REALTORS® have long sought to raise the bar of professionalism in our industry. Our Code of Ethics — which celebrates its 100th anniversary this year — is founded on this principle and includes this phrase about REALTORS®: “They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession.”
Throughout the WRA’s recent strategic planning process, members asked that the WRA do more to improve and enhance professionalism in the real estate industry as well as better inform the media and the general public of these efforts and improvements. Toward this goal, the WRA’s proactive legislative agenda this year includes three bills that will do just that. These bills were approved by the board of directors at their May meeting in Madison and are in the process of being drafted and introduced in the legislature.
The first bill would require two years of supervised, transactional experience before a real estate salesperson is allowed to obtain a broker’s license. To become a broker under current law, one need only to take 72 hours of both sales and broker pre-license education, get a passing score on each exam, and then they are set to go. Wisconsin is the only state in the country that does not require licensees to have some professional experience prior to obtaining a broker’s license and managing other licensees. With the increasing complexity of today’s real estate transaction, hands-on sales experience is essential for a broker. By requiring two years of documented salesperson experience within the last four years, brokers will gain the experience they need to protect themselves, the employees and agents of the company, and most importantly, the public.
The second bill to enhance our profession creates specific standards for when a convicted felon may obtain and keep a Wisconsin real estate license. Under this proposed legislation, a new applicant will not qualify for a real estate license in Wisconsin if he or she has any felony conviction, in state or elsewhere, in the last five years, starting from the completion of their sentence — including confinement and any supervision. Once the individual becomes eligible to apply for a license, they must undergo a background check, at their expense, then stand before the Real Estate Examining Board (REEB) and discuss their individual circumstances. The REEB will have the discretion of whether or not to grant a license.
The final bill to advance professionalism creates a regulatory framework for out-of-state real estate licensees who provide brokerage services related to the sale or purchase of real estate located in Wisconsin. This bill would require out-of-state licensees (OSL) to enter into a written cooperative agreement with a Wisconsin broker if they want to provide brokerage services while physically in the state. The legislation is intended to address the consistent complaint from in-state licensees that buyers and sellers are at risk because OSLs lack an understanding of Wisconsin laws, especially as to the use of state-approved forms. The new law would allow OSLs to physically enter Wisconsin and provide brokerage services but only if they have a written cooperative agreement with an in-state broker that outlines the OSL’s duties. Currently, 26 states operate in a similar fashion. The new law would give in-state brokers the choice to have two voluntary options — a referral fee arrangement or a written cooperative agreement. Under the cooperative agreement option, in-state brokers set the parameters as to the OSL’s brokerage services.
Combined with our recent past efforts to increase the hours of continuing education to maintain a license in the state, the WRA is responding to members’ calls for raising the bar of professionalism in real estate in Wisconsin. In so doing, we are better protecting the public and celebrating the centennial of our REALTOR® Code of Ethics in a direct and meaningful way.