Wisconsin Real Estate Exam Prep
Questions With Correct Answers
2024/2025
A seller signs listing contract with firm. Who is the agent who is the principal? - Correct Answer Seller is the principal, firm is the agent.
If you are the listing agent and a buyer asks you to write an offer but does not sign an agency agreement, how do you describe the buyer? - Correct Answer Customer
What kind of agency is the firm practicing if they represent just one party in a transaction? - Correct Answer Single Agency
When can a firm engage in multiple representation? - Correct Answer When buyer and seller consent and receive full written disclosure.
In what kind of transaction must a firm provide agency disclosure? - Correct Answer ALL TRANSACTIONS 1-4 family need to sign
By when must a firm provide agency disclosure to client? Customer? - Correct Answer Before or at the same time executing client agency agreement. Before negotiations for customer.
If you are a buyers agent by when must you disclose your agency relationship to seller or listing firm. - Correct Answer First chance you get, first contact when parties exchange information about transaction or the seller, showing of property, any other negotiation with seller or listing firm.
What are listing firms agency disclosure obligations when working with a customer who wants to write an offer on a duplex? Commercial warehouse? - Correct Answer Must provide disclosure in ALL transactions, 1-4 family must sign, commercial no signature required.
When does a property manager need to have a real estate license? - Correct Answer If
they are negotiating terms or signing leases on behalf of the landlord.
If a licensee is representing a family member who is writing an offer, what are the disclosure obligations? Does it matter if they are a client or customer? - Correct Answer Disclose in writing and offer to purchase. Written consent from all parties.
What are the licensees disclosure obligations if receiving a referral fee from lawn maintenance company? Referral between agents? - Correct Answer Before or at time licensee makes they referral, must disclose in writing that they will receive compensation from lawn care company. Licensees do not need to disclose referral fees for real estate services.
When must a licensee disclose that they hold a real estate license when selling their own home? Commercial property owned by licensee? - Correct Answer First contact with party or agent where information is being exchanged, showing property or other negotiations.
What tie in arrangements are legal? - Correct Answer If builder and licensee own property, the buyer has to use builder. Builder and licensee selling improved - need to pick from house and use builder. Deed restrictions — use builder to achieve uniformity.
Who can retain unlicensed personal assistant? Licensed? - Correct Answer Anyone can hire unlicensed assistant. Firm can only hire licensed.
When can agent agree to write an offer for a buyer on a property only if the buyer agrees to list buyers current property with agent? - Correct Answer NEVER-ILLEGAL
Which agent duty survives the transaction? - Correct Answer Confidentiality
What duties does a firm owe to all parties in a transaction? - Correct Answer Fair and honest treatment, disclosure of material adverse facts, confidentiality, provision of accurate market condition information, reasonable skill and care, accounting, objective presentation of offers.
What are the additional duties owed to a client? - Correct Answer Loyalty, Advice, Disclosure, Obedience (Obligation), Negotiation
When a firm has a multiple representation relationship with designated agency, to whom
will each salesperson provide information, opinions, advice? - Correct Answer Each client receives full negotiation services from their designated agent.
How should a client withdraw consent to a multiple representation relationship? - Correct Answer In writing. Amend agency agreement, terminate agreement and be a customer or hire a different firm.
How should a client waive a firms duty of negotiation? - Correct Answer In writing.
Which type of agency representation is created with written words? - Correct Answer Express agency
Which type of agency relationship gives an agent the authority to represent a principal in more than one transaction? - Correct Answer General agency
What are the seven different ways to terminate an agency relationship? - Correct Answer Death or Incapacity, Destruction or Condemnation of Property - Eminent Domain, Expiration of Term of the Contract, Mutual Agreement, Breach, Operation of Law, Completion.
Which agency contracts do not require the seller to pay a commission to the listing firm when the buyer is procured? - Correct Answer Open Listing Contract / Exclusive Agency
What type of listing contract is illegal in Wisconsin? - Correct Answer Net Listing Contract
What are the six requirements to create a valid agency agreement? - Correct Answer Description of Real Estate, Statement of Price, Statement of the Commission, Statement of the Term, In Writing, Signed by the Person Who Will Pay the Commission (doesn't have to be buyer or seller).
In an unmodified WB-36 Buyer Agency / Tenant Representation Agreement, does a buyer's firm have to be directly involved in negotiations in order to earn a commission? -
Correct Answer NO, property was found, buyers firm earns commission.
What are the three remedies if an agent breaches and agency agreement? - Correct Answer Rescission, Forfeiture of Commission, Sue for Damages
Who are the parties to the listing contract? - Correct Answer Seller & Firm
How many days does a firm have to deliver to the seller the list of protected buyers? - Correct Answer 3 Days
The seller accepts the responsibility for preparing the property to minimize the likelihood
of injury, damage and/or loss of personal property. When will a firm be held responsible? - Correct Answer In the case of negligence or wrongdoing
Once a buyers firm earns compensation, when is it due and paid? - Correct Answer At the earlier of closing or date set for closing even if transaction does not close, unless otherwise agreed in writing.
How long is the listing period extended for protected buyers in the WB-1 Residential Listing Contract Extension of Listing Provision? - Correct Answer 1 year
How many days does the seller have to provide the new listing firm with the previous listing firm's protected buyer list? - Correct Answer 7 days (Seller Seven)
On what line of the WB-1 Residential Listing Contract does it state that they buyer may accompany inspectors? - Correct Answer Lines 260-262
