Wisconsin § 452.19 - Fees, commissions, and other compensation.

§ 452.19. Fees, commissions, and other compensation.

452.19(1m) (1m) 452.19(1m)(a) (a) No licensee may pay a fee or a commission or any part thereof for performing any act specified in this chapter or as compensation for a referral or as a finder’s fee to any person who is not licensed under this chapter or who is not regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States, or a foreign country, unless the person was licensed under this chapter when the commission was earned or when the referral fee arrangement was made. 452.19(1m)(b) (b) If a licensee is associated with a firm, all fees or commissions and any part thereof for performing any act specified in this chapter and all compensation for a referral or as a finder’s fee shall be paid to the firm. 452.19(3) (3) 452.19(3)(a) (a) 452.19(3)(a)1. 1. A firm shall not accept compensation of any kind from another firm in connection with brokerage services performed as part of a real estate transaction involving a residential property containing one to 4 dwelling units. 452.19(3)(a)2. 2. The prohibition under subd. 1. applies regardless of whether the firm represents different parties, such as buyer and seller, or whether a non-listing firm is acting as a buyer’s agent, as a subagent, or in another cooperative capacity. 452.19(3)(a)3. 3. Subdivision 1. does not prohibit the payment of compensation for a referral fee or a finder’s fee as described in sub. (1m) . 452.19(3)(b) (b) Any agreement or arrangement that violates this subsection is void and unenforceable. 452.19(4) (4) 452.19(4)(a) (a) In any transaction involving a residential property containing one to 4 dwelling units, if a seller agrees to pay compensation to a firm that is not the listing firm for brokerage services provided to a buyer, the agreement must satisfy all of the following: 452.19(4)(a)1. 1. Be expressly stated in the fully executed offer to purchase or option to purchase. 452.19(4)(a)2. 2. Be signed by the buyer and the seller as part of the contract. 452.19(4)(b) (b) A firm that is not the listing firm may not receive compensation from a party to a transaction who is not the client of the firm unless the agreement to pay the compensation is documented in the executed offer to purchase or option to purchase. 452.19(4)(c) (c) A listing contract may not require or imply that a seller will pay compensation to a firm that is not the listing firm, as prohibited under par. (b) , unless such obligation is contingent upon its inclusion in the executed offer to purchase or option to purchase as provided in par. (a) . 452.19(4)(d) (d) A listing contract shall include a statement as to whether the seller authorizes the listing firm to disclose if the seller is offering compensation to a firm other than the listing firm. Effective date note NOTE: This section is shown as affected eff. 1-1-27 by 2025 Wis. Act 69 . Prior to 1-1-27 it reads: 452.19 Note 452.19 Fees and commissions. (1) No licensee may pay a fee or a commission or any part thereof for performing any act specified in this chapter or as compensation for a referral or as a finder’s fee to any person who is not licensed under this chapter or who is not regularly and lawfully engaged in the real estate brokerage business in another state, a territory or possession of the United States, or a foreign country, unless the person was licensed under this chapter when the commission was earned or when the referral fee arrangement was made. Effective date text (2) If a licensee is associated with a firm, all fees or commissions and any part thereof for performing any act specified in this chapter and all compensation for a referral or as a finder’s fee shall be paid to the firm. 452.19 History History: 1981 c. 94 ; 1983 a. 464 ; 1985 a. 128 ; 1989 a. 307 ; 2015 a. 258 ; 2017 a. 365 s. 111 ; 2023 a. 208 ; 2025 a. 69 . 452.19 Annotation Under s. 452.03, an agreement to pay a real estate brokerage commission to a person not licensed as a broker is void at its inception. Using a licensed broker who provides no actual services as a conduit for a fee to an unlicensed person does not create a co-brokerage arrangement authorized by this section. Badger III Ltd. Partnership v. Howard, Needles, Tammen & Bergendoff, 196 Wis. 2d 891 , 539 N.W.2d 904 (Ct. App. 1995), 94-2531 .