Wis. Admin. Code Real Estate Examining Board REEB 25.033

Current through November 25, 2024

Section REEB 25.033 - Salesperson's pre-license program

An education program for applicants for a real estate salesperson's license shall consist of 72 hours. The education program shall contain all of the following topics:

(1) REAL PROPERTY. Instruction relating to real property shall include all of the following:

(a) Land, real estate and real property.

(b) The difference between real property and personal property.

(c) Classification of fixtures.

(d) Characteristics of real estate.

(e) Types of home ownership.

(f) Mobile homes under s. 70.043, Stats.

Note: Section 70.043, Stats., was repealed by 2023 Wisconsin Act 12.

(g) Ownership expenses.

(h) Property features.

(i) Investment considerations.

(j) Tax benefits for home ownership.

(k) Homeowner's insurance.

(2) THE REAL ESTATE BUSINESS. Instruction relating to the real estate business shall include all of the following:

(a) Real estate specialties.

(b) The real estate market.

(c) Factors affecting supply and demand.

(d) Business cycles.

(e) Real estate practice under ch. 452, Stats.

(3) REAL ESTATE BROKERAGE. Instruction relating to real estate brokerage shall include all of the following:

(a) Law of agency.

(b) Creating and terminating of agency.

(c) Fiduciary duties.

(d) Responsibilities to third parties.

(e) Broker's and salesperson's compensation.

(f) Antitrust laws.

(g) The difference between independent contractor and employee.

(h) Firm-to-firm relationships.

(i) Licensee-to-licensee relationships.

(j) Agency, including all of the following:

1. Duties owed to parties and clients under s. 452.133, Stats.

2. The requirement for an agency agreement and disclosure of agency under s. 452.135, Stats.

3. Revisions to common law duties and responsibilities under s. 452.139, Stats.

(k) Agency relationship, including all of the following:

1. Multiple representation with designated agency.

2. Multiple representation without designated agency.

3. Single agency.

(4) LISTING AGREEMENTS. Instruction relating to real estate listing agreements shall include all of the following:

(a) Listing property.

(b) Listing agreements under ch. REEB 16.

(c) Special listing provisions.

(d) Terminating listings.

(e) Obtaining listings.

(f) Pricing the property.

(g) Disclosures.

(h) Home warranties.

(5) INTERESTS IN REAL ESTATE. Instruction relating to interests in real estate shall include all of the following:

(a) Government powers.

(b) Estates in land.

(c) Encumbrances.

(d) Water rights.

(e) Forms of ownership.

(f) Trusts.

(g) Ownership by business organizations.

(h) Cooperatives.

(i) Time-shares under ss. 70.095, 707.02, 707.05, 707.40, 707.47, and 707.49, Stats.

(j) Condominiums under ss. 703.08, 703.21 and 703.33, Stats.

(k) Homestead under ss. 706.01 (7) and 766.605, Stats.

(6) LEGAL DESCRIPTIONS. Instruction relating to real estate legal descriptions shall include all of the following:

(a) Methods of describing real estate.

(b) Land units and measurements.

(7) TAXES AND OTHER LIENS. Instruction relating to taxes and other liens shall include all of the following:

(a) Liens.

(b) Tax liens.

(c) General tax assessment, equalization, and tax bills.

(d) Mortgage liens.

(e) Construction liens.

(f) Judgments.

(g) Estate and inheritance tax liens.

(h) Other liens.

(i) Taxes under ss. 74.15 and 74.47 (1) and (2), Stats.

(j) Taxation and transfer fees under ss. 77.22 and 77.27, Stats.

(8) REAL ESTATE CONTRACTS. Instruction relating to real estate contracts shall include all of the following:

(a) Contract law.

(b) Elements of a valid contract.

(c) Performance of contract.

(d) Discharging of contract.

(e) Default or breach of contract.

(f) Forms used in real estate under ch. REEB 16, including all of the following:

1. Listing agreements under s. 240.10, Stats.

2. Offers to purchase.

3. Addenda.

4. Buyer agency agreements.

5. Counter-offers.

6. Multiple counter-proposals.

7. Amendments.

8. Notices.

9. Understanding closing statements.

10. Disclosure forms, including all of the following:

a. Seller condition report.

b. Agency.

c. Buyer and seller disclosure.

11. Cancellation agreement and mutual releases.

12. Options.

13. Bills of sale.

14. Exchanges.

(g) Agreement to arbitrate real estate transaction disputes under s. 788.015, Stats.

(9) TITLE RECORDS AND TRANSFERS OF TITLE. Instruction relating to real estate title records and transfers of title shall include all of the following:

(a) Requirements of a valid conveyance under ss. 240.10, 706.02 and 706.03, Stats.

(b) Types of deeds.

(c) Involuntary alienation.

(d) Probate.

(e) Transferring of a title by will.

(f) Public records and recording.

(g) Evidence of title.

(h) Conveyance defined under s. 706.01, Stats.

(10) REAL ESTATE FINANCE AND BASIC MATH. Instruction relating to real estate finance and basic math shall include all of the following:

(a) Buyer qualification.

(b) Mortgage instruments.

(c) Payment plans.

(d) Provisions for default; assignment; release and subject to.

(e) Land contracts.

(f) Secondary mortgage market.

(11) APPRAISAL AND MARKET ANALYSIS. Instruction relating to real estate appraisal and market analysis shall include all of the following:

(a) Basic principles of value.

(b) Direct market comparison approach.

(c) Cost approach.

(d) Income approach.

(e) Appraisal process.

(12) FAIR HOUSING LAWS. Instruction relating to real estate fair housing laws shall include all of the following:

(a) Equal opportunity in housing.

(b) Federal fair housing law.

(c) Blockbusting, steering and redlining.

(d) Equal rights under s. 106.50, Stats.

(e) Organizations.

(13) ETHICAL REAL ESTATE PRACTICES. Instruction relating to ethical real estate practices shall include all of the following:

(a) Chapter REEB 24.

(b) Ethical business conduct, including all of the following:

1. Direct contact with the public, including all of the following:

a. Competence in area of service under s. REEB 24.03.

b. Tie-in arrangements under s. REEB 24.075.

c. Agreements in writing under s. REEB 24.08.

d. Misleading market values under s. REEB 24.09.

e. Net listings under s. REEB 24.10.

2. Advertising under s. REEB 24.04 and s. 452.136, Stats.

3. Completing and presenting written proposals under ss. REEB 24.12 and 24.13., including all of the following:

a. Confidentiality.

b. Drafting and submitting offers.

c. Prompt delivery to buyer.

d. Fair presentation of offers.

e. Prompt notification.

4. Disclosure of compensation and interest under s. REEB 24.05 and s. 452.133, Stats., including all of the following:

a. Disclosing of interest.

b. Referral services.

c. Disclosing of profits.

d. Disclosing of licensure.

(14) CONSUMER PROTECTION. Instruction relating to consumer protection shall include all of the following:

(a) Property inspections under s. REEB 24.07 (1) (a).

(b) Inquiry by listing firm under s. REEB 24.07 (1) (b).

(c) Disclosure of material adverse facts under s. REEB 24.07 (2).

(d) Disclosure of material suggesting adverse material facts under s. REEB 24.07 (3).

(e) Disclosure of side agreements under s. REEB 24.07 (4).

(f) Reliance upon third parties under s. REEB 24.07 (5).

(g) Investigations and inspections under s. 452.23, Stats.

(h) Civil liability for misrepresentation.

(i) Seller's disclosure duties under ch. 709, Stats.

(15) LEASES. Instruction relating to real estate leases shall include all of the following:

(a) Leasehold estates.

(b) Standard lease provisions.

(c) Lease documents.

(d) Legal principles of leases.

(e) Improvements.

(f) Maintenance.

(g) Breach.

(h) Residential rental practices under ss. ATCP 134.02, 134.06, and 134.09.

(16) PROPERTY MANAGEMENT. Instruction relating to property management shall include all of the following:

(a) Functions of property manager.

(b) Management agreement.

(c) Management considerations.

(d) Renting and maintaining the property.

(e) Risk management.

(17) LAND USE CONTROL AND DEVELOPMENT. Instruction relating to land use control and development shall include all of the following:

(a) Public controls.

(b) The comprehensive plan.

(c) Zoning.

(d) Subdivision regulations.

(e) Private land-use controls.

(f) Building codes.

(g) Land development.

(h) Subdividing.

(18) ENVIRONMENTAL CONCERNS. Instruction relating to real estate environmental concerns shall include all of the following:

(a) Radon.

(b) Asbestos.

(c) Lead-based paint.

(d) Toxic waste.

(e) Underground storage tanks under ch. ATCP 93.

(f) Floodplains under s. 87.30, Stats., and ss. NR 116.01 and 116.06.

(g) Flood insurance.

(h) Wetlands under s. 23.32, Stats.

(i) Farmland preservation under ss. 91.01, and 91.60 to 91.70, Stats.

(k) Disclosure documents under s. 452.23 and ch. 709, Stats., and s. REEB 24.07.

(19) MISCELLANEOUS WISCONSIN LICENSE LAWS. Instruction relating to miscellaneous Wisconsin license laws shall include all of the following:

(a) Chapter REEB 15.

(b) Chapter REEB 16.

(c) Chapter REEB 17.

(d) Chapter REEB 18, including all of the following:

1. Definition of trust account.

2. Interest-bearing and non-interest bearing accounts.

3. Definition of trust funds.

4. When a trust account is required.

5. Deposit of trust funds.

(e) Chapter REEB 23.

(f) Property rights of married persons under ss. 766.31, 766.51, 766.60 and 766.63, Stats.

(g) Mortgage banking under s. 224.71, Stats.

(h) Escrow agreement procedures, including all of the following:

1. Escrows requiring separate escrow agreements.

2. Pre-closing earnest money escrows.

3. Post-closing escrows.

4. Escrows not requiring separate escrow agreement.

5. Drafting escrow agreements.

Wis. Admin. Code Real Estate Examining Board REEB 25.033

Adopted by, CR 15-010: cr. Register September 2015 No. 717, eff.10/1/2015.

Amended by, CR 17-100: am. (14) (b) Register July 2018 No. 751, eff. 8/1/2018

Amended by, correction in (2) (g) 5., (Note) made under s. 13.92(4) (b) 7, Stats., Register December 2018 No. 756, eff. 1/1/2019

Amended by, CR 19-128: r. (18) (j) Register January 2021 No. 781, eff. 2/1/2021

Amended by, CR 23-075: am. (3) (h), (i), (8) (f) 5., 6., 11. to 14., (13) (b) 2., 4. (intro.), (17) (b) Register August 26 No. 824, eff. 9/1/2024.

Amended by, correction in (1) (f) (Note) made under s. 35.17, Stats., Register September 30 No. 825, eff. 10/1/2024