(1) DEFINITIONS. In this section: (am) Notwithstanding s. 452.01 (1m), “agency agreement” includes a written agreement between an out-of-state broker and a client in which the client authorizes the out-of-state broker to provide brokerage services to the client. (cm) 1. “Commercial transaction” means a transaction concerning any real property, other than real property containing 1 to 4 dwelling units or real property zoned for agricultural use. 2. “Commercial transaction” does not include any transaction concerning a dwelling unit that is a part of real property containing more than 4 dwelling units and that is being sold on a unitby-unit basis. (d) “Cooperative agreement” means an agreement entered into between an out-of-state broker and a firm as provided in this section. (e) “Dwelling unit” has the meaning given in s. 440.97 (3). (h) “Licensed salesperson” means a salesperson who is licensed under this chapter. (2) OUT-OF-STATE BROKERS. (a) An out-of-state broker may act as a broker in this state only as provided in par. (ag) or (am). (ag) An out-of state broker may, subject to par. (b), act as a broker in this state if the out-of-state broker does all of the following: 1. Enters into a cooperative agreement with a listing firm and cooperates with the listing firm on the listing agreement that is subject to the cooperative agreement. Each cooperative agreement may cover only one listing agreement. 2. Submits to the listing firm evidence that the out-of-state broker is licensed in good standing to engage in real estate brokerage in a jurisdiction other than this state. (am) An out-of-state broker representing a person who is seeking to buy or rent property located in this state in a commercial transaction may, subject to pars. (b) and (bm), act as a broker in this state if the out-of-state broker does all of the following: 1. Enters into a cooperative agreement with a firm and cooperates with the firm. Each cooperative agreement shall be limited to a type of property, type of function, geographic area, or other criteria specified in the buyer’s or tenant’s search parameters. 2. Submits to the firm evidence that the out-of-state broker is licensed in good standing to engage in real estate brokerage in a jurisdiction other than this state. 3. Either the out-of-state-broker or the firm enters into an agency agreement with the prospective buyer or tenant. The cooperative agreement shall acknowledge whether the out-of-state broker or firm has the agency agreement. If the out-of-state broker has entered into the agency agreement with the prospective buyer or tenant, the out-of-state broker and the prospective buyer or tenant shall, notwithstanding s. 452.01 (3m) and (5w), be considered to be a principal firm and client for purposes of this chapter, and the firm shall be a subagent and shall provide the out-ofstate broker with a copy of the disclosure statement under s. 452.135 (2) to be given to the client. The out-of-state broker is not required to request that the client sign the statement. (b) An out-of-state broker, including an out-of-state broker who is a party to a cooperative agreement, may not do any of the following: 1. Enter into a listing agreement concerning any property located in this state. 2. For commission, money, or other thing of value, promote in this state the sale, exchange, purchase, option, rental, or leasing of any property located in this state, including by posting signs on the property. 3. Enter into a cooperative agreement with a person who is not licensed under this chapter as authority to sell, lease, rent, exchange, or attempt to sell, lease, rent, or exchange property in this state. (bm) An out-of-state broker acting under par. (am) may not do any of the following: 1. Negotiate with a seller or landlord, unless authorized under the cooperative agreement. If a property is not listed with a listing firm, the firm shall conduct all negotiations with the seller or landlord of that property. 2. View or show commercial property in this state for sale or lease without the firm or a licensee associated with the firm being present, unless authorized under the cooperative agreement. If a property is not listed with a listing firm, the firm shall view or show the property with the out-of-state broker. 3. Have contact with another firm or another firm’s seller or landlord, unless otherwise agreed to in the cooperative agreement. (c) An out-of-state broker who is a party to a cooperative agreement with a firm, and any out-of-state salesperson of the out-of-state broker, are not required to be licensed under this chapter but shall otherwise be treated as licensees for purposes of this chapter and shall comply with the laws of this state as they apply to licensees, and the out-of-state broker shall file with the board an irrevocable consent that actions may be commenced against the out-of-state broker in the proper court of any county in this state in which a cause of action arises or the plaintiff resides, by the service of any process or pleading authorized by the laws of this state on the board or any duly authorized employee. The consent shall stipulate and agree that such service is valid and binding as due service upon the out-of-state broker in all courts in this state. The consent shall be duly acknowledged and, if made by a corporation, shall be authenticated by the corporate seal. (d) A firm that is a party to a cooperative agreement with an out-of-state broker, and any licensee associated with the firm, may not act under the cooperative agreement on behalf of a broker who is not a party to the cooperative agreement. (e) 1. An out-of-state broker who is a party to a cooperative agreement with a firm shall maintain the originals or copies of all documents the out-of-state broker receives, maintains, or generates in connection with any transaction subject to the cooperative agreement, for at least 3 years after the date of closing or completion of the transaction, or, if no closing or completion occurs, 3 years after the date on which the parties execute the cooperative agreement. 2. An out-of-state broker who is a party to a cooperative agreement with a firm shall deposit with the firm copies of all documents the out-of-state broker is required to maintain under subd. 1., unless the out-of-state broker and the firm agree in writing that the out-of-state broker is not required to do so. (f) No person may pay an out-of-state broker a commission, money, or any other thing of value for brokerage services unless the out-of-state broker is a party to a cooperative agreement with a firm. (g) Notwithstanding s. 452.01 (2) (bm), no out-of-state broker may, for commission, money, or other thing of value, show a property in this state that is offered exclusively for rent unless that showing is authorized under a cooperative agreement between the out-of-state broker and a firm. (3) OUT-OF-STATE SALESPERSONS. An out-of-state salesperson may act as a salesperson in this state only if all of the following conditions are met: (a) The out-of-state broker who employs the out-of-state salesperson satisfies all of the applicable requirements under sub. (2). (b) The out-of-state salesperson works under the direct supervision of the out-of-state broker. (c) The out-of-state salesperson submits evidence to the firm that the out-of-state salesperson is licensed in good standing or is otherwise authorized to act as a salesperson in a jurisdiction other than this state. (d) In any transaction subject to the cooperative agreement, the out-of-state salesperson represents only the out-of-state broker who is a party to the cooperative agreement and with whom the out-of-state salesperson is employed. (4) COOPERATIVE AGREEMENT. (a) The board shall establish one or more forms to be used for cooperative agreements under this section, which shall include any required terms for such an agreement. (b) A cooperative agreement may be entered into only through the use of a form established by the board under par. (a) and shall do at least all of the following: 1. Establish the terms of cooperation between the out-of state broker, any out-of-state salesperson, and the firm. 2. Establish the terms of the out-of-state broker’s compensation. 3. Provide that all client funds, as defined in s. 452.13 (1) (a), that the out-of-state broker and the firm receive in connection with a transaction subject to the cooperative agreement shall be deposited in a trust account maintained by the firm. (c) A cooperative agreement under sub. (2) (am) shall describe the type, function, location, approximate size, and functional or geographic limitations of the property being sought. A separate cooperative agreement shall be entered into for each type of property. (5) PENALTY. (a) Subject to the rules promulgated under s. 440.03 (1), the board may conduct investigations and hold hearings to determine whether a person has violated this section or a rule promulgated under this section. (b) Notwithstanding s. 452.17 (3), any person who violates this section or a rule promulgated under this section may be fined, for each violation, not more than the greater of the following: 1. Five thousand dollars. 2. For a sales transaction, 1 percent of the purchase price of the property subject to the cooperative agreement. 3. For a lease or rental transaction, 1 percent of the total lease or rental value of the property subject to the cooperative agreement.
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