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WRA Chapter 2 Questions with verified solutions | Already Passed
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WRA Chapter 2 Questions with verified solutions | Already Passed
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WRA Chapter 2 Questions withverified solutions | Already Passed
It is illegal for a firm to pay a referral fee to a secretary for business the secretary refers to the firm.
✔✔True
Explanation:
Wisconsin law declares that no licensed firm or corporation may pay a fee for a referral to any person
who is not licensed to practice real estate.
A listing firm and a seller use an exclusive right to sell listing contract to create implied agency. ✔✔False
Explanation:
Parties using a written contract create an express agency relationship.
A listing agreement typically creates a special agency. ✔✔True
Explanation:
,Unless the listing contract states the contrary, the listing firm is given the right to represent the seller in
one specific transaction.
To create an open listing, the parties would modify the exclusive agency contract. ✔✔False
Explanation:
To create an open listing, the parties would modify the exclusive right to sell listing contract rather than
an exclusive agency contract. The exclusive right to sell listing contract is the only state-approved listing
contract.
A buyer pays the buyer's firm according to the terms of the listing contract. ✔✔False
Explanation:
A buyer pays a buyer's firm according to the terms of the buyer agency agreement.
A real estate firm that charges a high commission to create an impression that the firm's licensees
are sophisticated and offer excellent customer service is price fixing in violation of the Sherman
Antitrust Act. ✔✔False
Explanation:
An individual company making independent decisions about commission rates and structures is not price
fixing. Two or more firm working together to develop policies setting commissions is price fixing.
A firm can pay an unlicensed personal assistant $50.00 for each lead the assistant generates through a
telemarketing campaign. ✔✔False
, Explanation:
An unlicensed personal assistant must be paid an hourly wage or salary. Compensation based on
success or sales, such as commission or bonuses, is illegal fee-splitting with a non-licensee.
Sonja is a salesperson for Firm A but she is going to transfer her license to Firm B. Sonja should
contact her current listings to discuss early termination so she can transfer them to new listing
agreements when she is at Firm B. ✔✔False
Explanation:
Agency agreements are between the firm and the client. Licensees do not have the legal authority to
terminate or shorten the term of an agency agreement or reduce the commission without the
written consent of the supervising broker.
A business owner contacts a firm to list a property. The business owner contacts another firm to help
find a new home and a third firm to help find storefronts in strip malls. Can the business owner use
three different firms for these transactions? How can the business owner draft the three agency
agreements so it is clear which firm is responsible for which transaction? ✔✔The business owner can
hire a separate firm for each transaction. To list a property, the business owner and the firm execute a
listing contract. To hire a buyer's firm to look for different properties, the business owner would tailor
each buyer agency agreement to limit the properties for which each firm would earn a commission. For
example, the buyer agency agreement that the business owner used to hire the firm to look for a home
would exclude all non-residential properties. The buyer agency agreement the business owner used to
hire the firm to look for storefronts would exclude all non-commercial properties. There are different
ways a buyer and a firm can draft a buyer agency agreement to limit the agreement to certain
properties or types of property.
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