Module 2 - Wisconsin Licensure Law

Reasons a license may not be required: There are specific exceptions for who does not need a real estate license in Wisconsin, including:
- Property Management Employees:
- Employed by a property owner to manage or maintain multifamily properties.
- Cannot enter into leases, negotiate terms, or hold tenant money, but can inform about rentals and building rules.
- Attorneys:
- Licensed attorneys or those acting under a power of attorney do not need a license to sell, lease, or exchange property.
- Employees of these attorneys do not require a license for supportive activities.
- For Sale By Owner (FSBO):
- Property owners can sell their own property without a license, but cannot sell a neighbor’s property.
- Court Orders:
- Receivers, bankruptcy trustees, executors, etc., selling property under court orders are exempt.
- Bank Employees:
- Officials from banks and trust companies involved only in selling their own real estate are exempt, as are those conducting real estate appraisals connected to loans.
- Public Employees:
- Public officers performing their official duties do not need a license.

Legal Advice:
- Real estate agents/brokers with legal licenses should not provide legal advice unless they are also licensed lawyers in Wisconsin.
- Unauthorized practice of law can result in penalties from the state bar or the Wisconsin Supreme Court.

Licensure Requirements: Prospective salespersons and brokers must comply with several regulations, specifically in Chapters 440, 452, and 709 of Wisconsin statutes.
Salesperson Requirements:
- Minimum age: 18 years
- Education: High school diploma or GED and completion of real estate educational courses.
- Background check: Must complete an FBI criminal background check.
Pre-License Education:
- Complete 10 credit hours or 72 classroom hours of approved real estate education before the exam.
- Must apply for a license within four years of completing educational requirements.
Broker Requirements:
- Must have been a licensed salesperson for at least two years and completed 40 points of qualifying real estate transactions.
- Similar educational and examination requirements as for salespersons apply to brokers as well.

Transaction Points:
- Closed residential transaction: 5 points
- Closed commercial transaction: 10 points
- Closed time-share transaction: 1 point

Similar to salesperson education but requires completion of either 10 credit hours or 72 hours of pre-license education.

Lawyers licensed in Wisconsin may have exemptions from pre-license course requirements.

Potential applicants must disclose felony and misdemeanor convictions, including nolo contendere (no contest) pleas.
- Nolo Contendere: A plea where the individual does not admit guilt but accepts a plea deal.
- Offered Plea: A denial of guilt but an acknowledgment of enough evidence for conviction.
Board Considerations for Felon Applicants:
- Nature of the crime.
- Evidence of rehabilitation and suitability for licensure.

Salesperson Application:
- Submit application via the DSPS portal with a $60 fee, proof of education, and passing exam proof.
Salesperson Exam: Consists of 140 scored and 5-10 unscored questions. Must achieve 75% to pass.
Broker Exam: Similar format and requirements to salesperson exam.

Nonresident Applicants: Must meet the same Wisconsin requirements but may be exempt from some education requirements based on their home state licenses.
Reciprocal License Holders: Must maintain an active license in their home state and principal place of business.

License Renewal: Must renew every two years; renewal notice is sent 60 days prior to expiration.
- Failure to renew means no brokerage services can be conducted.
Continuing Education:
- Requires 18 hours in each two-year period. Must be completed and reported for license renewal.
- Extensions may be granted for extenuating circumstances.
Inactive Status: If a broker's license is inactive for more than five years, they must retake exams and complete educational requirements to reactivate their license.