On March 1, 2026, important revisions to Wis. Admin. Code Chapter REEB 24 — the rule governing real estate licensee conduct and ethical practices in Wisconsin — went into effect. Certain sections were amended, and one was outright eliminated. These revisions are designed to clarify key duties and responsibilities for real estate professionals, reduce confusion over disclosure and inspection obligations, and align the rule more closely with current industry expectations and statutory law. See the scope statement for the rule revisions here.

The Real Estate Examining Board (REEB) and the Wisconsin Department of Safety and Professional Services (DSPS) undertook this revision to update and clarify conduct standards that have been a source of stakeholder confusion — particularly around inspections, disclosures and licensee responsibilities in transactions. 

Focus on inspection requirements

One of the most meaningful changes involves when and how a licensee must inspect real estate. The updated rule makes it clearer that a licensee, other than the listing agent, must conduct an inspection before submitting a written offer to purchase, unless one of two exceptions applies:

• The licensee was not given access to the property before writing the offer.
• Or a buyer instructed the licensee to submit the offer before being able to access the property.

In those cases, the licensee must inspect the property promptly after submitting the offer, provided access is given. This change aims to better reflect modern practice, where agents may sometimes prepare an offer before gaining physical access — but still have a duty to subsequently inspect once access is provided. 

This language update helps clarify what constitutes a “reasonably competent and diligent inspection” under existing Wis. Admin. Code § REEB 24.07 requirements, which already emphasize observable material adverse facts and a licensee's duty to disclose.

Listing agents still must inspect a property prior to listing it. 

Repeal of information suggesting the possibility of a material adverse facts subsection

Another substantive change is the repeal of the provision requiring disclosure of information that merely suggested the possibility of a material adverse fact.

Previously, Wis. Admin. Code § REEB 24.07 required licensees not only to disclose known material adverse facts, but in certain circumstances to disclose information suggesting the possibility of a material adverse fact. This created confusion and, at times, uncertainty about how speculative information needed to be before triggering disclosure.

Wis. Admin. Code § REEB 24.07(3) has been repealed in its entirety.

Wis. Admin. Code REEB 24.07(3) Disclosure of information suggesting material adverse facts. A licensee, when engaging in real estate practice, who becomes aware of information suggesting the possibility of material adverse facts to the transaction, is practicing competently if the licensee discloses to the parties the information suggesting the possibility of material adverse facts to the transaction in writing and in a timely fashion, recommends the parties obtain expert assistance to inspect or investigate for possible material adverse facts to the transaction, and, if directed by the parties, drafts appropriate inspection or investigation contingencies. This provision is not limited to the condition of the property, but includes other material adverse facts to the transaction, including defects and conditions included within the report form under ss. 709.03 and 709.033, Stats. A licensee is not required to retain third party inspectors or investigators to perform investigations of information suggesting the possibility of a material adverse fact to the transaction.

Effective March 1, 2026, the focus returns to the statutory standard: disclosure of actual material adverse facts rather than speculative possibilities. While licensees must still exercise professional judgment and make appropriate inquiries when warranted, the removal of the “possibility” language reduces ambiguity and aligns the Administrative Code to the disclosure that is actually required by statute. 

Importantly, this does not eliminate a licensee’s duty to disclose known material adverse facts under Wisconsin law. It clarifies that disclosure obligations are grounded in known or reasonably observable adverse facts — not suggestions about possibilities of material adverse facts.

Revision to the WRA-DMAF form

In response to the rule change, the WRA has revised the WRA-DMAF Disclosure of Material Adverse Fact form.

The prior version of the form included language addressing disclosure of information suggesting the possibility of a material adverse fact. Because that regulatory requirement has been repealed, the updated WRA-DMAF form has been streamlined to focus exclusively on disclosure of actual material adverse facts as defined by Wisconsin law.

The revised form:

• Removes references to speculative or possible adverse conditions.
• Aligns directly with the statutory definition of “material adverse fact.”
• Continues to document the licensee’s compliance with disclosure obligations.

Licensees should ensure they are using the updated form beginning March 1, 2026. The revised form is available in the WRA Forms Library and will be available in Transactions (zipForm Edition) soon. 

Clarification on right of first refusal duties

The revised rule also explicitly clarifies that real estate licensees are not responsible for implementing the provisions of any right of first refusal. While licensees must disclose the existence of a right of first refusal in writing when they are aware of it, the administrative changes make clear that they are not expected to take on duties related to enforcing or executing those terms. This clarification is intended to align regulatory expectations with typical brokerage practice and avoid confusion about licensee responsibilities.

Broader clarification and alignment with statute

The 2026 revisions reflect an effort by the REEB to clarify and modernize the conduct standards that guide every Wisconsin real estate licensee. Wis. Admin. Code Chapter REEB 24’s purpose has always been to define standards of conduct and what may constitute unethical or incompetent practice subject to discipline. These changes refine that guidance, especially in areas where behavior expectations have been unclear or outdated. 

For example, underlying duties such as disclosure of compensation and interests in Wis. Admin. Code § REEB 24.05, confidentiality of offers in Wis. Admin. Code § REEB 24.12, and inspection and disclosure of material adverse facts in Wis. Admin Code § REEB 24.07 remain core components of the rule. While the 2026 changes do not rewrite these sections wholesale, they help ensure the language mirrors current practice and statutory obligations under Wisconsin real estate law. 

What this means for licensees

The March 1, 2026, revisions to Wis. Admin. Code Ch. REEB 24 primarily clarify and refine existing obligations rather than create new duties. The changes narrow the disclosure standard relating to material adverse facts by focusing on known facts instead of speculative possibilities, and they provide clearer guidance regarding a licensee’s limited role in rights of first refusal provisions.

At the same time, the core duties that have long governed Wisconsin real estate practice remain intact.

Overall, the revisions are designed to reduce ambiguity, promote more consistent interpretation of ethical responsibilities, and align administrative rules more closely with statutory standards while continuing to protect consumers.