Date of enactment: March 22, 2024
2023 Assembly Bill 918 Date of publication*: March 23, 2024
2023 WISCONSIN ACT 208
AN ACT to renumber 452.14 (2); to amend 452.14 (4m) (a), 452.14 (4r), 452.17 (1), 452.17 (3), 452.19 (1), 452.23
(title) and 452.23 (4); and to create 452.14 (2) (b), 452.14 (3) (im), 452.23 (5) and 710.13 of the statutes; relating
to: various changes regarding the laws governing real estate practice, disclosures regarding real property whole-
salers, and providing a penalty.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 4. 452.14 (2) of the statutes is renumbered
452.14 (2) (a).
SECTION 5. 452.14 (2) (b) of the statutes is created to
read:
452.14 (2) (b) The board shall notify a firm in writing
as to all disciplinary orders issued against a licensee asso-
ciated with the firm. The notice shall be sent to the firm
at the email address of the individual broker acting as a
sole proprietor or the email address for the licensed busi-
ness entity.
SECTION 7. 452.14 (3) (im) of the statutes is created
to read:
452.14 (3) (im) Violated s. 710.13 (2).
SECTION 8m. 452.14 (4m) (a) of the statutes is
amended to read:
452.14 (4m) (a) Assess against a licensee a forfeiture
of not more than $1,000 $5,000 for each violation enu-
merated under sub. (3).
SECTION 10. 452.14 (4r) of the statutes is amended
to read:
452.14 (4r) The board may assess against a licensee
who is an individual a forfeiture of $1,000 $5,000 for a
violation under s. 452.25 (2) (a).
SECTION 11. 452.17 (1) of the statutes is amended to
read:
452.17 (1) Any person who engages in or follows the
business or occupation of, or advertises or holds himself
or herself out as or acts temporarily or otherwise as, a bro-
ker or salesperson in this state without a license under this
chapter shall be prosecuted by the district attorney in the
county where the violation occurs or by the attorney gen-
eral and may be fined not more than $1,000 $5,000 or
imprisoned not more than 6 months or both.
SECTION 12. 452.17 (3) of the statutes is amended to
read:
452.17 (3) Any person who otherwise violates any
provision of this chapter may be fined not more than
$1,000 $5,000 or imprisoned for not more than 6 months
or both.
SECTION 13. 452.19 (1) of the statutes is amended to
read:
452.19 (1) No licensee may pay a fee or a commis-
sion or any part thereof for performing any act specified
in this chapter or as compensation for a referral or as a
finder’s fee to any person who is not licensed under this
chapter or who is not regularly and lawfully engaged in
the real estate brokerage business in another state, a terri-
tory or possession of the United States, or a foreign coun-
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 208 2023 Assembly Bill 918
try, unless the person was licensed under this chapter
when the commission was earned or when the referral fee
arrangement was made.
SECTION 14. 452.23 (title) of the statutes is amended
to read:
452.23 (title) Disclosures, investigations and
inspections by brokers and salespersons.
SECTION 16. 452.23 (4) of the statutes is amended to
read:
452.23 (4) In performing an investigation or inspec-
tion and in making a disclosure in connection with a real
estate transaction, a licensee shall exercise the degree of
care expected to be exercised by a reasonably prudent
person who has the knowledge, skills, and training
required for licensure under this chapter.
SECTION 17. 452.23 (5) of the statutes is created to
read:
452.23 (5) A licensee that in good faith provides
information attributable to a state or local governmental
or quasi−governmental entity, including an agency,
department, board, commission, bureau, or division, or a
military or public safety organization, may not be held
civilly liable if that information is subsequently deter-
mined to be inaccurate, unless the licensee knew the
information was inaccurate at the time the licensee pro-
vided the information. For the purpose of any proceed-
ing, the good faith shall be presumed.
SECTION 18. 710.13 of the statutes is created to read:
710.13 Disclosures regarding real property
wholesalers. (1) DEFINITIONS. (a) “Purchase agree-
ment” means a contract for the sale, exchange, option,
rental, or purchase of residential real property.
(b) “Real property wholesaler” means a person that
enters into a purchase agreement as a buyer and intends
to assign the person’s rights as buyer under the purchase
agreement to a 3rd party for consideration.
(c) “Residential real property” means real property
in this state that includes one to 4 dwelling units, as
defined in s. 101.61 (1).
(2) REQUIRED DISCLOSURES. A real property whole-
saler shall provide all of the following disclosures:
(a) No later than entering into a purchase agreement
as a buyer, written notice to the seller of the residential
real property that the buyer is a real property wholesaler.
(b) No later than entering into a contract with a 3rd
party to assign the real property wholesaler’s rights as
buyer under a purchase agreement to the 3rd party, writ-
ten notice to the 3rd party that the assignor is a real prop-
erty wholesaler that holds an equitable interest in the resi-
dential real property as a buyer under the purchase
agreement and that the assignor is conveying the assig-
nor’s interest in the purchase agreement, not title to the
residential real property.
(3) RIGHTS TO RESCIND. (a) If a real property whole-
saler fails to timely provide the disclosure to a seller as
required under sub. (2) (a), the seller may rescind the pur-
chase agreement at any time before the closing, without
any liability on the seller’s part, by providing written
notice of rescission to the real property wholesaler, and
the seller is entitled to retain any deposits or option fees
paid by the real property wholesaler in connection with
the transaction.
(b) If a real property wholesaler fails to timely pro-
vide the disclosure to a 3rd party assignee as required
under sub. (2) (b), the assignee may rescind the assign-
ment of the purchase agreement at any time before the
closing, without any liability on the assignee’s part, by
providing written notice of rescission to the real property
wholesaler, and the assignee is entitled to the return of
any deposits or option fees paid by the assignee in con-
nection with the transaction.
(4) WAIVER PROHIBITED. A person may not waive the
person’s rights under this section. If the person proceeds
to closing, the person’s right to rescind under sub. (3) is
terminated.
SECTION 19.0Initial applicability.
(1) DISCLOSURES REGARDING REAL PROPERTY WHOLE-
SALERS. The treatment of s. 710.13 first applies to a pur-
chase agreement or an assignment of a purchase agree-
ment entered into on the effective date of this subsection.