WRA EXAM QUESTIONS WITH CERTIFIED SOLUTIONS

WRA EXAM QUESTIONS WITH CERTIFIED SOLUTIONS The WB-11 Residential Offer to Purchase describes which of the following as the way an earnest money payment should be handled as a result of a sale involving cooperating firms? The selling licensee should have all earnest money checks paid directly to the listing firm... Explanation: The Earnest Money section of the offer states: "Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker." An appraisal would most likely be used in all of the following transactions or situations EXCEPT: subletting an apartment unit.... Value does not need to be established in order to sublet an apartment unit. A buyer has an inspection contingency in the offer to purchase that does not give the seller the right to cure. The home inspector finds a defect during the inspection. The buyer would like the seller to repair the defect according to the buyer's specifications. If the seller does not want to repair the defect as specified by the buyer then the buyer is no longer interested in purchasing the property. How would you accomplish this for the buyer? Deliver an amendment to the seller specifying the repairs that must be made and if the seller does not agree then deliver a notice of defects. ...Explanation: Because the seller does not have the right to cure, delivering a notice of defects will terminate the offer. The buyer should first try and negotiate the repairs by amending the offer. If the seller does not agree to the amendment, then issuing the notice will terminate the offer. Which of the following would violate advertising rules for real estate licensees? Advertising a property that has already been sold. ...Explanation: Wis. Admin. Code § REEB 24.04(1) states, "Licensees shall not advertise in a manner which is false, deceptive, or misleading." At closing, the seller needs to give a credit to the buyer for property taxes. Last year's taxes were $3,700 and there are 242 days from the first of the year through the day of closing. How much will the buyer's tax credit be? $2,443.02... Explanation: $3,700 / 365 day year = $10.1370 daily proration. $10.1370 x 241 days between January 1 and the day prior to closing = $2,443.02. The right of a governmental body to take ownership of real estate for public use is called: eminent domain...Explanation: Eminent domain is one form of police power and is the power of a governmental body to take ownership of real estate for a public use. Rental property is sold to a new owner. Tenants remain under a written lease. The new owner wants to raise the rent. When can the new owner raise the rent? When the lease with the current tenants expires Explanation: Unless the terms of the tenants' current lease permit an increase in rent, the new owner must wait until the lease expires and execute a new lease at the desired rent. Which of the following activities can an unlicensed personal assistant do? Schedule appointments. Explanation: An unlicensed personal assistant cannot do any activities that would require a real estate license such as showings, open houses, or completing forms. An unlicensed assistant can complete activities that do not require a license such as scheduling appointments. A city zoning board changes the zoning for a single parcel of property to meet a public need. This would be called: spot zoning...Explanation: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. A licensee is listing a 4-bedroom, two-story house. Which of the following would be the most suitable comparable property? A 3-bedroom, two-story house that was recently sold in the same neighborhood as the listed property. Explanation: A comparable property is a similar property currently being sold. The maximum value of a property tends to be established by value of similar properties that have recently sold. A foreclosed property does not provide a good comparison because it is not an arm's length sale. Evelyn and her boyfriend, Noah, are getting married, and are looking to purchase a new home. They have asked you as their real estate licensee for ad