Any credit union which negotiates loans secured by real estate mortgages or any licensee under ch. 138
which negotiates loans secured by real estate mortgages or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan, secured or to be secured by mortgage or other transfer of or encumbrance on real estate.
A person licensed as a mortgage banker under s. 224.72
who does not engage in activities described under sub. (2)
Attorneys licensed to practice in this state while acting within the scope of their attorney's license.
“Brokerage service" means any service described under sub. (2)
provided to a person by a firm and any licensees associated with the firm.
“Business entity" means any organization or enterprise, other than a sole proprietorship, which is operated for profit or that is nonprofit and nongovernmental, including an association, business trust, corporation, joint venture, limited liability company, limited liability partnership, partnership or syndicate.
“Business representative" means a director, manager, member, officer, owner or partner of a business entity.
“Client" means a party to a transaction who has an agency agreement with a firm for brokerage services.
“Crime" does not include a crime for which the individual has been pardoned; a crime for which the conviction has been reversed, set aside, or vacated; or a crime for which the conviction has been expunged under s. 973.015
“Customer" means a party to a transaction who is provided brokerage services by a firm and any licensees associated with the firm but who is not a client.
“Designated agency" means a multiple representation relationship in which each client of the firm in the multiple representation relationship receives negotiation services from the firm only from licensees associated with the firm who are not providing negotiation services to any other client of the firm in the transaction.
“Disciplinary proceeding" means a proceeding against one or more licensees in which the board may revoke, suspend, or limit a license, reprimand a licensee, or assess a forfeiture or require education or training under s. 452.14 (4m)
“Felony" means a felony under the laws of this state or a crime committed elsewhere that would be a felony if committed in this state. “Felony" does not include a felony for which the applicant has been pardoned; a felony for which the conviction has been reversed, set aside, or vacated; or a felony for which the conviction has been expunged under s. 973.015
“Firm" means a licensed individual broker acting as a sole proprietorship or a licensed broker business entity.
“Licensed broker business entity" means a broker licensed under s. 452.12
that is a business entity.
“Licensed individual broker" means a broker licensed under s. 452.12
who is an individual.
“Licensee" means any person licensed under this chapter.
“Listing firm” means a firm that has entered into an agency agreement with a seller or landlord pursuant to which the firm lists property for sale or lease.
“Material adverse fact" means an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement.
“Multiple representation relationship" means a relationship between a firm and 2 or more of the firm's clients in which the clients are parties in the same transaction.
“Negotiate" means to provide to a party assistance within the scope of the knowledge, skills, and training required under this chapter in developing a proposal or agreement relating to a transaction, including doing any of the following:
Acting, whether directly or indirectly, as an intermediary by facilitating or participating in communications between parties related to the parties' interests in a transaction. In this paragraph, providing advice or opinions on matters that are material to a transaction in which a person is engaged or intends to engage or showing a party real estate does not, in and of itself, constitute acting as an intermediary by facilitating or participating in communications between parties.
Completing, when requested by a party, appropriate board-approved forms or other writings to document the party's proposal consistent with the party's instruction.
Presenting to a party the proposals of other parties to the transaction and giving the party a general explanation of the provisions of the proposal.
“Out-of-state broker" means a person who is not licensed under this chapter and who is regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States, or a foreign country.
“Out-of-state salesperson" means a person who is not licensed under this chapter and who is employed or engaged as an independent contractor by an out-of-state broker.
“Party" means a person seeking to engage in a transaction.
“Principal firm" means a firm that engages a subagent to provide brokerage services in a transaction.
“Real estate practice" means engaging in conduct which requires a license under this chapter.
“Salesperson" means any individual who is associated with a firm, other than a broker or an individual who is not required to hold a license under this chapter as provided under s. 452.03 (2)
“Subagent" means a firm that is engaged by a principal firm to provide brokerage services in a transaction, but that is not associated with the principal firm.
“Transaction" means the sale, exchange, purchase or rental of, or the granting or acceptance of an option to sell, exchange, purchase or rent, an interest in real estate, a business or a business opportunity.
A foreign corporation that entered into a brokerage contract to sell a radio station without being licensed in this state could not sue for its commission. The licensing requirement is not an unlawful burden on interstate commerce. Chapman Company, Inc. v. Service Broadcasting Corporation, 52 Wis. 2d 32
, 187 N.W.2d 794
Units of interest in a limited partnership are personalty and not real estate, and no real estate broker's license is required for their sale. 60 Atty. Gen. 254.
That one who owns stock in a corporation owns “an interest" in a business under sub. (2) (a) and that therefore anyone who negotiates a sale of stock requires a license under this section cannot be right. That would require every securities broker in Wisconsin to have a real estate broker's license as well as a securities license. Schlueter v. Latek, 683 F.3d 350
The `New' Chapter 452: Defining Real Estate Broker Practice. Leibsle. Wis. Law. June 2006.
Brokers and salespersons licensed. 452.03(1)(1)
Except as provided in s. 452.137
, no person may engage in or follow the business or occupation of, or advertise or hold himself or herself out as, or act temporarily or otherwise as a broker or salesperson without a license issued under this chapter. The board may grant a license only to a person who is competent to transact that business or occupation in a manner that safeguards the interests of the public, and only after satisfactory proof of the person's competence has been presented to the board.
No license under this chapter is required for an individual who, on behalf of and under the direction of a firm or one or more licensees associated with a firm, provides the firm or licensee with services that are limited to those that are purely administrative, clerical, or personal in nature.
Under s. 452.03 an agreement to pay a real estate brokerage commission to a person not licensed as a broker is void at its inception. Using a licensed broker who provides no actual services as a conduit for a fee to an unlicensed person does not create a co-brokerage arrangement authorized by s. 452.19. Badger III Ltd. v. Howard, Needles, Tammen & Bergendoff, 196 Wis. 2d 891
, 539 N.W.2d 904
(Ct. App. 1995), 94-2531
Officers of a corporation or partners of a partnership can act for the corporation or partnership in the rental of real estate owned by the entity without being licensed as real estate brokers. 60 Atty. Gen. 1 (1971).
Actions of a tenants union on behalf of its members may require a real estate broker's license. 60 Atty. Gen. 118 (1971).
The permitted limits of nonlicensed independent contractor agents are discussed. 70 Atty. Gen. 23.
Duties and powers of board. 452.05(1)(1)
In addition to the other duties and responsibilities of the board under this chapter, the board shall advise the secretary on matters relating to real estate practice and shall:
Grant and issue licenses to individuals and business entities to act as brokers and to individuals to act as salespersons.
Approve forms for use in real estate practice. The board may conduct public hearings on matters relating to the approval of forms used in real estate practice. The board may also solicit comments relating to forms used in real estate practice from the council on forms created under s. 452.06 (1) (a)
or from a professional trade association whose members consist primarily of licensees actively engaged in real estate practice.
After consultation with the council on real estate curriculum and examinations, promulgate rules establishing criteria for the approval of educational programs and training sessions under s. 452.09 (2)
and approve such programs and sessions in accordance with the established criteria.
After consultation with the council on real estate curriculum and examinations, brokers and salespersons licensed under this chapter, and interested members of the public, establish criteria for the approval of continuing educational programs and courses in real estate related subjects required for renewal under s. 452.12 (5) (c)
Approve continuing educational programs and courses in accordance with the criteria established under par. (d)
. In order to be approved, a continuing educational program or course must require brokers and salespersons to pass an examination on the information presented at the program or course in order to successfully complete and receive continuing education credit for the program or course under s. 452.12 (5) (c)
Create a form on which an individual applying to renew a broker's or salesperson's license may do all of the following:
State whether he or she has been convicted of a crime since he or she last applied to renew the license or, for an initial renewal, since he or she initially applied for the license.
Identify the date of conviction for any crime described under subd. 1.
and describe the nature and circumstances of the crime.
Sign his or her name to attest to the accuracy and truthfulness of the information under subds. 1.
and to acknowledge all of the following:
Assign a unique license number to each person licensed under this chapter.
“Certified local register of historic property" means a register of historic property that is part of a historic preservation ordinance enacted by a city, village, town or county if the ordinance is certified by the state historical society under s. 44.44
“Historic building" means a building that fulfills at least one of the following requirements:
Is listed on a certified local register of historic property, if that fact is specified in a statement recorded in the office of the register of deeds for the county in which the commercial real estate is located.
Is included in a district that is listed on a certified local register of historic property, if that fact is specified in a statement recorded in the office of the register of deeds for the county in which the commercial real estate is located, and has been determined by the city, village, town or county to contribute to the historic significance of the district.
In preparing the form for the offer to purchase commercial real property under sub. (1) (b)
, the board shall include a statement that the seller represents to the buyer that the seller has no notice or knowledge that the commercial real property is a historic building.
The board may prepare letters and bulletins and conduct clinics disseminating information to its licensees.
The board may enter into reciprocal agreements with officials of other states or territories of the United States for licensing brokers and salespersons and grant licenses to applicants who are licensed as brokers or salespersons in those states or territories according to the terms of the reciprocal agreements.
A corporation cannot be licensed as real estate salesperson. 71 Atty. Gen. 38
Councils and committees. 452.06(1)(a)
The board shall create a council on forms that shall meet when directed by the board, be chaired by a member of the board, and report to the board.
Any proposed change in a form relating to real estate practice shall be referred to the council on forms for review before the form is approved.
The board may direct the council on forms to create or modify a form relating to real estate practice and submit that form to the board for approval. If the board directs the council to create or modify a form, the board shall establish a deadline for the council to submit the form to the board.
The council on real estate curriculum and examinations shall do all of the following:
Not less than annually, review subjects covered on examinations for licensure under this chapter and the qualifications for instructors of and performance evaluations for educational and continuing educational programs, training sessions, and courses approved under this chapter.
If the secretary creates any councils or committees under s. 15.04 (1) (c)
to provide advice to the department or board on matters relating to real estate practice, such councils or committees shall be chaired by a member of the board, if available, and shall report to the board and the secretary.
The secretary shall provide staff and other support required for the operation of councils and committees created under this section or under s. 15.04 (1) (c)
to provide advice to the department or board, as appropriate, on matters relating to real estate practice.
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
The board may promulgate rules regarding advertising by brokers or salespersons that do not conflict with s. 452.136