In this chapter:

1. (1) “Business day” means any day excluding Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President of the United States such that the U.S. postal service does not receive registered mail or make regular deliveries on that day.

2. (1e) “Client funds” has that meaning given in s. 452.13 (1) (a), Stats.

   Note: Section 452.13 (1) (a), Stats., reads: ‘“Client funds” means all downpayments, earnest money deposits or other money related to a conveyance of real estate that is received by a broker, salesperson or time-share salesperson on behalf of the broker’s, salesperson’s or time-share salesperson’s principal or any other person. “Client funds” does not include promissory notes.’

3. (4) “Depository institution” has that meaning given in s. 452.13 (1) (b), Stats.

   Note: Section 452.13 (1) (b), Stats., reads: ‘“Depository institution” means a bank, savings bank, savings and loan association or credit union that is authorized by federal or state law to do business in this state and that is insured by the federal deposit insurance corporation or by the national credit union share insurance fund.’

4. (5) “Real estate trust account” means an account for real estate trust funds maintained at a depository institution from which withdrawals or transfers can be made without delay, subject to any notice period that the depository institution is required to observe by law, and includes all of the following:

   1. (a) Interest-bearing common trust accounts established for client funds.
   2. (b) Non-interest bearing real estate trust accounts maintained for real estate trust funds other than client funds.
   3. (c) Interest-bearing real estate trust accounts maintained for real estate trust funds other than client funds.

5. (6) “Real estate trust funds” means any cash, checks, share drafts, drafts, or notes received by a firm or licensee on behalf of a principal or any other person including any of the following:

   1. (a) Payments on land contracts, mortgage payments and any other receipts pertaining to mortgages.
   2. (b) Tax and insurance payments held in escrow.
   3. (c) Advance fees and finder’s fees, unless non-refundable.
   4. (d) Rental application deposits and rents, but only when received while acting as an agent for another.
   5. (e) Payments received for subsequent repayment to a third party.
   6. (f) Security deposits on rental property, except as provided in s. REEB 18.031 (4).
   7. (g) Initial and additional earnest money downpayments and other funds received in connection with offers to purchase, options, and exchanges, even if the broker or salesperson receives the downpayments or funds when negotiating the sale of real estate or a business opportunity which the broker or salesperson owns in whole or in part, or when negotiating the purchase of real estate or a business opportunity for ownership in whole or in part by the broker or salesperson.

Note: See also definitions in s. REEB 11.02.

History

History: Cr. Register, April, 1981, No. 304, eff. 5-1-81; r. and recr. (3), Register, April, 1982, No. 316, eff. 5-1-82; renum. from REB 9.02 and am. (1), Register, February, 1983, No. 326, eff. 3-1-83; cr. (2m), am. (3) (a) (intro.), renum. (3) (c) and (d) to be (3) (a) 4. and 5. and am. 5., Register, June, 1984, No. 342, eff. 7-1-84; r. and recr. Register, August, 1994, No. 464, eff. 9-1-94; r. (3), am. (5) (intro.), Register, July, 1998, No. 511, eff. 8-1-98; correction in (6) (f) made under s. 13.92 (4) (b) 7., Stats., Register November 2011 No. 671; CR 13-072: renum. (1) to (1e), cr. (1), am. (5) (intro.) to (b), (6) Register May 2014 No. 701, eff. 7-1-14; EmR1620: emerg. r. (2), am. (6) (intro.), (g), eff. 7-1-16; CR 16-042: r. (2), am. (6) (intro.), (g) Register February 2017 No. 734, eff. 3-1-17.