Wisconsin Real Estate License Exam
— Agency, Fiduciary Duties, and
Licensing Practice Q&A Guide
What is a fiduciary? ✔✔A person who is responsible for the property of another.
When must a licensee inform a client about multiple representation relationships? ✔✔Prior to or at the
time of entering into the agency agreement.
To whom does a licensee owe the duties of providing brokerage services fairly and honestly, providing
accurate market conditions, safeguarding trust funds, using reasonable skill and care, disclosure of all
material adverse facts, confidentiality, and objectively presenting offers? ✔✔All parties to the
transaction.
Which of the following is true of a licensee's agency disclosure duties? ✔✔The licensee must provide
agency disclosure and request acknowledgment from the recipient of the disclosure when listing a
single-family home.
Which of the following INCORRECTLY describes a multiple representation relationship? ✔✔The firm
owes loyalty to the party who first signed an agency agreement with the firm.
A seller executes a listing contract with a licensee for the listing firm. Which of the following statements
INCORRECTLY describes the parties' relationship? ✔✔If the listing licensee dies, the agency agreement
terminates.
, A buyer executes an option to purchase with a seller. Which of the following is true? ✔✔The seller must
sell if the buyer chooses to buy.
What must occur when a licensee terminates association with a firm? ✔✔The licensee must notify the
DSPS in writing of the termination within 10 days.
What or who does the seller hire with an agency agreement? ✔✔The listing firm
How long does a licensee have to close transactions if the licensee is no longer associated with a firm?
✔✔A licensee cannot practice real estate unless associated with a firm.
When can a licensee draft an offer for a family member? ✔✔: The licensee discloses the relationship
and the buyer and the seller consent.
A licensee wants to write an offer on a property listed with the licensee's firm. What duty to the client is
the licensee in danger of violating? ✔✔Loyalty.
What is presumptive evidence of a pattern of sales? ✔✔Five sales in one year or 10 sales in five years.
When can a client waive the duty of negotiation? ✔✔The waiver is in writing and a firm provides
mandatory disclosure of the effect of a waiver of the duty of negotiation.
What should a salesperson do if the DSPS suspends the licensee's firm's license? ✔✔Stop participating in
any real estate transactions.
— Agency, Fiduciary Duties, and
Licensing Practice Q&A Guide
What is a fiduciary? ✔✔A person who is responsible for the property of another.
When must a licensee inform a client about multiple representation relationships? ✔✔Prior to or at the
time of entering into the agency agreement.
To whom does a licensee owe the duties of providing brokerage services fairly and honestly, providing
accurate market conditions, safeguarding trust funds, using reasonable skill and care, disclosure of all
material adverse facts, confidentiality, and objectively presenting offers? ✔✔All parties to the
transaction.
Which of the following is true of a licensee's agency disclosure duties? ✔✔The licensee must provide
agency disclosure and request acknowledgment from the recipient of the disclosure when listing a
single-family home.
Which of the following INCORRECTLY describes a multiple representation relationship? ✔✔The firm
owes loyalty to the party who first signed an agency agreement with the firm.
A seller executes a listing contract with a licensee for the listing firm. Which of the following statements
INCORRECTLY describes the parties' relationship? ✔✔If the listing licensee dies, the agency agreement
terminates.
, A buyer executes an option to purchase with a seller. Which of the following is true? ✔✔The seller must
sell if the buyer chooses to buy.
What must occur when a licensee terminates association with a firm? ✔✔The licensee must notify the
DSPS in writing of the termination within 10 days.
What or who does the seller hire with an agency agreement? ✔✔The listing firm
How long does a licensee have to close transactions if the licensee is no longer associated with a firm?
✔✔A licensee cannot practice real estate unless associated with a firm.
When can a licensee draft an offer for a family member? ✔✔: The licensee discloses the relationship
and the buyer and the seller consent.
A licensee wants to write an offer on a property listed with the licensee's firm. What duty to the client is
the licensee in danger of violating? ✔✔Loyalty.
What is presumptive evidence of a pattern of sales? ✔✔Five sales in one year or 10 sales in five years.
When can a client waive the duty of negotiation? ✔✔The waiver is in writing and a firm provides
mandatory disclosure of the effect of a waiver of the duty of negotiation.
What should a salesperson do if the DSPS suspends the licensee's firm's license? ✔✔Stop participating in
any real estate transactions.
