WRA FINAL EXAM 2026/2027 QUESTIONS AND SOLUTIONS
RATED A+
✔✔Housing that meets the Fair Housing Act's definition of "housing for older persons"
may legally exclude: - ✔✔families with children....Explanation: If housing meets the Fair
Housing Act's definition of "housing for older persons," then it may legally exclude
families with children.
✔✔Which of the following is NOT viewed as an encumbrance that must be disclosed to
a buyer? - ✔✔Back taxes that the seller will be paying off at closing...Explanation: Any
encumbrances that are going to be removed at closing do not need to be disclosed.
This would commonly include taxes, mortgage loans, and other liens that will be paid off
at closing with the seller's proceeds.
✔✔A licensee is selling the licensee's own house. What must the licensee do? -
✔✔Inform all prospective purchasers that the licensee is the owner and is a licensed
real estate agent...Explanation: Wis. Admin. Code § REEB 24.05(5): A licensee acting
as a principal in a real estate or business opportunity transaction shall disclose his, her,
or its license status and intent to act in the transaction as a principal at the earliest of all
of the following: 1. The first contact with the other party or an agent representing the
other party where information regarding the other party or the transaction is being
exchanged. 2. A showing of the property. 3. Any other negotiation with the seller or the
listing firm.
✔✔A licensee is required to do all of the following EXCEPT: - ✔✔have the technical
knowledge, skills, or training possessed by competent third-party inspectors and
investigators of real estate and related areas...Explanation: Licensees are not required
to have the technical knowledge, skills, or training possessed by competent third-party
inspectors and investigators of real estate and related areas.
✔✔All of the following would be examples of public land use restrictions EXCEPT: -
✔✔deed conditions...Explanation: Deed conditions are land use controls used between
private citizens.
✔✔The buyer, in an effort to meet the terms of the Financing Contingency found in the
WB-11 Residential Offer to Purchase, delivers a notice to the seller indicating that the
buyer is ready to proceed to closing. Has the buyer waived the Financing Contingency?
- ✔✔No, because the buyer did not deliver a loan commitment....Explanation: The offer
to purchase states at line 219 that the financing contingency is removed when the buyer
delivers a loan commitment to the seller within the specified number of days from
acceptance. The delivery of the loan commitment removes the financing contingency.
,✔✔If property is held in joint tenancy, the heirs of a deceased joint tenant have: - ✔✔no
interest...Explanation: When property is held in joint tenancy and a joint tenant dies, the
surviving joint tenant or tenants become owners of the deceased joint tenant's interest.
✔✔A builder completed a new home and is going to live in it for 3 weeks prior to closing
of the sale to a buyer. Must the builder complete a real estate condition report? -
✔✔Yes, because the property meets the definition of one-to-four dwelling
units....Explanation: Sellers of vacant land or real estate containing one-to-four dwelling
units, whether listed with a firm or for sale by owner, are required to complete a real
estate condition report. There is an exemption for a property that has never been lived
in but if the builder is living in the home prior to closing, the builder is not exempt and
must complete a real estate condition report.
✔✔A listing agent has an accepted offer to purchase on a listing. Another offer is being
written and the buyer wants information about the existing offer. What information can
the listing agent share with the second buyer? - ✔✔The existing offer has a continued
marketing (bump) clause...Explanation: Wis. Admin. Code § REEB 24.12 A licensee
cannot share the terms of one buyer's offer to purchase with any other buyer. A licensee
can say another offer exists, that it has contingencies, or a continued marketing clause
but nothing more specific than that.
✔✔Binding acceptance occurs: - ✔✔when all parties have signed an identical copy of
the offer to purchase and it is delivered to the party who made the offer...Explanation:
Lines 27-28 of the WB-11 Residential Offer to Purchase, "The Offer is binding upon
both Parties only if a copy of the accepted Offer is delivered to Buyer on or before
(stated date/time)."
✔✔In the WB-1 Residential Listing Contract, a seller does NOT agree to: -
✔✔reimburse the listing firm for all advertising if the property does not sell...Explanation:
The listing contract does not require the seller to compensate the listing firm for any
advertising.
✔✔A salesperson may practice real estate for: - ✔✔the firm with which the licensee is
associated...Explanation: Wis. Stat. § 452.30(7) A salesperson may be associated with
only one firm at a given time. (b) A salesperson may not engage in independent real
estate practice and may engage in real estate practice only when associated with a firm.
✔✔A borrower is obtaining a loan for $130,000. The loan is 95% of the property's value.
The interest rate on the loan is 5% after the borrower pays two points. How much do the
two points cost the borrower? - ✔✔$2,600...Explanation: $130,000 principal loan
amount x .02 = $2,600 cost of points.
✔✔Four condominium units are valued at $200,000; $215,000; $220,000; and
$225,000; a total value of $860,000. The four condominiums have an annual property
maintenance fee $8,500. If the amount of the property maintenance fee owed by each
, unit is based upon the unit's value, what percentage of the total fee does the most
expensive unit owe? - ✔✔26%...Explanation: The most expensive unit is $225,000. The
total value of all the units is $860,000. $225,000 / $860,000 = .2616 or 26%.
✔✔The financing contingency would be removed if which of the following were to
occur? - ✔✔The seller receives a loan commitment subject to conditions...Explanation:
Lines 235-246 of the WB-11 Residential Offer to Purchase discuss the loan
commitment. The loan commitment may be subject to conditions as stated on lines 243-
246.
✔✔According to the terms of the Extension of Listing section of the WB-1 Residential
Listing Contract, how long is the listing contract extended for protected buyers? -
✔✔One year...Explanation: Line 220 states, "The Listing term is extended for a period
of one year as to any Protected Buyer."
✔✔A licensee is required to disclose: - ✔✔material inconsistent with or materially
contradictory to the seller's statements or the inspection report of a third
party....Explanation: Wis. Admin. Code § REEB 24.07(6): If a licensee's reasonably and
diligent inspection reveals facts materially inconsistent with or materially contradictory to
the seller's statements or the inspection or investigation report of a third party, the
inconsistency shall be disclosed in writing and in a timely manner to the parties.
✔✔What type of mortgage law is recognized in Wisconsin? - ✔✔Lien
theory...Explanation: Under lien theory, the buyer has legal title and the lender has the
right to place a lien on the buyer's property given as collateral for the loan.
✔✔The Real Estate Settlement Procedures Act (RESPA) regulates: - ✔✔new first
mortgages on residential 1-4 family transactions...Explanation: The purpose of RESPA
is to ensure that borrowers in mortgage loan transactions have knowledge of all
settlement costs. It applies to all federally related new first mortgages on residential 1-4
family transactions.
✔✔Which of the following creates a multiple representation relationship? - ✔✔A buyer's
licensee writes an offer for a buyer on a property listed by the buyer's licensee's
firm...Explanation: Multiple representation occurs when a firm has an agency contract
with both the buyer and the seller in the real estate transaction. The phrase "a buyer's
licensee" tells us that the buyer has an agency agreement with the firm. "A property
listed with the buyer's licensee's firm" tells us that the seller also has a listing contract
with that firm. The buyer's licensee's firm has an agreement with both the buyer and the
seller.
✔✔A property protected under the WB-36 Buyer Agency Agreement Extension of
Agreement Term is protected for how long after the expiration of the contract? - ✔✔One
year...Explanation: Lines 252-257 Extension of the Agreement Term of the WB-36
Buyer Agency Agreement provides, "The Agreement term is extended for a period of
RATED A+
✔✔Housing that meets the Fair Housing Act's definition of "housing for older persons"
may legally exclude: - ✔✔families with children....Explanation: If housing meets the Fair
Housing Act's definition of "housing for older persons," then it may legally exclude
families with children.
✔✔Which of the following is NOT viewed as an encumbrance that must be disclosed to
a buyer? - ✔✔Back taxes that the seller will be paying off at closing...Explanation: Any
encumbrances that are going to be removed at closing do not need to be disclosed.
This would commonly include taxes, mortgage loans, and other liens that will be paid off
at closing with the seller's proceeds.
✔✔A licensee is selling the licensee's own house. What must the licensee do? -
✔✔Inform all prospective purchasers that the licensee is the owner and is a licensed
real estate agent...Explanation: Wis. Admin. Code § REEB 24.05(5): A licensee acting
as a principal in a real estate or business opportunity transaction shall disclose his, her,
or its license status and intent to act in the transaction as a principal at the earliest of all
of the following: 1. The first contact with the other party or an agent representing the
other party where information regarding the other party or the transaction is being
exchanged. 2. A showing of the property. 3. Any other negotiation with the seller or the
listing firm.
✔✔A licensee is required to do all of the following EXCEPT: - ✔✔have the technical
knowledge, skills, or training possessed by competent third-party inspectors and
investigators of real estate and related areas...Explanation: Licensees are not required
to have the technical knowledge, skills, or training possessed by competent third-party
inspectors and investigators of real estate and related areas.
✔✔All of the following would be examples of public land use restrictions EXCEPT: -
✔✔deed conditions...Explanation: Deed conditions are land use controls used between
private citizens.
✔✔The buyer, in an effort to meet the terms of the Financing Contingency found in the
WB-11 Residential Offer to Purchase, delivers a notice to the seller indicating that the
buyer is ready to proceed to closing. Has the buyer waived the Financing Contingency?
- ✔✔No, because the buyer did not deliver a loan commitment....Explanation: The offer
to purchase states at line 219 that the financing contingency is removed when the buyer
delivers a loan commitment to the seller within the specified number of days from
acceptance. The delivery of the loan commitment removes the financing contingency.
,✔✔If property is held in joint tenancy, the heirs of a deceased joint tenant have: - ✔✔no
interest...Explanation: When property is held in joint tenancy and a joint tenant dies, the
surviving joint tenant or tenants become owners of the deceased joint tenant's interest.
✔✔A builder completed a new home and is going to live in it for 3 weeks prior to closing
of the sale to a buyer. Must the builder complete a real estate condition report? -
✔✔Yes, because the property meets the definition of one-to-four dwelling
units....Explanation: Sellers of vacant land or real estate containing one-to-four dwelling
units, whether listed with a firm or for sale by owner, are required to complete a real
estate condition report. There is an exemption for a property that has never been lived
in but if the builder is living in the home prior to closing, the builder is not exempt and
must complete a real estate condition report.
✔✔A listing agent has an accepted offer to purchase on a listing. Another offer is being
written and the buyer wants information about the existing offer. What information can
the listing agent share with the second buyer? - ✔✔The existing offer has a continued
marketing (bump) clause...Explanation: Wis. Admin. Code § REEB 24.12 A licensee
cannot share the terms of one buyer's offer to purchase with any other buyer. A licensee
can say another offer exists, that it has contingencies, or a continued marketing clause
but nothing more specific than that.
✔✔Binding acceptance occurs: - ✔✔when all parties have signed an identical copy of
the offer to purchase and it is delivered to the party who made the offer...Explanation:
Lines 27-28 of the WB-11 Residential Offer to Purchase, "The Offer is binding upon
both Parties only if a copy of the accepted Offer is delivered to Buyer on or before
(stated date/time)."
✔✔In the WB-1 Residential Listing Contract, a seller does NOT agree to: -
✔✔reimburse the listing firm for all advertising if the property does not sell...Explanation:
The listing contract does not require the seller to compensate the listing firm for any
advertising.
✔✔A salesperson may practice real estate for: - ✔✔the firm with which the licensee is
associated...Explanation: Wis. Stat. § 452.30(7) A salesperson may be associated with
only one firm at a given time. (b) A salesperson may not engage in independent real
estate practice and may engage in real estate practice only when associated with a firm.
✔✔A borrower is obtaining a loan for $130,000. The loan is 95% of the property's value.
The interest rate on the loan is 5% after the borrower pays two points. How much do the
two points cost the borrower? - ✔✔$2,600...Explanation: $130,000 principal loan
amount x .02 = $2,600 cost of points.
✔✔Four condominium units are valued at $200,000; $215,000; $220,000; and
$225,000; a total value of $860,000. The four condominiums have an annual property
maintenance fee $8,500. If the amount of the property maintenance fee owed by each
, unit is based upon the unit's value, what percentage of the total fee does the most
expensive unit owe? - ✔✔26%...Explanation: The most expensive unit is $225,000. The
total value of all the units is $860,000. $225,000 / $860,000 = .2616 or 26%.
✔✔The financing contingency would be removed if which of the following were to
occur? - ✔✔The seller receives a loan commitment subject to conditions...Explanation:
Lines 235-246 of the WB-11 Residential Offer to Purchase discuss the loan
commitment. The loan commitment may be subject to conditions as stated on lines 243-
246.
✔✔According to the terms of the Extension of Listing section of the WB-1 Residential
Listing Contract, how long is the listing contract extended for protected buyers? -
✔✔One year...Explanation: Line 220 states, "The Listing term is extended for a period
of one year as to any Protected Buyer."
✔✔A licensee is required to disclose: - ✔✔material inconsistent with or materially
contradictory to the seller's statements or the inspection report of a third
party....Explanation: Wis. Admin. Code § REEB 24.07(6): If a licensee's reasonably and
diligent inspection reveals facts materially inconsistent with or materially contradictory to
the seller's statements or the inspection or investigation report of a third party, the
inconsistency shall be disclosed in writing and in a timely manner to the parties.
✔✔What type of mortgage law is recognized in Wisconsin? - ✔✔Lien
theory...Explanation: Under lien theory, the buyer has legal title and the lender has the
right to place a lien on the buyer's property given as collateral for the loan.
✔✔The Real Estate Settlement Procedures Act (RESPA) regulates: - ✔✔new first
mortgages on residential 1-4 family transactions...Explanation: The purpose of RESPA
is to ensure that borrowers in mortgage loan transactions have knowledge of all
settlement costs. It applies to all federally related new first mortgages on residential 1-4
family transactions.
✔✔Which of the following creates a multiple representation relationship? - ✔✔A buyer's
licensee writes an offer for a buyer on a property listed by the buyer's licensee's
firm...Explanation: Multiple representation occurs when a firm has an agency contract
with both the buyer and the seller in the real estate transaction. The phrase "a buyer's
licensee" tells us that the buyer has an agency agreement with the firm. "A property
listed with the buyer's licensee's firm" tells us that the seller also has a listing contract
with that firm. The buyer's licensee's firm has an agreement with both the buyer and the
seller.
✔✔A property protected under the WB-36 Buyer Agency Agreement Extension of
Agreement Term is protected for how long after the expiration of the contract? - ✔✔One
year...Explanation: Lines 252-257 Extension of the Agreement Term of the WB-36
Buyer Agency Agreement provides, "The Agreement term is extended for a period of
