WRA EXAM SCRIPT 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔Omar lists his house with Brandon. Nancy goes to Brandon's open house and
decides she wants to make an offer on the house. Nancy does not have an agency
agreement with Brandon and she asks Brandon to write the offer. Which of the following
CORRECTLY identifies the relationship between Brandon and Nancy? - ✔✔Nancy is
Brandon's customer...Explanation: Brandon has a listing contract with Omar. Nancy
does not sign a buyer agency agreement with Brandon. Brandon provides brokerage
services to Nancy as a customer.
✔✔Question 14 - ✔✔
✔✔A licensee is purchasing a home. When completing the offer to purchase how
should they handle the agency information on line 1? - ✔✔All of the agency information
should be stricken because the licensee is acting as a principal not an agent.
Explanation: A licensee cannot act as a principal and an agent at the same time.
Therefore, the agency information found at line one of the Residential Offer to Purchase
should be stricken completely.
✔✔A condominium owner has to pay a condominium fee each month. The
condominium fee is calculated on an annual basis and then is paid monthly in equal
installments. The fee paid is 1% of the assessed value of the unit, which is $240,000.
The fee is due on the first of every month. How much would the owner of the
condominium have paid in condominium fees as of June 1? - ✔✔$1,200...Explanation:
$240,000 assessed value x .01 = $2,400. $2, months = $200 monthly fee. $200
x 6 = $1,200 paid in condominium fees through June 1.
✔✔A listing contract must include all of the following EXCEPT: - ✔✔the signature of the
seller...Explanation: Wis. Stat. § 240.10(1): Every contract to pay a commission to a real
estate agent or broker or to any other person for selling or buying real estate shall be
void unless such contract or note or memorandum thereof describes that real estate;
expresses the price for which the same may be sold or purchased, the commission to
be paid and the periods during which the agent or broker shall procure a buyer or seller;
is in writing; and is subscribed by the person agreeing to pay such commission, except
that a contract to pay a commission to a person for locating a type of property need not
describe the property.
✔✔A buyer hires a firm to locate a specific type of property for a buyer. The buyer's
licensee, upon finding the property, does not make the buyer aware of it and purchases
it for himself. What duty to the buyer did the licensee violate? - ✔✔Loyalty...Explanation:
The duty of loyalty requires an agent to put the interests of the client ahead of everyone
else. Purchasing a property without telling a client about it first violates the duty of
loyalty.
,✔✔Betty and Sam were in negotiations regarding property 789 Pear Street. Betty made
an offer to purchase including earnest money of $5,000. Sam rejected Betty's offer.
Who receives the disbursement of the $5,000 earnest money? - ✔✔Betty receives
$5,000...Explanation: Lines 376-378 of the Offer to Purchase - Disbursement states, "If
negotiations do not result in an accepted offer, the earnest money shall be promptly
disbursed (after clearance from payer's depository institution if earnest money is paid by
check) to the person(s) who paid the earnest money.
✔✔If a seller nets $140,000 on their home after paying the listing firm an 8%
commission, what was the sales price of the home? - ✔✔$152,173.91..Explanation:
$140,000 / .92 = $152,173.91 sales price
✔✔Zoning laws may NOT be used to regulate which of the following? - ✔✔The
placement of interior partitions...Explanation: The placement of interior partitions does
not affect public safety. The purpose of zoning is to protect public safety and welfare.
✔✔According to the WB-1 Residential Listing Contract, which of the following parties is
responsible to prepare the property to minimize the likelihood of injury? - ✔✔The
seller...Explanation: Lines 253-258 of the WB-1 Residential Listing Contract. Seller is
aware that there is a potential risk of injury, damage and/or theft involving persons
attending an "individual showing" or an "open house." Seller accepts responsibility for
preparing the Property to minimize the likelihood of injury, damage and/or loss of
personal property. Seller agrees to hold the Firm and its agents harmless for any losses
or liability resulting from personal injury, property damage, or theft occurring during
"individual showings" or "open houses" other than those caused by the negligence or
intentional wrongdoing of the Firm or its agents.
✔✔What event would NOT terminate a listing contract? - ✔✔A sales contract failed to
close...Explanation: A listing contract can be terminated by: death or incapacity of the
principals, destruction or condemnation of the property by eminent domain, expiration of
the term, mutual agreement, breach, operation of law, or completion. Bankruptcy and
foreclosure are examples of operation of law. The seller has the power to cancel the
listing contract at any time. A sales contract that fails to close would not have any effect
on the listing contract.
✔✔A borrower is obtaining an adjustable rate loan where the initial rate is fixed for three
years. After the initial period, the loan will adjust every six months. What is the
borrower's initial principal and interest payment is based upon? - ✔✔The interest rate at
which the ARM is originated...Explanation: When calculating a principal and interest
payment for an adjustable rate loan, one would use the interest rate at which the loan is
originated.
✔✔When trying to determine if an advertisement violates the Fair Housing Act, what
test(s) is applied? - ✔✔Ordinary Reader Test...Explanation: 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.
✔✔What type of loan program requires the borrower to pay 20% of the purchase price
or to obtain private mortgage insurance to cover the difference? - ✔✔Conventional
loan...Explanation: A conventional loan requires the borrower to invest 20% of the
purchase price towards a down payment in order to receive financing. Lenders will
originate loans to borrowers with a lower down payment if the borrower purchases PMI.
✔✔The Distribution of Information section of the WB-11 Residential Offer to Purchase
states that: - ✔✔the listing firm may deliver a copy of the offer to the title
company...Explanation: Lines 272-277 state, "Buyer and Seller authorize the agents of
Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title
insurance companies and any other settlement service providers for the transaction as
defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and
financing concession data to multiple listing service sold databases; and (iii) provide
active listing, pending sales, closed sale and financing concession information and data
and related information regarding seller contributions, incentives or assistance, and third
party gifts, to appraisers researching comparable sales, market conditions and listings,
upon inquiry.
✔✔The WB-11 Residential Offer to Purchase does NOT have any information at lines
38 and 39. This means that: - ✔✔binding acceptance can only occur by delivery to the
Party, not the agent...Explanation: The WB-11 states that delivery of documents and
written notices to a Party shall be effective only when accomplished by one of the
methods specified at lines 36-54. Even if the Parties select one or more methods of
delivery, if a recipient is not name for delivery, then delivery can only occur to the Party.
✔✔Elements reserved for the exclusive use of one or more, but not all members of a
condominium are called: - ✔✔limited common elements...Explanation: Limited common
elements are elements that are reserved for one or more unit owners and are not
available for use by all the unit owners as are common elements.
✔✔All of the following may legally terminate a listing contract EXCEPT: - ✔✔a rise in
interest rates...Explanation: A rise in interest rates may make a property more difficult to
market but it would not legally terminate the listing.
✔✔How can a seller terminate a listing contract? - ✔✔In writing, delivered according to
the terms of the listing contract...Explanation: Lines 263-271 of the WB-1 Residential
Listing Contract.
✔✔What is the legal effect of a counter-offer? - ✔✔Rejection of the offer and
presentation of a new offer...Explanation:A counter-offer is a rejection of an offer and
presentation of a new offer.
SOLUTIONS RATED A+
✔✔Omar lists his house with Brandon. Nancy goes to Brandon's open house and
decides she wants to make an offer on the house. Nancy does not have an agency
agreement with Brandon and she asks Brandon to write the offer. Which of the following
CORRECTLY identifies the relationship between Brandon and Nancy? - ✔✔Nancy is
Brandon's customer...Explanation: Brandon has a listing contract with Omar. Nancy
does not sign a buyer agency agreement with Brandon. Brandon provides brokerage
services to Nancy as a customer.
✔✔Question 14 - ✔✔
✔✔A licensee is purchasing a home. When completing the offer to purchase how
should they handle the agency information on line 1? - ✔✔All of the agency information
should be stricken because the licensee is acting as a principal not an agent.
Explanation: A licensee cannot act as a principal and an agent at the same time.
Therefore, the agency information found at line one of the Residential Offer to Purchase
should be stricken completely.
✔✔A condominium owner has to pay a condominium fee each month. The
condominium fee is calculated on an annual basis and then is paid monthly in equal
installments. The fee paid is 1% of the assessed value of the unit, which is $240,000.
The fee is due on the first of every month. How much would the owner of the
condominium have paid in condominium fees as of June 1? - ✔✔$1,200...Explanation:
$240,000 assessed value x .01 = $2,400. $2, months = $200 monthly fee. $200
x 6 = $1,200 paid in condominium fees through June 1.
✔✔A listing contract must include all of the following EXCEPT: - ✔✔the signature of the
seller...Explanation: Wis. Stat. § 240.10(1): Every contract to pay a commission to a real
estate agent or broker or to any other person for selling or buying real estate shall be
void unless such contract or note or memorandum thereof describes that real estate;
expresses the price for which the same may be sold or purchased, the commission to
be paid and the periods during which the agent or broker shall procure a buyer or seller;
is in writing; and is subscribed by the person agreeing to pay such commission, except
that a contract to pay a commission to a person for locating a type of property need not
describe the property.
✔✔A buyer hires a firm to locate a specific type of property for a buyer. The buyer's
licensee, upon finding the property, does not make the buyer aware of it and purchases
it for himself. What duty to the buyer did the licensee violate? - ✔✔Loyalty...Explanation:
The duty of loyalty requires an agent to put the interests of the client ahead of everyone
else. Purchasing a property without telling a client about it first violates the duty of
loyalty.
,✔✔Betty and Sam were in negotiations regarding property 789 Pear Street. Betty made
an offer to purchase including earnest money of $5,000. Sam rejected Betty's offer.
Who receives the disbursement of the $5,000 earnest money? - ✔✔Betty receives
$5,000...Explanation: Lines 376-378 of the Offer to Purchase - Disbursement states, "If
negotiations do not result in an accepted offer, the earnest money shall be promptly
disbursed (after clearance from payer's depository institution if earnest money is paid by
check) to the person(s) who paid the earnest money.
✔✔If a seller nets $140,000 on their home after paying the listing firm an 8%
commission, what was the sales price of the home? - ✔✔$152,173.91..Explanation:
$140,000 / .92 = $152,173.91 sales price
✔✔Zoning laws may NOT be used to regulate which of the following? - ✔✔The
placement of interior partitions...Explanation: The placement of interior partitions does
not affect public safety. The purpose of zoning is to protect public safety and welfare.
✔✔According to the WB-1 Residential Listing Contract, which of the following parties is
responsible to prepare the property to minimize the likelihood of injury? - ✔✔The
seller...Explanation: Lines 253-258 of the WB-1 Residential Listing Contract. Seller is
aware that there is a potential risk of injury, damage and/or theft involving persons
attending an "individual showing" or an "open house." Seller accepts responsibility for
preparing the Property to minimize the likelihood of injury, damage and/or loss of
personal property. Seller agrees to hold the Firm and its agents harmless for any losses
or liability resulting from personal injury, property damage, or theft occurring during
"individual showings" or "open houses" other than those caused by the negligence or
intentional wrongdoing of the Firm or its agents.
✔✔What event would NOT terminate a listing contract? - ✔✔A sales contract failed to
close...Explanation: A listing contract can be terminated by: death or incapacity of the
principals, destruction or condemnation of the property by eminent domain, expiration of
the term, mutual agreement, breach, operation of law, or completion. Bankruptcy and
foreclosure are examples of operation of law. The seller has the power to cancel the
listing contract at any time. A sales contract that fails to close would not have any effect
on the listing contract.
✔✔A borrower is obtaining an adjustable rate loan where the initial rate is fixed for three
years. After the initial period, the loan will adjust every six months. What is the
borrower's initial principal and interest payment is based upon? - ✔✔The interest rate at
which the ARM is originated...Explanation: When calculating a principal and interest
payment for an adjustable rate loan, one would use the interest rate at which the loan is
originated.
✔✔When trying to determine if an advertisement violates the Fair Housing Act, what
test(s) is applied? - ✔✔Ordinary Reader Test...Explanation: 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.
✔✔What type of loan program requires the borrower to pay 20% of the purchase price
or to obtain private mortgage insurance to cover the difference? - ✔✔Conventional
loan...Explanation: A conventional loan requires the borrower to invest 20% of the
purchase price towards a down payment in order to receive financing. Lenders will
originate loans to borrowers with a lower down payment if the borrower purchases PMI.
✔✔The Distribution of Information section of the WB-11 Residential Offer to Purchase
states that: - ✔✔the listing firm may deliver a copy of the offer to the title
company...Explanation: Lines 272-277 state, "Buyer and Seller authorize the agents of
Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title
insurance companies and any other settlement service providers for the transaction as
defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and
financing concession data to multiple listing service sold databases; and (iii) provide
active listing, pending sales, closed sale and financing concession information and data
and related information regarding seller contributions, incentives or assistance, and third
party gifts, to appraisers researching comparable sales, market conditions and listings,
upon inquiry.
✔✔The WB-11 Residential Offer to Purchase does NOT have any information at lines
38 and 39. This means that: - ✔✔binding acceptance can only occur by delivery to the
Party, not the agent...Explanation: The WB-11 states that delivery of documents and
written notices to a Party shall be effective only when accomplished by one of the
methods specified at lines 36-54. Even if the Parties select one or more methods of
delivery, if a recipient is not name for delivery, then delivery can only occur to the Party.
✔✔Elements reserved for the exclusive use of one or more, but not all members of a
condominium are called: - ✔✔limited common elements...Explanation: Limited common
elements are elements that are reserved for one or more unit owners and are not
available for use by all the unit owners as are common elements.
✔✔All of the following may legally terminate a listing contract EXCEPT: - ✔✔a rise in
interest rates...Explanation: A rise in interest rates may make a property more difficult to
market but it would not legally terminate the listing.
✔✔How can a seller terminate a listing contract? - ✔✔In writing, delivered according to
the terms of the listing contract...Explanation: Lines 263-271 of the WB-1 Residential
Listing Contract.
✔✔What is the legal effect of a counter-offer? - ✔✔Rejection of the offer and
presentation of a new offer...Explanation:A counter-offer is a rejection of an offer and
presentation of a new offer.
