©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Wisconsin Real Estate License Exam Study
Guide.
Agency - answer✔the foundation upon which real estate brokerage is practiced. It describes a
legal and ethical relationship between a real estate firm and a party to a transaction.
Licensee - answer✔Any person licensed under state law to practice real estate.
Broker - answer✔A person that, for another person, and for commission, money or other thing
of value, negotiates or offers or attempts to negotiate, whether directly or indirectly.
A party is negotiating when: - answer✔1) Acting as an intermediary by facilitating between a
parties transaction.
2) Completing appropriate forms and writing documents
3) Presenting party proposals of other parties and explaining provisions.
Exchange - answer✔tax-planing tool for property owner to exchange one property for another
and defer payment of the tax on income earned on the transfer. The tax is differed not tax free
(starker).
Option to Purchase - answer✔An agreement to keep open, for a set period, an offer to sell or
lease real property. (layaway) Buyer pays an option fee for the right to purchase by agreed
terms. Unilateral sale...buyer doesn't have to buy buy seller has to sell.
Business Sale - answer✔Any type of business that is for sale including the goodwill of an
existing business and all the assets, with or without real estate.
Who doesn't need a license? - answer✔1) Persons appointed under the order of the court
2) Public officers
3) Manager of residential building who shows a residential unit to prospective tenants
4) Attorneys
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, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Firm - answer✔Any licensed individual broker acting as a sole proprietor or a licensed broker
business entity
Salesperson - answer✔Any person associated with a firm, other than a broker or individual who
is not required to hold a license. Must be associated with firm and if it loses its license must
stop practicing immediately.
Agent - answer✔Acts on behalf of a principal, such as a buyer or seller, and carries out the
directions of the principal.
Client - answer✔A party represented by a broker in an agency relationship in which the agent
represents their interests
Principal Firm - answer✔A firm that engages a subagent to provide brokerage services in a
transaction. Many times its the listing firm.
Subagent - answer✔Firm that is engaged by a principal firm to provide brokerage services in a
transaction, but is not associated with the principal firm.
Customer - answer✔Party to a transaction who receives brokerage services, such as drafting an
offer to purchase from a firm but who is not the firm's client. Doesn't enter into agency
agreement.
Agency Models - answer✔There are three different options that a client chooses that with
structure the relationship with the firm.
Single Agency - answer✔When a firm represents either the buyer or the seller as a client, but
never both in the same transaction.
Multiple Representation - answer✔Firm represents two or more clients in the same
transactions. When buyer and seller are both clients of the same firm and participation in the
same transaction. Both parties must consent. Client can withdraw at any time (in writing).
Multiple Representation without designated Agency - answer✔Firm provides services as agreed
to in the clients' agency agreements, but the firm must take a neutral position in the
transaction negotiations. Agent cannot place the interest of one client ahead of another.
Multiple Representation with Designated Agency - answer✔The firm represents multiple
parties in the transaction. Firm designates an agent to each client and the designated agent
does not have to remain neutral in the transaction.
Fiduciary - answer✔Person who is responsible for the property of another
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, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Cooperating Firm - answer✔Firms the cooperate with the listing firm in one transaction. Can
either be the seller's firm or the cooperating firm.
Listing FIrm - answer✔Firm that the seller hires with the listing contract. The seller is their client
whom they represent.
Listing Agent/Licensee - answer✔Agent associated with firm who secures and executes the
listing contract.
Selling Firm - answer✔Firm that finds the buyer and writes the offer. Subagent of the listing
firm.
Selling Agent/Licensee - answer✔Finds the buyer and writes offer.
Buyers Firm - answer✔Firm the signs a buyer agency agreement with a buyer. Buyer is a client.
Buyer's Agent/Licensee - answer✔Associated with the buyer's firm who drafts the offer for the
buyer-client.
Duties for Subagents - answer✔Firm engaged by a principal firm to provide brokerage services
in a transaction, but that is not associated with the principal firm. Owes all duties owed to all
persons as well as the duty of loyalty to the seller.
Customer Agency Disclosure Obligations - answer✔To customers, cannot negotiate on behalf
unless the licensee provides them with state-mandated disclosure statements. Can disclose
plain-language summary.
Client Agency Disclosure Obligations - answer✔To clients, must provide the state written
disclosure statements no later that the time the firm enters into an agency.
Providing Agency Disclosure - answer✔Must provide in all transactions to either clients or
customers depending on each situation.
Disclosure Obligations by Buyer's Firm - answer✔Firm that represents the buyer who is working
directly with the the seller, must notify the seller during first contact, a showing of the property,
or any other negotiations with the seller.
Disclosure of Compensation and Interests - answer✔Licensees do not need to disclose referral
fees for real estate services between licensees
Broker practicing with others - answer✔Broker can practice with other firm with written
consent and working with firm that is non competing
Notifying the Department of Safety and Professional Services - answer✔Must notify them if
there are any changes to their practice or changes affecting their license.
3|Page
ALL RIGHTS RESERVED.
Wisconsin Real Estate License Exam Study
Guide.
Agency - answer✔the foundation upon which real estate brokerage is practiced. It describes a
legal and ethical relationship between a real estate firm and a party to a transaction.
Licensee - answer✔Any person licensed under state law to practice real estate.
Broker - answer✔A person that, for another person, and for commission, money or other thing
of value, negotiates or offers or attempts to negotiate, whether directly or indirectly.
A party is negotiating when: - answer✔1) Acting as an intermediary by facilitating between a
parties transaction.
2) Completing appropriate forms and writing documents
3) Presenting party proposals of other parties and explaining provisions.
Exchange - answer✔tax-planing tool for property owner to exchange one property for another
and defer payment of the tax on income earned on the transfer. The tax is differed not tax free
(starker).
Option to Purchase - answer✔An agreement to keep open, for a set period, an offer to sell or
lease real property. (layaway) Buyer pays an option fee for the right to purchase by agreed
terms. Unilateral sale...buyer doesn't have to buy buy seller has to sell.
Business Sale - answer✔Any type of business that is for sale including the goodwill of an
existing business and all the assets, with or without real estate.
Who doesn't need a license? - answer✔1) Persons appointed under the order of the court
2) Public officers
3) Manager of residential building who shows a residential unit to prospective tenants
4) Attorneys
1|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Firm - answer✔Any licensed individual broker acting as a sole proprietor or a licensed broker
business entity
Salesperson - answer✔Any person associated with a firm, other than a broker or individual who
is not required to hold a license. Must be associated with firm and if it loses its license must
stop practicing immediately.
Agent - answer✔Acts on behalf of a principal, such as a buyer or seller, and carries out the
directions of the principal.
Client - answer✔A party represented by a broker in an agency relationship in which the agent
represents their interests
Principal Firm - answer✔A firm that engages a subagent to provide brokerage services in a
transaction. Many times its the listing firm.
Subagent - answer✔Firm that is engaged by a principal firm to provide brokerage services in a
transaction, but is not associated with the principal firm.
Customer - answer✔Party to a transaction who receives brokerage services, such as drafting an
offer to purchase from a firm but who is not the firm's client. Doesn't enter into agency
agreement.
Agency Models - answer✔There are three different options that a client chooses that with
structure the relationship with the firm.
Single Agency - answer✔When a firm represents either the buyer or the seller as a client, but
never both in the same transaction.
Multiple Representation - answer✔Firm represents two or more clients in the same
transactions. When buyer and seller are both clients of the same firm and participation in the
same transaction. Both parties must consent. Client can withdraw at any time (in writing).
Multiple Representation without designated Agency - answer✔Firm provides services as agreed
to in the clients' agency agreements, but the firm must take a neutral position in the
transaction negotiations. Agent cannot place the interest of one client ahead of another.
Multiple Representation with Designated Agency - answer✔The firm represents multiple
parties in the transaction. Firm designates an agent to each client and the designated agent
does not have to remain neutral in the transaction.
Fiduciary - answer✔Person who is responsible for the property of another
2|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Cooperating Firm - answer✔Firms the cooperate with the listing firm in one transaction. Can
either be the seller's firm or the cooperating firm.
Listing FIrm - answer✔Firm that the seller hires with the listing contract. The seller is their client
whom they represent.
Listing Agent/Licensee - answer✔Agent associated with firm who secures and executes the
listing contract.
Selling Firm - answer✔Firm that finds the buyer and writes the offer. Subagent of the listing
firm.
Selling Agent/Licensee - answer✔Finds the buyer and writes offer.
Buyers Firm - answer✔Firm the signs a buyer agency agreement with a buyer. Buyer is a client.
Buyer's Agent/Licensee - answer✔Associated with the buyer's firm who drafts the offer for the
buyer-client.
Duties for Subagents - answer✔Firm engaged by a principal firm to provide brokerage services
in a transaction, but that is not associated with the principal firm. Owes all duties owed to all
persons as well as the duty of loyalty to the seller.
Customer Agency Disclosure Obligations - answer✔To customers, cannot negotiate on behalf
unless the licensee provides them with state-mandated disclosure statements. Can disclose
plain-language summary.
Client Agency Disclosure Obligations - answer✔To clients, must provide the state written
disclosure statements no later that the time the firm enters into an agency.
Providing Agency Disclosure - answer✔Must provide in all transactions to either clients or
customers depending on each situation.
Disclosure Obligations by Buyer's Firm - answer✔Firm that represents the buyer who is working
directly with the the seller, must notify the seller during first contact, a showing of the property,
or any other negotiations with the seller.
Disclosure of Compensation and Interests - answer✔Licensees do not need to disclose referral
fees for real estate services between licensees
Broker practicing with others - answer✔Broker can practice with other firm with written
consent and working with firm that is non competing
Notifying the Department of Safety and Professional Services - answer✔Must notify them if
there are any changes to their practice or changes affecting their license.
3|Page
