WI Agency Disclosure

The Wisconsin Disclosure of Real Estate Agency helps buyers & sellers to understand the duties a real estate broker owes to everyone involved in a real estate transaction. Wisconsin state law requires that brokers provide this written disclosure before providing brokerage services for buyers or sellers.

A ‘client’ is a person whom the broker legally represents and has a written agency agreement. In order to sell a home, the broker must sign a WB-1 listing contract with the sellers before the home is placed on the MLS. Wisconsin law states that a broker must do all of the following for their clients:

• Loyally represent the client's interests, by placing the client's interests ahead of any other party, including the broker.
  
  
• Disclose to the client all information known by the broker that is not known by the client or discoverable by the client, except for confidential information, or information prohibited from disclosure by law.
  
  
• Fulfill any obligation required by the agency agreement.

Many home buyers do not realize that real estate agent who shows them properties listed on the MLS are representing sellers by default. In order for a buyer to have equal representation, they will need to sign an agreement called the WB-36 buyer agency agreement.

A ‘customer’ is someone who purchases or sells a property without a written agency agreement with the broker assisting them. In Wisconsin a broker is still required to do many things for customers, unless the act violates fair housing or similar consumer protection laws:

• A broker must provide brokerage services honestly, fairly & in good faith.
  
  
• Exercise reasonable skill and care in providing brokerage services.
  
  
• Disclose all material adverse facts that the broker knows.
  
  
• Keep confidential information given to the broker in confidence, or any information the broker thinks someone would want to be kept confidential.
  
  
• Provide accurate information about market conditions to anyone who requests the information, within a reasonable time of the request.
  
  
• Account for all property coming into the possession of a broker.
  
  
• When negotiating, present contract proposals in an objective and unbiased manner & disclose the advantages and disadvantages.

When a broker has agency agreements with both buyer and seller in the same transaction, this is called Multiple Representation. Consent must be obtained from buyer & seller for a broker to be able to perform Multiple Representation.