agency agreements - wisconsin realtors associationimages.wra.org/splvod/pdf/july2012/chapter3.pdf41...

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Agency AgreementsREEB 16

Chapter Overview Licensees use state-approved forms to create agency relation-ships with clients. The agency agreement will depend on the transaction. This chapter will cover

three state-approved agency agreements: the WB-1 Residential Listing Contract; the WB-4 Condominium Listing Contract; and the WB-36 Buyer Agency/Tenant Representation Agreement. Licensees must able to competently use approved forms and understand the contractual obligations and relationships parties create when entering into agency agreements.

THE REAL ESTATE TRANSACTION

Real estate transactions are not always a smooth, uninterrupted series of events leading to the eventual transfer of a property from a seller to a buyer. There can be both expected and unex-

pected complications that disrupt the transaction. Good real estate licensees can maneuver through the complications or avoid them all together with a little planning, reliance on resources, and good communication. Licensees must practice competently, which includes drafting approved forms to accomplish the intent of the parties and having a clear understanding of the laws affecting real estate practice. A real estate transaction has a beginning and an end. The transaction may begin when a seller lists a house, when a buyer writes an offer, or when a buyer begins looking for a property. If all goes well, the transaction ends at closing and the licensee receives a well-earned commission.

The BuyerA buyer may make initial contact with a real estate licensee with a phone call, meeting at an open house, or through a referral. At some point in the relationship, the licensee must discuss an agency relationship with the buyer and a buyer must decide whether to be a client or a customer. Before a buyer makes a decision to be a customer or a client, the buyer and the broker are in the pre-agency stage. During pre-agency, a broker provides general real estate information to a buyer, such as property characteristics, and may discuss the lending and pre-approval process but does not negotiate or provide opinions and advice. Once a buyer starts asking for opinions or advice or asks the licensee to write an offer, the buyer must choose whether to be a client or a customer and the broker must provide agency disclosure. If the buyer wants to be a client, the parties execute a buyer agency agreement that contains the necessary agency disclosure. If the buyer wants to be a customer, the broker must give written agency disclosure to the customer. When buyers start looking for property, they should consult with a lender to determine a price range for the search. Buyers also need to consult with a homeowner insurance provider to determine whether challenges, such as a flood plain, will make it difficult to insure the property.

Important Terminologyclosingexcluded propertiesprotected buyer

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REAL ESTATE SALES

Buyers then start looking at properties that fit their specifications and eventually make an offer on a property. The process of drafting depends on the complexity of the transaction. Often in a residential transaction, the buyers include a pre-qualification letter from a lender with the offer to give the seller some assurance that the buyer will have the funds to complete the transaction. A lender provides a pre-qualification letter to a buyer after a review of the buyer’s finances. It may include an amount for which the buyer is pre-qualified or it may be property specific and include a property’s address. Sellers like pre-qualification letters because they indicate that the buyer consulted a lender and has a general idea of how much the buyer will be able to borrow to finance the transaction. A pre-qualification letter is never a guarantee from a lender that the lender will approve the loan.

A buyer submits an offer to a seller and a seller accepts, rejects, or counters the offer. If a seller accepts the offer, the seller signs it and delivers it back to the buyer by the date specified in the offer. When a seller rejects an offer, the seller notes that on the offer and delivers it back to a buyer. There is not a deadline for rejecting an offer but if a seller does not act on an offer before the buyer’s deadline, the seller cannot later accept the offer and try to enforce it against the buyer. If a seller counters an offer, the seller initials the offer on the last page, completes a WB-44 Counter-Offer, and delivers both the offer and the counter-offer to the buyer. The use of counter-offers between buyers and sellers may involve several back and forth negotiations until the parties arrive at an accepted offer or a rejected offer. This process is covered in Chapter 10 with the Offer to Purchase and Chapter 12 with the Counter-Offer.

The SellerA licensee’s first step in working with a seller is educating the seller about the real estate market. A licensee will usually perform a market analysis on a seller’s property and discuss listing price and marketing strategies. The seller and the licensee sign a listing contract and the broker begins to market the property. Marketing may include advertising in a multiple list-ing service, social networking sites, yard signs, and newspaper advertisements. The goal is to attract qualified buyers at or near a seller’s listing price.

After a seller accepts an offer, the buyer and seller being working through the contingencies in the offer and a buyer may deliver earnest money if it is part of the offer. Licensees are respon-sible for managing contingencies and compliance with contingencies. If a buyer or a seller is not able to satisfy a contingency, but wants to continue with the transaction, the licensee is responsible for drafting appropriate amendments to address the new circumstances of the offer. Licensees need to be able to read, understand, and help parties draft enforceable con-tingencies. Contingency language can seem simple but it creates legal duties, obligations, and standards that parties can ask a court to enforce against another party.

The ClosingOnce parties remove contingencies, the parties are ready for closing. Closing is the end of the real estate transaction. The buyer exchanges the payment of the purchase price in exchange for legal title to the property. The parties execute necessary additional documents such as deeds, mortgage contracts, and insurance provisions and the parties record the deed evidenc-ing the transfer in the public records. The role of a licensee at closing depends on local custom. Licensees do not have to attend closing but many do and the role the licensee plays at closing depends on the customs of the local real estate market.

In Wisconsin, parties generally have a closing meeting, which is also called a face-to-face closing. The parties meet a one location and pass all the closing documents around for the necessary signatures. Attendees may include the real estate licensees, parties’ attorneys, the buyer’s lender, and a representative of the title company.

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Agency Agreements - 3

Regardless of the closing process, buyers and sellers need to resolve certain closing issues either at closing or prior to the closing. A seller needs to receive payment for the property at closing and buyers have other concerns including:

1. Receiving clear, unencumbered title;2. Receiving the seller’s deed;3. Inspecting the property to make sure the seller repaired any conditions agreed to in the offer; and4. Receiving leases and agreed upon rent proration, if any, for the property.

If there are no unsolvable issues at closing, the buyers and sellers sign the closing statement, buyers sign the mortgage documents, and sellers sign the deed. The buyers give the sellers a check for the property and the sellers give the buyers the keys.

AGENCY AGREEMENTSWhen buyers or sellers have valid agency agreements with licensees, property negotiations should usually be conducted with the licensee, not the buyer or seller directly.

SellersIf a seller has a valid listing contract, other brokers should address all property negotiations to the listing broker unless the listing broker consents to direct contact with the seller, the listing broker is unavailable, or other similar circumstances compel direct negotiation with the seller. For example, if a seller lists a property with a limited service broker, the limited services might not include negotiations and the listing broker may consent to direct negotiation with the seller.

BuyersWhen buyers have a buyer agency agreement, negotiations can go through the buyer’s agent but buyers can also negotiate without the agent’s assistance. The WB-36 Buyer Agency/Tenant Representation Agreement is exclusive because it prohibits a buyer from entering into another buyer agency agreement with another broker for the same properties but it does not prohibit a buyer from seeking out and negotiating independently for properties. When a buyer has an unmodified WB-36 with a broker, the buyer can directly negotiate with property owners or other brokers. Licensees should not negotiate directly with buyers who have modified buyer agency agreements to give the broker the exclusive right to negotiate on behalf of the buyer. If a buyer modifies an buyer agency agreement to give a broker an exclusive right to negotiate on behalf of the buyer, the buyer has agreed to not independently negotiate for properties without the assistance of the broker.

If a buyer with a WB-36 agreement tries to negotiate directly with a listing or selling agent, the licensee should caution the buyer to check the agreement provisions to determine any restric-tions on direct negotiation with other brokers. If the buyer has not modified the WB-36, the buyer will owe the buyer’s broker’s success fee if the buyer purchases or acquires a property covered by the agreement, even if the buyer purchased or acquired property without the assis-tance of the broker.

Licensees do not have to ask a buyer if the buyer has an agency agreement or whether the buyer modified the agreement to give a broker an exclusive right to negotiation but common practice and professional courtesy usually guide brokers to decline to work with a buyer with an agency agreement and refer the buyer back to the buyer’s broker for assistance.

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REAL ESTATE SALES

.WB-1 RESIDENTIAL LISTING CONTRACT-EXCLUSIVE RIGHT TO SELLA listing contract is an employment contract that a seller, as a principal, uses to employ a licensee, as an agent, to market the seller’s property. It is a personal service contract based upon a fiduciary relationship of trust and confidence. With an exclusive right to sell listing contract, the listing bro-ker earns a commission regardless of who procures the buyer for the listed property. A seller can modify an exclusive right to sell to create other kinds of listing contracts such as exclusive agency, open listing, and one-party listings. The state-approved listing contract is an exclusive right to sell but sellers can modify the state-approved form to fit the needs of the seller’s transaction. Licensees must know which form to use for a transaction and there may not be a form that fits the specifics of a particular transaction. For example, if a licensee is listing a mixed-use property, the licensee will have to decide whether the residential listing contract or a business listing contract best fits the transaction and use the form that requires the least amount of modification. Licensees use the WB-1 Residential Listing Contract when listing a residential property.

Line 1 Introduction

This line identifies the form as an exclusive right to sell listing contract. The top of the form states that the form is a state-approved form. All of the state-approved forms have a prefix of WB and a number identifying the form. When taking the licensing exam, the test taker will have all of the WB forms during the exam as reference documents. All forms have an optional and mandatory use date. All licensees must use the form as of the mandatory use date.

Lines 2-4 Property Description

A listing broker fills in the blanks with the street address for the property. A street address is usually a sufficient description and a legal description is not necessary unless the street address does not adequately describe the property.

For example, “123 Any Street in the City of Here, County of Now, Wisconsin. “A licensee should not fill out this section with “legal description to follow” because that does not sufficiently describe the real estate, which means the contract is not valid according to Wis. Stat. § 240.10(1) and if the contract is not valid, the seller might not have to pay a commission, even if the listing broker procured a buyer for the property.

Line 5 List Price

A licensee includes the specific price at which the seller wants to list the property. The list price is written out in words first and then a licensee places the numerical depiction in the parenthe-sis. If the event that the amounts do not match, the written amount will determine the list price.

For example, Two Hundred Fifty Thousand Dollars ($250,000).

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WB-1 RESIDENTIAL LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL

, County of ,

Phone: Fax:Produced with ZipForm™ by RE FormsNet, LLC 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipform.com

Approved by the Wisconsin Department of Regulation and Licensing1-1-08 (Optional Use Date) 7-1-08 (Mandatory Use Date)

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SELLER GIVES BROKER THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS:PROPERTY DESCRIPTION: Street address is:

ofin theWisconsin. Insert additional description, if any, at lines 242-250 or attach as an addendum per lines 251-254.

LIST PRICE: ).Dollars ($INCLUDED IN LIST PRICE: Seller is including in the list price the Property, all Fixtures not excluded on lines 11-14,

and the following items:

.NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures to be excluded by Seller or which are rented and will

continue to be owned by the lessor. (See lines 199-210):

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agrees that Broker may market Seller's personal property identified on lines 7-9 during the term of this Listing. Broker'smarketing may include:

.Broker may advertise the following special financing and incentives offered by Seller:

. Seller has a duty to cooperate with Broker's marketing efforts.See lines 74-80 regarding Broker's role as marketing agent and Seller's duty to notify Broker of any potential buyer knownto Seller. Seller agrees that Broker may market other properties during the term of this Listing.

and to have the Property in broom swept condition and free of all debris and personal property except for personalproperty belonging to current tenants, sold to buyer or left with buyer's consent.

COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION: The parties agree that Broker will workand cooperate with other brokers in marketing the Property, including brokers from other firms acting as subagents(agents from other companies engaged by Broker - See lines 138-141) and brokers representing buyers. Cooperationincludes providing access to the Property for showing purposes and presenting offers and other proposals from thesebrokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not be allowedto attend showings, and the specific terms of offers which should not be submitted to Seller:

.CAUTION: Limiting Broker's cooperation with other brokers may reduce the marketability of the Property.

EXCLUSIONS: All persons who may acquire an interest in the Property as a Protected Buyer under a prior listing contractare excluded from this Listing to the extent of the prior broker's legal rights, unless otherwise agreed to in writing. Withinseven days of the date of this Listing, Seller agrees to deliver to Broker a written list of all such prospective buyers. Thefollowing other buyers are excluded from this Listing until INSERT DATE

.These other buyers are no longer excluded from this Listing after the specified dateunless, on or before the specified date, Seller has either accepted an offer from the buyer or sold the Property to the buyer.

COMMISSION: Broker's commission shall be .Seller shall pay Broker's commission, which shall be earned, if, during the term of this Listing:

1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property;2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised;3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property;4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or5) A buyer is procured for the Property by Broker, by Seller, or by any other person, at no less than the price and on

substantially the same terms set forth in this Listing and in the standard provisions of the current WB-11RESIDENTIAL OFFER TO PURCHASE, even if Seller does not accept this buyer's offer. (See lines 215-218regarding procurement.)

A percentage commission, if applicable, shall be calculated based on the purchase price if commission is earned under 1) or 2)above, or calculated based on the list price under 3), 4) or 5). A percentage commission shall be calculated on the fair market valueof the Property exchanged under 3) if the exchange involves less than the entire Property or on the fair market value of the Propertyto which an effective change in ownership or control takes place, under 4) if the transaction involves less than the entire Property.Once earned, Broker's commission is due and payable in full at the earlier of closing or the date set for closing, unless otherwiseagreed in writing. Broker's commission shall be earned if, during the term of the Listing, one owner of the Property sells, conveys,exchanges or options an interest in all or any part of the Property to another owner, except by divorce judgment.NOTE: A sale, option, exchange or procurement of a buyer for a portion of the Property does not terminate the Listing as to anyremaining Property.

COMPENSATION TO OTHERS: Broker offers the following commission to cooperating brokers:. (Exceptions if any): .

MARKETING: Seller authorizes and Broker agrees to use reasonable efforts to procure a buyer for the Property. Seller

OCCUPANCY: Unless otherwise provided, Seller agrees to give buyer occupancy of the Property at time of closing

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Lines 6-9 Included in List Price

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In this section, the licensee lists what a seller wants to include in the purchase price of the prop-erty. The Definitions section on page 4 defines “Property” as the real estate described in the Property Description section, which does not include personal property. The list price includes the Property and the personal property items that a seller includes on lines 7-9. A seller might include items such as a snow blower, lawn mower, furniture, or a television.

Lines 10-14 Not Included in List Price

On lines 11-14, a licensee lists all the property that a seller does not want to include in the list price. This is where a seller lists fixtures the seller wants to remove from the property.

The terms that a buyer includes in the offer to purchase dictate the final details of the property that is included or excluded. A fixture is an item of property that, under certain circumstances may be treated as personal property but that has become so attached to the land or buildings, or is used in such close association with the land or buildings, that it is treated as a part of the land. A licensee must make sure a seller understands that the offer terms dictate the items of property a seller can leave and the items that the seller can remove. Listing property inclusions and exclusions in the listing contract can help a seller determine what property is available to include in the list price. “Fixtures” are defined on page 4 of the WB-1 on lines 199-210. Following the general description of a fixture, lines 202-207 include a non-exhaustive list of items that are fixtures. The definition of fixtures may not be readily apparent to buyers and sellers and licensees must help the parties understand the definition of fixture.

The CAUTION on lines 208-210 warns a seller to consider rented fixtures such as a water soft-ener. The seller does not own these fixtures and does not have the authority to include them in the purchase price so the seller should list them as excluded from the purchase price. Rented fixtures might also include theater systems, satellite dish components, or tanks for liquid pro-pane. A seller should consider property that has several components where some pieces might seem like fixtures and others are more like personal property. For example, a theater system may include installed items like a projector and screen and moveable items like speakers. A seller should specify whether the seller will include all components as fixtures or remove them as personal property.

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DEADLINES - DAYS: Deadlines expressed as a number of "days" from an event are calculated by excluding the day theevent occurred and by counting subsequent calendar days.DELIVERY: Delivery of documents or written notices related to this Listing may only be accomplished by:

depositing the document or written notice postage or fees prepaid or charged to an account in the U.S. Mail or acommercial delivery system, addressed to the party, at the party's address (See lines 265, 271 and 277.);

FIXTURES: A "fixture" is an item of property which is physically attached to or so closely associated with land orbuildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily

cooling units and attached equipment; water heaters and treatment systems; sump pumps; attached or fitted floorcoverings; awnings; attached antennas, garage door openers and remote controls; installed security systems; centralvacuum systems and accessories; in-ground sprinkler systems and component parts; built-in appliances; ceiling fans;

CAUTION: Exclude any Fixtures to be retained by Seller or which are rented (e.g., water softener or otherwater conditioning systems, home entertainment and satellite dish components, L.P. tanks, etc.) on lines 11-14

PROCURE: A buyer is procured when, during the term of the Listing, an enforceable contract of sale is entered into betweenthe Seller and the buyer or when a ready, willing and able buyer submits to the Seller or the Listing Broker a written offer atthe price and on substantially the terms specified in this Listing. A buyer is ready, willing and able when the buyer submittingthe written offer has the ability to complete the buyer's obligations under the written offer. (See lines 46-49)PROPERTY: Unless otherwise stated, "Property", means the real estate described at lines 2-4.PROTECTED BUYER: Means a buyer who personally, or through any person acting for such buyer: 1) delivers to Seller orBroker a written offer to purchase, exchange or option on the Property during the term of this Listing; 2) negotiates directly

buyer might acquire an interest in the Property, but only if Broker delivers the buyer's name to Seller, in writing, no later than

any other unlawful manner.

as otherwise agreed in additional provisions on lines 242-250 or in an addendum to this Listing.

removable without damage to the premises, items specifically adapted to the premises, and items customarily treatedas fixtures, including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and

fences; storage buildings on permanent foundations and docks/piers on permanent foundations.

and in the offer to purchase.

with Seller by discussing with Seller the potential terms upon which buyer might acquire an interest in the Property; or 3)

three days after the expiration of the Listing. The requirement in 3), to deliver the buyer's name to Seller in writing, may befulfilled as follows: a) If the Listing is effective only as to certain individuals who are identified in the Listing, by theidentification of the individuals in the Listing; or, b) if a buyer has requested that the buyer's identity remain confidential, bydelivery of a written notice identifying the broker with whom the buyer negotiated and the date(s) of any showings or othernegotiations.

account of race, color, sex, sexual orientation as defined in Wisconsin Statutes, Section 111.32 (13m),disability, religion, national origin, marital status, lawful source of income, age, ancestry, familial status, or in

giving the document or written notice personally to the party;

windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and

attends an individual showing of the Property or discusses with Broker or cooperating brokers the potential terms upon which

DEFINITIONS:

1)2)

3) electronically transmitting the document or written notice to the party's fax number (See lines 267, 273 and 279.); and,4)

FAIR HOUSING: Seller and Broker agree that they will not discriminate against any prospective buyer on

234 EARNEST MONEY: If Broker holds trust funds in connection with the transaction, they shall be retained by Broker in235 Broker's trust account. Broker may refuse to hold earnest money or other trust funds. Should Broker hold the earnest money,236 Seller authorizes Broker to disburse the earnest money as directed in a written earnest money disbursement agreement

signed by or on behalf of all parties having an interest in the trust funds. If the transaction fails to close and the earnest money237238 is disbursed to Seller, then upon disbursement to Seller the earnest money shall be paid first to reimburse Broker for cash239 advances made by Broker on behalf of Seller and one half of the balance, but not in excess of the agreed commission, shall240 be paid to Broker as Broker's full commission in connection with said purchase transaction and the balance shall belong to

Seller. This payment to Broker shall not terminate this Listing. 241

184 ADVERSE FACT: An "adverse fact" means any of the following: 185 A condition or occurrence that is generally recognized by a competent licensee as doing any of the following:(a)186 Significantly and adversely affecting the value of the Property;1)187 significantly reducing the structural integrity of improvements to real estate; or2)188 3) presenting a significant health risk to occupants of the Property.189 (b) Information that indicates that a party to a transaction is not able to or does not intend to meet his or her

obligations under a contract or agreement made concerning the transaction.190

MATERIAL ADVERSE FACT: A "material adverse fact" means an adverse fact that a party indicates is of such

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significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable

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party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or

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affects or would affect the party's decision about the terms of such a contract or agreement.

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REAL ESTATE SALES

After the seller lists the property that a seller wants to include and exclude from the listing price, the seller’s listing agent should check offers against the seller’s listing contract to see if the documents agree. The listing contract lists the property that a seller is willing to have included or excluded from an offer that is acceptable to the seller. MLS or office data sheets will list what property is available but the offer to purchase is the parties’ final agreement about what items are included in the purchase price and what items are not a part of the purchase price. When a licensee is helping a seller to decide what items the seller wants to include or exclude from the listing, the licensee should use theses practice tips:

1) Ask the seller to make an itemized list;2) Walk through property with the seller and ask about detachable or questionable items; 3) Mark the excluded items with tags and check offers and counter-offers with the seller’s list of excluded and included items; 4) Suggest the seller remove the item and show the house with items that will go with the house; and5) Address rented fixtures such as water softeners, satellite dishes, LP tanks, satellite receiver boxes , and security systems.

When educating a seller about fixtures and included or excluded items in the transaction, a licensee can ask the seller for additional information about the title to the listed property and order a “search and hold” or title report from the title company or have the seller complete a title issues questionnaire. The person ordering a title report from a title company or a “search and hold” on the title will pay for this service. Brokers often have a standard title issue ques-tionnaires for sellers. The title questionnaire will ask sellers to answer questions about recent modifications to the property, easements, boundary line disputes, or other issues that have an impact on title. Chapter 8 covers title conditions. By asking a seller about title issues, the licensee can begin the process of making sure that the seller will provide marketable title at closing. Marketable title give a buyer the right to enjoy the property without legal challenges and the ability to sell the property later. Licensees must be aware of title issues but should not advise sellers or buyers about the condition of title. Licensees cannot give legal advice to parties.

Lines 15-22 Marketing

In the Marketing section, the seller authorizes the broker to use reasonable efforts to find a buyer for the property and to market any personal property included in the list price. A broker’s marketing plan might include advertising in a multiple listing service holding open houses, or placing yard signs. On lines 19-20, the broker lists any special financing or incentives that a seller wants to include as part of the broker’s marketing strategy. A seller might want to adver-tise a home warranty, a carpet allowance, or seller financing.

When marketing properties, licensees should not provide information regarding lot lines, lot sizes, or room dimensions but rather refer buyers to other sources. Licensees can be found liable for inaccurate statements made to the parties in a transaction.

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Wisconsin law provides that an inexperienced buyer should be able to rely on factual state-ments made by a professional. Licensees should use disclaimers on all advertisements includ-ing information data sheets to avoid buyers assuming that licensees have verified the accuracy of statements about the property. Disclaimers may not provide absolute protection in all cases and mistakes by licensees could lead to lawsuits for damages, rescission of the transaction, or disciplinary action from the Department of Safety and Professional Services.

To minimize liability, licensees should:1) Never walk the parcel or lot lines with a buyer and caution sellers about potential liability if the seller inaccurately

represents boundary or lot lines; 2) Encourage buyers to order a survey or map if property dimensions are material to the transaction; and3) Include the source of data used in advertisements.

For example, state that the lot size is per seller measurements, acreage as per city assessor, or square feet as per tax record.

Lines 23-25 Occupancy

This language in this section is the same as the occupancy language used in the offer to purchase. Sellers need to prepare a property for closing by removing all debris and personal property and broom sweeping the premises. A seller must turn over occupancy of a property at closing unless the parties agree to a different occupancy schedule.

Lines 26-33 Cooperation, Access to Property or Offer Presentation

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In this section a broker agrees to cooperate and work with other agents, including subagents and buyer’s brokers, unless cooperation would be contrary to the seller’s instructions included on lines 31-32. Broker cooperation means providing access for showings and presenting offers from other brokers to the seller. Sellers may provide limitations to a broker’s duty to cooper-ate by including instructions in this section. Seller limitations could include prohibiting named buyers and sellers from attending open houses, instructing the listing broker not to engage subagents, present offers from named brokers, or refuse to draft certain offers. Line 33 of this section cautions a seller that limiting a broker’s ability to cooperate may reduce the marketability of the property. Any information limiting a broker’s cooperation should come from the seller, not from a broker. Suggestions from a broker limiting broker cooperation could be antitrust violations.

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Lines 34-39 Exclusions

This section specifies buyers whose acquisition of the property will not earn a commission for the current listing broker, which means they are excluded from this listing contract. The excluded people consist of two groups: 1) the previous listing broker’s protected buyer list; and 2) the seller’s excluded buyers.

If a seller listed a property with one broker and then later listed it with another broker, the first broker may have “protected buyers.” Buyers who a broker can protect are listed in the defini-tion of “Protected Buyer” on lines 220-229. If a protected buyer purchases the property, the seller owes a commission to the previous listing broker rather than the current one. Protected buyers protect the previous broker’s commission. When a seller lists a property with a new broker, the seller should give the new broker a list of the previous broker’s protected buyers within seven days of the new listing. If a previous listing broker’s protected buyer contacts the new listing broker about the property, the new listing broker should direct the protected buyer back to the previous listing broker. If a seller fails to provide the list of protected buyers to the new listing broker as required by line 37, the buyers are still protected for the previous listing broker. The concept of protected buyers discussion continues in the Extension of Listing sec-tion on lines 61-65.

The second group of exclusions are seller exclusions. These are buyers that may have already negotiated with the seller, seller’s family members, neighbors, or other potential buyers for whom the seller does not want to pay a commission if one of those buyers purchases the seller’s property. Licensees want to make sure that a seller puts an expiration date for seller exclusions on line 37 so that the exclusion does not run for the duration of the listing contract. Often sellers who were previously For Sale By Owner (FSBO) will have several exclusions of potential buyers who expressed interest before the property was listed with the current listing broker. As per lines 38-39, if the seller accepts an offer to purchase from a named excluded buyer or the seller sells the property to the named excluded buyer by the stated deadline the listing broker does not earn a commission. Sellers recruited by the listing broker that were pre-viously For Sale By Owner (FSBO) often make the most use of the Exclusions section.

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Lines 40-58 Commission

This section describes the different ways in which a broker can earn a commission and how to calculate the amount of the commission. Commission is not a requirement of an agency relationship and a broker could donate services or charge a reduced fee. If a broker is donat-ing brokerage services, the broker would list the commission as $0.00 on line 40 of the listing.

The parties can agree to any form of commission structure that is legal and permissible by the broker’s company policy. A broker can use line 40 to state whether commission is a percent-age of the purchase price, a set amount, or other compensation. Sellers and brokers may agree to base a commission on a percentage of the purchase price, a retainer fee, a flat fee, hourly range, or variable rates. For example, a broker could charge a 4% commission if the property is sold without the assistance of a co-broker and a 3% commission if a co-broker procures the buyer.

Brokers establish their own commission rates and policies though commissions are always negotiable with the seller. Commonly, brokers base commissions on a percentage of the purchase price and there is not a specific maximum or minimum commission amount. A bro-ker earns a commission if one of the events listed on lines 42-49 occurs but a seller does not pay a commission until closing or the date set for closing, unless the parties agree to another arrangement in writing.

The listing broker earns a commission (lines 42-49) if any of the five listed events occur during the term of the listing.

1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property. This means that the seller and buyer have an enforceable contract, all the contingencies have been removed, and the parties are just waiting for the closing date to arrive.

2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised. A broker does not earn a commission when a seller grants an option but if the option is later exercised, the broker earns a commission.

3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property. When a seller exchanges property according to the tax rules governing exchanges, there is not a traditional sale of the property but the successful exchange results in a change in ownership for which the broker earns a commission.

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4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property. A broker may earn a commission under this option if a seller decides to transfer property to an LLC in which the seller is a principal or a seller transfers property to a trust of which the seller is a beneficiary.

5) A buyer is procured for the Property by Broker, by Seller, or by any other person, at no less than the price and on substantially the same terms set forth in this Listing and in the standard provisions of the current WB-11 Residential Offer to Purchase, even if Seller does not accept this buyer’s offer. A broker may earn a commission under this section if a buyer writes what is called a “mirror offer.” That means an offer that mirrors the speci-fications for list price, included and excluded property, and any other provision a seller included in a listing contract. For example, a buyer writes an offer for the listing price or higher with no contingencies and a seller rejects it. Even though the seller rejected it, the broker earned a commission under this section.

Lines 50-58 address how to calculate a commission depending on the way the broker earned it. If the broker earned a commission under 1) or 2), the parties use the purchase price to calculate the commission amount. If the broker earns a commission under 3), 4), or 5), the parties calculate the commission using the list price. If a seller exchanges less than the whole property under 3) or the seller changes ownership or control of less than the whole property under 4), the parties calculate the commission using the fair market value of the portion of the property that the seller exchanged or transferred to the new owner.

When a property has more than one owner, if any owner sells, conveys, exchanges, or options an interest in all or any part of the property to another owner, the listing broker earns a com-mission, unless the transfer is due to a divorce judgment. If a seller decides to sell, option, or exchange part of a listed property, the remaining property stays listed under the terms of the listing contract.

Lines 59-60 Compensation to Others

As a matter of consumer protection, the Department of Safety and Professional Services wants sellers to know how much compensation a listing broker offers to cooperating brokers. Listing brokers should disclose MLS compensation splits, disclose if they have policy let-ter compensation agreements with any brokers, and share copies of agreements if a seller requests details. A listing broker discloses compensation agreements with other brokers on lines 59-60 and if there are exceptions to the listing broker’s compensation agreements, the broker includes those on second part of line 60. A broker’s company policy will dictate how listing agents address offers of compensation to other brokers.

Licensees must be careful when addressing commission questions and policies to avoid an appearance of price-fixing. Broker decisions concerning commissions and fees must be uni-lateral, independent business decisions, made solely within the broker’s office, and without consultation or discussion with anyone from another real estate firm.

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Lines 61-65 Extension of Listing

The concept of protected buyers begins in the Exclusions section on the first page of the listing contract. If a broker has a Protected Buyer according the definition found on lines 220-229, then the Extension of Listing section applies to those buyers. This means that as to those protected buyers, this listing contract is extended for a period of one year. If a protected buyer purchases the property under the listing contract during the extension of listing period, the for-mer listing broker earns a commission even though that listing contract expired. The extension of a broker’s listing as to protected buyers is not state law but is a contractual right created by the preprinted listing contract. Sellers and brokers can negotiate this provision and change the terms by shortening the extension period, limiting who a broker can name as a protected buyer, or other provisions. This protects the listing broker’s right to a commission as to certain buyers for a period up to one year after the listing expired or terminated (line 65). This is not state law but is part of the preprinted contract and may be negotiated. A “Protected Buyer” is a buyer who, during the term of the listing:

1) Delivers to seller or broker a written offer to purchase, exchange or option on the property during the term of this listing;

2) Negotiates directly with seller by discussing with seller the potential terms upon which buyer might acquire an interest in the property; or

3) Attends an individual showing of the property or discusses with a broker or a cooperating broker the potential terms upon which buyer might acquire an interest in the property.

To protect buyers who attended individual showings or discussed with the broker or cooperat-ing broker the potential terms upon which the buyer might acquire an interest in the property, the listing broker must deliver the buyers’ names to the seller, in writing, no later than three days after the expiration of the listing. If a buyer wants to remain confidential, a broker can deliver the name of the broker with whom the buyer negotiated and the date of the showing or any other negotiations.

When taking a new listing, a broker usually asks the seller if the property has been listed before. The new listing broker will ask the seller for a list of the previous broker’s protected buyers and, if the seller does not have the list, the new broker can ask the previous broker for the list. The new listing broker should explain the concept of protected buyers to the seller so that if any of the protected buyers come back to look at the property or negotiate, the seller can refer them to the previous listing broker. A current listing broker does not participate in a transaction if the buyer is a previous broker’s protected buyer. Parties can agree to other arrangements. For example, a previous listing broker may be uninterested or unable to assist a protected buyer with an offer. The previous listing broker may contact the current listing broker and offer to share a portion of the commis-sion if the new listing broker will assist the protected buyer.

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receipt of a written request from Seller or a broker who has listed the Property, Broker agrees to promptly deliver to Sellera written list of those buyers known by Broker to whom the extension period applies. Should this Listing be terminated bySeller prior to the expiration of the term stated in this Listing, this Listing shall be extended for Protected Buyers, on thesame terms, for one year after the Listing is terminated.

TERMINATION OF LISTING: Neither Seller nor Broker has the legal right to unilaterally terminate this Listing absent amaterial breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the Broker

supervising broker. Seller and Broker agree that any termination of this Listing by either party before the date stated online 259 shall be indicated to the other party in writing and shall not be effective until delivered to the other Party in

.marketing efforts and to provide Broker with all records, documents and other material in Seller's possession or controlwhich are required in connection with the sale. Seller authorizes Broker to do those acts reasonably necessary to effecta sale and Seller agrees to cooperate fully with these efforts which may include use of a multiple listing service, Internet

whom Seller negotiates during the term of this Listing and shall promptly refer all persons making inquiries concerning theProperty to Broker.

rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations) thereunderto buyer at closing. Seller acknowledges that Seller remains liable under the lease(s) unless released by tenants.CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under the lease(s)unless released by tenants.

BROKER DISCLOSURE TO CLIENTS: UNDER WISCONSIN LAW, A BROKER OWES CERTAIN DUTIES TO ALL PARTIES TO A TRANSACTION:

The duty to provide brokerage services to you fairly and honestly.

it, unless disclosure of the information is prohibited by law.

BROKER'S CLIENT. A BROKER OWES ADDITIONAL DUTIES TO A CLIENT:

(b) The broker must provide you with all material facts affecting the transaction, not just adverse facts.(c) The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within

the scope of the agency agreement.(d) The broker will negotiate for you, unless you release the broker from this duty.

The broker will not place the broker's interests ahead of your interests. The broker will not, unless required by law, giveinformation or advice to other parties who are not the broker's clients, if giving the information or advice is contrary to yourinterests.

112113 A multiple representation relationship exists if a broker has an agency agreement with more than one client who is a114 party in the same transaction. In a multiple representation relationship, if all of the broker's clients in the transaction115 consent, the broker may provide services to the clients through designated agency.

EXTENSION OF LISTING: The Listing term is extended for a period of one year as to any Protected Buyer. Upon

(firm). Agents (salespersons) for Broker (firm) do not have the authority to enter into a mutual agreement to terminate theListing, amend the commission amount or shorten the term of this Listing, without the written consent of the agent(s)'

accordance with lines 193-198. CAUTION: Early termination of this Listing may be a breach of contract, causing theterminating party to potentially be liable for damages.

SELLER COOPERATION WITH MARKETING EFFORTS: Seller agrees to cooperate with Broker in Broker's

advertising or a lockbox system on Property. Seller shall promptly notify Broker in writing of any potential buyers with

LEASED PROPERTY: If Property is currently leased and lease(s) will extend beyond closing, Seller shall assign Seller's

(a)(b) The duty to exercise reasonable skill and care in providing brokerage services to you.(c) The duty to provide you with accurate information about market conditions within a reasonable time if you request

(d) The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of theinformation is prohibited by law. (See Lines 211-214)

(e) The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidentialinformation or the confidential information of other parties. (See Lines 147-163)

(f) The duty to safeguard trust funds and other property the broker holds.(g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the

advantages and disadvantages of the proposals.BECAUSE YOU HAVE ENTERED INTO AN AGENCY AGREEMENT WITH A BROKER, YOU ARE THE

(a) The broker will provide, at your request, information and advice on real estate matters that affect your transaction, unlessyou release the broker from this duty.

(e)

If you become involved in a transaction in which another party is also the broker's client (a "multiple representation(f)relationship"), different duties may apply.

MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY:

116 Designated agency means that different salespersons employed by the broker will negotiate on behalf of you and the117 other client or clients in the transaction, and the broker's duties will remain the same. Each salesperson will provide

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REAL ESTATE SALES

Seller Sam signed a six-month listing contract with Lamont Realty. When the listing expired, Lamont Realty gave Sam the “protected buyer” list within three days from the expiration of the listing. This list included the names of Tom and Julia Chase. During the Lamont Realty listing, Tom and Julia Chase had an individual showing of the property with the Lamont Realty listing agent. Because the list was delivered within the three days of expiration, these buyers are “protected” for one year from the expiration of the Lamont Realty listing. Two months pass and Seller Sam lists his property with Cline Realty. Seller Sam has seven days to provide Lamont Realty’s list of “pro-tected buyers” to Cline Realty. The Cline Realty agent asks Seller Sam if Lamont Realty gave him a list. Seller Sam tells the Cline Realty agent that he was given a list, but has since lost it. Cline Realty contacts Lamont Realty and requests the list. Lamont Realty immediately faxes the list over. One month into the Cline Realty listing term, Tom and Julia contact the Cline listing agent. The Cline Realty agent refers Tom and Julia Chase back to Lamont Realty. Tom and Julia contact Lamont Realty to write an offer on Seller Sam’s property. If all goes well, Lamont Realty earns the commission and will be paid at closing.

Lines 66-73 Termination of Listing

A listing broker and a seller can mutually agree to terminate a listing contract. The Termination of Listing section also addresses unilateral terminations by one party. Lines 67-68 reaffirms that the parties to the listing are the seller and the broker and that a broker’s agents do not have the authority to enter into a mutual agreement to terminate the listing, amend the commission amount or shorten the term of the listing, without the written consent of the agent’s supervising broker (lines 68-70).

Line 71 requires that a party who wants to terminate early do so in writing and deliver the notice of termination to the other party according to the delivery provisions found at lines 193-198. Termination is not effective until delivery, which is important because it starts the three-day deadline for delivering a protected buyer list and marks the time when the listing broker stops showings and advertising the property. Once the seller delivers a written notice to a broker terminating the listing, the seller can list the property with another broker. The first listing broker does not have additional rights or obligations under the listing contract other than extension of the listing for protected buyers and possible damages for wrongful termination.

If a broker receives written notice from a seller terminating the listing, the broker can ask the seller to sign a WB-42 Amendment to the Listing Contract changing the end date of the con-tract, a WB-45 Cancellation Agreement and Mutual Release, or submit a notice to the seller affirming the termination date of the contract. If a broker uses a WB-45 Cancellation Agreement and Mutual Release to release a seller from a listing contract, the listing broker will lose the right to extend the listing for protected buyers unless the parties modify the cancellation to state otherwise.

Lines 66-67 state that neither party to the listing contract has the legal right to unilaterally termi-nate the listing without a material breach by the other party. Sellers have the power to revoke a listing contract at any time, however there are ramifications to canceling the contract early unless there is a material breach by the broker. In that event, the broker may demand compen-sation for damages sustained as a result of the listing cancellation. The listing broker also has the power to cancel the listing contract and the seller may have a claim for damages owed. A broker may insert language in the listing contract to define what happens in the case of an early

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termination by the client or broker and the amount of damages. Some brokers add provisions to their contracts specifically describing a procedure for the early termination of the listing. If so, as long as the seller follows the contract provisions for termination, the seller may generally cancel the contract without fear of being charged for any damages. That is not the case, however, if the early termination provision calls for an early termination fee or other specified damages.

A broker’s damages might include costs of advertising, reimbursement for other expenses incurred by broker in the process of listing and marketing the property, and the value of services rendered. A broker claiming damages would have to show sufficient proof of the damages. Commission will be due only if the broker can prove that it was earned as stated in the con-tract. If the broker fails to perform according to terms of the listing contract or otherwise fails to act in good faith, then the seller will have the right, not just the power, to terminate the listing contract. If the broker was in breach, the broker cannot claim any damages based upon the early termination.

Lines 74-80 Seller Cooperation with Marketing Efforts

This provides the seller with a description of the seller’s obligations to cooperate with the listing broker. The seller agrees to cooperate with the broker in marketing efforts and to provide the broker with all records, documents, and other materials in seller’s possession or control which the broker needs for the sale of the property. The seller authorizes the broker to do those acts reasonably necessary and seller agrees to cooperate fully with a broker’s efforts to sell the property, which may include using internet or MLS advertising or a lockbox system. Seller shall promptly notify the broker in writing of any potential buyers with whom seller negotiates during the term of the listing and promptly refer all persons making inquiries to the broker. This reiter-ates that sellers should not negotiate with buyers without the broker’s knowledge and should refer interested buyers to the broker.

Lines 81-85 Leased Property

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(e)




When a seller sells leased property, the seller assigns the seller’s rights under the lease to the buyer. This includes security deposits and prepaid rents, which the seller transfers to the buyer at closing. A seller remains liable to the tenants under the lease agreement for any obligations created by the lease. Often property owners will include a clause in a lease stating that in the event of a sale or transfer of title to the property, the tenants will release the property owner from liability stemming from the lease. If a property owner does not secure this release, either through a provision in the lease or a separate indemnification agreement, the seller will remain bound by the terms of the lease.

Lines 86-163 Broker Disclosure to Clients Lines 86-163 directly relates to the mandatory disclosure language required by the state of Wisconsin discussed in Chapter 1. This section includes the duties owed to all parties, the addi-tional duties owed to a client, the mandatory confidentiality notice, an explanation of multiple

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representation relationships and lines 129-131 for the client to indicate the agency model for the broker’s participation. Lines 164-168 Real Estate Condition Report

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negotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if theinformation, opinions, or advice gives the client advantages in the negotiations over the broker's other clients. Asalesperson will not reveal any of your confidential information to another party unless required to do so by law.

you authorize a multiple representation relationship the broker may provide brokerage services to more than one clientin a transaction but neither the broker nor any of the broker's salespersons may assist any client with information,

transaction.INITIAL ONLY ONE OF THE THREE LINES BELOW:

NOTE: YOU MAY WITHDRAW YOUR CONSENT TO DESIGNATED AGENCY OR TO MULTIPLEREPRESENTATION RELATIONSHIPS BY WRITTEN NOTICE TO THE BROKER AT ANY TIME. YOUR BROKER ISREQUIRED TO DISCLOSE TO YOU IN YOUR AGENCY AGREEMENT THE COMMISSION OR FEES THAT YOU

MAY OWE BASED UPON THE TYPE OF AGENCY RELATIONSHIP YOU SELECT WITH YOUR BROKER YOUSHOULD ASK YOUR BROKER BEFORE SIGNING THE AGENCY AGREEMENT.

broker by providing brokerage services for your benefit. A subagent will not put the subagent's own interests ahead of yourinterests. A subagent will not, unless required by law, provide advice or opinions to other parties if doing so is contrary toyour interests. PLEASE REVIEW THIS INFORMATION CAREFULLY. A broker or salesperson can answer your questions aboutbrokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact anattorney, tax advisor, or home inspector. This disclosure is required by section 452.135 of the Wisconsin statutesand is for information only. It is a plain language summary of a broker's duties to you under section 452.133 (2) of

or any information obtained by Broker that he or she knows a reasonable person would want to be kept confidential, unless

confidential.

Broker to the best of Seller's knowledge. Seller agrees to amend the report should Seller learn of any defect(s) aftercompletion of the report but before acceptance of a buyer's offer to purchase. Seller authorizes Broker to distribute the

and/or theft involving persons attending an "individual showing" or an "open house." Seller accepts responsibility forpreparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees tohold Broker harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during

178 "individual showings" or "open houses" other than those caused by Broker's negligence or intentional wrongdoing.179 Seller acknowledges that individual showings and open houses may be conducted by licensees other than Broker, that180181 licensees, and that buyers or licensees may be present at all inspections and testing and may photograph or videotape182 Property unless otherwise provided for in additional provisions at lines 242-250 or in an addendum per lines 251-254.

information, opinions, and advice to the client for whom the salesperson is negotiating, to assist the client in the

opinions, and advice which may favor the interests of one client over any other client. If you do not consent to a multiplerepresentation relationship the broker will not be allowed to provide brokerage services to more than one client in the

I consent to designated agency.I consent to multiple representation relationships, but I do not consent to designated agency.

MAY OWE TO YOUR BROKER. IF YOU HAVE ANY QUESTIONS ABOUT THE COMMISSION OR FEES THAT YOU

SUBAGENCY: The broker may, with your authorization in the agency agreement, engage other brokers who assist your

the Wisconsin statutes.

the information must be disclosed by law or you authorize Broker to disclose particular information. Broker shall continue tokeep the information confidential after Broker is no longer providing brokerage services to you.The following information is required to be disclosed by law:

Material adverse facts, as defined in section 452.01 (5g) of the Wisconsin statutes (lines 211-214).1)Any facts known by the Broker that contradict any information included in a written inspection report on the property or real estate that is the subject of the transaction.

To ensure that the Broker is aware of what specific information you consider confidential, you may list that informationbelow (see lines 158-160). At a later time, you may also provide the Broker with other information you consider to be

CONFIDENTIAL INFORMATION:

report to all interested parties and agents inquiring about the Property. Seller acknowledges that Broker has a duty todisclose all material adverse facts as required by law.

SELLER REPRESENTATIONS REGARDING DEFECTS: Seller represents to Broker that as of the date of thisListing, Seller has no notice or knowledge of any defects affecting the Property other than those noted on the real estatecondition report. WARNING: IF SELLER REPRESENTATIONS ARE INCORRECT OR INCOMPLETE, SELLER MAY BE LIABLE FORDAMAGES AND COSTS.

appraisers and inspectors may conduct appraisals and inspections without being accompanied by Broker or other

If a designated agency relationship is not in effect you may authorize or reject a multiple representation relationship. If

I reject multiple representation relationships.

CONFIDENTIALITY NOTICE TO CLIENTS: Broker will keep confidential any information given to Broker in confidence,

2)

.NON-CONFIDENTIAL INFORMATION (The following may be disclosed by Broker):

.REAL ESTATE CONDITION REPORT: Seller agrees to complete the real estate condition report provided by

OPEN HOUSE AND SHOWING RESPONSIBILITIES: Seller is aware that there is a potential risk of injury, damage

Lines 169-173 Seller Representations Regarding Defects

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confidential.




















2)



OPEN HOUSE AND SHOWING RESPONSIBILITIES: Seller is aware that there is a potential risk of injury, damageThese two sections directly relate to the Chapter 709, Disclosure by Owners of Real Estate that establishes seller disclosure obligations relating to real estate. The Real Estate Condition Report (RECR) and seller representations are discussed in Chapter 4.

Lines 174-182 Open House and Showing Responsibilities

A seller is responsible for preparing a property for an individual showing or open house to minimize the likelihood of personal injury, property damage, or theft. This includes securing valuables, prescription drugs, and eliminating safety hazards. Brokers are liable for their own acts of negligence or intentional wrongdoing. Before any open house or showing, an agent should always inspect the premises for hazards and warn people entering the home of any potential problems. For example, a broker may be liable for not cleaning up a spill that caused a potential buyer to slip and fall. A broker may also be liable for not warning potential buyers of a known or dangerous condition existing on the property, such as a shaky handrail or an icy front walk.

Line 181 informs the seller that buyers have the right to photograph or videotape property unless otherwise provided for in the additional provisions or an addendum to the listing contract. Line 181 also permits buyers or licensees to be present at all inspections and testing of the property, such as a home inspection. Lines 183-229 DefinitionsThe listing contract contains definitions relating to the terms and provisions used within the contract.

Lines 191-192 Deadlines-Days

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191


192193


194


This defines the term “days” and how to calculate deadlines by excluding the day the event occurs and counting subsequent calendar days. For example, if a listing contract expires on June 1 and the listing broker must provide the list of protected buyers within three days of the expiration, June 2 is Day 1, June 3 is Day 2, and June 4 is Day 3. A broker must provide the list by midnight on June 4 to effectively extend the listing for those buyers.

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confidential.




















2)



OPEN HOUSE AND SHOWING RESPONSIBILITIES: Seller is aware that there is a potential risk of injury, damage

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Lines 193-198 Delivery

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191


192193


194


E-mail delivery is not a pre-printed method of delivery in the listing contract. A broker and a seller can agree to e-mail delivery by including it as an additional provision. To use e-mail as a form a delivery, a contract must include agreement from the parties to par-ticipate in e-mail delivery for all documents and the parties need to first consent electronically by e-mail to participate in e-commerce. Licensees should check with company policy before participating in e-commerce and can go to www.wra.org/ecommerce for additional information on using e-mail as a form of delivery and state and federal legal requirements for electronic transactions.

Lines 230-233 Fair Housing

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191


192193


194


Chapter 5 covers fair housing law and state and federal protected classes of people for the pur-poses of fair housing. A broker must educate a seller that brokers cannot discriminate in adver-tising or treatment of potential buyers and will terminate a listing with a discriminatory seller.

Lines 234-241 Earnest Money

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192193


194


If the listing broker is holding earnest money, the seller authorizes the broker to disburse earnest money held in the trust account “as directed in a written earnest money disbursement agree-ment signed by or on behalf of all parties having an interest in the trust funds.” The existing offer lists different means for disbursing earnest money under Wis. Admin. Code § REEB 18.09. The seller’s authorization in the listing contract seems narrow and does not describe the vari-ous ways that a broker can disburse earnest money depending on what happens in a purchase transaction. Wis. Admin. Code § REEB 18.09 provides other options for a broker to disburse earnest money if the parties cannot agree in writing to a disbursement agreement. Chapter 10 covers earnest money and when a broker can disburse it in a purchase transaction and Chapter 14 covers the rules on earnest money and a broker’s trust account. In most transactions, the listing broker holds earnest money in the listing broker’s trust account when a buyer includes earnest money with an offer. If a broker disburses earnest money to a seller, lines 237-241 of the listing contract give the broker the right to first receive reimburse-ment for cash advances made on behalf of the seller and one-half of the remaining earnest money balance not to exceed the amount of commission the broker would have received if the transaction closed. Payment of the money to the broker does not terminate the listing.

54

REAL ESTATE SALES

For example, if a transaction failed to close because the buyer breached the sales contract, one of the seller’s remedies is to keep the earnest money and forfeit the right to sue the buyer for any additional damages. The listing broker may be able to claim a portion of that money for the cash advances made on behalf of the seller and up to one-half of the remaining balance but not to exceed what the broker’s commission would have been had the buyer not breached and the transaction closed.

Lines 242-250 Additional ProvisionsThe blank lines on 242-250 are for the seller and the listing broker to include any other informa-tion that they want to include in the contract such as special advertising conditions, requirements of the seller, or restrictions on presenting offers. For example, no yard signs, mortgage information for assuming a mortgage, disclosure that the listing agent is the child of seller, or instructing a listing agent to not present offers below a percentage of the listing price.

Lines 251-254 AddendaIf the licensee’s company or the seller has an addendum, such as a survey of the property, this seller and the listing broker make it a part of the listing contract by referencing it here and attaching it to the listing contract.

Lines 255-257 Notice About Sex Offender Registry

This notice permits licensees to satisfy disclosure obligations regarding sex offenders by pro-viding the Department of Corrections’ telephone number and internet address in writing when asked about the presence of sex offenders. Chapter 4 covers this and other disclosure obliga-tions.

Lines 258-259 Term of the Contract

The term is the length of the listing contract. The term does not always begin on the date a listing contract is signed. If the seller and the listing broker execute a listing contract before the term of the listing actually begins, the broker does not start representing the seller as a client until the term of the listing contract begins. For example, a broker and a seller could sign a listing contract on June 15, 2012 for a listing to begin July 1, 2012. They fill in the term of the contract section so that it reads “From the 1st day of July, 2012 up to an including mid-night on the 1st day of December 2012.

Lines 260-262 Reading/Receipt

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persons registered with the registry by contacting the Wisconsin Department of Corrections on the Internet athttp://www.widocoffenders.org

OTHER DOCUMENTS INCORPORATED INTO THE LISTING.

Seller's Signature

LISTING CONTRACT AND THAT HE/SHE HAS READ ALL FIVE PAGES AS WELL AS ANY ADDENDA AND ANY

ADDITIONAL PROVISIONS:

ADDENDA: The attached addenda

NOTICE ABOUT SEX OFFENDER REGISTRY: You may obtain information about the sex offender registry andis/are made part of this Listing.

or by telephone at (608)240-5830.TERM OF THE CONTRACT: From the day of , ,

up to and including midnight of the day of , .

READING/RECEIPT: BY SIGNING BELOW, SELLER ACKNOWLEDGES RECEIPT OF A COPY OF THIS

(x)Print Name Here: Date

Seller's Address Seller's Phone #

Seller's Fax # Seller's E-Mail Address

(x)269Seller's Signature Print Name Here:270 Date

271272 Seller's Address Seller's Phone #

273Seller's Fax # Seller's E-Mail Address274

(x)275Agent for Broker Print Name Here:276 Date

277278 Broker/Firm Address Broker/Firm Phone #

279Broker/Firm Fax # Broker/Firm E-Mail Address280

Broker/Firm Name

This provision informs the seller that by signing the contract, the seller acknowledges receipt of a copy of the contract and reviewed all five pages and any other documents attached to the listing contract that are properly incorporated.

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Seller's Signature

















Broker/Firm Name

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Lines 263-280 Signatures and Contact Information

The agent for the broker signs on behalf of the broker. Wis. Stat. §240.10(1) states that for a valid agency agreement, the agreement must be signed by the person agreeing to pay such commission, which is usually the seller but may not be in all cases. A real estate contract is signed if the contract includes any handwritten signature or symbol intended by the person affix-ing the signature or symbol to be an execution of the conveyance. The addresses and fax numbers provided authorize delivery. Even though there is a blank line for the seller’s e-mail address, the completion of that line does not authorize e-mail delivery of documents required to be in writing under the law such as listing contracts, amendments, real estate condition reports, or lead-based paint attachments. If the seller and listing broker want to use e-mail as a form of delivery for the listing contract, they must include an addendum adding e-mail as a form of delivery and the seller must consent electronically via e-mail.

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REAL ESTATE SALES

WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACTThe condominium listing contract is based on the WB-1 Residential Listing Contract. The condo-minium listing contract contains features unique to the sale of condominiums. Licensees should review the condominium declaration and other condominium documents to see what will make up the total property being offered for sale. This will usually include the unit, common elements, limited common elements, and a seller should also list monthly assessment payments and other services and amenities that may involve separate charges.

Lines 2-9 Property Description

On lines 4-5, the listing broker inserts the unit number or identifying information, the building in which the unit is located,and the name of the condominium. 456 Right Here Avenue in the city of Madison, County of Dane, Unit #601 (Building A) of The Riverfront Condominium.

Lines 5-9 clarifies that in addition to the unit, the property also includes the seller’s interest in the common elements appurtenant to the Unit, together with and subject to the rights, inter-ests, obligations and limitations as set forth in the declaration and condominium plat (and all amendments to them).

Lines 11-19 Property Included/Not Included in List Price

The definition of fixtures is on lines 266-277. A seller lists personal property the seller wants to include in the list price on lines 13-14 and items the seller does not want to include on lines 16-19. Items the seller does not want to include are usually fixtures that a seller wants to remove from the property.

The list price also includes the seller’s interest in any common surplus and reserves of the condominium allocated to the unit and all fixtures not excluded on lines 16-19. The common surplus and reserves are often association property and used to offset common expenses or improvements. Association dues already paid by an owner usually remain with the association unless the condominium documents declare otherwise.

1

WB-4 RESIDENTIAL CONDOMINIUM LISTING CONTRACT - EXCLUSIVE RIGHT TO SELL

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SELLER GIVES BROKER THE EXCLUSIVE RIGHT TO SELL THE PROPERTY ON THE FOLLOWING TERMS:PROPERTY DESCRIPTION: The street address of the Unit is:

ofin the

elements appurtenant to the Unit, together with and subject to the rights, interests, obligations and limitations as set

LIST PRICE: ).Dollars ($INCLUDED IN LIST PRICE: Seller is including in the list price the Property, Seller's interests in any common surplus

items:.

NOT INCLUDED IN LIST PRICE: CAUTION: Identify Fixtures to be excluded by Seller or which are rented and willcontinue to be owned by the lessor. (See lines 266-277):

.

Seller agrees that Broker may market Seller's personal property identified on lines 13-14 during the term of this Listing.Broker's marketing may include:


. Seller has a duty to cooperate with Broker's marketingefforts. See lines 88-106 regarding Broker's role as marketing agent and Seller's duty to notify Broker of any potential

common elements at time of closing and to have the Unit in broom swept condition and free of all debris and personalproperty except for personal property belonging to current tenants, sold to buyer or left with buyer's consent.

COOPERATION, ACCESS TO PROPERTY OR OFFER PRESENTATION: The parties agree that Broker will workand cooperate with other brokers in marketing the Property, including brokers from other firms acting as subagents(agents from other companies engaged by Broker - See lines 194-197) and brokers representing buyers. Cooperationincludes providing access to the Property for showing purposes and presenting offers and other proposals from thesebrokers to Seller. Note any brokers with whom Broker shall not cooperate, any brokers or buyers who shall not beallowed to attend showings, and the specific terms of offers which should not be submitted to Seller:


EXCLUSIONS: All persons who may acquire an interest in the Property as a Protected Buyer under a prior listingcontract are excluded from this Listing to the extent of the prior broker's legal rights, unless otherwise agreed to inwriting. Within seven days of the date of this Listing, Seller agrees to deliver to Broker a written list of all suchprospective buyers. The following other buyers are excluded from this Listing until :

. These other buyers are no longer

COMMISSION: Broker's commission shall be .


MARKETING: Seller authorizes and Broker agrees to use reasonable efforts to procure a buyer for the Property.

OCCUPANCY: Unless otherwise provided, Seller agrees to give buyer occupancy of the Unit and any limited

, County, Wisconsin, particularly described as Unit: (Building )

of Condominium; Seller's interest in the common

forth in the declaration and condominium plat (and all amendments to them) creating the Condominium, whichaltogether constitute the Property. Insert additional description, if any, at lines 309-322 or attach as an addendum perlines 323-328.

and reserves of the Condominium allocated to the Property, Fixtures not excluded on lines 16-19, and the following

STORAGE UNIT: A storage unit (is) (is not) .LIMITED COMMON ELEMENTS: The limited common elements assigned to the Unit include:

. See condominium declaration for complete list.PARKING: The parking for the Property is .. The parking fee is $ASSOCIATION FEE: The association fee for the Property is $ per .RIGHT OF FIRST REFUSAL: The condominium association (does) (does not)

refusal on the Property.

buyer known to Seller. Seller agrees that Broker may market other properties during the term of this Listing.

excluded from this Listing after the specified date unless, on or before the specified date, Seller has either accepted anoffer from the buyer or sold the Property to the buyer.

STRIKE ONE included in the List Price; Unit number:

STRIKE ONE have a right of first

INSERT DATE

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INSERT DATE

57


Line 20 Storage Unit

A seller uses this line to indicate if the unit includes a storage unit. If the seller is unsure, the seller can check the condominium declaration, which should clearly state whether the unit includes a storage unit.

Lines 21-22 Limited Common Elements

The seller lists any fixtures outside of the unit that the seller is including in the sale. For exam-ple, the unit may include a privacy fence, an awning, or a patio. A seller lists those items on lines 22-21. The condominium declaration will contain a complete list of the limited common elements. Line 23 Parking

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INSERT DATE

Some condominiums require owners to purchase parking spaces separately or lease them from the association where others include them as part of the unit or a limited common element. In the first blank space on line 23, a seller indicates whether there is parking and identifies the space. In the second blank space on line 23, the seller indicates what the fee for parking is, if there is one. The parking fee may be a one time fee paid when the seller purchases the condominium unit or it may be a recurring fee like condominium association fees.

Line 24 Association Fee

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Condominium associations levy assessments or set the amount that each owner owes for the payment of the condominium’s common expenses. Owners usually pay the fees on a monthly basis although some condominiums charge fees quarterly or on another schedule. For example, an association may charge a fee of $250 per month.

Lines 25-26 Right of First Refusal

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If a association holds a right of first refusal, the association will have the first right to buy the unit on the terms and conditions that a bona-fide third-party buyer submits. Often, the associa-tion will have to match the price, terms, and conditions of the third-party buyer’s offer. When a buyer submits an offer to seller where the association has a right of first refusal, the association will meet and decide whether the association wants to match the terms of the buyer’s offer and purchase the unit or let the prospective buyer purchase the unit. When an association has a right of first refusal, the seller must disclose this to potential buyers in writing before the buyer submits an offer. If a seller does not know if the association holds this right, the seller can review the condominium declaration and contact the association to see if they hold a right of first refusal. A seller can share the terms of a right of first refusal with potential buyers.

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INSERT DATE

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INSERT DATE

58

REAL ESTATE SALES

Lines 88-106 Seller Cooperation with Marketing EffortsOn lines 90-99, the seller agrees to give the listing broker copies of documents in addition to the condominium disclosure materials that the seller gives to a buyer. Most lenders and title com-panies request a statement of any unpaid assessments on the unit. The buyer is not liable for any unpaid assessment against the seller in excess of the amount reported by the association on this statement. If the association or the association board of directors does not provide the statement within 10 business days of the buyer’s request, the association cannot file any addi-tional assessment liens for any unpaid assessments following the day of the buyer’s request.

Lines 107-136 Condominium Disclosure Materials

Sellers must provide a copy of the condominium disclosure materials within 10 days of accept-ing an offer and no later than 15 days prior to closing. Chapter 4 covers condominium dis-closure obligations and documents. This section provides a list of all the required disclosure documents. Sellers can work with the condominium association to locate the documents and, if the seller cannot provide all of the required documents, the seller should consult an attorney for advice on how to proceed in the transaction. A listing broker may want to use a provision in the listing contract to allocate responsibility for review or delivery of the condominium documents to the seller and the seller’s attorney. If a buyer is going to have an attorney review condo-minium documents, the buyer may want to designate the buyer’s attorney as recipient for the documents to provide the attorney with the maximum amount of time to review before a buyer’s five-day right to rescind the offer based on the contents of the condominium documents expires.

Lines 222-233 Real Estate Condition ReportLines 228-230 add, “When the Property is a condominium unit, the property to which the real estate condition report applies is the condominium unit, the common elements and any limited common elements that may be used only by the owner of the condominium unit being trans-ferred.”


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receipt of a written request from Seller or a broker who has listed the Property, Broker agrees to promptly deliver toSeller a written list of those buyers known by Broker to whom the extension period applies. Should this Listing beterminated by Seller prior to the expiration of the term stated in this Listing, this Listing shall be extended for ProtectedBuyers, on the same terms, for one year after the Listing is terminated.

TERMINATION OF LISTING: Neither Seller nor Broker has the legal right to unilaterally terminate this Listing absenta material breach of contract by the other party. Seller understands that the parties to the Listing are Seller and the

the agent(s)' supervising broker. Seller and Broker agree that any termination of this Listing by either party before thedate stated on line 333 shall be indicated to the other party in writing and shall not be effective until delivered to the

marketing efforts and to provide Broker with all records, documents and other material in Seller's possession or control

112113114115


Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to enter into a mutual agreement toterminate the Listing, amend the commission amount or shorten the term of this Listing, without the written consent of

other Party in accordance with lines 260-265. CAUTION: Early termination of this Listing may be a breach of contract,causing the terminating party to potentially be liable for damages.


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Seller shall pay Broker's commission, which shall be earned, if, during the term of this Listing:1) Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the Property;2) Seller grants an option to purchase all or any part of the Property which is subsequently exercised;3) Seller exchanges or enters into a binding exchange agreement on all or any part of the Property;4) A transaction occurs which causes an effective change in ownership or control of all or any part of the Property; or5) A buyer is procured for the Property by Broker, by Seller, or by any other person, at no less than the price and on

substantially the same terms set forth in this Listing and in the standard provisions of the current WB-14RESIDENTIAL CONDOMINIUM OFFER TO PURCHASE, even if Seller does not accept this buyer's offer. (Seelines 282-285 regarding procurement.)

A percentage commission, if applicable, shall be calculated based on the purchase price if commission is earnedunder 1) or 2) above, or calculated based on the list price under 3), 4) or 5). A percentage commission shall becalculated on the fair market value of the Property exchanged under 3) if the exchange involves less than the entireProperty or on the fair market value of the Property to which an effective change in ownership or control takes place,under 4) if the transaction involves less than the entire Property. Once earned, Broker's commission is due andpayable in full at the earlier of closing or the date set for closing, unless otherwise agreed in writing. Broker'scommission shall be earned if, during the term of the Listing, one owner of the Property sells, conveys, exchanges oroptions an interest in all or any part of the Property to another owner, except by divorce judgment.NOTE: A sale, option, exchange or procurement of a buyer for a portion of the Property does not terminate the Listingas to any remaining Property.

which are required in connection with the sale, including, but not limited to, copies of the condominium association'scondominium disclosure materials as described in lines 107-136. The Buyer may also request the following:1) the condominium association's financial statements for the last two years,2) the minutes of the last unit owner's meetings,3) the minutes of condominium board meetings during the 12 months prior to acceptance,4) information about contemplated or pending condominium special assessments,5) copies of the association's certificate of insurance,6) a statement from the association indicating the balance of reserve accounts controlled by the association,7) a statement from the association of the amount of any unpaid assessments on the unit (per Wis. Stat. § 703.165)

and;8) the declaration and bylaws of the master association, if any, so Seller should be prepared to also provide these

items.Seller authorizes Broker to do those acts reasonably necessary to effect a sale and Seller agrees to cooperate fullywith these efforts which may include obtaining condominium disclosure materials at Seller's expense (see Wis. Stat. §703.20(2)), use of a multiple listing service, Internet advertising or a lockbox system on Property. Seller shall promptlynotify Broker in writing of any potential purchasers with whom Seller negotiates during the term of this Listing and shallpromptly refer all persons making inquiries concerning the Property to Broker.

CONDOMINIUM DISCLOSURE MATERIALS: Seller agrees to provide buyer with complete, current and accuratecopies of the condominium disclosure materials required by Wis. Stat. § 703.33. The condominium disclosurematerials are required to be delivered to buyer no later than 15 days prior to closing. The condominium disclosurematerials include a copy of the following and any amendments to any of these (except as limited for smallcondominiums per Wis. Stat. § 703.365):

a) proposed or existing declaration, bylaws and any rules or regulations, and an index of the contents,b) proposed or existing articles of incorporation of the association, if it is or is to be incorporated,c) proposed or existing management contract, employment contract or other contract affecting the use,maintenance or access of all or part of the condominium,d) projected annual operating budget for the condominium including reasonable details concerning the estimatedmonthly payments by the purchaser for assessments and other monthly charges,e) leases to which unit owners or the association will be a party,f) general description of any contemplated expansion of condominium including each stage of expansion and themaximum number of units that can be added to the condominium,g) unit floor plan showing location of common elements and other facilities available to unit owners,


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h) the executive summary.If the condominium was an occupied structure prior to the recording of the condominium declaration, it is a "conversioncondominium," and the "condominium disclosure materials" for a conversion condominium with five or more units alsoinclude:1) a declarant's statement based on an independent engineer's or architect's report describing the present condition

of structural, mechanical and electrical installations;2) a statement of the useful life of the items covered in 1), unless a statement that no representations are being made

is provided, and3) a list of notices of uncured code or other municipal violations, including an estimate of the costs of curing the

violations.If the disclosure materials are delivered to Buyer and Buyer does not receive all of the disclosure documents, Buyermay, within 5 business days of Buyer's receipt of the disclosure materials, either rescind the Offer or request anymissing documents. Seller has 5 business days following receipt of Buyer's request for missing documents to deliverthe requested documents. Buyer may rescind the sale within 5 business days of the earlier of Buyer's receipt ofrequested missing documents or the deadline for Seller's delivery of the documents [Wis. Stat. § 703.33(4)(b)].

LEASED PROPERTY: If Property is currently leased and lease(s) will extend beyond closing, Seller shall assignSeller's rights under the lease(s) and transfer all security deposits and prepaid rents (subject to agreed upon prorations)thereunder to buyer at closing. Seller acknowledges that Seller remains liable under the lease(s) unless released bytenant(s). CAUTION: Seller should consider obtaining an indemnification agreement from buyer for liabilities under thelease(s) unless released by tenants.

BROKER DISCLOSURE TO CLIENTS: UNDER WISCONSIN LAW, A BROKER OWES CERTAIN DUTIES TO ALL PARTIES TO A TRANSACTION:(a) The duty to provide brokerage services to you fairly and honestly.(b) The duty to exercise reasonable skill and care in providing brokerage services to you.(c) The duty to provide you with accurate information about market conditions within a reasonable time if you request

it, unless disclosure of the information is prohibited by law.(d) The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the

information is prohibited by law. (See Lines 278-281)(e) The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential

information or the confidential information of other parties. (See Lines 203-221)(f) The duty to safeguard trust funds and other property the broker holds.(g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the


BROKER'S CLIENT. A BROKER OWES ADDITIONAL DUTIES TO A CLIENT:(a) The broker will provide, at your request, information and advice on real estate matters that affect your transaction,

unless you release the broker from this duty.(b) The broker must provide you with all material facts affecting the transaction, not just adverse facts.

The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within(c)the scope of the agency agreement.

(d) The broker will negotiate for you, unless you release the broker from this duty.(e) The broker will not place the broker's interests ahead of your interests. The broker will not, unless required by law, give

information or advice to other parties who are not the broker's clients, if giving the information or advice is contrary to yourinterests.If you become involved in a transaction in which another party is also the broker's client (a "multiple representation(f)relationship"), different duties may apply.

MULTIPLE REPRESENTATION RELATIONSHIPS AND DESIGNATED AGENCY:A multiple representation relationship exists if a broker has an agency agreement with more than one client who is aparty in the same transaction. In a multiple representation relationship, if all of the broker's clients in the transactionconsent, the broker may provide services to the clients through designated agency.Designated agency means that different salespersons employed by the broker will negotiate on behalf of you and theother client or clients in the transaction, and the broker's duties will remain the same. Each salesperson will provideinformation, opinions, and advice to the client for whom the salesperson is negotiating, to assist the client in thenegotiations. Each client will be able to receive information, opinions, and advice that will assist the client, even if theinformation, opinions, or advice gives the client advantages in the negotiations over the broker's other clients. Asalesperson will not reveal any of your confidential information to another party unless required to do so by law.If a designated agency relationship is not in effect you may authorize or reject a multiple representation relationship.If you authorize a multiple representation relationship the broker may provide brokerage services to more than oneclient in a transaction but neither the broker nor any of the broker's salespersons may assist any client withinformation, opinions, and advice which may favor the interests of one client over any other client. If you do notconsent to a multiple representation relationship the broker will not be allowed to provide brokerage services to morethan one client in the transaction.

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WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENTExcept for exchanging the word “buyer” for “seller,” several sections of the WB-36 Buyer Agency Agreement are the same as the WB-1 Listing Contract. Due to the similarities, only sections that differ from the Listing Contract are covered.

Lines 1-5 Broker the Sole Authority to Act for Buyer as a Buyer’s Agent

A buyer gives a broker the exclusive right as the buyer’s agent to locate and negotiate the pro-curement of an interest in property. No other party can act as the buyer’s agent for properties covered by a WB-36 Buyer Agency agreement. For example, a buyer can use one WB-36 Buyer Agency agreement to hire a broker to look for residential proper-ties in the Fox Valley and another WB-36 Buyer Agency agreement to hire a different broker to look for vacation properties in Door County or for a commercial property in Milwaukee.

Modifying the WB-36 Agency Agreement to Create Different Business Models1) Exclusive Right-to-Locate-and-Negotiate: Strike “to act as buyer’s agent” on line 2.2) Exclusive Right-to-Locate: Strike “and to negotiate the procurement of an interest in prop-

erty” on lines 2-3.3) Exclusive Right-to-Negotiate: Strike “to locate an interest in property and” on line 2.

Lines 6-9 Note

WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT



BROKER THE SOLE AUTHORITY TO ACT FOR BUYER AS A BUYER'S AGENT: Buyer (see lines 154-155) gives123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051

Broker the exclusive right to act as Buyer's agent to locate an interest in property and to negotiate the procurement of aninterest in property, except as excluded under lines 11-20. Except for excluded properties described in lines 11-20, Buyeragrees that during the term of this Agreement, Buyer will not enter into any other agreements to retain any other buyer'sagent.NOTE: IF BUYER WORKS WITH OWNER OR AGENTS OF OWNER IN LOCATING AND/OR NEGOTIATING AN

INTEREST IN PROPERTY, BUYER MAY BE RESPONSIBLE FOR BROKER'S FULL COMPENSATION IFBUYER'S CONTACTS WITH OWNER OR OWNER'S AGENT RESULT IN NO COMPENSATION BEINGRECEIVED BY BROKER FROM OWNER OR OWNER'S AGENT.

PURCHASE PRICE RANGE: EXCLUDED PROPERTIES: The following properties are excluded from this Agreement until INSERT DATE

Note: Identify any specific excluded properties or limitations on the scope of this Agreement including geographiclimitations, or limitations on property type included under this Agreement.

COMPENSATION: Broker's compensation shall be: [Check "SUCCESS FEE", "OTHER COMPENSATION", OR BOTH, as applicable] SUCCESS FEE: % of the purchase price orwhichever is greater. OTHER COMPENSATION:

INSERT THE AMOUNT AND TYPE OF OTHER FEE, E.G. RETAINER FEE, OR HOURLY FEEIf this Agreement calls for a success fee, it is agreed that Broker has earned the success fee if, during the term of thisAgreement (or any extension of it), Buyer or any person acting on behalf of Buyer acquires an interest in property or entersinto an enforceable written contract between owner and Buyer to acquire an interest in property, at any terms and priceacceptable to owner and Buyer. Broker's compensation remains due and payable if an enforceable written contract enteredinto by Buyer per lines 26-29 fails to close. Once earned, Broker's compensation is due and payable at the earlier of closingor the date set for closing, unless otherwise agreed in writing.

STRIKE ONEcompensation from owner or owner's agent if neither is struck.) Broker's compensation from Buyer will be reduced by anyamounts received from owner or owner's agent.

BROKER'S DUTIES: In consideration for Buyer's agreements, Broker agrees to use professional knowledge andskills, and reasonable efforts, to: 1) locate an interest in property, unless Broker is being retained solely to negotiate theprocurement of an interest in a specific property, and 2) negotiate the procurement of an interest in property, as required,by giving advice to Buyer within the scope of Broker's license, facilitating or participating in the discussions of the termsof a potential contract, completing appropriate contractual forms, presenting either party's contractual proposal with anexplanation of the proposal's advantages and disadvantages and other efforts including but not limited to the following:

unless Broker is retained solely to locate an interest in property.EARNEST MONEY: If Broker holds trust funds in connection with the transaction, they shall be retained by Broker in

Broker's trust account. Broker may refuse to hold earnest money or other trust funds. Should Broker hold the earnest money,Buyer authorizes Broker to disburse the earnest money as directed in a written earnest money disbursement agreement signedby all parties having an interest in the trust funds. If the transaction fails to close and the earnest money is disbursed to Buyer,then upon disbursement to Buyer the earnest money shall be paid first to reimburse Broker for cash advances made by Brokeron behalf of Buyer.

NON DISCRIMINATION: Buyer and Broker agree that they will not discriminate based on race, color, sex, sexualorientation as defined in Wisconsin Statutes §111.32(13m), disability, religion, national origin, marital status, lawfulsource of income, age, ancestry, familial status or in any other unlawful manner.

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Broker (may) (may not) accept compensation from owner or owner's agent. (Broker may accept

This note informs a buyer that the buyer will owe the broker’s success fee if the buyer acquires an interest in a property covered by the agreement even if the buyer works with other agents or without an agent.

Line 10 Purchase Price
















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Because a buyer does know usually know the exact price of a property that the buyer will even-tually purchase, this information is usually stated as a range.

For example, a buyer may put $250,000 to $275,000 on this line to reflect that the buyer is shopping in that range. .
















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60

REAL ESTATE SALES

Lines 11-20 Excluded Properties

When a buyer uses a WB-36 to hire a broker to look for property, the buyer usually does not describe a property for which the broker should act for the buyer. Usually, a buyer use a WB-36 Buyer Agency agreement to apply to all properties, except those excluded by the buyer in the Excluded Properties section. If a buyer acquires a property listed in the Excluded Properties section, the buyer does not owe the broker a success fee. If a buyer’s agent is aware that a buyer has seen a property before entering into a buyer agency agreement, the buyer’s agent should discuss potential commission issues that might arise if the buyer purchases a property that the buyer saw with another broker. If the buyer did not exclude that property from the agency agreement, the buyer might owe a success fee to the buyer’s bro-ker, even though the broker did not assist in negotiating or locating that particular property. A buyer’s broker could suggest that the buyer exclude properties seen with another broker before the parties executed the buyer agency agreement. Excluded Properties might include: Properties seen with a different buyer’s broker: A buyer may exclude these properties because the buyer previously negotiated with the owner of the property, or had seen the prop-erty with a different buyer’s broker. The property may be a “protected property,” for the previous broker. Properties seen with a subagent of a listing broker: If a buyer previously looked at a prop-erty with an agent of the listing broker or subagent of the listing broker, the buyer might exclude those properties to avoid paying a success fee to a buyer’s broker for properties that the buyer located without the assistance of a broker. If a buyer saw the property with a licensee in a licensee’s capacity as an agent for the listing broker or a subagent of the listing broker but now the buyer wants to execute a buyer agency agreement with the licensee, the licensee would need to disclose this to the seller and the listing broker because the licensee’s loyalty in the transaction is shifting from the seller to the buyer.

For example, a buyer calls Broker Becky and asks to look at a property at 715 Bucky Road, which is listed with Broker Blue. When the Becky shows the property to the buyer, she is a subagent of the listing broker. The buyer likes the property and wants to write an offer on the property using Becky as a buyer’s agent. Becky and the buyer execute a buyer agency agreement but Becky must notify Blue of the changed circumstances. Without an agency agreement, Becky would be a subagent of the listing broker and loyal to the seller, but when Becky and the buyer execute a buyer agency agreement, Becky is now loyal to the buyer, who is Becky’s client.

Properties under contract: If a buyer negotiated an option with another agent or is involved in some other transaction transferring property, the buyer should exclude those properties to avoid paying a commission for a transaction that is already underway.
















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61


To exclude specific properties from a WB-36, the buyer and the broker should list the prop-erty’s address or a legal description if the address is not sufficient to identify the property. A buyer includes a date on line 11, which marks the end of the exclusion period. If a buyer is including a former broker’s “protected property,” the exclusion period is for one year from the date the previous agency agreement expired. If a buyer is listing more than one broker’s protected properties, they will have different deadlines for the exclusion and the buyer and broker could consider including this information in an addendum to the agency agreement.

IDENTIFYING THE PROPERTIES COVERED BY THE BUYER AGENCY AGREEMENTDescribing the Property By ExclusionsA buyer and a broker can use the exclusion section to create absolute limits for the scope of the buyer agency agreement and use separate search parameters to refine the search over time. The buyer and broker could use addenda to address specific search parameters and amend the parameters as the buyer’s focus or needs change. Including search parameters in the Excluded Properties section sets search guidelines and the scope of the agreement. Parties can also establish specific search parameters with a separate document used as a supplement to the WB-36 but not incorporated as an addendum.

For example, a buyer could include that the buyer wants a three bedroom home in the Eau Claire area. If the buyer wanted to use the Excluded Properties section to establish the search parameters, the buyer could exclude any properties more than 50 miles from Eau Claire and all properties that are not or cannot be used as a dwelling unit where at least five persons may reside. This would set basic limits, naming a property type but leaving room for the characteristics such as the style of house, number of bedrooms, or whether the buyer wants to purchase new construction or a lot for building. A buyer could also include more specific search parameters such as school district, number of bedrooms, and whether the property needs to have a finished basement.

One Specific PropertyWhen a buyer knows the specific property that the buyer want to purchase, the buyer can use the Excluded Properties section to exclude all other properties.

A buyer wants to write an offer on 526 Spruce Street. A buyer could write “all properties other than 526 Spruce Street” in the Excluded Properties section. If the buyer acquires any other property during the term of the buyer agency agreement, the buyer will not owe a success fee to the buyer’s broker. If the buyer acquires an interest in 526 Spruce Street, the buyer will owe the broker a success fee.

A buyer and a broker could also include the specific property information in the additional provisions and include that the broker will not earn any fees or compensation under the agreement if the buyer acquires an interest in any other property.

62

REAL ESTATE SALES

Lines 21-34 Compensation

The parties use a buyer agency agreement to determine the fees a buyer will pay to a broker for successful performance under the agreement. A broker should help the buyer understand compensation amounts and collection strategies before writing an offer for the buyer.

Payment of CompensationA buyer can use the WB-36 to give permission to the buyer’s broker to accept compensation from the owner or the owner’s agent on line 32. By giving this permission, a buyer is allowing the seller or the listing broker to pay the buyer’s broker’s success fee for the buyer. If a buyer does not include this provision, the buyer’s broker cannot accept compensation from anyone other than the buyer. If a buyer’s broker is accepting compensation from someone other than the buyer, then the amount the buyer has agreed to pay as a success fee is reduced by the amount that the broker will receive from the owner or the owner’s agent. A buyer includes a success fee for the buyer’s broker in the amount of 4% of the sale price and gave permission for the buyer’s broker to receive compensation from the owner or the owner’s agent. If the listing broker is offering 4% compensation to co-brokers, the buyer will not owe any additional fees to the buyer’s broker for a successful transaction. If the listing broker is offering 3% compensation to co-brokers, the buyer will owe 1% of the purchase price to the buyer’s broker. If the listing broker is offering 5% compensation to co-brokers, the buyer will not owe any additional fees to the buyer’s broker for a successful transaction, and depending on the terms of the offer of compensation, the buyer’s broker may be able to keep the 1% that is more than what the buyer agreed to pay for successful performance under the buyer agency agreement. Often, a buyer’s agent receives a share of the listing broker’s commission as compensation and the buyer does not end up paying the success fee contained in the agency contract. Licensees draft agency agreements to reflect this by limiting compensation to “whatever the broker receives from the seller or listing broker” or “the MLS offer of compensation.” A buyer’s broker should recognize that there are transactions where this strategy will not work to obtain payment from a party other than the buyer. For example, if a property is not listed in the MLS, including language in the buyer agency agreement limiting a buyer’s broker to “the MLS offer of compensation” could result in no compensation for the buyer’s broker despite successful performance. Additionally, a seller who did not list the property and is selling “for sale by owner” could refuse to pay the buyer’s broker. Collecting the Buyer’s Broker’s FeesThe buyer’s broker fee may be paid by the buyer, owner/seller, owner/seller’s agent, or by a combination of sources. For a broker to receive funds from someone other than the bro-ker’s client, the client must give permission in the agency agreement. When a listing broker
















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63


is going to pay a buyer’s broker’s fee, the brokers will have an compensation agreement. The compensation agreement may be an offer of cooperation and compensation for brokers participating in the MLS or it could be separate policy letter between the brokers. Payment is dependent upon the broker meeting the standard of performance. For MLS transactions, the standard of performance is procuring cause.

Lines 35-42 Broker’s Duties

The broker’s duties set the standards for performance by the buyer’s broker such as using pro-fessional knowledge, skill, and reasonable effort to locate an interest in property for the buyer and negotiating the procurement of the interest in property desired by the buyer. A buyer can use line 41 to include any additional requirements such as sending weekly updates for newly listed properties that fit the buyer’s search parameters.

Lines 123-130 Waiver of ConfidentialityA buyer can give a broker permission to disclose information that would otherwise be confi-dential. A buyer can remain confidential throughout the transaction and have another party sign documents on the buyer’s behalf until the time of conveyance, at which point the deed will contain the buyer’s name.

Lines 131-134 Non-Exclusive Relationship

A buyer acknowledges that the broker may be acting for other buyers in the same or other transactions. For example, a buyer’s broker may represent two buyers who are both writing offers on the same property. The buyer’s broker cannot disclose information about one buyer to another.

Lines 141-145 Property Dimensions

A buyer should recognized that property dimensions are approximate due to rounding or differ-ent calculation formulas. If dimensions of a property or total square footage are material to a buyer, the buyer should purchase a survey or use some other method to verify measurements.

Lines 146-181 DefinitionsThe definition of “buyer” is on lines 154-155 and includes buyers, tenants, optionees, exchang-ers, business investors, and entrepreneurs. Lines 178-181 define “Person Acting on Behalf of Buyer” to include a buyer’s family member, agents, employees, and business entities such as corporations, partnerships, or companies that the buyer wholly or partially controls.
















Page 1 of 5, WB-36



Page 3 of 5, WB-36

INITIAL ONLY ONE OF THE THREE LINES BELOW:93949596979899

100

I consent to designated agency.I consent to multiple representation relationships, but I do not consent to designated agency.I reject multiple representation relationships.

NOTE: You may withdraw your consent to designated agency or to multiple representation relationships by written notice tothe broker at any time. Your broker is required to disclose to you in your agency agreement the commission or fees that youmay owe to your broker. If you have any questions about the commission or fees that you may owe based upon the type ofagency relationship you select with your broker you should ask your broker before signing the agency agreement.

101102 by providing brokerage services for your benefit. A subagent will not put the subagent's own interests ahead of your interests. A103 subagent will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests. 104105

PLEASE REVIEW THIS INFORMATION CAREFULLY. A broker or salesperson can answer your questions about

106brokerage services, but if you need legal advice, tax advice, or a professional home inspection, contact anattorney, tax advisor, or home inspector. This disclosure is required by section 452.135 of the Wisconsin statutes

107108

and is for information only. It is a plain language summary of a broker's duties to you under section 452.133 (2) of

109


110111

confidence, or any information obtained by Broker that he or she knows a reasonable person would want to be keptconfidential, unless the information must be disclosed by law or you authorize Broker to disclose particular information.

112

123124 considered confidential. An example of this type of information might be financial qualification information which may be125 disclosed to strengthen Buyer's offer to purchase/lease proposal in the eyes of prospective sellers/landlords. Broker's126 authorization to disclose may be indicated at lines 121-122. Unless otherwise provided at lines 119-120, Broker has permission

to disclose Buyer's identity to owner, owner's agents and other third parties without prior consent from Buyer. Buyer127128 acknowledges that pursuant to Wisconsin Statute section 706.03(1)(b)(1m) a conveyance, such as an offer to purchase, is not129 binding if it is signed by a representative properly authorized by Buyer (e.g., with a power of attorney) until such time as Buyer130 is identified in the conveyance.

WAIVER OF CONFIDENTIALITY: Buyer may wish to authorize Broker to disclose information which might otherwise be

SUBAGENCY: The broker may, with your authorization in the agency agreement, engage other brokers who assist your broker

CONFIDENTIALITY NOTICE TO CLIENTS: Broker will keep confidential any information given to Broker in

Broker shall continue to keep the information confidential after Broker is no longer providing brokerage services to you.113 THE FOLLOWING INFORMATION IS REQUIRED TO BE DISCLOSED BY LAW:114 Material adverse facts, as defined in section 452.01 (5g) of the Wisconsin statutes (See lines 170-173).115 Any facts known by the broker that contradict any information included in a written inspection report on the property116 or real estate that is the subject of the transaction. To ensure that the broker is aware of what specific information117 you consider confidential, you may list that information below (See lines 119-120). At a later time, you may also

provide the broker with other information you consider to be confidential.118

1.2.

119 CONFIDENTIAL INFORMATION:120121122

NON-CONFIDENTIAL INFORMATION (The following may be disclosed by Broker):

131 NON-EXCLUSIVE RELATIONSHIP: Buyer acknowledges and agrees that Broker may act for other buyers in connection132 with the location of properties and may negotiate on behalf of such buyers with the owner or owner's agent. In the event that133 Broker undertakes to represent and act for other buyers, Broker shall not disclose to Buyer, or any other buyer, any confidential134 information of any buyer, unless required by law.

135 COOPERATION: Buyer agrees to cooperate with Broker and to provide Broker accurate copies of all relevant records,136 documents and other materials in Buyer's possession or control which are required in connection with the purchase, option,137 exchange or lease of property. Buyer agrees to be reasonably available for showings of properties. Buyer authorizes138 Broker to do those acts reasonably necessary to fulfill Broker's responsibilities under this Agreement including retaining139 subagents. Buyer shall promptly notify Broker in writing of the description of any property Buyer locates. Buyer shall also140 notify Broker of the identity of all persons making inquiries concerning Buyer's objectives stated in this Agreement.


Page 4 of 5, WB-36

141142143144145

information provided to Buyer may be approximate due to rounding and may vary due to different formulas which can beused to calculate these figures. Unless otherwise indicated, property dimension figures have not been verified by survey.CAUTION: Buyer should verify any property dimension or total square footage/acreage calculation which ismaterial to Buyer.

146

154155 real estate or a business opportunity by purchase, lease, option, exchange or any other manner. 156157158

excluding the day the event occurred and by counting subsequent calendar days.

159160


161depositing the document or written notice postage or fees prepaid or charged to an account in the U.S. Mail or a

162163

electronically transmitting the document or written notice to the party's fax number (See lines 222, 228 and 234); andas otherwise agreed in additional provisions on lines 182-190 or in an addendum to this Agreement.

DEFINITIONS:

commercial delivery system, addressed to the party, at the party's address (See lines 220, 226 and 232);

174 NEGOTIATE THE PROCUREMENT OF AN INTEREST IN PROPERTY: "Negotiate the procurement of an interest in175 property" shall mean, as used in this Agreement, to contact the owner of the property or the owner's agent to ascertain176 the terms and conditions upon which the interest may be obtained and to otherwise assist Buyer in reaching an177 agreement to procure the interest sought by Buyer in the property as may be specified in this Agreement.

PROPERTY DIMENSIONS: Buyer acknowledges that property dimensions, total square footage and total acreage

BUYER: "Buyer", as used in this Agreement, is the party executing this Agreement and seeking to acquire an interest in

DEADLINES-DAYS: Deadlines expressed as a number of "days" from an event, such as acceptance, are calculated by

DELIVERY: Delivery of documents or written notices related to this Agreement may only be accomplished by: 1)2)

3)4)

164 INTEREST IN PROPERTY: The "interest in property" to be obtained by Buyer includes a purchase, leasehold, option,165 exchange agreement or any other procured interest in real property unless restricted at lines 11-20, in additional provisions166 (lines 182-190) or elsewhere in this Agreement.167 LOCATE AN INTEREST IN PROPERTY: "Locate an interest in property" shall mean, as used in this Agreement, to168 identify, evaluate according to the standards set by Buyer, and determine the availability of the interest sought by Buyer169 in a property.

178 PERSON ACTING ON BEHALF OF BUYER: In this Agreement "Person acting on behalf of Buyer" shall mean any person179 joined in interest with Buyer, or otherwise acting on behalf of Buyer, including but not limited to Buyer's immediate family,180 agents, servants, employees, as well as any and all corporations, partnerships, limited liability companies or other entities181 controlled by, affiliated with or owned by Buyer in whole or in part.

147 ADVERSE FACT: An "adverse fact" means any of the following:(a)148 A condition or occurrence that is generally recognized by a competent licensee as doing any of the following:

1)149 Significantly and adversely affecting the value of the property; 150 2) Significantly reducing the structural integrity of improvements to real estate; or

3)151 Presenting a significant health risk to occupants of the property. (b)152 Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations

under a contract or agreement made concerning the transaction.153

170 MATERIAL ADVERSE FACT: A "material adverse fact" means an adverse fact that a party indicates is of such171 significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party,172 that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects173 or would affect the party's decision about the terms of such a contract or agreement.

64

REAL ESTATE SALES

Lines 193-196 Term of the Agreement

A buyer and a broker can decide whether the buyer agency agreement terminates when the buyer finds a property or whether it continues by striking “shall” or “shall not” on line 195. If a buyer is looking for just one property, the buyer and broker would strike “shall not” so that the agreement reads that “this Agreement shall end when Buyer procures an interest in property” and the agreement would terminate once the buyer finds a property, even if that is before the date on line 194. If a buyer is hiring the broker to locate multiple properties, the parties would strike “shall” and the agency agreement would not end until the date on line 194.

Lines 205-210 Extension of Agreement Term

Like a listing broker and protected buyers, a buyer’s broker can extend the term of the agree-ment for some “protected properties.” A broker can protect properties for which the buyer or buyer’s broker submits an offer to pur-chase on a property. A broker can also protect properties for which the buyer did not submit an offer if the broker, the buyer, or someone acting on behalf of the buyer located or negotiated for the properties during the term of the agency agreement. To protect these properties, the broker must submit written descriptions of the properties to the buyer within three days after the expira-tion of the agency agreement. The buyer’s broker must deliver the list by one of the methods listed in the delivery section of the WB-36. E-mail is not a pre-printed method of delivery. If a buyer acquires an interest in a “protected property” during the one-year extension period, the buyer’s broker would represent the buyer during the transaction and would earn the success fee that the parties included in the buyer agency agreement.

Unlike protected buyers and the WB-1 Residential Listing Contract, protected properties are not automatically excluded from a subsequent buyer agency agreement. The WB-1 Residential Listing Contract states that the listing contract does not apply to a previous broker’s protected buyers and seller-excluded buyers. The WB-36 does not contain pre-printed provisions auto-matically excluding a previous broker’s protected properties. If a buyer’s agent is executing an agency agreement with previously represented buyer, the broker can ask the buyer for informa-tion on the former broker’s protected properties. If the buyer does not have that information, the new broker can contact the former broker and get an accurate list.


Page 5 of 5, WB-36182183184185186

191192193194195196

up to and including midnight of the


ADDENDA: The attached Addenda

187188189190

is/are made a part of this Agreement.TERM OF THE AGREEMENT: From the day of ,

day of , .

197

Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to terminate this Agreement, amend the198

compensation terms or shorten the term of this Agreement, without the written consent of the agent(s)' supervising broker.199

Buyer and Broker agree that any termination of this Agreement by either party before the date stated on line 194 shall be200

indicated to the other party in writing and shall not be effective until delivered to the other party in accordance with lines201

158-163. CAUTION: Early termination of this Agreement may be a breach of contract, causing the terminating party to202

potentially be liable for damages.

TERMINATION OF AGREEMENT: Neither Buyer nor Broker has the legal right to unilaterally terminate this Agreementabsent a material breach of contract by the other party. Buyer understands that the parties to this Agreement are Buyer and the

203204

Notwithstanding lines 193-194, Broker and Buyer agree that this Agreement shall/shall notstruck, this Agreement shall end] when Buyer procures an interest in property.

205 EXTENSION OF AGREEMENT TERM: The Agreement term is extended for a period of one year as to any property206 which during the term of this Agreement was: 1) located or negotiated for by Broker, Broker's agent, Buyer or any person207 acting on behalf of Buyer, or 2) which was the subject of a written offer to purchase submitted by Buyer or any person208 acting on behalf of Buyer. If this extension is based on Broker's or Broker's agent's location or negotiation, this extension209 shall only be effective if a written description of the property is delivered to Buyer no later than three days after expiration210 of this Agreement. 211 NOTICE ABOUT SEX OFFENDER REGISTRY: You may obtain information about the sex offender registry and212 persons registered with that registry by contacting the Wisconsin Department of Corrections on the Internet at213 http://www.widocoffenders.org or by telephone at (608)240-5830.214 READING/RECEIPT: BY SIGNING BELOW, BUYER ACKNOWLEDGES RECEIPT OF A COPY OF THIS215 AGREEMENT AND THAT HE/SHE HAS READ ALL FIVE PAGES AS WELL AS ANY ADDENDA AND ANY OTHER216 DOCUMENTS INCORPORATED INTO THIS AGREEMENT.

Dated this217 day of ,

(x)218Buyer's Signature Print Name Here: Date219

220221 Buyer's Address Buyer's Phone #222223 Buyer's Fax # Buyer's E-Mail Address

(x)230231 Agent for Broker Print Name Here: Broker/Firm Name Date

232233 Broker/Firm Phone #Broker/Firm Address234235 Broker/Firm Fax # Broker/Firm E-Mail Address

(x)224Buyer's Signature Print Name Here:225


Date

STRIKE ONE end [if neither


Page 5 of 5, WB-36182183184185186

191192193194195196

up to and including midnight of the


ADDENDA: The attached Addenda

187188189190

is/are made a part of this Agreement.TERM OF THE AGREEMENT: From the day of ,

day of , .

197

Broker (firm). Agents (salespersons) for Broker (firm) do not have the authority to terminate this Agreement, amend the198

compensation terms or shorten the term of this Agreement, without the written consent of the agent(s)' supervising broker.199

Buyer and Broker agree that any termination of this Agreement by either party before the date stated on line 194 shall be200

indicated to the other party in writing and shall not be effective until delivered to the other party in accordance with lines201

158-163. CAUTION: Early termination of this Agreement may be a breach of contract, causing the terminating party to202

potentially be liable for damages.

TERMINATION OF AGREEMENT: Neither Buyer nor Broker has the legal right to unilaterally terminate this Agreementabsent a material breach of contract by the other party. Buyer understands that the parties to this Agreement are Buyer and the

203204

Notwithstanding lines 193-194, Broker and Buyer agree that this Agreement shall/shall notstruck, this Agreement shall end] when Buyer procures an interest in property.

205 EXTENSION OF AGREEMENT TERM: The Agreement term is extended for a period of one year as to any property206 which during the term of this Agreement was: 1) located or negotiated for by Broker, Broker's agent, Buyer or any person207 acting on behalf of Buyer, or 2) which was the subject of a written offer to purchase submitted by Buyer or any person208 acting on behalf of Buyer. If this extension is based on Broker's or Broker's agent's location or negotiation, this extension209 shall only be effective if a written description of the property is delivered to Buyer no later than three days after expiration210 of this Agreement. 211 NOTICE ABOUT SEX OFFENDER REGISTRY: You may obtain information about the sex offender registry and212 persons registered with that registry by contacting the Wisconsin Department of Corrections on the Internet at213 http://www.widocoffenders.org or by telephone at (608)240-5830.214 READING/RECEIPT: BY SIGNING BELOW, BUYER ACKNOWLEDGES RECEIPT OF A COPY OF THIS215 AGREEMENT AND THAT HE/SHE HAS READ ALL FIVE PAGES AS WELL AS ANY ADDENDA AND ANY OTHER216 DOCUMENTS INCORPORATED INTO THIS AGREEMENT.

Dated this217 day of ,

(x)218Buyer's Signature Print Name Here: Date219


(x)230231 Agent for Broker Print Name Here: Broker/Firm Name Date

232233 Broker/Firm Phone #Broker/Firm Address234235 Broker/Firm Fax # Broker/Firm E-Mail Address

(x)224Buyer's Signature Print Name Here:225


Date

STRIKE ONE end [if neither

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