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An order of the Real Estate Examining Board to repeal REEB 15.03, 17.02, 17.025, 17.03 (1), 17.04 to 17.12, 18.02 (2) and 24.02 (2); to renumber REEB 11.02 (1); to renumber and amend REEB 15.04, and 24.02 (6) and (9); to amend REEB 11.02 (2), (3) and (6), 12.011 (1), ch. REED 15 (title), REEB 15.02 (1), (2) (intro.) and (3), 16.02 (1m), and (2e) to (5), 16.03 (1) (intro.), (d) and (e), 16.04 (2), 16.06 (1) (c), (4) (a) and (8), 17.03 (title), (2) and (4), 18.02 (6) (intro.) and (g), 18.031 (1) (intro.) and (a), (2), (3) and (5) (b), 18.032 to 18.07, 18.09 (1) (intro.), (2) and (3), 18.10, 18.11, 18.13 (intro.), (1) (intro.), (2) to (5) and (6) (intro.) and (e), 18.14, 23.03, 23.04, 24.01 (3), 24.02 (3), (5), and (13m), 24.04 (2) (a) and (b), (3) and (4), 24.05 (1) (a), (2), (4) and (5) (a) 3., 24.07 (1) (b) (title), (c), (3), (8) (a) 1. to 1r. and 2. (intro.), a. and c. and (b), (d) and (e), 24.10, 24.13 (2) (a), (3) (b), (4) and (5), 24.16 and 24.17 (1); to repeal and recreate ch. REEB 17 (title) and REEB 17.03 (3); and to create REEB 11.02 (1d), (1h), (1p), (5g) and (6m), 12.011 (1) (am) and (1m), 15.02 (4) and 15.04 (2), relating to real estate practice.
Analysis prepared by the Department of Safety and Professional Services.
Statutes interpreted: Chapter 452, Stats.
Statutory authority: ss. 15.08(5) (b) and 452.07, Stats.
Explanation of agency authority:
Each examining board shall promulgate rules for its own guidance and for the guidance of the profession to which it pertains, and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or profession. [s. 15.08 (5) (b), Stats.]
The board shall promulgate rules for the guidance of the real estate profession and define professional conduct and unethical practice.
The board may promulgate rules regarding the supervisory responsibilities of brokers under s. 452.132, Stats.
The board may promulgate rules establishing a procedure that allows an individual who does not possess a broker’s or salesperson’s license to, without submitting a full application and without paying the fees applicable to applicants, apply to the board for a determination of whether the individual would be disqualified from obtaining a license due to his or her criminal record…The board may require a fee to be paid to the department for a determination issued under this subsection of an amount necessary to cover the cost of making the determination. [s. 452.07, Stats.]
Related statute or rule: N/A
Plain language analysis:
This rule updates the real estate code chapters to reflect current real estate practice as provided in 2015 Act 258 including: terminology, provisions relating to independent contractor relationship, duties of licensees, supervision of licensees, use of unlicensed personal assistants, business representations, inactive license references, fees for predeterminations on criminal records, electronic records retention, use of forms and elimination of timeshare credential references.
Sections 1 to 7 create definitions for three new terms defined in statute: “associated with a firm”, “associated with a subagent”, and firm” by referring to the same definition as the statute. These sections also create definitions for “agency agreement” referring to the statutory definition, client and customer. The sections create a definition for “member of the licensee’s immediate family” which clarifies a previous definition for “immediate family”. Lastly the sections update to current drafting language, specifically remove “under” and replace with “given in”.
Sections 8 and 9 remove the reference to timeshare salespersons due to Act 258 removing the requirement for credentialing of timeshare salespersons. These sections also create a $68.00 fee for the binding determination as to whether the individual’s criminal record would disqualify the individual from obtaining a license prior to the individual submitting an application for the license. This provision allows an applicant who receives a favorable determination to credit the amount toward the application fee if the person applies within 1 year of the determination. Act 258 permits the Real Estate Examining Board (Board) to charge a fee for the cost of making this determination.
Sections 10, 18, 20, 29, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40, 42, 43, 45, and 46 update terminology.
Section 11 clarifies any documents prepared or received by the licensee in addition to utilized shall be promptly provided to any person who signed the document. The section also includes rental agreements and clarifies the lease or rental agreement shall be provided upon execution of the lease or rental agreement.
Sections 12 clarifies a broker or salesperson shall promptly distribute a copy of an agency agreement that has been accepted and signed by all parties to the client when the client signs an agency agreement.
Section 13 repeals the obsolete provision relating to closing statements. Closing statements are no longer prepared by the broker.
Section 14 updates terminology and clarifies the record retention period in transactions without a date of closing or consummation begins from the date the listing contract or agency agreement is terminated. In addition, this section clarifies electronic or digital record retention may be utilized.
Section 15 creates a provision requiring brokers and salespersons to submit documents to the firm in a timely manner so that the firm can be in compliance with the record retention requirements.
Sections 16 and 19 update terminology and requires forms to be filled out based upon a party’s instruction rather than a party’s intent.
Section 17 updates terminology and adds quasi-governmental and tribal agencies to the form exception in order to provide clarification to the profession.
Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.