1g. A broker firm may not negotiate on behalf of a client unless the broker firm gives the client a copy of the broker disclosure required under s. 452.135 (2), Stats. 1r. If a client enters into an agency agreement with a broker 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 broker disclosure to clients is not incorporated into the agency agreement, the broker firm shall request the client’s signed acknowledgement that the client has received a copy of the written disclosure statement required in s. 452.135 (2), Stats. 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 broker firm the exclusive right to sell, shall notify the seller or the listing broker firm, as applicable, of the licensee’s buyer agency relationship at the earlier of all of the following:
a. The first contact with the seller or the listing broker firm where information regarding the seller or transaction is being exchanged.
c. Any other negotiation with the seller or the listing broker firm.
(b) Agency agreements. 1. Brokers or their salespeople Firms and the licensees associated with the firm shall explain to their clients the responsibilities of seller’s listing agents, buyer’s agents, and subagents before entering into an agency agreement.
2. No broker or broker’s salesperson firm or licensees associated with the firm may permit other brokers firms to act as subagents in a transaction unless the broker’s firm’s client has authorized the use of a subagent in the agency agreement.
(d) Subagency arrangements. 1. A listing broker firm shall provide a broker 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 broker firm. 2. A buyer’s broker firm shall provide a broker 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 broker firm. 3. A subagent shall provide a broker disclosure statement to a customer as required in s. 452.135 (1), Stats., with whom he or she is working but not to the principal broker’s firm’s client. 4. A principal broker firm is not required to provide a broker disclosure statement to a customer as required in s. 452.135 (1), Stats., to a customer of their subagents. (e) Agency agreements for lease and property management contracts. 1. A licensee who is entering into agency agreements for lease or property management contracts shall provide to his or her clients the broker disclosure statement as required in s. 452.135 (2), Stats. 2. A licensee shall provide to prospective tenants a broker disclosure statement as required in s. 452.135 (1), Stats., when negotiating the terms of a lease on behalf of the client. Section 39. REEB 24.10 is amended to read:
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 broker firm as commission.
Section 40. REEB 24.13 (2) (a), (3) (b), (4) and (5) are amended to read:
REEB 24.13 (2) (a) Listing brokers 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.
(3) (b) A listing individual licensed broker acting as a sole proprieter or the listing broker’s employee licensee associated with a listing firm may not submit his or her own personal written proposal or offer to purchase a property which the broker firm has listed if the broker or broker’s employee licensee has knowledge of the terms of any pending offer, except that a broker firm may arrange for a guaranteed sale at the time of listing.
(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 broker 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 broker firm. A licensee shall immediately provide a written statement to the other party’s broker 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 broker firm.
(5) Negotiation through broker 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 which grants to another licensee an exclusive right to sell, lease, or negotiate. All negotiations shall be conducted with the broker firm holding the exclusive right to sell, lease, or negotiate, and not with the party, except with the consent of the broker firm or where the absence of the broker firm, or other similar circumstances, reasonably compels direct negotiation with the party. A listing broker firm has no duty to investigate whether a buyer has granted a buyer’s agent an exclusive right to negotiate.
Section 41. REEB 24.16 is amended to read:
REEB 24.16 Availability of rules. Brokers Firms shall have the rules of the department readily available in all offices for the use of all licensees.
Section 42. REEB 24.17 (1) is amended to read:
REEB 24.17 (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 broker or salesperson 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 which describes the nature of the crime and the judgment of conviction in order that the board may determine whether the circumstances of the crime of which the licensee was convicted are substantially related to the practice of a real estate broker or salesperson licensee, pursuant to s. 111.335 (1) (c), Stats. Section 43. This emergency rule shall take effect on July 1, 2016.
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(END OF TEXT OF RULE)
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Dated __June 9, 2016____ Agency _____/s/ Stephen Beers_______________
Member of the Board
REAL ESTATE EXAMINING BOARD
