Over the last several years, the WRA has been charged with the task by you, the members, to elevate the level of professionalism in the Wisconsin real estate industry. We first began with simple steps such as increasing the continuing education (CE) hours from 12 to 18 hours followed by increasing broker pre-license education from 36 to 72 hours. The greatest advancement of industry professionalism occurred when we passed two items during the 2013-2014 legislative session: 1) specific statutory standards for when a convicted felon could obtain and keep a Wisconsin real estate license, and 2) statutorily requiring two years of hands-on transactional experience as a salesperson prior to being able to obtain a Wisconsin broker license. For more information regarding the broker experience requirement legislation, see the March 2014 Wisconsin Real Estate Magazine article, “Building a Brand of Trust,” at www.wra.org/WREM/Mar14/BrokerBill.
Last month in Wisconsin Real Estate Magazine, my article discussed the structure of the Real Estate Examining Board (REEB), its role at the Department of Safety and Professional Services, and the REEB’s current activities pertaining to forms, discipline and rules. My September article discussed one specific rule the REEB was working on — Wisconsin Administrative Code § REEB 25: Education. This rule has been modified numerous ways that impact pre-license education as well as the related certificates of completion. The newly updated pre-license curriculum will be effective January, 1, 2016.
New licensee CE requirements changes
However, Wis. Admin. § REEB 25 also includes another very important modification. Effective October 1, 2015, all real estate licensees — regardless of when they obtained their license — will be required to take CE. This is a substantial change from years past.
Prior to the effective date of this rule, real estate licensees were exempt from taking CE during the biennium in which they received their license. The failure to take CE, however, created quite a glaring educational gap in an individual’s education history.
For illustration, say an individual received a salesperson license during the 2011-12 biennium and therefore they were not required to complete CE in that biennium. That same individual then went on to receive their broker’s license during the 2013-14 biennium — again exempting them from taking the current 2013-14 CE education. As most individuals do, this same individual waited until November 2016 to complete their 2015-16 CE education. Therefore, this individual went without any CE education for almost six years. Step back for a moment and think about how much the practice of real estate has changed in the last six years.
Difference between CE and pre-license
Pre-license curriculum and CE curriculum are distinctly different. The pre-license curriculum and the license examination confirm that a “broker’s or salesperson’s licensee shall read and write a comprehensive examination in English, testing that person’s competency to transact the business of a real estate broker or salesperson.” (See Wis. Admin. § REEB 12.02(1)).
CE curriculum, however, is set forth by the REEB every two years. (See Wis. Admin. § REEB 25.065). The REEB has a statutorily created advisement council called the Real Estate Curriculum and Examinations Council that takes great strides to ensure that the CE curriculum challenges real estate licensees as to the practice of real estate. For example, the council is tasked with the following:
- Ensuring that the required 18 hours of real estate education reflect current real estate industry concerns.
- Reviewing specific provisions and contingencies of state-approved forms.
- Discussing statutory laws and administrative codes affecting real estate practice.
- Including one three-hour course on new developments that updates licensees on federal and state law changes, form updates and case law impacting real estate.
Basically, CE takes the education level up a notch to real-world application beyond the minimum competency being tested on the real estate license exam.
The sales and broker pre-license curricula and licensing exams focus only on the minimum competency for individuals to enter the profession. CE, on the other hand, challenges, tests and educates real estate licensees on a deeper level.
It’s like taking a written driver’s license examination compared to the hands-on driving portion of the driver’s test. Pre-license prepares you for the written portion while CE places you in the vehicle itself. Pre-license trains you on the road rules while CE makes you merge onto the interstate in the rain going 70 MPH.
Beginning 2015-16, who has to complete CE?
Beginning in the 2015-16 biennium under this new rule, all real estate licensees will be required to complete CE — even during the biennium in which they receive their license. For example, a salesperson and broker each received their license in January 2015. Those individuals will be required to complete CE for the 2015-16 biennium before they renew their license no later than December 14, 16. However, there is one exemption: salespersons licensed after October 1 in the even-numbered year of the biennium.
The real estate license biennium always ends on an even year. The REEB determined that a salesperson who received their license between October 1 of the even year and the end of the biennium does not have to complete CE for that biennium. This exemption only applies to salespersons and only during that narrow 75-day window. For instance, a salesperson who receives their salesperson license on October 30, 2016, will not be required to complete CE for the 2015-16 biennium.
Regardless of when a broker obtains their license, they are required to complete CE for the current biennium. Therefore, if an individual receives their broker license on November 1, 2016, they will be required to complete the 2015-16 CE before renewing their license no later than December 14, 2016.
The WRA will continue to work on elevating the profession and professionalism of real estate.
Code of Ethics Training
In a continued effort to raise the level of ethics for all REALTOR® members, as of January 1, 2016, the National Association of REALTORS® will require 2.5 hours of Code of Ethics training every two years rather than every four. Moving forward, the WRA will keep you informed on how you can satisfy this new requirement.
Cori Lamont is Director of Corporate and Regulatory Affairs for the WRA.