Wisconsin Real Estate Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
A seller signs a listing contract with a firm. Who is the agent and who is the principal?
______________ - CORRECT ANSWER The seller is the principal. The firm is the agent.
A buyer asks a listing agent to draft an offer. The buyer does not sign a buyer agency agreement. Is the
buyer a customer or a client? - CORRECT ANSWER The buyer is a customer.
What kind of agency is a firm practicing if the firm represents just one party in the transaction? -
CORRECT ANSWER Single agency
When can a firm engage in multiple representation? - CORRECT ANSWER Written consent of
both parties, agency disclosure to both parties
In what kind of transactions must a firm provide agency disclosure?
____________________________ - CORRECT ANSWER All transactions (residential,
commercial, vacant land etc.)
By when must a firm provide agency disclosure to a client? A customer?
_________________________ - CORRECT ANSWER Before or at the time of entering into
the agency agreement
By when must a buyer's agent disclose the buyer agency relationship to the seller or the listing firm?
_____ - CORRECT ANSWER The earliest of first contact, a showing, or any other
negotiations with the seller or the listing firm.
What are a listing firm's agency disclosure obligations when working with a customer who wants to
write an offer on a duplex? What if the buyer wants to write an offer on a commercial warehouse? -
CORRECT ANSWER Provide agency disclosure to buyer for duplex and ask that buyer to sign
the agency disclosure because this is a 1-4 family transaction. Provide agency disclosure to buyer for
commercial warehouse but you do not have to ask that buyer to sign because it is not a 1-4 family
property.
,When does a property manager need to have a real estate license? ____________________________
- CORRECT ANSWER If signing or negotiating leases on behalf of the property owner.
If a licensee is representing a family member who is writing an offer on a property, what are the
licensee's disclosure obligations? customer? _____ - CORRECT ANSWER Disclose the
relationship in writing and obtain consent of both parties.
What are a licensee's disclosure obligations if the licensee is going to receive a fee from referring a
lawn maintenance company? What if the licensee is a listing agent who is referring a client to a
buyer's agent? - CORRECT ANSWER For the lawn maintenance company, disclose the
potential referral fee in writing before or at the time of making the referral. Referral fees from license
to license do not need to be disclosed.
When must a licensee disclose that the licensee holds a real estate license when selling the licensee's
own home? What if the licensee is selling commercial property owned by the licensee? ____ -
CORRECT ANSWER The earliest of first contact, a showing, or any other negotiations. The
disclosure shall be in writing and is the same whether selling personally owned home or commercial
property.
What tie-in arrangements are legal? - CORRECT ANSWER +Condition the sale of vacant land
owned by the licensee upon the buyer's agreement to use a specific builder if the builder co-owns the
property with the licensee.
+Condition the sale of vacant land owned by the licensee upon the buyer's agreement to use a specific
builder if the builder and the licensee are the same person.
+Condition the sale of vacant land owned by the license upon the buyer's agreement to use a specific
builder if the agreement to use the builder is a legitimate effort to maintain developmental quality/
architectural uniformity and no compensation passes from the builder to the licensee.
Who can retain an unlicensed personal assistant? Who can retain a licensed personal assistant?
_______ - CORRECT ANSWER Unlicensed personal assistant - anyone. Licensed personal
assistant - just the firm.
Which agency duty survives the transaction? - CORRECT ANSWER Confidentially
16. What duties does a firm owe to all parties in a transaction?
_______________________________________ - CORRECT ANSWER Provide brokerage
services to all parties honestly and fairly.
, Provide brokerage services with reasonable skill and care.
Timely disclose material adverse facts in writing that the firm knows and that the party does not know
or cannot discover through reasonably vigilant observation, unless the disclosure is prohibited by law.
Keep confidential any information given to the firm, or any information obtained by the firm that the
firm knows a reasonable party would want to be kept confidential, unless the information must be
disclosed by law or the person whose interests may be adversely affected by the disclosure
specifically authorizes the disclosure of particular information.
Provide accurate information about market conditions that affect a person's transaction to any party
who requests the information, within a reasonable time of the person's request.
Safeguard trust funds and other property held by the firm as required by statute and rule.
When negotiating on behalf of a party, present contract proposals in an objective and unbiased manner
and disclose the advantages and disadvantages of the proposals.
What are the additional duties owed to a client?
______________________________________________ - CORRECT ANSWER Loyally
represent the client's interests by placing the client's interests ahead of the firm's interest.
Provide, when requested by the client, information and advice to the client on matters that are material
to the client's transaction and that are within the scope of the knowledge, skills and training required
of a licensee.
Disclose all material facts affecting the transaction, not just adverse facts. (divorcing spouses list with
two firms = owe two commissions, seller's daughter wants to offer selling bonus)
Fulfill any obligation required by the agency agreement (listing contract/buyer agency agreement) and
any order of the client that is within the scope of the agency agreement and is consistent with other
duties.
Negotiate on behalf of the client unless released from this duty. [The duty of negotiation may be
waived by a client in part or full, if an express written waiver of negotiation duties is made by the
client.]
When a firm has a multiple representation relationship with designated agency, to whom will each
salesperson provide information, opinions, and advice? - CORRECT ANSWER Their
respective clients.
How should a client withdraw consent to a multiple representation relationship?
_____________________ - CORRECT ANSWER In writing.
ACTUAL QUESTIONS AND CORRECT
ANSWERS
A seller signs a listing contract with a firm. Who is the agent and who is the principal?
______________ - CORRECT ANSWER The seller is the principal. The firm is the agent.
A buyer asks a listing agent to draft an offer. The buyer does not sign a buyer agency agreement. Is the
buyer a customer or a client? - CORRECT ANSWER The buyer is a customer.
What kind of agency is a firm practicing if the firm represents just one party in the transaction? -
CORRECT ANSWER Single agency
When can a firm engage in multiple representation? - CORRECT ANSWER Written consent of
both parties, agency disclosure to both parties
In what kind of transactions must a firm provide agency disclosure?
____________________________ - CORRECT ANSWER All transactions (residential,
commercial, vacant land etc.)
By when must a firm provide agency disclosure to a client? A customer?
_________________________ - CORRECT ANSWER Before or at the time of entering into
the agency agreement
By when must a buyer's agent disclose the buyer agency relationship to the seller or the listing firm?
_____ - CORRECT ANSWER The earliest of first contact, a showing, or any other
negotiations with the seller or the listing firm.
What are a listing firm's agency disclosure obligations when working with a customer who wants to
write an offer on a duplex? What if the buyer wants to write an offer on a commercial warehouse? -
CORRECT ANSWER Provide agency disclosure to buyer for duplex and ask that buyer to sign
the agency disclosure because this is a 1-4 family transaction. Provide agency disclosure to buyer for
commercial warehouse but you do not have to ask that buyer to sign because it is not a 1-4 family
property.
,When does a property manager need to have a real estate license? ____________________________
- CORRECT ANSWER If signing or negotiating leases on behalf of the property owner.
If a licensee is representing a family member who is writing an offer on a property, what are the
licensee's disclosure obligations? customer? _____ - CORRECT ANSWER Disclose the
relationship in writing and obtain consent of both parties.
What are a licensee's disclosure obligations if the licensee is going to receive a fee from referring a
lawn maintenance company? What if the licensee is a listing agent who is referring a client to a
buyer's agent? - CORRECT ANSWER For the lawn maintenance company, disclose the
potential referral fee in writing before or at the time of making the referral. Referral fees from license
to license do not need to be disclosed.
When must a licensee disclose that the licensee holds a real estate license when selling the licensee's
own home? What if the licensee is selling commercial property owned by the licensee? ____ -
CORRECT ANSWER The earliest of first contact, a showing, or any other negotiations. The
disclosure shall be in writing and is the same whether selling personally owned home or commercial
property.
What tie-in arrangements are legal? - CORRECT ANSWER +Condition the sale of vacant land
owned by the licensee upon the buyer's agreement to use a specific builder if the builder co-owns the
property with the licensee.
+Condition the sale of vacant land owned by the licensee upon the buyer's agreement to use a specific
builder if the builder and the licensee are the same person.
+Condition the sale of vacant land owned by the license upon the buyer's agreement to use a specific
builder if the agreement to use the builder is a legitimate effort to maintain developmental quality/
architectural uniformity and no compensation passes from the builder to the licensee.
Who can retain an unlicensed personal assistant? Who can retain a licensed personal assistant?
_______ - CORRECT ANSWER Unlicensed personal assistant - anyone. Licensed personal
assistant - just the firm.
Which agency duty survives the transaction? - CORRECT ANSWER Confidentially
16. What duties does a firm owe to all parties in a transaction?
_______________________________________ - CORRECT ANSWER Provide brokerage
services to all parties honestly and fairly.
, Provide brokerage services with reasonable skill and care.
Timely disclose material adverse facts in writing that the firm knows and that the party does not know
or cannot discover through reasonably vigilant observation, unless the disclosure is prohibited by law.
Keep confidential any information given to the firm, or any information obtained by the firm that the
firm knows a reasonable party would want to be kept confidential, unless the information must be
disclosed by law or the person whose interests may be adversely affected by the disclosure
specifically authorizes the disclosure of particular information.
Provide accurate information about market conditions that affect a person's transaction to any party
who requests the information, within a reasonable time of the person's request.
Safeguard trust funds and other property held by the firm as required by statute and rule.
When negotiating on behalf of a party, present contract proposals in an objective and unbiased manner
and disclose the advantages and disadvantages of the proposals.
What are the additional duties owed to a client?
______________________________________________ - CORRECT ANSWER Loyally
represent the client's interests by placing the client's interests ahead of the firm's interest.
Provide, when requested by the client, information and advice to the client on matters that are material
to the client's transaction and that are within the scope of the knowledge, skills and training required
of a licensee.
Disclose all material facts affecting the transaction, not just adverse facts. (divorcing spouses list with
two firms = owe two commissions, seller's daughter wants to offer selling bonus)
Fulfill any obligation required by the agency agreement (listing contract/buyer agency agreement) and
any order of the client that is within the scope of the agency agreement and is consistent with other
duties.
Negotiate on behalf of the client unless released from this duty. [The duty of negotiation may be
waived by a client in part or full, if an express written waiver of negotiation duties is made by the
client.]
When a firm has a multiple representation relationship with designated agency, to whom will each
salesperson provide information, opinions, and advice? - CORRECT ANSWER Their
respective clients.
How should a client withdraw consent to a multiple representation relationship?
_____________________ - CORRECT ANSWER In writing.
