Wisconsin Legislative Council
AMENDMENT MEMO
One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc
Memo published: March 11, 2024 Contact: Patrick Ward, Staff Attorney
2023 Senate Bill 870 Senate Amendment 1
2023 SENATE BILL 870
2023 Senate Bill 870 makes various changes to ch. 452, Stats., which regulates the practice of real
estate, and creates disclosure requirements for real property wholesalers. First, the bill changes the
definition of material adverse fact by specifying that it does not include certain information that a real
estate licensee is not required to disclose under current law. Also, the bill prohibits the Real Estate
Examining Board (the Board) from promulgating rules that require disclosures by a licensee that
conflict with or are beyond what is required under s. 452.23, Stats.
Second, the bill makes various changes to when the Department of Safety and Professional Services
(DSPS) or the Board must notify real estate firms regarding a licensee associated with the firm. The bill
requires DSPS to notify firms if a licensee associated with the firm does not file a renewal of license in
time or if the renewal is not granted. It also requires the Board to notify firms in writing regarding all
investigations, disciplinary proceedings, actions, and administrative warnings, including the contents of
the warning, related to a licensee associated with the firm. The bill states that firms are not responsible
for monitoring or ensuring compliance with any license limitations the Board places on a licensee
associated with the firm.
Third, under current law, the Board can assess a $1,000 forfeiture against an individual who violates ss.
452.14 (3), 452.17 (1) and (3), and 452.25 (2) (a), Stats. The bill increases the forfeiture to $5,000 for
those violations with certain exceptions.
1
Fourth, under current law, a licensee must disclose to the parties of a real estate transaction any facts
that contradict any information in a report on the physical condition of a property or any other
information relating to the real estate transaction created by a qualified third party. The bill narrows
this disclosure requirement to instead include the disclosure of all material adverse facts known by the
licensee that the party does not know and cannot discover through reasonably vigilant observation.
Also, the bill specifically does not require the disclosure of material adverse facts if any of the following
applies: (1) the material adverse fact is addressed in the third-party written report; (2) the material
adverse fact has otherwise been disclosed in writing; or (3) disclosure of the material adverse fact is
prohibited by law.
Lastly, the bill creates immunity from civil liability for a licensee who provides information in good faith
attributable to a governmental body and the information is subsequently determined to be inaccurate.
SENATE AMENDMENT 1
Senate Amendment 1 makes five changes to 2023 Senate Bill 870. First, the amendment removes the
amended definition of material adverse fact, the prohibition on the Board promulgating rules requiring
1
The exceptions delineated in the bill are ss. 452.14 (3) (g), (L), (m), (o), and (p), Stats. - 2 -
disclosures beyond what is required in statute, and the requirement that DSPS notify firms if a licensee
associated with the firm does not file a renewal of license in time or if the renewal is not granted.
Second, the amendment removes the requirement that the Board notify firms of all investigations,
disciplinary proceedings, actions, and administrative warnings related to a licensee associated with the
firm and the provision that firms are not responsible for monitoring or ensuring license limitation
compliance by a licensee associated with the firm. Instead, the amendment requires the Board to notify
firms in writing of disciplinary orders issued against a licensee associated with the firm.
Third, the amendment provides that all violations of the statutes identified in the bill, including the
exceptions in the bill, are subject to a $5,000 forfeiture.
Fourth, the amendment removes the changes to required disclosures relating to information that
contradicts a written report.
Lastly, the amendment prohibits a licensee who knew information was inaccurate when it was provided
from receiving immunity from civil liability for providing information attributable to a governmental
body that is later determined to be inaccurate.
BILL HISTORY
Senator Jagler offered Senate Amendment 1 on February 20, 2024. On March 6, 2024, the Senate
Committee on Housing, Rural Issues and Forestry recommended adoption of Senate Amendment 1 and
passage of the bill, as amended, on votes of Ayes, 5; Noes, 0.
For a full history of the bill, visit the Legislature’s bill history page.
PW:jal