Key Takeaways
- Wisconsin law requires licensees to provide a written disclosure statement describing agency options to consumers
- The disclosure must be provided not later than the time the firm enters into an agency agreement with the client
- Wisconsin recognizes three buyer relationship options: pre-agency, subagency (customer), and buyer agency (client)
- All parties are owed certain duties including fair and honest service, reasonable skill and care, and disclosure of material adverse facts
- Written buyer-broker agreements are now required before showings under 2025 rule changes
Wisconsin Agency Disclosure Requirements
Wisconsin law requires real estate licensees to provide written disclosure about agency relationships and brokerage services available to consumers.
Purpose of Agency Disclosure
The Wisconsin Real Estate Examining Board requires licensees to provide a written disclosure statement (Form WB-50) that describes:
- Types of brokerage services available
- Agency relationship options
- Duties owed to clients and customers
- How compensation works
Key Point: The disclosure form must be provided not later than the time the firm enters into an agency agreement with the client.
When to Provide Disclosure
| Situation | When to Provide |
|---|---|
| Listing appointment | Before signing listing agreement |
| Buyer consultation | Before entering buyer agency agreement |
| First substantive contact | Before any confidential discussion |
| Open house | Before substantive conversation |
Client Acknowledgment
If the written disclosure statement is not incorporated into the agency agreement:
- The firm shall request the client's signed acknowledgment
- Acknowledgment confirms receipt of disclosure
- Consumer signature provides documentation
Wisconsin Disclosure Form (WB-50)
The DSPS-approved Agency Disclosure Statement (WB-50) includes:
| Content | Description |
|---|---|
| Agency options | Explains buyer and seller representation choices |
| Duties to all parties | Lists universal obligations |
| Duties to clients | Lists enhanced client obligations |
| Compensation | Explains how agents are paid |
| Consent provisions | For dual agency situations |
2025 Update: Written buyer-broker agreements are now required before showings, with updated commission disclosure rules and enhanced MLS listing obligations.
Buyer Relationship Options
Wisconsin law provides buyers with three relationship choices:
1. Pre-Agency
In pre-agency, the buyer is NOT a client or customer of the firm:
| Feature | Description |
|---|---|
| Services available | Showing properties, providing information |
| What firm cannot do | Negotiate for the buyer |
| Representation level | Neutral information provider |
2. Subagency (Buyer as Customer)
In subagency, the buyer is a customer:
| Feature | Description |
|---|---|
| Services available | Duties owed to all parties, authorization to negotiate |
| What buyer does NOT receive | Client-level services or advice |
| No advice on | How much to offer, negotiation strategy, which property to pursue |
3. Buyer Agency (Buyer as Client)
In buyer agency, the buyer is a client:
| Feature | Description |
|---|---|
| Agreement required | Written buyer agency agreement |
| Services available | Full brokerage services |
| Advice available | Pricing recommendations, negotiation strategy, property recommendations |
Key Distinction: Customers receive basic services; clients receive full representation and advice.
Seller Relationship Options
Listing Agency (Seller as Client)
When a seller signs a listing agreement:
| Feature | Description |
|---|---|
| Agreement type | Written listing agreement |
| Representation | Full seller representation |
| Firm duties | All duties owed to clients |
When must a Wisconsin firm provide the agency disclosure statement to a client?
In Wisconsin, what is the relationship status of a buyer in pre-agency?