The WRA’s Statewide Professional Standards Enforcement Program continues with strong participation from the 15 original local boards and associations. Ethics inquiries remain stable with what appears to be slight increases in inquiries from members, and in the number of ethics complaints filed overall.
Calls from members of the public include allegations of their interests not being protected by the agent, misrepresentation of property, failure to properly explain contracts and lack of communication from the agent. Members have alleged unauthorized
access to property, advertising violations, reckless or false statements being made, and solicitation of clients.
Ethics activity April 1, 2023, through May 31, 2024
- Number of inquiries: 290 (76% from the public)
- Number of complaints filed: 33 (64% from the public)
Members found in violation: 5
- Article 1: Unauthorized access to property
- Articles 1 and 16: Not protecting interests of client and interfering with exclusive agency
- Article 2: Misrepresentation and falsification of documents
- Article 12: Using photos without permission
- Article 16: Soliciting a seller under exclusive contract
Discipline included fines ranging from $500 to $1,000, a letter of reprimand on record from one to five years, and education requirements. Members found in violation of the REALTOR® Code of Ethics are assessed a $500 administrative fee in addition
to and not part of any sanction that may be imposed.
Callers are provided with details about the REALTOR® complaint process, starting with encouraging them to contact the agent’s broker to discuss their concerns since that approach often leads to a quick resolution. Ethics complaints may not
be filed if educational resources answer questions that resolve concerns, or a complainant may choose to file their complaint with the Wisconsin Department of Safety and Professional (DSPS) or the courts. Often, a complaint centers around issues of
courtesy and etiquette, and not enforceable ethical standards.
Arbitration activity: April 1, 2023, through May 31, 2024
Members are required to attempt mediation for mandatory arbitrable issues prior to arbitration, which is usually a successful tool in resolving monetary disputes.
- Requests for mediation filed: 14
- Resolved through mediation: 10
- Arbitration requests: 2 (filed after mediation wasn’t successful)
- Mediations in progress: 2
Citation policy implemented January 1, 2024
- Number of citations issued: 1
- Unauthorized access to property: $1,000 fine for first offense
An ethics complaint was filed alleging a violation of Article 3. The listing agent filed the complaint after being notified by the seller that the seller encountered an unattended buyer in their home. The selling agent admitted to giving the lockbox code
to the buyer to enter the home as the selling agent was unable to attend the showing.
A grievance panel determined the violation is covered under the WRA citation policy and issued a $1,000 citation to the respondent, who paid it without
requesting a hearing.
Unauthorized access to property: Code of Ethics comprehension for articles 1 and 3
Article 1 addresses the primary ethical duty REALTORS® owe to protect and promote the interests of their client. A violation of Article 1 as interpreted by Standard of Practice 1-16 would involve an agent of the seller or owner accessing or
using, or allowing others to access or use, their client’s property on terms other than those agreed upon by their client.
Article 3 addresses the ethical duties of REALTORS® when cooperating with other brokers. A violation of
Article 3 as interpreted by Standard of Practice 3-9 would involve a cooperating REALTOR® accessing or allowing access to a property on terms other than those agreed upon by the owner or seller.
See more about the difference between Articles 1 and 3 in NAR’s “Code Comprehension” guidance handout.
Articles most often cited in ethics complaints
Duties to Clients and Customers
Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.
Article 2
REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.
Article 9
REALTORS®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.
Duties to the Public
Article 12
REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.
Duties to REALTORS®
Article 15
REALTORS® shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices.
Article 16
REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients.
Learn more about the WRA’s professional standards program.
