Madison, WI - The Legislature has overwhelmingly approved new
legislation that will modernize and improve real
estate agency laws in Wisconsin to the benefit of
REALTORS® and consumers alike. The legislation (titled
the American Dream Consumer Act) passed the state
Assembly 94-2 and a week later passed the state Senate
unanimously on a voice vote.
Overview
The legislation is the product of several years of
research and input from REALTORS® and regulators
alike. The new law will provide better service,
enhanced transactional transparency and maximum
protection for consumers. Generally, the new law will:
- Revise dual agency rules to allow two agents
from one company to provide full negotiation
services for seller and buyer clients in a
transaction (i.e., designated agency).
- Clarify that brokerage services can be provided
to consumers without an agency agreement prior to
negotiations.
- Define pre-agency relationships so that
consumers are fully protected when receiving
services prior to negotiations.
- Clarify the role and duties of subagents.
- Minimize unnecessary complexity and confusion by
requiring agency disclosures be provided in plain
English.
- Require agents to be neutral in their dealings
with all parties until one party or the other
retains them as an agent.
- Require strict confidentiality and loyalty
duties of agents providing services to multiple
clients in a transaction.
- Clarify the relationship between license law and
common law.
Details of the new law, which becomes effective in
approximately six months, will appear in next month’s
Wisconsin Real Estate Magazine as well as upcoming
Legal Updates and educational seminars.
Congratulations and thanks to everyone who promoted
this important issue at REALTOR® and Government Day
last May and those who responded to WRA Calls to
Action that encouraged direct contacts to your state
senators and Assembly representatives. The
overwhelming legislative support we received is
directly related to your active personal support.
For more information contact Michael Theo (mtheo@wra.org)
or Rick Staff (rikstaff@wra.org).
Published: 12/6/2005
