Mastering Wisconsin Real Estate Agency
Law and Commission Practices — Complete
Exam Preparation and Legal Reference Guide
Fee-Splitting ✔✔A fee or commission paid to an unlicensed person for performing a brokerage activity.
Express Agency ✔✔An agency relationship created through spoken or written words.
Ready, Willing, and Able Buyer ✔✔A prospective buyer of property who is legally capable and financially
able to complete the transaction.
Implied Agency ✔✔An agency relationship created between parties by their actions.
Exclusive Agency Listing Contract ✔✔An agency agreement where the seller promises to pay a
commission to the listing firm if the terms of the contract are fulfilled, except if the seller finds the
buyer.
Mirror Image Offer ✔✔An offer to purchase that is written at the price and on substantially the same
terms set forth in the listing.
Rescission ✔✔A way of terminating the rights of the parties under a contract whereby the parties act as
if the contract never existed and forfeit their rights to sue.
In-House Sale ✔✔A sale in which a listing firm is the only firm in the transaction.
,Open Listing Contract ✔✔A listing that gives more than one firm the right to sell a property.
General Agency ✔✔An agency relationship where an agent is authorized to conduct all of a principal's
affairs within the context of an agency contract.
Damages ✔✔Compensation recoverable in a lawsuit by a party who sustained an injury.
Exclusive Right to Sell Listing Contract ✔✔An agency agreement where the seller promises to pay a
commission to the listing firm if the terms of the contract are fulfilled no matter who finds the buyer.
Special Agency ✔✔An agency relationship where an agent is authorized by a principal to perform one
particular act or transaction.
Buyer Agency Agreement ✔✔A written employment agreement that creates an agency relationship
between a firm and a buyer.
Listing Contract ✔✔A written employment agreement that creates an agency relationship between a
firm and a seller.
Procurement ✔✔The uninterrupted chain of events that lead to a sale.
Multiple Listing Service (MLS) ✔✔A service permitting firms to pool their listings and offer to
compensate other firms.
, One-Party Listing Contract ✔✔A listing contract where the listing firm earns a commission only if a
property is sold to a buyer named in the listing contract.
Net Listing Contract ✔✔An employment contract in which the firm receives, as commission, all excess
monies over and above the minimum sales price agreed on by the firm and the seller.
A listing firm lists five parcels of land using five listing contracts. The listing firm is acting as a special
agent. ✔✔True
Explanation:
A special agency relationship gives the agent the authority to represent the principal in a single
transaction.
A listing firm lists five parcels of land using one listing contract. The listing firm is acting as a general
agent. ✔✔True
Explanation:
A general agency relationship gives the agent the authority to represent the principal in a range of
matters.
There is typically not a single act that determines procuring cause. ✔✔True
Explanation:
Procurement is generally defined as the uninterrupted chain of events that led to a sale.
Law and Commission Practices — Complete
Exam Preparation and Legal Reference Guide
Fee-Splitting ✔✔A fee or commission paid to an unlicensed person for performing a brokerage activity.
Express Agency ✔✔An agency relationship created through spoken or written words.
Ready, Willing, and Able Buyer ✔✔A prospective buyer of property who is legally capable and financially
able to complete the transaction.
Implied Agency ✔✔An agency relationship created between parties by their actions.
Exclusive Agency Listing Contract ✔✔An agency agreement where the seller promises to pay a
commission to the listing firm if the terms of the contract are fulfilled, except if the seller finds the
buyer.
Mirror Image Offer ✔✔An offer to purchase that is written at the price and on substantially the same
terms set forth in the listing.
Rescission ✔✔A way of terminating the rights of the parties under a contract whereby the parties act as
if the contract never existed and forfeit their rights to sue.
In-House Sale ✔✔A sale in which a listing firm is the only firm in the transaction.
,Open Listing Contract ✔✔A listing that gives more than one firm the right to sell a property.
General Agency ✔✔An agency relationship where an agent is authorized to conduct all of a principal's
affairs within the context of an agency contract.
Damages ✔✔Compensation recoverable in a lawsuit by a party who sustained an injury.
Exclusive Right to Sell Listing Contract ✔✔An agency agreement where the seller promises to pay a
commission to the listing firm if the terms of the contract are fulfilled no matter who finds the buyer.
Special Agency ✔✔An agency relationship where an agent is authorized by a principal to perform one
particular act or transaction.
Buyer Agency Agreement ✔✔A written employment agreement that creates an agency relationship
between a firm and a buyer.
Listing Contract ✔✔A written employment agreement that creates an agency relationship between a
firm and a seller.
Procurement ✔✔The uninterrupted chain of events that lead to a sale.
Multiple Listing Service (MLS) ✔✔A service permitting firms to pool their listings and offer to
compensate other firms.
, One-Party Listing Contract ✔✔A listing contract where the listing firm earns a commission only if a
property is sold to a buyer named in the listing contract.
Net Listing Contract ✔✔An employment contract in which the firm receives, as commission, all excess
monies over and above the minimum sales price agreed on by the firm and the seller.
A listing firm lists five parcels of land using five listing contracts. The listing firm is acting as a special
agent. ✔✔True
Explanation:
A special agency relationship gives the agent the authority to represent the principal in a single
transaction.
A listing firm lists five parcels of land using one listing contract. The listing firm is acting as a general
agent. ✔✔True
Explanation:
A general agency relationship gives the agent the authority to represent the principal in a range of
matters.
There is typically not a single act that determines procuring cause. ✔✔True
Explanation:
Procurement is generally defined as the uninterrupted chain of events that led to a sale.
