Key Takeaways
- Wisconsin licensees owe certain duties to ALL parties in a transaction regardless of representation
- Duties to all parties include fair and honest service, reasonable skill and care, and disclosure of material adverse facts
- Client duties include additional obligations like loyalty, confidentiality, and full disclosure
- Licensees must keep confidential information confidential unless disclosure is required by law
- Licensees must provide accurate market condition information within reasonable time when requested
Last updated: January 2026
Agency Duties in Wisconsin
Wisconsin law establishes duties that licensees owe to all parties in a transaction, with additional enhanced duties owed to clients.
Duties Owed to ALL Parties
Under Wisconsin law, a firm and its agents owe these duties to all parties (clients AND customers):
1. Fair and Honest Service
| Duty | Description |
|---|---|
| Requirement | Provide brokerage services fairly and honestly |
| Application | Applies to all parties equally |
| Prohibition | No misrepresentation or fraud |
2. Reasonable Skill and Care
| Duty | Description |
|---|---|
| Requirement | Provide services with reasonable skill and care |
| Standard | Professional competence expected |
| Liability | May be liable for negligent acts |
3. Disclosure of Material Adverse Facts
| Duty | Description |
|---|---|
| Requirement | Disclose in writing certain material adverse facts about a property |
| Exception | Unless disclosure is prohibited by law |
| Definition | Facts that would affect a reasonable buyer's decision |
4. Confidentiality
| Duty | Description |
|---|---|
| Requirement | Keep confidential information given in confidence |
| Also applies to | Information a reasonable person would want kept confidential |
| Exception | Unless law requires disclosure |
5. Market Information
| Duty | Description |
|---|---|
| Requirement | Provide accurate information about market conditions |
| Timing | Within a reasonable time of the party's request |
| Scope | Information affecting the transaction |
6. Trust Fund Protection
| Duty | Description |
|---|---|
| Requirement | Safeguard trust funds and other property held by the firm |
| Application | All client funds, earnest money, deposits |
Additional Duties to CLIENTS
Beyond the duties owed to all parties, licensees owe these additional duties to clients:
1. Loyalty
| Duty | Description |
|---|---|
| Requirement | Act in the client's best interest |
| Prohibition | Cannot put personal interest above client's |
| Limitation | Loyalty limited in dual agency |
2. Confidentiality (Enhanced)
| Duty | Description |
|---|---|
| Beyond basic | More extensive than duty to all parties |
| Includes | Negotiating position, motivation, financial information |
| Duration | Continues after relationship ends |
3. Full Disclosure
| Duty | Description |
|---|---|
| Requirement | Disclose all information material to the transaction |
| Includes | Facts that could affect client's decisions |
| Timeliness | Prompt disclosure required |
4. Obedience
| Duty | Description |
|---|---|
| Requirement | Follow client's lawful instructions |
| Limitation | Cannot follow unlawful instructions |
| Professional judgment | May advise against unwise decisions |
5. Accounting
| Duty | Description |
|---|---|
| Requirement | Account for all funds and property |
| Documentation | Maintain records of all transactions |
| Reporting | Provide accounting to client |
Client vs. Customer Summary
| Duty | Owed to Clients | Owed to Customers |
|---|---|---|
| Fair and honest service | Yes | Yes |
| Reasonable skill and care | Yes | Yes |
| Disclosure of material adverse facts | Yes | Yes |
| Confidentiality (basic) | Yes | Yes |
| Market information | Yes | Yes |
| Trust fund protection | Yes | Yes |
| Loyalty | Yes | No |
| Enhanced confidentiality | Yes | No |
| Full disclosure | Yes | No |
| Obedience | Yes | No |
| Accounting | Yes | No |
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Test Your Knowledge
Which duty does a Wisconsin licensee owe to ALL parties in a transaction?
A
B
C
D
Test Your Knowledge
Which additional duty does a Wisconsin licensee owe ONLY to clients?
A
B
C
D
Test Your Knowledge
When must a Wisconsin licensee provide accurate market condition information to a party?
A
B
C
D