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WRA Final Exam Practice Questions & answers
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WRA Final Exam Practice Questions & answers
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WRA Final Exam PracticeA selling licensee can receive a commission from the:
A:selling firm
B:buyer
C:buyer's firm
D:seller - CORRECT ANSWER-selling firm
Wis. Stat. § 452.14(3)(f) Disciplinary proceedings shall be conducted by the
board if it finds that a licensee accepted from any person except the firm with
which the licensee is associated, if the licensee is associated with a firm, a
commission or valuable consideration for the performance of any act specified in
this chapter or as compensation for referring a person to another licensee or to
any other person in connection with a transaction.
Four condominium units are valued at $200,000; $215,000; $220,000; and
$225,000; a total value of $860,000. The four condominiums have an annual
property maintenance fee $8,500. The amount of the property maintenance fee
owed by each unit is based upon the unit's value in relation to the total value of
all four units; what is the monthly maintenance fee of the most expensive unit?
A:$184.17
B:$2,125.00
C: $177.08
D: $708.33 - CORRECT ANSWER-$184.17
The most expensive unit is $225,000. The total value of all the units is $860,000.
$225,000 / $860,000 = .2616 or 26%. The annual maintenance fee for all the
units is $8,500. $8,500 x .26 = $2,210 per year for the most expensive unit.
$2,210/12 months determines the monthly maintenance fee of the most
expensive unit is $184.17.
According to the WB-11 Residential Offer to Purchase who is responsible to pay
special assessments levied against a seller's property after the date of the offer
but prior to acceptance?
A:Buyer
B:Selling firm
,C:Seller
D:Listing firm - CORRECT ANSWER-Buyer
Lines 416-418 of the WB-11 Residential Offer to Purchase.
A borrower is obtaining a loan for $130,000. The loan is 95% of the property's
value. The interest rate on the loan is 5% after the borrower pays two points.
How much do the two points cost the borrower?
A:$2,500
B:$2,600
C:$2,700
D:$2,800 - CORRECT ANSWER-$2,600
$130,000 principal loan amount x .02 = $2,600 cost of points.
Which of the following likely constitutes secondary mortgage market fraud?
A:A loan officer telling the seller and buyer to enter into a side agreement that will
not be shared with the secured lender.
B:A buyer applying for a loan even though it will be difficult to make the monthly
payments.
C:A real estate licensee drafting an amendment indicating that the seller will be
escrowing cash at closing to pay for repairs.
D:A seller agreeing to give the buyer a purchase money mortgage at closing. -
CORRECT ANSWER-A loan officer telling the seller and buyer to enter into a
side agreement that will not be shared with the secured lender.
Mortgage fraud occurs anytime a participant in a real estate transaction
misrepresents facts with the intent to swindle another party of money. The key to
committing mortgage fraud is keeping terms of a transaction away from the
secured lender. Licensees should never draft paperwork that misrepresents the
terms of a transaction and they are obligated to disclose all terms of a real estate
transaction to the secured lender.
Which of the following is NOT an essential term of a real estate sales contract?
A:An inspection contingency
B:The signatures of the parties
C:The identity of the parties
,D:The price - CORRECT ANSWER-An inspection contingency
An inspection contingency is not an essential term of a real estate contract. Wis.
Stat. § 706.02 Conveyance of Real Property requires the following of a contract:
identifies the parties, identifies the land, identifies the interest conveyed and any
material term condition, is signed by or on behalf of each of the grantors, is
signed or joined in by separate conveyance by or on behalf of each spouse, and
is delivered.
Which of the following situations requires a written earnest money disbursement
agreement prior to disbursement of funds when the earnest money is held by the
listing firm?
A:A party makes a counter-offer not acceptable to the other party
B:The seller rejects the offer
C:The seller has not accepted the offer and the offer has expired
D:A buyer is not able to obtain financing - CORRECT ANSWER-A buyer is not
able to obtain financing
The listing firm cannot do anything with the earnest money for 60 days after the
scheduled closing date unless the parties reach a written agreement for the
disbursement of the earnest money. The listing firm may wish to write a
memorandum or letter to the buyer and seller and their respective attorneys, if
any, pointing out lines 71-81 of the WB-11 Residential Offer to Purchase and
explaining that this is how the earnest money disbursement must be handled. It
is then up to the parties to work out their differences by negotiation or by going to
small claims court.
A licensee drafts an offer on behalf of some buyers. The husband is not available
to sign the offer so tells his wife to sign his name. The offer was delivered back to
the buyer. What is the status of the offer?
A:Valid
B:Unenforceable
C:Voidable
D:Void - CORRECT ANSWER-Void
The offer is void. There was never a contract because the essential elements of
the contract were never met. Wis. Stat. § 706.02 states that a contract to convey
, must be signed by or on behalf of all parties and 706.03(1m) states that a
conveyance signed by one purporting to act as agent for another shall be
ineffective as against the purported principal unless such agent was expressly
authorized, and unless the authorizing principal is identified as such in the
conveyance or in the form of signature. If the wife had written permission to act
as the husband's principal and indicated such on the offer then there would be a
binding contract.
When a depository institution remits the interest earned on a firm's
interest-bearing trust account to the Department they must inform the firm of all
the following EXCEPT the:
A:Account balance
B:Service charges on the account
C:Interest earned on the account
D:Rate of interest applied to the account - CORRECT ANSWER-Interest earned
on the account
Wis. Stat. § 452.13(2)(e)(1) When a depository institution remits interest to the
Department they must furnish to the firm maintaining the interest-bearing trust
account the rate of interest applied, the amount of service charges or fees
deducted, if any, and the account balance for the period that the statement
covers. The firm does not receive information on the interest that was actually
paid.
A city zoning board changes the zoning for a single parcel of property to meet a
public need. This would be called:
A:nonconforming use
B:spot zoning
C:downzoning
D:a variance - CORRECT ANSWER-spot zoning
Spot zoning occurs when a single parcel of land rezoned. A variance allows a
parcel to violate permanently a zoning law. Downzoning changes the use of all
the properties within a zoning district.
What is a planned unit development?
A:A regulatory framework for protecting land near bodies of navigable water
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