Background

A real estate license is required in order to provide brokerage services in the state of Wisconsin. Wisconsin Stat. Chap. 452 sets forth the practices, often referred to as brokerage services, that require a real estate license. Under current Wisconsin law, a license is not required to advertise For Sale By Owner (FSBO) properties. However, if an entity or individual has a real estate license, they must comply with Wisconsin license law to advertise FSBOs.

Compliance with Chap. 452 provides that before listing a property, real estate licensees must perform a competent and diligent property inspection, and the listing agent must ask the seller about the condition of the structure, mechanical systems and other relevant aspects of the property in a written response, which is typically utilized as a real estate condition report.   

New legislation

Newly introduced legislation, SB 394/AB 407, aims to modify Wisconsin law and waive several of the Chap. 452 requirements for real estate licensees as they relate to FSBOs. This legislation intends to:

• Remove all the disclosures and duties required by real estate licensees.
• Eliminate the listing contract requirement. 
• Eliminate a licensee’s responsibility to inspect the property before advertising.

The WRA does not support exempting real estate licensees from complying with the necessary consumer protections such as inspection, disclosure and other duties required under Wisconsin law simply because it is not ideal or convenient for the licensee to comply. 

Legislation status 

This legislation has been introduced and is waiting to be heard by the Wisconsin Senate and Assembly committees.