Wisconsin Real Estate License Exam 2025 –
Complete Practice Test with Verified
Answers and Explanations
Which of the following is a duty owed ONLY to a client?
A:Objective presentation of contract proposals
B:Loyally represents interests
C:Safeguard trust funds
D:Disclose material adverse facts ✔✔Loyally represents interests
The duties owed to a CLIENT include: Loyally represent the client's interest, provide information and
advice on matters that are material to the client's transaction, disclose all material information, fulfill
any obligation required by the agency agreement that is not in conflict with the law, and the duty to
negotiate on behalf of the client, unless waived.
A seller lists a house with Salesperson A. The buyer attends Salesperson A's open house and decides to
write an offer. The buyer does not have an agency agreement with Salesperson A and she asks
Salesperson A to write the offer. Which of the following CORRECTLY identifies the relationship between
the buyer and Salesperson A?
A:The buyer is the principal of Salesperson A
B:The buyer is Salesperson A's customer
C:The buyer is Salesperson A's client
D:Salesperson A is the buyer's agent ✔✔The buyer is Salesperson A's customer
,Salesperson A has a listing contract with the seller. The buyer does not sign a buyer agency agreement
with Salesperson A. Salesperson A provides brokerage services to the buyer as a customer.
When trying to determine if an advertisement violates the Fair Housing Act, what test(s) is applied?
A:Extraordinary Reader Test
B:Ordinary Reader Test
C:Extraordinary Human Being Test
D:Ordinary Day Test ✔✔Ordinary Reader Test
In determining if an advertisement violates fair housing, the ordinary reader test is applied. Essentially, if
the add appears to prefer or "dis-prefer" individuals because of their membership in a protected class, it
might be discriminatory.
Which of the following allows a property owner to use property in a way that was once allowed but is no
longer permitted under current zoning regulations?
A:Spot zoning
B:Nonconforming use
C:Conditional use
D:Variance ✔✔Nonconforming use
A nonconforming use is a use of property was once permitted but is no longer permitted under current
zoning regulations. The use is considered "grandfathered" in and the property owner can preserve
nonconforming use status by continuing to use the property in the nonconforming way. An agent can list
,and sell a nonconforming use and the new owner typically needs to use the property in the same way to
preserve the status as a nonconforming use.
A rural property is currently being used as cropland. However, the assessed value reflects the property's
worth as if it was being used for residential housing. The principle of value being applied is:
A:conformity
B:highest and best use
C:progression
D:increasing returns ✔✔highest and best use
The principle of value being used is highest and best use, which is the most profitable use to which a
property is adapted. The use must be legally permitted, financially feasible, physically possible, and
maximally productive.
Which of the following situations requires a written earnest money disbursement agreement prior to
disbursement of funds when the earnest money is held by the listing firm?
A:A party makes a counter-offer not acceptable to the other party
B:The seller has not accepted the offer and the offer has expired
C:A buyer is not able to obtain financing
D:The seller rejects the offer ✔✔A buyer is not able to obtain financing
The listing firm cannot do anything with the earnest money for 60 days after the scheduled closing date
unless the parties reach a written agreement for the disbursement of the earnest money. The listing
, firm may wish to write a memorandum or letter to the buyer and seller and their respective attorneys, if
any, pointing out lines 71-81 of the WB-11 Residential Offer to Purchase and explaining that this is how
the earnest money disbursement must be handled. It is then up to the parties to work out their
differences by negotiation or by going to small claims court.
A buyer orders a title insurance policy. The title insurance provider searches the public records for the
title examination. The title company notifies the buyer in writing of the condition of the title with the:
A:abstract of title
B:chain of title
C:title insurance commitment
D:deed ✔✔title insurance commitment
The title company notifies the buyer of the condition of title in writing with the title insurance
commitment. This document is also sometimes called a preliminary report or the title insurance binder
but in Wisconsin it is most commonly referred to as the title insurance commitment.
The listing contract states that the washer and dryer are included in the sale. The offer to purchase does
not mention the washer and dryer anywhere. At the time of closing the washer and dryer:
A:will be purchased separately
B:are included in the sale
C:must be on the property
D:must be removed ✔✔must be removed
Complete Practice Test with Verified
Answers and Explanations
Which of the following is a duty owed ONLY to a client?
A:Objective presentation of contract proposals
B:Loyally represents interests
C:Safeguard trust funds
D:Disclose material adverse facts ✔✔Loyally represents interests
The duties owed to a CLIENT include: Loyally represent the client's interest, provide information and
advice on matters that are material to the client's transaction, disclose all material information, fulfill
any obligation required by the agency agreement that is not in conflict with the law, and the duty to
negotiate on behalf of the client, unless waived.
A seller lists a house with Salesperson A. The buyer attends Salesperson A's open house and decides to
write an offer. The buyer does not have an agency agreement with Salesperson A and she asks
Salesperson A to write the offer. Which of the following CORRECTLY identifies the relationship between
the buyer and Salesperson A?
A:The buyer is the principal of Salesperson A
B:The buyer is Salesperson A's customer
C:The buyer is Salesperson A's client
D:Salesperson A is the buyer's agent ✔✔The buyer is Salesperson A's customer
,Salesperson A has a listing contract with the seller. The buyer does not sign a buyer agency agreement
with Salesperson A. Salesperson A provides brokerage services to the buyer as a customer.
When trying to determine if an advertisement violates the Fair Housing Act, what test(s) is applied?
A:Extraordinary Reader Test
B:Ordinary Reader Test
C:Extraordinary Human Being Test
D:Ordinary Day Test ✔✔Ordinary Reader Test
In determining if an advertisement violates fair housing, the ordinary reader test is applied. Essentially, if
the add appears to prefer or "dis-prefer" individuals because of their membership in a protected class, it
might be discriminatory.
Which of the following allows a property owner to use property in a way that was once allowed but is no
longer permitted under current zoning regulations?
A:Spot zoning
B:Nonconforming use
C:Conditional use
D:Variance ✔✔Nonconforming use
A nonconforming use is a use of property was once permitted but is no longer permitted under current
zoning regulations. The use is considered "grandfathered" in and the property owner can preserve
nonconforming use status by continuing to use the property in the nonconforming way. An agent can list
,and sell a nonconforming use and the new owner typically needs to use the property in the same way to
preserve the status as a nonconforming use.
A rural property is currently being used as cropland. However, the assessed value reflects the property's
worth as if it was being used for residential housing. The principle of value being applied is:
A:conformity
B:highest and best use
C:progression
D:increasing returns ✔✔highest and best use
The principle of value being used is highest and best use, which is the most profitable use to which a
property is adapted. The use must be legally permitted, financially feasible, physically possible, and
maximally productive.
Which of the following situations requires a written earnest money disbursement agreement prior to
disbursement of funds when the earnest money is held by the listing firm?
A:A party makes a counter-offer not acceptable to the other party
B:The seller has not accepted the offer and the offer has expired
C:A buyer is not able to obtain financing
D:The seller rejects the offer ✔✔A buyer is not able to obtain financing
The listing firm cannot do anything with the earnest money for 60 days after the scheduled closing date
unless the parties reach a written agreement for the disbursement of the earnest money. The listing
, firm may wish to write a memorandum or letter to the buyer and seller and their respective attorneys, if
any, pointing out lines 71-81 of the WB-11 Residential Offer to Purchase and explaining that this is how
the earnest money disbursement must be handled. It is then up to the parties to work out their
differences by negotiation or by going to small claims court.
A buyer orders a title insurance policy. The title insurance provider searches the public records for the
title examination. The title company notifies the buyer in writing of the condition of the title with the:
A:abstract of title
B:chain of title
C:title insurance commitment
D:deed ✔✔title insurance commitment
The title company notifies the buyer of the condition of title in writing with the title insurance
commitment. This document is also sometimes called a preliminary report or the title insurance binder
but in Wisconsin it is most commonly referred to as the title insurance commitment.
The listing contract states that the washer and dryer are included in the sale. The offer to purchase does
not mention the washer and dryer anywhere. At the time of closing the washer and dryer:
A:will be purchased separately
B:are included in the sale
C:must be on the property
D:must be removed ✔✔must be removed
