STATE OF WISCONSIN
REAL ESTATE EXAMINING BOARD
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IN THE MATTER OF RULEMAKING : ORDER OF THE
PROCEEDINGS BEFORE THE : REAL ESTATE EXAMINING BOARD
REAL ESTATE EXAMINING BOARD : ADOPTING EMERGENCY RULES
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The statement of scope for this rule, SS 016-15, was approved by the Governor on February 5, 2015, published in Register 710A3 on February 16, 2015, and approved by Real Estate Examining Board on February 26, 2015. ORDER
An order of the Real Estate Examining Board to create ch. REEB 13 relating to cooperative broker agreements. Analysis prepared by the Department of Safety and Professional Services.
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FINDING OF EMERGENCY
The Real Estate Examining Board finds that an emergency exists and that this rule is necessary for the immediate preservation of the public peace, health, safety, or welfare. A statement of facts constituting the emergency is:
2013 Wisconsin Act 259 creating s. 452.137 relating to cooperation with out-of-state brokers and salesperson, as well as the rule-making authority, became effective on January 1, 2015. Without the rules in place addressing the cooperative agreement form and terms, there will be confusion for brokers, both in-state and out-of-state, as to what needs to be contained in such an agreement. ---------------------------------------------------------------------------------------------------------------------
ANALYSIS
Statutes interpreted: s. 452.137, 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 of profession.
The board shall, by rule, establish the form and terms of the cooperative agreement.
Related statute or rule: None
Plain language analysis:
This rule requires the cooperative agreement between the licensed real estate broker and the out-of-state broker be in writing utilizing a board approved form. The terms must include the terms of cooperation and out-of-state broker’s compensation as well as provide that all client funds in connection with the transaction shall be deposited in a trust account maintained by the Wisconsin licensed broker.
Summary of, and comparison with, existing or proposed federal regulation: None
Comparison with rules in adjacent states:
Illinois: Illinois does not have rules relating to out-of-state cooperative broker agreements.
Iowa: Iowa does not have rules relating to out-of-state broker cooperative agreements.
Michigan: Michigan does not have rules relating to out-of-state broker cooperative agreements.
Minnesota: Minnesota does not have rules relating to out-of-state broker cooperative agreements.
Summary of factual data and analytical methodologies:
The Board considered the format and process of other forms utilized by the real estate profession as well as inclusion of the statutory term requirements.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
