EmR1620 Rule Text

Effect on small business:

These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at [e-mail], or by calling [phone]

Agency contact person:

Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708; telephone [phone]; email at [e-mail].

Place where comments are to be submitted and deadline for submission:

Comments may be submitted to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8366, or by email to [e-mail]. Comments must be received on or before August 18, 2016 to be included in the record of rule-making proceedings.

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TEXT OF RULE

Section 1. REEB 11.02 (1) is renumbered to 11.02 (1t)

Section 2. REEB 11.02 (1d), (1h), (1p), (5g) and (6m) are created to read:

REEB 11.02 (1d) “Agency agreement” has the meaning under s. 452.01 (1m), Stats.

(1h) “Associated with a firm” has the meaning under s. 452.01 (1o), Stats.

(1p) “Associated with a subagent” has the meaning under s. 452.01 (1p), Stats.

(5g) “Firm” has the meaning under s. 452.01 (4w), Stats.

(6m) “Member of the licensee’s immediate family” means any of the following:

    (a) A parent, stepparent, grandparent, foster parent, child, stepchild, grandchild, foster child, brother, sister, aunt, uncle of the licensee.

  (b) The spouse or domestic partner of the licensee or any person listed in par. (a).

 

Section 3. REEB 12.011 (1) is amended to read:

(1) An individual who does not possess a broker’s or salesperson’s license or a time-share salesperson’s certificate may apply to the board, without submitting a full application and payment of application fee, for a determination of whether the individual would be disqualified from obtaining a license or certificate based upon a criminal conviction by submitting all of the following:.

Section 4. REEB 12.011 (1) (am) is created to read:

REEB 12.011 (1) (am) A fee in the amount of $68.00. The fee may be applied to the application fee under s. REEB 12.01 (4) if the individual applies for a real estate broker or salesperson license within 1 year of the determination decision.

Section 5. Chapter REEB 15 (title) is amended to read:

CHAPTER REEB 15

BROKER’S OBLIGATION TO FURNISH COPIES AND MAINTAIN RECORDS

Section 6. REEB 15.02 (1) and (3) are amended to read:

REEB 15.02 Copies of documents (1) A broker or salesperson shall promptly provide an exact and complete copy of any document utilized, prepared or received by the licensee in real estate practice to any person who has signed the document.

(3) A broker or salesperson shall promptly distribute an exact and complete copy of a lease or rental agreement which has been accepted and signed by all parties to the tenant upon execution of the lease or rental agreement when the tenant leases the property and to the landlord upon the landlord’s request.

Section 7. REEB 15.02 (4) is created to read:

REEB 15.02 (4) A broker or salesperson shall promptly distribute an exact and complete copy of a listing contract or agency agreement that has been accepted and signed by all parties to the client when the client signs an agency agreement.

Section 8. REEB 15.03 is repealed.

Section 9. REEB 15.04 is renumbered 15.04(1) and amended to read:

REEB 15.04 Retention of records.

(1) A broker firm shall retain for at least 3 2 years, unless required by federal law or there is an active or ongoing investigation by the Board, exact and complete copies of all listing contracts, agency agreements, offers to purchase, leases, closing statements, deposit receipts, cancelled checks, trust account records and other documents or correspondence received or prepared by the broker in connection with any transaction. The retention period shall run from the date of closing of the transaction or, if the transaction has not been consummated, from the date of the listing contract or the agency agreement is terminated. The broker shall make these These records shall be available for inspection and copying by the board. If the records are retained outside this state, the broker The firm shall, upon request of the board, promptly send exact and complete copies to the department without charge to the department or board. The Board may not require copies to be submitted beyond the retention period. Electronic or digital means may be used to retain records.

Section 10. REEB 15.04 (2) is created to read:

REEB 15.04 (2) A broker or salesperson shall submit in a timely manner documents and records to the firm related to transactions that are used or received by the broker or salesperson to assist in complying with sub. (1).

Section 11. REEB 16.02 (1m) (2e), (2m), (2s), (3), (3m), (4), (4m) and (5) are amended to read:

REEB 16.02 (1m) “Buyer agency/tenant representation agreement” means a written agency agreement authorizing a broker firm to provide brokerage services to the client for the procurement of an interest in property and providing the terms whereby the broker may earn a commission.

(2e) “Exclusive right to locate buyer agency/tenant representation agreement” means a written buyer agency/tenant representation agreement giving the broker firm the exclusive right to locate an interest in property for the client.

(2m) “Exclusive right to locate and negotiate buyer agency/tenant representation agreement” means a written buyer agency/tenant representation agreement giving the broker firm the exclusive right to locate an interest in property and to negotiate the procurement of an interest in property for the client.

(2s) “Exclusive right to negotiate buyer agency/tenant representation agreement” means a written buyer agency/tenant representation agreement giving the broker firm the exclusive right to negotiate the procurement of an interest in a property for the client.

(3) “Exclusive right to sell listing” means a written listing contract making a broker firm the exclusive agent for the sale of property for a specific period of time, and which entitles the listing broker to a commission if the property is sold by the owner, by the broker firm, or by anyone else.

(3m) “Listing contract” means a written agency agreement authorizing a broker firm to provide brokerage services to the client for the sale or rental of property and providing the terms whereby the broker may earn a commission.

(4) “Open listing” means a written listing agreement, which may be given to any number of brokers firms, with the first broker firm to secure a buyer under the terms of the listing agreement earning the commission.

(4m) “One-party listing” means a written listing contract containing all of the elements of an exclusive right to sell listing, except that listing broker firm is entitled to a commission only if the property is sold by the owner, by the broker firm, or by anyone else to a specific party or parties identified in the written listing contract.

(5) “Use a form” means to complete a contractual or conveyance form by filling in the blanks or modifying printed provisions on a form for the purpose of accomplishing the intent instruction of a party in a specific real estate transaction.

Section 12. REEB 16.03 (1) (intro.), (d) and (e) is amended to read:

REEB 16.03 (1) In addition to forms prepared and approved by the board pursuant to s. 452.05 (1) (b), Stats., the board approves the following forms for use by brokers licensees.

  (d) Forms prepared by governmental, quasi-governmental and tribal agencies for use in programs administered by them under authority provided by law.

  (e) Forms to be used for a property management agreement between a broker firm and a landlord, prepared by the broker entering into the agreement, an attorney, or the landlord, that contain provisions relating to leasing, managing, marketing, and overall management of the landlord’s property.

Section 13. REEB 16.04 (2) is amended to read:

REEB 16.04 (2) For those kinds of real estate or business opportunity transactions for which the board has not approved contractual forms a licensee, when acting as an agent or a party, may use contractual forms drafted by a party or an attorney, if the name of the drafter is imprinted on the form before use by a licensee. For the purpose of this subsection, a listing broker firm is a party to the listing contract transaction.

Section 14. REEB 16.06 (1) (c), (4) (a) and (8) are amended to read:

REEB 16.06 (1) (c) Shall indicate that the form is reproduced by the licensee’s firm, stating its address and telephone number at an appropriate place on the form.

(4) (a) The addendum has been prepared by the broker firm or an attorney who is identified on the addendum.

(8) A licensee shall use approved forms and prepare addenda in such a manner as to adequately accomplish the contractual intent instruction of the person for whom the licensee uses the forms and prepares the addenda.