What Every Real Estate Professional Needs to Know about Wisconsin’s Two-year Statute of Limitations
In Wisconsin, real estate brokers and agents are subject to a two-year statute of limitations for actions related to brokerage services. A statute of limitations refers to the legal time limit within which a client or another party can file a lawsuit for alleged wrongdoing. Created specifically for the real estate industry, Wisconsin Statute § 452.142 was enacted in 2016 to align with the unique nature of real estate transactions, which are documentation-heavy and time-bound, and to provide industry-specific protections. It is meant to balance consumer safeguards and professional fairness.
When does the clock start?
Under the statute, no lawsuit may be brought against a real estate licensee for actions related to brokerage services more than two years after the transaction is completed or closed, or an agency agreement is terminated, or an unconsummated transaction is terminated or expires, regardless of when the issue was discovered.
What types of claims fall under Wisconsin Statutes § 452.142?
Claims included in this statute are those involving actions related to brokerage services, for example:
- Breach of contract
- Negligence
- Failure to disclose
- Misrepresentation or fraud related to property sales or listings
- Breach of fiduciary duty
The statute does not apply to disciplinary actions initiated by the board, but that is the only exception; it is designed to give real estate professionals certainty and finality in their liability exposure.
What types of claims are NOT covered under Wisconsin Statutes § 452.142?
The statue only applies to civil lawsuits related to brokerage services. It does not protect a licensee from criminal acts, acts not related to brokerage services, or licensing discipline.
Wisconsin Statutes § 452.142 offers strong civil protection for real estate professionals, but the law is complex. Knowing what and who is covered – and for how long – can make or break your case.
If you have a question about the two-year statute of limitation or another legal issue, please contact us at 866-427-2121 for a free initial consultation. With more than 20 years of experience defending real estate agents, we know the intricacies of the law and are prepared to represent Wisconsin’ real estate professionals facing litigation.