As the licensing entity for Wisconsin real estate licensees, the Department of Safety and Professional Services (DSPS) pursues the goal of consumer protection by periodically revising forms, updating their technology and disciplining real estate licensees for violations of license law. The real heavy lifting, though, is done by the Real Estate Examining Board (REEB) and the Real Estate Contractual Forms Advisory Council (Forms Council). Both the REEB and the Forms Council are comprised of volunteers who offer their time to make the real estate industry in Wisconsin better for consumers and licensees. The Forms Council reviews state-approved forms and makes recommended revisions to the REEB. The REEB has the final say in whether the recommended revisions are accepted. Additionally, the REEB has the authority to discipline real estate licensees for violations of license law.

Forms update 

The Forms Council recommended revisions to all the agency agreements and the offers to purchase over the course of 2023. The REEB approved the recommended revisions. 

Agency agreements 

• Added consumer-friendly language regarding the negotiability of commissions and compensation to others.
• Modified the dispute resolution language to better highlight alternative dispute resolution as an option. 
• Added language to the Dispute Resolution section to draw attention to the two-year statute of repose to bring an action against a real estate licensee. 
• Added a strongly worded wire fraud warning.
• Optional use date: December 1, 2023. Mandatory use date: January 1, 2024.  

Offers to purchase 

• Added a strongly worded wire fraud warning. 
• Optional use date: October 1, 2023. Mandatory use date: January 1, 2024.

Resources highlighting the changes can be found on the WRA’s forms update resource page at www.wra.org/FormsUpdate. 

New online license platform

The DSPS unveiled LicensE as its new online, self-guided occupational license application platform for new applications and renewals. LicensE replaced the Online Licensure Application System. Additional information about LicensE is available at dsps.wi.gov/Pages/LicensE.aspx. 

Licensee discipline issued by the REEB  

Disciplinary orders are publicly available at dsps.wi.gov/Pages/SelfService/OrdersDisciplinaryActions.aspx. A person can file a complaint with the DSPS and REEB at dsps.wi.gov/Pages/SelfService/FileAComplaint.aspx.

Unauthorized practice of law

A licensee drafted an amendment to a commercial lease. There is not an approved form for amending a commercial lease. For those kinds of real estate or business opportunity transactions for which the REEB 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. This amendment did not bear the name of the drafter. If the amendment had been drafted by a party or an attorney and the name of the drafter was imprinted on the amendment, the licensee could have completed it. 

The REEB ordered the licensee and the licensee’s firm to each pay costs of $293. 

Failure to provide brokerage services with reasonable skill and care 

A broker acted as a property manager and supervised an unlicensed property manager. The unlicensed property manager allowed a tenant to move into a unit five months before executing the lease. When the lease was finally executed, the unlicensed property manager signed it on behalf of the owner. 

The REEB found that by authorizing an unlicensed individual to sign both a lease and a property management agreement, the broker aided and abetted the unlicensed real estate practice, which is a failure to provide brokerage services with reasonable skill and care. 

The broker was ordered to pay costs of $1,000. Additionally, the broker was required to engage another broker for one year to review each completed property management agreement or lease to ensure proper completion. The broker engaged by the other broker was ordered to provide quarterly reports to the REEB. The REEB also ordered the broker to complete one hour of education on contracts and one hour of education on property management. 

Advertising in a way that is false, deceptive or misleading 

A broker sent a letter to a property owner that indicated the sender was an investor and a real estate broker. Additionally, it said, “THIS CHECK reflects a legitimate cash offer for your property at” and identified the owner’s property. Further, it said the broker could close in 30 days or less and the broker would purchase the property as is with no required repairs. The letter included an image of a signed check made to the property owner in the amount of $32,421.60. The “check” purported to be from the broker and contained watermarks and a check number. The letter contained additional text stating, “We are ready to turn this into a LIVE CHECK for your property at” the property owner’s address.

The property owner asked the broker to move forward with the sale. The broker asked to see the property, and the property owner refused and said he wanted to move forward with the sale. 

The REEB found that the letter and “check” constituted advertising in a false, deceptive or misleading manner and ordered the broker and the broker’s business entity to each pay $1,258.

Conclusion

That is a wrap on what the DSPS has been up to. The WRA strives to publish DSPS reports periodically to update not only on disciplinary cases but to also give an overview of what else the DSPS has been up to, such as forms revisions and technology updates. DSPS reports can be found at www.wra.org/DSPSreports.