On February 7, 2024, more than 560 REALTORS® from around the state came together and spoke as one voice at this year’s REALTOR® & Government Day (RGD). 560! The largest number of attendees ever at RGD. Legislators noted the number of REALTORS® who took the time to come to Madison to visit them in the Capitol to speak about REALTOR® priorities.
The best part of RGD is that it’s about the REALTOR® party — not politics. RGD involves policies that shape the environment of your business, influence your transaction and protect private property rights. RGD is dedicated to these critical aspects — your business, your clients, your customers and the realm of real estate. And this year was spectacular.
The Capitol was still buzzing the next day about the REALTORS® in the building. With one voice, you educated legislators as to why they should support or oppose a bill. Without a doubt, the presence of hundreds of Wisconsin REALTORS® at the Capitol lobbying for various issues undoubtedly produces positive outcomes for the WRA’s legislative priorities.
The day
WRA Chair Mary Jo Bowe kicked off the event addressing RGD attendees, followed by speeches from WRA REALTORS® Political Action Committee (RPAC) Chair Rita Blenker, Gov. Tony Evers and members of the WRA advocacy team. Lastly, the WRA’s President & CEO Tom Larson discussed plans to implement the historic $525 million investment in workforce housing passed earlier this session. In addition, he spoke about the WRA’s focus on local advocacy, including the Wisconsin Homeowners Alliance (WHA).
For those in attendance, the day also included continuing education (CE) credit for the 2023-24 biennium for attendees who passed the five-question CE exam provided at the end. Finally, the day ended with a reception for attendees to meet back up and discuss their experience.
Which items did you advocate for this year?
The WRA’s advocacy team outlined the advocacy issues before REALTORS® met with lawmakers at the Capitol. REALTORS® were ready with their stories about how the legislation in question impacts consumers, their transaction, their profession or property owners. REALTORS® personalized the message, making their advocacy more relatable and consequently more influential. Four key issues were on the agenda for discussion at the Capitol.
1. Closing the foreclosure equity theft loophole (AB 969/SB 918)
The WRA supports requiring counties to sell property and distribute any net proceeds to the former owner after acquiring the property through a property tax foreclosure.
In 2023, the U.S. Supreme Court unanimously ruled in Tyler v. Hennepin County that the county’s effort to retain proceeds from foreclosure sales constituted an unconstitutional “taking.” Wisconsin law is generally consistent with the court’s ruling after the passage of 2021 Wis. Act 216, which specifies that former property owners are entitled to the surplus proceeds following a sale of tax-deeded property at auction.
Wisconsin law contains a potential loophole because it does not expressly require the county to sell tax-deeded property. Rather, surplus proceeds are due to the former owner only if the county decides to sell the property. Otherwise, the county can keep the property and use it for any purpose without providing just compensation to the former owner.
This legislation aims to close the loophole by requiring counties to sell a property after foreclosure. This requirement will help return any remaining equity in the property back to the former owner and ensure that counties are not engaging in an unconstitutional “taking,” as established in the Tyler case.
2. Real estate practice (AB 918/SB 870)
Wis. Stat. Chap. 452 governs real estate brokerage practice, limitations on legal actions, investigation and discipline of licensees, and the duties and powers of the Real Estate Examining Board (REEB). Real estate brokers and salespersons are regulated by the Wisconsin Department of Safety and Professional Services (DSPS) as well as the REEB, which protects Wisconsin property buyers and sellers by ensuring safe and competent practice.
This bill addresses concerns with excessive licensee liability by:
- Creating a safe harbor for licensees who use government information and attribute information to the source: For example, when listing a property, an agent relies on the assessor record to indicate the lot size. If it is later discovered the assessor record contained inaccuracies, the agent should not be held responsible for presenting incorrect information obtained from a government source.
- Increases transparency by requiring disclosure when assigning rights under a contract: Wholesaling is essentially assigning contractual rights under a contract to another. This legislation requires a wholesaler assigning their contract rights for consideration to provide a written disclosure of their wholesaler status at the time of entering the agreement with either the buyer or the seller.
- Raises the bar for real estate practitioners: Under current law, the REEB can only levy a fine or forfeiture up to $1,000 for the most severe violations of Wisconsin license law. This legislation increases that number to $5,000.
3. Licensee advertising of FSBO properties (AB 407/SB 394)
The WRA opposes this bill, which aims to exempt real estate licensees from vital consumer protections such as inspection and disclosure duties as well as the requirement to have a listing contract. The removal of these requirements would undermine safeguards for consumers.
A real estate transaction is typically the single largest financial transaction in someone’s lifetime. Accordingly, a license ensures that a professional has the necessary knowledge and skills to guide a party in a transaction, reducing the risk of fraud and protecting consumers.
Current law allows real estate licensees to advertise For Sale By Owner (FSBO) properties. To advertise a FSBO, a licensee must:
- Walk through the property to verify the condition and information provided (inspect).
- Enter into a written agreement identifying the services provided by the firm (listing contract).
4. Addressing discriminatory covenants and deed restrictions in Wisconsin (AB 444/SB 439)
The WRA supports this bill, which proposes to create a process that allows a property owner to act when a discriminatory restriction or covenant is recorded on their land. Offensive, discriminatory covenants based on race and other protected classes appear in deeds and subdivision restrictions and covenants throughout Wisconsin. While illegal, this language haunts the title records and commitment reports buyers receive when looking to purchase properties.
The 1968 Fair Housing Act and Wisconsin’s Open Housing Law prohibit these covenants, but these laws do not erase discriminatory restrictions from property deeds and title records. Seeing discriminatory language often offends potential buyers, adding more tension to the homebuying process that’s already filled with emotion. This legislation intends to empower the property owner to act when a discriminatory restriction is recorded on their land record.
Learn more about the legislative items discussed on RGD at action.wra.org.
Thank you to every one of you who showed up and spoke up on February 7! You set the bar for an industry lobby day and made it one for the record books. See you next year!