All Forum Posts by: Gregg Willich

@John Thedford 

I agree, there was no deal, but a lawyer's ethical duties, and other laws, apply before a deal is in place. Also, a lot of my comment was really addressing a side argument related to Texas law, which isn't relevant to the OP, but it still addresses comments made by others. 

I'm not an attorney in Texas, but I decided to look up TRELA 1101 for fun. Sure enough, that chapter doesn't apply to attorneys, and also appears to allow attorneys to act as brokers without any additional licensing. So there is that.

TRELA 1101.005: This chapter does not apply to an attorney licensed in this state.

TRELA 1101.806(b): A person may not maintain an action to collect compensation for an act as a broker or salesperson in this state unless the person alleges and proves that the person was: 

(1) a license holder at the time the act was commenced; or

(2) an attorney licensed in any state.

Also, if a client came to me with a deal that looked like he or she was being taken advantage of ("a deal of a lifetime" to the prospective buyer), I would have also advised my client to stay away. We also don't know if the attorney called around to other brokers to get insight. Perhaps the lawyer is not the one calling the investors. All we can do is speculate, just like the OP did when he said, "I'm thinking the lawyer is going to be part of the deal on the purchase side."

This is provided as general information only, and should not be construed as legal advice.

@Matt R., check out Wis. Stat. § 704.28 and Wis. Admin. Code § ATCP 134.06. A big question to answer is when the rental agreement is supposed to end. Subject to your duty to mitigate (see Wis. Stat. § 704.29), you can withhold lost rent, as well as other listed reasons, such as damage to the property, excluding normal wear and tear. 

Pay attention to Wis. Stat. § 704.28(4) and Wis. Admin Code § ATCP 134.06(2) & (4) regarding when you must return the security deposit and/or send an accounting of amounts deducted. You will have 21 days from the listed scenarios, and in your situation, it will likely be 21 days from the following:

Don't miss the appropriate deadline, or else you will be subject to double damages and required to pay your tenant's attorney fees. 

I hope this helps. 

Atty Gregg Willich, Willich Law Office, LLC

This is provided as general information only, and should not be construed as legal advice. Please contact an attorney for your specific legal needs. 

Generally, I recommend staying away from it because of the pitfalls and headaches. I think getting the prospective tenant to sign the lease as soon as possible after her or she has been screened is a better option. 

@Nicholas W., you are correct. You have to be careful when it comes to earnest money deposits in Wisconsin, regardless of what term you use for it. 

Definition of earnest money deposit (s. ATCP 134.02(3), Wis. Admin. Code):

Not only are there restrictions regarding what the deposit can be used for and when the money has to be returned, but there are also things you have to do before accepting such a deposit. Some of those requirements include identifying the unit or units for which the applicant is being considered and furnishing the prospective tenant with a copy of the rental agreement (including all the addenda) and the rules and regulations.

While you might think that a prospective tenant would not take you to court over $100, you should know that he or she would be able to get twice the amount of the loss sustained as a result of a ch. ATCP 134 loss, plus you would be on the hook to pay the prospective tenant's costs, including reasonable attorney fees. You can find ATCP 134 here: https://docs.legis.wisconsin.gov/code/admin_code/atcp/090/134. 

I hope this helps.

Atty Gregg Willich, Willich Law Office, LLC
Author of free Wisconsin rental forms at rezental.com.

This is provided as general information only, and should not be construed as legal advice. Please contact an attorney for your specific legal needs. 

@Tanya F., thanks for the feedback! The plan is to create a separate pet agreement, as well as a rules and regulations form. The details that come with allowing pets would likely add too much to the standard form. Additionally, a separate pet agreement makes it easier to add a pet after the initial agreement has been consummated. I will move those up on the priority list. 

The information about the landlord's agent indirectly applies to self-managed properties. Before a rental agreement is entered into, landlords are required to identify in writing the name and address of "the person or persons authorized to collect or receive rent and manage and maintain the premises, and who can readily be contacted by the tenant." The landlord must also disclose the name and physical Wisconsin address (i.e., no PO Boxes) of the owner or other person authorized to accept service of process and other notices and demands on behalf of the owner. That means the landlord must either give its physical Wisconsin address, or must name an agent and provide the physical Wisconsin address of that agent, at which service of process can be made in person (again, this cannot be done at a PO Box). 

By not specifically designating an agent on the form, the landlord is disclosing that the landlord is responsible for those roles, and is the person to be contacted. It could be argued that by not mentioning an agent at all, the landlord is automatically taking on those roles, but I believe it is safer to err on the side of redundancy to satisfy the regulation. This could, however, be accomplished with less space for self-managed properties, so I will keep that in mind. 

Thanks again!

@Greg H.,

I appreciate your input. If you lived in Wisconsin, you would understand that the forms need to be updated, as the laws have changed quite a bit in Wisconsin over the past 5 years. Those changes affect what can and cannot be in a lease. As to your point about not incurring unnecessary costs, the forms I am referring to are free and specific to Wisconsin. I hope you have a good weekend. 

Thank you, @Tanya F. and @Yashira Zavala! The plan is to continuously add and update forms and content, so if you have any requests or recommendations, feel free to make them.

@Casey Kooiman, 

You should also check out https://rezental.com/wiforms/. Admittedly, I am the author of the forms so it is a bit of self-promotion, but they are free, up-to-date, and specific to Wisconsin, as well. Hopefully you find them helpful. 

@Adam Kozuch is mostly correct. You can charge for the "actual cost" of the credit report up to $20.  See s. ATCP 134.05(4), Wis. Admin. Code. The landlord "shall provide the prospective tenant with a copy of the report." It is not optional. Also, if the prospective tenant provides the landlord with a consumer credit report that is less than 30 days old, the landlord cannot require the prospective tenant to pay for a new one (this does not stop the landlord from paying for a new one). Any money that does not go toward that credit report is considered earnest money, and you must follow all the rules that come with accepting earnest money. 

Definition of earnest money deposit (s. ATCP 134.02(3), Wis. Admin. Code):

There are various requirements for what a landlord has to do before accepting an earnest money deposit, such as identifying the unit or units for which the applicant is being considered and furnishing the prospective tenant with a copy of the rental agreement and the rules and regulations.

Once the earnest money is accepted (anything above the credit check fee), the landlord can keep it only under limited circumstances. Also, if the landlord approves the tenant and enters into a rental agreement, that earnest money deposit must be applied as rent or as a security deposit, or returned to the tenant. 

The safest thing to do is not charge an application fee, except maybe to cover the cost of a credit check fee, up to $20.

Atty Gregg Willich, Willich Law Office, LLC

Author of free Wisconsin rental forms at rezental.com.

This is provided as general information only, and should not be construed as legal advice. Please contact an attorney for your specific legal needs.