Legislation that will promote transparency and improve consumer confidence has been introduced in the Wisconsin Legislature. The legislation affects three key areas that influence how licensees serve clients and how consumers understand the buying and selling process

• Marketing of listed property: Ensuring sellers understand how and where their property is being marketed
• Advertising enhanced by technology: Requiring disclosure when technology alters how a property appears in marketing materials
• Cooperating firm compensation: Prohibiting firm-to-firm compensation while preserving a seller’s ability to compensate the firm working with the buyer as long as that compensation is documented in the offer to purchase.

Together, these reforms strengthen public trust, support professional accountability and modernize Wisconsin’s real estate laws to reflect today’s marketplace realities.

Why transparency matters

Across the nation, the residential real estate landscape is changing. Technology, alternative brokerage models and shifting consumer expectations have transformed how homes are marketed, advertised and sold.

The proposed legislation ensures that Wisconsin remains ahead of these changes — protecting consumers, maintaining fair competition and empowering REALTORS^® to serve buyers and sellers confidently and transparently.

Marketing of listed property

At the heart of the legislation related to marketing a seller’s property is a simple concept: sellers deserve to know exactly how their home will be marketed and must make that decision with full understanding of the consequences.

How broadly a property should be marketed has become a hot topic in real estate. Supporters of wide exposure argue that it ensures fairness, transparency and competition — giving all buyers an equal opportunity to see available listings. Others believe sellers should retain flexibility to market privately, limit showings or pursue niche strategies. This legislation strikes a balance by giving sellers control and ensuring they make informed choices.

Under the bill, listing firms representing residential sellers must:

• Share property information and respond to reasonable inquiries.
• Make the property available for showings.
• Market the property broadly online — unless the seller initials a disclosure opting out.

If a seller chooses to limit marketing, they must acknowledge that doing so could reduce buyer awareness, competition and potentially affect sale price or terms. Sellers may also specify certain practitioners with whom they do not wish to work, as long as that choice complies with fair housing laws.

This legislation ensures that sellers make marketing choices knowingly and not by default. 

Consumer education

The legislation requires the Real Estate Examining Board (REEB) to publish a consumer brochure explaining:

• The benefits of broad marketing.
• The potential risks of limiting exposure.
• Guidance on how to disclose and document these decisions.

This educational resource empowers consumers and reinforces REALTORS^®’ commitment to transparent communication.

Safe harbor for REALTORS^®

The legislation includes a safe harbor provision protecting licensees who act in good faith from civil liability. As long as a licensee’s marketing or disclosure is accurate and not intentionally misleading, they cannot be sued for complying with the law. This protection allows licensees to follow disclosure and marketing rules confidently without fear or legal consequences. 

Advertising enhanced by technology

Technology continues to redefine how real estate is practiced — from virtual staging and AI photo enhancement to digital tours and automated listing tools. These innovations help buyers visualize a property, but they can also create confusion if enhancements misrepresent reality.

For example, digitally removing a neighboring structure or adding lush landscaping can create a false impression of the property’s true condition. The proposed legislation requires licensees to disclose when a listed property has been altered, modified or enhanced using technology in a way that could create a misleading impression.

This rule isn’t meant to restrict innovation — it simply ensures that advertising remains truthful and that buyers can trust what they see.

For REALTORS^®, this means reviewing marketing content — especially photos, renderings and virtual tours — to ensure material alterations are disclosed. Transparency here protects both the buyer and the licensee from misunderstandings or from potential misrepresentation claims. Virtual staging is fine — so long as buyers know it’s virtual.

Cooperating firm compensation

Another significant part of this legislation is it prohibits a real estate firm from compensating another real estate firm, except for referral fees. Sellers can still compensate firms working with buyers, but the listing firm cannot pay another firm for brokerage services related to the seller’s transaction. 

The National Association of REALTORS^® (NAR) settlement discontinued MLS offers of compensation — this legislation will do away with all firm-to-firm compensation regardless of how it would be communicated. It is important to note that it does not prevent a seller from paying the firm working with a buyer. That is still permitted.

Historically, the listing firm representing the seller offers compensation to the cooperating firm representing the buyer. While this model has long encouraged cooperation, it can also be confusing for consumers who may not understand who pays whom — or why.

This legislation modernizes the framework by ensuring all compensation arrangements are transparent, documented and negotiated by the parties themselves.

The bill provides that:

1. A firm may be paid directly by its own client, who is the seller or the buyer, via an agency agreement.
2. Firms may not enter into side agreements with other firms to share or split compensation.
3. Sellers may decide whether they want to offer compensation to an agent working with a buyer.
4. If a buyer wants the seller to pay the buyer’s agent, that arrangement must be explicitly included in the offer to purchase.
5. Compensation terms must be transparent and documented so both the buyer and seller understand who is being paid, by whom, and how much.

This structure ensures compensation is handled as part of the negotiated transaction between the buyer and seller —  not as a separate agreement between real estate firms.

The bill still allows a licensee working with a buyer, whether as a client or as a customer, to receive compensation from the seller, so long as that payment is negotiated and properly documented in the offer.

This maintains flexibility for various brokerage models while creating a more transparent and consumer-friendly process.

A modern framework for a modern market

The practice changes brought forth by this legislation strengthen Wisconsin’s real estate laws by addressing emerging issues head-on. The bill ensures that:

• Consumers understand how their property is being marketed and how technology shapes what they see.
• Licensees have clear, consistent rules that support professionalism and compliance.
• The industry continues to evolve with innovation while maintaining fairness and transparency.

These updates reflect Wisconsin’s longstanding tradition of balancing strong consumer protections with a competitive, efficient real estate marketplace.

This legislation is a forward-looking proposal that enhances trust and clarity in Wisconsin real estate transactions. By clarifying marketing obligations, modernizing advertising rules and reforming compensation structures, the bill ensures that all parties — buyers, sellers and licensees — understand their rights and responsibilities.