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.
Section 15. Chapter REEB 17 (title) is repealed and recreated to read:
LICENSEES ASSOCIATED WITH A FIRM
Section 16. REEB 17.02 and 17.025 are repealed.
Section 17. REEB 17.03 (title) is amended to read:
REEB 17.03 Limitations on employees of a broker licensees associated with a firm.
Section 18. REEB 17.03 (1) is repealed.
Section 19. REEB 17.03 (2) is amended to read:
REEB 17.03 (2) A licensee who is employed by a broker-employer associated with a firm may personally employ or engage as an independent contractor licensed persons only as unlicensed personal assistants within the meaning of s. REEB 17.02 (5) 452.34(1), Stats., subject to the provisions in s. REEB 17.12 452.34, Stats. Section 20. REEB 17.03 (3) is repealed and recreated to read:
REEB 17.03 (3) A broker shall be associated with only one firm unless the broker is engaging in independent practice under s. 452.30 (6) (a) or acting as business representative for a licensed business entity under s. 452.12 (2) (a). Section 21. REEB 17.03 (4) is amended to read:
REEB 17.03 (4) A salesperson or time-share salesperson may engage in real estate practice only when employed by a broker associated with a firm.
Section 22. REEB 17.04, 17.05, 17.06, 17.07, 17.08, and 17.12 are repealed.
Section 23. REEB 18.02 (2) is repealed.
Section 24. REEB 18.02 (6) (intro) and (g) are amended to read:
REEB 18.02 (6) (intro) “Real estate trust funds” means any cash, checks, share drafts, drafts, or notes received by a broker or a broker’s salesperson or time-share salespersons firm or licensee on behalf of a principal or any other person including any of the following:
(g) Initial and additional earnest money downpayments and other funds received in connection with offers to purchase, options, and exchanges, even if the broker, or salesperson, or time-share salesperson receives the downpayments or funds when negotiating the sale of real estate or a business opportunity which the broker, or salesperson, or time-share salesperson owns in whole or in part, or when negotiating the purchase of real estate or a business opportunity for ownership in whole or in part by the broker, or salesperson, or time-share salesperson.
Section 25. REEB 18.031 (1) (intro) and (a), (2), (3) and (5) (b) are amended to read:
REEB 18.031 (1) (intro) Time of deposit. A broker firm shall deposit all real estate trust funds received by the broker or broker’s salespersons or time-share salespersons firm or licensees associated with the firm in a real estate trust account within 48 hours of receipt of the trust funds. If funds are received on a day prior to a holiday or other day when the depository institution is closed, the broker firm shall deposit the funds within the next 2 business days. If a broker firm receives funds which cannot be deposited by the broker firm, the broker firm shall, no later than one business day after receipt, either:
(a) Forward the funds to the payee, if someone other than the broker firm.
(2) Duty of salesperson licensees. A salesperson or time-share salesperson licensee who receives real estate trust funds shall promptly submit the funds to the employer-broker firm of the salesperson or time-share salesperson licensee.
(3) Interest-bearing accounts.
(a) Client funds shall be deposited in an interest-bearing common trust account and the department of administration shall be the beneficial owner of the interest accruing to the account, minus any service charges. At no time may the broker firm remove or use the interest earned on such accounts.
(b) Real estate trust funds, other than client funds, may be deposited in an interest-bearing account if the broker firm obtains from the persons for whom the funds are being held written authorization to deposit the funds in an interest-bearing account and if the authorization specifies how and to whom the interest will be disbursed. None of the interest earned on the funds deposited into an interest-bearing account may inure to the benefit of the broker firm.
(5) (b) A broker firm may directly deposit into an owner’s account rental application deposits, rents and security deposits which may have been made payable to one or more owners. The broker firm or licensee associated with the firm may be designated as a signatory on the owner’s account and may make disbursements from that account to the extent authorized by the owner in writing.
Section 26. REEB 18.032, 18.033, 18.034, 18.035, 18.036 and 18.037 are amended to read:
REEB 18.032 Number of real estate trust accounts. A broker firm may maintain more than one real estate trust account, including more than one interest-bearing common trust account for client funds, if the broker firm notifies the department of these accounts, as required in s. REEB 18.035. REEB 18.033 Opening and closing real estate trust accounts. (1) Opening an account. A broker firm shall open a real estate trust account if the broker firm receives real estate trust funds.
(2) Closing an account. A broker firm may close a real estate trust account if no real estate trust funds remain in the account or for reasons specified in s. REEB 18.035. REEB 18.034 Account designation. (1) Name on trust account. A broker firm shall name the broker firm’s real estate trust account with the name appearing on the broker’s license or with a trade name submitted to the department under s. REEB 23.03 and shall include the words “trust account” in the name of the account. (2) Name on checks. A broker firm shall imprint the name of the real estate trust account on real estate trust account checks, share drafts or drafts.
REEB 18.035 Duty to notify the department. (1) Opening an account. No later than 10 days after opening any real estate trust account a broker firm shall provide the department with the name and number of the account, with the name of the depository institution in which the broker firm holds the account and with information concerning whether the account is for client funds or for real estate trust funds other than client funds. The information shall be provided on a form, as required in s. REEB 18.037. (2) Changing or closing an account. A broker firm shall notify the department no later than 10 days after a broker firm changes a real estate trust account name or number, changes the real estate trust account from one depository institution to another, closes a real estate trust account or changes a real estate trust account to or from an interest-bearing common trust account established for client’s funds. The notification shall be provided on a form, as required in s. REEB 18.037. When closing a real estate trust account, a broker firm may inform the board by letter. REEB 18.036 Authorization to examine real estate trust accounts and records.
(1) Broker’s Firm’s authorization. No later than 10 days after opening a real estate trust account a broker firm shall furnish the department authorization for the department to examine and audit all of the broker’s firm’s real estate trust account records and authorization for the department of administration to examine all of the broker’s firm’s interest-bearing common trust accounts maintained for client funds. The authorization shall be provided on a form, as required in s. REEB 18.037.
