REAL ESTATE -WISCONSIN || WITH COMPLETE
SOLUTIONS.
Malcolm loves his apartment, even though he's rarely there. His job in international development
has him on the road for months at a time. He doesn't have to worry about missing out on his lease
renewal, though, because he has ______.
A. A freehold estate
B. An estate at will
C. An estate for years
D. A periodic estate correct answers D.
What must sellers provide prospective buyers of homes built prior to 1978, in addition to the
federally required disclosure form?
A. EPA lead safety pamphlet
B. List of reputable home improvement contractors
C. Verbal assurance that the home is lead-free before offering it for sale
D. Written proof that the home is lead-free correct answers A.
Rusty received an acceleration letter from his mortgage lender. What is the most likely reason for
receiving this letter?
A. Rusty failed to pay his property taxes.
B. Rusty has paid off his mortgage.
C. Rusty is two or three months in default.
D. Rusty's mortgage is being sold on the secondary market. correct answers C.
Cheryl and Roberto just signed a contract for Cheryl to buy Roberto's house for $235,000.
Roberto owes $48,750 on his current mortgage, he's going to replace the old furnace ($800), he's
agreed to pay 3% toward closing costs, and he'll pay a 6% commission to his agent. How much
in whole dollars will he have left to put down on the condo he wants to buy?
A. $164,300
B .$164,771
C. $167,696
D. $168, 688 correct answers A.
Roberto's closing costs will be $7,050 ($235,000 x 0.03) and commission will be $14,100
($235,000 x 0.06). If you subtract all the costs given ($7,050, $14,100, plus the $800 furnace,
and the $48,750 mortgage payoff) from the $235,000 price, you end up with $164,300.
Which of these statements accurately represents one of the required elements in a deed?
A. The deed includes an act of conveyance.
B. The grantee must be legally competent.
C .The grantee must be of legal age.
D. The grantee must sign the deed and provide consideration. correct answers A.
,Jessie, the buyer's agent, decides to informally inspect the property while she waits for the
professional inspection. She notices a small puddle of water in the basement behind a stack of
boxes. Later, Jessie calls the seller's agent and tells him what she found. The agent tells her not to
worry; the seller is aware of the leak and plans to have it fixed within the week. Which one of
these statements about this situation is true?
A. Jessie can check the basement later to be sure the leak is fixed.
B. Jessie can rely on the inspector to discover and disclose the leak.
C. Jessie should disclose this to her buyer.
D. Since the seller intends to fix the leak, Jessie doesn't need to disclose it to her buyer. correct
answers C.
Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help them
purchase their dream house now that he's retired, but one that has the necessary accommodations
for the admiral's disability. They also confide in you that they don't have a lot of money saved up
for a down payment. Which type of financing may work best for them?
A. A conventional loan combined with a seller carry back.
B. A conventional loan using the admiral's retirement money as a down payment.
C. An FHA 203(k) loan to fix their new home up.
D. A VA loan, which requires no down payment. correct answers D.
The daily property tax rate is $1.23 and closing is August 31. Assuming the buyer owns the
property on closing day, and the seller hasn't made any payments, what will the seller owe at
closing using the calendar year proration method? Round to the nearest whole dollar.
A. $151
B. $242
C. $298
D. $449 correct answers C.
The seller owes $298. The seller owns the property for 242 days of the year, and 242 days ×
$1.23 = $297.66, or $298 if rounded to the nearest whole dollar.
Jenna plans to apply for her Wisconsin real estate license. She currently holds a Minnesota
salesperson's license and has been an active licensee there for four years. Which of these
methods is most appropriate for Jenna's application?
A. Apply as an endorsement applicant.
B. Apply as a reciprocal licensee.
C. Apply for her Wisconsin broker's license.
D. Transfer her Minnesota license to Wisconsin. correct answers A.
A property appraises at $320,000. If the assessment rate is 100% and the tax rate is $1 per $100,
what are the semi-annual property taxes?
A. $1,100
B. $1,600
C. $2,200
D. $3,200 correct answers B.
, $1 ÷ 100 = .01 tax rate; $320,000 × .01 = $3,200. Divide by two to get semi-annual taxes:
$1,600.
When it comes to commingling of funds, are there any exceptions to the law?
A. No
B. Yes, any funds that are real estate transaction-related
C. Yes, funds needed to cover bank fees or charges
D. Yes, if it's for less than 24 hours correct answers C.
The secondary mortgage market buys loans from the primary market. How does this aid the
lending market?
A. Avoid foreclosure of borrower properties
B. Ensure funds are available to borrowers
C. Prevent bank runs by consumers
D. Streamline lenders' bankruptcy processes correct answers B.
Which of the following is a latent defect?
A. The fact that the air conditioning unit is 12 years old.
B. The fact that the electrical wiring is not up to code.
C. The fact that there are broken roof tiles near the entryway.
D. The fact that there's termite damage in the backyard deck. correct answers B.
When a Wisconsin licensee is involved in a real estate transaction, which of these would
constitute a personal interest in the property?
A. The licensee lived in the home as a child 20 years ago.
B. The property is owned by another licensee from a different brokerage.
C. The property is owned by the licensee's acquaintance.
D. The property is owned by the licensee's grandparents. correct answers D.
Anita's property appraised at $370,000. It is assessed at 40% of appraised value, and the tax rate
is 80 mills. What are Anita's semi-annual property taxes?
A. $11,840
B. $4,875
C. $5,920
D. $8,950 correct answers C.
Divide mills by 1,000 (80 ÷ 1,000 = .08). Assessed value is 40% of appraised value, so
multiply .4 by $370,000 = $148,000. Multiply this by the mill rate (.08) to get annual taxes of
$11,840. Divide this by two to get semi-annual property taxes of $5,920.
Historically, what do property values tend to do over long periods of time?
A. Decrease
B. Historically, property values have not followed a consistent pattern.
