 25.023(2)(c)6. 6. Listing contracts for lease.

REEB 25.023(2)(c)7. 7. Options.

REEB 25.023(2)(c)8. 8. Bills of sale.

REEB 25.023(2)(c)9. 9. Exchanges.

REEB 25.023(2)(c)10. 10. Cancellation agreement and mutual releases.

REEB 25.023(2)(c)11. 11. State bar forms under s. REEB 16.03 (1).

REEB 25.023(2)(c)12. 12. Uniform commercial code forms.

REEB 25.023(2)(c)13. 13. Forms used in other states.

REEB 25.023(2)(d) (d) Developing a form and contingency manual.

REEB 25.023(2)(e) (e) Supervising salesperson’s use of approved forms.

REEB 25.023(3) (3) Trust accounts, escrow, closing statement. Instruction relating to real estate trust accounts, escrow and closing statement shall include all of the following:

REEB 25.023(3)(a) (a) Trust accounts under ch. REEB 18, including all of the following:

REEB 25.023(3)(a)1. 1. Trust account definition.

REEB 25.023(3)(a)2. 2. Trust funds definition.

REEB 25.023(3)(a)3. 3. When is a trust account required.

REEB 25.023(3)(a)4. 4. Registering a trust account.

REEB 25.023(3)(a)5. 5. Procedure to open a trust account.

REEB 25.023(3)(a)6. 6. Authorization to sign trust account checks.

REEB 25.023(3)(a)7. 7. Depositing of trust funds.

REEB 25.023(3)(a)8. 8. Disbursement of trust funds.

REEB 25.023(3)(a)9. 9. Bookkeeping system.

REEB 25.023(3)(a)10. 10. Closing a trust account.

REEB 25.023(3)(b) (b) Escrow agreement procedures, including all of the following:

REEB 25.023(3)(b)1. 1. Escrows requiring separate escrow agreements.

REEB 25.023(3)(b)2. 2. Pre-closing earnest money escrows.

REEB 25.023(3)(b)3. 3. Post closing escrows.

REEB 25.023(3)(b)4. 4. Escrows not requiring separate escrow agreements.

REEB 25.023(3)(b)5. 5. Drafting escrow agreements.

REEB 25.023(3)(c) (c) Closing procedures, including all of the following:

REEB 25.023(3)(c)1. 1. Licensees are not required by license law to perform closings.

REEB 25.023(3)(c)2. 2. Choosing a closing statement.

REEB 25.023(3)(c)3. 3. Closing preparation procedures.

REEB 25.023(3)(c)4. 4. Setting a closing date.

REEB 25.023(3)(c)5. 5. Preparing closing documentation.

REEB 25.023(3)(c)6. 6. Closing procedures.

REEB 25.023(3)(c)7. 7. Post closing procedures.

REEB 25.023(4) (4) Broker management and marketing. Instruction relating to real estate broker management and marketing shall include all of the following:

REEB 25.023(4)(a) (a) The legal environment, including all of the following:

REEB 25.023(4)(a)1. 1. Requirements for licensure.

REEB 25.023(4)(a)2. 2. Liability concerns and risk reduction.