Wisconsin Practice: Disclosures and Trust Funds
Wisconsin practice includes required residential disclosures and strict trust-fund handling. This chapter reviews the Real Estate Condition Report and trust account rules.
The Real Estate Condition Report
Wisconsin generally requires a seller of residential property of one to four dwelling units to give the buyer a Real Estate Condition Report (RECR) disclosing known conditions and defects. Licensees help ensure the report is provided; sellers must answer honestly, and known material adverse facts must be disclosed.
Trust Accounts and Client Funds
A Wisconsin broker must hold client funds such as earnest money in a separate trust account, apart from the broker's own money. Commingling, converting, or improperly disbursing trust funds violates Chapter 452 and REEB rules and can lead to discipline. Brokers must keep records that allow review of the account.
Advertising and Conduct
Advertising must be truthful and not misleading and must identify the firm as required. Licensees must comply with fair housing, disclose material adverse facts, and avoid misrepresentation. The Examining Board enforces these standards through investigations and discipline.